HubSpot Case Brief for Marketing Management- myassignmenthelp

Question: Discuss about theHubSpot Case Brief for Marketing Management. Answer: Problem Statement The main problem of HubSpot is to decide on the target market selection in the inbound marketing. Prospecting a customer through traditional marketing is done through the targeting tool of strategic marketing. But in the inbound marketing the process is reverse where the prospecting of the customer happens first and then they are arranged in different market segment. That is why following inbound marketing the organisation is finding it difficult to decide marketing strategy. Situation Analysis and Anticipation The organisation HubSpot recently acquired 1000 customer in the business. The organisation is aiming to expand the business fast. There the organisation is using the inbound marketing to acquire more customers and grow fast. The selection of the inbound marketing is done to show the customer that the organisation HubSpot got the fast success by using the new marketing tools. The inbound marketing is proving to be difficult for the company to follow in the business. Traditionally the organisations are using the segmentation, targeting and positioning tool in the marketing strategy (Kotler et al., 2015). It helps the marketer to focus on specific customer by providing unique value to those customers. This approach also helps the company to maintain better customer relationship (Hollensen, 2015).The specific focus is also helps the company to develop specific competitive advantage for that target market segment. The process is also helpful for the expansion process as well as for retaining the customer in the market. On the other hand in the inbound marketing tool the customer lead generation and acquisition happens first. After that the marketer selects the appropriate market segment to put the customer. The main problem in this approach is that the whole strategic marketing approach is difficult to follow in the inbound marketing. The company has two type of product to target the two different market segments. One is Owner Ollies and another one is Market Marys. Owner Ollies is for the small business with less than 25 employees where as the Market Marys is for the marketing professional working in the organisation with employee strength up to 100. Within these segments there are businesses which B2B and B2C. Now targeting these diverse customer bases would be difficult for the company as it would increase the customer acquisition and servicing cost (Peter and Donnelly, 2011).Along with the different customer would prefer different type of features and facility for their business and that would make the situation of service development challenging for the company operationally. There are some pros and cons of the two different product segments. The small business customer of Owner Ollies is easy to acquire with some $1000 as customer acquisition cost. That is why the Table-2 shows that it consist 73% of total customer for the company. But these customers have very fluctuating nature and they have greater chance of discontinuing the service and that can be seen from the Table-3 where the rate is 4.3%. On the other hand the acquiring the customer for Market Marys is hard as the marketing professional of the mid-size company are more aware customer and create long cycle for the sales process. They are 27% of the companys customer base and need around $5000 for acquiring single customer. But the retention rate of this segment is very good (Kotler et al., 2015). The main objective of the small business customer is to generate lead for the business whereas the marketing profession is more interest in the market analysis and reports. The product Market Marys need to be much more sophisticated than that the professional are using currently but the customer segment is willing to pay for the high quality product. Based on these facts the recommendation would be developed for the organisation (Peter and Donnelly, 2011).There are other two customer segment that is B2B business customer and B2C business customer. This type of marketing suits the B2B customer segment. Recommendation The organisation HubSpot has grown their business substantially up to now by using the wide base marketing approach. But to propel next stage of growth the organisation need to implement different plan for the marketing process. The marketing process need to be developed strategically. The strategic marketing needs to target the market specifically (Winer, 2008). But there are lot of segment that the company can focus on. Considering the current situation the organisation need to target the Market Marys products customer segment. Currently the segment contributes 27% of the total customer in the organisation. But this segment is quite stable. The acquisition cost of this segment is five times compared to the Owner Ollies segment. But the customer of this segment is willing to spent premium pricing for high quality service. The small business may have low demand at the time of economic difficult situation. If the company cam focus on the Market Maryss segment and the total revenue gen erated from there would be useful for the growth of the company. In this segment the B2B customer would be targeted specially (Winer, 2008).This B2B segment would have low chance of having a consultant for the Web2.0 marketing purpose and the inbound marketing is much more effective for them. Table-2 shows that the B2B segment of the market have high customer acquisition by the company. This approach would help the HubSpot to develop standardised high value services for the customer which would help them acquire the customer and retain them in the long run. Implementation Plan The plan would be implemented through following way. Targeting customer- the main target customer of HubSpot would be B2B market segment of the marketing professional of organisation with less than 100 and more than 25 employees. USP- the B2B segment customer do not appoint consultant in this regard. So the Market Marys would help the organisations to provide better solutions, analysis and business lead through inbound marketing without appointing any Web2.0 consultant. Pricing- this target market has high spending power but need much more sophisticated service. The organisation would develop high quality service for the customer (Cravensv and Piercy, 2006).There the premium pricing would be appropriate for the high quality service deliver. Positioning- the product would be positioned as the complete solution for the inbound marketing process. Distribution- the direct sales channel would be used after generating lead through the inbound marketing process (Jain and Haley, 2009).The sales personnel would deliver the service as per the requirement of the organisation and also would maintain the customer relation in retaining them. Cost benefit analysis- the customer acquisition cost of this market is $5000 but the segment having spending power and willing to pay premium price for quality service (Cravensv and Piercy, 2006).The B2B market of Market Maryss segment normally does not have any marketing consultant for the Web2.0 tools. So they would be much more dependent on the HubSpots service and retaining them would be easy for the organisation. Time frame- the new marketing strategy would be implemented within the 2nd quarter of the year. Within the 2nd quarter the organisation would arrange the production team with adequate number of engineer in it. They would develop standardise product for the target market. From the 3rd quarter onward the marketing activity would bring more customers to the business (Jain and Haley, 2009).The service would get customise above the standardised settings and delivers. The Table-4 show that the on average the B2B target market contributes 60% to the business. In the 3rd quarter of the year the target for this segment contribution would be 70%, in 4th quarter 80% and in the 1st quarter of the next year it would be 90%. The evaluation of the plan would be quarterly basis. Reference Jain, S. C., and Haley, G. T. (2009).Marketing planning and strategy. Cincinnati South-Western Publishing Company 1985.. Cravens, D. W., and Piercy, N. (2006).Strategic marketing(Vol. 7). New York: McGraw-Hill. Winer, R. S. (2008).Analysis for marketing planning. Tata McGraw-Hill Education. Peter, J. P., and Donnelly, J. H. (2011).Marketing management: knowledge and skills: text, analysis, cases, plans. Plano: Business pub., INC. Hollensen, S. (2015).Marketing management: A relationship approach. Pearson Education. Kotler, P., Keller, K. L., Manceau, D., and Hmonnet-Goujot, A. (2015).Marketing management(Vol. 14). Englewood Cliffs, NJ: Prentice Hall.