David Meerman Scott recommends that marketers "earn their way in" (via publishing helpful information on a blog etc.) in contrast to outbound marketing where they "buy, beg, or bug their way in" (via paid advertisements, issuing press releases, or paying commissioned sales people, respectively). The term is synonymous with the concept of permission marketing, which is the title of a book by Seth Godin. The inbound marketing term was coined by HubSpot’s Brian Halligan, in 2005. According to HubSpot, inbound marketing is especially effective for small businesses that deal with high dollar values, long research cycles and knowledge-based products. In these areas prospects are more likely to get informed and hire someone who demonstrates expertise.
In one case inbound marketing was defined by three phases: Get found, Convert and Analyze. A newer model from Business2Community illustrates the concept in five stages:
Convert visitors to leads
Convert leads to sales
Turn customers into repeat higher margin customers
Analyze for continuous improvement
Inbound marketing practices attempt to gain customers from semantically related market segments.