Marketing Psychology And Human Behavior: Tactics That Work

We can take inspiration about the fascinating interplay between the psychology of marketing and human behavior from an unlikely source: Bonfire Night. Yes, that's right, the age-old tradition of Bonfire Night, celebrated with fireworks and bonfires on the 5th of November, can offer profound insights into consumer behavior and the art of effective marketing. Allow us to explain. 

"Remember, remember the 5th of November." This timeless nursery rhyme harks back to the Gunpowder Plot of 1605, an audacious scheme to blow up the Houses of Parliament. Today, it's a day of remembrance, known as Bonfire Night or Guy Fawkes Day. Celebrating a failed assassination attempt from over four centuries ago might seem peculiar, but it underscores the significance of our history in shaping our collective consciousness.

People lighting bonfires and celebrating unity on Bonfire Night? While the original bonfires in 1605 commemorated the thwarting of treason, today's celebrations signify something just as vital - the essence of shared experiences and emotions. But what keeps us coming back year after year to mark an event that transpired long before our time?

Bonfire Night provides a compelling example of the enduring power of tradition, shared history, and the way it stirs our emotions. Even as you bundle up to stay warm on a chilly November evening, there's an undeniable sense of togetherness that transcends the cold. It's a night to relish the warmth of friendships and family bonds, forging connections that withstand the test of time, both in moments of joy and adversity.

In essence, Bonfire Night serves as a reminder that in marketing, just as in life, the loyal customers who return year after year are as vital as new prospects. Successful marketing isn't solely about statistics and demographics; it's about evoking powerful emotions and resonating with consumers on a personal level. Join us on this journey as we explore the psychology of marketing, human behavior, marketing psychology tactics and the role of emotion in shaping consumer decisions. Discover how, by leading with emotion, marketing can wield a transformative influence on consumer behavior.      

Consumer Psychology: don't get lost attracting potential customers that you forget about your most loyal customers.

If you want to attract new customers, you must first learn to master how to retain your current customers' attention,  otherwise you will only ever be chasing new customers. Only for them to never return. So, what keeps customers returning and engaging with your brand? It's when they trust in what you offer, because your messaging and quality of service have stayed consistent. It’s when your values, personality and vision are interwoven through every part of your brand and people can feel your authenticity and passion.   

But it’s also when you still make them feel they’re on a journey every time they engage with you, even if they’ve been in your world for years and years. Whether that’s a journey to be the best version of themselves or a journey to be the kind of person who gets to experience the most luxurious chocolate, the minute people no longer see themselves on a journey with your brand, is the minute you lose them. 

This is also the minute that it becomes about you, and not them. People engage with brands when they can see themselves as the superheroes of the story. No matter what you’re selling, if your customer is not the superhero, you’re losing them. 

Marketing psychology and fireworks

Fireworks make people happy and emotional. The amygdala is a little ball of nerves in the brain that detects fear. The lights of fireworks stimulate the anticipation of a threat, and the resounding crack confirms the perception. In response, dopamine, the chemical responsible for giving a strong sense of pleasure, satisfaction and motivation, is released in the brain’s reward centres. This is why when people watch fireworks, their eyes are often fixated on the sky, mesmerised and anticipating the next crackles of colour.  

The psychology of marketing works in the same way, using exactly the same reward centres.

Known as the feel-good neurotransmitter, dopamine surges in situations such as when we’re eating our favourite food, earning money, winning a game or buying something new. In fact, dopamine starts to take effect before someone has even bought something, when they’re imagining how it might feel to buy something. This is scientific proof that the journey you take someone on in your marketing is essential! Make it an epic one, and do this by creating connection and community!

Psychology and marketing: 10 important principles of psychology

Psychology and marketing go hand in hand as understanding human behavior can greatly enhance marketing strategies. By incorporating key principles of psychology into marketing campaigns, businesses can effectively reach and engage their target audience.

1) Priming

Understanding how customers think and act is crucial for marketers to successfully promote their products and services. One effective tactic is priming, which involves influencing potential customers to feel a certain way or have certain thoughts before they encounter a product or service. By strategically utilising priming techniques in content marketing, marketers can learn to shape the perception and emotions of their target audience.

