Marketing Psychology
SKILL.md
skillsmarketingSKILL.md
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# Marketing Psychology & Behavioral Science
You are an expert in applying psychological principles to marketing — not to manipulate, but to understand how people actually make decisions and to remove friction from genuine value exchanges.
## The Psychology Truth
**Marketing psychology isn't about tricks.** It's about understanding that humans are not rational decision-makers. We use mental shortcuts, are influenced by context, and often don't know why we do what we do.
**Great marketing psychology:**
- Removes friction from decisions people already want to make
- Frames value in ways that match how people think
- Builds trust through understanding human nature
- Applies principles ethically for mutual benefit
**Dark patterns to avoid:**
- Creating false urgency or scarcity
- Exploiting cognitive biases against customer interests
- Manipulating vulnerable populations
- Making it hard to cancel or change decisions
---
## Part 1: Strategic Thinking Models
These models help you make better marketing decisions and solve the right problems.
### First Principles Thinking
**What it is:** Break problems down to fundamental truths, then build up solutions from there.
**Marketing application:**
- Don't copy competitors' tactics blindly
- Ask "why?" repeatedly until you find root causes
- Rebuild strategies from what's actually true about your customers
**Example:**
Instead of "we need content marketing because competitors do," ask:
- Why do we need content? → To attract potential customers
- Why that method? → Because they're searching for solutions
- Is there a better way to reach them? → Maybe, maybe not — but now you're deciding consciously
### Jobs to Be Done
**What it is:** People don't buy products — they "hire" them to accomplish a job in their life.
**Marketing application:**
- Focus messaging on outcomes, not features
- Understand the functional, emotional, and social jobs
- Compete against non-obvious alternatives
**Example:**
A drill buyer isn't buying a drill. They're hiring a solution to get a hole in the wall. Your competition isn't other drills — it's adhesive hooks, hiring a handyman, or not hanging the picture at all.
### Circle of Competence
**What it is:** Know what you're genuinely good at and stay within it.
**Marketing application:**
- Don't chase every channel because others use it
- Double down where you have real expertise
- Build moats in your areas of strength
### Inversion
**What it is:** Instead of asking "how do I succeed?" ask "what would guarantee failure?" then avoid those things.
**Marketing application:**
Create an inversion audit:
- What would make this landing page fail? (Confusing headline, slow load, no CTA)
- What would make this campaign fail? (Wrong audience, weak offer, no follow-up)
- Systematically prevent each failure mode
### The Pareto Principle (80/20)
**What it is:** Roughly 80% of results come from 20% of efforts.
**Marketing application:**
- Find the 20% of channels driving 80% of results
- Identify the 20% of content getting 80% of engagement
- Cut or reduce the rest, double down on what works
### Theory of Constraints
**What it is:** Every system has one bottleneck that limits total output. Fix that constraint before optimizing elsewhere.
**Marketing application:**
If your funnel is:
- Traffic: 10,000 → Landing page: 1,000 → Signup: 200 → Paid: 20
Find the biggest drop-off (Traffic → Landing = 90% drop). Fix that before optimizing later stages.
### Local vs. Global Optima
**What it is:** A local optimum is the best nearby; a global optimum is the best overall.
**Marketing application:**
- Optimizing email subject lines (local) won't help if email isn't the right channel (global)
- Zoom out before zooming in
- Sometimes you need to get worse temporarily to find a better path
### Second-Order Thinking
**What it is:** Consider not just immediate effects, but the effects of those effects.
**Marketing application:**
- Flash sale boosts revenue (1st order) but trains customers to wait for discounts (2nd order)
- Aggressive retargeting gets clicks (1st order) but creates brand fatigue (2nd order)
- Always ask "and then what?"
---
## Part 2: Understanding How People Decide
These principles explain how customers actually think and make choices.
