Marketing and Psychology

With the use of multimedia platforms, marketers finance million-dollar campaigns, hire several creative directors with the hope of eliciting an emotional connection between the consumer and the brand. By igniting an emotional reaction from the customer, the marketer hopes to attract new customers to their brand; convince new consumers to purchase their product, and even convince existing customers to continue their business with repeat purchases. However, much is dependent on the ability to affect the consumer’s behaviour. Marketing involves tapping into consumer psychology. Although marketing campaigns are dependent on the use of psychology, many businesses remain amiss to the benefits of implementing and considering a psychological component to their advertisements. Before we discuss the possible benefits of implementing consumer psychology, it is very helpful to understand what it involves.

In a description of consumer psychology depicted by Dr. Lars Perner, consumer psychology involves several aspects, including:

  1. How consumers think, feel, and differentiate between alternatives, whether it be products, brands or retailers
  2. How a consumer is affected by socio-cultural aspects
  3. Consumer behaviour while making a purchase
  4. How consumer motivation and strategies are used to arrive at a decision, differs between products that vary in price and level of interest
  5. And finally, how marketing campaigns can implement this knowledge to successfully attract the consumer.

With the use of all the aforementioned, it’s very possible that a marketing campaign can reach consumers using psychology. But how exactly can they implement such ideas?

In an article for Fast Company, Robert Rosenthal a distinguished German American psychologist spent the bulk of his career investigating this question and describes five ways marketers can achieve this:

  1. Run emotion ideas. Studies have proven time and time again that marketing messages accomplish more when they paint a picture of what the consumer will achieve with the product, rather than listing its components and features. Doing this the marketer is essentially creating a new memory map tied to an emotion of hope or excitement, making it much easier to remember.
  2. Highlight your flaws. A large part of attracting or maintaining your current client list is the building of consumer trust, and this can be done by being transparent and addressing your product’s shortcomings, instead of trying to deceive the consumer.
  3. Reposition your competition. In an ethical and non-insulting way, reframe how the consumer views your competition. This can be done by highlighting how your product can offer a benefit for a key customer need, thus making your product the main contender.
  4. Promote exclusivity. Understanding human needs is an important benefit; and by understanding human psychology, you can target your customer’s ego by making them feel special if they were to purchase your brand.
  5. Introduce fear, uncertainty and doubt. Underline the possible consequences of their inaction. Loss aversion is an incredibly powerful motivational tool used in psychology that can be used to persuade people to purchase your product if it prevents negative outcomes.

It’s clear that the possible benefits between the intertwining of marketing and psychology are immense. However, there’s also a very fine line between ethical marketing and non-ethical marketing, especially when it comes to implementing subliminal psychological strategies. Several companies in the early 2000s had attempted to subliminally persuade their consumers into purchasing their product by flashing them a picture of the product below the threshold of human awareness.  However, in recent years, the scientific community seems to be in consensus that this strategy simply does not work. Nonetheless, the practice of psychology in marketing should always take into account the ethical boundaries that shouldn’t be crossed when trying to attract customers.

21C marketing strategy and tactics offered by marketing service providers are out of reach for many Canadian small businesses. There is a way through Mentor Partnerships.

In my thirty years of marketing, I have witnessed the transition from 20th century to 21st century marketing strategy and tactics. Strategy and tactics developed in the mid 20th century, and applied through the last quarter of the 20th century, did not work well for many owners of small businesses. The same marketing notions are being applied in today’s business environment—with even less success!

My small business provides professional marketing services to small businesses, and professional and industry associations. I know that a barrier to a successful marketing program is an annual budget for marketing. Many business owners/association executive directors do not understand marketing principles and miss opportunities to develop strategy and carry out tactics—all, that require little cash. Costs associated with personal time and skills development through continuing education, however, can be significant.

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CIMMO and Demand Metric Strengthening Relationship

We are very proud to announce that The Chartered Institute of Marketing Management of Ontario and Demand Metric have strengthened their partnership, and CIMMO’s current and future members have reasons to celebrate. Demand Metric is a well-established corporation that provides over 1000+ tools, training courses and software to help established or entry-level marketers, product managers and consultants operate at their highest efficiency.

Effective January 2020, CIMMO members will have a complimentary pro membership which is valued at 1164 CAD. This membership will enable accessibility to five premium tools and templates per month and 300+ free guides, reports, webinars and a multitude of other resources.  In addition, CIMMO members will have an established digital marketing learning path within Demand Metric University which includes fourteen video modules with three levels of certification exams in an array of topics such as Content Marketing, Blogging for Business, SEO, Online Advertising, Social Media and Demand Generation strategy.  Finally, a 50% discount code for unlimited membership with Demand metric will also be provided to all CIMMO members.

CIMMO is delighted with this collaboration as part of many others to come aiming at providing our valuable members with added value to their membership.

