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Google Ads: What You Should Know as a Growth Marketer?

Let’s not waste time by giving an intro. If you don’t know what it is and are looking for something from scratch, do a Google search on “What are Google Ads?” and come back.

This is the part -1 of the series.

Attention!!

Proceed with caution when someone (it can be a YouTube video or Instagram Ad) guarantees specific results with Google Ads. If they’re promising to double your traffic, be sceptical. If they’re promising this overnight, it’s time to block that person.

Google Ads Post content — akhilpillai.com

Understanding Google Ads Varieties

Google offers different types of Ads, each designed for various marketing goals. Understanding these can help you make informed decisions about your advertising strategy.

Search ads: These ads appear at the top of Google search results pages when someone searches for a keyword that is relevant to your business. Search ads are a great way to reach people who are actively looking for what you have to offer.
Display ads: These ads appear on websites that are part of the Google Display Network. Display ads can be images, videos, or text ads. They can be used to reach a wider audience than search ads, but they may not be as targeted.
Video ads: These ads appear on YouTube and other video-sharing websites. Video ads can be a great way to reach people who are interested in watching videos about your products or services.
Shopping ads: These ads appear when someone searches for a product that you sell. Shopping ads show the price of your product, as well as your product image and rating. They are a great way to reach people who are ready to buy.

The Influence of Google Ads: Data Insights

Despite the belief that paid results are not clicked on, data suggests otherwise. In fact, 67% of searches with high commercial intent lead users to click on a paid ad. When users are in the research phase, they tend to choose organic search results. However, when they’re ready to make a purchase, they opt for ads.

A study by HubSpot found that paid search ads can generate a return on investment (ROI) of up to 200%. This means that for every $1 you spend on paid search ads, you can expect to generate $2 in revenue.

The Trio Behind Google Ads

Google Ads operates with three key players:

Googler (users): This is the person who is searching for something on Google. When they type in a keyword, Google will show them a list of results, including both organic results and paid ads.
Advertiser (businesses): This is the business that is paying for their ad to appear in the search results. They can choose to bid on specific keywords, and they will only be charged when someone clicks on their ad.
Google Machine (the system): This is the system that powers Google Ads. It takes into account a number of factors, including the keyword bids, the quality of the ad, and the relevance of the ad to the search query, to determine which ads will appear and where they will appear.

What is Google Ads bidding?

Imagine you have a lemonade stand. You want to sell as much lemonade as possible, so you decide to set up a lemonade stand near a busy street. You know that people who are driving by are more likely to stop and buy lemonade, so you decide to bid on the right to have your lemonade stand in that spot. The higher you bid, the more likely you are to get the spot.

Google Ads works in a similar way. When you create a Google Ads campaign, you’re bidding on the right to have your ad show up when someone searches for a keyword that you’re interested in. The higher you bid, the more likely your ad is to show up.

There are a few different ways to bid in Google Ads. You can set a maximum bid, which is the highest amount you’re willing to pay for each click. You can also set a daily budget, which is the maximum amount you’re willing to spend on your campaign each day.

Google Ads will use your bids and budget to determine when and where your ads show up. If you’re bidding high enough, your ad may (stress here, MAY or May Not) show up at the top of the search results page. Or, if you’re bidding on a specific keyword, your ad may show up when someone searches for that keyword.

How does Google Ads Bidding Works

Google Ad Ranks

Google Ad Rank is a number that determines where your ad shows up on Google Search. It is calculated using your bid amount, the quality of your ad, and the competitiveness of the auction. The higher your Ad Rank, the higher up your ad will show.

Imagine you and your friends are playing a game of musical chairs. The first person to sit down in a chair wins. The chairs are like ad positions, and the person with the highest Ad Rank is the first person to sit down in a chair.

Your bid amount is like how fast you run to the chairs. The higher your bid amount, the faster you run.

The quality of your ad is like how well you can sit in a chair. The better your ad, the better you can sit in a chair.

The competitiveness of the auction is like how many other people are playing the game. The more people playing, the harder it is to win.

Big Question: How you determine Quality of your Ad?

Quality Score

Google won’t tell you your Ad rank, but Google tell you the Quality Score. Quality score is a measure of how relevant and well-written your ads and landing pages are.

It is calculated based on three factors:

Click-through rate (CTR): This is the percentage of people who see your ad and click on it.
Ad relevance: This is a measure of how closely your ad matches the search terms that people are using.
Landing page experience: This is a measure of how good the experience is for people who click on your ad and land on your website.

Relevance Matters: Organic vs. Paid Search

Whether it’s organic search results or paid ads, relevance is highly valued by Google. If your paid ad is more relevant to the search, it will rank higher, resulting in a top spot and lower cost per click. Google employs this strategy to build user trust.

Relevancy is the first key to Quality Ads.

In conclusion, Google Ads bidding works by determining the position of your ad on Google Search based on factors such as your bid amount, the quality of your ad, and the competitiveness of the auction. Your Ad Rank, which is calculated using these factors, determines where your ad will appear.

Can Google Ads be Profitable

To answer this question, you need to answer few other questions.

Before you decide to invest in Google Ads, ask yourself:

Can you afford the initial costs?

You’ll want to allocate at least $1,000 – $1,500 per month as a minimum starting point, although I recommend a minimum budget of $2,000. If you can comfortably meet this expense, go ahead!

