McKinsey's consumer decision journey can help to model how your customer comes to the moment of purchase and discover what makes buy
Based on empirical research, in 2009, McKinsey & Company suggested a dramatic alternative 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 Iinear 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 imitators including Google’s ZMOT.
How can I use this model?
This model is still used by McKinsey…
Examples and Tips for using AIDA in the real world
The AIDA model is perhaps the best known marketing model amongst non-marketers of all the classic marketing models. Many marketers find it useful, perhaps since we apply it daily whether consciously or subconsciously when we're thinking how to make our marketing communications effective.
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 communities.
What does AIDA stand for?
Awareness: creating brand awareness or affiliation…
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.
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Who created the 7Ps model
The 7Ps model was originally devised by E. Jerome McCarthy and published in 1960 in his book Basic Marketing. A Managerial Approach.
We've created the graphic below so you can see the key elements of the 7Ps marketing mix.
The 4Ps vs The 7Ps
The 4Ps were designed at a time where businesses were more…
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.
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
Members can use our guide exploring…
How to use Segmentation, Targeting and Positioning (STP) to develop marketing strategies
Today, Segmentation, Targeting and Positioning (STP) is a familiar strategic approach in Modern Marketing. It is one of the most commonly applied marketing models in practice. In our poll asking about the most popular marketing model it is the second most popular, only beaten by the venerable SWOT / TOWs matrix. This popularity is relatively recent since previously, marketing approaches were based more around products rather than customers. In the 1950s, for example, the main marketing strategy was 'product differentiation'.
The STP model is useful when creating marketing communications plans since it helps marketers to prioritise propositions and then develop and deliver personalised and relevant messages to engage with different audiences.This is an audience rather than product focused approach to communications which helps deliver more relevant messages to commercially appealing audiences.…
Learn how the PESTLE analysis model can help you assess your business’ place in a variety of environments
PESTLE is one of a well-known series of acronyms used in business and marketing planning which summarizes how to review the broader forces, sometimes known as the 'macro-environment', that can shape a business.
What does PESTLE stand for?
PESTLE stands for:
These are the contexts that a business should assess itself against to review competitors, markets, and the situation in which an organization finds itself.
Environment Factors affecting a business - Source: Chaffey and Ellis-Chadwick - Digital Marketing, Strategy, Implementation, and Practice
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An example of reviewing your marketing capabilities using the McKinsey 7S framework
The McKinsey 7S model is a useful framework for reviewing an organization’s marketing capabilities from different viewpoints. Developed by Tom Peters and Robert Waterman during their tenure at McKinsey & Company in the 1970s, this model works well in different types of business of all sectors and sizes, although it works best in medium and large businesses.
The 7S model can be used to:
Review the effectiveness of an organization in its marketing operations.
Determine how to best realign an organization to support a new strategic direction.
Assess the changes needed to support digital transformation of an organization.
What are the elements of the McKinsey 7S model?
In summary, the McKinsey 7Ss stand for:
Strategy: The definition of key approaches for an organization to achieve its goals.
Learn how you can use the Product Life-cycle model to project changes in the perception and use of your products
The Product Life-cycle (PLC) 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?
The four stages are shown in the table below, although decline can be avoided by reinventing elements of the product. It is also recognized that some products never move beyond the introduction phase whilst others move through the life-cycle much faster than others.
What do the PLC stages mean?
Introducing a new product where it's unknown and products are small. The price is often higher as distribution is limited and promotion is personalized.
Popularity for the product grown, meaning it is being…
Chart of the Day: Strategies and practical factors that support growth of a business - new research
The Ansoff matrix growth drivers
The Ansoff matrix model is a classic marketing model featured in our free top marketing models guide.
Although developed in the 1960s, Ansoff is still useful for considering, at a top level, the strategic initiatives that a business is taking to increase its competitiveness in a sector through identifying new revenue opportunities.
This new research based on the views of Chief Marketing Officers (CMOs) in large US organizations is interesting since it translates the theory of Ansoff into practice, showing how businesses are investing in the four quadrants of Ansoff.
You can see that a market penetration strategy of selling existing products or services into existing markets has the largest investment. This is building on existing strengths and is fine, with the…
Using The Ansoff Matrix to identify growth opportunities
What is the Ansoff Matrix?
This model is essential for strategic marketing planning where it can be applied to look at 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’. This 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: How to sell more of your existing products or services to your existing customer base?
Market Development: How to…