### Loss Aversion
**What it is:** Losses feel roughly 2x more painful than equivalent gains feel good.
**Marketing application:**
- "Don't miss out" beats "You could gain"
- Frame value as what they'll lose by not acting
- Risk-reversal (guarantees) reduces fear of loss
- "Keep your current rate" vs "Get a lower rate" — different framing, same outcome
**Examples:**
- "Stop losing 20% of your leads" > "Gain 20% more leads"
- "Don't let competitors steal your customers" > "Get ahead of competitors"
### Anchoring Effect
**What it is:** The first number people see heavily influences subsequent judgments.
**Marketing application:**
- Show higher price first (original price, competitor price, enterprise tier)
- On pricing pages, display tiers from high to low
- "Was $500, now $300" creates anchor at $500
- First quote sets expectation for negotiation
### The Decoy Effect
**What it is:** Adding a third, inferior option makes one of the original two look better.
**Marketing application:**
Classic example:
- Basic: $50 (too limited)
- Pro: $100 (just right — this is your target)
- Enterprise: $200 (way more than needed for most)
The Enterprise tier isn't meant to sell — it makes Pro look reasonable.
### Status Quo Bias
**What it is:** People prefer the current state of affairs. Change requires effort and feels risky.
**Marketing application:**
- Reduce friction to switch (data import, familiar UI)
- Make transition feel safe: "Keep everything, just add this"
- Acknowledge their current solution: "If you're using [competitor], here's why you should stay... or switch"
### Paradox of Choice
**What it is:** Too many options overwhelm and paralyze. Fewer choices often lead to more decisions.
**Marketing application:**
- Three pricing tiers beat seven
- Recommend a "best for most" option
- Filter and curate choices for customers
- "If you're not sure, start here" reduces paralysis
### Default Effect
**What it is:** People tend to accept pre-selected options.
**Marketing application:**
- Pre-select the plan you want customers to choose
- Pre-check opt-ins (where ethical and legal)
- Default to annual billing with clear option to switch
- Make the desired path the path of least resistance
### Endowment Effect
**What it is:** People value things more once they own them.
**Marketing application:**
- Free trials let customers "own" the product
- "Your personalized report" creates ownership before purchase
- Let them customize/configure before buying
- "Your dashboard is ready" vs "A dashboard is ready"
### IKEA Effect
**What it is:** People value things more when they've invested effort in creating them.
**Marketing application:**
- Let customers customize their setup
- Interactive configuration tools increase commitment
- Progress bars during onboarding create investment
- "Build your [thing]" beats "Get a [thing]"
### Zero-Price Effect
**What it is:** "Free" isn't just a low price — it's psychologically different. Triggers irrational preference.
**Marketing application:**
- Free shipping has disproportionate appeal
- "Free tier" vs "$1 tier" — vastly different adoption
- Lead magnets ("free guide") outperform low-priced offers
- The jump from $1 to $0 is bigger than $2 to $1
### Hyperbolic Discounting
**What it is:** People strongly prefer immediate rewards over future ones, even when waiting is more rational.
**Marketing application:**
- "Start saving time today" beats "You'll see ROI in 6 months"
- Immediate small benefits vs. larger future benefits
- Show quick wins in onboarding
- "See results in your first week"
---
## Part 3: Influence & Persuasion Principles
### Reciprocity
**What it is:** People feel obligated to return favors. Give first, receive later.
**Marketing application:**
- Free content builds reciprocal obligation
- Free tools, templates, and resources before asking
- Generous free tiers create goodwill
- "We've put together this custom analysis for you" before sales pitch
### Commitment & Consistency
**What it is:** Once people commit to something, they want to stay consistent with that identity.
**Marketing application:**
- Get small commitments first (email signup, small action)
- "You're someone who values [X]" — identity labeling
- Progress indicators reinforce commitment
- Public commitments (sharing on social) increase follow-through
### Social Proof
**What it is:** People look to others' behavior to guide their own, especially in uncertainty.
**Marketing application:**
- Customer logos (recognition matters)
- Specific testimonials with results
- "10,000 companies use..."
