Wednesday, December 21

Envolving marketing

Versión en español pulse aquí

Those who call us marketers have been working for years to find out what the consumer wants. An important part of our work has consisted and consists in finding out what does our target. To adapt, then, our product and get closer to the ideal of our consumers. We used even invented techniques of all kinds, the most colorful panels, surveys, evaluations, sample markets, ....

Finally, after many years, we managed to find out what's wrong with all methods, indeed, all have the same flaw: much of the evidence of consumers say the opposite of what they think. Consumers in the panels act differently in the real world. The solution to correct the error is to know what goes on inside the mind of the consumer. What reactions produce our products in their minds that will lead to feelings that cause the purchase and determine the degree of satisfaction with it and, therefore, the possibility of repeating the desired loyalty.

We need to know what happens in the minds of our consumers when they buy our products to meet your real needs. This is the purpose of neuromarketing, neuroeconomics part of that necessarily needs to go hand in hand with advances in neuroscience.

It is already world famous Montague's experiment with Coca-Cola and Pepsi a few years ago. They will put consumers samples of both drinks to participants without showing the mark and asked to indicate which one they liked best. Most said they liked Pepsi. While consuming their minds were activated in a prefrontal cortex area associated with sensory pleasure. They got to drink a second sample, this time indicating the brand of soft drinks each the same people and asked them again to identify what they liked best. Surprisingly changed their minds and said they liked the Coca-Cola. While consuming areas of the hippocampus were activated associated with the emotions and affections. What happened?, Coca-Cola in them evoked associations with past experiences and emotions that led to say that Coca-Cola preferred when they really liked the Pepsi.

Understanding the human mind and its operation will help us understand why having the best product or service the best leaders are not in sales. It is easy, as in many companies, blame this to the sales force, when really, in many cases, the commercial department is solely responsible for this to occur, the real culprit is an ill-conceived strategy for not having had into account the feelings of our product brand should evoke in consumers.

Wednesday, December 7

Sell in the war (price)

Versión en español, pulse aquí

Christmas holidays are approaching and with them the typical shopping. Hopefully this year economically very hard superstores as small establishments put entire hog this month to improve one years complicated. Many businesses moving some of the famous January sales for December and will make many discounts.

The discount is a powerful selling tool. Studies show that the zone of pleasure and reward in the brain are activated when we hear the words free and discount. That is why the discount is a great attention getter and to make the purchase is necessary to capture the attention of potential customers. The discount gets you see a profit in the purchase, if it is considered fair (remember the previous article) there is a high probability of closing the sale.

The problem comes when the market is a genuine war of prices and discounts. In the time that the consumer perceives that other stores offer discounts on products start buying them rationally. They will want to compare the price and the discount y. .. the discount will have lost its power.

That's why in times in which, presumably, all businesses that sell the same products will discount, we will use other tools to sell. In this way the client can come interested in the comparison and close the sale with us. It is impossible to be always buying the best price. It is also impossible to be always the one who sells the best price. If you are sure you have the best price offer only discount. But if someone might offer better price or greater discount, then focus the effort on the discount will not sell as planned and that we do so with a margin of less than desired (insufficient units sold).

To avoid the situation described in the previous paragraph and also offer something different, we can combine the discount with active selling and also offer another second product. I am not referring to the 2x1, I say to offer a second complementary product at a good price or symbolic as 1 €. For example, many times when we buy a detergent softener give us (or we can buy for 1 €).

The primitive brain (responsible for impulse buying) just thinks of himself and is very receptive to everything related to your advantage. In this case the customer will receive a double advantage, on one hand the product off the first and the second product on the other free (or cheap). This combined with an active sales to bring customers the dual advantage (discount + second product) will be an option in the war of discounts and will also provide a competitive advantage. The key will select either the complementary product. It must be an incentive not to lose their effect and then be a burden.