Marketing Channel Comparison

The current focus on multichannel and omnichannel strategies, highlights the need to prioritise investment on the relevant marketing channels for a company. It’s not practical for most to manage all channels and certainly you need to prioritise resources on the channels which will give the best returns. Should you focus on digital marketing channels? Or can offline channels still deliver good ROI?

How to select the right channels?

There is no right answer. When you’re just starting out you can increase sales by reaching out to family and friends. But for an ecommerce business with $1 million in revenues, that approach probably won’t move the needle.

Deciding which channels to use for what purposes is a critical element of business strategy. Get it wrong and you could spend a lot time and money trying to either persuade customers to shift channels or chasing a market that isn’t there.

Social Media (Facebook, Instagram, Snapchat, Twitter)
Pros: Easy to setup, biggest pool of ready customers to target
Cons: Not easy to grow followers, likes, etc, need consistent updates
Profit Margin: Medium depending on the customer targeted
Cost: Free
Database (Email, Wechat, Whatsapp)
Pros: Easy to resell (trust already created)
Cons: None
Profit Margin: Depending on how customers was acquired
Cost: Free except for big database
Forum (Lowyat, Cari)
Pros: Easy maintenance, ready customers if done the right way
Cons: Need time to build trust
Profit Margin: Medium
Cost: Free
Content (Blogspot, Website, Youtube)
Pros: Best way to build credibility/trust
Cons: Need money to invest in some products for reviews, need technical skills
Profit Margin: High if can build a following
Cost: Medium to High
Paid ads (Facebook ads, Instagram ads, Google ads)
Pros: Create unlimited customers anytime
Cons: May create unprofitable ad (lose money),  need technical skills
Profit Margin: Depending on customer acquisition cost
Cost: Low to High
Marketplace (Carousell, Mudah, Lelong,Shopee, Lazada, 11street)
Pros: Ready pool of buyers and simple maintenance
Cons: Very price sensitive, need to keep stock in some marketplaces like Lazada
Profit Margin: Low
Cost: Medium to High
Offline (Flea Market, Retail Shops)
Pros: Highest trust factor as they can feel and touch the product
Cons: Limited to location only
Profit Margin: High
Cost: High

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