Small business marketing: Strategies to grow your business

Published Monday 22 December 2025

Table of contents

• What is small business marketing?
• Digital marketing channels
• Traditional marketing for small businesses
• How to create a marketing plan
• 10 small business marketing ideas
• Xero helps manage your marketing with confidence
• FAQs on small business marketing

Key takeaways

• Apply the Four Ps method (product, price, promotion, and place) when developing your marketing strategy to ensure you address all essential elements that influence customer purchasing decisions.
• Combine digital marketing channels like social media, email marketing, and SEO with traditional methods such as direct mail and local events to maximize your reach while staying within budget constraints.
• Create a structured marketing plan by defining clear goals, identifying your target audience, setting a budget, and tracking performance metrics so you can adjust your approach based on real data.
• Utilize word-of-mouth marketing and user-generated content by implementing referral programs, encouraging customer reviews, and partnering with local businesses to amplify your marketing efforts cost-effectively.

What is small business marketing?

Small business marketing is the strategic promotion of your products or services to attract new customers and retain existing ones. This process helps you:

• Connect with target customers through cost-effective channels
• Showcase your unique value proposition to stand out from competitors
• Grow revenue using budget-friendly, measurable tactics

Effective marketing campaigns often focus on the Four Ps method:

• Product: make sure it meets customer needs
• Price: make your product or service affordable
• Promotion: make sure your customers know about your business and what you offer
• Place: make your product or service available when and where customers need it

Let's look at how to market a small business through online and traditional marketing methods.

Digital marketing channels

Digital marketing channels deliver the widest reach at the lowest cost for small businesses in 2025. These online strategies work for both physical stores and digital-only businesses.

Key digital marketing options:

• Social media marketing: Facebook, Instagram, LinkedIn for brand awareness
• Email marketing: newsletters and promotions for direct customer contact
• Search engine marketing: search engine optimization (SEO) and paid ads to capture search traffic

Test different channels to identify which ones generate the best results for your specific audience and business goals.

Content marketing

Content marketing creates valuable videos, blog posts, and infographics to educate customers and generate interest in your business. This strategy works by:

• Building trust through helpful, educational content
• Improving search rankings when published on your website
• Supporting other campaigns by fueling email and social media marketing
• Establishing expertise in your industry or niche

Email marketing

Email marketing puts you in direct contact with your customers. Send cold outreach emails to prospective customers. Email existing customers to upsell them and stay in contact, and to promote sales or special events.

If you're trying to get the most out of your marketing budget, email can be especially effective because it can be automated, and the results are easy to track. In fact, research shows that automated workflows generate 30x higher returns compared to one-off email campaigns.

Website creation

A functional and attractive website provides customers everything they need to know about your business: what you sell, why they should choose you, and how to connect.

Turn your website into more than a static flyer of business basics. Create an engaging experience that helps visitors see how your business can solve their problems.

Search engine optimization

Search engine optimization (SEO) uses specific design elements and content strategies to help search engines find your website. SEO helps prospects find your website through searches related to your product or service. It's often more cost-effective than paying for ads on the search results pages and can be a crucial edge in competitive markets.

Social media

Social media profiles help small businesses promote their products, build brand awareness, and connect with customers. Given that 81% of consumers are swayed by social media to make spontaneous purchases, these platforms are a powerful tool for driving sales.

To reach the right audience, use the social media sites your customers use. Answer comments promptly (especially complaints) and feel free to show your personality. Social media is your space to showcase what makes your brand unique while staying true to your business values.

Paid advertising

There are all kinds of paid advertising options online. Here are a few of them:

• Consider buying space on sites like Facebook, Instagram, or LinkedIn that let you customize the audience for your ad.
• Sponsor a podcast in your niche.
• Reach out to influencers who can boost your business and its products or services.
• Buy ads on Google or other search engines so that your website appears in the advertising section of the search results for certain keywords.

Traditional marketing for small businesses

Traditional marketing uses offline channels like print, radio, and events to reach customers. While digital dominates in 2025, traditional methods offer unique advantages:

• Local market penetration through community connections
• Tangible brand presence that customers can physically interact with
• Less competition in offline spaces compared to crowded digital channels

Print advertising

Place ads in newspapers, magazines, and brochures, and hand out flyers to reach local or targeted audiences. Print advertising can be quite cheap and easy to manage, and it all helps build brand awareness.

Direct mail

Direct mail is when you send physical promotional materials directly to potential or existing clients, and it can be highly effective. Research shows direct mail can achieve a response rate of 9% to a house list, which is significantly higher than email's 1% response rate. It's a great way to tell prospects about sales and special events, and to reconnect with customers.

Television and radio advertising

Does your target audience watch TV or listen to the radio? If so, include TV or radio in your marketing campaigns. Local affiliates often have advertising slots reserved for small businesses, so you may be surprised at how affordable they are.

Event marketing

Event marketing puts you face-to-face with prospective customers at trade shows, industry gatherings, or your own events at your venue. Demo your product and let potential customers try it. Give them your pitch and answer their questions to show how your product meets their needs.

Billboards and outdoor advertising

Let people know about your business through billboards, posters, banners, and even street signs in high-traffic areas, especially if you're a brick-and-mortar business. Use eye-catching designs that grab attention, and let passersby know how to reach you.

Word of mouth marketing

Don't forget this one! Word-of-mouth marketing remains one of the most powerful ways to grow your small business, especially in its digital form as user-generated content (UGC). According to one study, 87% of consumers believe UGC influences their buying decisions, outperforming even search engines.

