How to Use Neuromarketing & Business Psychology to Win | Awn Nuwwar | TEDxDabouq

Key Concepts:

• Subconscious Mind: The part of the mind that influences decisions without conscious awareness.
• Emotional Connection vs. Transactional Connection: Building relationships based on feelings rather than just product features.
• Brand Building: Creating a feeling or association with a brand, not just a logo or colors.
• FOMO (Fear of Missing Out): A psychological phenomenon that drives people to participate or purchase to avoid feeling left out.
• Content Strategy: The planning and execution of content to achieve business goals.
• Chess Analogy for Marketing: Using chess pieces to represent different marketing functions and their roles.
• Neuromarketing: The application of neuroscience to marketing, traditionally involving advanced technology.
• Color Psychology: The study of how colors affect human behavior and perception.
• Negotiation Tactics: Strategies used in discussions to reach an agreement.
• Copywriting: The art and science of writing persuasive text for marketing and advertising.

The Power of Psychology in Business and Marketing

This discussion delves into the profound impact of psychology and neuroscience on business, marketing, and customer experience, arguing that understanding the subconscious mind is crucial for success.

The Otis Elevator Case Study: Solving a Problem with Psychology

• The Problem: Otis, a major elevator company, faced widespread complaints in New York City about slow elevators in large skyscrapers. Customers were frustrated by long wait times.
• The Initial Approach: Otis invested millions in research and development, spending hours in meetings to find technical solutions to speed up the elevators by altering their infrastructure.
• The Psychological Solution: After extensive deliberation, a suggestion was made to install mirrors in the elevators. This seemingly simple, non-technical solution was adopted due to customer frustration.
• The Outcome: Complaints about slow elevators significantly decreased. This highlights how addressing the perception of the problem, rather than just the technical issue, can be highly effective.
• Key Takeaway: This case demonstrates that psychology is a vital component of customer experience, business strategy, marketing, branding, advertising, and research.

Understanding the Subconscious Mind

• The 95% Rule: It is stated that 95% of daily decisions are made by the subconscious mind (subconscious mind). This explains phenomena like driving home without consciously remembering the journey.
• Unlocking Business Secrets: By understanding this 95%, businesses can uncover powerful methodologies used by leading companies.

Emotional Connection in Branding: The Nike Example

• Brand Focus: Companies like Nike rarely focus on the technical specifications of their shoes (e.g., sole material, speed).
• Emotional Resonance: Instead, they emphasize the athlete wearing the shoes, aiming to create an emotional connection with consumers.
• Beyond Transactional: The goal is to move beyond a transactional relationship (buying features) to an emotional one (associating with the brand's values and aspirations).

Defining Branding: More Than Just Visuals

• Common Misconceptions: Branding is often mistakenly defined as just a logo, colors, or color psychology.
• The True Essence: Branding is fundamentally the feeling a person experiences when encountering a brand and the associations that arise in their mind.
• Sustained Investment: Even market-leading companies continue to invest heavily in advertising to reinforce these emotional connections and feelings associated with their brand.

The Essex Job Interview: A Lesson in Customer Interaction

• The Scenario: The speaker recounts a job interview at a shoe store called Essex in Australia.
• The Manager's Question: The manager asked, "If a mother and her son entered the store on a Tuesday at 3:30 PM, what would be the first thing you would do?"
• The Speaker's Answer: The speaker, after initial hesitation, answered, "I would ask the child if he has school."
• The Manager's Rationale: The manager explained that everyone else had asked how they could help the mother, which is a standard, transactional approach. Asking the child creates a more personal connection and initiates a conversation.
• The Psychological Impact: This approach ensures a positive interaction regardless of the child's response. If the child is receptive, the mother will feel more comfortable. If the child is shy, the mother will naturally step in to facilitate the conversation.
• Key Takeaway: This illustrates how a simple, psychologically-driven question can significantly impact the customer journey and lead to a sale. It highlights the application of psychology and neuroscience in marketing and customer experience.

