Understanding human behavior is vital to build and run a successful business. This begs the question why Business Schools disregard the need for their students to learn it. Psychology is vital for every workplace. It has an impact on the way a company manages, supports, organizes, hires and builds a strong workplace. It also is crucial in designing, marketing and selling products. Here are 5 reasons Business Schools Should Teach Human Psychology in Their MBA Programs.
1- Impactful Marketing
Studies show how customers emotions affect their decisions when buying a product. In order to attract a loyal customer who is faithful to you, you must develop a meaningful connection between them and your brand. Consumer psychology, puts forth this idea that consumers choose brands that they feel represents them best, it’s a desired identity. Branding expert and author Marty Neumeier explains “a brand is a person’s gut feeling about a product, service, or organization”.
Apple is a fantastic example of impactful brand marketing, as they neurologically connect with their audience. From the packaging, to the product reveals, to the unique store design, to the overall brand concept. It creates a major buzz around their brand, the demand rises, and a cult-like following is born. Apple’s customers don’t buy their products because they feature specific things, they buy them because they are Apple. When you implement psychological properties behind your brand, you will develop a differentiation, as you pose a unique selling point to your consumers. For example, people who buy Apple, will always buy apple. It is a status symbol driven by emotion.
2- Become a Selling Machine
A key part of selling to current and potential customers is to understand what compels them. When you don’t know why or how people think and act, then you won’t know how to sell your product to them. Psychology allows you to explore how people operate, why they do what they do, and want what they want. By mastering psychology, business leaders can turn their companies into selling machines by harnessing the power of customer persuasion. Sales benefit from psychological concepts to persuade customers, such as providing freebies in their offers to increase sales dramatically.
3- You Become a Better Leader
The influence a leader has on their staff is substantial, your company cannot flourish unless you set up the means for it to flourish. In order to lead a successful company you need to direct, coach, support and delegate accordingly. Building a relationship with the people you lead is crucial for tapping into their minds and their personal motivation. When you learn, in a deeper sense, about how individuals make decisions and what could affect them, you will understand how to manage them successfully. Learning the psychological side of how vital it is to create a healthy and uplifting environment for your employees will give them the means to thrive. It also gives you the tools to be more mindful during the hiring process.
4- Be Two Steps Ahead of Competitors
Understanding the psychology of your competitors will assist you in being more proactive in your competition with them. You need to discover what they are influencing with their products, what habits are their customers investing in? For example, the reason we love a certain sweater or sneaker has more to do with our brains than our bodies. Exploring what a competing brands’ psychological basis, or promotion on their products is, will allow you to become two steps ahead of them.
5- You negotiate better deals
When negotiating an important commercial or financial deal with another corporation, private sector or a government agency, understanding the psychology of the person (or team) who negotiates with you, will help you negotiate a much better deal for your company. By gauging the desires of the other negotiator and setting the emotional tone of the discussion, you can reach an acceptable agreement.