Identifying Your Business Objectives

Before initiating a Google Ads campaign, it’s essential to pinpoint your business goals. Ask yourself the following questions:

Do I know my close rates?
Do I understand how many leads I need to make a sale?
Do I know how many leads I need each month to turn a profit?

By determining your specific objectives, you can better assess the potential success of a long-term Google Ads campaign.

Assessing Your Website’s Quality and Responsiveness

Your website needs to be fast, mobile-responsive, informative, and user-friendly. Ask yourself if you’re ready to handle a surge in traffic.

Can you respond to customer calls promptly?
Is your sales team trained and ready to handle inquiries?
Is your inventory sufficiently stocked for an increase in orders?

Defining Your Audience

Understanding the size and location of your audience is also crucial. If you operate in a rural area with a small local population, Google Ads might not be the best choice for your business due to the limited audience size.

If you have proper answers for all these question, well, Google Ads will work for you. However, to make your Google Ads campaign profitable, it’s crucial to be prepared for competition unless you have a monopoly in the market.

Success in Google Ads requires a proactive approach to outperform competitors and stand out in the crowded digital landscape.

Gearing Up for Competition: Core Metrics of Google Ads

Before launching our campaigns, let’s explore the core concepts of Google Ads. (Ensure your ad spend is competitive enough to get the necessary clicks; otherwise, Google Ads may not yield the expected benefits.)

Understanding Conversions

In the context of Google Ads, conversions refer to the actions you want your website visitors to take.

Fill out a form
Make a purchase
Download a document
Sign up for a newsletter
A Call

Google depends heavily on conversions to determine what’s working, and everything revolves around this metric.

If you don’t define what a conversion is for your business, Google can’t optimise your campaign for conversions, leading to ineffective ad spending.

Therefore, you need to track every potential conversion action on your site, irrespective of its significance. These actions serve as predictive indicators of intent.

Remember, the goal is conversions. The focus should be on generating revenue, directly tied to conversion actions.

The Role of Keywords

Keywords are vital in Google Ads. They’re like labels that users use to search for answers and solutions. As advertisers, we use keywords to organise, categorise, and design our ads. We include keywords in our landing pages and use them to signal to Google when we want our ads to show up in the SERPs.

Bear in mind, the words you use to describe your product or service may not be the same as the words your potential clients use.

Therefore, use tools like Answer the Public, Keyword Planner, Spyfu, or Ahref free keyword generator to find out what customers are searching for in relation to your industry.

Keywords and the Sales Funnel

The Google Ads sales funnel is a model that helps businesses understand how potential customers move through the buying process.
It is divided into three stages:

Top of the funnel – Discovery: This is the stage where potential customers are searching for information about your industry, or they may be comparing different products or services.
- Here, the goal is to introduce your brand and generate interest. In Google Ads, this can be achieved through targeted display ads or video ads that reach a wide audience. The purpose is to attract users and make them aware of your offering, planting the seed for future consideration.
Middle of the funnel – Intent: This is the stage where potential customers are starting to consider your business as a possible solution.
- At this stage, the goal is to nurture these prospects and provide them with valuable content that addresses their needs and concerns. In Google Ads, this can be done through targeted search ads that appear when users search for relevant keywords related to your offering. The aim is to capture their attention, provide useful information, and establish your brand as a reliable solution.
Bottom of the funnel – Action: This is the stage where potential customers are ready to buy. They may be filling out a contact form, making a purchase, or scheduling a consultation.
- The goal is to provide them with a compelling offer or incentive to convert. In Google Ads, this can be achieved through highly targeted search ads, remarketing campaigns, or shopping ads that display specific products or promotions. The aim is to prompt users to click, make a purchase, sign up for a service, or take any desired action that leads to a conversion.

Not All Keywords Are Equal: Craft an Offer

Everything you present to your visitor should be an offer. So, you should select your keywords accordingly.

The search terms you bid on should allow you to present an offer
- For example, if you’re a clothing retailer, bidding on search terms like “women’s dresses on sale” or “discounted men’s shirts” allows you to present offers that cater to specific customer interests or needs
The ad copy you use is an offer
- For example, an ad for a fitness center might include copy like “Get in shape with our state-of-the-art facilities and expert trainers. Sign up now for a free trial!” This ad copy presents an offer of a free trial, enticing users to take action and engage with the fitness center.
Your landing page should include a very clear and compelling offer
- For instance, if you’re running an ad for a software product, your landing page could highlight a limited-time offer such as “Get 50% off your first year subscription. Sign up today!” This offer creates a sense of urgency and provides an incentive for visitors to complete a purchase or sign up.

Another thing to keep in mind is don’t stuff your AdWords with “You”.

Too often, we see advertisers essentially introduce themselves in their ad copy and landing pages, rather than inform the user what they will do for them.

What should the visitor do?
What’s the offer?
And why is it valuable?

Your credentials mean nothing without a clear understanding of how you will directly change the customer’s life.

