Marketing is the lifeblood of any startup, the bridge connecting innovative products or services with the target audience.
Effective marketing is about storytelling, building relationships, and establishing a brand identity in a crowded marketplace.
When I began my startup, I had no idea which type of marketer to hire or how to balance my needs with cost. I hired marketing specialists too soon, which was a huge waste of resources.
Through trial and error as a small business owner, I’ve learned plenty of helpful advice on hiring your first marketer and scaling your marketing efforts.
Here are the most important things to know about marketers for startups.
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Key Takeaways
- Startups should spend 12-20% of gross revenue on marketing.
- During the foundation stage, startups should hire a general marketer with broad domain experience in all marketing disciplines.
- In the growth stage, startups should begin hiring marketing experts, first in digital marketing and content marketing.
- During the expansive stage, build a complete marketing department, outsource to a full marketing agency, or combine internal and external resources.
The Marketing Landscape for Startups
Startups move fast, and to stand out amongst the crowd as a newbie, they need to nail marketing. Successful marketing includes several moving parts and a blend of strategies.
For example:
- Digital marketing– uses online tools to reach people far and wide. It includes these tactics (which are also separate marketing specialties)
- search engine optimization
- social media marketing
- email outreach
- Content marketing– all about crafting valuable and engaging information to draw in and keep an audience, helping to build trust and establish the brand's voice.
- Web copy
- Blogging
- Social media marketing
- Email newsletters
- Product marketing– focuses on how to present and sell a product so it hits home with customers and meets their needs.
- Copywriting
- Social media marketing
- Product videos
10 Must-Do Marketing Activities for Startups
The first step to hiring a startup marketer is to know which marketing activities are most vital.
Here are the top 10 marketing activities that every startup should do either DIY or delegated to a marketer:
- Market Research: Conduct thorough market research to understand your target audience, competition, and market trends.
- Brand Positioning: Developing a clear brand message and value proposition.
- Content Marketing: Create valuable content to attract and engage your target audience.
- SEO (Search Engine Optimization): Optimize your website and content to rank higher in search engine results
- Social Media Marketing: Engage with your audience and promote your brand on social media platforms.
- Email Marketing: Build and nurture relationships with customers through email communication.
- Digital Advertising: Running online ads to promote your products or services.
- Networking and Partnerships: Build relationships with other businesses and industry influencers.
- Customer Feedback and Relationship Management: Gather customer feedback and manage relationships to improve products/services.
- Analytics and Data Interpretation: Analyzing marketing data to inform strategies and decisions.
Startups, with their tight budgets and small teams, can’t hire a bunch of experts each focused on one of these areas right away.
The T-Shaped Marketer: A Gold Mine for Startups
A T-shaped marketer is one of the most valuable additions to a new startup.
Imagine a T:
- The top horizontal line represents a broad understanding of all the different marketing areas, like brand positioning, driving traffic, lead nurturing, conversions, closing sales, and data/analytics.
- The vertical line stands for deep knowledge. Along the brand positioning vertical, it may include skills like brand awareness, graphic design, buyer personas, buyer journey, testimonials, and customer experience.
Ideally, startups should start with a T-shaped marketer who has the basics down for all of the marketing areas and is an expert in one or two specific fields.
This kind of marketer is a jack-of-all-trades in the marketing world, handling a variety of tasks with a splash of specialized knowledge when needed.
For a startup, having a T-shaped marketer on board means they can cover more ground without needing a big team.
Scaling Your Marketing Team: A Timeline
Phase 1: Foundation Stage (1-10 employees)
Startups in their earliest stages need a general marketer. The marketer needs broad domain experience across all main marketing disciplines.
Some activities the general marketer should be able to handle include:
- Writing copy
- Running basic ads
- Collaboration with sales on enablement materials
Top marketing goals during this stage:
- Establish brand identity
- Build online presence
- Generate leads
- Engage and retain customers
- Analyze and adapt
Ideally, they should shine in one or two areas so that they can scale with your startup.
Phase 2: The Growth Stage (10-50 employees)
During this stage, startups should expand past a general marketer and start to hire specialists in specific roles. Specializing is vital to address the new marketing goals and challenges of a growing business.
Here are the top marketing specialists to begin hiring, in order of general priority:
- Digital Marketing Manager: They can strategize and oversee various digital channels (SEO, PPC, Email Marketing, Social Media Marketing), ensuring a cohesive and effective online presence.
- Content Marketing Specialist: A specialist develops and executes a content strategy that aligns with the company's goals and appeals to the target audience.
- SEO Specialist: They ensure the brand stands out in search engine results by optimizing website content, conducting keyword research, and implementing strategies to increase rankings and visibility.
- Data Analyst: Data-driven insights are essential for informed decision-making and optimizing marketing strategies for better ROI. A Data Analyst analyzes marketing data, provides actionable insights, and adjusts strategies to market trends and customer behavior.
- Social Media Manager: A manager effectively leverages social channels to foster community and drive sales. They will manage and grow the company's social media profiles, create engaging content, and interact with the community.
Top marketing goals during this stage:
- Expand market reach
- Optimize marketing channels
- Enhance customer segmentation
- Strengthen brand loyalty
- Innovate and diversity (introducing and marketing new products and services)
Phase 3: The Expansion Stage (50+ employees)
In Phase 3, startups should establish a comprehensive marketing department to scale their efforts and refine strategies. The goal is to integrate various specialized roles to create a cohesive and strategic marketing force.
For internal marketing teams, leadership plays a pivotal role. Marketing leaders steer the department toward marketing initiatives that align with the company's broader objectives. They can also best determine the hiring needs for the rest of your team.
There are several ways to structure a marketing team, including by discipline, function, or product. Large enterprise businesses may include marketing teams of 20+ people.
Learn more in our complete guide to structuring high-performing marketing teams.
Top marketing goals during this stage:
- Increase brand recognition
- Data-driven decision-making
- Customer Advocacy
- Sustainable growth
Budgeting for Marketing: How Much Should Startups Spend?
Generally, startups should dedicate between 12% to 20% of their gross revenue to marketing, though this can vary based on the industry, market conditions, and growth stage.
In the beginning, balancing between in-house hiring and outsourcing is vital. In-house teams offer deep brand knowledge and dedicated focus but can be more expensive because of salary and resources. Outsourcing provides flexibility and access to specialized skills, often at a lower cost.
Find out more about the pros and cons of hiring a marketing agency vs an in-house team.
A couple of notable ways to manage marketing costs include:
- Hire fractional marketing leaders, like a Fractional CMO to gain access to the same expertise for a lower cost.
- Consider hiring a marketing agency instead of outsourcing to several specialized individuals.
- Opting for a hybrid method. Start with a core in-house team for essential marketing functions and supplement with outsourced experts for specialized tasks or projects.
Conclusion
Effective marketing is vital for startups looking to make their mark. The first marketing hire for most startups should be a general marketer with a grasp of all core marketing strategies. Ideally, they should also specialize in 1-2 vertices for scalability.
As your business grows, so should your marketing. Expand to hiring more specialists (digital marketing and content marketing specialists first). In the latest stages, build your own marketing team, fully outsource to an agency, or use a hybrid approach.
Founders must regularly review their marketing approach to ensure it's in sync with their startup's needs and goals.
Where is your startup in its marketing journey?
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