Sunday, January 31, 2010

The AFLAC Duck and the Power of Neuro-marketing in Branding by Thomas Denegre

Ducks are laughing all the way to the banks to cash their checks. Meanwhile serious minded business leaders are scratching their heads.

Two companies, both positioned to market commodity products in highly competitive industries, have realized significant revenue gains by deploying Neuro-marketing in their branding to achieve high name awareness, fan loyalty, premium pricing, and sustainable growth. In this short article, you will understand the basics of Neuro-marketing and how you can immediately make improvements to your branding.

Companies such as AFLAC (American Family and Life Assurance Company) and DuckBrand are using a duck as their mascot as part of their branding strategy. In a recent reported article in the Harvard Business Review (HBR), AFLAC saw their sales doubled in three years after the introduction of their duck in 2003. Almost immediately their name recognition increased to 67%. Brand awareness spending increased from $1 Million in 2003 to $65 Million today. As a result, AFLAC is the personal insurance category leader in Japan with 25% market share representing 70% of their global $16.6 billion revenue. Not bad work for a duck!
We all heard of duct tape. During World War II, The Johnson and Johnson Permacel Division introduced a military green tape to keep ammo boxes waterproof. It was later nicknamed, "Duck Tape," because it repelled water. After the war the product morphed into a silver tape used in HVAC (Heating Ventilation and Air Conditioning). Duct tape became a commodity product with no customer loyalty or premium pricing.
Fifteen years ago a duct tape manufacturer named DuckBrand engaged a Disney executive who understood the magic in branding to convert a commodity into a branded product. Some of the key lessons learned were;

* Have your product engage as many human senses as possible.

* Develop a character that people will like and accept.

* Develop a story for the product and an exclusive community to join.

* Make the experience a delight and exceed the customer's expectations with attention to detail.

Duct tape became Duck Tape and a cute duck mascot was adorned on all the packaging and marketing. Duck Tape was packaged to give the perception and tactile feel of higher quality while offering a practical use of stacking and storing. Duck Tape became a new story that quickly gained a higher perceived value and increased market share. No longer a commodity, Duck Tape drew a strong base of fans and most importantly, greater profits. As the fan base grew, DuckBrand challenged their fans to use Duck Tape in new and innovative ways. A club was born. Brand loyalty grew and fans adored the cute duck mascot.

What few people realize is the impact of neuro marketing. Intuitively the Disney executive knew from experience that using the five human senses with a product will engage the customer on multiple levels of emotions, experiences, mental associations with past experiences and values, and the use of the child's imagination that still lives within us all.

Traditional versus Neuro-marketing Research

In Martin Lindstrom's book "Buyology", the author explained that each year $12 Billion is spent on primary marketing research whilet 80% of new products fail. In traditional consumer research surveys, people responded to questions in writing. Since consumers had little awareness and understanding of why they made the purchase, companies did not have the proper information to understand true buying behavior.

By studying people's brain activity using MRI and other scanning devices, Mr. Lindstrom discovered that 85% of our brain runs on autopilot whereby most people are not aware of their emotions nor how they make decisions accordingly.

By using brain scanning devices it was discovered that different areas of the brain that were stimulated evoke different responses and behavior. Consequentially, if you want an accurate consumer response, then don't believe what the person states, rather understand how their brain responds.

A brief view of Neuro-marketing

So let's take a quick look at the brain and how it affects our behavior. In simplistic terms there are three levels of the brain. First, there's the largest section called the frontal cortex which handles matters such as reasoning, philosophy, math, and other high levels of thought. I'll call him Mr. Spock for he is all reason and no passion.

The second level of the brain is the limbic system which is the seat of our emotions which I'll call Doctor McCoy (remember Star Trek), where we find love, joy, peace, confidence, hope, anger, bitterness, and hatred. When our reasons and thoughts of the frontal cortex are merged with the emotions of the limbic brain then we solidify beliefs, loyalty, faith, and devotion, etc.