The Nestle Nescafe Case Study in Japan: A Long-Term Strategy

• The Challenge: Nestle attempted to enter the Japanese market with Nescafe in the 1970s/80s. The primary challenge was the Japanese cultural preference for tea over coffee.
• Initial Failure: Their initial attempts to sell Nescafe in Japan were a complete failure.
• The Strategic Shift: Nestle decided to take a long-term approach, realizing they couldn't change the established tastes of older generations.
• Targeting Children: They shifted their strategy to target children through the Kit Kat brand.
• Kit Kat's Role: Kit Kat in Japan offers over 100 flavors (e.g., orange, strawberry, vanilla). This strategy aimed to cultivate a taste for coffee from a young age, ensuring future Nescafe consumers.
• Brand Association: Kit Kat's branding in Japan is subtly linked to the Japanese flag, and the name "Kit Kat" in Japanese translates to "surely win" or "good luck."
• The Long-Term Success: After 30 years, Japan became the largest importer of coffee globally.
• Key Takeaways:
  • Psychology and neuroscience play a significant role in marketing.
  • Sometimes, the longer, strategic path is necessary for success.

Coffee Black: Building an Emotional Connection

• Brand Success: Coffee Black is presented as a successful brand that has built a strong emotional connection with its customers.
• Content Strategy: They do not focus on the origin or production methods of their coffee. Instead, their strategy is to connect with customers on an emotional level.
• The Mirror Initiative: The famous mirror in their store created a sense of FOMO (Fear of Missing Out), fostering a strong community base. The speaker himself felt compelled to take a photo with the mirror while in Australia.
• Unique Terminology: Coffee Black uses distinctive phrases like "How's your coffee?" (كيف قهوتك مضبوط؟) and "Who tells you how your coffee is at home 100%?" (مين بيحكي لك كيف قهوتك بالبيت 100%؟). These phrases create a unique connection, unlike other coffee houses that ask what you want to order.
• Focus on the Human Element: The speaker emphasizes that Arab companies should view customers as human beings, not just sources of money, to achieve sustainability and strong branding.

The Chess Analogy for Marketing Functions

The speaker uses a chess analogy to explain the roles of different marketing elements:

• Content is Not King: The speaker challenges the notion that "Content is King."
• Branding is the King: Branding is considered the most powerful piece, as a fallen brand cannot be revived by any content.
• Marketing is the Queen: Marketing is the Queen, being dynamic, adaptable, and able to move across the entire board, facing various challenges and channels.
• Content is the Pawn: Content is the Pawn, which is flexible and agile, constantly moving and finding the perfect spot.
• Advertising is the Rook: Advertising is the Rook, being straightforward, direct, clear, and actionable with a defined path.
• PR is the Knight: PR is the Knight, being unpredictable and capable of positioning the brand strategically, but also potentially disruptive.
• Sales is the Bishop: Sales is the Bishop, having direct, one-on-one interactions. A skilled salesperson who can advance their "pawn" (achieve their goals) can transform into any other piece, signifying mastery.
• Design Thinking: This philosophy is about how to play and win the game.

Redefining Neuromarketing for Accessibility

• Traditional Neuromarketing: The common understanding of neuromarketing involves using devices to track brain activity in response to marketing stimuli, often requiring significant investment (e.g., $250,000).
• Democratizing Neuromarketing: The speaker aims to change this perception, making the principles accessible to Arab companies without requiring massive budgets.
• Accessible Tools: Understanding basic principles of color psychology, negotiation tactics, and effective copywriting can provide access to the 95% of subconscious decision-making.
• The Core Difference: Marketing targets the conscious mind, while neuromarketing targets both the conscious and subconscious.
• The Goal: By effectively targeting both, businesses can achieve greater impact, reach a wider audience, build deeper connections, and foster economic growth for Arab companies, reducing reliance on foreign entities.