Crafting Your Offer

Make sure your offer matches the search
Always be closing
Value based: cheaper isn’t always better

4. Every step of your conversion process is an offer (moving them toward the next step)

Awareness: “Discover the truth about the environmental impact of your cleaning products with our informative articles and videos.”
Interest: “Dive deeper into the world of eco-friendly cleaning with our comprehensive guide: ‘Green Cleaning: How Eco-Friendly Products Stack Up Against the Rest.'”
Consideration: “Ready to make the switch? Enjoy a 10% discount on your first order of our eco-friendly cleaning products. Use the code ‘GREENHOME’ at checkout.”
Conversion: “You’re just one click away from a cleaner, greener home! Add our Eco-Friendly All-Purpose Cleaner to your cart today.”
Retention: “Welcome to our Green Home Club! As a member, you’ll enjoy monthly discounts, exclusive content, and early access to our new products. Join today and start saving!”

5. Your core offer isn’t always the right offer (ascension)

This refers to the idea that the product or service you’re best known for (your “core” offer) isn’t necessarily what will attract every customer. Sometimes, a customer might be more interested in a related product or an upgraded version of your product.
- For example, if you sell eco-friendly cleaning products, your core offer might be an all-purpose cleaner. However, a customer might be more interested in a specialized kitchen cleaner or a bundle of multiple products. This is where the concept of “ascension” comes in – you start with your core offer, then you offer more advanced or premium products as the customer becomes more engaged.

Features vs. benefits (features tell, benefits sell)

This is a common principle in marketing and sales. Features are factual statements about a product while benefits explain how the product solves a problem.
While it’s important to include features in your ads, it’s the benefits that really convince customers to make a purchase. In other words, don’t just tell customers what your product is or does – tell them why it matters to them.
- For example, instead of saying “Our eco-friendly cleaning products are made without harmful chemicals,” you could say “Experience a cleaner, safer home with our eco-friendly products – no harmful chemicals, just powerful cleaning power.”

This is the first part of this series on Google Ads. To Read further click here.

Understanding Customer Psychology For Email Marketing

The Product Is the Ultimate Salesperson

Let’s say you’re about to start an email marketing campaign. Always remember, it’s your product that should do the talking. What really matters in marketing emails is your product and the image you build around it.

Here’s another key point – email marketing is the cheapest form of advertising, and advertising is all about making sales.

It is essential to acknowledge that advertising’s core purpose is to drive sales. Think of it as amplified salesmanship, where you converse with thousands instead of one. Some people spend up to $10 for each word in an ad. So, each ad should be like a super salesperson. Hence, every ad should be a super-salesman.

If a salesman’s mistake can cost a little, an advertiser’s or email marketers mistake can cost a thousand times more. So, be careful and precise. Bad salesmanship may hurt a small part of your business, but bad advertising affects all of your business.

An image representing Different Marketing Channels including email marketing — Different Marketing Channels

Beyond Literary Skills: The Subtle Art of Selling

People often mistake email marketing or copywriting for fancy writing. But fancy writing isn’t really helpful here. Like a good salesperson, an ad needs to explain things briefly, clearly, and convincingly.

Here’s a simple way to decide on your advertising.

Ask yourself – “Will this help sell my product?” “Will this help me if I were talking to a buyer?” Honest answers to these questions can help you avoid many mistakes. But if you’re just trying to show off or do things to impress yourself, you’re probably not going to get people to spend money.

Fancy slogans or clever phrases might not work either. If you can’t imagine these impressing a customer in person, don’t rely on them to sell in print or emails.

Imagine this – “Buy my product. Give me your business. Give me your money.” Do you think that will work?

The best ads or cold emails don’t ask people to buy anything. They don’t even mention the price. They don’t say where you can buy the product. Good emails focus on how the product can help the customer. They provide useful information and highlight the benefits.

Does this all sound too cliched gyan? Let’s dig deeper then.

Some Scenarios: Build Trust

Yes, you’ve heard it all before, these are some randome advices all marketing gurus preach. Okay, let me share some examples to give you a better insight.

Imagine a manufacturer of brooms in India who deploys a force of around 2,000 salespersons door-to-door. Success seems improbable, but their approach surprises. Instead of asking for a purchase, they offer a broom, saying, “We’ve brought this for you. Please choose one from these samples.” The excitement of receiving something sparks interest, and in the process, the householder spots several brooms they wish to have. This unexpected service compels them to place an order.

How Sellers Utilizes a Mobile Business Model

Let’s take another example from India, a company distributing chai and other supplies via carts across numerous cities. A representative drops off a small pack of chai, saying, “Give our chai a try. I’ll return in a few days to see how you liked it.” When he returns, he doesn’t ask for an order. Instead, he offers a useful kitchen tool, not for free, but as a bonus that can be paid for by purchasing more chai. Service always takes the front seat.

I heard a story that a European manufacturer of electric sewing machine motors struggled with advertising. Following expert advice, they ceased direct sales attempts and offered to send a motor to tailors in Savile Row (London) via any dealer for a week’s trial. Along with the motor, a guide would demonstrate its operation. Their ad simply said, “Let us assist you for a week, without any cost or obligation.” This irresistible offer led to sales in nearly nine out of ten trials. (Maybe this won’t work in India, considering Indian civic sense and ethics 😉 )

As someone who has worked in email marketing, I can tell you that the real test of a marketer lies in selling products through cold emails. It’s a skill one must master for success because for any startup, cold emails remain the most affordable and accessible method of marketing.

However, before diving into “the techniques of email marketing”How to Draft Cold Emails”, it’s crucial to understand the psychology behind marketing. The successful marketer needs a firm grasp of human psychology. The more insights you have into this, the better your results.