- Reviews and ratings
- "Trending" or "popular" labels
**Hierarchy of social proof:**
1. Celebrities/influencers (if relevant)
2. Experts in the field
3. Users like them (similar company, role)
4. Crowds (pure numbers)
5. Friends/peers (personal network)
### Authority
**What it is:** People defer to experts and authority figures.
**Marketing application:**
- Expert endorsements
- Certifications and credentials
- "Featured in" logos (press mentions)
- Thought leadership content
- Author credentials on content
### Liking / Similarity
**What it is:** People say yes to those they like and those similar to themselves.
**Marketing application:**
- Relatable founder stories
- "Built by marketers for marketers"
- Authentic, human voice (not corporate)
- Show team members and their stories
- Community language and shared values
### Scarcity
**What it is:** Limited availability increases perceived value.
**Marketing application:**
- Limited-time offers (only if genuine)
- Limited spots/seats
- Low stock warnings
- Exclusive access
- "Only 3 left at this price"
**Warning:** Fake scarcity destroys trust. Only use when genuine.
### Unity
**What it is:** Shared identity drives influence. "One of us" is powerful.
**Marketing application:**
- Position brand as part of customer's tribe
- Shared enemy (the status quo, the "old way")
- Community building
- Insider language and references
- "We" vs "You"
---
## Part 4: Pricing Psychology
### Charm Pricing
**What it is:** Prices ending in 9 seem significantly lower than the next round number.
**Application:**
- $99 feels much cheaper than $100
- Works for value-focused products
- The left digit dominates perception
### Round Number Effect
**What it is:** Round numbers feel more premium and are easier to process.
**Application:**
- Use round prices ($100) for premium products
- Use charm prices ($99) for value products
- Premium = round, value = .99
### Rule of 100
**What it is:** For prices under $100, percentage discounts seem larger. For prices over $100, absolute discounts seem larger.
**Application:**
- $80 product: "20% off" beats "$16 off"
- $500 product: "$100 off" beats "20% off"
- Match discount format to price point
### Price-Quality Heuristic
**What it is:** People assume higher price = higher quality.
**Application:**
- Raising prices can increase perceived value
- "Premium" positioning requires premium pricing
- Cheap can signal "not serious"
### Mental Accounting
**What it is:** People treat money differently based on mental categories.
**Application:**
- "$3/day" feels different than "$90/month"
- "Less than your morning coffee"
- "Pays for itself in one deal"
- Frame in favorable mental accounts
### Pain of Paying
**What it is:** Paying feels painful; separating payment from consumption reduces pain.
**Application:**
- Subscriptions vs. per-use payments
- Annual upfront vs. monthly
- Bundling multiple items into one payment
- Credit card vs. cash (digital = less painful)
---
## Part 5: UX & Behavior Design
### Hick's Law
**What it is:** Decision time increases with the number and complexity of choices.
**Application:**
- Fewer form fields = more completions
- One clear CTA per section
- Simplify navigation options
- Progressive disclosure (show more only when needed)
### Fitts's Law
**What it is:** Time to reach a target depends on size and distance.
**Application:**
- Make CTAs large and easy to click
- Important elements should be prominent
- Reduce distance between related elements
- Mobile: finger-friendly touch targets (44px+)
### Zeigarnik Effect
**What it is:** Unfinished tasks occupy the mind more than completed ones.
**Application:**
- "You're 80% done" creates pull to finish
- Progress bars drive completion
- Cliffhangers in content
- Incomplete profiles/setups create tension
### Goal-Gradient Effect
**What it is:** People accelerate effort as they approach a goal.
**Application:**
- Show progress toward completion
- "Only 2 steps left"
- Loyalty programs show progress to reward
- Closer to goal = more motivation
### Peak-End Rule
**What it is:** People judge experiences by the peak (best or worst moment) and the end, not the average.
**Application:**
- Design memorable positive peaks
- Strong endings (thank you pages, follow-up)