CIMMO Partnering with DX3, Canada’s Biggest Retail, Marketing and Technology Event

CIMMO Members have a special discount to attend the DX3, Canada’s biggest retail, marketing and technology event, and it will take place for its 9th year on March 10-11, 2020 at MTCC in Toronto.

Here are some confirmed speakers :

  • President & CEO, Church+State
  • Vice President of Marketing & Omni Channel Innovation, Toys”R”Us
  • Head of Social Studio, LEGO Group
  • CEO, INDOCHINO
  • Social Media Manager, Volvo Car Canada
  • Director, Digital Strategy, Juniper Park\TBWA
  • Senior Vice President, Customer Experience, Holt Renfrew
  • Managing Director, Canada, HUGE

For more information, visit www.dx3canada.com

What is Neuromarketing, and how can it help your Brand?

You’ve probably heard the term “neuromarketing” recently, as it is becoming a commonly used marketing practice. So what is neuromarketing, and what does it comprise? Neuromarketing as a discipline first emerged in 2002, and it has since gained credibility and popularity within the marketing community. In an article published by The American Marketing Association in February 2019, neuromarketing is defined as “a brand new field of marketing research that employs the principles of neuroscience and the medical technology of brain imaging to learn about how consumers unconsciously respond to advertisements and branding elements.” Neuromarketing employs the study of cognitive, sensorimotor and affective responses to marketing stimuli. To better understand consumers’ decision-making ability, neuromarketing provides scientific insight into their minds. So before we start a discussion on how neuromarketing can improve advertising campaigns, let us understand some of its tools—and implications.

The tools behind neuromarketing

To understand a customer’s preferences, motivations and thinking behind their decision, tools such as fMRI and EEG are used to measure specific neural and physiological signals. This can aid in the overall marketing and product development process.

The fMRI, or functional Magnetic Resonance Imaging, measures brain activity with the use of multiple magnetic fields to measure the changes in blood flow within the brain. When a certain area of the brain is activated or in use, there is an increased level of blood flow to that area. Similar to this, the EEG, or the Electroencephalogram, monitors the electrical activity within the brain using electrodes placed on the scalp. The EEG can easily track brain activity; however, it cannot precisely decipher the area of activation. In addition, tools like eye tracking and pupil dilation can offer a more physiological approach to the measurement. Other physiological measurements include heart rate, skin conductivity and emotional responses.

How can these tools be used to predict the consumer’s rationale?

A recent study has indicated that the neural measurements recorded from a group of 30 consumers, to predict their market-level behaviour, yield more enhanced results over traditional marketing tools. Information collected from fMRI market research has proven to overtake traditional behavioural information when it comes to predicting music sales, and even the persuasiveness of anti-smoking advertisement campaigns.

What should make this exceptionally exciting to marketers is that small sample size, as noted above, of the population is required to predict the response of a larger-scale customer base response. Therefore, although the neuroimaging study could be expensive, it could quickly pay for itself in short order—with promising returns.

In one of the studies carried out by Plassmann et al., fMRI was used to exhibit how the price of a product can establish a placebo effect. In the study, data collected showed that a higher price tag placed on two identical wines resulted in people rating the more expensive wine as “better tasting.” No effect was shown in the primary taste areas, but rather the cognitive areas that perceive taste. Fundamentally, the individual’s preconception of how good the wine should be due to the higher price tag affected their cognitive perception of it. In another study, fMRI data disclosed the timing of which the consumer is presented with the price of a product, significantly alters their purchasing behaviour. When the price was presented at the beginning, it was shown that the decision question posited by the consumer, changed from “do I like this product?” to “is this product worth it?”. This could be very beneficial for consumer researchers in predicting which purchases would profit from seeing the price, first.

What about the ethical implications of neuromarketing?

Although neuromarketing can be a beneficial tool for marketing communications, as it allows for a deeper understanding of the targeted consumer base, ethical concerns still need to be addressed. In the article, “Is Neuromarketing Ethical? Consumers Say Yes. Consumers Say No.”, authored by Jason Flores, Arne Baruca and Robert Saldivar, and cited by the American Marketing Association article, a legitimate concern is raised about brands’ influence through neuromarketing. The authors argue that neuromarketing gives brands a handy tool that can surreptitiously or covertly manipulatively, influence consumers to “push the buy button.”

 So what?

In an era of social and digital marketing, where approximately $400 billion are spent on marketing campaigns, it’s safe to predict the growing influence of neuropsychology in marketing communication, which offers brands a better perspective in understanding consumers’ preferences over their competitors, will become more mainstream. Overall, brands that employ ethical use of this emerging field, will find a more efficient way of capturing their customer’s hearts and minds, which can result in a sustainable competitive advantage over their competition.

Why is Marketing considered an Investment?

