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Back to the psychological basics of marketing


Merline Stone writes...

In my latest research into how marketing works, I’ve gone back to one of popular psychology ideas of the 1950s and 1960s. This is “transactional analysis”. It is a theory about personality, personality development and communication. Its ideas were developed by Eric Berne in the 1950s, published in his Transactional Analysis in Psychotherapy (1951), then popularised through his later books, notably “Games People Play, The Psychology of Human Relationships” (1964), What Do You Say After You Say Hello? (1972), and those of his disciples (e.g. Thomas Harris, I’m OK, you’re OK, 1976).

Transactional analysis suggests models to observe and understand everyday communication. Its main ideas relate to: ego states, transactions, games, strokes, drivers and life positions. In this article, I’m going to focus on a couple of these ideas – ego states and transactions.

An ego state is a consistent pattern of feeling and experience. It’s normally associated with particular patterns of behaviour. The three ego states are Parent, Adult and Child.

· The Parent state may be Critical (‘should, ought, must, never') or Nurturing 'there, there sweetie. Try again. It's all right.'

· The Adult state consists of organised, logical, problem solving 'how, why, where, who, what'

· The Child state may be Natural and Spontaneous: "wow, look at me”, or Adapted child : 'if you say so…'

Each ego state may be functional. Creative Child can be valuable in brainstorming situations. Rules of thumb from Parent can help where many unknowns would otherwise lead to progress stalling. However, Child and Parent can be very dysfunctional. The only state always desirable is Adult because it’s aware of the Parent, the Child and the situation. The Adult determines what behaviour is appropriate. So, the lesson is not to stay in Adult state all the time, but to use the Adult to understand the origins and nature of thoughts and feelings and to monitor discrepancies between the current situation and our reactions to it.

A transaction is a unit of social interaction that can be verbal and non-verbal. The initiating message is called the stimulus and the reply is called the response. People communicate with others to meet their needs. The way we communicate depends on our ego states throughout the transaction.

Transactions may be complementary, crossed and ulterior. Complementary transactions are when a message gets the expected response from the other person. Communication proceeds smoothly as long as transactions are complementary. It occurs between two “ego states” which reward one another. Though Adult-to-Adult transactions are most effective, communication and understanding can occur in Parent-to-Child, Parent-to-Parent, or in Child-to-Child complementary transactions.

In crossed transactions, a message sent or behaviour exhibited by one person's ego state is reacted to by an incompatible, unexpected ego state on the part of the other person. Crossed transactions cause much interpersonal conflict. Communication may break down unless one or both individuals change ego state. Crossed transactions may cause hurt and frustration.

Ulterior transactions are when one or both parties are functioning in two ego states at the same time. These transactions are complex and subtle and may be damaging to interpersonal relations. A message will often be superficially adult to adult, with a hidden meaning of parent to child. The words send one message while the voice, gestures send another. There is a difference between what is said and what is meant. For business purposes, communication is most effective when transactions are complementary.

Transactional analysis increases awareness both of the self and of others. It gives you a tool for influencing others. Activating their Child, you stimulate creativity and enthusiasm. Communicating on Adult-to-Adult level you can constructively deal with interpersonal conflict. Awareness of games that are played in organisations can help you achieve better work relationships.

Applying the ideas to sales and marketing

I see two main areas for applying the ideas, both of which suggest moving from a situation in which the supplier and the customer may perceive themselves as parent and/or child, with the risk of crossed transactions. The first area is planning, the second area is in individual supplier-customer interactions. Both these areas are, however, a reflection of the same underlying phenomenon.

In marketing planning and in managing interactions between customers and suppliers, there is often the presumption that the marketer’s job is to “know better than the market”, and “tell it what to do, based on superior knowledge and judgement”.

The supplier’s drive is to be perfect, in the sense of having the best marketing mix, and the customer’s drive is to be perfect, in the sense of getting the best deal or most appropriate offer. This leads to a situation in which customers are offered an inappropriate marketing mix – products, prices, channels etc.

The supplier behaves as parent towards the child customers – “if you don’t buy this product, at this price, use this channel etc., you don’t deserve me as a supplier”. However, the customer senses this, and takes a similar parent view – “because you haven’t understood me, I’m not going to let you sell to me”.

This contrasts with the adult-adult complementary transaction approach, in which each side exchanges information about their needs and plans and over a period arrive at an arrangement which suits them both. They both become OK with respect to each other, and become better at meeting each other’s needs.

I’d like to see more of this thinking in marketing – whether in the design of propositions, channels or marketing communications. I’m sure many suppliers and customers would get on a lot better as a result.

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