Business Case Studies, Executive Interviews, Martin Lindstrom on Marketing in a Downturn

Help
Bookmark
Tell A Friend

Executive Interviews: Interview with Martin Lindstrom on Marketing in a Downturn
July 2009 - By Dr. Nagendra V Chowdary


Martin Lindstrom
CEO and Chairman of the LINDSTROM company and the Chairman of BUYOLOGY INC (New York) and BRAND sense Agency (London).


Download this interview

    SST is a variation of EEG, a technique developed more than a century ago. EEG measures electric signals sent by the brain. This highlights the areas of the brain which are active. The technique is cheaper than fMRI, but not as accurate. fMRI testing canmake examinations deep into the cortex, and can investigate specific areas, as small as 1 mm. EEG is not capable of such specific investigation and needs a larger number of subjects to glean useful data. Buyology used both methods and stands as the largest and the most advanced neuromarketing study ever conducted.

  • The findings of this project were controversial. Can you share with our readers those controversial findings? Were you shocked when you initially looked at those results yourself? What surprised you most?

  1. The most provocative finding from the Buyology study was probably from the religious study where we found a strong parallel between religion and powerful brands. Not to say that a religion is a brand but to say that brands often have strong similarities with religion. Naturally this has caused major attention and interest – and some has even upset people; that said, I’ve been surpised about how few people have complained about the nature of the study.
  2. The second – highly controversial finding was the fact that health warnings on cigarette packs don’t work. In fact they often have the totally opposite effect. This of course has shocked the entire anti-smoking community – not to forget the tobacco industry which over the past two years has tried to stop the book several times.
  3. Another finding shocked the world too – the fact that Ford, a $26 mn sponsor of American Idol, is wasting all their money – in fact they’re deleting their brand.
  • The book Buyology reads more like a neuroscience book rather than a marketing edifice. Of course, it’s absolutely superb way to combine science with marketing. Was it intended to be that way or was it an unintended consequence?
    Absolutely – I wanted to make it a book everyone could read.

  • How do you think the companies (B2C companies in particular) should communicate with the ‘subconscious mind’ of the consumer?
    To make a long story short, they’ll more andmore begin to communicate without using their logo and instead use ‘subconscious’ signals, i.e., a smell, sound, taste, or a color – signals which are telling the brand story without showing the logo…

  • One of the most interesting yet intriguing ideas embedded into Buyology is mirror neurons. Can you take us through what it means and why is it important to know the way we are all mute witnesses to operation of mirror neurons?
    Mirror Neuron is a relatively new discovery which is dubbed as big as the DNA. It means that we’re hardwired to feel what other people are feeling when doing certain movements – in short, empathy. This can now finally be measured in the brain – which means that brands will be better equipped to understand why we find an iPod attractive or feel cool when wearing a GUCCI bag.

  • Right now the world is in the midst of an economic crisis and several millions of jobs have been cut putting people under fear psychosis. Companies’ bottom lines are severely hit with plummeting sales. Even with economic stimulus packages, people are not willing to spend.What is your advice to all such companies – how should they market their products and services in this meltdown?
    Don’t cut your prices – research shows that by discounting your brand during a recession it will take you seven years to recover your original price level. Focus on your brand strengths (real not imagined!), and emphasize the heritage and classic/traditional values while the crises on people tend to go back to the memories of the good old days.

    Do exploit the fact that your competitors may have shrunk their advertising spending – you can rapidly win back mind share as well if you have the courage to act now. Then rely on your operations and product teams to keep you ahead long term.

Contact us: IBS Case Development Centre (IBSCDC), IFHE Campus, Donthanapally, Sankarapally Road, Hyderabad-501203, Telangana, INDIA.
Mob: +91- 9640901313,
E-mail: casehelpdesk@ibsindia.org

©2020-2025 IBS Case Development Centre. All rights reserved. | Careers | Privacy Policy | Terms of Use | Disclosure | Site Map xml sitemap