Marketing Hub / Marketing Models

The 20 Marketing
Models That You
Need To Know

Marketing Hub Published June 17, 2022 / Updated June 17, 2022

MARKETING FUNDAMENTALS
Have you ever wondered what a marketing
Purpose Of Marketing
model is? A marketing model is an analysis
Goals Of Marketing
tool businesses use to determine their
Principles of Marketing
earning potential by reviewing their overall
Marketing Mix strategies.
Marketing Mix Examples
There are numerous marketing models that
Pricing Strategy
can help to this end. We’ll review them in this
Types of Marketing
complete guide.
Marketing Models

MARKETING DISCIPLINES

Branding In Marketing Table of Contents

Marketing Management

Marketing Manangement Tips 1. PESTLE Analysis:

Political, Economic,
MARKETING RESOURCES
Socio-Cultural,

Marketing Examples
Technological, Legal, &
Environmental Factors
Marketing Blogs

Marketing Books 2. Anso# Matrix Analysis:

Existing Markets vs.
Marketing Podcasts
New Markets & Existing
Marketing Platforms
Products vs. New
Products

3. Porter’s 5 Forces

WRIT TEN BY
Framework: Entrant
Nathan Threats, Substitute

Ellering Threats, Buyer Power,

Supplier Power, &
Head of Marketing at
CoSchedule. Demand Competitive Rivalry
generation enthusiast,
4. SWOT Analysis:
content marketing
Strengths, Weaknesses,
advocate, and team
player. I love new ideas, Opportunities, &
strategy, and e)ciency. Threats

5. PR Smith’s SOSTAC®
Planning System:
Situation Analysis,
Objectives, Strategy,
Tactics, Actions, &
Control

6. McKinsey 7S
Framework: Structure,
Strategy, Skills, Sta#,
Style, Systems, & Shared
Values

7. Marketing Mix (7 Ps Of
 Marketing): Product,
Price, Place, Promotion,
Packaging, Positioning,
People

8. STP Framework:
Segmentation,
Targeting, & Positioning

9. Brand Positioning
(Perceptual) Mapping:
High Quality vs. Low
Quality & High Price vs.
Low Price

10. USP: Unique Selling

Proposition

11. AIDA Model: Awareness,

Interest, Desire, &
Action

12. Hook Model: Trigger,

Action, Variable Reward,
& Investment

13. RACE Model: Reach,

Act, Convert, & Engage

14. AARRR Pirate Metrics:

Acquisition, Activation,
Retention, Referral, &
Revenue

15. Marketing Funnel

Modeling: TOFU, MOFU,
BOFU
 16. BANT Framework:
Budget, Authority,
Need, & Timing

17. Growth-Share Matrix:

Stars, Cash Cows, Dogs,
Question Marks

18. Product Lifecycle

Theory: Introduction,
Growth, Maturity,
Decline, & Extension

19. Innovation Adoption

Lifecycle: Innovators,
Early Adopters, Early
Majority, Late Majority,
& Laggards

20. Maslow’s Hierarchy Of

Needs: Physiological,
Safety, Belonging,
Esteem, Self-
Actualization

1. PESTLE Analysis:
Political, Economic,
Socio-Cultural,
Technological, Legal, &
Environmental Factors
The PESTLE analysis helps businesses
understand the external factors that can
influence their success and growth. As a
result, it encourages strategic planning
related to timing product launches, making
big business moves, and so on.

These factors narrate a business’s

environment and include its Political,
Economic, Socio-cultural, Technological,
Legal, and Environmental conditions.

Harvard Business School professor Francis J.

Aguilar is often credited as the creator of this
marketing model — having talked about it in
his book, Scanning the Business
Environment.

Aguilar, however, released it as the ETPS

model that covered the broad environmental
factors: Economic, Technical, Political, and
Social.

The acronym and model changed over time,

though. It went from ETPS to STEP (Strategic
Trend Evaluation Process) to STEPE (Social,
Technical, Economic, Political, and
Ecological). Until finally, it morphed into
PESTLE.

2. Ansoff Matrix Analysis:

Existing Markets vs. New
Markets & Existing
Products vs. New
Products

Named after its Russian-American creator,

Igor Anso#, the Anso# Model is a grid format
helping marketers and executives determine
how best to grow in a competitive market.
 To this end, it lays out four growth strategies
in a grid:

Market penetration involves growth in

a market where a business’s
products/services already exist using
strategies like increasing promotion and
decreasing pricing.

Market development is when a

business uses its current
products/services to grow into a new
market, i.e., marketing to foreign
markets.

Product development strategy is when

a business creates new
products/services for the existing
market.

Diversification involves a business

growing into a new market with a new
o#ering. Diversification is the riskiest of
the four strategies.

Because the Anso# matrix helps businesses

evaluate opportunities for expansion and
revenue growth, it also goes by the name of
Product/Market Expansion Grid.