- Don't let last impression be negative
- Surprise upgrades or delights
### Mere Exposure Effect
**What it is:** People prefer things they've seen before. Familiarity breeds liking.
**Application:**
- Consistent brand presence builds preference
- Repetition across channels
- Retargeting creates familiarity
- Multiple touchpoints before conversion
---
## Part 6: Cognitive Biases to Know
### Confirmation Bias
**What it is:** People seek information confirming existing beliefs and ignore contradictory evidence.
**Application:**
- Understand what your audience already believes
- Align messaging with existing worldview
- Don't fight beliefs head-on — work with them
### Availability Heuristic
**What it is:** People judge likelihood by how easily examples come to mind.
**Application:**
- Case studies make success feel achievable
- Vivid examples are remembered
- Recent testimonials > old ones
- Make positive outcomes easy to imagine
### Fundamental Attribution Error
**What it is:** People attribute others' behavior to character, not circumstances.
**Application:**
- When customers don't convert, examine your process (not them)
- The problem is usually situational, not personal
- Reduce friction instead of blaming users
### Sunk Cost Fallacy
**What it is:** People continue investing because of past investment, even when irrational.
**Application:**
- In marketing: Know when to kill underperforming campaigns
- In product: Leverage user investment to reduce churn
- "You've already set everything up" → incentive to stay
### Curse of Knowledge
**What it is:** Once you know something, you can't imagine not knowing it.
**Application:**
- Your product seems obvious to you, not to newcomers
- Test copy with people unfamiliar with your space
- Explain like they know nothing
- Avoid jargon
### Survivorship Bias
**What it is:** Focusing on successes while ignoring failures that aren't visible.
**Application:**
- Study failed campaigns, not just successful ones
- The viral hit had 99 failures you didn't see
- Ask "what could go wrong?" not just "how can this succeed?"
### Halo Effect
**What it is:** One positive trait influences perception of other traits.
**Application:**
- Beautiful design = more trusted
- One great feature = assume all features are great
- Strong brand = assume product is good
- First impression colors everything
---
## Part 7: Applying Psychology to Marketing Challenges
### Quick Reference by Challenge
| Challenge | Relevant Principles |
|-----------|---------------------|
| Low conversions | Hick's Law, Friction, Default Effect, Zero-Price |
| Price objections | Anchoring, Framing, Mental Accounting, Loss Aversion |
| Building trust | Social Proof, Authority, Reciprocity, Mere Exposure |
| Creating urgency | Scarcity, Loss Aversion, Zeigarnik Effect |
| Reducing churn | Endowment Effect, Sunk Cost, IKEA Effect |
| Increasing engagement | Goal-Gradient, Peak-End, Commitment |
| Decision paralysis | Paradox of Choice, Default Effect, Anchoring |
| Onboarding completion | Zeigarnik, Goal-Gradient, Commitment |
### Landing Page Psychology Checklist
- [ ] Clear, specific value proposition (not vague claims)
- [ ] Social proof near decision points
- [ ] Loss-framed benefits where appropriate
- [ ] Single, clear primary CTA
- [ ] Risk reversal (guarantee, free trial)
- [ ] Authority signals (logos, credentials)
- [ ] Progress indicators if multi-step
- [ ] Anchoring if showing pricing
### Email Psychology Checklist
- [ ] Subject line creates curiosity gap
- [ ] From name is recognizable (mere exposure)
- [ ] First line hooks (Zeigarnik)
- [ ] Social proof within body
- [ ] Clear single CTA (Hick's Law)
- [ ] Scarcity/urgency if genuine
- [ ] P.S. line (pattern interrupt, high-read area)
### Ad Creative Psychology Checklist
- [ ] Pattern interrupt in first 1-3 seconds
- [ ] Hook leverages curiosity or loss aversion
- [ ] Specific proof points (not vague claims)
- [ ] Clear, high-contrast CTA
- [ ] Social proof visible
- [ ] Addresses objections preemptively
---
## Ethical Application Guidelines
### Use Psychology To:
- Remove unnecessary friction
- Communicate value clearly
- Help people make decisions they'll be happy with
- Build long-term trust and relationships
- Create genuine urgency around real deadlines
### Never Use Psychology To:
- Create false urgency or fake scarcity
- Obscure important information
- Make it hard to cancel or change decisions
- Exploit vulnerable populations
- Trick people into decisions against their interest
### The Long-Term Test
**Ask:** "Will this person be glad they made this decision in 6 months?"
If yes → Apply psychology to help them decide
If no → You're manipulating, not marketing
---
## Questions to Ask
If you need more context:
1. What specific behavior are you trying to influence?
2. What does your customer believe before encountering your marketing?
3. Where in the journey is this touchpoint (awareness → consideration → decision)?
4. What's currently preventing the desired action?
5. What objections or hesitations do they have?
6. Have you tested this with real customers?
---
## Related Skills
- **copywriting**: Apply psychology to marketing copy
- **pricing-strategy**: Apply pricing psychology
- **landing-page-auditor**: Apply psychology to page optimization
- **facebook-ads-creative-tester**: Apply psychology to ad creative
- **ab-test-designer**: Test psychological hypotheses
ReadyMarketing Psychology
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