It amplifies the rest of your marketing efforts by turning your established customers into promoters. Encourage satisfied customers to spread the word about your business. Give them coupons to share with friends, offer referral rewards, or provide incentives for reviews and social media posts.

How to create a marketing plan

A marketing plan transforms your business strategy into actionable steps that drive measurable results. This roadmap guides you from initial goal-setting through campaign execution and performance tracking.

Creating your marketing plan involves eight key steps:

1. Define your goals

Set clear, measurable goals, such as increasing brand awareness, growing social media followers, or generating more leads.

2. Identify your target audience

Who are you selling to? Understand the demographics, behaviors, and frustrations of your target audience so you can tailor your marketing messages to them.

3. Analyze the market

Assess the competition, consumer preferences, and industry trends to find opportunities and see how to differentiate yourself in the market.

The Small Business Administration provides guidance on market research and competitive analysis.

4. Set a budget

How much can you afford to spend? Monitor your return on investment (ROI) to identify the most cost-effective marketing initiatives.

The Small Business Administration gives advice on getting more from your marketing budget.

5. Choose your marketing channels

Decide where to focus your efforts. Depending on your business, a successful marketing campaign will probably include a mix of online and traditional strategies.

6. Develop your messaging

Craft ads and content with consistent messaging that highlights your unique value proposition and resonates with your audience.

7. Build your action plan

Plan the steps you need to take and when. Outline tactics, timelines, and responsibilities so you can smoothly execute your plan.

8. Measure and adjust

Track the performance of your marketing campaigns in terms of engagement, new customers, sales, and other metrics. Adjust your approach as needed and repeat.

Successful marketing requires continuous planning, execution, and optimization. This approach delivers measurable results:

• Track performance to identify which strategies generate the best ROI
• Adjust tactics based on real data rather than guesswork
• Scale successful campaigns to accelerate business growth

Apply these same principles across all areas of your business management for consistent, sustainable growth.

10 small business marketing ideas

Wondering how to get started? Check out these marketing ideas for small businesses to get the ball rolling.

1. Create a referral program

Encourage satisfied customers to refer friends or family by offering them discounts, rewards, or exclusive deals.

2. Collaborate with other local businesses

To increase visibility, partner with complementary businesses to promote each other's products and services.

3. Host local events or workshops

Organize in-person events, pop-ups, or educational workshops to engage with your community and showcase your products or expertise. In-person events are also a great place to demo service-related businesses.

4. Offer discounts and promotions

Attract new customers or reward loyal ones with special offers, seasonal discounts, or bundled deals.

5. Go to trade shows and networking events

Build connections, showcase your products, and attract potential clients or partners in person.

6. Start a loyalty program

Reward repeat customers with points, discounts, and exclusive perks to deepen their engagement with your business.

7. Sponsor community projects

Support local events, sports teams, and charities to get your brand out into the community and to build goodwill.

Learn more from the SBA on marketing in your community.

8. Teach classes or tutorials

Share your expertise through free or paid sessions to position yourself as a leader in your industry.

9. Host contests or giveaways

Engage your audience and attract new customers by offering prizes or free products.

10. Use guerrilla marketing tactics

Use creative, low-cost tactics like eye-catching window displays, community art projects, or unique signage to grab attention and spark conversations about your business.

Xero helps manage your marketing with confidence

Marketing is key to growing your business, and Xero gives you the tools to manage that growth with ease. From tracking expenses and setting budgets to measuring your ROI, Xero helps you stay in control of your finances while you focus on reaching more customers.

Support your next marketing move and get one month of Xero for free today.

FAQs on small business marketing

Here are answers to the most common questions small business owners ask about marketing strategy, budgets, and measuring success.

How do I start marketing my small business?

Begin by defining your target audience, clarifying what makes your offering different, and choosing affordable channels to reach the people who benefit most from your product or service.

How can I effectively market my small business with a limited budget and resources?

Start by setting clear goals and defining your target audience. Craft a strong brand message that resonates, use low-cost tactics like social media or local partnerships, and regularly test and refine your approach.

How much should I spend on marketing for my small business?

While a general guideline is to spend 2% to 5% of your revenue on marketing, this varies by industry. For instance, some reports show that business-to-consumer (B2C) services companies spend closer to 11.8% of their revenue on marketing.

How can I measure the success of my marketing efforts to ensure I'm getting a strong return on investment?

First, ask your customers: get their feedback on how they heard about your business, and track their answers to see which marketing channel brings in the most customers. Then use website analytics, customer relationship management (CRM), and other tracking tools to analyze customer acquisition costs, conversion rates, and other marketing metrics.

How do I balance short-term promotions with long-term brand-building strategies?

Get the balance right by creating marketing strategies around specific goals, like bringing in a set number of customers or increasing sales by a certain percentage. Also make sure that all your campaigns work together to create a sustainable and recognizable brand identity.

How can I compete with larger businesses that have bigger marketing budgets and resources?

Small businesses have unique advantages over larger competitors. Focus on getting the fundamentals right to leverage these strengths. First, make sure you understand and can articulate your unique value proposition, as research shows that brand-focused campaigns can achieve four times the bottom-line impact. Then craft a marketing campaign that builds customer relationships and use agile, targeted strategies to help you compete.

How can I adapt my marketing strategy to changes in customer behavior or economic conditions?

Track your marketing metrics, and keep an eye on the competition and industry trends. As you learn about new customer preferences, try out other ad styles, new platforms, and different strategies. Then, adjust again when customer preferences change.

Which marketing approach is right for my small business?

The best approach depends on your audience, budget, and goals. Start with a few tactics, test what works, and focus your efforts on the channels that deliver results.