Marketing Model

A marketing model is a tool for advertisers and businesses to know how the audience sees their brand. In doing so, they can create proper planning with the understanding of their strength and earning potential. You want your promotion to have an impact on the right audience. It encourages them to take action, such as buying your products to generate revenue projections.  

There are many types of marketing models, but they can be split into two categories: top-down and bottom-up. Top-down focuses on audience demographics and expectations, and bottom-up focuses on what businesses need to do in order to compete in the market. Hence, it is easier for companies to divide the market into segments.

What is the best marketing strategy?

The best marketing model for each company may vary depending on the goals, audience, resources, and industry. First, you have to understand what you want to achieve from the promotion, like increasing brand awareness, generating leads or sales, launching a new product, and many more. It is important that you have to make it specific, measurable, achievable, relevant, and time-bound. 

After you have understood the concept, you can decide on your marketing model. You should pick the one that is comfortable for the business. Make sure it is easier to support you in making decisions and create consistency in messaging, targeting, and resource allocation. Moreover, here are the most common types of the strategy you might find:

7Ps marketing mix

The 7Ps stand for product, price, place, promotion, people, process, and physical evidence. A combination of them can create a powerful business strategy, from conception to evaluation. Therefore, using this marketing model can help you review each aspect of your company to find ways to optimise your planning to meet the goals. Here is a short explanation of each P:

• Product: Refers to the product or service you sell.
• Price: Find how much it costs.
• Place: The place where you buy it from, like an online shop or a warehouse.
• Promotion: Details of the methods for communicating your goods to the target audience.
• People: It is about people who take part in the production, promotion, and distribution of your product.
• Process: Explain the method you use to deliver the product or service to the customer.
• Physical evidence: Whether your business and the customers need proof to make sure they exist, including physical products, receipts, tracking information, and others.

SWOT analysis

This marketing model uses SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis for creating the promotion campaign. Through this method, you can earn external and internal environment data to visualise the planning route. Thus, it guides you to pivot your strengths and minimise your weaknesses to avoid threats and maximise chances. 

Porter's five forces

This marketing model is based on five elements. Those are competitive rivalry, supplier power, buyer power, threat of substitution, and threat of new entry. It is a little bit different from the others because it focuses on gauging profitability. It highlights more influences and competition rather than the product or audience. Here is a breakdown of the forces:

1. Supplier power: Knowing how many suppliers and how big they are, the special service they offer, and the cost of changing your own product.
2. Competitive rivalry: Understanding outside forces to evaluate the performance of your products compared to the overall market.
3. Buyer power: The ability of customers to influence company decisions.
4. The threat of substitution: How your good performs against any alternatives.
5. Threat of new entry: New products or services can challenge your competitiveness in the market.

AIDA

Short for Awareness, Interest, Desire, and Action, mostly focusing on the customer needs. Also, AIDA itself stands for four stages of the process a buyer goes through when purchasing a service or product. This marketing model uses social media for the selling strategies underlying the buyer-seller relationships. 

McKinsey 7-S

In this approach, it outlines seven major elements for creating a successful marketing model. They are strategy, structure, systems, styles, staff, skills, and shared values. Each part connects to the other, showing its importance for them to work together to create the success and adaptability of an organisation. Using this method can show how your marketing effort in every category could impact the others.

Growth-share matrix

This marketing model uses four quadrants to help businesses understand more about their priority. The y-axis shows low to high growth, and the x-axis shows high and low market shares. There are four symbols representing each of the quadrants. They are:

• Stars: Showing chances for high growth and high market share. Usually placed on the top right quadrant, it indicates the best investment opportunities with a high chance for success and stability.
• Cows: Picturing the opportunities with low growth and a high market share. This symbol fills the bottom right quadrant. Cows are to show a large return on income but may not be ideal for further development.
• Question marks: This marketing model uses question mark symbols to show low market share but high growth. Placed on the upper right quadrant to show the chance has unpredictable potential in the current market.
• Pets: Put in the bottom right quadrant, it shows low growth and low market share. It uses animal pets, like dogs, to show that the business should discard or reposition itself from this option.