Marketing and Psychology: A Powerful Combo

You need to understand that different triggers create different responses, and this knowledge is essential for effective email marketing and overall marketing success.

Like in Physics, certain effects lead to certain reactions, and use those reactions to increase results and avoid mistakes.

Just like human nature remains consistent, the basics of psychology never change. They are as valid today as they were during the times of Caesar.

For example, we’ve learned that curiosity is a powerful motivator. We make use of it whenever possible.

Consider the scenario of popcorn in a cinema, a staple in India and around the world. Initially, popcorn was just another snack.

But what made it so popular?

The curiosity sparked by seeing kernels transform into fluffy, crunchy snacks right in front of your eyes, hearing the loud “pop” sound, and the captivating aroma filling the air. “Kernels bursting into larger than life sizes,” “Sounds like tiny fireworks,” “Each kernel undergoing a mini explosion.” This sense of wonder played a significant role in making popcorn the go-to movie snack. Now it became a habit and standard at movie halls.

Stay Curious and Build Loyal Customer Base

So your headlines, should bring some curiosity. But in my experience, most services highlights the affordabaility in the headline.

Understand that low price isn’t always the best way to appeal to customers. Americans, for instance, are big spenders. They like good deals, but they don’t necessarily go for the cheapest. They take pride in affording the best. On the other hand, in India, terms like “Free,” “Cheapest,” and “Most Affordable” work better. Here, the decision-making process often begins with the price. So, tailor your approach to suit your target demographic.

The Effectiveness of “Pay After a Week” Strategy

Now, consider this. Many businesses have advertised, “Try it for a week. If you don’t like it, we’ll return your money.” Then came an innovative idea – sending products without asking for any money upfront, and saying, “Pay in a week if you like it.” This proved to be far more appealing. (Demography matters here)

As one marketing expert explained it,

“Two men came to me, each offering a horse. They both made the same claims. They were good, gentle horses, safe even for a child to drive. One man said, ‘Try the horse for a week. If my claims are not true, you can have your money back.’ The other man said, ‘Try the horse for a week,’ but he added, ‘Come and pay me then.’ Naturally, I chose the second man’s horse.“

The power of perception plays a significant role in decision-making. Imagine you have five products that are identical in every way. Now, if you ask five people to choose one, they might each pick a different one. But, here’s a twist: if you highlight certain features or qualities in one product, everyone’s attention is drawn to it.

And what happens then? All five people are likely to choose that one product. It’s all about how you present it. This is a key strategy to remember when drafting marketing emails. You have to highlight the right features to make your product stand out. There is a great deal in mental impression.

Specificity: A Key to Impressiveness

Let’s move on to the next crucial aspect – being precise and explicit.

There’s a stark contrast in the impact of two statements taking up the same space, where one is clear-cut and the other is vague. If there’s a point to be made, ensure it lands with maximum impact.

A retailer might mention, “We’ve cut down our prices,” yet it might not stir much interest. However, when they say, “We’ve slashed our prices by 25%,” the announcement hits home.

Consider a marketer selling affordable women’s wear through mail order. For years, his tagline was, “Lowest prices in India.” Competitors soon followed suit. Then he started promising to beat any other seller’s price. His competition copied this strategy too. Over time, these claims became generic, losing their allure. But with some wise guidance, he switched his approach, stating, “We only make a net profit of 3%.” This concrete statement made an impact. Given their scale of operations, it was clear their prices were rock bottom. No one could expect a business to run on less than a 3% profit. The following year, their sales surged dramatically.

The most talked-about gadget of the year

Consider the marketing of smartphones. “Fast performance,” “Long battery life” “50 MP Camera” Each brand had the same chance to win over customers. Then a new brand came along. They were up against brands that everyone already liked. They did something different though. They said, “Look at our Glyph interface, It’s unlike anything we’ve seen before (a supporting image)” “We believe in windows, look at our transparent design” “Faster than ever before. Our phone is the first in India to feature the SD 778G+ processor and cleaner Android software.” This straight-to-the-point strategy got them a lot of success quickly in this tough market.

Xiaomi’s 12 Lite is a better phone than the newly launched brand in terms of features and price. However, the new brand has been able to gain a foothold in the Indian market due to its strong marketing campaigns.

The Challenge of Changing Habits

I read somewhere we humans are slaves of our habits.

Shifting people’s habits is a tough task, and it can cost a lot. Before you jump into such an endeavour, give it a serious thought.

Consider this: to promote shaving soap among the traditionally bearded farmers of Punjab, you’d first have to change their long-standing tradition of sporting beards. The costs associated with such an effort could be sky-high. Yet, there are countless marketers who try to pull off similarly ambitious tasks. They plunge in without adequate research, tracking results haphazardly without truly understanding them.

However, let’s not conclude that altering habits and penetrating markets is an impossible task.

How Nestle got Japan to drink Coffee

I recall an intriguing tale from the book ‘Culture Code’ by Clotaire Rapaille, it talks about how Nestlé successfully made a nation of tea drinkers fall in love with coffee.

In the 1970s, they were struggling to sell instant coffee in Japan, a country with a deep-rooted tea-drinking culture.

So, what do you do when your target market doesn’t have a cultural imprint of your product? You create one.

To crack this nut, Nestlé hired a French marketing consultant named Clotaire Rapaille.