When we think of investing, what comes to mind may be in terms of money, time, intellect, or material. Investing may include more than one commitment, like money and time. In general, terms, investing is the act of allocating funds to an asset or committing capital to an endeavour (a business, project, real estate, etc.), with the expectation of generating an income or profit. It can mean putting in time or effort—not just money—into something with a long-term benefit, such as an education[1].

Why, then, is it a difficult decision for entrepreneurs to invest in marketing? Marketing publications suggest a percentage of net revenue of 10% should be invested in marketing products and services. Experience suggests that the percentage is closer to one or 2%; and for micro and small businesses the investment is non-existent, or less than 1% of net revenue, annually. Many entrepreneurs see marketing as a costly activity drawing down profit margins and staff time that could be applied to sales and delivering a product or service to customers. It can be argued that many entrepreneurs mistake sales activity for marketing and have little or no knowledge about what marketing is and what a good marketing program can do to boost sales and revenue.

Marketing is an investment in the future of an enterprise; it is not an unrecoverable expense.

Email Database

Email databases are allowed by Canadian law for direct contact with clients. Canada’s Anti Spam Legislation (CASL) protects consumers and businesses from the misuse of digital technology, including spam and other electronic threats. It also aims to help businesses stay competitive in a global, digital marketplace.[2] Canada’s Personal Information Protection and Electronic Documents Act (PIPEDA) is the federal privacy law for private-sector organizations. It sets out the ground rules for how businesses must handle personal information in the course of commercial activity. The government of Canada suggests that customers will appreciate doing business with an organization that shows respect for their privacy rights. This appreciation can lead to a competitive advantage for your business.[3] Archiving a company email database is easy. It can be stored and built on a free MailChimp account, a spreadsheet, or a Word table. Once the database becomes one of the company’s assets, it can be used in many ways for direct contact with customers to promote repeat sales and to convert prospects to long-term clients.

All MSMEs (micro and small-to-medium-size enterprises) should take advantage of the benefits of free social media networks. If a micro or small business cannot afford a website but has access to the Internet, it should have a business page on Facebook, a company page on LinkedIn, a Twitter account, and an account on Instagram. These are the four most effective networks that can provide many benefits to a corporate website. They are measurable, and they can be easily customized—in myriad ways.

Corporate Website

The costs associated with websites are domain registration, an internet service provider, an SSL (Secure Sockets Layer) certificate used to provide security over a network, and a hosting company. Services offered by many companies like WordPress include free website templates. Someone with limited website development skills can build their own site.

Corporate Identity

It is vital for an MSME to have a modern corporate or visual identity that can be used on email marketing campaigns, social media, and websites, etc. We’re talking about logos with or without corporate descriptors and tag lines that pitch the company message. Over time, such logos become recognized by consumers and add to brand recall. There is a cost to create a corporate identity suite of basic marketing tools that include logo design and stationery (digital and printed). The cost, however, can be little, and within a .05-1% marketing budget.

Why is marketing an investment?

Why is marketing investment in the future of your enterprise? Because with no marketing there are no sales, or changes in the behaviour of people who you want to inform about your products, services, or opinion. There is no story of an enterprise being told. If you are not telling your story, no one will tell it on your behalf, and no one will know about your business. No business—no customers. No customers—no business. Simple! Invest wisely.

Grant Lee, Chartered Professional Marketer

President, AGL Marketing Limited

www.aglmarketing.com

References

[1] (https://www.investopedia.com/terms/i/investing.asp)

[2] Canada’s Anti Spam Legislation: https://www.fightspam.gc.ca/eic/site/030.nsf/eng/home

[3] The Personal Information Protection and Electronic Documents Act: https://www.priv.gc.ca/en/privacy-topics/privacy-laws-in-canada/the-personal-information-protection-and-electronic-documents-act-pipeda/pipeda-compliance-help/guide_org/

Women In Management Network: Connecting Diverse Professionals and Inspiring Emerging Marketers

On Tuesday, October 1, 2019, the Women in Management Network (WMN), part of University of Ottawa’s Telfer School of Management, hosted a #RealTalks Marketing Panel and Discussion networking event for their members at the Impact Hub in the heart of downtown Ottawa. Close to 100 people were in attendance.
Panelists included Dipalli Bhatt from Enghouse, Diana Kolesarova from Fullscript, Aida Alves from the Royal Canadian Mint, Sabrina Nash from the Royal Canadian Navy, and our very own Luiza Sadowski, Chief Communications Officer for CIMMO.
Some of the questions covered by the panelists included day-to-day responsibilities, educational and professional background, career journey—the best advice they could give to someone interested in pursuing a career in marketing, and some of the biggest shifting trends they’ve seen in the industry over the years. A Q&A and networking, complete with refreshments, followed.
All panelists brought their diverse marketing backgrounds and shared valuable insights and experiences that inspired everyone in the room! Many of the attendees, members and alumni of WMN and the Telfer School of Management, had captivating follow-up questions. They were so moved by the discussions, they all exchanged contact info following the panel. What’s more, the WMN received amazing feedback from everyone following the event, and left learning something new.
“This event was truly amazing! I left the venue feeling empowered, committed and inspired to keep chasing my dreams. Thank you to all the panelists for sharing their passion and encouraging us to pursue ours.” – Stella Rivas, Career Director, WMN

