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What is a Marketing Funnel And How to Create One- Full Guide

NIDMM ~ Modified: July 28th, 2023 ~ Affiliate Marketing ~ 9 Minutes Reading

Understanding the mechanics of a marketing funnel can be instrumental in identifying issues and enhancing your marketing approach. In this comprehensive guide, we will walk you through all the essential aspects of marketing funnels. So, let’s begin!

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What is a Marketing Funnel?

The concept of a marketing funnel visually represents the entire buyer’s journey. It also demonstrates the process through which individuals progress from their initial awareness of your brand to ultimately becoming your valued customers.

Marketing Funnel

The reason the marketing funnel takes on its distinctive shape is due to the inherent nature of people dropping out at each stage. Not everyone who becomes aware of your brand will eventually convert into a customer, leading to the gradual narrowing of the funnel.

Stages Of The Marketing Funnel

The marketing funnel draws its roots from the Awareness-Interest-Desire-Action (AIDA) model, originally formulated by E. St. Elmo Lewis, an advertising advocate, way back in 1898.

Here’s a breakdown of each stage of the funnel:

  • Awareness: This stage occurs when an individual first becomes acquainted with your brand, product, or service.
  • Interest: At this point, someone shows genuine interest in what your product or service offers.
  • Desire (Consideration): The Desire stage involves individuals actively evaluating your product or service, contemplating its benefits and suitability.
  • Action (Conversion): The final stage, also known as Action or Conversion, marks the moment when someone decides to become a customer and takes the necessary steps to make a purchase.

Let’s delve into each stage of the marketing funnel.

1. Awareness

During the Awareness stage, individuals initially become acquainted with your brand.

This could happen when they are searching for something on YouTube and happen to come across your video, prompting them to watch it. After that, they will know that you actually exist.

2. Interest

In the Interest stage, people begin actively engaging with your brand.

For instance, they might watch additional videos on your YouTube channel, subscribe to it, explore your website, and even sign up for your email list. This heightened interaction reflects their growing curiosity and attraction towards your offerings.

3. Desire

The Desire stage, also referred to as Consideration, involves individuals critically evaluating your product or service. Simply being aware of your brand and offerings doesn’t guarantee you’ll be their ultimate choice.

During this phase, they diligently assess alternatives, read reviews, seek opinions from friends and family, and make comparisons. It’s a crucial stage where your value proposition and differentiation play a significant role in influencing their decision-making process.

4. Action

The Action stage is the moment of decision, where people have made up their minds to make a purchase from you.

Suppose, you are the chosen one! At this point, they proceed to add your product to the cart, signaling their intent to complete the transaction and become your valued customer. Your ultimate objective is to facilitate a seamless process for them to take action and click that “buy” button.

Why Does Marketing Funnel Matters?

In reality, people don’t strictly adhere to the marketing funnel in a linear fashion. Their journey may involve bouncing back and forth between stages, staying in one phase without immediate progression, and showcasing various other behaviors.

Attempting to anticipate and plan for the infinite variations that can arise would be an impractical task for any marketing team. The dynamic nature of consumer behavior demands flexibility and adaptability in marketing strategies rather than a rigid approach. Understanding these complexities can help marketers embrace a more agile and responsive mindset to cater to the diverse pathways customers may take throughout their decision-making process.

By adopting this approach, you can ensure that your marketing tactics are effectively executed at each stage of the funnel.

Without this intentional focus, certain stages of your marketing funnel might be neglected, resulting in “holes” that cause unnecessary dropouts, leading to what is commonly known as a “leaky” funnel.

For instance, you may drive significant traffic to your website, but none of those visitors are signing up for your email list. The marketing funnel serves as a critical tool to identify and bring awareness to such issues, enabling you to take corrective measures and optimize your strategy accordingly.

Steps To Create A Marketing Funnel

Every business inevitably possesses a customer journey, and as a result, a marketing funnel. The concept of “creating” a marketing funnel, in essence, involves executing distinct marketing activities at each stage. However, it’s important to recognize that you cannot truly start from scratch; instead, you can only make adjustments and enhancements to an existing one.

