A marketing model is a tool that advertisers, merchants, and brands may use to determine how strong their business is and how much money it can make. In addition, it provides us with a framework for evaluating how we’re doing things currently compared to our competition and planning future growth initiatives.
Marketing, communication science, and consumer behavior theories may assist us in better understanding client demands, creating and delivering value, running a business, and managing a brand. We outline six marketing models in this article to help you choose the right one for you and your company.
What Is A Marketing Model?
A marketing model is a technique used by advertisers and businesses to determine their company’s strength and earning potential. The overall strategies and parameters involved in advertising a company and its products are examined using marketing models.
Marketing models are designed to assist marketers in defining their marketing strategy, deciding which segment of the market to target, predicting the impact of specific activities on customers, and generating revenue estimates. First, however, you must understand the difference between marketing and advertising if you want to use a marketing model successfully.
Top 6 Marketing Models To Generate Profit For Your Business
Just like cash crops, you use marketing models to sell your product in the market to generate more profit from it. But, there are so many marketing models to choose from. So, you may need to try a few before finding one that meets your company’s goals and needs.
1: 7P Marketing Model
From local businesses to MNCs- everyone uses the 7Ps marketing model to create goals, conduct competitive analysis, and perform a SWOT analysis. This framework is utilized to develop a robust marketing strategy from strategy conception to implementation. There are seven elements here: product, price, place, promotion, people, process, and physical evidence.
This marketing strategy combines marketing elements more straightforwardly, making marketing more accessible. It aids in the entire process, from strategy conception through execution. Using this framework, a corporation may learn to adjust its marketing operations in response to market conditions, client requirements, and resource availability.
We believe it is appropriate that this be at the top of the list since it is still commonly used and is a straightforward approach to consider how a firm offers its products. However, it has a push attitude that aligns with the current digital marketing tactics.
2: STP Marketing Model
Segmentation, targeting, and positioning are acronyms for the STP marketing model. It’s a common top-down technique that focuses on how a firm interacts with customers. STP employs a three-step methodology to offer relevant, customized messages to targeted groups.
The first phase is market segmentation, in which marketers identify critical features for each market category. The division of your market by age is an example of market segmentation, e.g., Gen Z, millennials, baby boomers, etc. Targeting is the next phase. Determine which group or groups are most responsive to your product and build a specific strategy for positioning your product in front of that group.
Positioning is the final step of the ‘STP’ marketing model, and it focuses on how the consumer sees your product in contrast to your rivals. Thus, it is the essential step as if you do it right; you’ll get a competitive edge in the market.
3: USP Marketing Model
The premise of a brand’s unique selling proposition is that it should be evident to potential consumers why they are different and better than the competition. Because the primary brand message is often unclear, this marketing model offers a simple notion and an important message to deliver online.
When a salesperson identifies the USP of the product itself, it becomes much simpler for him to sell it convincingly. That’s why serial entrepreneurs prefer this model. Even buyers are more likely to return for a future need if you advertise using the USP marketing model.
People purchase the product or service that best meets their wants and provides the most value for their money. So, your revenue is likely to rise or surpass your estimates when you give a distinctive selling proposition that prospects can plainly recognize.
4: AIDA Marketing Model
The consumer is nearly exclusively the emphasis of the AIDA marketing model. Awareness, interest, desire, and action are the components in this model. These are the four stages that a buyer goes through when buying a service or a product.
Retention is a stage in some models that addresses a buyer’s decision to make repeat purchases and build brand loyalty. This approach is distinct as it recognizes the impact of social media on buyer-seller connections and includes it into your revenue model.
Social media users may now remark and share on a company’s post, so sellers aren’t the only ones spreading the word about their items. Consequently, other consumers may contribute content and form online communities that influence purchasing decisions. So, the AIDA marketing model makes consumers indirect brand advocates, which is highly profitable.
5: Kotler Five Product Level Marketing Model
The core advantage is the first level in this marketing model. It denotes the services that the consumer is really purchasing. For example, when a traveler pays for a hotel room, he buys relaxation and sleep. The marketer must transform the main benefit into a simple product at the second level. For example, a hotel room has a bed, a bathroom, and towels.
At the third level, the marketer creates an anticipated product, which consists of characteristics that customers should expect when purchasing this product. For example, the hotel bed must be clean, the towels should be clean and dry, and other amenities to excite the traveler.
The marketer creates an enhanced offering that exceeds client expectations at the fourth level. For example, the hotel could offer 24/7 room service for the guest. With all the various augmentations and changes, the prospective product is located at the fifth level. Companies are looking for innovative methods to serve customers and differentiate their offerings. For example, the hotel could assign a personal housekeeper to the guest.
6: SOSTAC Marketing Model
Situation, objectives, strategy, tactics, action, and control are the components of the SOSTAC model. As a result, it is a valuable marketing model for reviewing your process and identifying flaws. In fact, if you want to know how to make money in stocks, SOSTAC is the model to look for.
You must identify existing conditions, formulate your goals, develop your strategy, state how you plan to execute your strategy, take action, and evaluate these stages if you use this model. In addition, it will help you verify you’re reaching your goals within the set timeline or not.
One of the keys that have led to many people relying on this technique for digital marketing because it offers a clear framework for the job that can be shared and developed collaboratively by the team members. In addition to being simple to understand, it is regarded as the primary source of information for understanding workflow in the overall marketing strategy.
Marketing models help organize corporate concepts and discuss sales tactics. In addition, a dynamic marketing model may be an essential tool in anticipating your company’s performance. That’s why we have articulated the top 6 marketing models on this list so that you can start your marketing campaign in a profitable notion in 2022.