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MarketingManagementSession2

QianXU,PhD.Spring,2017

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Today’sagenda

•1. Review•2. Neuromarketing•3. Bigdata•4. Virtualreality•5. AbriefhistoryofMarketing

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Part1Review

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1.1Questionsrevisited

• Textbook:• BasicallyanyversionwrittenbyKotlerandKellerworks.

• Doesmarketingsatisfyvs.createneeds?• “Inspire”isbetter• Butinspiringisstillnotcreating

• e.g.,Iinspireyoutotryredwine=Iforceyoutotryredwine

• SlidesB(Before)vs.A(After)• e.g.,

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1.2DefinitionofMarketing

• Identifyingandmeetinghumanandsocialneeds.

•Marketingvs.Advertising/Selling

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1.3WhyisMarketingscientific?

•Empirical•Repeatable•Falsifiable

•e.g.,aliensdonotexit.

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1.4Threemajorstreams

Strategy

ConsumerbehaviorModeling

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Part2NeuroMarketing

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Porschevs.FighterJet

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2.1Whatisneuromarketing

•Neuroscience+Marketing

•Metrics:• fMRI(functionalmagneticresonanceimaging)•EEG(electroencephalography)

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2.2Whydoweneedneuromarketing?

ConsumerpreferencesTheydon’tknow Theyknow

Don’twanttotellyou

Can’ttellyou

Whatyoucanknow

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2.3Case:NewCoke,1985– 2002

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2.3.1Background

• 1975 PepsiChallenge• 1982 Dietcoke• Apr.,1985 New coke• Jul.,1985Oldcokeback

60%

24%

0%

20%

40%

60%

80%

1945 1983

MarketshareofCocaCola

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2.3.1 MarketresearchaboutNewCoke

•Tastetest:•>Pepsi•>OldCoke

•Focusgroup:•Themajoritywantedtobuyit•Asmallminority,about10–12%,feltangry

•SmallmarkettestatNewYork:•8%salesincrease

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2.3.1 Disaster

•400,000lettersofcomplaint•14%salesincreaseforPepsioverthesamemonth•Peoplestartedtobuyoldcokeoverseas•US:thedeathofafamilymember• International:asignofAmericancapitalistdecadence

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2.3.2 Whatwentwrong?

•Biasedresultsfromthetastetest•Biasedsampleoffocusgroup•Underestimatetheimportanceofbrand

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2.3.3 Marketinghelps

•Tastetest:PepsiChallenge

•NeuroMarketing:fMRI

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2.3.3.1Singleblindtastetest

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2.3.3.1 Problems withsingleblind

•Theexperimenterswerebiased•Pepsiwasservedchilled,whilecokeatroomtemperature.

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2.3.3.2 Doubleblindtastetest

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2.3.3.2Still problem?

• Sipvs.abottle• Canpeoplereallytellthetastedifference?

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2.3.3.3Peoplecan’ttellthedifference

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Tastetestsintheclass

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2.3.3.3Correctrate

45%

38%

30%

35%

40%

45%

50%

Coke Pepsi

Notsignificant

http://daily.jstor.org/the-coca-cola-wars-can-anybody-really-tell-the-difference/

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2.3.4NeuroMarketinghelps

•UsingfMRI•Detectbrainareas for:

•Sensoryinformation:VMPFC(Ventromedialprefrontalcortex)•Rewardingsystem:DLPFC(Dorsolateralprefrontalcortex),hippocampus.

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Inablindtastetest：VMPFC

CokePepsi

© Qian XU McClure,etal.,NeuralCorrelatesofBehavioralPreferenceforCulturallyFamiliarDrinks,Neuron,(44),379-387

Withabrandcue

Lightupbeforetastingit

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2.3.5Pepsivs.Coke

Tastevs.brand

WhatiftimewentbackforCocaCola?

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CocaColalearns:newtastetest

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2.3.6Assessingtheeffectivenessofads.

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2.3.6Nowwitheye-trackingandEEG

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Part3Bigdata

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3.1What’snotbigdata

你是如何追《琅琊榜》的？大数据都告诉我们了！http://szcb.zjol.com.cn/news/201492.html

Whowatched“NirvanainFire”

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3.2Bigdata

•Bigdata isatermfor datasets thataresolargeorcomplexthattraditional dataprocessing applicationsareinadequate(Wiki).

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3.3Whatbigdatacanhelp?

•Scanneddata:Wal-Mart•Searchdata:google•Viewdata:alibaba•Mobiledata:wechat

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3.3.1Wal-Mart'ssuccess

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3.3.1.1Diaper-beer concurrency

•Men•between30- 40yearsinage•shopbetween5pmand7pmonFridays•purchaseddiapers•mostlikelytoalsohavebeerintheircarts.

http://canworksmart.com/diapers-beer-retail-predictive-analytics/

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3.3.1.1Diaper-beer concurrency

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3.3.2Movebeertodiaper

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3.3.1.3Results

35%increaseinsalesof

bothdiaperandbeer

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3.3.2Amazon:CreepybutAwesome!

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3.3.3Moreapplications

• Facebookcanpredictyourrelationshipinaweek withabout33%accuracy.

• 7-Elevenpredictsfoodandbeveragedemandwithweatherinfo,andtheychangetheshelvesevery4-5days.

• Swipemorethan5,000RMBatone NewWorld(新天地)bar,youmay receiveaninvitationfromAudifora test-rundrive inoneweek.

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3.4Problemaboutbigdata

•Privacy•Lackofcausallink…

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3.4.1Trackyourprivacyleakage• Identifyyourselfasfollowing:

• OnceIgotacoldcall,“Hello,isthisMrs.TwitXU?”(请问是徐浪小姐么？)• Iknowwhosoldmycontact.

Website IDFacebook (人人网) FaceXU(徐人)Twitter(新浪微博) TwitXU(徐浪)Citibank(建设银行) City XU(徐建)

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Part4VirtualReality

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Howarchitectswork?

10 yearsago

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Howarchitectswork?

Now

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Howarchitectswork?

In5years

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Howarchitectswork?

In5years

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Howarchitectswork?

In8years

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Howarchitectswork?

Someday

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4.1Definition:VirtualReality(VR)

• Computer technologiesthatuse software togeneratetherealisticimages,soundsandothersensationsthatreplicatearealenvironment,andsimulateauser'sphysicalpresenceinthisenvironment.

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4.2TypesofVR

•Virtualreality•Augmentedreality•Mixedreality

Advanced

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4.2.1VirtualReality(VR)

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4.2.2AugmentedReality(AR)

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4.2.3MixedReality(MR)

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4.3Applications

•Education•Entertainment•Demonstration•Virtualpresent…

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4.3.1Research:MotorControlLab

HeightandSelf-esteem

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4.4Twomostimportanttechnologies

Spacetechnology Virtual

reality

Three-body

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4.4Oneconcernforhuman’sfuture

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Part5ABriefHistoryofMarketing

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5.1Fourstagesofmarketing

•Productmarketing•Massmarketing•Customized marketing•Masscustomizedmarketing

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5.1.1Productmarketing

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5.1.2Mass marketing

Ford,1908

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5.1.2Customized marketing

Toyota,1940s

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5.1.3Mass customized marketing

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Afterclass

• Takeaseriousconsiderationaboutwhethertotakethiscourse.

• ReadthroughChapters1&2.• Nextweek:

• Takeattendance• Groupassignment• CaptureMarketingInsightsI