How To Use Neuromarketing To Help Your Business

Neuromarketing is the application of neuroscience to marketing. The term neuromarketing was coined by Professor Ale Smidts in the early 2000s as part of his research into marketing psychology in the brain. As this field expanded, scientists were then able to use fMRIs and EEGs to analyze brain behavior when exposed to various types of market research experiments.

By analyzing the brain imaging to watch neural circuits light up, market researchers were able to understand what products people are inclined to buy. Neuromarketing psychological concepts might have been new to the business world 20 years ago, but today even small business owners on a budget can use this market research to their advantage.

Here are some neuromarketing concepts that can help any entrepreneur.

The framing principle refers to the concept of how the wording, presentation, and framing of information influences how consumers interpret information. Understanding this effect will help an entrepreneur communicate what they need to say when advertising. Everything should be written in positive framing.

For statistics, use wording like “treatments are 99% successful,” or “get 50% off”.

The IKEA effect refers to the concept that labor adds value to the product you’re selling. This is a psychological concept called “effort justification.” You can see this concept in the longtime successes of products like instant cake mixes or boxed macaroni and cheese.

While people could buy the same food and desert already made, some prefer to do it themselves with the mixes. Customization is an asset you can add to any product. Consumers will pay on a free site for customization alone.

The paradox of choice is the concept that too many choices for the consumer actually leads to more psychological stress and makes it harder to choose anything at all. While in theory we like to have choices, endless choices make it less likely for anything to be bought.

This can be seen with people browsing through thousands of clothes in the mall but leaving with nothing, or looking through endless options on 10 streaming sites, and ultimately picking nothing at all to watch. Sales will increase if you give your customer the right number of options to pick from.

The anchoring principle is the concept that individuals will rely heavily on the first piece on information they receive to make all future choices. In marketing, this means that the first piece of information on a page will influence the script of the rest of it.

If people see the price of a product at $100 initially, they will continue to evaluate that product at $100 no matter what else they hear. If you write that this product, a $100 value, is now on sale at $75, the customer won’t pay attention to the fact that they are spending $75, so much as the fact they are receiving the $100 product at a lower price.

The endowment effect is the concept that people will value things once they own or perceive ownership over products. This comes from a psychological effect called loss aversion, where the pain of losing something is worse than the pleasure of winning or gaining something.

Once people have something, they’ll be so attached to it they’ll be upset if they lose it, even if they don’t need it or weren’t planning on buying it. In marketing, this is why it’s beneficial for you to offer free trials, especially for subscription-based products. After being used to a month of a service, the client will be more likely to want to pay and keep it rather than lose something they now feel entitled to.

In summary, integrating neuromarketing concepts is essential for anyone entering the marketing and market research phases of business. Although creativity and informed assumptions continue to play critical roles in crafting effective marketing campaigns, the use of scientifically validated neuromarketing strategies significantly diminishes the level of guesswork. By relying on data-driven insights, businesses can make more informed decisions, tailor their strategies more precisely, and increase the likelihood of connecting meaningfully with their target audience.