As Kotler and Armstrong said, marketing expresses a social process which is about identifying and meeting human and social needs. A behavior pattern is one of the fundamentals of psychology. In addition, in order to understand customer`s identity, satisfaction and demands you should have enough knowledge in psychology. In other words, psychological principles help marketers to predict how customers behave, change their emotional feelings by implementing different stimuli and reinforce the relationship between customers and the brand. Moreover, colors, numbers, music, and visual elements make psychology more effective in marketing. At first sight, these elements might seem simple however, humankind is complicated that is not simple to influence them. To shed light on this issue, we are going to discuss the role of psychological principles in your marketing.
The Role of Psychology in Marketing Mix
One of the most important impacts of psychology is on Marketing Mix or 4Ps. Product is the first P of the 4Ps, which we initially aim to explain the impact of psychology on it. A Product can be either a tangible good or an intangible service. Business owners should consider research and development as a crucial point in order to level up the product, fulfill customer needs and increase brand awareness. Moreover, psychology helps marketers in the process of R&D to understand the process of the customer’s journey and influence their decisions if needed. It should be noted that psychology does not necessarily have such a major impact on basic decisions, however, it focuses on the time when customers hesitate in choosing between some products.
Price is another item that helps the customers to have a real understanding of the brand and it influences the customer`s decision-making process. In addition, marketers notice psychology as a fundamental factor in how to price their products, since the price can give the positive impression of a product and it influences customer`s decision extremely.
The third component of the Marketing Mix is Promotion. The promotion aims to increase brand awareness and persuade customers to make a purchase. Advertising and content creation are the two important factors of the promotion. In other words, the purpose of advertising is to build a unique placement in the customer`s mind and thus, recognizing positive and influential stimulus on the unconscious part of the customer`s behavior is so important. Furthermore, humanizing products is popular in today’s advertising. To be successful, use influencers to advertise your products and encourage people to purchase your products.
The importance of Content Marketing in the promotion cannot be neglected. Moreover, you can leave your competitors behind by using content marketing in the promotion and also, convey your message to your target audience through storytelling and a proper tone of voice.
The place is the last P in the 4Ps which we want to discuss the role of psychology on this item. Generally, marketing is about putting a product at the right price, at the right place and at the right time. Distribution is a key element in order to advertise your product to the customers. For instance, putting your product in a well-known store can cause the customers to feel that they are going to buy a luxury product and hence, it will affect the customer decision-making process.
What are the Tactics for Using Psychology in Marketing?
The anchoring effect is one of the popular and practical tactics in psychology and marketing. Anchoring effect makes people focus on the first available piece of information given to them while making decisions. This tactic allows business owners to put their expensive products alongside a more expensive but low-efficiency product to make the customers compare these two products and encourage them to purchase. In other words, the anchoring effect will increase your product`s value.
The halo effect is another type of cognitive bias that plays an important role in marketing. The halo effect is your general impression of a person or product that influences the way you think, feel and evaluate their characteristics. For instance, when customers see a product in a well-known store, they feel that this product is more luxury than the products in other stores. Moreover, this tactic plays an important role in the customer`s first impression, since when customers have positive experiences with a product they will form brand loyalty.
Hyperbolic discounting is one of the cognitive bias which uses in psychology and marketing significantly. Hyperbolic discounting can be explained as a tendency for immediate gratification rather than waiting for a reward which is distant in time. Put another way, you can affect the customer`s decision-making process by using “Buy Now and Pay Later” and thus, lead them to the sales funnel. In addition, hyperbolic discounting is an effective way to leave your competitors behind.
Bandwagon Bias is a form of cognitive bias which uses both in psychology and marketing. Bandwagon bias refers to the tendency in which people do something simply because most people are doing as well, regardless of their beliefs and attitudes. In fact, customers prefer to buy a product that other people have a positive user experience and recommend it.
Apple Inc. and Harley-Davidson are the two successful examples of Bandwagon Bias. These two brands with lots of loyal customers can convey their message to the other audience.
Keep in mind that marketing aims to influence customer`s behavior and hence, psychology allows you to predict their reactions to the stimuli easier than the past while making a purchase. Furthermore, Neuromarketing helps business owners to analyze customers’ reactions to the stimuli and manufacture the products based on the customer’s needs and produce the products that even the market does not expect.
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