What Is Market Psychology?

Market psychology is the study of the experiences and behaviors of participants in marketing activities. The focus is on sales psychology and advertising psychology. The objects of observation are suppliers, demanders, and market managers. They also involve suppliers' marketing activities, including communication. , Advertising, sales, etc. The focus on consumer / demand-side observation is to observe its economic ethical behavior from the perspective of economics. In university teaching, marketing psychology, advertising psychology, and sales psychology are often taught as part of the marketing or psychology major.

Market psychology

Marketing psychology is an emerging discipline that specializes in the psychological characteristics and behavioral rules of marketing objects (intermediaries, consumers) in marketing activities. This book closely focuses on the structural system of marketing, and draws on relevant research results of general psychology, social psychology, advertising psychology, and consumer psychology, and comprehensively analyzes and studies the marketing activities' psychological activities and behavior characteristics in marketing activities Based on this, it further elaborates how the marketing campaign organizers can adopt effective psychological strategies when using marketing elements. While satisfying the material needs of various customers, they can better meet their psychological needs, so as to obtain more Great marketing benefits.

Market psychology is to provide corresponding market activities based on the analysis of the psychology of the demander, and to adjust according to the psychological response of the demander to the market activity.

Marketing psychology includes: advertising psychology and sales psychology.

Steps in Marketing Psychology: Advertising Promotion-Communication Interaction-Complete Sales

Market psychology is mainly based on the theories of humanistic psychology, and the theory formed by combining the characteristics of market activities. Based on the study of the relationship between human behavior and the underlying purpose behind the behavior, there is currently no widely accepted theory.

Maslow divides the level of human needs into five different levels: physiological needs, safety needs, social needs, respected needs, and self-actualization needs. Each kind of demand does not exist independently. All needs exist at different stages, and a certain kind of demand is dominant. The level of demand is increasing layer by layer. Only after the previous layer is met can the requirements of the next layer be dominant.

The market environment determines the dominant demand of ordinary consumers. Behind the dominant demand is market psychology.

· Before the rapid economic growth period Consumption type: sufficient living Consumption-led demand: Physiological needs, safety needs are: food, sex, sleep, personal safety, occupational security needs

· With the continuous development of the economy, consumption types: consumer-led demand for added value in life: social needs are manifested as: concern for communication with family, friends, and lovers

· Crisis in economic development Consumption type: self-promotion consumption-led demand: respected by others manifested as: desire for achievement, purchase of luxury goods, snapped up gold

· Economic subprime mortgage crisis Consumption type: Self-assertive consumption Leading demand: Self-value realization manifests itself as: Pursue self, personality, and purchase exclusive products

Marketing is the art of dealing with people, and it is necessary to abide by the principle of communication-the purpose of communication is to understand and solve the problem; before communication, listen patiently: Therefore, "listening" to the problem and "seeing" the situation are the solution. The point is.

Before marketing, observe carefully : The purpose of marketing is to sell goods, so who you sell it to, how to sell it, and why you sell it all need to know before marketing-finding the problem is the key to solving the problem.

As the market becomes more standardized, companies are paying more and more attention to market observations, hoping to study them thoroughly, and then pre - emptively -various databases have emerged at the historic moment. Even the third largest retailer in the United States, Target, can By analyzing the purchase records of female customers, "guessing" which pregnant women-thus observing that women will buy a lot of unscented lotions around four months of pregnancy-thereby digging out 25 items highly related to pregnancy and making " "Pregnancy Forecast" Index-After calculating the expected date of delivery, you will be the first to send discount coupons such as maternity clothes and cribs to customers. 7-11 is the development of "observation" to "look at the sky to eat". The system collects daily weather reports to predict the proportion of fresh food such as bento to sales; and adjusts the air-conditioning temperature in the store according to the outdoor temperature at any time. , And even adjust the background music and greetings in the store, can such thoughtful service not make consumers feel intimate, but touch the consumption?

Observation determines the direction of marketing and determines the direction in which the enterprise can exert its strength . It is like cheetah often lurks before killing prey. After spending hours observing the prey, it is confirmed that it can achieve a success rate of more than 40%. Only struggling to strike, because the cheetah, as the fastest animal on the planet, will consume tremendous physical strength and energy each time it is killed. If one is unsuccessful, it may not be able to restore physical strength for the next hunt. For killing activities, if the hunt is unsuccessful 5 times or the prey is snatched, it may be starved to death. Therefore, cheetahs must "observe" before exerting force, and then decide which prey to invest their energy in a day to obtain a higher return on investment. The same is true for the market. Everyone is not a rich second generation. The limited savings must be invested in a place that can see the return. To learn from the cheetah, there is no chance of winning. It is better to watch more, listen more, and find more opportunities. Win.

Good products must come from subtle life observations : just like the keyboards that everyone uses now, the original typewriter keyboards were arranged in alphabetical order. However, once the typing speed is too fast, certain key combinations are prone to card problems. American Shoals observed this problem and placed the most commonly used letters in opposite directions, which slowed down people's keystrokes as much as possible, thereby solving the problem of stuck keys.

