Demystifying Sales: Understand why people buy what they buy.

Why people buy what they buy

In order to find a sales technique that works one needs to experiment and gauge what works best for a given target demographic. However, majority of the businesses that need to experiment have finite marketing budgets that restrict how well they appeal to the market. So how does the average business reach their niche in the most effective way possible?

We need to understand that sales techniques vary depending on the intended result. Also that no one person has the entire ‘Sales Playbook’. It takes a combination of experimenting and relying on tried and tested classic techniques.

We go a step further and instead of looking at Sales techniques we look at the cornerstone of every sales interaction, Human Nature. If you have a grasp on your product’s applications and human nature in relation to your product then selling it becomes the easy part. We highlight the internal and external influences with the hope that new information affects how entrepreneurs shape their strategies.

PEOPLE BUY THINGS BECAUSE OF ABSOLUTE NECESSITY.

In the first half of the 20th Century, Abraham Maslow constructed a hierarchy of needs. The concept is popular in developmental psychology. It states that until the needs of the lower levels are met one cannot move to fulfil higher kinds of needs. This means that it is difficult for a person to pursue needs around esteem and self-actualization if they lack food or water.

In the very same way, some organizations are centred on providing the most basic of needs that is; Food, water and shelter. Sales of these kinds of products are relatively easier because they are absolutely essential for survival. It doesn’t take much convincing for one to acquire these things. The business model behind the kinds of companies that cater to these needs is structured more around the quality of the products being provided than the actual marketing of the products. What wins people over isn’t a flashy commercial from a food or water company, its good quality product. Once that is taken care of then the people themselves will market the product for you.

PEOPLE BUY THINGS BECAUSE THEY ARE TOLD TO.

Telling people about a product works best when introducing a new product. This involves commercials but it can go a lot further. A good example is the introduction of the iPhone. We barely had a concept of what a smartphone was before the introduction of the iPhone, so the innovator behind the product got on a stage and told the media about the revolutionary new product and what it can do.

Once everyone saw how effective this was, the entire tech community followed suit and implemented this for everything from new device launches to software updates.

Telling the public about a product is simply giving numerous reasons why people should own a given device. This is one of the simplest ways to tell someone to purchase something. If you can convince someone of the merits of a certain product then they might think that it’s their own idea to want to purchase it.

Commercials serve this purpose as well. Flashy images and a catchy song are designed to be magnetic and keep a given brand lodged in the customer's mind. If this goes on repetitively then the customer is more predisposed to purchase the product because of a phenomenon called Cognitive ease. This is how it works, the more interactions one has with something, the more familiar he gets with it and the more likely he is to be susceptible to it.

PEOPLE BUY THINGS TO EASE PAIN/ DISCOMFORT OR ACCENTUATE PLEASURE.

People purchase both tangible and intangible products for the sake of pleasure. Look at how robust the travel, hospitality and extreme sports industries are. There’s plenty of demand there simply because they feel amazing. Bungee jumping is exhilarating, being pampered at a hotel is relaxing and travel is illuminating. These may fall into a luxury category because they are not essential for survival, but improve the quality of life.

The man behind the million dollar watch said, “No matter how the economy is doing, we always have customers.” This is because there is a continuous need for people to treat/ reward themselves. There’s an emotional need for people to reward themselves after attaining a given goal, this allows them to focus on the next objective with even more intent. Knowing this, if your product or service falls in the luxury sector you should position and market it as a reward use exclusivity to emphasize its value.

Easing pain is an entirely different issue. This is believed to be a pillar in the pharmaceutical industry. Pain relief or the ability to ease discomfort is a means of creating value. People will spend money to move away from pain and closer to pleasure. How you position your products or services around this matters less than the effect/quality of the product. Work on the product or service relentlessly with the aim of creating a solution to the pain or discomfort and you will build a loyal clientele, you can supplement this with marketing but always remember where the main focus is.

PEOPLE BUY THINGS BECAUSE OTHER PEOPLE BUY THEM.

The use of brand ambassadors is one of the oldest tricks in the book to improve product image. You’ve seen when fashion brands partner with models to imply that their products would have a similar effect on the rest of the public. This method works remarkably well.

A good example is when Under Armour partnered with Basketball Sensation Stephen Curry to create a basketball sneaker and soon after the shoe was released it skyrocketed to become one of Under Armour’s best-selling products. There is something to be gained by partnering with certain celebrities who have specialized in your product's niche.

If you can afford to have a brand ambassador who pairs seamlessly with your brand, the go-ahead and pursue that venture because there is a notable correlation with sales. Fashion giant Gucci gave one of the Band members from the music trio Migos, a lifetime discount to encourage them to shop there. This is because the more they’re seen in Gucci, the higher the demand for their clothes from the general public. These kinds of strategic moves can make all the difference.

PEOPLE BUY THINGS BECAUSE LOGIC SUPPORTS THEIR PURCHASE.

Products and services are meant to have some utility or a problem that it addresses. If the product addresses an issue that the customer is facing then it would be the logical choice for the customer. Case in point, a family man would much rather purchase a family mini-van than a flashy sports-car even if both share a similar price-point. The greater the utility of a product, the more likely it is to be the logical choice. When marketing for such a product, actively emphasize its strengths and its target group.

PEOPLE BUY THINGS BECAUSE OF EMOTIONAL IMPULSES:

Majority of the middle to upper-class population are known to impulse buy. This is because their spending power exceeds their needs. If they come across a product with brilliant design or one they’re positively predisposed to, they will buy it. These kinds of products tend to have bright colours and slick designs and fair prices, posing a low barrier to entry and a seemingly good reward for fair prices.