Which marketing models should you use for your strategy?
If you’re a marketing manager, you’d know that there are a plethora of models that are available to help define your marketing strategy. Because of this, it can be difficult to choose which one suits your marketing needs.
We’ve put together a list of 5 models you can use now to help you create the perfect marketing strategy for your business.
Why use marketing models?
Firstly, a marketing model is a framework that can help you outline your goals, define the platforms you use, and make sure that you are staying on track.
If you’re struggling to make a start on your marketing strategy, or if you think the one you’re using isn’t as effective as it once was – then using a marketing model can help you create a strategy that can make your business grow and reach its goals promptly.
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5 Marketing models to use in marketing strategy
1) 7Ps (Marketing mix)
This marketing model is probably one of the most known models in marketing.
Traditionally it was known as the 4Ps:
Product: How can you develop your products or services
Price: How can we change our pricing model
Place: What new distribution options are there for customers to experience our product
Promotion: How can we add to or substitute the combination within paid, owned and earned media channels
Soon it evolved to include 3 more parts:
People: Who are our people and are there skills gaps
Processes: Are there internal process barriers in the way of delivering the best customer value
Physical Evidence: How we reassure our customers, e.g. impressive buildings, well-trained staff, great website
Image source: Showet.com
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2) Boston Consulting Group Matrix
You’ve heard of something that’s been described as a ‘Cash Cow’, right? Well, it’s because of The Boston Matrix marketing model!
The product portfolio matrix helps marketers with long-term strategic planning. Smart Insights describe its purpose as helping a “business consider growth opportunities by reviewing its portfolio of products to decide where to invest, to discontinue, or to develop products”.
This approach is why it’s sometimes called the Growth/Share Matrix. The matrix is divided into 4 parts based on Relative Market Share and Market Growth Rate.
The 4 parts of this marketing model are:
- Dogs: These are products with low growth or market share
- Question marks or Problem Child: Products in high-growth markets with low market share
- Stars: Products in high-growth markets with high market share
- Cash cows: Products in low-growth markets with high market share
Image source: Smart Insights
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3) Brand positioning map
A brand positioning map (or perceptual map) is a tool that helps marketers visualise the way their customers, or potential customers, may perceive the brand.
This marketing model can help marketers visualise their brand positioning against their competitors in the market.
This is done by plotting the perceptions that customers may have of the brand on a map.
The example below shows clothing brands, and where they sit in terms of price and quality. You can now visualise how M&S is perceived to have both high price and quality, whilst Primark is perceived to be on the lower end.
Image source: Fmckeiraobrien
4) PESTLE
A PESTLE analysis will look at the external environment and how it affects the business.
PESTLE stands for:
- Political,
- Economic,
- Social,
- Technological,
- Legal & Environmental.
It can guide people, professionals, and senior managers in strategic decision-making. If your company is thinking about launching a new product or service, using a PESTLE analysis can help you understand external factors that could affect your business.
For example, if you were looking at economic factors, you could look at if the rising inflation rate would affect your business or the market you’re doing business in.
Source: Management Weekly
5) Porter’s Five Forces
Porter’s 5 forces surprisingly has 5 parts to it! It’s used for analysing a company’s competitive environment.
Unlike other marketing models that can be used, Porter’s 5 focus looks externally at what could affect your profitability.
The 5 parts of this model are:
Competitive Rivalries: the strength of competition in the industry.
Threat of new entry: the ease with which new competitors can enter the market
Supplier power: the ability of suppliers to drive up the prices of your inputs and raw materials.
Buyer power: the strength of your customers to drive down your prices.
Threat of substitution: the extent to which different products and services can be used in place of your own.
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How can Copper Bay help you get on the right track?
We’ve worked with many clients to help them put together a strategy based on particular models that suit their business and goals.
Whether you want a strategy created to implement yourself, or if you need continued marketing support to help you reach your goals and save you time, we’re here to help!
