The fifth p, student version

The fifth in Marketing

1. Hello

2. What is marketing ?

3. What’s Marketing and the 4p’s?

4. Where does Psychology fit in?

5. The future

• 1980-2011: Advertising, Marketing, Commercial Management,

General Management

• 2011-Now: Science, Consulting, Teaching, Blogging

Ronald Voorn

On the Internet since 1994

Modern Companies

Marketing

Recent general insights

Media Fragmentation

Media Time per Day

Media in NL 8+ uur

0

0.5

1

1.5

2

2.5

3

3

2.48

1.05

0.46

0.3

0.18

0.08

Very traditional still

Mobile baby!

Wom > e-WOM

Keller & Fay (2012). Meuter, McCabe & Curran (2013)

2 Systems

Direct the Rider, Motivate the Elephant, Shape the Path. Heath & Heath (2010)

Independent

Uninformed

Copying

20

Adapted from Earls, CopyCoyCopy, Wiley 2015

CONSIDERED

QUALITY IS CLEAR

PRODUCT, FEATURES,

FUNCTION & COSTS

BETTER MOUSETRAP

GUESSWORK

HARD TO SEE DIFFERENCE

HABIT, AVAILABILITY, SALIENCE,

OFFERS

EXPERTS & AUTHORITIES

QUALITY OFTEN HARD TO SEE

RECOMMENDATIONS & USAGE

BY EXPERTS & AUTHORITIES

TRADITIONS & SOCIAL NORMS

SOCIAL IDENTITIES & STRUCTURES

COPYING PEERS

HARD TO SEE DIFFERENCE

W HAT’S POPULAR HERE/NOW

W HAT FAMOUS PEOPLE USE

W HAT I HEAR MORE ABOUT

NOWADAYS…

Informed

Irrational

Weinberger and Walker (2014)

Are there 2 me’s?

We are all connected

Brands are social

Constructs

Psychology in 4 P’s

1. Product

2. Place

3. Price

4. Promotion

Psychology in Product

Govers (2004)

Eyal, N., & Hoover, R. (2015). Hooked: How to build habit-forming products. Penguin Canada.

Need to belong (Baumeister & Leary, 1995; Nadkarni & Hofmann, 2012),

Need to build up social capital (Coleman, 1988; Ellison, Steinfield & Lampe, 2007, 2011) and

Need for self-presentation (Brandtzaeg & Heim, 2011; Leary & Kowalski, 1990; Lecky, 1945; Lin & Lu, 2011;

Nadkarni & Hofmann, 2012; Sirgy, 1982; Taylor, Strutton, & Thompson, 2012).

Homo Economicus ….. Rofl

Skinner 5.0

van Deursen, A. J., Bolle, C. L., Hegner, S. M., & Kommers, P. A. (2015). Modeling habitual and

addictive smartphone behavior: The role of smartphone usage types, emotional intelligence, social

stress, self-regulation, age, and gender. Computers in Human Behavior, 45, 411-420.

The biggest Skinner Box evah !

Psychologie in Product

Psychology is the key

Psychologie in Product

http://youtu.be/ZwlXRi8JEDc

Stefan Floridian Waters

HearMusic

iPsychology, endowment effect

Psychology in Product

Kahneman, D., Fredrickson, B. L., Schreiber, C. A., & Redelmeier, D. A. (1993).

When more pain is preferred to less: Adding a better end. Psychological science, 4(6), 401-405.

Psychology in Place

Psychology and Price

Anchoring

Strack and Mussweiler (1997)

1) Did Mahatma Ghandi become older than 140 ?

2) At what age did he die?

1) Did Mahatma Ghandi become older than 9 ?

2) At what age did he die?

67/50

Poundstone, W. (2011) Priceless: the Myth of Fair

Value (and How to Take Advantage of It), Hill & Wang

Upper right, Anchoring &

Bracketing

4,85 Max 8 percustomer

Decoy Effect

Psychology in Promotion

Everything is Psychology

1. Brand

2. Personality

3. Groups

4. Cultures

5. Media behaviour

6. Decision models

7. Heuristics

Elaboration Likelihood Model

Cacioppo, J. T., & Petty, R. E. (1983). Central and peripheral routes to persuasion:

Application to advertising. Advertising and consumer psychology, 3-23.

WATtageDimmer/Switch

Voorn, R. (2013). What’s this thing called Love? Exploring the relationship between brand love, personality,

and the propensity to anthropomorphize. UTwente

The endowment effect (Thaler 1980), also known as “status quo bias” (Samuelson and Zeckhauser 1988)

https://www.warbyparker.com/home-try-on

Cialdini, R. B. (1993). Influence: The psychology of persuasion.

Tversky, A., & Kahneman, D. (1981). The framing of decisions and the psychology of choice. Science, 211(4481), 453-458.

“Use of Psychology in marketing

leads to better results”

Gaze

Cueing

Bayliss, A. P., & Tipper, S. P. (2006). Predictive gaze cues and personality judgments: Should eye trust

you? Psychological Science, 17, 514–520.

Tx to Bart Schutz

Visual Cueing

Don’t let the bedbugs bite

Trends

Digital for sure

Hot! personalisation+ psychology

Youyou, W., Kosinski, M., & Stillwell, D. (2015). Computer-based personality

judgments are more accurate than those made by humans. Proceedings of

the National Academy of Sciences, 112 (4),1036–1040.

My Personality project

4 mio profiles, 6 mio test resultshttp://www.psychometrics.cam.ac.uk/productsservices/mypersonality

200 Tweets Michelle Zhou IBM

Smart Data

Automated buying soon for all

media

Other: Wearables – Microsoft

Hololens

https://www.youtube.com/watch?v=QRQv74J7oSk

Mobile Targetting 3.0

Apple & Google driverless cars.

Why ??

50 Minutes extra media time =

+ $ 5,6 Billion per day

Always ON: but for whom?

http://www.marketingfacts.nl/berichten/apple-watch-gaat-ons-socialer-maken

Future Disruption

Millward Brown (2015)

Use of psychology leads to better sales

Even the toilet lady knows !

Thank you !