The document discusses how the introduction of psychoanalysis in the early 20th century changed marketing by leading to the creation of market segments based on psychological profiles rather than just demographics. Marketers now use sophisticated psychological techniques revealed by psychoanalysis to motivate consumers and target specific market segments by appealing to irrational wants rather than just rational needs. Key figures like Edward Bernays and Ernest Dichter pioneered using psychology to shape consumer desires and persuade the public, which was believed to support democracy by fueling economic growth.

1. Marketing to women -- and everyone else -- changed
dramatically in the early to mid 20th century with the
introduction of psychoanalysis as described in an old, but still
relevant 4-part documentary entitled "The Century of the Self."
The psychoanalysis field led to the creation of market segments
based on psychological and behavioral information, which are
far richer than the traditional demographic segmentation
information. We still use demographic segmentation to describe
target markets, but today's sophisticated marketer uses much,
much more than just demographics.
1. The assumption that "the masses in America are
fundamentally irrational" led to the use of psychological
techniques to control irrationality in mass communications
(advertising and public relations). Do you think Americans are
fundamentally irrational? For example, is it irrational to see
expensive BMWs and Mercedes Benz autos in the Walmart
parking lot? Support your answer with personal observations or
citations.
2. American psychologist Edward Bernays is called the father of
mass persuasion. His contribution (and that of fellow
psychologist Ernest Dichter) to advertising changed how
products are marketed from a "needs-only" basis to a "wants"
basis. This change was thought at the time to be a savior of
American democracy. Dichtersaid, "The consumer may have
basic needs that the consumer himself or herself doesn’t
understand. Is it wrong to give people what they want by taking
away their defenses?” What is your answer to his question?
3. What have you learned from the video about the use of
psychology in marketing that motivates marketers to target
certain market segments? "The Engineering of Consent" video:
https://www.youtube.com/watch?v=9WBPNLQgfGY
Note: You may also want to watch the first segment of the 4-
part documentary entitled "The Century of the Self -- Happiness
Machines" for further understanding. It is quite interesting and
you get to see a lot of very old films from the early part of the

2. 20th century. "Happiness Machines" video:
http://freedocumentaries.org/documentary/bbc-the-century-of-
the-self-happiness-machines-season-1-episode-1#watch-film