Six Marketing Tactics all Boxed Up: Face Four

by | Nov 12, 2012 | Blog, Branding, Marketing Tips, Strategy

Anyone who has studied or has a brief understanding of Economics 101 will recognise the marketing tactics used in the fourth face to the cube of persuasion very quickly. Since you were born, it has been affecting you throughout your life. When you were told you couldn’t have that box of chocolates, when you saw that kid playing with a brand new Rubik’s Cube, or seeing a Ferrari speed past, things you didn’t have or couldn’t have instantly became desirable. The fourth face to the cube of persuasion, the “Law of Scarcity,” is about supply and demand. When there is high demand, or less supply for something, the more rare and valuable it can be. Basic marketing tactics and sales training deals with this idea of scarcity for the potential of influence, which primarily is about creating desire for purchase.

It is no wonder that even at the birth of creation, Adam and Eve couldn’t stay away from the forbidden fruit, despite having the rest of the Garden of Eden to take from. Scarcity drives us crazy. Things are always more valuable and enticing when they are hard to obtain, or the last one on the shelf. By being prohibited from a product, we feel that our freedom is restricted and will experience psychological resistance and fight to restore that freedom.

One great example in history was a time when potatoes were made to be as valuable as gold. During the late 1700s, potatoes were regarded with suspicion, distaste and fear. The French believed they caused leprosy, the Germans used it as animal fodder, whereas the Russians presumed them to be poisonous. Catherine the Great, ruler of Russia, saw there was a great famine, and had high fences erected around her potato fields with guards stationed around to fend off thieves. Of course, the peasants of the town would watch and wonder why the wealthy were keeping the potatoes to themselves. Such an exclusivity of the potato created their desire, that eventually turned potatoes into a staple of the Russian diet (Pratkanis & Aronson 2001).

Catherine the Great’s campaign to transform the potato from something that was barely fit for a dog to eat, to a solution to the Russian famine, is the epitome of branding strategy and marketing tactics in play. By taking advantage of the human psyche in the persuasion process, you can increase the attractiveness of an object, simply by shifting the perception of its scarcity.

The Fourth Face to Persuasion is the Law of Scarcity

Brand and marketing consultants recognise that scarcity sells. We are all aware of the ads that scream: “for a limited time only,” “only available in this store,” or “sale ending soon.” And they work. Some marketing tactics include even deliberately limiting stock.  Since the introduction of the Barbie doll in 1959, there has always been a toy that becomes the central, scarce item each year. We’ve seen the fads of G.I. Joe action figures, Magna-doodles, Furbies, Robot Poo-chi and Meow-chis, Pokemon cards and Tamagotchis.  Due to the rarity of such popular toys, they were frequently out-of-stock. Through brand building and marketing tactics, it has been shown that the threat of potentially losing the opportunity to purchase an item will influence on the decision-making process. This mental trigger can cause tension and unrest and even such great anxiety in people that they will act to prevent this potential loss – even if they weren’t initially interested in the product in the first place!

Think of Romeo and Juliet. If the ancient feud between the Capulets and Montagues did not exist, do you believe Romeo would have been as committed to elope with her? We have been led to believe that love was an uncontrollable process, that these chemical reactions within us were unexplainable – but the impossible truth is that this can be controlled! Playing hard to get is one common relationship dynamic, based off the Rule of Scarcity. If your availability seems limited, you may seem that you are “in demand” or “one-of-a-kind,” increasing the perceived value of yourself. Whilst frustrating to the other party, we know that we must work for love, in order to play the game.

So what can this mean for business? Can you say “limited supply” in your communication? People tend to stay away from empty restaurants and popular clubs will have long lines outside, even if it may be empty inside! It’s about creating the perception of scarcity through artificial queues.

The challenge is to make your brand that forbidden fruit.

Sources: 

Pratkanis, AR & Aronson, E 2001, Age of Propaganda: The Everyday Use and Abuse of Persuasion, rev. edn., Holt Paperbacks, New York, ch. 30.

Westside Toastmasters n.d., ‘The Rule of Scarcity: Get Anyone to Take Immediate Action’ in The Rules of Persuasion, ch. 7, viewed 7 November 2012, <http://westsidetoastmasters.com/resources/laws_persuasion/chap7.html>.

Six Marketing Tactics all Boxed Up: Face Two

by | Nov 5, 2012 | Blog, Marketing, marketing and branding, Marketing Tips, Strategy

As we discussed in the previous blog, one face to the cube of persuasion is the Law of Reciprocity; we like to repay what another person has provided for us. As each face is equally as important and required to box up a sale, the second face to marketing tactics and branding strategy is looking at people’s behaviour patterns or tendencies. You can deliberately shift attitudes and subsequent actions to persuade others to achieve your ends. Or simply recognise when others are using these common sales and marketing techniques on you.

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Six Marketing Tactics all Boxed Up

by | Nov 2, 2012 | Blog, Marketing, marketing and branding, Marketing Tips, Strategy

The amazing thing about many leading novels is that the psychology of marketing is embedded within almost every facet of life.

Whether it is making friends in the sandpit, or making sense of your partner’s ramblings, marketing tactics and branding strategy are about understanding your goals as well as the objectives of your peers, effectively achieving a mutually beneficial solution. This, essentially, is the process of persuasion.

Like a cube, there are six faces to persuasion, each equally important and all equally needed to box up a sale. In psychologist, Robert Cialdini’s book, “Influence: The Psychology of Persuasion,” he discusses the Six Laws of Persuasion. By understanding these laws, you can control how much people influence you, as well as how to use them to your benefit during negotiations – both in the workplace, as well as in personal life.

The First Face to Persuasion is the Law of Reciprocity

Naturally, when human beings are given something, they feel obliged to give something back. We all feel it is right to return favours when they are given to us. Similarly, when Mr. and Mrs. Johnson brought a salad when they are invited over to your last gathering, you may feel the need to arrive at theirs with at least a bottle of wine in hand.

When sponsors give out free drinks at festivals, when you go out for a test drive for a new car, or when a charity gives you a flower, no matter how small a gift may be, these marketing tactics and branding strategy make people feel the need to “return the favour.”

There’s no wonder we hear sayings like “Do unto others as you would have them do to you” or “What goes around, comes around.” It’s about fairness and equality. Give a little to a prospect, and you may end up with a customer.