Lastly, near the base on the brain is our reptilian brain that runs most of our body functions on autopilot. It's also the center of our self-preservation where the raw and powerful emotions of fear and sex reside. When we identify danger, our reptilian brain will take over and will either do one of three things; fight, flee, or freeze. Or, when it's stimulated sexually, it will lust for its mate. The reptilian brain forms the basis that drives self-preservation. Many times self-preservation is driven by fear; sometimes it's the fear of not having enough; called greed. Take a look at fallen companies such as Enron, whereby the best and brightest of the executive team was obsessively (fear and greed) driven by meeting quarterly profits. It's amazing to see how the primitive reptilian brain took over the power frontal cortex to take down a powerful company.

Here's an important rule of thumb. The greater the emotional stimuli to the brain (fear or lust), then the more likely that the lower part of the brain will take over. For example, when a lion is chasing you, you don't have time to smell the roses. Fear takes over.

Understanding fear can work for you. For example, it's difficult to sell to a prospect when they feel everything is okay and it's more fearful to change the status quo. However, when properly motivated and reasoned, a prospect can realize that there's greater fear in remaining status quo. To paraphrase an old movie quote from The Godfather, "you need to make them an offer they can't refuse."

The Power of Association in Neuro-marketing

The power of Neuro-marketing starts with the engagement of our seven senses; (1) Taste, (2) Smell, (3) Hearing (4) Touch, (5) Sight, (6) Humor, and (7) Intuition. To make it all work one must understand the power of association that directly impacts our emotional brain and how past experiences are recalled when we encounter a brand experience. Walk into a Whole Foods Store and you're bombarded with a cornucopia of beautiful food, fresh baked bread, brewed coffee, and desserts turned into art. You're flooded with emotions of mom, home, security, abundance, and happiness. The experience is frequently joyful and you're willing to pay premium prices for their products.

The power of association will engage our senses to recall positive experiences that we will tie to the brand. Called somatic markers, they represent a total compilation of emotions, negative associations, and positive associations. When a woman is given a light blue box with a white ribbon, the Tiffany brand and blue color evoke strong feminine emotions. When we think of a well branded produc t, such as, Coke, Coach, Chanel, Harley Davidson and Tiffany, many of us experience an emotional and somewhat sensual positive response. A good brand tied to Neuro-marketing should offer:

* A great experience that exceeds customer's expectations

* A clarification of the value of the product

* A decision by the prospect to consider purchasing it

How we associate products with past experiences can determine our purchasing considerations. Mr Lindstrom in Buyology highlighted a few examples such as; * Light blue for a woman can be associated with engagement, marriage, babies, and fertility. Pink is associated with luxury, sensuality, and being feminine.

* Color will increase brand recognition by 80% and represents up to 50% in the decision making process to choose a brand product.

* People will buy more out of love (53%) versus sex (26%).

* Be authentic, transparent, and real. We buy from people we can relate to.

The sense of smell is one of the strongest and most motivating senses. One whiff will immediately stimulate both the limbic and reptilian brains. How many times have we walked into a store smelling fresh baked bread making us hungry? Like Pavlov's dog we respond immediately without thinking. Mr. Lindstrom explained that in Samsung stores, they discretely aerate the store with honey dew melon that invokes the sense of relaxation while lowering your purchasing tolerance. Clever!

Ever notice how people like the sense of belonging to an exclusive group? It offers a sense of security and comfort which can create a sense of mission. We can think of Harley Davidson, Apple, and fans of music rock groups. Other examples include an exclusive offer to join the millionaire's poker club at Harrah's in Las Vegas; at DuckBrand, loyal fans can join the "Duck Tape Club" and share their stories of DuckTape innovations and fun adventures.

What lessons can we take to make our branding and marketing more effective?

By knowing your target audience, its needs and wants, develop your brand to engage as much of the human senses as possible. Brands can develop a higher appeal and bond us emotionally when we can identify with them. Personalizing your brands with a mascot can add depth, character, and appeal to our childhood imaginations. We prefer to buy from someone we like and we all like the duck at AFLAC, Snoopy at MetLife, Mickey Mouse, and all the others. By nature people are tribal and want to belong to the community. Like the "Duck Tape Club" think of ways for your fans to become involved with a brand that is surprising, exciting, and engaging.

Here are a few other take-aways to build your brand.

Using Neuro-marketing in your Branding * Clearly define your key target audiences and learn about them and their lives.

