Bausch & Lomb, the eye care company, had high expectations based on earlier research for a brand new contact lens that was set to launch.

Bausch & Lomb, the eye care company, had high expectations based on earlier research for a brand new contact lens that was set to launch. To meet these high expectations, the firm needed to optimize the detail aids—the brochure-like materials used by sales reps to explain features and benefits to healthcare professionals (HCPs)—for the new product. However, traditional methods had consistently led to bloated materials in which the most motivating elements of the sales presentation were lost. Sometimes, called visual aids or sales aids, detail aids are a key tool used by the health-care industry to generate product awareness and sales.

Bausch & Lomb went to Kadence International, a firm that uses neuromarketing research, to gain insights into how to present the new lens and the brochure itself.

Prior to the study, Kadence realized they had to choose the right neuroscience technique. Because the testing procedure meant the HCP was likely to talk/interact with the sales rep (as would naturally happen), this excluded EEG, MRI, and even GSR as suitable techniques, as these suffer from movement artifacts, which cloud the data whenever the subject speaks or moves.

Heart rate monitoring, on the other hand, was a perfect fit. It was noninvasive, a validated measure of emotional reaction and could be collected and viewed in real time—allowing the moderator to identify emotional moments and probe during the debrief session. Backing this up with facial coding—via a small, table-mounted camcorder—allowed Kadence to cross-reference heart rate with facial expression to validate the direction of emotion (positive or negative) picked up by heart rate monitoring.

Using this method, on arrival at the facility each respondent is fitted with a Bluetooth-enabled heart-rate wrist monitor and taken to the interview room where research assistants set up a small HD camcorder and sync this with facial-coding software. The session is observed from behind a one-way mirror and heart rate data is transmitted to an iPad in the viewing room and captured by an app developed by Kadence that allows the backroom audience to view real-time emotional peaks and troughs triggered by the sales pitch.

Kadence’s proprietary algorithms allow the app to pick out emotional highs that are normalized to that respondent’s unique heart rate signature. Over the course of the 15-minute sales presentation, a number of peaks can be identified and the time stamp of these peaks is cross-referenced with the facial-coding video feed to identify the specific triggers/content.

What Did Kadence Learn?

So what did Kadence learn from using neuroscience in this methodology that we wouldn’t have learned from traditional market research? In summary:

Keep it short. The single most consistent finding is that everyone’s engagement declines during the course of a sales call. And by the end of a 15-minute presentation, emotional engagement levels could be up to 20 percent lower than at the start. So if you haven’t got their attention upfront, it’s all downhill from there.

Ask, don’t tell. When do you think people are more engaged—when THEY are talking or when YOU are talking? It’s remarkable how much engagement increases when the salesperson is having a conversation and how much it falls when their presentation turns into a monologue. Thus, you need to equip salespeople with questions they can ask, at every step.

Don’t rely on body language. While research suggests that 80 percent of communication is from body language, our study showed that body language could be misleading. We learned that body language is reflective of personality type—so an extrovert is likely to appear interested in your product and an introvert could appear disinterested, whereas their emotional engagement could be exactly the opposite. As a result, you need to set up tangible follow-up actions to assess if your sales call went well.34

Questions

  1. Given the findings, how might Bausch & Lomb use this information to increase sales of the new lens?
  2. Could other research techniques have been used to gather the same information?
  3. Do you see the possibility of using ethnographic research here? Why or why not?
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Strategic Management Project

Assignment Content Review the Strategic Management Project Background and your strategic management research journal entries from Weeks 1–4. Create a 10-slide presentation for Caterpillar Inc. leadership in which you summarize your key findings, propose….

Case Problem Investment Strategy

Case Problem Investment Strategy J. D. Williams, Inc. is an investment advisory firm that manages more than $120 million in funds for its numerous clients. The company uses an asset allocation model that recommends the portion of each client’s portfolio to be invested in a growth stock fund, an income fund and a money market fund. To maintain diversity in each client’s portfolio, the firm places limits on the percentage of each portfolio that may be invested in each of the three funds. General guidelines indicate that the amount invested in the growth fund must be between 20% to 40% of the total portfolio value. Similar percentages for the other two funds stipulate that between 20% to 50% of the total portfolio must be in the income fund and at least 30% of the total portfolio value must be in the money market fund.   In addition, the company attempts to assess the risk tolerance of each client and adjust the portfolio to meet the needs of the individual investor. For example, Williams just contracted with a new client who has $800,000 to invest. Based on an evaluation of the client’s risk tolerance, Williams assigned a maximum risk index of 0.05 for the client. The firm’s risk indicators show the risk of the growth fund at 0.10, the income fund at 0.07 and the money market fund at 0.01. An overall portfolio risk index is computed as a weighted average of the risk rating for the three funds where the weights are the fraction of the client’s portfolio invested in each of the funds. Additionally, William’s is currently forecasting annual yields of 18% for the growth fund, 12.5% for the income fund and 7.5% fir the money market fund. Based on the information provided, how should the new client be advised to allocate $800,000 among the growth, income and money market funds? Develop a linear programming model that will provide the maximum yield for the portfolio. Use your model to develop a managerial report.   Managerial Report: a.Recommend how much of the $800,000 should be invested in each of the three funds. What is the annual yield you anticipate for the investment recommendation change? b.Assume that the client’s risk index could be increased to 0.055. How much would the yield increase and how would the investment recommendation change? c.Refer again to the original situation where the client’s risk index was assessed to be 0.05. How would your investment recommendation change if the annual yield for the growth fund were revised downward to 16% or even to 14%? d.Assume that the client expressed some concern about having too much money in the growth fund. How would the original recommendation change if the amount invested in the growth fund is not allowed to exceed the amount invested in the income fund? e.The asset allocation model you developed may be useful in modifying the portfolios for all the firm’s clients whenever the anticipated yields for the three funds are periodically revised. What is your recommendation as to whether use of this model is possible?  

Case Analysis

You can view the article (the case), “The Man Who Got Honeywell’s Groove Backt”, by linking to the course EReserves  Follow the Case Analysis Outline given in your syllabus. This is….