Inbound and Outbound Marketing: Why Companies Are Switching to Inbound Marketing

Definitions of Inbound and Outbound Marketingr
Whereas "inbound marketing" is a new term that was coined in 2005 by Brian Halligan, the founder of HubSpot, "outbound marketing" became a reference to old-school methods of marketing. The concept behind outbound marketing is reaching the masses through multiple avenues of paid advertising in the hopes that people will pay attention. Outbound marketing may rely upon radio, television, direct mail, telemarketing, print media or billboards for example.

Inbound marketing focuses its efforts on the Internet where the majority of modern consumers do research before purchasing. Instead of vying for the attention of prospects, inbound marketing aims to attract and earn the attention of potential customers by publishing interesting and valuable online content. Through search engine optimization techniques and social media marketing, information can come to the attention of online users who may share the information and further increase website traffic. By building relationships with online customers and gaining their respect as an authority in the field, website traffic can give rise to conversions and sales.

Why Is There a Trend Toward Inbound Marketing?
These are 5 central reasons why companies have been switching to inbound marketing:

1. Inbound marketing is much cheaper than outbound marketing. Since outbound marketing relies on reaching the widest possible audience, a lot of money must be spent on advertising in a wide variety of media outlets. On the other hand, inbound marketing is solely focused on the Internet and often depends on your own team's ability to produce useful content. This marketing strategy is especially convenient for small businesses who can compete with large companies while spending much less.

2. Businesses can adjust their inbound marketing campaigns with precision. The advantage of Internet marketing is that comprehensive web analytics are available for free. By measuring results and analyzing the statistics behind website traffic and conversions, an important step in the process of inbound marketing, you can effectively improve your marketing strategy and therefore increase inbound sales.

3. Customers are increasingly doing research on products or services on the Internet before making a purchase. Companies that provide valuable industry-related content are respected as knowledgeable authorities in their fields. By sharing information, companies also relay the message that they're not just seeking sales but an enduring relationship with the customer.

4. Publishing valuable and compelling industry-related information online connects businesses with targeted customers. These are customers who are already looking into products and services in your industry, and are ready to make purchases.

5. Outbound marketing has been nicknamed "interruption marketing" that the public has learned to ignore. This traditional style of marketing is now increasingly considered intrusive as opposed to inbound marketing, which is also known as "permission marketing" (a term devised by entrepreneur Seth Godin). Inbound marketers gain permission and therefore respect from their prospects before taking next steps.