Prices to sell more

Versión en español, pulse aquí.

One of the most common strategic mistakes is not to think about the customer in the criteria for pricing.

Everyone sells to make money, not to overlook the costs, you have to sell over them, of course, but we must not neglect the customer.
If customers perceive a price as expensive, consider that what they pay for a product exceeds the benefit (money not necessarily) will be very difficult to get interesting benefits from the sale of this product because it will be difficult to sell. The ideal price is getting a balance between the profitability that the company wants to gain from the sale and the value perceived by the customer when he purchases. And most of the time, that perception is not conscious, is a non-conscious perception of the consumer.

Humans are not rational, we are emotional, we take more decisions driven by emotions than by reason, even when bought.

Evolution has endowed us with an excellent survival neurological mechanism related to our purchasing behavior: When in danger humans do not think, act. We do not think "there is a gap and therefore I must take a bigger step," just jump the gap. In other words, our rational thinking is slower than our unconscious thinking, instinct is faster than reason.

What if we could succeed in the customer purchase our products using non-conscious thinking rather than rational thinking ?.... The answer is simple, the customer will buy on impulse. If we achieve this in the purchasing process would be involved, as shown in the picture, the nucleus accumbens which is responsible for activating the prefrontal medium cortex, involved in the integration of loss and gain and the purchase occurred. However, when the purchase is rational "stands" on the way the center related to the physical and emotional upset, the road is longer and slower process of buying may occur .. or not, the physical and emotional upset center might not activate the medial prefrontal cortex. In the first case (impulse) the purchase is automatic in the second case (rational), the purchase requires a decision process that can lead to the decision "not to buy."

What is the role of price in impulse buy?, Very simple, if the customer perceives that the product has a benefit for him less than its price, rational circuit automatically activate and use the "long road". It is therefore important, as I said, thinking about the customer and then in the company. The primitive brain is pure survival, we share with animals and makes them act instinctively, without thinking. Yes, so many times we do not intend to buy and come back with many full bags, our primitive brain has bought, because reason has not had time "to say" we did not want to buy.

The price may be a sales tool as long as does not exceed what the customer receives when purchasing. The primitive brain "selfish" only thinks of himself, just think win-win, is the brains of survival. To help us sell we have to talk in their language.

A good price is one that is profitable for the company and the customer perceives it is receiving more than it pays. If it is not profitable to set a price that the customer perceives as adequate, then .... maybe we're wrong product.

Why pay high prices for mobile phones and luxury cars? because the price of the phone or the car is ridiculous compared to the rising status of the individual who acquires. This is our primitive brain, only thinks of himself.

LIVE THE BRAND...MARKETING 3.0

Versión en español, pulse aquí.

Today all of us involved in the world of marketing do not doubt the ability of the brand as a vehicle for communication of corporate values. When we create or redesign brands our obsession is to transmit the values which are intended to link to it. After creating the brand, we take special care where brand appears and how to do so it is not inconsistent with his attributes. Remember how just a few days ago major firms withdrew their advertising during the issue of a popular tabloid television program in prime time in Spain (La Noria). Why?, because they don't want to associate their brands to the values of that program.

Corporate values are the same as the content to be a good book to the brand. We study the shapes, colors, words, expression, fonts .... If the brand does not transmit is incomplete, blank, it's a blank book, or worse i'ts a boring book. Transmit .... we insist on that, transmit, .... But ... Why transmit?. All the attributes that we associate with a brand exist outside of it, are already in the mind of the consumer. A brand does not teach to be happy, the consumer knows what he feels when he is happy, a brand has to make the customer feel happy, you have to live that feeling that you know, so a brand must not transmit, a brand must EVOKE. The customer has to relive the experience of the values associated with the brand and to get them out of dormancy in which they find themselves in his mind, but ... How to do it?.

Human are emotional, we move through emotions and impulses (we talk about this another day). Know emotions undoubtedly help us learn to evoke feelings and make our targets live the experience of brands.
We must continue to pay close attention to the shapes, colors, spaces, but without neglecting other potents vehicles of transmission of emotions like the smell and music.

The olfactory bulb, connected to the smell, is part of the limbic system (a network of interconnected structures) and is directly connected to the nervous system central. Thanks to this structure, the limbic system gives instinctive responses in a more non-conscious than conscious level, is also related to the interpretation of sensory impulses from the area of thought (neocortex). Physiologically, the smell is a powerful tool to evoke feelings and emotions even without the individual being aware of it. Who did not have a good memory with the smell of a perfume, wet grass or the smell of the sea?. The smell is "a great evocative" of emotions. Use smells for brands is definitely a hit, it evokes quickly and effectively, if the smell has been a good choice, of course. Burger King placed air fresheners in their establishments with a slight smell of grilled meat (yes, the smell does not come from the grills because it is quickly absorved by the smoke extractors in the kitchen). To evoke, without doubt, smell is a very powerful weapon, maybe that explains why the man almost from its origin has manufactured perfume.

Music is another great tool to evoke feelings, we have evidence of this in the movies, have you tried to watch a movie, leaving the dialogue but removing the soundtrack?, Content and the players remain the same, but the emotion is less. The director uses music to help us to feel joy, fear, tension, relaxation, not just see a film being spectators we live a story, we live an experience. This is precisely what we want with the brands, getting consumers to live an experience. Ignore the music in branding is to give back to a great opportunity to evoke feelings. Some patients with aphasia who can not speak coherently, but can sing, recognize melodies, sing and use them to communicate in place of the word, which can't use. The music is certainly another point to add to the various components of a brand, with the smell, music has great power to evoke feelings.

Neuromarketing uses neuroscience advances to apply to the world of marketing. Understand how we feel and what happens in our brain in certain circumstances helps us find new vehicles, such as music and the smell, to convey the brand (which is a product) to consumers more quickly and effectively. Neuromarketing is an evolution of marketing, not replacing it, complete it, improve it, evolve it to approach the consumer. Marketing 3.0 has arrived.

Welcome

Versión en español, pulse aquí.

Welcome to Neuromarketing Spain
the blog about neuroscience applied to marketing by José Ruiz, marketing specialist and neuromarketing researcher to SME in Spain.

In this blog I will publish my own research I would like to share with the community.
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Welcome to NEUROMARKETING SPAIN