Category: The Psychology Of Marketing

WHY PSYCHOLOGY IS IMPORTANT FOR MARKETERS TO UNDERSTAND

WHY PSYCHOLOGY IS IMPORTANT FOR MARKETERS TO UNDERSTAND

It’s important for marketers to study basic psychology because most buying decisions are motivated by the needs of Maslow’s hierarchy, which are psychological. People are rarely motivated to buy because of the basic needs of survival, such as hunger or the need for sleep, but most often because of the psychological needs of the upper four levels.

Advertisers Are After Your Emotions

People are influenced by a number of different factors when making purchasing decisions. Of course, they’re influenced by information and objective facts. But this objective information is often outweighed by emotional or psychological factors. Entire books have even been written about this.

Marketers and advertisers, who have put in a great deal of time and effort in studying buying behavior, have identified these emotional triggers.

A middle-aged man buys a gym membership, not because his doctor has recommended it or health tests have shown that he can reduce the risk of heart disease and other illnesses, but because he sees it as a new lease on life, a turning back of the clock to a younger self.

A young mother buys organic products that are essentially the same as the regular products on the shelves because for her, purchasing these goods is a decision for the environment, her children, and the future.

A teenager buys a pair of tennis shoes without doing any due diligence on the brand but simply because her favorite tennis player wears them and she imagines that she will play better with them.

A small business entrepreneur invests a great deal of money in a new content management system, partly because of the merits of the system, but mainly because she believes it will free up time and grow her business.

We buy because we want more time, better health, more self-confidence, improved appearance, more leisure or comfort, or what we perceive as a better life. We also buy to avoid taking risks, losing money, leaving ourselves vulnerable to threats, potential suffering, embarrassment or worry. We think our purchases will keep us up-to-date, make us likable or influential, or help us better express ourselves.

Each product meets a real need (if you’re ethical). But it also meets an emotional need. Cars are used to travel and their features can improve safety or fuel-efficiency. But your car also expresses your social status or makes you feel cool. Organic food does help mitigate our impact on the environment, but it also combats anxiety about potentially harmful chemicals. Mobile gadgets help you stay more connected and communicate better with your friends, but they also help you feel more futuristic. There is almost always an emotional component to even the most practical products we buy.

For example, if you’re a wine dealer, it may be a better strategy to emphasize a particular wine’s popularity or the awards it has won, rather than trying to educate your market on wine complexity. If you’re selling beauty products, you might choose to focus on how they give you confidence rather than their actual ingredients. A seller of gadgets might highlight how its products connect people and put them in touch with the future, rather than the actual features and improvements.

You’re not underestimating your customers or ‘dumbing-down’ your marketing. You’re simply meeting your customers halfway between the actual features and qualities of your products, and their psychological and emotional needs. You’re directly speaking to their needs or struggles.

When you understand where your products or services fit within your customer’s psychological and emotional needs, you can tailor your marketing approach and tactics. If you know at what point of Maslow’s pyramid they’re struggling, you can identify how your product helps them overcome their struggle or achieve what they want.

For example:

Physical: You could market a cheap meal or snack to people as something to help people get through the day and avoid hunger. A mattress dealer may emphasize the higher-quality sleep their product provides, which allows the customer to function better the next day.

Security: A car manufacturer might emphasize its car’s safety features rather than design or advanced features to fulfill its drivers’ need for security. Financial planning services help people get out from under debts and achieve financial freedom.

Social: Card or gift sellers help you maintain a good relationship with family or friends. A landscaping service or dealer of yard products helps you create the perfect space for entertaining, thus gaining you popularity in your neighborhood.

Esteem: Buying clothes by a certain clothing brand equals higher social status for you and makes you feel good about yourself. A real estate agency markets its upscale neighborhood as a way to move up in the world.

Self-Actualization: A course on self-improvement helps you achieve what you want in life. Donating to a charity organization makes you feel that you’re giving back and creating a better world.

Your customers’ position in the hierarchy will change over time, especially after major life events such as moving, losing a job, getting married, having kids, retiring, etc. When their position changes, your tactics need to change as well.

