I think many economic problems are marketing problems in disguise as the root of these problems lies not in the logical aspects of economics, but rather in the psychological realm of human perception and desire. This perspective emphasises the importance of understanding and influencing consumer behaviour and preferences in order to create value and solve economic challenges effectively. One key aspect of this argument is the idea that value is subjective and exists primarily in the minds of individuals. While there may be inherent qualities and functions in a product or service, their value is ultimately determined by how they are perceived by consumers. And this is why many of the problems we try to solve logically would be easier to solve psychologically.

I attended a dinner party last Friday and one of the topics of discussion was Daniel Kahneman’s book, “Thinking Fast and Slow”. For us people in marketing, we don’t need a perfect understanding of psychology all we need is a way of thinking about the way people think. One of the things that makes it really useful for us marketeers is that the book gives a very intelligent and perceptive way of doing it.

In general, people are really good at seeing the mistakes that other people make and are not so good at seeing the mistakes they are making. I am not a self-help guru but Kahneman highlights that educated gossip is a very good thing because people anticipate gossip when they make decisions. And I think if people anticipate intelligent gossip they would make better decisions than if they anticipate unintelligent gossip.

I think that during these hard times “Thinking Fast and Slow” is more relevant than ever. Over the last decade, there has never been a greater need to deepen our understanding and create new models of human behaviour. Having a better understanding of people will help us create products and services for what people want and find easy to use. Forgive me if this sounds too idealistic but I’m optimistic and want to make the world a better place for us all. Contact me via e-mail and let me know how this thinking makes you feel.

The sweet spot

Can we learn to make better decisions?