Rapaille conducted in-depth three-hour sessions with ordinary Japanese folks to try and understand their cultural relationship with coffee.

Nestlé decided to change their approach. Instead of persuading Japan to embrace coffee, they began to produce coffee-flavored (caffeine-free) desserts for children.

Kids universally adore candies and desserts, and Japanese children were no exception – there was no cultural barrier in this regard. Fast-forward fifty years, and Japan now spends $22 billion on instant coffee, more than any other country.

Let’s Wrap It: Email marketing & Psychology

From the outside, advertising might seem straightforward. Many individuals assert their expertise in it, leading to a lot of advertising work being awarded based on personal preference.

But the real experts understand that the complexities involved in advertising are as substantial as those in constructing a skyscraper. A lot of these challenges lie in laying a robust foundation.

The psychology behind marketing is full of insights, and its a foundation. Some marketers have a natural understanding of these principles. Others learn them through experience. However, the most efficient way to learn is from others. When you observe a successful strategy, make a note of it, and when the right opportunity comes, put it into action.

These insights form the bedrock you need to establish before launching your email marketing campaign. Read more insights on Buying Behaviours and Psychology in decision making here.

Somatic Marker Hypothesis and Buying Behaviour

Have you ever heard the word “Somatic marker” before? Maybe No! But have you ever wondered why you choose one brand over another? Whether it’s picking a Samsung TV over a Xiaomi TV or reaching for Chocolate flavour instead of a Strawberry flavour, there’s something going on in our heads that influences our decisions.

Somatic Markers helps us making Decisions

Let’s dive into the fascinating world of our minds and explore how our brain creates somatic markers that shape our buying choices.

Connecting the Dots: Somatic Marker Hypothesis and Decision Making

Imagine you’re standing in the supermarket, eyeing two brands of cereal. They’re nearly identical in terms of ingredients and price, yet you feel a slight tug towards one. You can’t quite explain why, but you find yourself reaching for that particular box. This, in essence, is your somatic markers at work, subtly nudging your decision-making process.

Antonio Damasio, a renowned neuroscientist, proposed the somatic marker hypothesis. He suggested that our decisions aren’t just the result of rational thought, but are significantly influenced by emotional responses or “somatic markers” linked to our past experiences.

Somatic markers are like mental bookmarks or shortcuts that our brain creates based on past experiences of reward and punishment. They link together concepts, sensations, and emotions to guide us towards decisions that lead to the best outcome. For example, if you once burned your fingers touching a hot oven, your brain forms a somatic marker associating the concepts of “oven,” “hot,” and “pain.” This marker helps you avoid similar situations in the future. It’s active in virtually every choice we make.

Somatic Markers: The Invisible Puppeteers of Buying Behaviour

In the world of marketing, understanding consumer buying behavior is crucial. And here’s where the somatic marker hypothesis throws a curveball. Marketers have realized that they can no longer just focus on providing logical arguments about why their product is superior. They need to appeal to the somatic markers of their customers.

Let’s consider car sales. A marketer can talk all day about the technical specifications of a car – its mileage, horsepower, and safety features. But what if the customer had a past positive experience with a particular brand? That emotional memory, the somatic marker, might pull them towards that brand despite the logical arguments.

Let’s consider another example of shopping for a digital camera. With a sea of options, many of which have similar features, why do we tend to gravitate towards Japanese brands? our brain has formed new markers that link Japan with technological excellence. This association leads us to choose a Japanese camera, even if we can’t fully explain why.

Companies and advertisers are aware of the power of somatic markers, and they actively work to create them in our minds. Take TV commercials, for instance. Tires from different brands may seem identical, but you find yourself drawn to Michelin or MRF (Thanks to Sachin). This preference has little to do with the tires themselves. Instead, it’s the somatic markers carefully crafted by the brand.

Somatic Markers: Creating Emotional Landscapes in Marketing

Antonio Damasio’s somatic marker hypothesis has reshaped how we think about consumer decision-making processes. Businesses are now designing marketing strategies that don’t just engage the mind, but also the emotions. They strive to create positive emotional experiences that plant favorable somatic markers in the minds of consumers.

Take, for example, Coca Cola’s famous “Share a Coke” campaign. By personalizing each bottle with a name, Coca Cola didn’t just sell a beverage – they sold an experience. When a customer saw a Coke bottle with their name on it, they experienced a moment of delight that was likely to become a somatic marker, subtly influencing future buying decisions.

Advertisers can create somatic markers relatively easily and inexpensively. They aim to surprise and shock us by associating two seemingly unrelated elements. These shocking associations make a lasting impression on our brains, making the brand more memorable.

Consider the case of Andrex, a brand of British toilet paper that outsells its rival Kleenex in the United Kingdom. Both brands have similar quality and price, and they spend the same amount on TV ads. However, Andrex’s success can be attributed to its use of a small Labrador puppy as a mascot. The puppy becomes associated with growing families and toilet training, creating a rich set of conceptual links in consumers’ minds. When faced with a choice, consumers may “feel” that Andrex is somehow better, even without consciously recalling the ads.

Let’s Wrap it: Somatic Markers

Understanding the role of somatic markers in decision making opens up a new frontier in marketing. It’s not just about appealing to logic, but about creating emotional experiences that can guide buying behavior.