Since most products fulfill a variety of needs, most products can function at different levels. Let’s consider a car:

 At the security level, it provides safety for your family and gets you where you need to go.

 For the social level, the car brings the whole family together and lets you drive long distances to see friends and family.

 For those at the esteem level, a nice new car can make you feel good about yourself or earn you the envy of others.

 At the self-actualization level, the car is fuel-efficient, helping the environment and by extension making the world a better place.

The basic idea is to identify where your customers are and tailor your message to them by showing them how it meets these needs.

Now that you can see why psychology is so essential, let’s move on to the specific steps of the purchasing process, and then identify concrete tactics you can use to appeal to your customers’ needs.

Learning Activity:

Review the hierarchy of needs again and now think about how your own products and services fit within the levels. What do you offer at each level?

To Your Success

Marcus

masteraffiliatetraining.com

The Customer’s Decision-Making Process

The Customer’s Decision-Making Process


Before you can select from all the marketing tactics available to you, you need to understand the process your customers go through in making a buying decision. What they’re thinking and feeling at each stage is what will help you determine the best way to reach your potential customers.

There are five steps to the decision-making process that customers go through when they make a purchase:

1.Need Recognition and Problem Awareness

2.Information Search

3.Evaluation of Alternatives

4.Purchase

5.Post-Purchase Evaluation


Step 1: Need Recognition and Problem Awareness

The buying process starts with a customer identifying a problem or need. It could be something like, “I’m hungry,” “I need a new lawnmower,” or “I don’t feel safe.” The customers may not identify this problem themself, but may be responding to an advertisement or stimulus. For example, you might walk by a chocolate shop and suddenly feel an intense “need” for truffles.

The distance between the current situation of need and the ideal future that fulfilling the need will create determines the strength of the customer’s motivation to meet that need.

Let’s consider an entrepreneur who realizes they need to automate some aspect of their business. If this automation will save her ten minutes a day, she will feel differently about it than if it would save her one day each week. The one day per week option will elicit a much more emotional response from her.

It’s good to understand just how much meeting this particular need will help your customer. A customer whose ideal situation is vastly better than their real, current situation will be much more emotionally motivated. For a customer whose ideal situation wouldn’t be much different than their current one, you would rely less on emotional marketing and more on presenting objective facts and data.

Step 2: Information Search

At this stage, the customer has realized their need and they’re gathering information on how to best meet this need. During this phase, customers pay more attention to information that comes from friends, family, or other consumers than the official advertising message of the company. They’ll also rely on their own feelings about the brand (for example, this security company is known for the strength of its products). In other words, people tend to rely on social information more than information from the marketers themselves.

It’s good to understand the sources that your customers use for their information. These could be:

Personal sources: Friends, family members, neighbors, co-workers, and other acquaintances they trust.

Commercial sources: Branding, advertising, salespeople, retailers, and point-of-sale displays.

Media sources: Any kind of media including the Internet, TV, magazines, newspapers, etc.

Experiential sources: A customer’s firsthand contact with the product (for example, taking a free trial or handling an item in a store).

As we said before, people tend to rely on personal, public and experiential sources of information at this stage more than commercial sources. People judge information from these sources as being more objective, as they have no vested interest in whether you buy the product or not.


Step 3: Evaluation of Alternatives

At this stage, the customer is checking out alternative brands, products, and services in order to choose what they perceive as the best choice.

Purchases can be divided into two types: High-involvement and low-involvement. High-involvement purchases usually involve those that are high-priced or that involve a great deal of personal risk, such as a house, a car, an investment, or any other major purchase. They can also include items that the customer has a great deal invested in, even if the monetary price is not high.

On the contrary, low-involvement purchases are those that are low-priced or involve little risk. These include choosing basic food products, entertainment products, soft drinks, and so on.

The evaluation stage is much more drawn-out and complex for high-involvement purchases. For example, people spend a great deal of time checking out different models for their next major car purchase. On the other hand, low-involvement purchases are made with little evaluation of alternatives because there is little risk involved.


