Five-Step Marketing Model - Why Every Business Should Incorporate It

Five-Step Marketing Model – Why Every Business Should Incorporate It

The five-step marketing model is a theoretical plan of action for businesses and organizations to plan for and execute the different aspects of their marketing strategy. It helps optimize the use of existing resources and grow customer relationships through more focused communication.

In general, an organization’s marketing strategies incorporate these steps to improve customer perception of its products and brands, besides building stronger relationships with customers.

This model is used in all stages of a business to ensure its success, from product launch to promotion through sales channels.

Also, it’s important to separate the concept of five-step marketing strategy from the five Ps of marketing. The 5ps of marketing represent the marketing mix of product, price, place, promotion, and people, while in the five-step marketing process, each step represents a distinct area on which a company must focus for optimal results, including:

  1. Identifying customers
  2. Understanding the needs and wants of those customers
  3. Matching products or services to fulfill consumer needs.
  4. Communicating these offers to potential clients so they can take advantage of them.
  5. The fifth and final step in the marketing cycle is to engage and retain customers.

It’s important to mention that the marketing process cannot be reduced to a model. Change is constant, so businesses must adapt their marketing processes to reflect these shifting conditions.

The five-step marketing model is often referred to as an essential piece of the “marketing plan”, and it forms the basis for many business plans and marketing strategies.

Without further ado, let’s take a look into the steps details.

1. Identifying Customers

Identifying customers is figuring out who your customer is, what they want, and what will make them come back again and again. 

The business must research its existing customers to find out what they like and dislike about the company, their demographics, and whether they are considered valuable to the company.

It must also determine who it wants to target in the future based on these factors.

2. Understanding Problems and Needs

Once the company figures out its customer, it must understand what exactly it is that the customer wants or needs. The business must determine these wants and needs through research and analysis of the products and services that a potential client may be interested in.

Understanding the needs and wants of your customer is an ongoing process, as the needs and wants of your customer can change as time passes. It is essential to continue monitoring and analyzing these changing conditions and incorporating them into your business to continue to meet the demands of the market.

3. Matching Products Or Services To Fulfill Needs

Once a business understands its customer’s needs and wants, it will match products and services to fulfill those needs. Matching products or services means making a product or service that meets the demands of the consumer. To do so, the company must understand its strengths and weaknesses and what other companies in its field offer.

Matching products or services to fulfill needs is done by the planners. It is a complex task involving many aspects of the business involved in various stages of creating a product/service offering to address a need.

4. Communicating These Offers To Potential Clients So They Can Take Advantage Of Them

Once a company matches a product to a consumer’s needs, it must communicate what it is to appeal to the potential client. The business must find out which channels the customer prefers to respond on time and show the exact value of its product or service offering.

Communicating with potential customers may either be done by marketing or sales personnel. This process allows businesses to make their offers appealing to consumers because they will think highly of what they offer.

It also means that the potential client will be more likely to invest in the product/service offering, making them feel like their needs are being met.

5. The Final Step Of The Marketing Cycle Is Engaging And Retaining Customers

The final step in the marketing cycle is to engage and retain customers. After a company’s product or service offering is successfully communicated to the client, the company must engage the potential client to maintain the client’s interest in the product/service offering.

The goal of engaging and retaining customers is to make sure that the potential client is satisfied with their purchase. This is done by having an excellent relationship with the customer and ensuring that any issues or problems are quickly resolved. If a company can do this, its clients will become more loyal to it and will be more likely to buy from it in the future, making all of its efforts worthwhile.

While there are many potential techniques for this step of the marketing cycle, it is usually the most neglected aspect of marketing for new businesses.

Although the above five-step marketing model is the most commonly used format, you should take two more steps to have a successful marketing strategy. These steps are as follows.

6. Understanding Competition

Competition is a constant dilemma for many businesses. Some businesses may not find a product or service that meets a need in a competitive market and may not survive or grow for very long.

Competition is one of the most important aspects of a marketing plan. An organization can create a marketing plan and execute a series of strategies without ever understanding its competition in the marketplace.

This has led to many businesses overestimating their competition but never taking their rivals seriously enough to plan a competitive strategy.

7. Envisioning The Future.

In this step of the marketing cycle, business leaders plan what they can do to shape their offerings and meet customer needs in the future. 

This is done by consistently looking at the business environment for changes in technology, demographics, consumer behavior, product or service offerings by competitors or others in their industry. It may also include market research and analysis as well as the gathering of feedback from customers.

Final Thoughts

This article explained what a five-step marketing model is and discussed how a business benefits by following this marketing model. 

The marketing process described above is used by most companies today. To ensure that these steps are incorporated into an overall marketing plan, businesses must analyze their strengths and weaknesses. They must also examine the needs and wants of their customers.

The marketing plan is a road map for the organization to accomplish its goals. Companies must understand their customers and their competitors to match products or services to potential customers’ needs and wants.

These steps are necessary to distinguish themselves from their competitors and obtain a loyal customer base.