Key concepts of behavioral economics:
» The “rational choice model” and its limitation
» System 1 and System 2
» Heuristics and biases
» Framing and Priming
» Anchoring
The process of design thinking
» The overlapping and iterative steps of
exploration, discovery, creation and implementation
» Understanding co-creation
» Using visual thinking and prototyping
» Convergent and divergent thinking
Designing effective marketing solutions relies on two important
processes--understanding and diagnosing the current situation and designing the
solution to achieve the desired results. This seminar uses two of the most
powerful tools to govern these processes:
» Behavioral Economics to understand the current behavior and identify the psychological, social or neurological factors which determine the behavior
» Design thinking for designing the choice architecture to nudge the consumers in the desired direction by overcoming the resistance points and leveraging the possible motivations
Behavioral economics is a multi-disciplinary field to understand decision-making. We tend to believe that consumers make decisions through deliberate and elaborate evaluation of options before them. Hence, we design solutions to bombard them with information based on which we expect they will make the right choice and choose our brand. Behavioral economics tells us that consumers seldom do a complete and rational evaluation of the options they face--they neither have the inclination nor the ability. They make decisions Eased on heuristics and short-cuts, which have been programmed in their mind through the forces of psychology, sociology and neuroscience. Hence if we want to change their behavior we need to understand and address these.
Design thinking is a creative and co-creational process
that helps us design the choice architecture, so that we can help the consumer
navigate to the right choice, i.e. adopt the behavior that we desire. Design
thinking is not just for designers--but everyone who wants to influence a
behavior or a choice. The results of design thinking are not just in the form
of clever communication, but could impinge on any area of consumer journey or
experience, where the marketer has an opportunity to influence the consumers.
The combination of behavioral economics and design thinking is a potent combination to achieve the desired marketing results--whether it is to win more consumers, persuade them to use the product more often or achieve higher levels of compliance. Familiarity with these two concepts, and expertise to make them work in a symbiotic manner, are a must for any marketing professional.
Senior Marketing professionals
Ashok Sethi, Head of Illuminera Institute
Adele Wu, Director, IlluminHealth
Claire Zhang, Head of THREE INNOVATION
