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Emotion Mining™What Really Moves Us?

The Martec Group, Inc. Confidential

The Martec Group, Inc. Confidential2

IN THE NEWS

Harvard Business Review, November 2015

Marketing Week, January 2016

ISPO News, January 2015

The Martec Group, Inc. Confidential3

30% Conscious

Current tools identify 30% of the motivations that influence our decisions, leaving 70% of the emotional motivations unidentified and untapped...

THE CHALLENGE

70% Subconscious

CONVENTIONAL RESEARCH METHODS

NEXT GENERATION, SCALABLE RESEARCH

“I sense it, but cannot articulate what

matters most to me”

Examples:Price, feature, new

Examples:Passion, aspiration, priority

“I think it, and can articulate my reasons”

...and conscious cognitive biases impair our ability to objectively evaluate information and make effective decisions.

The Martec Group, Inc. Confidential4

THE SOLUTION

Emotion Mining™ is the most effective and scalable tool available for identifying and understanding customers’ emotional drivers.

• Patented* technology and algorithms – psychology, phenomenology and neuroscience based, developed over 20 years

• Easier to administer and scale than other methodologies – the process is computer-based and can be completed at any time the respondent chooses—“no wires”

fMRI Biometric Reaction TimeSmall samples Small samples Small samples

Emotional Intelligence

Expert Implications

Interpretation

Physiological Measurements Psychological Techniques

Faces Images Emotion Mining™Small or large samples Small samples Small samples

*Patent #4,931,934 Method and System for Measuring Clarified Intensity of Emotions Patent #8,562,355 System and Method for Guiding Next Step Adaptive Behavior

The Martec Group, Inc. Confidential5

HOW IT WORKS

•:

Scalable solution utilizes web-based/online data collection to drill down into how customers/respondents “feel” about a brand, product or topic.

Using an ambiguous stimulus (freeform line – centering exercise) respondents provide 6 to 8 one-word emotional responses.

Language is “unpacked” - respondents elaborate on the meaning of emotional responses – providing rich verbatim commentary.

Patented linguistic algorithm tells a comprehensive story of emotional (subconscious) and rational (conscious) factors.

Stated emotions mapped using researched “library” (4,000+ emotion tree) to arrive at 32 Emotion Channels.

Timed freeform exercise provides input regarding respondents ambient “temperament” or mood.

1Freeform Projective Exercise

3Emotion Clarity

5Ambient Mood

2Free Association

4Reported Intensity

6Patented Algorithm

Each emotional response is measured for baseline intensity relevant to topic and other stated emotions.

How does _________________make you feel?

The Martec Group, Inc. Confidential6

PRIMARY APPLICATIONS

Emotion Mining™ addresses a wide range of strategic challenges thatrequire assessing the true voice of the customer.

Brand Position/ImageryBrand Profiling/PositioningBrand Extension/Adjacency

Brand Preference

Marketing EffectivenessAd Tracking/EvaluationSales/Field Alignment

Message Development & Testing

Value CreationBenefit Statement Development

Product/Service Offering Evaluation

Feature Evaluation

Customer ExperiencePath to Purchase

Needs-Based SegmentationCustomer Loyalty/Retention

InnovationConcept Testing

Value Proposition DevelopmentProduct Development

Strategic AnalysisCompetitive Position

Trends & Unmet NeedsGo-to-Market Strategy Evaluation

The Martec Group, Inc. Confidential7

CORE DELIVERABLES

Emotion Mining ™ delivers a robust set of qualitative and quantitative insights, enabling a comprehensive understanding of

customer behaviors and motivations.

Emotional Landscape

summarizes conscious and subconscious

drivers, prioritized by

highest motivational (marketing) potential.

Engagement Metrics provide

“NPS-like” results – providing the ability to track “emotional”

engagement over time and measure

the impact of initiatives.

Polar Maps position

customers’ emotions -plotting the

customer journey across key emotional

dimensions.

Lunch Tables allow for

evaluation of statistically

meaningful AND lower sample, yet

important, directional

insights.

Verbatim comments can be

mined for each emotional

channel/sub-channel – and segmented by

respondent type.

The Martec Group, Inc. Confidential8

ContemptuousAngry

Rejecting

Disintereste

d

Dreading

Dismaye

dAfra

id

Hesitant

Sorro

wful

Shameful

Depressed

Fatigued

Uncomforta

ble

Disreputable

Discontented

Insecure

Secu

re

Contented

Worthy

Serene

Energized

ConfidentProud

Joyful

Trusting

Attracted

Admiring

Amazed

Interested

Accepting

KindLo

yal

THE EMOTION LANDSCAPE™

How does BUYING INSURANCE make you feel?

The Emotion Landscape™ quantifies and prioritizes the emotions with the highest motivational potential, giving clients a new language and blueprint

for communicating both internally and externally.

