Reactive and Proactive Marketing
Reactive and Proactive marketing holds major significance in marketing decision-making. Reactive marketing takes action after the happening of events whereas proactive marketing is one that takes action prior to the events happening.
What is Reactive Marketing?
Reactive marketing is one of the widely used marketing concepts that assume the employment of tactics when opportunities and challenges arise.
It believes the forces or factors of the marketing environment are unpredictable and uncontrollable in nature.
For example, a stronger consumer health movement can particularly affect the sales and profit of the company that produces noodles with MSG. As adopting reactive marketing company may need to eliminate MSG.
Mayos once was temporarily banned for containing MSG. It then reacted with an advertising campaign claiming the noodles had no added MSG.
Reactive marketing has somehow no predetermined marketing plans i.e. adjustments happen only after a change in the marketing environment.
Basically, it takes place because of the competition that is unforeseen.
As reactive marketing does not take prior actions, it might give a smaller amount of profit than proactive marketing however it gives bearable risks than proactive marketing.
The salient features of reactive marketing are as follows:
- No written marketing plan or strategy.
- Referrals occur whenever the customers decide to call.
- Marketing is inconsistent and weak.
- it depends on bottom-of-the-barrel approaches, such as Groupon.
- When marketing is done, it is usually a, “Let’s try this latest fad.”
- The attitude towards marketing is exasperation, rolled eyes, and resentment.
What is Proactive Marketing?
Proactive marketing is an approach that has predetermined plans for marketing activities. It develops the original campaigns, means avoids the other businesses’ practice.
Proactive marketing emphasizes the marketers to be creative, and think before customers about the products and services that they are going to seek.
It forces marketers to be real-time, data-driven, and adaptable to this everchanging marketing environment.
Although the components of the marketing environment are uncontrollable and unpredictable, proactive marketing believes that can be influenced by proper planning.
It involves the implementation of prepared strategies. It requires a lot more work the result is much better than other forms of marketing.
As proactive marketing involves taking prior and different actions, it is more expensive than reactive marketing, however, it brings greater profitability than reactive marketing if a planned strategy is successfully implemented.
Features of proactive marketing are:
- Creating a written marketing plan, based on homework, analysis, and research.
- It is viewed and treated as a manageable business process.
- It is not done based on desperation, but only with time-honored methods.
- Referrals are regularly generated through incentive programs, social media, and means.
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Implications of Reactive and Proactive Marketing
Reactive marketing is a risky proposition. Moreover, there is the risk of taking too much time to respond to a change in the business environment.
Sometimes it may result in loss of market share due to a competitor already in the process of implementing the strategy that was being planned by the company.
The company may have to shut down some of its business lines due to the inability to adjust to changes in market behavior or a breakthrough in technology leading to the current technology capabilities becoming obsolete.
On the contrary, proactive companies follow stringent procedures, have a strong research capability, a strategic planning system in place, proper business intelligence tools to help make key decisions, and employ specialists.
For example, marketing coordinators and analysts predict changes in customer patterns and the environment to have a competitive edge over their competitors.
To summarize, a reactive company responds after the event has taken place with no preparation or anticipation of such things.
A proactive company on the other hand foresees these changes and has the action plans ready to face them. Companies adopting proactive marketing are well prepared and have information from various sources, to counter a variance in the business environment.
Companies adopting proactive market approaches hence are more successful than the reactive approach.
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Different Between Reactive and Proactive Marketing Strategies
Definition and Approach
Reactive strategies involve waiting for a situation, such as a crisis or external change, to happen and then responding accordingly. For instance, a business might lower prices or increase promotions only after experiencing a sales decline.
In contrast, proactive strategies focus on anticipating future opportunities or challenges and taking steps in advance to address them. These strategies are guided by predetermined goals and a forward-thinking approach.
Decision-Making Style
Reactive strategies rely on immediate decision-making based on current circumstances, often under pressure.
On the other hand, proactive strategies involve carefully planned decisions based on a thorough analysis of internal strengths and external opportunities or threats. This ensures actions align with long-term objectives.
Risk Factor
Reactive strategies are considered less risky because they respond to known issues or changes. However, they often lack the foresight to capitalize on emerging trends.
Proactive strategies are inherently riskier, as they require acting on predictions or forecasts, but they often yield greater rewards by staying ahead of competitors.
Competitor and Market Focus
Reactive strategies often involve imitating competitors’ actions and refining them to attract attention. For instance, a business might mimic a competitor’s promotional campaign.
In contrast, proactive strategies focus on identifying customer needs and addressing them with innovative solutions, often without waiting for competitors’ moves.
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Adaptability
Businesses using reactive strategies adapt to changes slowly, responding only after they become evident in the market or industry.
Proactive businesses, however, adapt quickly by anticipating shifts and taking action ahead of time, which helps them remain competitive.
Opportunities and Growth
Reactive strategies may lead to missed opportunities because actions are delayed until the situation becomes urgent.
In contrast, proactive strategies allow businesses to explore and seize new opportunities early, fostering growth and long-term stability.
Resource Utilization
Reactive strategies tend to focus on conserving resources and addressing immediate problems rather than pursuing long-term goals.
Proactive strategies, however, prioritize strategic investments in research, development, and innovation to ensure future success.
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Sujan Chaudhary holds a BBA degree. He loves to share his business knowledge with the rest of the world.