Sales Psychology Explained – Know your Products

Sales Psychology Explained - Know your Products:

Many are Unemployed and people don't have money due to the Coronavirus Pandemic. During this time using Psychology of Sales, the companies or Corporates are doing their sales. 

How are they doing their sales?

Beloved Tamil People. Greetings from Tamil Pokkisham.

This post will be proof that we have been fooled many times during our purchases. You may think that the information given in this post could not happen. But the reality is this information is true. 

First information is we have to know about the Chrysler car. In the 1980s the company faced a huge loss. But suddenly there was a bold announcement from the Chrysler Corp. For the first time in US history, a money-back guarantee was introduced. People can use the car for 30 days if they don't like the car they can return the car to the company. 30 Days Money Back Guarantee. Remember this happened in 1980, not 2020. 

Sales Psychology Explained - Know your Products

Employees doubted that their CEO had gone crazy. But the sales of the Company in history have increased. 

How many cars were returned?

The Percentage was .1 %. So if the company has sold ten cars for a year. None of the cars was returned. 

Why didn't the people return the cars?

If this is true.

Why did the Car company face a huge loss in their sales before this announcement?

We have to think deeply about this fact. We know about FOMO(Fear of Missing Out). 

Sales Psychology Explained - Know your Products

Why are the Corporates creating this fear?

How are they doing it?

They will never say that their products are unwanted products. They will say that it is a necessary product which should be purchased Immediately. They will instil this Urgency in your minds. This is how using FOMO they are selling products to us through E-Commerce Websites. 

Ex: Within three hours the sales will be closed. If you order now you will receive the Delivery the next day. This clearly denotes the urgency which is instilled in your hearts. 

What is the connection between FOMO and the Chrysler car?

People who bought the car know that they have 30 days to return the car. In the 1980s a Car for the Americans was a dream. When the family sees the new car, they are not going to give back the car. This thought has been planted in their hearts by the Company. So after 30 days, they will not return the car. Rarely did people return the cars. 

So the reason was a huge loss. People didn't believe in the quality of the car. So People refused to buy the car. When the Company announced the 30 days Money-back Guarantee. The Company has planted some kind of belief in People’s minds which the people didn't have on the company. Due to this people bought the car. This is called Loss Aversion. 

So we hate losses more than we love Winning. So if you buy your favourite product the happiness which you have is low compared to the loss if you miss out on that product. This is called Loss Aversion. 

Why can they fool people using Loss Aversion?

They will offer you free samples. Companies may say that you can use the product for some days. When using the product you will get used to that product and you will automatically like it. So you cannot lose the product you will buy. 

The Second method is giving Coupons. So if you are getting a Coupon which is worth rs50 for spending rs5000. Many people will only say that they have got an Rs50 coupon but they will not highlight the 5000Rs which they have spent. This is the win of the MNC’s.

If the sales are not happening they will introduce FOMO. IF FOMO fails they will create the Illusion of Loss. 

Sales Psychology Explained - Know your Products

There could have been a lot of sales on a particular day. But when you open the Ecommerce Site the next day there will be a message “ You missed this offer yesterday”.  So they will introduce another offer in front of you. There are chances that you may buy the products. This is called The Illusion of Loss. 

People who know about FOMO and the tricks used by the Companies. The Company will deal with these people using Price Anchoring. A Person from your family or your friend might say to you. There was an offer in a shop, the product rate was rs50. But on Offer, they sold it for rs30. So they bought 3 items for rs100. So a product which is valued for Rs50 is sold for rs30. 

Why is this difference in price?

If a product is not selling for so many days and if they reduce the price that's ok. But a new product released in the market which will be MRP Rs50 but they will sell it for Rs30 on offer. They will say it as an offer, but we have been turned into fools by buying these products. This method is called Price Anchoring. The Anchor price is Rs50 and the sales price is Rs30. The Profit of the company will be Rs10. 

So if there is a product in the market for so long which is not sold. The price may be rs10000, but the company will offer a 50% Offer and sell it to you for rs5000. You can buy those products. But if they say that a Newly Introduced Product has a 50% sales offer. Remember you have been fooled through the Price Anchoring method. 

If you have been fooled in this method. Are there any other methods?

There is Frequency of Illusion and Priming. The people who have studied marketing will know these terms. But we are trying to let you know the strategy the companies use to sell their products to you. 

So the frequency of Illusion is you could have seen an advertisement for a product in your Mobile, Television, Newspaper. There are chances that you may see the Banner of the same product when you go out. When you go to someplace you may see the advertisement again. This is called Frequency of Illusion. There is a strong connection between the Frequency of Illusion and Priming. 

Priming means while you are eating if you see Red Colour you will have this urge to drink Coca-Cola. When you see the Yellow colour if you have known about the Nikon Camera, then you will see the image of the Nikon camera. This is called Colour Psychology. 

The Brands which have their logos. The products which you see have emblems whether it's Amazon or Apple. There is Colour Psychology behind these logos. 

Scientists have researched this Colour Psychology for 12 years. A survey was conducted throughout the world. 

The survey consisted of questions like

Why do you use the red colour?

What will be your thoughts if you see blue in the night time?

So many questions were asked to many people. They created a Chart. They are using the Chart to learn Colour Psychology. So if you like an advertisement which you see it is not displayed it is not randomly shown to you. The Advertisements are meant to defeat you Psychologically. Now see this image which is a Coke advt. You can see the red colour all ob\ver the place. So when you see Red you will remember this Coke Advt. The companies logos will be based on the Colour which they choose. 

Sales Psychology Explained - Know your Products

Lastly comes the Decoy Pricing. For Ex: See this advt 

Online Subscription: $50.

Print Subscription : $125

Online and Print Subscription: $125

Imagine a mobile which has 8Gb Ram 256 GB Memory -  125$

6 GB Ram 256 GB Memory - 125$

4 GB Ram 64 Gb memory -  59$

These rates are from the same company. 

Which product will you choose?

We will select the 1 st option. Do you need 8Gb Ram for a mobile phone?

The Computers which you use will have 4 or 8 GB Memory. So the computers and your mobile have 8Gb Ram. This is called Gimmick. Many companies are now developing their Softwares and Games for 2023. These developed Applications for your mobile will need only 6GB of Memory. 

Is there an advantage for you having an 8GB Ram?

Nope. You can take pride that you have an 8GB ram Mobile phone. 

Sales Psychology Explained - Know your Products

You will know about the iPhone. The Maximum Ram is these mobiles are from 2 to 3 GB. But the android version of your Mobile will have an additional 6GB ram. But the iPhone is better than these Andriod’s Mobiles because of Operating Systems. The companies know that if you see 8GB ram you will buy their products. Through this method, they are selling their products to you. 

Again the Ex:

Online Subscription: $50.

Print Subscription: $125

Online and Print Subscription: $125

80% of the People could have chosen the 3rd Option. The Decoy is the Second option which is unwanted to you. So if you remove the 2nd Option nearly 90% of the People will select the first option. You will only compare the Decoy and you will never understand your real need for the product. 

Sales Psychology Explained - Know your Products

For better Understanding Visit Amazon or Flipkart and search for the product you need. 

There will be FOMO, Illusion, Priming. You can clearly see them now. You can now understand the truth in this post. 

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