Develop your ability to understand how an understanding of Psychology can be applied to marketing

Market segmentation focuses on the consumer end of the market. It breaks away from the old-fashioned view that consumers were one large undifferentiated market. Instead it focuses on target groups. Segmentation is the backbone of the marketing concept. Marketing Psychology looks at this and much more...

Once a niche in the market has been identified, a product can be positioned in the market place.

Today marketers are able to target their market segment and send personalised communications. This is known as a segment of one and is a return to producer-consumer relations that existed prior to mass production.

Why do people choose to buy something?
What influences their thinking to decide one way rather than another?

Study Psychology of Marketing

  • Learn what motivates people to shop, and make decisions about buying
  • Sell more, sell better -work in sales, improve business performance
  • A great course for people who work, or want to work in sales and marketing



There are eight lessons in this module as follows:

  1. People as Consumers Understanding the types of psychological "rewards" gained by a person through buying. Distinguishing between consumers, customers and buyers?
  2. Market Segmentation Understanding market segments and applying the concept of target marketing.
  3. Internal Influences -Perception & Personality Consumer self image, difference threshold, trait theory of personality, etc.
  4. Internal Influences -Motivation and Awareness Customer satisfaction, the way complaints are dealt with, stimulus generalisation and stimulus discrimination, etc
  5. Social Influences Family Influences, Social groups, Developmental Influences, Peer Group Influences (Work and Leisure), Social Class and Culture
  6. Consumerism Deceptive advertising, sensitivity to consumer needs, variation between perception and reality.
  7. Communication and Persuasion Message Evaluation, Selection & Execution
  8. Deciding to Buy Why people shop, or do not shop; surveying the market place. 

100 hours


Who is Going to Buy from You?

Different customers are motivated by different things. If you want to sell more effectively; you need to get to know and understand what type of customer you are dealing with.

Loyal Customers – These may represent up to 20% of a business’ customer base, but can make up more than half of the sales. Marketers will aim to contact clients in this client base regularly, via email, phone, telephone and so on. Marketers should focus on their needs and involvement. Whilst we may seek new customers, it is important to focus on encouraging loyal customers to remain so.

Discount Customers – These are customers who shop regularly with a company or store, but tend to make decisions based on money off/mark downs or special offers. These clients are useful as they move products quickly, BUT they are more inclined to return products.

Needs-based Customers – they intend to buy a particular item. The client will be driven by a particular need. When they enter a store, they will want their need filled quickly, if they cannot see what they want, they may leave. If they are satisfied, they may become loyal customers if they are treated well. Needs based customers may focus on the internet or go to a different retailer if their needs are not met, so it is important to try to meet the needs of this client group.

Wandering Customers – They do not have a specific want or need when they come into a shop, but want the experience/or community. They have the largest segment in terms of traffic, but make up the smallest amount of sales. The wandering customer should still be taken note of. They are looking for an interaction, but also they may discuss your store/business with other customers, who may actually be buying, so it is useful to treat them as potential customers and they might buy something. BUT it is also important that staff do not waste valuable time with customers who do not eventually purchase items.

Impulse Customers – Customers who buy on impulse, on the spur of the moment. They will usually respond well to recommendations from staff, so can be a useful way to sell products and services. More on impulse customers shortly.

Economic Customers – These are only interested in quality, price or "economic factors". They are not concerned with staff treatment, shop décor, displays or location.

Ethical customers - These people avoid large chain stores or companies that tend towards monopolies or deal with products which are judged unethical. They don't shop at big supermarkets because "they are putting the small man out of business".  They prefer to buy food from the biodynamic shop because it hasn't been treated with chemicals; buy products that have been made through recycling waste materials and buy energy saving devices.
Consider the effects on the environment caused by the bi-products of detergents, washing powders and so on that they purchase.
Think how the product was made. Did it involve slave labour and consequently someone else’s unhappiness?

Personalising customers – enjoy interaction with sales staff, will develop relationships with them, so will go to the sales staff they know and like.

Apathetic customers - Don't like shopping, go to the most convenient supplier because they must.

Consumers might also be a mixture of types e.g.. An ethical economic shopper or a loyal personalizing shopper and so on.


Understanding Memory and Marketing

There are a number of techniques that have relevance with regard to memory and product advertising.

  • Repetition

TV commercials usually last 30 seconds or more and normally involve repetition of the brand name. This is just enough time for the product to enter long-term memory.

This method is not foolproof. Only those consumers who are already motivated will remember the product. Also, information is lost with each repetition. Finally, it may be a futile form of advertising when there is a lot of competition within the same field.

  • Visuals

It would seem that brand names are more readily learned if they have a memorable image to accompany them.

  • Self-reference

It has been found that reference to the self and to people's own lives also increases the likelihood of them remembering products

  • Mnemonics

This refers to techniques used to remember information by forming associations, creating rhymes, and simplifying information. We can make things easier to learn by dividing them into smaller groups or lists and so on.

All of these techniques provide us with 'meaningfulness'. That is, we can make information easier to learn by using patterns, keys, associations and so on. We organise our memories into 'schemas'. It is these schemas that marketers wish to exploit.



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