Marketing Analysis : Marketing And Marketing

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Market Segmentation

HubSpot has evaluated the market and classified it into different segment profiles: Marketer Mary’s (MM’s) and Owner Ollies (OO’s) as well as B2B and B2C. The case highlights that B2B companies derive greater value from inbound marketing in comparison to B2C companies for a number of reasons. Firstly, B2B companies’ products are more complex and thus they require in-depth product specification and explanation, e.g. tutorials and blogs. In addition, since their customers have a longer decision making cycle, B2B companies are more selective about whom their sales forces focus on. Thus B2B companies also benefit from the lead qualification analysis that HubSpot provides. Consequently, they have a much lower churn rate than B2C companies– 3.3% vs. 6.0%.

HubSpot has also made a distinction between small business owners, the “Owner Ollie” (OO’s), and the marketing professionals for bigger firms – “Marketer Mary”(MM’s). OO’s are usually small businesses with 1-25 employees and account for 73% of the generated sales. Their demand is fairly simple - they want simple solutions that will not take much of their time, since they have to manage all the different areas of the company. Also, OO’s have little knowledge regarding Web 2.0 and thus inbound marketing can have a bigger initial impact on these businesses. 13 % of OO’s host their websites on the HubSpot Content Management System (CMS), whereas only 2% of MM’s do so. MM’s are marketing professionals working in
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