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The Difference Between Inbound and Outbound Marketing

Although the strict line that professional marketers have drawn between inbound and outbound marketing is disappearing over time, the difference between these strategies can almost be described as the difference between paid content marketing and display banner advertising. That description may be in the right ballpark, but it only lands us on first base.

There are a myriad of differences between inbound and outbound marketing (of which different conversion strategies are only a small part), differences which even celebrated thought leaders sometimes equate with the “old” and “new” dichotomy. This way of thinking rarely moves the ball forward for the rest of the marketing world.

When examined more closely, the relationship between inbound and outbound marketing is a bit more complicated, and that’s why we’ve dedicated this post to explaining the relationship between them in terms that marketers of all stripes are likely familiar with: Conversion Strategies, Target Audiences, and Offers. We recognize the ‘versus’ terminology that we employ to describe this relationship may seem to imply an opposition between them; it’s not meant to do that. It is more intended to set up a spectrum along which any marketer’s inbound and outbound tactics may fall, whether they are deployed for content strategy, an email marketing campaign, or the design of an advertisement—or perhaps most effectively, all three.

1. Inbound and Outbound Strategy: Attraction versus Promotion

The motivational force behind attraction is a pull. The motivational force behind promotion is a push.

When marketers adopt inbound conversion strategies, such as content publication, they want to gently pull users and consumers in their direction, converting with an attractive offer. When they opt for outbound marketing strategies such as banner advertisements, they want to gently push users and consumers along a predefined path, converting with a promotional offer.

A standard inbound conversion strategy will more often reach for indirect methods of persuasion (like branded infographics or product placement) than a standard outbound conversion strategy, which will more often cut to the chase and make a direct offer. These outbound strategies might include “buy-one-get-one-free” promotions, discounts, and other types of financial incentives. The best marketers are often able to blend these two conversion strategies, perhaps opting first to gently push an outbound promotion to raise awareness of a free offer, and then placing additional, attractive information along the path toward accepting the original offer. This information can be designed to gently pull the user or consumer toward accepting an additional offer, and create enough loyalty to make them a paying customer. In fact, many successful software as a service (SaaS) companies, including LinkedInAncestry, and the popular buzzword search tool BuzzSumo, use this exact conversion funnel strategy to grow their customer bases.

2. Target Audience: Business-to-Business versus Business-to-Consumer

The art of targeted business messaging lies in the science of research. The art of targeted consumer messaging lies in the science of even more research.

Finding the right audience is one of the hardest parts of marketing. Die-hard proponents of inbound marketing strategies would probably tell us that’s why we should allow our ideal audience to find us, while die-hard advocates of outbound marketing strategy would probably tell us that’s why we construct ideal audience personas: to target those we suppose would be most interested in what we have to offer. The assumption underlying both suggestions is that business audiences will naturally gravitate toward subtle, inbound messaging since they are constantly looking to improve their business, whereas consumer audiences require a more robust, outbound message, since they are a more passive bunch.

But strategists who are dogmatic about either approach tend to miss the mark by overlooking the art and science of research—that is, listening rather than pushing new ads and pulling new leads. Some of the best marketing strategies are born from long stints of research and development, which culminate in the creation of the most relevant message reaching its most relevant audience. It’s often easier to research a business than it is to research a consumer. After all, there are fewer businesses on the planet than consumers, and consumers tend to change their preferences more frequently than businesses do. But taking the time to listen to an audience and shape our message around their proven needs and desires offers a much more lucrative payoff than leaving a trail of breadcrumbs or shouting into the void. As market research has shown, marketers for both business-to-business and business-to-consumer companies can make good use of Facebook analytics to discover and monitor new target markets.

Related Class: Facebook Advertising and Targeting

3. Offers: Education of User versus Sale to Consumer

An offer of educational information is perceived to be more valuable by users of services. A promotional sales offer is perceived to be more valuable by consumers of goods.

Value is more often determined in the eye of the consumer than in the eye of the supplier, at least in a free market. When it comes to goods and services online, the case is no different. But there is a difference in our marketing expectations for service providers and suppliers of goods. The expectation for marketers of services, particularly SaaS, is that they should adopt an inbound marketing strategy by publishing content like blogs and videos, whereas we expect marketers of goods to adopt an outbound marketing strategy by pushing online promotions such as discounts and free shipping.

The problem with these expectations is that they often force young SaaS companies and commercial online vendors to make uninteresting offers to users and consumers who want to see more than another marketing agency infographic or commercial website sign-up coupon. Some of the best and biggest companies have risen to the top because they balance educational information with promotional sales. The increasingly popular massive open online course (MOOC) providers like UdacityCoursera, and edX are excellent examples of what can happen when we hybridize user education with promotional sales, as their business is premised on offering a quality education for 1 percent, and sometimes 0% the cost of taking an equivalent college or university course. Imagine what could happen if more companies started flipping the script, and commercial websites like Amazon began offering courses in web sales, while marketing agencies began offering bundle deals on memberships with their company that included access to all their best content. Content entrepreneurs and educators at Online Marketing Institute are already doing this with the provision of corporate training courses and certifications, the former of which specifically prepare business teams to expand their inbound and outbound online marketing expertise, while the latter helps individuals gain expertise in online marketing on the whole

Such hybridity is the lifeblood of the marketing era we find ourselves in now, an era that demands innovation every day.

A version of this article first appeared on BestMarketingDegrees.org

Want to learn more about any of the subjects mentioned above? Here are some relevant classes: Top of the Funnel Tactics for Inbound Marketing, Facebook Advertising and TargetingContent Marketing Implementation: Executing a Winning Content Program

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