It is a well known fact that somewhere behind everything we do, there is a psychology theory governing our every move and the marketing world is no different. Thousands of theories propagate their way into our marketing strategies even if we don’t know it. One key part of being a great marketer is understanding how and why people think and act the way they do.
Predictably Irrational (a book by Dan Ariely) demonstrates multiple ways that people don’t behave rationally when making everyday decisions. A great example is that people are more willing to purchase an item that has free shipping, even if the total price paid is about the same as an Identical product that charges the same amount but for separate shipping and handling! Why? This is all psychology. People perceive that they are getting a better deal for the item with free shipping because they believe they are getting something free when in fact the price of the item is usually increased to allow for the money lost through shipping.
The basic economic principle of supply and demand is possibly one of the most well known and well used principles in marketing. The more rare the opportunity, content or product is, the more valuable it is. In order to use this principle effectively in marketing, it is important to take the right approach. If you approach the scarcity concept as if there used to be a ton of a product or service but due to demand there’s very few left, people will be highly receptive. However, if you approach it from the angle that there are only a few products in total, the principle won’t be as effective. People need to believe that the service or product is of high value or quality and that’s why it’s so scarce.
Finally, but by no means the last theory that plays a part in marketing, is the Baader-Meinhof Phenomenon. Have you ever heard about a product or seen an advertisement and then started seeing that product everywhere you look? This is the Baader-Meinhof Phenomenon. It starts after you encounter something for the first time and then start noticing it crop up in everyday life. This is because selective attention kicks in when you’re struck by a new word, thing or idea. You then unconsciously keep an eye out for it and as a result find it surprisingly often. This is why remarketing can be an essential part of a campaign and can increase the possibility of someone converting.
So, when marketing any product or service to any audience, it is important to keep in mind why they might make the decisions they make and that learning your customers behaviours might just make your campaign that little bit more effective.