AIDA + R MODEL(MARKETING)
AIDA + R MODEL(MARKETING)
The AIDA model is
perhaps the best known marketing model amongst non-marketers of all the classic marketing models we featured in our recent post and poll. The vote showed many
marketers find it useful too, 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:
also called it attention.
It is creating brand awareness or affiliation with
your product or service.
Interest: generating interest in the benefits of your product or service,
and sufficient interest to encourage the buyer to start to research further.
Desire (sometimes called "decision"): You’ve grabbed their
attention, and you've kept it. Now, it's your job to create desire for your
product or service through an 'emotional connection', showing your brand
personality. Move the consumer from 'liking' it to 'wanting it'.
Action:
CTA - Move the buyer to interacting with your company and
taking the next step i.e. downloading a brochure, making the phone call,
joining your newsletter, or engaging in live chat etc. After demonstrating the product, and convincing you that you need it,
they close the sale with an amazing offer. This is the Call To Action (CTA). They'll start
out with a high price, chop it down again and again until it's a third of the
original price, and then give you a two-for-one deal and free shipping. You're
officially on the hook at that point.
Retention: We all know that this is the key to up sell, cross-sell, referrals,
Advocacy and the list goes on as companies are also focussing on LTV.
The
additional "R" is sometimes added by some Marketers to show the
importance of ongoing relationship building to give the AIDAR model.
How to
use the AIDA model
So how
can this are applied to marketing planning?
It could be
referred to as a communications model rather than a decision-making model, as
it's identifying to companies, how and when to communicate during each of the
stages as consumers will be using different platforms, engaging at different touch
points and requiring different information throughout the stages from various
sources.
So using this
to help plan your tailored and targeted communication campaign may be a start.
Exercise-
Ask the following
question to yourself:-
Awareness:
·
How do we make buyers aware of our products or
services?
·
Which tools or platforms do we use?
·
What should the messages be?
Interest:
·
How will we gain their interest?
·
Social proof available to back up our reputation?
·
How do we make this information available and where
? I.e. on website, via videos, customer ratings,
Desire:
·
How do we interact personally to make an emotional
connection?
·
Online chat?
·
Immediate response to Twitter feed?
·
Share tips, Customer’s feedback and advice?
Action:
·
What is the call to actions and where do we place
them?
·
Is it easy for consumers to connect and where would
they expect to find it?
·
Think about which marketing channel/platform you
are using and how to engage i.e. Across emails,
website, landing pages, inbound phone calls etc.
Retention:
·
What is the proposition to retain loyalty?
References
Porter's five forces analysis is a framework for analyzing the level of competition within
an industry and business strategy development. It draws upon industrial
organization (IO) economics to derive five
forces that determine the competitive intensity and therefore the
attractiveness of an industry. Attractiveness in this context refers to the
overall industry profitability.
Porter refers to these forces as the micro environment, to contrast it with the more general term macro
environment. They consist of those
forces close to a company that affect its
ability to serve its customers and make a profit.
Competitive
Rivalry:
Clearly a key factor in competitive intensity will be competitive
rivalry. So what do marketers need to consider?
·
How many competitors do you have?
·
Do you have a solid competitive
strategy in place?
·
Are you being innovative in order to
give you the competitive advantage?
·
Do your competitors have more
advertising resources?
·
Is there a difference in quality?
·
Are yours or their customers loyal?
Threat
of New Entrants:
If an industry is perceived as
attractive then of course new entrants are highly likely to appear. If too many
new entrants appear then profitability across the industry will be lowered and
the attractiveness will decline. The threat of new entrants can be lowered or
even blocked by the largest companies that have somewhat of a monopoly over the
industry. Marketers will need to consider:
·
Are there many
entry barriers? High entry and low exit barriers makes for an attractive
industry. Entry barriers may include rights, patents, technology protection
etc.
·
Do you have
customer loyalty?
·
Do you have specialist
knowledge that can be used to differentiate you?
·
Is there evidence
of economies of scale in play in your industry?
·
Is there any
Government policy in place to either encourage or discourage new entrants?
Threat of
Substitution:
Customers may choose to substitute
your product or service for another. This is not the same as switching to a
different company to use the same product but switching products entirely. For
example switching from a regular phone to a smartphone, or from a sugary snack
to a healthy alternative snack. The more products that continue to appear, the
higher the chances your customers will be drawn to an alternative from their
usual choice. How can marketers confront this?
