Small business marketing in 2025

Updated Wednesday 26th February 2025

Key takeaways

• Your small business marketing should aim to both attract new customers and keep existing ones .
• Look at the Four Ps method (product, price, promotion, and place) when developing marketing plans.
• Consider using both online and traditional marketing strategies.
• Set goals and track your progress to measure the return on your marketing investment.
• Adapt your strategy to shifts in the market and your industry.

Table of Contents

• What is small business marketing?
• Online marketing for small businesses
• Traditional marketing for small businesses
• How to create a marketing plan
• 10 best small business marketing ideas
• FAQs on small business marketing
• Bring your small business marketing strategy to life

Develop a modern marketing plan for your small business. Learn what small business marketing is, how to build a marketing plan using online and traditional marketing channels, and pick up strategies and marketing tips for small businesses in 2025.

What is small business marketing?

Small business marketing is the process of promoting your small business to customers. It helps you to reach new customers, sell to them, and keep your existing customers loyal.

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 for small businesses

In 2025, digital marketing continues to be the widest-reaching, most cost-effective marketing approach for both bricks-and-mortar and online small businesses. Digital marketing has multiple channels like websites, content marketing, email, search engine optimization, and social media.

Content marketing

Content marketing involves videos, blog posts, infographics, and other content types published online. It educates customers and stimulates interest in your products and services. Post content on your website, social media profile, or other platforms. Or use engaging content to fuel your email or direct mail marketing campaigns.

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.

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.

Don't let your website be just a static flyer of business basics – give prospective customers an interactive experience designed to reach and entice them to buy.

Search engine optimization (SEO)

SEO uses specific design elements and content strategies to get websites noticed by search engines. 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. To reach the right audience, use the social media sites your customers use. Answer comments promptly – especially complaints – and don't be afraid to have fun - this is your space to showcase your brand image, and it doesn't have to be formal (unless that's your vibe).

Paid advertising

There are all kinds of paid advertising options online.

• 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

Although digital marketing is usually an ideal option for small businesses in 2025, traditional marketing strategies can still offer significant advantages. Don't forget traditional marketing techniques when deciding how to market your small business.

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 (postcards, catalogs, coupons, and so on) directly to potential or existing clients. It’s a great way to tell prospects about sales and special events, and to reconnect with customers.

For best results, send targeted, visually appealing ads to get through the clutter of junk mail.

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. These channels are not just for big nationwide companies – 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, and banners in high-traffic areas – and street signs too, especially if you’re a bricks-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 is arguably still the one of the best advertising for small business you can get. It amplifies the rest of your marketing efforts by turning your established customers into promoters. So encourage satisfied customers to spread the word about your business – give them coupons to hand to friends, provide kickbacks for referrals – encouraging them to bring others to your promo events, say – or offer them incentives for reviews or social posts.

How to create a marketing plan

Marketing for small businesses starts with identifying goals and analyzing your products, customers, and competitors. Here's a step-by-step breakdown.

1. Define your goals

Set clear, measurable goals – for instance, 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.

Here’s guidance from the government 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.

Here's government 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.

Planning, executing, tracking, and adjusting isn't just part of a successful marketing strategy – it's a key principle of small business management you can apply throughout your business.

10 best 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.

Here’s some government guidance on to 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 guerilla marketing tactics

Use creative, low-cost tactics like sidewalk chalk art, flash mobs, sign wavers, or unconventional displays to grab attention and get people talking!

FAQs on small business marketing

Here are answers to some common questions on small business marketing.

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

Focus on free or low-cost options such as local partnerships, flyers, or community marketing strategies. Track your progress to check you’re spending your time and money wisely.

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?

It’s tough competing with the big players, so make sure you start by getting the basics right. First, make sure you understand and can articulate your unique value proposition. 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.

Xero helps bring your small business marketing to life

Successful marketing is one of many important elements of a strong small business growth strategy. Xero has the guidance you need to expand your business, and the tools and features to help you manage your business’s growth.