Why Knowing Psychology is Essential in Marketing

Source: Seopressor Connect

The economic principle I’m exploring is that people generally respond to incentives in predictable ways.

 My research question to help me study the economic principle is how does psychology play a role in marketing? 

The article published in Marketing Huddle titled “Why Psychology is Important for Marketers to Understand” demonstrates this economic principle by arguing that people buy products not for necessity but for psychological reasons, the reasons why people buy products being linked to psychology, and how psychologists have shown that people’s buying habits are rooted with an emotional reasoning. 

First, Saunders discusses the motives of buying needs. He describes that ¨because most buying decisions are motivated by the needs of Maslow’s hierarchy, which are psychological. People are rarely motivated to buy because of the basic needs of survival, such as hunger or the need for sleep, but most often because of the psychological needs of the upper four levels.” This means that most buys are not based off of basic necessities. Instead, buying is based off of psychology and marketers know this and approach things based on people’s emotions. I was not surprised by this finding because people are so materialistic since we live in such a consumer based society.

Second, the psychology put into buying behavior is huge for marketers. Saunders describes that “[People] buy because [they] want more time, better health, more self-confidence, improved appearance, more leisure or comfort, or what we perceive as a better life. [People] also buy to avoid taking risks, losing money, leaving ourselves vulnerable to threats, potential suffering, embarrassment or worry. [They] think [their] purchases will keep us up-to-date, make us likable or influential, or help us better express ourselves.¨ These processes of why people purchase and the motives behind it show that people are very complicated. It shows that marketing takes a lot more skill than many people perceive it to. I am amazed at the information psychologists have correlated with buying and how people have many underlying reasons for their purchases.

Third, Saunders discusses that marketers need to follow a certain approach to their audience. He describes that “Each product meets a real need (if you’re ethical). But it also meets an emotional need. Cars are used to travel and their features can improve safety or fuel-efficiency. But your car also expresses your social status or makes you feel cool. Organic food does help mitigate our impact on the environment, but it also combats anxiety about potentially harmful chemicals. Mobile gadgets help you stay more connected and communicate better with your friends, but they also help you feel more futuristic. There is almost always an emotional component to even the most practical products we buy.” These incentives that psychologists have connected with purchases helps show that there is always a deeper meaning of why people buy products. It helps show that marketers really need to dig deep in order to show that their product meets each person's emotional needs. I find these incentives to be overwhelming. The processes that marketers go through are rooted so deep which is why selling a product can be difficult.