Step 4: Purchase

At this point, the customer takes the information they’ve gathered and the evaluation they’ve made, and uses this information to make the purchase that will help them meet their initial need.

This is a very simple step, but it’s still important to consider because it can be affected by a number of factors at the point of sale. These factors include customer service, ease of the shopping experience, shipping and return policies, promotions, and so on.

A customer who has chosen a brand for purchase may change her mind at the last minute due to difficulties during the actual buying process. An in-store promotion may sway a customer to change their purchase choice from the one they made at the information and evaluation stage, especially for a low-involvement product.


Step 5: Post-Purchase Evaluation

Once the purchase is made, we’re not quite finished yet. The product needs to deliver on the promises it made. It needs to be in sync with the evaluation the customer made. Other factors like customer support may also play a significant role here.

There are a few things you can do in order to ease the entire process and cut down on buyer’s remorse after the purchase is made:

Show that you understand the customer’s situation and focus on solutions to their problems.

Provide clear and easy-to-understand information about your product or service.

Encourage comparisons with similar products offered by competitors.

Make the purchasing process as easy as possible.

Provide an outlet for the customer to leave their feedback, such as through reviews.


Learning Activity:

1.Think about your own decision making process for finding a new dentist for yourself or your family.

What are you thinking, feeling, and asking yourself at each step of the process?

What information do you need at each step?

2.Now think about the decision making process your customers go through when deciding whether to buy your own products or services. See if you can answer the same questions.

If you have access to a few of your customers with whom you have a good relationship, ask them directly.

To Your Success

marcus

masteraffiliatetraining.com

The Psychology Of Marketing

The Psychology Of Marketing

“There are no magic wands, no hidden tricks, and no secret handshakes that can bring you immediate success. But with time, energy, and determination you can get there.” ~ Darren Rowse, Founder, Pro Blogger

The idea of using psychology as a way to persuade customers to buy from you seems abhorrent to many people. They hate the idea that they might be manipulating customers. But much of that thinking stems from traditional tactics used by unethical advertisers. There are still those who think they can use secret tricks to get people to make a purchasing decision.

In reality, any ‘tricks’ used will hurt your business in the long run, and won’t build the type of lasting relationships that are the foundation of successful businesses. The truth is that psychology is just a science that helps you understand how your customers are thinking. When you can connect with your target market on a deeper, emotional level, you’ll be better able to reach them and help them.

Over the next few weeks I will be delving deeper into with articles relating to the Psychology of marketing, you’re going to learn a great deal about psychology and how it’s used in marketing. If you can understand what your customers are thinking at each stage of the buying process, then you can more successfully connect with them and provide them with the information they need.

Even more critically, you’ll learn how to use psychology in an ethical way. Objective information is helpful during the buying process, but if you have a good grasp of basic psychology, you can figure out how to effectively communicate how your product truly meets your target audience’s needs. When you can connect with your customers at an emotional level, you can grab their attention in a way that any dry, unemotional marketing can never achieve.


Over the course of the next few weeks you’ll be able to:

Recognize the importance of psychology in marketing and advertising

Explain Maslow’s hierarchy of needs and how it relates to marketing

Describe the customer’s decision-making process and how marketing tactics are used to meet needs at each step of the process

Select from a toolbox of proven, ethically sound psychological tactics that are commonly used to drive sales, brand, and meet the needs of customers

Identify relevant psychological tactics that can meet your own customers’ needs at each stage of the decision-making process


Plan your next steps to get started in implementing at least 3 tactics in your business

Your goal for this course should be to recognize a variety of different psychological principles that can be used to ethically influence customers to buy from you, and to identify tips and tactics for applying those principles in your own marketing.

As you go through the course, take note of this quote from Fast Company:

“Smart, skillful, honest marketers use psychology legally, ethically, and respectfully to attract and engage consumers, and compel them to buy.”

Stay Tuned look out for my next article:

Marcus

masteraffiliatetraining.com

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