Marketing Funnel

Pragmatically, marketers often simplify the funnel into three primary stages to facilitate implementation:

  • Top of the Funnel (TOFU) – This stage focuses on creating awareness among potential customers. The aim is to attract a broader audience and introduce them to the brand, product, or service.
  • Middle of the Funnel (MOFU) – In the MOFU stage, the emphasis shifts to generating interest in the offerings. Marketers aim to engage the audience further and provide valuable information to nurture their curiosity and consideration.
  • Bottom of the Funnel (BOFU) – The BOFU stage aims to convert interested prospects into customers. Here, the focus is on creating a desire for the product or service and motivating the audience to take action, such as making a purchase or subscribing to a service.

Let’s understand these stages one by one.

1. Top of funnel (TOFU)

The initial phase of the marketing funnel is known as the Awareness stage, often referred to as the “top of the funnel” (TOFU). At this stage, the primary objective is to broaden the funnel’s reach by introducing your brand to a wide and relevant audience.

To achieve this goal, consider employing the following tactics:


It is highly likely that your potential customers are actively searching for information related to your products or services on Google. Therefore, it is essential to ensure that your website appears prominently in the search results.

During the Awareness stage of their journey, you should focus on generating content that targets specific keywords your potential customers are likely to use in the early phases of their search. This will help them become aware of your offerings and start their exploration process.


In your industry, certain individuals have successfully cultivated a sizable and devoted audience of readers, listeners, and viewers. You can capitalize on this opportunity and utilize their platform to introduce your brand to a fresh and untapped audience.


Numerous brands have been established by leveraging various forms of advertising, be it YouTube ads or sponsorships. This time-tested strategy is widely recognized as one of the most effective ways to create brand awareness. If you have the financial resources, investing in advertising is an excellent method to attract significant attention to your brand.

2. Middle of funnel (MOFU)

In the middle of the funnel lies the Interest stage, where your primary objective is to captivate the audience’s attention, foster their interest, and persuade them that your product is the ideal solution for their needs.

To achieve this, consider employing the following tactics:


During this stage, our target customers are already familiar with SEO and are aware of their requirement for an SEO tool.

Thus, to effectively create content for the middle of the funnel, we should focus on topics related to:

  • SEO tools in general.
  • Tools that cater to different aspects of SEO, such as keyword research tools or link building tools.
  • Free versions of SEO tools, such as a free backlink checker.


Expressing interest in your brand can manifest in various ways, but it’s essential to recognize that not all actions hold equal value. Each platform or method of engagement has its own hierarchy of significance:

Among the various ways people show interest in your brand, email stands as the most valuable “interest indication.” When someone gives explicit permission to enter their inbox, it signifies a higher level of engagement and connection.

To harness this powerful channel, it’s crucial to focus on getting your website visitors to sign up for your email list. Implement compelling calls to action throughout your website to encourage and prompt them to subscribe. By building a strong email list, you can establish direct communication and nurture lasting relationships with your audience.

3. Bottom of funnel (BOFU)

The lower part of the funnel encompasses the Desire and Action stages, where your primary objectives are:

  • Persuading potential customers to select your offerings.
  • Encouraging immediate purchases.

To achieve these goals, consider employing the following tactics:

TARGET BOFU (Bottom of the Funnel) KEYWORDS

At this stage, people are in the evaluation process. They are comparing options, seeking advice from friends and family, and reading reviews. To capture their attention, use keywords that align with their specific purchase intent.


To gain an advantage in the decision-making process, your potential customers will likely assess all available solutions. By crafting a comparison page, you can steer the narrative and provide valuable insights for their evaluation.


Engage with your customer support, sales team, and account managers to identify the obstacles preventing people from making purchases. Utilize this valuable feedback to create targeted content that effectively addresses and overcomes each objection raised by potential customers.


Offer your potential customers a compelling incentive to make an immediate purchase. One effective tactic often employed is creating a sense of urgency.

Final words

In conclusion, understanding and implementing a marketing funnel can prove to be a game-changer for businesses. The marketing funnel, representing the stages of Awareness, Interest, Desire, and Action, provides a valuable framework to guide marketing strategies and optimize the customer journey.