Top five psychology principles for creating the best marketing strategy

Marketing has become a modern commerce necessity. We know that it serves a greater purpose than just introducing our products or services to the public. With this increased importance and functions, marketers today need to possess efficient skillsets. However, it all comes down to understanding how and why customers think and act the way they do.

The more you run your business while adopting an outsider’s, that is, a customer’s view, the more chances you have of running a successful business. Before working on complex technicalities of marketing, it would be really beneficial if a marketer understands how these people who are their customers or potential customers operate. This is exactly what the discipline of psychology attempts to explain.

Then the mantra to take your marketing from good to great can be through understanding key principles of psychology. Let’s discuss some of them:

Scarcity Theory

Have you ever browsed a product online and found somewhere written that only a small number of it are left? This is scarcity. It is a psychological principle that is related to the concept of demand and supply. The rarer the product or service, the more valuable and attractive it becomes.

While using this principle in marketing, one has to be careful with framing and words. Claiming that a product is scarce due to popular demand will not be fruitful. But a few products in total is the right way of using this principle.

For instance, Tommy Hilfiger introduces an exclusive line. Such exclusive products appeal to the masses as consumers are interested to establish their unique status with products of higher value. Rare products often become valuable.

Colour Psychology

Different colours have a different and significant impact on us. To understand the psychology of colour, know that colours tend to evoke different emotions. For example, blue establishes trust. This is an interesting and crucial principle that people are not usually aware of. Moreover, colours are a crucial part of marketing as those influence how people behave.

5 Psychology Principles that can be your ultimate marketing hacks

Various colours used in marketing determine the way prospects recognise and value a website, brand or particular asset in subliminal ways. As a result, marketers employ colour psychology to their advantage.

Companies tend to invest a large number of financial resources and time into this while developing their logo and website. Additionally, different levels of contrast also influence user behaviour.

Like the black colour signifies luxury and exclusivity. While white delivers a sense of beauty, purity and cleanliness. Happiness, joy and optimism are promoted with yellow. The best example can be the use of green in natural products. Whenever a company wants to establish its products or services as natural or nature-friendly, green is employed. It denotes and ensures to portray the idea of harmony, nature and balance.

Social Proof Theory

The principle of social proof believes that people make decisions based on the behaviour of others. Marketers use the same principle.

Do you also check reviews before buying any product offline? People are more attracted to buy a company when they see others using and enjoying the experience of a particular product or service. Hence, positive reviews, positive user-generated content among other ways can increase the chances of a potential customer turning to an actual customer. This proves how social proof can be significantly utilised to expand the customer base.

New shoppers lack personal experience with the product. In this case, they turn to current or past customers for their experiences. Even research also shows that costumers believe fellow customers more than what the company says about themselves.

Another great tool to encourage current customers to spread the word about your brand is a referral program. In addition, many companies have gained popularity through their user-generated content campaigns.

5 Psychology Principles that can be your ultimate marketing hacks

For instance, GoPro’s radical UGC campaign introduced many attractive challenges and the content derived from it was easily and effectively used for promotion. Subsequently, it proved very successful and now it adds to its brand loyalty.

Decoy Effect

This is a principle that is almost only applicable to marketing psychology. The decoy effect can be defined as a cognitive bias wherein introduction of a third, less attractive option becomes beneficial for a company. It makes a more expensive product seem like a better option to buy when there are just two options.

In the case of two options, consumers tend to compare the price as well as the quality of the products. However, the third option changes a customer’s decision and makes the more expensive product a more favourable option.

For instance, a news publication company offers three options. The yearly online subscription is available at $50. Whereas the print subscription will cost $180. The last option that gives both print and online subscriptions are available at $200. The least attractive offer, that is, the “decoy” offer which in this case is the print subscription, will automatically make a customer choose the last combination.


Whenever we receive a gift from someone, don’t we make a mental note to give them something back? In psychological terms, this is called the norm of reciprocity.

We can understand this concept’s use in marketing with the following example:

If a company provides free content like ebooks or articles, then the consumer will feel the need to reciprocate. In this way, the company can get the valuable contact information from potential customers.

In simpler words, the reciprocity norm in marketing psychology means consumers often feel somewhat indebted to a company if they offer something free.

Using marketing psychology to boost sales

These are some of the most crucial principles of psychology. All of them can be easily and effectively employed in your business. They work on the well-researched reactions of humans or customers in the commerce world. So in 2021, make an aim to understand these basic concepts in order to understand your consumers better. The motto is to understand marketing psychology and use it to boost your business.

Another psychological theory is the edge effect. It means consumers are attracted to brands that give back to the community. So, if you are a company looking to boost your marketing strategy, then this is the perfect place to be. Expand your customer base and loyalty with Shaktiki’s purpose-driven marketing solutions because who would not love a company that cares!

Get in touch with us today to know about what we can do for your business.