As we move forward, the companies that can effectively engage with the somatic markers of their customers will have a powerful tool at their disposal. And as consumers, being aware of our own somatic markers can help us understand the mysterious forces that often guide our decisions.

Remember, the next time you feel an inexplicable pull towards a product, you might just be experiencing your somatic markers at work. Happy shopping!

Fo reading more on Buying Behaviours, check here.

Understanding Consumer Buying Behavior

I am a growth Marketer. As growth marketers, understanding consumer buying behavior is not just a requisite; it’s a cornerstone that determines our strategies’ effectiveness. It encompasses a wide spectrum, ranging from simple habitual buying to the intricacies of complex buying behavior.

Let’s delve into this multifaceted subject and decode some prevalent models and types of consumer buying behavior that shape marketing practices today.

Observe how you react when you see such Ads, that's Buying Behaviour — Observe how you react when you see such Ads, that’s a Buying Behaviour .

Consumer Buying Behavior: The Basics

Consumer buying behavior refers to the actions consumers take before, during, and after purchasing a product or service. This includes recognizing a need, searching for information, evaluating alternatives, making the purchase, and post-purchase evaluation. Numerous factors, such as cultural, social, personal, and psychological, influence this process, altering the buying behavior model at each stage.

Types of Consumer Buying Behavior

According to Philip Kotler, a pioneer in the field of marketing, there are four types of buying behaviors:

Complex Buying Behavior

This occurs when consumers are highly involved in a purchase and perceive significant differences among brands. For example, when buying a new car or a house. Here, the consumers will undertake a full information search, followed by a thorough evaluation process.

Dissonance-Reducing Buying Behavior

This happens when consumers are highly involved but see little difference among brands. This can be observed while buying products like carpeting, where the consumer might not know much about the product, but the cost of purchase is high.

Habitual Buying Behavior

Low consumer involvement and few significant perceived brand differences typify this. For example, consumers buying everyday products like salt or milk.

Variety-Seeking Buying Behavior

This is characterized by low consumer involvement but significant perceived brand differences. Consumers might switch brands for the sake of variety rather than dissatisfaction. For example Chips, Sweets or even Apparels.

Consumer Buying Behavior Models

There are various models to illustrate consumer behavior.

Nicosia model

The Nicosia Model of Consumer Behavior: Francesco Nicosia proposed this model, focusing on the relationship between the firm and its potential consumers. The model proposes a circular flow of events divided into four major fields: problem recognition, predisposition to act, evaluation of the action’s feedback, and the firm’s response.

Problem Recognition

The journey begins when the consumer realizes a need or a problem that needs to be resolved. This awareness can stem from many triggers – an empty fridge, an expired insurance policy, or a fading perfume. Once consumers acknowledge this discrepancy between their current state and their desired state, they set out on their buying journey.

Predisposition to Act

Once the need is identified, consumers proceed to the stage of predisposition to act. Here, they start gathering information about potential solutions to their problem. They may turn to various sources – search engines, social media, or word-of-mouth referrals. Based on the acquired information, consumers form attitudes and develop a predisposition towards certain products or services.

Evaluation of the Action’s Feedback

After the purchase, consumers evaluate their decision, experiencing either satisfaction if the product meets their expectations or dissatisfaction if it doesn’t. This post-purchase evaluation forms an important feedback loop in the consumer buying process. It significantly impacts their future purchasing behavior and loyalty towards the brand.

The Firm’s Response

Finally, the cycle concludes at the firm’s end. Businesses must pay heed to consumers’ reactions and feedback. Whether it’s a product review, a complaint, or a testimonial, companies need to respond effectively. This could involve improving the product, rectifying the service issues, or simply acknowledging the feedback. The firm’s response can profoundly influence the consumer’s perception and future buying behavior, thereby initiating a new cycle of the consumer buying process.

In essence, the Nicosia model provides a broad perspective on consumer behavior, emphasizing the interactive relationship between the firm and the consumer. It is a reminder that the consumer buying journey is not a one-way street but a dynamic, circular process that requires continuous engagement and adaptation from businesses.

The Kotler Model

The Kotler Model: Philip Kotler presented a model that depicts a rational buying process. This model includes five stages: problem recognition, information search, evaluation of alternatives, purchase decision, and post-purchase behavior.

Problem Recognition

Similar to the Nicosia model, the journey starts with problem recognition. This is when a consumer identifies a need or recognizes a problem that needs to be solved. The need can be triggered by anything that leads to a discrepancy between the consumer’s current state and their desired state. Whether it’s a broken device, an empty pantry, or the desire to learn a new skill, the process begins with recognizing the ‘problem’.

Information Search

Once the problem or need is identified, the consumer moves to the information search stage. This involves researching different solutions to address the recognized need. Consumers may seek information from personal sources such as friends and family, commercial sources like advertisements, public sources including news reports, and experiential sources, which could be their past experiences with a product or service.

Evaluation of Alternatives

Armed with information, the consumer then evaluates the various alternatives available. They consider various factors such as price, quality, features, brand reputation, and reviews. Each consumer may evaluate these factors differently based on their individual preferences and needs.

Purchase Decision

Following the evaluation stage, the consumer is ready to make a purchase decision. They choose the product or service that best meets their needs based on the evaluation process. However, this stage can still be influenced by other factors, like unexpected situational factors, negative feedback, or a sudden change in financial situation.

