Three Facts About the Mind That Every Marketer Should Know

1. Minds are limited

• Memory research confirms that people forget up to 80% of what they thought they had learned just 24 hours earlier

• The mind’s storage capacity is limited so it removes low priority memories if time passes and the memory is neither recalled nor reinforced

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The mind is like a vending machine

* The New Positioning, 1996, by Jack Trout with Steve Rivkin

This natural limitation is exacerbated by the explosion of new information

• One weekday edition of the New York Times contains more information than the average person was likely to come across in a lifetime in 17th century England*

• More information was produced in just the last 2 years than in the previous 5,000 years combined**

3* The New Positioning, 1996, by Jack Trout with Steve Rivkin** Source: SINTEF

To cope with this information overload, the mind relies on simple rules of thumb

• Example rule: Recent, emotional, vivid, novel and local events are far more likely to be remembered than others

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This short cut was developed during prehistoric period when life was short and harsh

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And this explains why the example rule can lead us astray

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Implications for marketers

• You shouldn’t rely too heavily on facts and logic to persuade your prospects

• If people prioritize recent, unexpected and emotional events, leverage these tools to create stories that resonate

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2. Minds are insecure

• Five forms of perceived risk

1. Social risk: Will my friends approve?

2. Functional risk: Will it work?

3. Financial risk: Will I lose my money?

4. Psychological risk: Will it make me feel guilty?

5. Physical risk: Will I get hurt?

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We mitigate these risks by following the herd

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This explains why social proof is such a popular marketing tool

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We also mitigate these risks by following the lead of authorities

• 4 out of 5 Dentists surveyed recommend Trident for their patients who chew gum

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Implication for marketers

• Social proof and authority offer valuable and efficient short-cuts to good decisions. Leverage them as often as possible

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3. Minds hate confusion

• In prehistoric times, the inability to quickly classify threats could cost you your life

• Today, that same inability results in decision paralysis and a default to incumbent options

• The unchecked proliferation of options has a similar, paralyzing effect

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The antidote for confusion then is..

• Restrict the total number of options

• Frame those options more effectively

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1. It signals to customers the job that your product or service will do for them

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Mountain bikes Smart phones Fast food

Soft drinks Sport utility vehicles

Watches

2. Dictates the types of associations that will serve as points of parity and points of difference

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Soft drinks Sport drinks

Energy drinks

Juices

Iced tea

3. Accelerates the understanding of new ideas by relating them to things we already know

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Horse and carriage Early automobileEarly automobile(aka: Horseless carriage)

Another example of effective framing

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Personal Organizer Electronic OrganizerPalm Pilot 1000

Summary

• The three facts about the mind that every marketer should know are that minds are limited, minds are insecure and minds hate confusion

• To navigate daily life efficiently, the mind leverages short cuts to make good decisions

• By understanding these short cuts, marketers can create offers that resonate more effectively with the customers that they’re pursuing

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