How to use Segmentation, Targeting, and Positioning (STP) to develop marketing strategies
Today, the STP marketing model (Segmentation, Targeting, Positioning) is a familiar strategic approach in modern marketing. It is one of the most commonly applied marketing models in practice, with marketing leaders crediting it for efficient, streamlined communications practice.
STP marketing focuses on commercial effectiveness, selecting the most valuable segments for a business and then developing a marketing mix and product positioning strategy for each customer group.
As Martech continues to develop, so do opportunities for segmentation, targeting, and positioning. So whether you're brand new to STP or a seasoned veteran, it can be useful to take stock and double-check you're utilizing every chance you get to reach, interact with, convert, and engage customers.
But, how do you know which customer segments to focus on? We recommend using personas to identify your…
How to use the power of the 70:20:10 rule as a marketing model to prioritize your digital marketing strategy
With new marketing tools and techniques available to us almost daily, it can be difficult to know where to prioritize your marketing activities to get the most 'bang for your buck'. This is where the 70:20:10 rule can really help, since it's a simple device which helps us think through how we prioritize the time and budget we put into different marketing activities.
As marketers, we need to be agile through reacting to new developments in order to gain an upper hand on competitors, but at the same time, we need to avoid being 'technology magpies' following seductive, shiny new tools that may distract us from working on optimizing the most effective channels. By splitting your spending or output into three differently sized areas, it helps you to identify priority areas, and allocate…
Learn how to create a PESTLE analysis to identify threats and opportunities in the macro environment to guide your marketing planning
You may have heard PESTLE mentioned when studying marketing theory or in your workplace. It is a powerful, yet simple, analysis tool for overall business and marketing planning. In this blog we explain what it is, why it is useful, and how you can create your own PESTLE analysis for marketing planning today.
What is a PESTLE analysis?
PESTLE is an acronym that covers 6 key areas in your macro (external) environment. Each letter stands for a different factor, as shown in the graphic below:
Did you know? Sometimes it is referred to as a PEST analysis, or spelt ‘PESTEL’, but the most common acronym is PESTLE.
A PESTLE analysis is a framework to help you identify external factors - happening outside…
What is the 7Ps Marketing Mix and how should it be used?
The marketing mix is a familiar marketing strategy tool, which as you will probably know, was traditionally limited to the core 4Ps of Product, Price, Place and Promotion. It is one of the top 3 classic marketing models according to a poll on Smart Insights.
It's an essential part of a marketing plan structure that defines the tactics to be used to implement the marketing strategy.
The traditional 7Ps of marketing consist of:
Product
Promotion
Price
Place
People
Process
Physical evidence
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Who created the 7Ps marketing mix model?
The 7Ps marketing model was originally devised by E.…
AIDA model explained: Examples and tips for using this strategic marcomms planning model the real world
The AIDA model, tracing the customer journey through Awareness, Interest, Desire and Action, is perhaps the best-known marketing model amongst all the classic marketing models.
Many marketers find AIDA useful since we apply this model daily, whether consciously or subconsciously, when we're planning our marketing communications strategy.
What is the AIDA model?
The AIDA Model identifies cognitive stages an individual goes through during the buying process for a product or service. It's a purchasing funnel where buyers go to and fro at each stage, to support them in making the final purchase.
It's no longer a relationship purely between the buyer and the company since social media has extended it to achieving the different goals of AIDA via information added by other customers via social networks and…
Using Kotler's Pricing model to review positioning
Also referred to as the nine quality-pricing strategy, since it is a matrix covering nine options, the aim of Kotler's Pricing model is to help companies position their products or services relative to competitors as perceived by the market, and consider their pricing strategy accordingly.
You can use the Price - Quality Strategy Model to review competitors’ products and services and review their strategies. Why do they charge more? Why do they charge less? Sometimes if aspects of a service are removed, this can contribute to lower prices.
What are the 9 Pricing strategies?
The nine pricing strategies are shown below, relating price against quality.
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Our summary below reviews the most frequently used strategies based on the different objectives:
1. Maximum current profit objective
A Premium strategy (top-left) is used for this objective. Typically, there are few competitors…
Learn how you can use the Product Life Cycle (PLC) marketing model to project changes in the perception and use of your products
The Product Life Cycle describes the stages of a product from launch to being discontinued. It is a strategy tool that helps companies plan for new product development and refine existing products.
What are the stages of the Product Life Cycle?
Introduction
Growth
Maturity
Decline
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New Product Development
The new product development stage occurs before the product's life-cycle begins, consisting of market research leading up to product launch. Hence this stage can include:
Reviewing…
Examples of using the BCG Matrix (Growth Market Share Matrix) to review your product portfolio
What is the BCG Matrix?
The Boston Consulting group’s product portfolio matrix (BCG matrix) is designed to help with long-term strategic planning, to help a business consider growth opportunities by reviewing its portfolio of products to decide where to invest, to discontinue, or develop products. It's also known as the Growth/Share Matrix.
The Matrix is divided into 4 quadrants based on an analysis of market growth and relative market share, as shown in the diagram below.
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1. Dogs: These are products with low growth or market share
2. Question marks or Problem Child: Products in high growth markets with low market share
3. Stars: Products in high-growth markets with high market share
4. Cash cows: Products in low growth markets with high market share
Strategic marketing models for…
The Ansoff Model is a matrix that helps marketing leaders identify business growth opportunities for their marketing strategies in a challenging market
What is the Ansoff Model?
Also referred to as the Ansoff matrix, due to its grid format, the Ansoff Model helps marketers identify opportunities to grow revenue for a business through developing new products and services or "tapping into" new markets. So it's sometimes known as the ‘Product-Market Matrix’ instead of the ‘Ansoff Matrix’.
The Ansoff Model's focus on growth means that it's one of the most widely used marketing models. It is used to evaluate opportunities for companies to increase their sales through showing alternative combinations for new markets (i.e. customer segments and geographical locations) against products and services offering four strategies as shown.
How to use the Ansoff Matrix
Strategic questions that can be answered using the matrix include:
Market Penetration:…
McKinsey's consumer decision journey model helps you identify the moment of purchase, while the RACE Framework helps you build a strategy to get there. Use these customer journey models to win more customers
Based on empirical research, in 2009, McKinsey & Company suggested dramatic alternative customer journey models to the traditional purchase funnel. Their research was founded on interviews with 20,000 businesses in the USA, Germany, and Japan.
They recommended a loop model instead of the usual straight-line approach from awareness, purchase, and loyalty. This was a dramatic change although many companies are still, many years later, working on the usual linear approach in a non-linear world.
This is one of the most widely referenced digital marketing models mentioned by brands and agencies, so we use it to start this section. It has spawned many imitative customer journey models including Google’s ZMOT and The Loop from the Pedowitz Group.
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