Post-Purchase Behavior

The final stage is the post-purchase behavior. Once the product is used or the service is experienced, the consumer assesses their satisfaction or dissatisfaction. If the product or service meets or exceeds their expectations, they will likely become a repeat customer and might also become a brand advocate. However, if their expectations are not met, they might experience ‘post-purchase dissonance,’ leading to regret or returning the product.

The journey might not end here, as their experience and feedback could potentially start a new journey, either for themselves or for other prospective consumers.

Understanding these stages is crucial for marketers as it allows them to cater to consumers’ needs at each stage effectively, ultimately guiding the consumers towards choosing their product or service.

Buyer Behavior Analysis and Factors Influencing Consumer Behavior

Buyer behavior analysis involves the examination of the decisions and actions of buyers in the marketplace. It includes understanding what motivates consumers, what deters them, and the factors influencing their purchase decisions. Some of the major factors include cultural, social, personal, and psychological aspects.

For example, cultural factors like religion, social class, or ethnicity can influence a person’s needs and behaviors. Similarly, social factors such as reference groups, family, or roles and statuses can also affect a person’s buying decisions.

Factors Affecting and Influencing Consumer Buying Behavior

There are various factors that affect consumer buying behaviour significantly. These include psychological factors such as perception, motivation, and lifestyle; personal factors like age, occupation, and economic status; social factors such as family, social roles, and status; and cultural factors like nationality, religion, and social class.

Organisational buying behaviour, on the other hand, involves decision-making by a group or an organization. It is influenced by factors such as the size of the organization, its business nature, and the roles of the decision-makers.

Consumer Buying Behavior in Different Sectors

Taking a sector-specific view can give us more refined insights. For instance, when considering consumer buying behaviour towards insurance products, factors such as the consumer’s financial situation, perceived risk, and the complexity of the product come into play.

The Impact of Social Media on Consumer Buying Behavior

In today’s digital age, social media significantly impacts consumer buying behaviour. Platforms such as Facebook, Instagram, and Twitter provide consumers with vast information about products and services. Reviews and recommendations on social media can considerably influence a consumer’s decision to purchase a product or service.

Summary

Unraveling consumer buying behavior is akin to understanding the human psyche, shaped by myriad external and internal factors. As growth marketers, appreciating these dynamics and adapting to them can pave the way for successful marketing strategies. It’s like setting sail on a sea, the tides of which are the consumers, ever-changing, ever-evolving. To navigate it successfully, understanding and adapting to its ebb and flow are essential.

Remember, as Aristotle said, “Man is by nature a social animal,” and the marketplace is our modern-day social arena. So, let’s use these insights, understand our consumers, and build our marketing strategies to resonate with their needs, desires, and behaviors.

Stay tuned for more such insightful journeys.

Mirror Neurons: How it Influences Buying Behavior

Have you ever heard this word “Mirror Neurons” before? This post is all about mirror neurons, the magical elements in our brain that make us mimic others, especially their buying behaviors.

Magic Brain Cells: Understanding Mirror Neurons

Mirror Neurons, burger example for explanation

Imagine you’re watching a movie. In the show, Sharukh Khan is biting into a huge, juicy burger. Even though it’s just a movie scene, you suddenly feel your mouth watering, don’t you? Why? It’s because of something super cool in your brain called mirror neurons. They’re like magical brain cells.

Think of them as your brain’s very own empathy conductors, always ready to mimic and reflect what’s happening around you.

In a nutshell, mirror neurons are a driving force behind how we perceive and interact with the world. And marketers, they’ve been smart about it. They know that by creating engaging and relatable experiences, they can tap into this ‘mirror’ mechanism of ours, influencing our decisions.

That’s why we have life-like mannequins in clothing stores, smiling faces in advertisements, or why tech companies make unboxing videos. It’s all about triggering those mirror neurons to say, “Hey, that could be me!”.

Monkey Brains & Mirror Neurons

Remember how Monkeys imitate you at zoo, or the story where a guy throwing stuff and monkeys repeating the same? It was an instance of mirror neurons at work.

Just like how monkeys imitate actions of their peers, humans too mirror each other’s buying patterns. Spot a pair of trendy earphones in a stranger’s ears, and our brains automatically trigger a desire to own those fancy accessories. Sounds familiar, doesn’t it? But it’s much more than a simple craving.

Earphone example to explain mirror neurons

Imagine a trip to the mall, a common activity for many of us. As you walk past the Gap’s window, a mannequin stylishly dressed in worn-in jeans and a summery white blouse captures your attention. It’s chic, appealing, and you suddenly think, “That could be me.” With the newly purchased outfit in hand, you stride out, feeling like you just bought an image, an attitude.

Let’s take another scenario: browsing Amazon as a bachelor. After watching the latest gadget with your favourite cricketer wearing it, you may walk out of the store owning it. You’ve just experienced what it feels like to be a rock star! (Only if you are a bachelor and have a decent pay check 😉 )

In both cases, the mirror neurons in our brains helped us imagine what it’d be like to step into different shoes, leading us to make purchases.

Monkey see, Monkey do: Mirror Neurons in Action

Let’s take a quick look at another study, the ‘Smiling Study’. As you’d guess, volunteers who interacted with a smiling agent reported a more positive (imaginary) experience and were more likely to continue patronizing the company. In other words, a simple smile can greatly influence our shopping decisions.