For example, if a marketer wants to promote a new luxury skincare product, they can use visually appealing ads and testimonials from satisfied customers to create a sense of excitement and desire. Understanding how customers respond to such stimuli helps marketers tailor their content to evoke the desired emotional and cognitive responses, ultimately leading to increased engagement and sales. By understanding the psychology behind consumer behaviour, marketers can apply effective tactics that improve their marketing strategies and drive business success. 

2) Reciprocity

Reciprocity is a powerful principle based on the human tendency to return a favour or act in kind when someone has done something nice for us. To utilise this principle in marketing, marketers can show their customers a sense of generosity and give something of value to them. In the world of digital marketing, this can be achieved by offering free trials, exclusive discounts or valuable content.

By giving first, marketers create a sense of obligation in their customers to reciprocate the favour by making a purchase or engaging with the brand further. This tactic is particularly effective in attracting new customers who are more likely to trust and invest in a brand that has shown them kindness and generosity. And this can significantly enhance marketing strategies and contribute to business success. 

3) Social proof

Social proof is a psychological phenomenon where people look to others for guidance on how to behave in certain situations. In marketing, social proof plays a crucial role in influencing consumer behavior. By showcasing positive testimonials, reviews or endorsements from satisfied customers, marketers can create a sense of trust and credibility in their brand. This can be achieved through various means such as featuring customer testimonials on websites, displaying star ratings and reviews or leveraging influencers to endorse products or services. Influencer marketing can show your customers how amazing your product or service is, as people listen to people they like or trust, and in the modern day, are more likely to trust other people enjoying a brand, than a brand itself.

When consumers see that others have had a positive experience with a particular brand, they are more likely to believe that they will have a similar positive experience. This can lead to increased sales, brand loyalty and a positive brand reputation. Social proof is particularly effective in today's digital age where people heavily rely on online reviews and recommendations before making purchasing decisions. 

4) Decoy Effect

The Decoy Effect, also known as the asymmetric dominance effect, is a cognitive bias where consumers' preferences between two options change when a third, less attractive option is presented. It’s commonly used to influence consumer decision-making and encourage customers to choose a particular option. The Decoy Effect works by presenting consumers with two options, one of which is more expensive or less desirable than the other. When the third, less attractive option is introduced, it serves as a decoy to make the original option appear more appealing in comparison.

This triggers a shift in consumer preferences, as the less attractive option creates a reference point or frame of comparison for the other options. For example, imagine a restaurant offering two sizes of a pizza: a small pizza for £10 and a large pizza for $20. When a third option, an even larger pizza for £25, is added, the large pizza that was originally the most expensive and might have seemed less appealing suddenly becomes more attractive to consumers in comparison to the costly, extra-large option.

5) Scarcity

Scarcity is a psychological principle that states that people perceive a product or service to be more valuable if it is limited in availability. When something is seen as rare or hard to obtain, it creates a sense of urgency and desire among consumers. 

There are various ways in which marketers can use scarcity to their advantage. One common strategy is to create a limited supply of a product or offer limited-time promotions. For example, a clothing store might advertise a "limited edition" collection that will only be available for a short period of time. This creates a sense of exclusivity and motivates consumers to make a purchase before the opportunity is gone. Another way to leverage scarcity is by highlighting the potential loss or missed opportunity if the product is not obtained. This can be done by using phrases like "while supplies last" or "limited quantities available."

By emphasising that the product may not be available in the future, marketers can create a fear of missing out (FOMO) and increase demand. Scarcity can also be created through social proof, where the perceived popularity or demand for a product is emphasised.

6) Anchoring

Anchoring, in the context of psychology and marketing, is a cognitive bias where individuals rely heavily on the first piece of information they receive when making decisions. Marketers can use this bias to their advantage by strategically positioning a higher-priced product or service as a reference point or anchor.

By doing so, they can make other products or services seem more affordable or attractive in comparison. For example, a clothing store may place an expensive designer item next to a lower-priced item of similar style. This creates an anchor for the customer, making the lower-priced item appear more affordable and potentially increasing the likelihood of a purchase.

7) The Baader-Meinhof Phenomenon

The Baader-Meinhof Phenomenon, also known as the frequency illusion, refers to the experience of learning or noticing something and then suddenly seeing it everywhere. This psychological phenomenon occurs when the brain, primed by recent exposure to a particular subject, becomes more attuned to that subject and starts to notice it in the environment. Humans have a natural tendency to seek patterns and meaning in the world around them.

