Wednesday, January 5, 2011

Psychology of Advertisement: Are You Being Manipulated?

Posted by Steve McLain, the main author of Generational Wealth Tycoon--a man dedicated to the enjoyment of a life well lived.

I have news for you, you're being manipulated. 

Cognitive psychology is a seemingly strange area of study to have jumped right out of human science and into the commercial world.  But advertisement is a psychological exercise at the highest levels, demanding a deep understanding of the human psyche in order to exploit it for financial gain.

Psychology allows one person to recognize the tells of another person to help at the negotiating table.  Psychology assists investors with predicting the direction of stocks in the market (consumer confidence).  It gives a person an edge when making friends; it is how detectives build criminal profiles and how interrogators gain more insight than what is actually said.  Psychology is a tool we all use, to one degree or another, and a tool that is continually being used on us.

I think modern advertising is actually dangerous.  It's often blatant and obnoxious, but then, the best advertisements are often subtle and nearly imperceptible because they are so interwoven into our lives.  For instance, the simple placement of brand names on everything we or the people around us use are not obnoxious, they simply "are".  We don't consciously notice the brands of those things we use, but we take cues.  When I was young, I worked with guys that always used Craftsman tools.  They would sometimes get a new tool and mention they'd gotten it at Sears.  I never asked them about it, but I did take note somewhere in my subconscious and it resulted in my preference for the tool maker when buying my own--at Sears.  I automatically had a higher opinion of the company because I respected the men I worked with.  I realized this after I'd bought my tools.

Back to my earlier statement that advertising is dangerous: I say this because it's hard to take a drive without seeing hundreds of advertisements everywhere you go.  It's difficult to turn on the television and not hear advertisements in the background.  The reason seeing or hearing these things can be dangerous is because they implant a sense of need in your mind.  Simply being aware of the things that are out there, i.e. a simple food processor that "most other people" have that makes food preparation so much easier.  Or, how about being aware of that way cool iPod that your friends all have--which means you also need to use iTunes and you'll need earbud accessories and a cover to protect the device...  Or, you are made aware of the "need" for a cell phone with an internet connection and unlimited texting.  Or, you realize you can't possibly take your kid anywhere unless you have a DVD player in your car (okay...this may be true).

Advertisement has become so good that our culture has bent to accommodate increased spending as income increases.  For instance, you never see a high-level business man in a movie that is wearing a cheap suit, he's wearing an expensive, thousand dollar suit with costly shoes and a stinking silk tie.  So, you get that promotion, but now you have to upgrade your wardrobe.  How about that car you drive?  Of course, you know that form watching others, from watching the television shows, and from seeing the commercials that higher level managers drive the nice cars, so your low cost pinto needs to go in order to get that fancy new BMW to fit into the image of the executive.  Granted, sometimes you need to buy a nice suit or look the part to be taken seriously, but take into consideration just how much it's going to cost versus the benefit.  I may just write an article on providing the image without investing the money.

It almost doesn't matter what you do.  As an American, you're going to think you need a lot more than you do.  But when it comes to generating wealth, you kind of need to give up obtaining the "appearance" of wealth to have true wealth.  If you buy into the higher lifestyle of an American, if you think you need things that you probably don't so you can make life easier or so you can look successful or so you can xyz...then you will likely never have enough money to obtain generational wealth. 

Your interests should be to generate long lasting wealth so that you'll have "real" success.  Train yourself to realize that it doesn't matter what others think of you (except, sometimes, when it comes to impressing superiors in order to maximize income at your job--and even then, it's a mathematical decision, not a given). 

Your friends, your neighbor, and the occasional stranger might be impressed or envious for about a minute when they see you, but they quickly go back to being self-absorbed and interested in their own appearance to others.  Don't fall into the trap of not realizing how little others care about what you have and how you look.  Stop worrying about what they think and do the right thing for you and your family.  To tell you the truth, people admire those that actually dedicate themselves to accomplishing a valuable goal.  I admire writers that finally get published after working hard at it.  I respect people who work to build their own business.  I also sit in awe at the occasional person I meet who has altered his or her life, i.e. sacrificed, in order to save money and wisely invest it for long-term, future wealth. 

You can do this too.  Do some evaluating and really try to see what advertisements (manipulation) you've bought into.  Then, after identifying your weaknesses, control them.  Think about your goals.  Are you striving to buy a new car or are you looking toward the future when you'll be able to live comfortably, seeing the world as you please, maybe even traveling in your own private jet? 

Have you realized where you've been getting manipulated?  Have you already sacrificed to generate real wealth?  Let me know in the comments!