CIMMO Celebrates the 2019 Certified Marketers

This summer, CIMMO is celebrating the 2019 Certified Marketer graduates. In a memorable graduation ceremony, including, Certified Marketers, parents, partners, members of CIMMO’s executive team and Board of Directors there to celebrate their respective achievements.

The celebrations began on June 9th with a ceremony highlighting the accomplishments of first-generation of CIMMO’s Certified Marketer students where the 15 graduates walked proudly across the stage at 2019th annual graduation held at the beautiful cottage of Humber College Lakeshore Campus.

CIMMO’s Chair, Dr. Paul Griffin, congratulated the graduates on their achievements indicating how much he and his CIMMO colleagues enjoy the graduation ceremony, he said: “It’s the day which provides the realization of all goals that you have been working hard for and that you achieved today.”

Dr. Paul Griffin urged the new designates to use the tools they have, such as critical thinking skills, for the betterment of the marketing profession. He said, “Make sure that all your professional practices are guided by CIMMO’s code of ethics, leading by example to transform the profession and the world… we live in critical days where the truth has been relative so find out information for yourself, seek the truth and check the facts rather than repeating them.”

The ceremony also featured a speech from MaryJo Tullo on behalf of her graduate cohort. MJ shared her personal success story as a recent graduate and a winner of a couple of DECA Marketing Competitions.

She said: “To all the graduates here today, congratulations! What you have achieved today is a distinction and a testament to your professional competency! To our family, friends and to the CIMMO family, thank you very much for your love, care, and support that led us to one more important day in our lives. Today is the kicking-off of a new journey; the journey of implementing our learning and contributions for a better world through marketing.”

The Certified Marketer designation (CEM®) is recommended for recently graduated or internationally trained marketing professionals that are entering the market, acting in different entry-level marketing roles, such as a contributing role in a major marketing department, or a sole marketing practitioner in a small business. Individuals in this level would have responsibilities such as supporting marketing initiatives, executing tasks passed down from management and operating at the tactical and transactional levels. They often have titles such as Marketing Assistant, Marketing Coordinator, and Marketing Associate.

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The value of people, the fifth “P” of the marketing mix cannot be understated.

Unwittingly, I have become a student of the 5th P of the marketing mix’  people.   A brand’s touchpoint is its people. It is the staff of a hotel that caters to guests and influences the overall customer experience. When engaged in international consulting marketing, it is not unusual to live in a hotel for weeks. Life becomes routine in a hurry, especially when English is a second or third language and you are not accustomed to cultural nuances. Hotel staff become familial.

Dining room staff are trained in the fundamentals of service. Tables are set properly, and cutlery is clean. Wait staff approach at the right time to take a beverage order, present a menu and take the order.

The grounds staff are uniformed or identified in a way that you know they are employees. Courtesy is the rule and that is present in abundance, along with the obligatory smile, and a greeting. Bar staff are well-trained in the handling of alcohol and routines are well-managed to encourage the second round.

Security is present, yet not obvious, and willing to help with accessing services offsite. Basic training is clear all the way to room service and the people who sweep the halls. It is the trivial things, however, that make the experience memorable and exceptional.

North Americans tend to speak English rapidly, and there are numerous accents. Even when hotel staff are well-schooled in the English language, there is often incorrect messaging when English-speaking guests speak too quickly and use slang and jargon common to the society from which they come. Polite staff nod and seem to understand what was said, but they really don’t understand the nuances of the language. English-speaking guests must slow their speech, speak clearly enunciating words, and use words that although simple, are not patronizing. Hotel staff who know how to help guests communicate in a friendly animated way, rate high on my list.

 

Grant Lee, CPM
Marketing strategy and tactics

Taiwo O. Soetan, CPM, earns Ph.D.

 

Taiwo (Tai) Soetan has earned a Ph.D. in Higher Education from the University of North Dakota, Grand Forks, U.S.A. Holders of this degree are prepared for mid and upper-level administrative roles or faculty positions. The Ph.D. program emphasizes research, theory and practice.

Tai was a leader with the now-dissolved Canadian Institute of Marketing. He was Vice-Chair and a Member of Council for approximately 10 years. His degree enhances the skills and experience he already has.

His graduation ceremony was on August 2, 2019, at the university’s summer commencement ceremony.