What Is Marketing? · Part 5

    The Psychology of Marketing and the People Who Shaped It

    Marketing is applied psychology. The channels change every decade; the human brain does not. Most of what works on a website or in a Google ad today was first worked out in print a century ago by a handful of people.

    By John Frazee, Founder of Love.Marketing · Updated October 26, 2026

    Some of them used it well. Some used it to mislead, and that history is worth knowing too.

    The people

    Edward L. Bernays

    1891 to 1995

    Public opinion can be shaped

    Often called the father of public relations, Bernays was Sigmund Freud's nephew on both sides of his family (History Today; Britannica). He wrote Crystallizing Public Opinion (1923) and Propaganda (1928), and in 1947 published an essay titled "The Engineering of Consent" (SAGE Journals). His famous stunts include the 1929 "Torches of Freedom" Easter parade, where young women smoked in public for American Tobacco, and soap-carving contests for Procter and Gamble's Ivory (The Conversation). He also ran publicity for United Fruit before the 1954 coup in Guatemala (Boston University). Historians note that the impact of some stunts was inflated, often by Bernays himself.

    What it means for you: People trust third parties (experts, customers, the press) more than ads. Use that honestly.

    Ivy Lee

    1877 to 1934

    Tell the truth first

    After a 1906 Pennsylvania Railroad wreck, Lee put out a same-day statement and brought reporters to the scene, an approach often called the first modern press release (Britannica).

    What it means for you: When something goes wrong, say so quickly and plainly.

    Walter Dill Scott

    1869 to 1955

    Ads are psychology

    A Northwestern psychologist, Scott published The Theory of Advertising (1903) and The Psychology of Advertising (1908), applying attention, memory and suggestion to ads (EBSCO Research Starters).

    What it means for you: Get attention, be memorable, and tell people exactly what to do next.

    E. St. Elmo Lewis

    1872 to 1948

    AIDA: attention, interest, desire, action

    Lewis is traditionally credited, through a 1925 account by Edward K. Strong, with the sequence attention, interest, desire, action (HathiTrust, Strong 1925).

    What it means for you: A good landing page walks people through those four steps in order.

    John B. Watson

    1878 to 1958

    Emotion and habit

    The founder of behaviorism left Johns Hopkins and joined the J. Walter Thompson agency in 1920, using testimonials and emotional appeals (Britannica; PBS).

    What it means for you: Feelings and habits drive buying as much as facts.

    Claude C. Hopkins

    1866 to 1932

    Test everything

    In Scientific Advertising (1923), Hopkins argued ads should be measured against sales, and he used coupons to track response (Advertising Hall of Fame).

    What it means for you: This is the ancestor of conversion tracking. If an ad cannot be measured, you are guessing.

    Albert Lasker

    1880 to 1952

    Salesmanship in print

    At Lord and Thomas, Lasker championed copywriter John E. Kennedy's 1904 idea that an ad is salesmanship in print (American National Business Hall of Fame; Britannica).

    What it means for you: Your website should say what your best salesperson would say.

    David Ogilvy

    1911 to 1999

    Respect the customer

    Ogilvy started in research at George Gallup's institute, founded his agency in 1948 and wrote Confessions of an Advertising Man (1963) (Britannica). He insisted customers are intelligent and deserve facts.

    What it means for you: Specific claims beat hype.

    Rosser Reeves

    Ted Bates & Co.

    The unique selling proposition

    In Reality in Advertising (1961), Reeves argued every ad should make one specific claim a competitor does not (Advertising Hall of Fame).

    What it means for you: Know your one reason to be chosen.

    Bill Bernbach

    1911 to 1982

    Honest and human

    His agency's 1959 Volkswagen "Think Small" campaign used plain honesty and wit and is credited with starting advertising's creative revolution (Britannica).

    What it means for you: Small brands win by being clear and real.

    Ernest Dichter and Vance Packard

    Motivational research and its critic

    The hidden why

    Dichter used depth interviews to find emotional buying motives (Hagley Museum and Library); Packard's 1957 bestseller The Hidden Persuaders criticized that kind of research (UPI).

    What it means for you: Learn why people buy, openly.

    Theodore Levitt and Philip Kotler

    Marketing as strategy

    Define the business by the need

    Levitt's 1960 Harvard Business Review essay "Marketing Myopia" argued railroads failed by defining themselves as railroads instead of transportation (Harvard Business School). Kotler's Marketing Management (1967) became the standard business-school text (Northwestern Magazine).

    What it means for you: Define your business by the customer's need, not the product you happen to sell.

    Robert Cialdini

    Born 1945

    The principles of influence

    His 1984 book Influence named six principles (reciprocity, commitment, social proof, authority, liking, scarcity) and later added unity (Arizona State University).

    What it means for you: Reviews, credentials and real limits persuade, when they are true.

