Friday, April 24, 2009

Individual Irrationality

I was recently exposed to Personality Typology. I instantly found a parallel with Advertising in trying to determine how people generally behave. And if a marketer can predict certain behaviors to a large enough degree it should be able to tailor products and marketing styles to be successful.

But I am always reminded that individuals do not always behave as predicted. There is a large enough percentage of sales from irrationality and pure luck to prove this. These are impulse sales for right place, right time, right price. You are on a business trip and the restaurant for dinner is two blocks from your hotel, the menu prices were within your per diem budget, and you don't have to wait to be seated.

Brands can capitalize of Individual Rationality by creating Ad Campaigns that promote it. Luxury Brands and Upscale Services can benefit when people splurge even when they shouldn't due to their lack of spending power. The object though is to figure out the right channel for the right price. Why waste your Ad Dollars on fringe sales. But a campaign message can be crafted for the Advertising done on more Mass Channels such as local publications. If your forced to make a Media Buy just to support your Presence in people's minds use the opportunity wisely. And yes every Media Buy is an Opportunity and should be viewed as such.

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