·
How many substitute
products to your own are there?
·
Is there a
perceived level of differentiation?
·
Is there a cost to
the buyer for switching?
·
How easy is it for
the buyer to switch?
Supplier Power:
We all have suppliers, whether it is
raw materials, knowledge support or physical staff labour. Marketers know that
a great deal of research and consultation will be done in order to attain the
best suppliers at the best price. But what if there is very little choice of
suppliers? The fewer suppliers there are, the more power they have over you and
the prices they charge. Marketers should consider:
·
How many suppliers
are available to you?
·
What are the sizes
of the suppliers available to you?
·
What are the costs
to both you and them for switching suppliers?
·
What is the
strength of your distribution channel?
Buyer Power:
When the buyers themselves have power
they can apply pressure to companies, in particular pressure to lower their
prices. If the buyer has many choices of products and companies then their
power is high. If buyers decide to join together so that a large portion of the
market share is putting pressure on companies then they again have high power.
How can marketers prepare for this?
·
How many buyers do
you have?
·
How price sensitive
are your buyers?
·
What information is
available to you on your buyers?
·
What differentiates
you from your competitors?
So you can see how this tool may prove
useful for marketers and strategy consultants. It allows them to see their
current strategic position and plan for the future by acting on their strengths
and addressing their weaknesses. It can be especially useful when considering
entering a new industry in highlighting how likely you are to succeed. Of
course other tools would also be beneficial for assessing issues outside of
competitive intensity when planning any kind of strategic action plan.
References
A PESTEL analysis is a
framework or tool used by marketers to analyse and monitor the
macro-environmental (external marketing environment) factors that have an
impact on an organisation. The result of which is used to identify threats and
weaknesses which is used in a SWOT analysis.
PESTEL stands for:
·
P
– Political
·
E
– Economic
·
S
– Social
·
T
– Technological
·
E
– Environmental
·
L
– Legal
All the external
environmental factors (PESTEL factors)
Political
Factors
These are all about how
and to what degree a government intervenes in the economy. This can include –
government policy, political stability or instability in overseas markets,
foreign trade policy, tax policy, labour law, environmental law, trade
restrictions and so on.
It is clear from the list
above that political factors often have an impact on organisations and how they
do business. Organisations need to be able to respond to the current and
anticipated future legislation, and adjust their marketing policy accordingly.
Economic
Factors
Economic factors have a
significant impact on how an organisation does business and also how profitable
they are. Factors include – economic growth, interest rates, exchange rates,
inflation, disposable income of consumers and businesses and so on.
These factors can be
further broken down into macro-economical and micro-economical factors.
Macro-economical factors deal with the management of demand in any given
economy. Governments use interest rate control, taxation policy and government
expenditure as their main mechanisms they use for this.
Micro-economic factors
are all about the way people spend their incomes. This has a large impact on
B2C organisations in particular.
Social
Factors
Also known as
socio-cultural factors are the areas that involve the shared belief and
attitudes of the population. These factors include – population growth, age
distribution, health consciousness, and career attitudes and so on. These
factors are of particular interest as they have a direct effect on how
marketers understand customers and what drives them.
Technological
Factors
We all know how fast the
technological landscape changes and how this impacts the way we market our
products. Technological factors affect marketing and the management thereof in
three distinct ways:
·
New
ways of producing goods and services
·
New
ways of distributing goods and services
·
New
ways of communicating with target markets
Environmental
Factors
These factors have only
really come to the forefront in the last fifteen years or so. They have become
important due to the increasing scarcity of raw materials, pollution targets,
doing business as an ethical and sustainable company, carbon footprint targets
set by governments (this is a good example were one factor could be classes as
political and environmental at the same time). These are just some of the
issues marketers are facing within this factor. More and more consumers are
demanding that the products they buy are sourced ethically and if possible from
a sustainable source.
Legal
Factors
Legal factors include -
health and safety, equal opportunities, advertising standards, consumer rights
and laws, product labelling and product safety. It is clear that companies need
to know what is and what is not legal in order to trade successfully. If an
organisation trades globally this becomes a very tricky area to get right as
each country has its own set of rules and regulations.
After you have completed
a PESTEL analysis you should be able to use this to help you identify the
strengths and weaknesses for a SWOT analysis.
References
http://www.professionalacademy.com/blogs-and-advice/marketing-theories---pestel-analysis
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