Products Why CoSchedule Resources Pricing

3. Porter’s
Sign In 5 Forces
Get Started Free Get A Demo

Framework: Entrant
Threats, Substitute
Threats, Buyer Power,
Supplier Power, &
Competitive Rivalry

Michael Porter’s 5 Forces framework is an

e#ective tool for helping businesses analyze
their competitive landscape using five key
elements that determine market intensity.
These are:

Competitive rivalry– includes the

number of direct and indirect
competitors a business has

Threats of substitute products– other,

more reasonable, or easier to use
products the target market can use

Bargaining power of buyers– how

much customers can negotiate over
pricing (Service-based businesses are
more likely to have customers with
higher bargaining power)

Threat of new entrants– determined

 by how easy it is for new businesses to
enter a market.

Bargaining power of suppliers– a

measure of the suppliers available to
you that helps you focus on your costs
instead of revenue

4. SWOT Analysis:
Strengths, Weaknesses,
Opportunities, & Threats

SWOTAnalysis:
ASWOTanalysishelpsyouunde
factorsthatcanmakeorbreak
marketinggoal.SWOTisanacro
weaknesses,opportunities,and

W
A brainchild of Albert S. Humphrey,

S
the SWOT analysis is another grid-based
marketing model. It’s used to analyze a
STRENGTHS WEAKNESSES
business’s internal Strengths and
Weaknesses and its external Opportunities
and Threats. CCoSc

The SWOT model helps businesses plan their

operations with its simple yet e#ective
analysis.

Thanks to its usefulness in helping

understand how likely something can win,
the SWOT analysis is also commonly used to
brainstorm and evaluate marketing strategies
and campaigns.

5. PR Smith’s SOSTAC®
Planning System:
Situation Analysis,
Objectives, Strategy,
Tactics, Actions, &
Control

The SOSTAC planning system was developed

in the 1990s and based on PR Smith’s six
marketing facets:

Situation or where a business currently

is

Objectives or where a business wants

to be

Strategy or how a business wants to

get there

Tactics or what ways a business will get

there

Action or the action steps to take to get

a business where it wants to be

Control or the evaluation after

executing the strategy, answering how
a business got there

Given how the SOSTAC framework helps

create tactical plans, it’s not only used for
business planning but also in personal life.
Within marketing, individual marketing
specialists can leverage it too- for example,
email and social media marketers.

6. McKinsey 7S
Framework: Structure,
Strategy, Skills, Staff,
Style, Systems, & Shared
Values
The McKinsey 7S Model is a business
organizational tool developed by business
consultants Robert H. Waterman, Jr. and
Tom Peters.

It helps assess a company’s wellness and

future odds of success based on how strong
its internal structure is.

This internal structure, in turn, is determined

by the following seven elements of a
company — divided into hard and soft
elements based on how easy to manage
they are:

Structure

Strategy

Systems

Skills
 Style

Sta!

Shared values

7. Marketing Mix (7 Ps Of
Marketing): Product,
Price, Place, Promotion,
Packaging, Positioning,
People

Another essential model on this list of

marketing models is the ‘Ps of Marketing’
model or the marketing mix — created
originally by E. Jerome McCarthy. McCarthy
created the original ‘4 Ps of Marketing,’
Product, Price, Place, and Promotion.

Later, Booms and Bitner tweaked the original

model to add the 3 Ps of the services aspect
of a business, Participants, Physical
evidence, and Processes.

Further down the line, these were updated

again to give you the current mix of 7 Ps:

Product

Price

Place

Promotion

Packaging

Positioning

People

This 7 Ps marketing model helps businesses

identify issues that impact their products and
services marketing. Since the 7 Ps change
fairly quickly, it’s best to revisit them regularly
to make sure you’re achieving the best
results possible.

8. STP Framework:
Segmentation, Targeting,
& Positioning
Northwestern University’s professor Phillip
Kotler devised the STP framework to help
businesses identify their target market.

It’s based on three key steps:

Segmentation– pinpoint customer

segments that fit your product

Targeting– organize and prioritize

target segments

Positioning– market your product to

each specific target segment.

The model helps you examine how well your

products/services fit the target market and
how well you’re communicating their value
to specific customer segments.

9. Brand Positioning
(Perceptual) Mapping:
High Quality vs. Low
Quality & High Price vs.
Low Price
A brand positioning map visualizes how your
target customers perceive (think and feel
about) your brand.

Not only does perceptual mapping help with

branding, but it also helps marketers
determine customers’ views of a product. As
a result, the model is also commonly known
as a product positioning map.

Its importance lies in the fact that it helps

explain to your target audience why your
o#ering is the best choice for them and what
sets you apart. If done well, brand
positioning also helps businesses justify their
pricing.

Recommended
Reading: How To Create A
Brand Positioning Strategy
That Will Appeal To The
Right People
10. USP: Unique Selling
Proposition

The Unique Selling Proposition (USP), also

known as the Unique Value Proposition
(UVP), is a distilled statement that explains
your product/service’s selling point.

TV advertising pioneer Rosser Reeves coined

the term, which explains why customers
should buy your product/service while
identifying how you’re better than the
competitors.

11. AIDA Model:

Awareness, Interest,
Desire, & Action

The AIDA model is a hierarchy of e#ects

model created by American businessman,
Elias St. Elmo Lewis, to explain the stages a
prospect goes through during their buying
process.