I. Application of Psychology in Commodity Packaging and Publicity Planning

In the design of goods, the "two-factor attribution theory" in psychology can be used to combine the psychological awareness of social perception and social cognition in the promotion planning of goods to allow consumers to retain the goods Making a good first impression can greatly increase the sales of goods. In addition, the propaganda of some "star" companies has formed a brand effect, making many consumers willing to buy their products, because consumers feel that the products produced by such companies are more secure.

Analysis of consumer psychological needs

Maslow believes that human needs guide human behavior, and needs are hierarchical. From low to high, there are five levels of physiological needs, safety needs, love and belonging needs, respect needs, and self-actualization. Consumers at different levels of demand have different requirements for goods. Therefore, any enterprise can be targeted only if it understands and masters the psychology of consumer demand, and can better adapt to consumer requirements and meet different levels of consumption In order to achieve the purpose of promoting the sale of goods, it can survive and develop in the fierce competition. This can be applied to marketing customer analysis surveys.

Most customers will first meet the most urgent needs when purchasing goods, prioritize the most urgently needed goods, and then meet higher-level needs. For example, in the absence of food, priority is given to supplementing food to meet physiological needs; for safety reasons, people will choose a better security area when renting or buying a house. Combining marketing with psychology, and analyzing and considering the needs of customers from the perspective of customers, is conducive to better grasp the dynamics of the market.

Psychology in commodity sales

This link is the actual link of marketing. When selling products, grasping consumer psychology can often achieve better sales results.

The application of certain psychological knowledge is conducive to the communication and exchange between sales staff and customers, timely understanding of customer needs, grasping the customer's attitude, and then adopting certain interpersonal communication skills to change the customer's attitude to their own favorable direction, thereby improving the product Sales.

Communication is the process of transmitting and receiving information. Good communication helps to accurately understand the needs of customers. Communication is based on cognition. Through mutual cognition with customers, we can overcome or eliminate adverse cognitive biases caused by information asymmetry or other reasons, and finally obtain favorable cognitive results, making it easier for customers to accept and buy product. Cognitive bias can be divided into the following categories:

1. Proximate effect. The recent impression in life, it also greatly affects people's perception. When two kinds of information about someone or something are continuously perceived by people, people are more inclined to believe the first kind of information, which is the first impression mentioned above; however, if two kinds of information about someone or something are Information is discontinuous and perceived by people, and the main effect at this time is the recency effect. Therefore, recommendations from acquaintances are usually better than recommendations from unfamiliar salespeople. In addition, irregular visits are more conducive to generating near-term effects than regular after-sales return visits, thereby increasing the sales performance of goods.

In addition, the brand effect of "star" companies has also made customers more inclined to purchase their products. Because they think that buying and using goods produced by such enterprises can be guaranteed. It is also possible to carry out continuous publicity and exposure of the products in a selected period of time, resulting in exposure effects, allowing people to increase their understanding and increase the possibility of people purchasing these products.

2. The primary cause effect. That is, the first impression in life, it has extremely important influence on cognition, and its object is not only people, but also objects or enterprises. If a customer has a good first impression of a salesperson, his chances of buying from that salesperson are greatly increased. Statistics show that most of the time, customers will choose the item they like the most at first sight. This can also understand why the major supermarkets store items separately, and put the best and most expensive items in the place that attracts the most attention of customers. 3. Halo effect. Also known as the halo effect, it refers to the fact that people's cognitive judgments of others are first based on personal likes and dislikes, and then from this judgment to infer other phenomena of cognitive objects. Judging by appearance, circulation has proven to be a typical manifestation of the halo effect. "Brand effect" is also an extension of the halo effect to a certain extent.

By using this effect, you can understand the customer's needs through good communication and communication with customers, and try to avoid and eliminate the customer's unfavorable perception of the product. And establish a favorable understanding of the product, so that customers accept and purchase the product, thereby creating greater benefits. This is currently the sales method commonly used by sales staff. Consumers' purchase behaviors are generated under the influence of certain purchase motivations, which in turn arise from some unmet needs. This need includes both physical and psychological needs. With the continuous improvement of people's living standards and levels of needs, psychological needs play a more important role in purchasing motivation and purchasing behavior than physiological needs. Just as the analysis of Maslow's hierarchy of needs theory, after people's physiological and safe material needs are met, the social needs, the self-actualization and the self-representation of the spiritual needs become increasingly important.

At present, with the improvement of material life, people's values have also changed. People not only pay attention to the use value of commodities, but also pay more attention to the psychological enjoyment and spiritual satisfaction brought by commodities. Today's consumers pay more attention to personal satisfaction, spiritual pleasure, comfort and superiority through consumption. These characteristics indicate that people's purchasing behavior has changed a lot, and purchase hot spots have shifted. The curiosity, the novelty, the name, and the beauty of consumers when they buy goods illustrate this point. ^[1]