* Engage as many of the human senses in your brand to stimulate both the areas of thought and emotions together.

* Make your brand personal and engaging. Give it a story and a personality that your target audience can identify.

* For a significant product launch consider using a Neuro-marketing agency for accurate responses.

* Consider the way your brand will invoke past associations to common human experiences.

* Create unique experiences, somewhat based on your products and services, that let people experience your brand as often as possible, throughout their lives. These experiences should also be accompanied with branded visuals, descriptive vocabulary and cool memorabilia.

* Your messaging and branding go hand in hand. Let your words create images and stories in people's minds.

* Use the Power of WOW. Surprise is a story-inspiring emotion. It demands to be shared. How could you add surprise to your marketing mix?

Branding and Communications * Keep your messaging simple and deliver a vision for an extraordinary experience that would make people believe in the magic.

* Clearly determine your brand experience. Is it bringing magic into people's lives? It must have emotion and feeling!

* Remember the essence of a brand, especially a corporate brand, is the communication of the company's positive and unique attributes expressed through the company's" personality" to significant stakeholders.

* Messaging - using words and graphics and any other sensory stimuli available - is the verb used to convey the action of developing the integrated communication of brand. It is also the process of crystallizing the essence of the brand, of developing the "brand story" and expressing it uniquely

* People want to escape and find happiness. Disney offers a journey into the imagination of children turned real. They pay close attention to details and ensure the brand experience will exceed most expectations.

Sometimes it pays to be a duck or a mouse!

http://www.marketingscope.net/

About the Author

I entered the advertising industry launching and managing multiple city magazines. I was highly successful and awarded numerous times for building a magazine division and acknowledged for strategic marketing, increasing revenues, leading and motivating employees, retaining customers, and managing cash flow. My strong skills in strategic planning, creative marketing, promotion, value added selling, and communications became invaluable.

Join our marketing team and learn how to brand yourself!!  Get more details by visiting my website:

 http://www.whoiskennourolahi.com/

To Your Success,

Ken Nourolahi

Thursday, January 28, 2010

Why An Autoresponder is an Essential Tool to Building Any Business Online

An Autoresponder is the beginning of your marketing funnel. This is where your prospect enters your sales channel. This is where you can engage them and even more importantly follow up with them. The average person does not respond to any sales offer until between 5 to 12 follow ups. Consistency is Key! Build rapport and establish a relationship with your prospect. Offer Value and content through your emails. Keep your emails short and sweet, preferably small paragraphs. Sending them in intervals of 2 - 3 days is enough for you to stay on the top of their minds. Any shorter than that and your content comes across as being spam. Any longer then 3 days in between messages they may forget who you are and consider it spam also.

There are 3 core activities you want to accomplish with your autoresponder:

1. Build your list: Whether are prospects, clients or buying customers. As a newbie online marketer you should be spending a great deal of effort on building your list. Every successful network marketer, internet marketer a home based business guru will tell you, your list is the most important thing you have when it come to marketing online.

2. Build relationships with your list: This means finding out what your prospects needs are. This is where knowing your target market is so crucial. By using your autoresponder you can send direct and precise sales letters to your list based around the needs of your prospects. Take at least 2 days out of the week to write your pre-written sales messages. If you are selling a product, include discounts, or run periodic sales. For service based business, offer them half off their 2nd service, or additional discounts for referral fees. Business opportunity providers and Network marketers, offer value, content, free mentoring, free training to your potential prospects.

3. Monetize your list: - This is the part where you capitalize on the offer, value, and information you have given the prospect or client through your Autoresponder led campaign. Only when you have led with value first, should you know begin to send your sales offers. Network Marketers, You can utilize Affiliate programs or your own products so long as they will benefit your target market. Product and service business owners can now offer higher ticket items along with their catalogs or other ongoing marketing offers.

Continue to create value and give your target market exactly what they want. Don't be afraid to send survey's to your list asking for their input. Market yourself first before you pitch your products.

In closing if you're not using an autoresponder today, you're not even considered to be marketing online. Any prospects that come to your site, will glance at it, and they're on their way out. You have no way of retaining them though they're up for grabs from your competitor. Lastly there are tons of autoresponders on the market, my personal favorite and those that almost every top marketer uses is Aweber.