Pleasant% To

tal C

larifi

ed In

tens

ity

Maximize resources

Wasted resources

SUBCONSCIOUS

CONSCIOUS

Unp

leas

ant

“I think it, and can articulate my reasons”“Say”

“Seek” “I sense it, but can’t articulate what matters most to me”

The Martec Group, Inc. Confidential9

METHODOLOGY COMPARISON

Research Method Surveys In-Depth Interviews

Focus Groups

Emotion Mining

Conscious Emotions Prioritized

Conventional market research methods capture conscious emotions only through self-report.

Subconscious Emotions Prioritized

EMCI’s patented technology reliably captures, analyzes and prioritizes conscious and subconscious emotions to identify the emotions that most strongly engage, motivate and inspire.

Qualitative Respondent Verbatim

The EMCI process lets respondents choose their own words to describe how they feel, mapped to emotional dimensions. Discovery enables the ability to drill down each layer to read verbatim comments from group to n=1. Verbatim is prioritized on the motivational strength of emotional responses.

Open-ended questions for quantitative results

The EMCI methodology supports open-ended questions and quantifies each response by calculating the statistical relevance of each emotional response and prioritizes the highest motivational potential.

Quantitative Results & Actionable insights

The EMCI database and algorithms support multiple (related) quantitative and qualitative analyses. The insights provide direction to achieve best decision and action outcomes.

Unbiased ApproachThe unique EMC methodology eliminates technical, interviewer and respondent bias found in other research approaches. Instead of self-report, respondents are enabled to project freeform, spontaneous expressions.

Number of respondents Unlimited 10-100 5 - 10 per group Unlimited

EMC’s web-based data collection enables scalable applications n=x. The only requirement is an email address to send out the online survey.

Timeframe in weeks* The EMCI technology automates data analysis. Study outputs, insights and recommendations are typically generated within 1 week. 4-8 6-10 8-12 2-3

= 0% effective = 25% effective = 50% effective = 75% effective = 100% effective

*Timeframe includes: create questions, conduct the study, analyze the results and report on the results.

The Martec Group, Inc. Confidential10

CUSTOMERS

FINANCIAL/INSURANCEMANUFACTURING

HEALTHCARE ACADEMIC

SERVICES /MISCELLAN

EOU

SCP

G

This product has been proven effective in organizations across myriad industries and market/product segments.

The Martec Group, Inc. Confidential11

CASE STUDY: COCA-COLA

Helping Coca-Cola® Regain Share Through Effective Advertising

ProblemCoke sought to win over a younger demographic while stopping market share slippage to water and juice.

Study180 Coke Enthusiasts:

• ‘How does Coke make you feel?’• ‘How does this soundtrack make you feel?’• ‘How does this storyboard make you feel?’

200 Pepsi / Dr. Pepper Enthusiasts:• ‘How does Pepsi make you feel?’• ‘How does Dr. Pepper make you feel?’

ResultsThe research showed that Coke’s current advertising strategy was, in fact, servicing competitor brand equity. As a result, Coke created its classic Polar Bear commercials by aligning its creative based on Emotion Mining™ data.

Impact• Increased persuasion scores (relevance, appeal, likeability, entertainment)• 1% lift in market share• $130MM increase in revenue

The Martec Group, Inc. Confidential12

CASE STUDY: AMERICAN EXPRESS

Helping American Express® Reduce Turnover and Increase Competency

ProblemWith a high turnover rate, American Express was losing $50MM per year in training and development costs.The professionalism of its financial planners and salespeople was being questioned.

12

Study360 Clients and Prospects:

• ‘How does the American Express financial planning process make you feel?’240 Financial Planners and Salespeople:

• ‘How does selling American Express products and services make you feel?’

ResultsThe financial planning process was 70% unpleasant for both customers and salespeople. Financial planners and salespeople had varying degrees of emotional competency, but were being discouraged in a flawed process.

Impact• American Express invested millions in a emotional competency training program for financial planners

and salespeople, yielding a 15% sales increase and reducing turnover

The Martec Group, Inc. Confidential13

SUMMARY

Create. Collect. Analyze. Report. Recommend.

Emotion Mining™ identifies subconscious motivators that are below the “stated” surface.

• Help to predict buying behaviors, providing an emotional window into customer decision making

• Properly identifies both emotional and rational connections

Emotion Mining™ plugs into traditional research analyses, including:

• Needs and opportunity assessments; innovation/ product development efforts; brand assessments; advertising audits; customer service optimization; customer loyalty analyses; etc.

Further, Emotion Mining™ generates new research perspectives:

• Emotional landscape/SWOT analysis; emotional segmentation; total customer connection analysis; etc.

The Martec Group, Inc. Confidential14

CONTACTS

martecgroup.com

Jim DurkinPartner/PresidentDirect: 312-606-9672Email: jim.durkin@martecgroup.com

Chuck BeanPartner/CMODirect: 248-327-8005Email: chuck.bean@martecgroup.com

We look forward to working with you to create customized solutions that will guide future business success.