Biases in Marketing.
“your zero-to-hero story is a more powerful marketing asset than your degree.”
Every customer has a choice.
Every customer has a preference.
Every customer is a pocket of opportunity.
What do they think?
What do they like?
What are the factors that they consider while buying a product?
These are the questions marketers try to find an answer to so that they can influence potential customers into buying their product.
One of the most common techniques for this is cognitive marketing; some cognitive biases that will make marketing more effective are:
LOSS AVERSION
Studies have found that people work twice as hard to avoid loss as they do to gain benefits. people hate losses more than they love winning and this is why a person will find it more painful to lose $10 than miss out on the opportunity to gain $10. if a brand manages to create a fallacy that missing out on its product will likely result in its loss, then it will manage to increase its sales.
FRAMING EFFECT
how one frame their offer will determine how people respond to it. one famous example of this effect is Mark Twain's story of Tom Sawyer whitewashing the fence. By framing the chore in a positive and fulfilling term, he got his friends to pay him for the ‘privilege’ of doing his work for him.
ANCHORING
The anchoring effect is a bias whereby the first piece of reference influences a person's decision they are given about the topic. anchoring creates a brand recall in the minds of the consumer. For example, when selling a product, if you put the original price first, it acts as an anchor representing the real value of the product. The discount price that follows immediately has more weight as the consumer still has the initial price anchored in his mind.
EXPOSURE EFFECT
mere exposure to a brand can help boost up its sales. people have a tendency to fall back upon things that are familiar to them. a products media presence, store visibility and popularity can create a trigger for purchase decisions. this is why brands like nike and adidas have it easier selling their product unlike some new start up, irrespective of the quality.
THE HALO EFFECT
the ‘halo effect’ is one in which the first impression of a person, brand, product or company influences any further decision. this is why first impressions are important in any job interview. it is important for websites to nail the message they want to convey when the consumers first discover the website. it is impertinent to maintain a great website page that enthrails the audience in the first instance as shows how further interactions will follow.
