As important as we need to know the market sophistication stages and where our audience’s awareness levels at before launching a product…
Marketing bias is also a huge factor to consider. It is the tendency of entrepreneurs to focus on and remember the data in a way that justifies our preconceptions and worldview. In a nutshell, it is seeing a reflection of the truth that we already assumed.
As a matter of fact, marketing bias is one of the first things we need to look at for us to know if our judgment of things is in the right direction.
5 Marketing Biases That Every Entrepreneur Needs To Keep In Check
- Confirmation Bias
This marketing bias occurs when we interpret new information based on our previous beliefs. Confirmation bias is the most common bias for entrepreneurs – especially those who are really passionate about their businesses.
Example
A 40-year-old male entrepreneur launched his own weight loss program believing that his target market would be men 35-45 years old. This is because the same program outline helped him lose weight.
Confirmation bias could lead him to sell this program to men in their late thirties to early forties only…without even testing if this course will appeal to other age groups.
Solution
A quick way to overcome this marketing bias would be to get a different perspective from a friend or family member. You can ask them these questions and be ready for new ideas that you will discover:
- Who do you think could benefit from this program?
- Why might my target market NOT want to avail of this course?
- What this product reminds you of?
- Irrational Escalation
Irrational escalation is when we disregard new pieces of evidence if it undermines a decision that has already been made. An entrepreneur that has been invested in an idea commonly leads to this marketing bias.
Example
Let us take the male entrepreneur from the previous example. He already invested so much of his time, money, and effort in the program that he launched only to find out that most of his clients can’t commit to the requirements needed for his program…
This entrepreneur tends to throw more money into his offer that will never generate sales for his business.
Solution
Once you discover that you have an irrational escalation, you have to stay objective. If a business model isn’t selling, another one will. I know it is tough, and as an entrepreneur who has been passionate about your product, you should be willing to cut your losses if need be.
- Social Desirability Bias
This marketing bias is also known as the “Observer Effect.” Social desirability bias is when we make decisions based on what we think is “socially acceptable.”
Example
It’s like how people behave or portray themselves on social media, and it is way different in person. Or when you interviewed a group of people about the product that you are about to launch, but when you finally released it, it didn’t generate any sales.
Solution
You can solve this bias by selling a smaller version of your product before launching the premium ones. You can also get honest feedback from your market by giving them multiple ways to talk to you about your product or service.
- Framing Effect
This happens when a similar product, service, or information gets different results because it was presented differently. Apparently, the way you present something is more important than what it really is.
Example
Imagine when a teacher gives out a different version of a test. It reduces cheating, and at the same time, it will tell that teacher what type of exam her students will excel at (true or false, multiple choice, and so on).
Solution
The easy way to solve this bias is to create different versions of your offer. Simple tweaks like changing your headlines or the creatives on your page could make a huge impact.
- Knowledge Bias
This marketing bias occurs when we go for a more familiar and famous choice.
Example
The best example of knowledge bias is big brands like Coke, Apple, Google, etc.
Solution
You can solve this bias by getting testimonials that matter most to your ideal customers. Another way is to highlight people who your target market wants to be like “someday.”
Conclusion
To wrap this all up, always keep these five marketing biases and the solutions to overcome or compensate for each one. The key here is to always test and NEVER assume anything about your market…unless you have enough information to back up your assumptions.
What is your best takeaway from this post? We would love to know in the comments section. Don’t forget to share this with your fellow marketers!
