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Cialdini’s Six Principles of Persuasion: Most used for marketing


There are two types of business growth. One is inorganic growth in which businesses grow with marketing tactics and sales influences. Second is organic growth in which businesses are growing without any marketing investments and business development strategies. But most of the businesses come into the inorganic category. The most popular and influential techniques used for persuasion are Social Proof, Liking, Commitment and consistency bias, Authority, Reciprocity, Scarcity, and Incentives.

Social proof

Humans are social by nature and generally feel that it’s essential to conform to the norms of a social group. This means that when it comes to decision-making, we often look around us to see what others are doing, before making our minds up. That's how our spending habits develop and people won't understand their buying power. Every product is designed for the specific pyramid of the world. For example "Starbucks is suitable for people who are spending only five percent of their day's salary" because people can spend only that amount for their coffee.

Liking

It might seem totally obvious, but people are much more likely to be influenced and persuaded by those that they like, than those that they don’t. Given human nature, people are much more likely to like people who pay them compliments and who cooperate with them, than those who don’t. And, unfortunately, given positive evidence in relation to certain benefits of diversity, people are also much more likely to like people who are similar to them, than those who are not. For example "Indian people get more influenced by Bollywood stars and cricketers" that's why marketing campaigns spend money on movies and cricketers.

Commitment and consistency bias 

People always try to maintain their status quo in their comfort zone. people have strong desire to be and to appear consistent with what they have already done. Once people have made a commitment or taken a stand, they feel pressure to behave consistently with that commitment. humans are creatures of habit. warren buffet said, "Chains of habit are too light to be felt until they are too heavy to be broken". that's how brands will earn more money by doing consistency bias. people resist change.

Authority

A young captain in the army once fell down a well by accident. Some soldiers saw this, rushed to his rescue and threw in a long rope. The captain caught hold of it and the soldiers tried to haul him out. But there was a small problem. As soon as the captain neared the mouth of the well, the soldiers would let go of the rope and salute him. The captain would again slip down the well. After this happened several times, the soldiers went and brought a major to help them. The major rushed to the spot, threw in the rope, and started to pull the captain out. But almost as soon as the captain reached the top,   he spotted the major. The captain immediately let go of the rope to salute the major and tumbled back into the well. This funny story is a good reminder of how we sometimes follow authoritative figures blindly without understanding the context.

Reciprocity

If a friend invites you over for dinner, you are almost sure to invite them over to your place for dinner as well. It almost seems as if we were meant to do each other favors and, more important, return them. Indian marriages are the best example of reciprocity.

Have you ever wondered why?

A large part of the reason is that this behavior seems to have strong evolutionary benefits. It’s so pervasive in human culture, it’s believed that there is no society that does not feel reciprocation’s pull. The archaeologist Richard Leakey believes reciprocation is the foundation on which we have evolved: "We are human because our ancestors learned to share their food and their skills in an honored network of obligation."

Scarcity

The scarcity principle of persuasion coined by Dr. Robert cilandini means the rarer or more difficult it is to obtain a product, offer, or piece of content, the more valuable it becomes. Because we think the product will soon be unavailable to us, we're more likely to buy it than if there were no impression of scarcity.

 

All these biases are used in real life and investing.

Definition of Marketing



           


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