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Case Study On Comparison Between Inbound And Outbound Marketing

Updated on March 2, 2016

INTRODUCTION

Vijay Yadav is an Enterprenuer who runs his own company named as Magnet Marketing. His company provide Marketing solutions for his clients by implementing marketing strategies that he knows with experience and creates brand, generate leads, increase website traffic and strengthens online presence of his client businesses.

Along with that he also teach students online who are interested in the field of marketing.

PURPOSE OF THE STUDY

Comparing the effectiveness of traditional and Inboud marketing (internet marketing)

Observing the difference in money spent on running the campaigns, profit earned, cost per customer, and also to observe the difference between adcost/per revenue in both these two cases.

PROFILE DETAILS

Owner Name: Vijay Yadav

Comapany Name: Magnet Marketing

Site Name: http://www.magnetmarketing.in/

Experience in this field: +10years

About Us: We build & implement effective Internet Marketing Strategies that creates brand,generate leads, increase website traffic and strengthens online presence.


INTRODUCTION TO INBOUND MARKETING

What is Inbound marketing?

  • When we think about traditional marketing methods, we typically think about Outbound Marketing. Newspaper ads, radio ads and TV ads, running print ads, buying email lists, cold-calling, advertising on billboards, or sponsoring a booth at a tradeshow.
  • We are pushing our Marketing Message out to the given audience hoping for a response, a lead, and a new business.
  • Of Course, there is still, a huge need for Outbound Marketing and Inbound isn’t meant to replace this form of advertising, but instead is meant to enhance and supplement it.
  • Inbound marketing focuses on creating quality content that pulls the people Into your business and brand. They are already searching for answers online, researching your industry, checking out your competitors, and trying to decide if they really need your service or product.
  • So, the goal is to have a content that speaks to all of these scenarios at every stages of the buying process and also focuses to publish those content of yours on those places where they generally found online so as to capture these interested prospects.
  • By aligning the content you publish with your customer’s interests, you naturally attract inbound traffic that you can then convert, close, and delight over time

DESCRIPTION AND ANALYSIS

Let's see how Vijay Yadav manages to reduce his marketing cost and earned more profit.


  • Given below is the Outbound Marketing Campaign chart of Vijay Yadav's business in 2005.
  • He runs the Outbound Marketing Campaign by designing a brochure for his audience telling them about what he and his company do and how he can help him to increase their sales by increasing the online presence of their businesses
  • He strated couriering his company borchure to his propectus customers. He got tremendous results.

  • The profit he earned is of 79000 and the cost per customer is 1400 Rs which is really a huge marketing expense because as we see that ad cost per revenue is 35%!.
  • This was the time of 2005 when marketing coampaign requires lot of money out of the revenue but today the scenario has changed completely.
  • Exercising the same kind of campaign in 2016 is much easier by using internet or inbound marketing. Viajy runs the same campaign on Facebook. It takes less time, less efforts, very less money and above all give him more desired results and profits than the Outbound Marketing.

Vijay Ad Campaign on Facebook

  • With just 1085Rupess his ad reaches to 11,148 people.
  • That is really a good no. and the cost of the campaign is 1085 rupees only!! That is the real power of Internet Marketing.
  • He also had the option to the categorise the audience for showing his ad It means that he can controls which type of audience can able to see his ad on facebook
  • For Example Ad must be shown only to those people who mentioned themselves as Self Employed, Student, CEOs etc in their Work and Education Section of their profiles on Facebook.
  • He reaches the targeted audience on large scale by using pennies to spent on that. That is really a great deal.

Comparison between Outbound (Internet Marketing) and Inbound (Internet Marketing)

  • Now above is given the comparison of Outbound Marketing used and Vijay in 2005 and Inbound Marketing which he has been using from the past 3 to 4 years.

OBSERVATION

  • Observe the huge difference in cost per customer, ad cost per revenue and the profits earned between these two kinds of marketing.

CONCLUSION AND LEARNINGS

  • Inbound Marketing is way ahead than Outbound Marketing if it is implemented correctly and it has a great future ahead.
  • If we are only using Outbound Marketing, and not using Internet marketing for our business then it would be like that we are living on the moon.
  • Time has changed today and it is the hour of the need that we should start exercising inbound marketing tactics and tricks in our business and it is not for our growth but it is essential need for our survival today.
  • I am not saying that outbound marketing is dead, it still to some extent important but what I trying to say by showing these statistics is that inbound marketing reduce your cost of marketing campaign, increase profits and also create a brand value and help you to remain connected with your potential audiences.
  • Adapting, Implementing and Improvising is key to success.

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