This ‘monkey see, monkey do’ phenomenon also translates into the online world. For instance, the massive popularity of ‘unboxing’ videos on YouTube demonstrates how we derive pleasure from watching others open new products. Mirror neurons? Quite possibly.

Ever noticed a product you initially disliked become increasingly appealing after seeing it everywhere? In my case, it’s Nothing phone, I found it so creepy but later I start loving it. This transformation from ‘hideous’ to ‘must-have’ is another example of how our buying behavior can be influenced by repetition and imitation. Be it fashion trends or the latest electronics, we aspire to own what we see around us.

However, our mirror neurons are not working alone in this. They often collaborate with dopamine, the pleasure chemical in our brain. When you see something enticing, like a shiny Iphone or diamond earrings, a dopamine rush gives you a short-lived high. In just 2.5 seconds, you make the buying decision. As the dopamine recedes, you might start questioning your purchase.

Does shopping make us happier? Scientifically, yes, albeit temporarily. This happiness can be attributed to dopamine, causing a burst of good feeling that fuels our instinct to keep shopping. It’s our emotional brain wanting to max out the credit card, even as our logical brain advises caution.

Conclusion: Mirror Neurons

In conclusion, our purchasing decisions are significantly influenced by mirror neurons and dopamine. This is where Marketing becomes Neuromarketing. Read more about Neuromarketing here with case studies.

So the next time you feel an urge to buy something just by seeing someone else enjoy it, remember your tiny friends, the mirror neurons, are at play. And it’s not just about buying stuff, these neurons help us connect, understand, and empathize with others. Truly, a marvel of the human brain!

Neuromarketing: New Wave in Marketing Strategies

Ever wondered how your brain secretly influences your buying decisions? Get ready to explore the fascinating intersection of neuroscience and marketing aka neuromarketing.

Here we’ll dive into real-life case studies that demonstrate how companies harnessed the power of neuroscience to achieve remarkable results. Prepare to be inspired as we uncover key learnings that you can apply to your own business and marketing endeavors.

Understanding Voter Behavior and Response to Ads

The marriage between neuroscience and politics was inevitable. Tom Freedman, a strategist and senior advisor to the Clinton administration, founded FKF Applied Research—a company dedicated to studying decision-making processes.

American president campaign 2004 and the imapct of fear in it, studies from Neuromarketing — Credits: akhilpillai.com

In the run-up to the 2004 Bush-Kerry presidential campaign, FKF used fMRI (Functional magnetic resonance imaging) scanning to analyze public responses to campaign commercials. The results were intriguing, showing that ads triggering fear, such as those evoking the September 11 attacks, had a significant impact on voters. Democrats and Republicans even showed distinct patterns of brain activity, shedding light on the role of fear in political advertising.

These findings revolutionized our understanding of how campaigns can sway public opinion by targeting the deepest recesses of the human mind. The relation between neuroscience and politics has forever transformed the landscape of election strategies. It challenges the traditional surveys and ushering in an era of data-driven decision-making. In India, the best example is 2013 NDA’s Election campaign.

So, whether you’re a political strategist, marketer, or simply a curious observer, remember that the human mind holds extraordinary power. Neuromarketing continues to illuminate the campaigns that resonate deeply with our target audience.

Let’s embrace this knowledge, driving positive change through a deeper understanding of the intricate connections between our brains and the world of politics.

Let me share some more examples.

Using Neuromarketing to Capture Audience Attention

Even Hollywood has embraced neuroscience. Stanford University’s Steve Quartz studied how viewers’ brains responded to movie trailers months before release.

By identifying what appeals to the brain’s reward center, studios can create captivating and provocative trailers. This understanding extends to shaping movie endings based on the audience’s neural preferences. Get ready for a future where films are tailored to captivate us on a deeper level.

Exploring Truth through Neuroimaging

Neuroimaging has even made its way into law enforcement. The No Lie MRI, developed by a California entrepreneur, puts a neuroimaging spin on lie detection. The assumption is that lying requires cognitive effort, triggering increased blood flow to the brain. The U.S. Pentagon is also exploring MRI-based lie detection programs, further highlighting the potential applications of neuroscience in criminal justice and military settings.

Unveiling the Subconscious Triggers of Consumer Preference

In 2002, Daimler-Chrysler’s research center used fMRI(Functional magnetic resonance imaging) to study consumers’ responses to different car models. Interestingly, when participants viewed the Mini Cooper, a region of their brains associated with processing faces was activated. This revealed that the Mini Cooper resonated as an adorable face, triggering a positive emotional response. Understanding these subconscious triggers can inform marketing strategies that tap into consumers’ emotional connections with a brand.

Identifying Rewarding Stimuli with Neuromarketing

poster showing Babies' faces have a powerful effect on our brains, Studies from Neuromarketing — Credits: akhilpillai.com

Babies’ faces have a powerful effect on our brains, and this phenomenon extends to marketing. A study at the University of Oxford revealed that adult participants showed an early and distinct response to infant faces, indicating activation of the medial orbitofrontal cortex—an area associated with detecting rewarding stimuli. This knowledge can be leveraged to evoke positive emotions and create impactful marketing campaigns.

With Neuroscience, Neuromarketing is the future of Marketing I believe. This is an introductory post as a part of series that I continue on Marketing Psychology.

Explore and Read more posts on this here.

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