Leveraging Marketing Psychology For Your Small Business

What is Marketing Psychology? Deakin University defines it as, “Uncovering the reasons behind consumer behaviour. Combine principles from complementary disciplines to unlock creative marketing solutions.” Leveraging a range of psychological principles into your content, marketing and sales strategies can be an effective approach for your small business.  

How exactly can you use Marketing Psychology as part of your strategy? Here are our top 5 suggestions for your business.

1 – Information-Gap Theory

This theory suggests that when someone has a gap in their knowledge and understanding of a topic they are motivated about; they will take action to find out more and fill the “information gap”. 

In marketing, the information-gap theory is used in content and social media marketing. Phrases like “how-to” or “secret tricks” are leveraged to spark curiosity. Users are then inclined to click the link on your content to fill the gap. It is important to note that you should not use these headings to trick consumers into reading your content. You may have heard of “click bate”, once your business has been associated with false and misleading information you lose credibility in the market. 

2 – Social Proof Concept

This is one of the most commonly used theories in marketing, you may even be doing it without knowing! Social proof is a step better than word of mouth recommendations. The theory suggests that people will “join in” if they see others doing it too. In a marketing sense, it often comes in the form of:

  • 5-star Google Reviews or reviews on other platforms
  • Celebrity or influencer endorsement
  • Labelling or tagging an item/service as “best-selling” or “most popular”  
  • Certification labels – such as “This Year’s Winner Of…” or “Certified by…”

Social Proof theory says that the behaviour of others guides our own behaviour. This can see in a physical sense when you see people lining outside a store to get their hands on a new product. Seeing everyone congregated at that location gives ‘social proof’ that the business must be good because everyone is there. This also ties into loss aversion theory.

3 – Noble Edge or Halo Effect 

The Noble Edge Effect refers to businesses who aim to boost their brand’s reputation by taking a particular stance on a cultural, political, environmental, etc. topic or issue. You may have seen large businesses such as Ben and Jerry’s ice cream. This method is not to be exploited as it has serious repercussions if you are found to be in breach of authenticity about whatever cause you to choose to link to your business.

4 – Loss Aversion Theory 

Loss Aversion marketing refers to a business’s framing its offers in terms of loss instead of a gain. A study completed back in 2005 by Novemsky and Kahneman, determined that people strongly desire to avoid losing. In a marketing sense, you may have seen this by businesses creating a sense of urgency around their produce/service. Phrases such as “limited time only” or “Only three left in stock” say if you don’t buy this now, you’re going to miss out. 

5 – Authority Principal 

If you have positioned yourself as an industry expert, you have brand authority. People will come to you for industry updates, tips, tricks and search for your brand or business specifically. You can achieve this through:

  • Blogs on changes in your industry
  • Social media posting notifications
  • Email marketing

Not only does it position you as an expert, but it also builds trust with your clients and customers which has a flow-on effect to social proof theory. This principle also has ties to information gap theory and is straightforward to start working with.

Contact Big Ant Marketing today to find out how we can help you with marketing your small business. It is our normal business practice to utilise marketing psychology in a positive way. We provide affordable digital marketing services in Sydney, Melbourne, Brisbane, Adelaide, Perth, as well as all Australian regional areas.