uHubSpot: Inbound Marketing and Web 2.0
By Ashna Bali
1) According to HubSpot, the rules of marketing have changed in the sense of the way that businesses approach or reach out to their customers. HubSpot believes in tapping into technology and Internet for marketing businesses and products by using Web 2.0 tools and methods such as blogging software, social media and search engine optimization.
The CEO of HubSpot, Brian Halligan, believes that the traditional “outward” methods of marketing are seen by potential customers as an interruption in their lives (For example, advertisements on TV while watching your favorite show) and society is getting better at blocking out such interruptions. Therefore, the impact of such marketing is
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However, the Small Business Owners have a higher churn rate and derive much of their value from HubSpot in the first few months as a customer and tend to cancel their subscription after that. Therefore, they are not long-term customers for HubSpot.
CLV Calculation | OO | MM | B2B | B2C | Churn rate | 4.3% | 3.2% | 3.3% | 6% | Consumer lifetime in months | 23.26 | 31.25 | 30.3 | 16.67 | Acquisition Cost | 1000 | 5000 | - | - | Monthly profit | $250 | $500 | | | Customer lifetime value | $4815 | $10625 | | |
After calculating the CLV we can clearly see that the value of the Marketing Professional Customer ($10625) is more than double that of the Small Business Owner customer ($4815) and therefore HubSpot should prioritize their marketing efforts towards the marketing professionals. Even though the acquisition cost of the Marketing Professional customer is pretty high, their churn rate is quite low and their Customer Lifetime Value (CLV) is very high which makes them more valuable in the end.
Also B2B customers derive more value from Inbound marketing as compared to B2C customers. Also, they have a lower churn rate.
So, HubSpot should definitely use more resources towards and pay more attention to B2B and MM customers .
3) Yes, according to me HubSpot should continue to practice what they preach and engage in inbound marketing alone. How can they
CleanSpritz, a subsidiary of MJ Brenner is a manufacturer of cleaning supplies whose target market is threefold. The three industries are as follows: industrial products, home cleaning products, and auto cleaning products. Stateside revenue for their product line reached $53.76 million in 2011. However, since 2008, annual sales have been on the decline by an average of 7.5% annually (Gold, 2015). As a result of their declining sales, MJ Brenner VP of strategy gave CleanSpritz’ marketing team, led by Claire Beaton, six months to devise a plan to revive their sales strategy. Next, we will review a SWOT analysis of
'Traditional marketing in the business-to-business environment requires very different strategies from those campaigns directed towards the consumer market.' (ExtraVision, n.d., p. 1) 'Consumer competition can be a lot fiercer, with customer loyalty a constant battle.? (ExtraVision, n.d., p.1)
two groups, the Tier One, or priority, customers and the Tier Two, or normal, customers. The CEO insists that to remain
Executive Summary…………………………………………………………………………………………………3 Current Marketing Situation……………………………………………………………………………………4 SWOT Analysis………………………………………………………………………………………………………..6 Target Market…………………………………………………………………………………………………………6 Positioning and Competitive Map…………………………………………………………………………..7 Price……………………………………………………………………………………………………………………….10 Distribution…………………………………………………………………………………………………………….10 Sales Force……………………………………………………………………………………………………………..10 Advertising &
4. By expanding the distribution channel one single customer doesn’t dominates the market share, and limited distribution channels could affect company’s bottom line.
However, at this stage, they need effective and cost-efficient marketing strategies and plans to survive and grow. They usually do not have big budgets, and are often less experienced in the modern ways of marketing. However, they spend a larger portion of their revenues (17.8%) on marketing (Moorman 2012). Being a start-up firm with low overheads, PMC can empathize with the challenges being faced by the smaller businesses, and provide tailor-made services at reasonable price. It can also connect at a personal level with the founders to understand their vision for the business. The consultancy market is highly competitive with both freelancers and big agencies targeting the SMBs. PMC will attempt to differentiate itself with customized professional services and innovative ideas which use appropriate data and market intelligence. The personalized approach will make the client get maximum attention from the best professionals in the firm.
HubSpot is a new company founded in 2006 by visionaries’ entrepreneurs. They sell not only a service product which provides technological tools and offers business solutions; they also sale a system a new concept of how to do business. Any business needs from marketing along with communication strategies to have certain contact with people that eventually become potential customers. Contacts promote sales. Traditionally marketing was employed through traditional communication techniques such as: Tele marketing, Direct Mail, Person-to-Person through salesmen and so forth. These traditional ways of do marketing are called Outbound Marketing.
The second part will present the SWOT analysis based on internal and external environment. The last section is to set the marketing objectives for developing the marketing strategies.
MKTG 364 – Internet Marketing: Your Article Presentation # 1 is due this Friday, September 11th. Let me know if you need to contact a tutor to help you to complete
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