    Daniel Kahneman and Amos Tversky

    How people really decide

    Biases and loss aversion

    Their research on judgment, biases and loss aversion earned Kahneman the 2002 Nobel prize in economics (Nobel Prize).

    What it means for you: How you frame a price changes how it feels.

    Byron Sharp, Les Binet and Peter Field

    How brands grow

    Be easy to think of and easy to buy

    Sharp's How Brands Grow (2010) argues brands grow by being easy to think of and easy to buy; Binet and Field's IPA research found a roughly 60/40 split between brand building and short-term activation worked best on average (IPA).

    What it means for you: Be remembered, and be easy to reach.

    The principles, in plain English

    PrincipleWhat it meansWhere it comes fromUse it honestly byCaveat
    Mere exposureFamiliar things feel more likableZajonc, 1968Showing up consistently in search, maps and socialWears off with overexposure
    Social proofPeople follow others like themGoldstein, Cialdini and Griskevicius, 2008Real reviews and local examplesFake reviews are illegal under the FTC's 2024 rule
    ScarcityRare things seem more valuableWorchel, Lee and Adewole, 1975Real deadlines and real capacity limitsFake scarcity can break consumer-protection law
    ReciprocityPeople return favorsCialdini, 1984Free, genuinely useful adviceA trick gift backfires
    AnchoringThe first number shapes the restTversky and Kahneman, 1974Showing package options in orderEffect sizes vary
    Loss aversionLosses feel bigger than equal gainsKahneman and Tversky, 1979Showing the cost of doing nothingSize of the effect is debated
    Choice overloadToo many options can stall a decisionIyengar and Lepper, 2000Three clear packages, not twelveA 2010 meta-analysis found the average effect near zero

    Myths we do not repeat

    The ethical line

    Every principle above can inform or manipulate. We use them to make true things clear and easy to act on. The FTC's 2024 rule banning fake reviews and testimonials is a good reminder of where the line sits (FTC).

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    Sources

    1. History Today · historytoday.com/miscellanies/original-influencer
    2. Britannica · britannica.com/biography/Edward-Bernays
    3. SAGE Journals · journals.sagepub.com/doi/10.1177/000271624725000116
    4. The Conversation · theconversation.com/the-manipulation-of-the-american-mind-edward-be...
    5. Boston University · bu.edu/bridge/archive/1998/11-06/features3.html
    6. Britannica · britannica.com/biography/Ivy-Ledbetter-Lee
    7. EBSCO Research Starters · ebsco.com/research-starters/history/scott-publishes-theory-advertising
    8. HathiTrust, Strong 1925 · catalog.hathitrust.org/Record/000475708
    9. Britannica · britannica.com/biography/John-B-Watson
    10. PBS · pbs.org/wgbh/aso/databank/entries/bhwats.html
    11. Advertising Hall of Fame · advertisinghalloffame.org/inductee/claude-clarence-hopkins
    12. American National Business Hall of Fame · anbhf.org/laureates/albert-lasker
    13. Britannica · britannica.com/biography/Albert-Davis-Lasker
    14. Britannica · britannica.com/biography/David-Ogilvy
    15. Advertising Hall of Fame · advertisinghalloffame.org/inductee/rosser-reeves
    16. Britannica · britannica.com/biography/William-Bernbach
    17. Hagley Museum and Library · findingaids.hagley.org/repositories/2/resources/643
    18. UPI · upi.com/Archives/1996/12/13/Author-Vance-Packard-dies/2525850453200
    19. Harvard Business School · library.hbs.edu/working-knowledge/ted-levitt-changed-my-life
    20. Northwestern Magazine · northwestern.edu/magazine/northwestern/winter2003/features/kotler/i...
    21. Arizona State University · news.wpcarey.asu.edu/20210510-godfather-influence-has-new-way-be-mo...
    22. Nobel Prize · nobelprize.org/prizes/economic-sciences/2002/kahneman/facts
    23. IPA · ipa.co.uk/media/14463/long_and_short_of_it_presentation_final_03042...
    24. Zajonc, 1968 · doi.org/10.1037/h0025848
    25. Goldstein, Cialdini and Griskevicius, 2008 · academic.oup.com/jcr/article/35/3/472/1856473
    26. Worchel, Lee and Adewole, 1975 · doi.org/10.1037/0022-3514.32.5.906
    27. Tversky and Kahneman, 1974 · pubmed.ncbi.nlm.nih.gov/17835457
    28. Iyengar and Lepper, 2000 · doi.org/10.1037/0022-3514.79.6.995
    29. Scientific American · scientificamerican.com/article/the-subtle-power-of-hidden-messages
    30. Maslow, 1943, via Classics in the History of Psychology · psychclassics.yorku.ca/Maslow/motivation.htm
    31. FTC · ftc.gov/news-events/news/press-releases/2024/08/federal-trade-commi...