BRAND BEATS TASTE -- SCIENTIFICALLY
Remember the Pepsi Challenge? In head-to-head taste tests with rival
Coke, the majority of subjects said they preferred Pepsi. Nonetheless,
Coke still outsells Pepsi year after year. Why?
In the summer of 2003, Read Montague, a neuroscientist at Baylor College of Medicine, reenacted the Pepsi Challenge with one small twist: his subjects were in an MRI machine. When people said they preferred the sample that turned out to be Pepsi, the satisfaction and rewards center of their brains (called the ventral putamen) was five times as active when drinking the Pepsi as was the same area in Coke-choosers when they were drinking Coke. In a nutshell, Montague confirmed the findings of the original Challenge -- biologically, the people who chose Pepsi were enjoying their mystery drink more than were the people who chose what turned out to be Coke.
Next, Montague told his subjects which sample was Coke. MRI scans from this go-round showed increased activity in the medial prefrontal cortex, a high-level cognitive center. This suggested that memory and other impressions of the drink (its brand) were entering into the decision-making process. This time, almost all subjects said they preferred the taste of Coke. If the first round of experiments showed that Pepsi tastes better in a blind taste-test, then why the reversal? Because Coke has established a better cognitive-level impression than has Pepsi. Brand, in this experiment, was scientifically demonstrated to trump taste.
Watch for more neuromarketing information in an upcoming Hoeck Associates special report.
Source: New York Times, 10/26/2003
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MARKET LIKE MOTHER NATURE
What could Mother Nature possibly teach you about marketing? Plenty,
says marketing guru Sean D'Souza. The following rules govern the natural
world. You might consider using them to govern your marketing strategy,
as well.
1. Sow, then reap
Red Bull's marketing strategy was to give cases of their products to
students if they threw a party. Give your customers what they want
first, and you'll be set to receive big time.
2. Focus
Wolves stalk their pray. Plants seek the sun. Nature knows specifically
what it needs and has a plan to go after it. Do you have a specific
demographic you're marketing to, or is your target audience "everyone"?
3. Specialize
Nature doesn't brand-extend. Are you attaching your brand to everything?
Remember, Dove built an empire on one cornerstone product: soap.
4. Keep moving
Hearts beat. Planets turn. Things in nature are by definition organic
-- ever-moving, ever-evolving. Your marketing plan should do the same.
Source: http://www.psychotactics.com/artnature.htm
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WINNING OVER GEN-Y
If you thought GenX was skeptical, get a load of the folks born between
1979 and 1994. GenY grew up -- and is growing up -- in the information
age. They're market savvy, which means they know how badly you want
their business. And they're suspicious about it.
The key to winning over GenY is emotional appeal. Instead of telling them what your product or service will do, you'll need to show them how it fits into their lives. Focus not on features and tangible attributes, but on connection. GenY-ers like brands they feel understand the way they live.
As an example, banks traditionally market to college students via giveaways and sponsorships. Yet the approach is generic; there's no compelling reason to choose one bank over another. A better approach would be to foster a unique identity -- a bank for young people, that understands, trusts, and is trusted by young people. Don't list the benefits of free checking, but instead show how the bank can support their lifestyles: purchasing tickets with a credit card, getting cash from an ATM for a night out, using online banking to pay bills while traveling.
There's a big upside to this emotion-driven brand strategy -- GenY-ers are very loyal when they find a brand they identify with. And they'll tell their friends.
