what are five marketing strategies that retailers spend half of their annual budget on?
Retailers spend a huge portion of their annual budget – almost half! – just on implementing marketing strategies.
But where do they spend so much money? Why are these strategies so important? Let's find out about the 5 marketing strategies that put the biggest dent in the pockets of retailers.
1. Digital Marketing:
Where the Most Money Sinks In today's era, digital marketing is the biggest tool in the marketing strategy of retailers. Among them are.
Search Engine Advertising (Google Ads): Retailers spend a huge budget to run the ads that come to mind first when searching on Google. They have to count money for every click.
Social Media Advertising (Facebook, Instagram Ads): They invest in Facebook, Instagram to deliver product advertisements to their target customers.
Email Marketing: A powerful medium to deliver offers and new product news to regular customers.
Why so much expense? Because this is where the most potential customers are found and the results can be measured directly. Online visibility is now a survival condition for retailers.
2. Social media marketing and content creation:
It's not just about advertising. Another big part of a retailer's marketing strategy includes being active on social media and creating engaging content (videos, posts, blogs).
Increasing brand awareness: Keeping the brand in front of people by sharing regular posts, funny reels, and customer reviews.
Building a community: Direct conversations with customers, answering questions - these build trust.
Influencer marketing: Promoting products through popular people.
Why so much expense? It takes professionals to create good quality content, and influencers have to be paid a fee. But this builds long-term customer loyalty, which is invaluable for retail businesses.
3. Local SEO:
The magic of finding local customers
For retailers who have physical stores, Local SEO is the golden ticket.
Google My Business (GMB) profile: Store name, address, phone number, opening hours, photos, customer reviews – keep everything up to date.
Local keywords: "Best shoe store in Dhaka", "Grocery store in my area" – get on the first page of Google for such keywords.
Local directory listing: Submit your store information correctly in online directories.
Why spend so much? You have to hire experts, monitor it regularly. But the results are worth seeing – when people in your area search for "stores near me", your store will be their first choice.
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4. Traditional Media and Direct Mail:
Even in the online era, traditional media (TV, radio, magazines) and direct mail (catalogs, leaflets) have not disappeared from the marketing strategy of retailers, especially for big brands or locally established stores.
TV/Radio Advertising: Has the ability to reach a large number of people at once.
Offline Advertising (Billboards, Posters): Draws attention along the highway or busy road.
Direct Mail/Catalog: Delivers special offers, new collections directly to the homes of potential customers.
Why so much expense? The production cost and airtime of TV advertising exhausts the budget.
The printing and delivery costs of direct mail are also not small. But they play a role in strengthening the brand's presence in the local market.
5. Loyalty Programs and Customer Retention Initiatives:
It costs a lot to find new customers, but it is much more cost-effective to retain old customers and arrange for them to buy again. Therefore, a large part of the marketing strategy of retailers includes:
Loyalty cards/programs: Giving points, discounts or special benefits in exchange for regular purchases.
Personalized offers: Sending offers according to the customer's purchase history (email or app notifications).
Customer service with great importance: Quick resolution of problems, easy return policy - these are what bring customers back.
Why spend so much? Technology (CRM software), staff training, discounts or free gifts are involved. But a loyal customer brings profits in the long run, which cover these costs.
Conclusion:
Investing wisely is the key to success It is not in vain that retailers spend almost half of their annual budget on marketing strategies (digital marketing, social media, local SEO, traditional media and loyalty programs).
These marketing strategies help them acquire new customers, retain existing customers, build brand awareness, and ultimately increase sales.
The main reason why more than half of the budget is spent on these areas is because they are essential for these retailers to survive in the competitive market. But it is not enough to just pour money.
The real strategy is to understand which marketing strategy is most effective for its specific customers and business and invest the right amount in the right place. Choosing and implementing these marketing strategies wisely can take the retail business to the peak of success.