The Psychology of Marketing

Ever wondered why you get drawn to buy certain products or avail services? A well-established marketing strategy is behind the advertising of these products and services. Research has shown that psychology is not just an academic tool to analyse human personalities. This fact can be effectively utilised in the world of capitalism. Let’s learn how businesses from vivid backgrounds have applied psychology to create effective advertisements throughout the centuries.

History of Marketing 

Marketing traces its roots back to 1500 BCE when Mesopotamian producers used logos to mark their goods, ensuring quality and building trust. In 1450 CE, Johannes Gutenberg’s printing press revolutionised marketing by enabling mass distribution of printed ads, leading to magazines, billboards, and flyers. By the late 19th century, outdoor marketing became crucial for businesses and governments, especially during the World Wars.
The 20th century saw technological advances with radio and television. The first radio ad in 1922 and subsequent TV commercials used psychological principles like repetition and jingles to create memorable ads. In the 1970s, the rise of accessible computers introduced strategies like e-commerce and spam mail.
By 1995, search engines like Google and Yahoo transformed marketing with targeted ads based on search histories and behavioural patterns. The 21st century brought smartphones, enabling personalised and immediate advertising.

Throughout history, marketing has consistently aimed to understand and influence consumer behaviour, evolving its mediums but maintaining its focus on connecting with consumers through psychological insights. 

The Significance of Psychology in Marketing :

Have you ever asked your psychology major friend to tell you what you are thinking? While this perception is exaggerated, psychology plays a crucial role in understanding human behaviour and patterns.  
The businesses, although excel in providing solution to the problem, lack the skill to effectively communicate their message. This is where psychology comes into rescue!

The abundance of information and exposure to a lot of content online has reduced the attention span of the general consumer, by approximately 8 seconds. It means marketers have 8 seconds to get their message across and get the public attention.

Here are some common Psychology principles that can be used for your brands marketing:

Imagine a campaign as a living organism, each element contributing to its overall health and impact:

The Give and Take Psychological war!

As the name suggests, the reciprocity principle relies on the give-and-take method. When we give someone something, we sociologically and psychologically burden them to return us with similar favour. Many businesses give out free coupons, or services expecting the consumer to invest more in their products or services. The concept of Free Trials utilises this psychological principle to bring in customers

Get Hooked, Get Commited!

The psychology of a consumer can be simple at times. The commitment principle of psychology basically means, get them hooked and they will commit to you! Many businesses give away cheaper packages for your services or products or even give them out for free. This lets the consumers experience their products or services and get acquainted. If they think the product or service is worthy, they’ll commit to the business and pay for more.

Show Them Proof

There is a well-established psychological principle: Consensus. Based on what people have said, they are mostly influenced by reviews and testimonials. This principle works for a lot of businesses because it provides proof that their services and products are used by others as well. This brings credibility to the businesses. So, for your next advertisement endeavour try using your already established customer base!

Show Them You Can Be Trusted

Businesses can establish themselves as an “authoritative” entity. Authority comes with responsibility. We have all heard this once in our lifetime. Why does this idiom exist? The answer lies in psychology. People tend to trust someone who poses authority and responsibility. Businesses should appear as authoritative figures in the world of the market. To do so, publish authoritative and industry-specific content. Let them know your awards and badges and develop a trusted team of influencers in the market.

Understand What They Like

Understanding what your targeted audience likes and wants is a crucial step in the marketing world. This helps you to reach the right audience. SEO tools are on the rise in the marketing world. They enable marketers to analyse recent trends and reach the right audiences. However, if your message doesn’t have the ‘It’ factor for your targeted audience, you risk losing attention and low viewership. Therefore, to know what your target audience likes and wants is to effectively reach them and convey your message.

Limited Supply = Mass Availability 

Scarcity is the backbone of the Economy. It encourages people to act quickly. Utilising Scarcity as marketing can encourage immediate action from the consumers. Offers that have deadlines are seen to be well-received in case of limited offers. Limited offers get you customers quickly and if they like what you sell to them, they might pay for more!

Be Specific

Psychology has eased its way into marketing without even being intentional! The study of general reaction of people to vast information has brought us to the Verbatim effect. The verbatim effect means that cognitively people remember the general gist of the message, not the specificities. Don’t waste your time being too specific with your content, get your message out in such a way that the gist of it is sufficient enough to attract people. Give a summary, not a description!

Pshychology Of Colours

Colour psychology is not a hidden tool for the world of marketing! Most businesses and enterprises use colour theory to target their desired audience. Up to 90% brand’s initial impression is influenced by the colour it uses. Colour theory says that each colour is associated with a different type of reaction. For instance, we often associate blue with calmness and yellow with optimism. So, what colour you are using to convey your message must be carefully thought through as well.

Pshychology Of Empathy

Have you ever stopped your mindless scrolling for a cat mewing, a husky being playful, or a pitiful video that made you want to do something for the world? Invoking empathy is a powerful tool for marketing as well. Your brand is noticed more if you manage to get an empathetic reaction from your audience. Make them laugh, cry, fear or excited! If you manage to get to their heart, you’ll surely be remembered.

Businesses That Use Psychology in Marketing

The truth is that almost every successful business leverages psychology in their marketing to some degree. Let’s have a look at some of the most successful ones:


Apple: Apple is a master of creating a sense of brand loyalty through emotional connection. iPhone is no longer a device, it eludes luxury. Their sleek product design, minimalist advertising, and focus on user experience all contribute to a perception of luxury and innovation.

Amazon: Amazon employs a variety of psychological tactics, including:
- recommending products based on past purchases (reciprocity), 
- offering limited-time deals (scarcity), and 
- showcasing customer reviews (social proof). 

Nike:Nike is the classic example of utilising the psychology of Empathy. It’s marketing campaigns often focus on inspiration and empowerment, using powerful imagery and celebrity athletes to motivate consumers to achieve their fitness goals .

Mcdonald's: We can see colour psychology being used in the marketing strategy of Mcdonal’s. Mcdonald's uses familiar colours (red and yellow) to create a sense of warmth and comfort. Moreover, their marketing often features happy families enjoying meals together; eluding empathy from the customers.   

Conclusion

Psychology is a powerful tool that shapes our purchasing decisions in subtle ways. By understanding these tactics, we can become more nuanced in marketing. However, it’s important to remember that psychology can also be used for ethical purposes. Marketers can use their knowledge to create advertising that is not only persuasive but also informative and beneficial to consumers. The future of advertising lies in striking a balance between influence and transparency.

Need Help?