For more success tips on how to build your business online join the author at http://bit.ly/caesarquick.com.

You can get more info on the autoresponder I use by clicking on the following link or copying it into your browser http://aweber.com/?340535

Sunday, January 24, 2010

How can we become better learners? By Ken Nourolahi

How to develop better learners is a question that has been pondered since the beginning of humankind. The survival of early humans depended on the ability of the young to observe and duplicate the parents’ model of food gathering, shelter building, and nurturing the young. When humans developed language and reading and writing skills, teaching methods became more sophisticated ranging from the Socratic Method to John Dewey’s pragmatist views that spawned public education, to the brain-based research that influences teaching and learning methods today.


Current technology, including NMRI (Nuclear Magnetic Resonance Imagery) and MEG (Magneto Encephalography), allows researchers to detect brainwave patterns and track brain activity while a person performs specific learning tasks. More important information on how a person learns has been provided by current genetic research. Plomin, Kovas, and Haworth (2007) explored the genetic link between the brain, mind and education in their research.

Research confirms that children’s sleep patterns, diet, amount of exposure to television, parental attention and exposure to reading, and even the amount of water a child consumes during the day has a direct impact on their ability to learn. Eric Jensen points out in his book, Teaching With the Brain in Mind, that educators must explore how children learn before they can provide opportunities for them to learn. One of the more interesting sections of Jensen’s book is the one on Memory and Recall (Chapter 11). We should look at memory as a process rather than a particular location of the brain. Giving students a variety of ways to retrieve information will help them reconstruct and activate patterns that allow them to make an emotional connection to the content.

Social and emotional connections to learning cannot be understated. For example, Dr. Oscar Ybarra, University of Michigan, has researched how social interaction can influence cognitive performance. The influence of social interaction on learning is especially apparent with the development of the internet and websites like My Space. The internet provides us with unlimited opportunities for learning. However, it is important to direct this learning in constructive and profitable ways. Our approach to teaching and mentoring our associates takes into consideration the different methods that people learn. Using the written, audio, and video mediums allow us to combine the learning and doing to accelerate their success.

Get more details by visiting my website www.WhoIsKenNourolahi.com and subscribing to my private newsletter.

To Your Success,

Ken Nourolahi

Thursday, January 21, 2010

"The Twitter Report" - Summary, Review, & How To Get Your Free Copy...

I just finished reading a new report by Chris Vendilli. Inside this report Chris talks about the in's & out's of configuring your Twitter account along with some free third party services to maximize your traffic & exposure.

I was skeptical at first, but after reading through the whole report and watching a couple of the videos available at their website I must say, I'm beyond impressed.

This guy has been silently attracting visitor after visitor to his sites using Twitter, and now he's created a step by step guide so that anyone can replicate his most effective methods.

Yes, that's right, it's another "system." Most of us, as marketers, have pretty much come to recognize the word "system" as overused and often incorrectly placed. But, with "The Twitter Report" and the videos that follow, this stuff really is formatted into what you could correctly label a "system" at it's finest.

Chris has uncovered every known tip & trick for setting up your Twitter account to give you maximum return per tweet, while keeping everything on auto-pilot as much as possible. He leaves nothing to question and goes pretty in depth.

Most of the stuff Chris covers includes many things you could likely figure out on your own, however, his report can save you the time & aggravation of having to go through trial and error while you make the same mistakes he's probably already made for you. Why fumble through it all when you can follow his lead and tip toe around the tricky stuff? It's all neatly documented along the way!

Why waste time, energy, and money trying to figure it all out on your own when you could just see how it all worked out for him and simply follow his suggestions, which are already proven to work successfully?

After reading the report and watching some of the videos I give TwitterHints.com two enthusiastic thumbs up, and I recommend it to anyone who wants to stay on the cutting edge of this new wave of communications & hyper-connectedness.

You'll learn how to configure your settings, which 3rd party sites to join & how to set them up to run campaigns automatically, and much more.

I'm sure you'll enjoy "The Twitter Report" as much as I did and you can go check it out here:
http://www.twitterhints.com/?vip=12523
 
To Your Success,
Ken Nourolahi
http://www.whoiskennourolahi.com