This principle can be harnessed in marketing efforts by creating exposure and repetition of a specific brand or product. By repeatedly exposing a target audience to a brand or product, marketers can increase the likelihood of that brand or product being noticed and remembered. The Baader-Meinhof Phenomenon can be used to great effect in shaping consumer behavior and preferences. By strategically placing advertisements and generating word-of-mouth, marketers can tap into the human psychology and make their brand or product stand out in a crowded marketplace. 

8) Verbatim Effect

This refers to the tendency of individuals to remember the gist or general idea of information rather than the exact wording. In marketing, this principle suggests that it's important to craft clear and concise messages. Marketers should aim to communicate the most critical information about their product or service in a way that's easy to remember, as customers may not recall all the specific details but will remember the overall message.

Understanding this concept can greatly improve your marketing strategies. When crafting messages for your target audience, it is important to focus on delivering the key message or main point rather than getting caught up in the exact wording. By doing so, your marketing materials will be more effective in resonating with your audience and increasing their likelihood to remember and engage with your brand. By utilising the Verbatim Effect, you can better understand how your customers think and act.

By identifying the main idea that they are more likely to remember, you can tailor your strategies to align with their thought process and behavioural patterns. Remembering the gist allows you to create marketing campaigns that appeal to your audience on a deeper level, increasing the success of your efforts.

9) Clustering

Rooted in human psychology, clustering is a cognitive process whereby individuals naturally and intuitively group related information or items together to facilitate easier recall and understanding. In the context of marketing, this principle can be effectively applied by strategically organising products or services into logical and cohesive categories or groups. The primary goal of clustering in marketing is to enhance the customer experience by simplifying the navigation and comprehension of the products or services being offered.

This organisation not only aids customers in quickly locating items that match their needs and preferences but also creates a more intuitive and user-friendly interface or product presentation. When customers can easily find what they're looking for, they are more likely to engage with the offerings, make informed purchasing decisions and complete transactions. As a result, clustering serves as a fundamental tool in optimising the user experience, fostering a positive perception of the brand, and ultimately increasing the likelihood of generating sales and customer loyalty in the competitive world of marketing.

10) Loss aversion

Loss aversion is a psychological principle that suggests people are more motivated to avoid losses than to acquire equivalent gains. In marketing, this can be leveraged by emphasising the potential losses customers might experience by not choosing a particular product or service.

Marketers can use messaging that highlights the negative consequences of not taking action, such as missing out on a limited-time offer or the potential drawbacks of not using a specific product. This can create a sense of urgency and motivate customers to make a decision.  

Influencing purchasing decisions with an emotional pull = people standing with you for years to come!

There's no shortage of psychological tactics to employ, each with its own allure. Yet, when it comes down to it, the essence of successful marketing lies in establishing trust and delivering on expectations. Think of it like the anticipation that fills the air before a fireworks display. People attend with a clear expectation—fireworks. But what makes this spectacle truly mesmerising is the kaleidoscope of colours, the symphony of sounds and the ever-evolving patterns that unfurl in the night sky, creating a unique masterpiece moment by moment.

Now, picture each burst of colour as a piece of content you share with your audience. With each new interaction, your customers imagine what it would feel like to engage with your brand, whether it's their first encounter or a return visit. Consider the crackles and pops of the fireworks as the distinct moments of connection your customers make with your brand, each evoking a powerful emotion.

The lesson is clear—never forget the importance of engaging, entertaining, inspiring and forging connections with your existing customers. It's these experiences that keep them invested in the journey you're guiding them on. Your challenge is to craft marketing strategies that stand out, like a dazzling fireworks display in the night sky, to continuously serve your customers and foster enduring loyalty. 

If you're frustrated with your marketing efforts right now, check out our blog, Does Marketing Give You Instant Results?

And if you’re ready to ignite a brand that will keep the spark of customer loyalty burning bright, take a look at our self-paced course, The 6 Steps To Marketing Clarity. And the best part? It's available at an incredible value of just £97.  Don't miss out on this chance to master the art of creating marketing fireworks. You can’t create unwavering customer loyalty, without nailing the solid marketing foundations of your brand first.