The model breaks down to:

Awareness, or learning about the

product, through advertising or organic
marketing

Interest, or a prospect learning about

and engaging with a product or service

Desire, or the connection a prospect

starts developing with your product so
that they begin to “need” it

Action, or the time when the customer

either buys from you directly or begins
to interact with your business (for
example, by using the freemium model)
12. Hook Model: Trigger,
Action, Variable Reward,
& Investment

Author, entrepreneur, and behavioral

economist, Nir Eyal created the Hook
Model to help businesses build habit-
forming products.

At the heart of this model is usability design

that determines how product design
encourages specific behavior in four phases:

Trigger to get people to use the

product

Action that satisfies the trigger

Reward — variable by nature — for the

action

Investment that gets the user to click

the trigger again
13. RACE Model: Reach,
Act, Convert, & Engage

The RACE model is the brainchild of Dr. Dave

Cha#ey, the co-founder of Smart Insights, a
digital marketing advice publication. It’s a
framework for strategically planning
marketing activities such as creating PR
plans.

The four steps taken as part of the

framework, Reach, Act, Convert, and
Engage, aim to help businesses engage
customers in di#erent stages of their
journey.

14. AARRR Pirate Metrics:

Acquisition, Activation,
Retention, Referral, &
Revenue

The AARRR framework comprises a set of

behavioral metrics that product-led
businesses should track to improve product
marketing and management.

The acronym was developed by Silicon

Valley investor Dave McClure, who founded
500 startups fast and sustainably.

The metrics are:

Acquisition (or awareness) to

determine how people are discovering
the startup

Activation to evaluate if people are

taking the steps the company expects
them to

Retention to review if users are

consistently engaging with the product
 Referral to measure if satisfied users are
talking about the product

Revenue to understand if users are

willing to pay for the paid product

15. Marketing Funnel

Modeling: TOFU, MOFU,
BOFU

The marketing funnel visually represents how

prospects move through their customer
journey with your business.

The three key stages in the funnel are:

Top of the funnel to help prospects

identify their problem.

Middle of the funnel to market

problem-aware prospects about your
product/service.
 Bottom of the funnel to encourage
close-to-buying customers about your
o#er.

Use the marketing funnel model to plan your

strategies to attract, engage, and convert
prospects using di#erent marketing
materials.

Recommended
Reading: All About TOFU:
What You Need to Know
to Ace Your Top Funnel
Content Game

16. BANT Framework:

Budget, Authority, Need,
& Timing
Created by IBM in the 1950s to identify
opportunities, the BANT framework is a
method to help businesses qualify leads
(individuals interested in working with your
business).

Knowing qualified leads, in turn, helps you

prioritize the right leads. Here’s how the
framework helps with lead qualification:

Budget. Does the business have the

budget to work with you/buy from you?

Authority. Is the person you’re talking

to have the authority to make the
buying decision or, at least, influence
that decision?

Need. What business struggles can you

help reduce?

Timing. When is the prospective

business looking to purchase?

17. Growth-Share Matrix:

Stars, Cash Cows, Dogs,
Question Marks
The growth-share matrix was created by
BCG employees and popularized by the
company’s founder, Bruce D. Henderson, in
an essay titled The Product Portfolio.

It’s a portfolio management framework that

assists businesses in deciding which of their
di#erent businesses or products to prioritize.

It helps businesses by encouraging them to

review various factors such as industry
growth and relative market share to evaluate
business/product growth potential.

18. Product Lifecycle

Theory: Introduction,
Growth, Maturity,
Decline, & Extension
The Product Lifecycle Theory is a set of
strategies used throughout a product
lifecycle (from the time it’s introduced to its
audience to the time it’s removed from
shelves/retired).

This lifecycle breaks down into five main

stages: Introduction, Growth, Maturity,
Decline, and Extension.

By helping you manage strategies

throughout the product lifecycle, this
framework enables you to make informed
decisions and increase ROI and profitability
throughout the lifecycle. It also helps you
maintain and improve customer/user loyalty,
business reputation, and product appeal.

19. Innovation Adoption

Lifecycle: Innovators,
Early Adopters, Early
Majority, Late Majority, &
Laggards
This model is a bell curve model that
explains how di#erent categories of people
react to and adopt new ideas and products.

It helps businesses understand how to get an

idea/product to spread from innovators to
early adopters, to early majority, late
majority, and laggards. Knowing who is
adopting your product helps you plan for
their motivations accordingly.

20. Maslow’s Hierarchy

Of Needs: Physiological,
Safety, Belonging,
Esteem, Self-
Actualization
 Lastly, Abraham Maslow created this
marketing model to explain the five sets of
human needs that need to be fulfilled in a
particular order.

These needs are:

Physiological (food and clothing)

Safety (job security, for example)

Love and belonging (strong networks,

friendships, and social presence, for
example)

Esteem (feeling of accomplishment, for

example)

Self-actualization (achieving full

potential, for instance, through creative
pursuits)

The theory is important as it helps businesses

uncover customers’ motivation to create
emotionally relevant marketing that speaks
to their target audience.

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