Problems
Founders Brian Halligan and Dharmesh Shah of upstart inbound-marketing firm HubSpot have come to a crossroads in their business model. The direction of the company must adapt in order to continue on the stated path of growing as big as possible, as fast as possible. HubSpot is facing two problems that it must address in order to accomplish its goals.
First, HubSpot has a corporate culture centered on an evangelical attitude towards inbound-marketing. HubSpot offers the services of inbound-marketing, which uses strategies such as Search Engine Optimization (SEO), the ability to write compelling content that attracts customers and the ability to attract and engage a community of followers who interact with the content.
It
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While not going so far as to begin cold-calling for new clients, HubSpot could develop a targeted outbound-marketing campaign in environments such as industry trade shows that may open up the company to potential customers who may have yet to hear of HubSpot, try their services or contact them about service subscription. If done properly, HubSpot could use an outbound-marketing strategy for its inbound and outbound services while still staying true to its roots.
Alternatives for pricing
The pricing structure has the potential to evolve in a number of different ways. HubSpot could go begin selling subscriptions for longer intervals beyond month to month to lock in customers for longer periods of times. This could be particularly beneficial for keeping the Owner Ollies from canceling services immediately after receiving the majority of the added value.
HubSpot could also begin charging B2B and B2C customers differently as well. B2B customers derive greater value and could be charged an added premium or conversely B2C customers could be given an added discount of services if combined with a longer subscription purchase.
Hubspot could also increase its initial fee of $500 for Owner Ollies who reap the majority of the benefits upfront and who don’t require as much customer service. A discount to this increase could be coupled with participation with the CMS service, thus increasing the chance the customer stays with HubSpot
QUESTION 3: What will be EasyFind's new price if they choose to implement the price
Exhibit 5 shows the breakdown of fixed costs. Exhibit 6 shows corresponding contribution margin for compensation based on a fixed fee as well as a 100% variable fee. If we assume Alltel would pay the talent 90% of ticket prices, which would vary slightly depending on talent, while maintaining the same facilities charge and service charge, the total contribution margin drops form $37 per paying customer to just over $15.While this is not ideal, the benefit is the reduction in up front expenses required. By going to 100% variable compensation Alltel no longer has a substantial fixed cost associated with paying the talent. Since Alltel only received ~10% of sales, we would suggest Alltel no longer handle the promoting, saving them another $20k in fixed advertising cost. The talent would now be in charge of the promotion. They would have the most to gain from the promotion as they would retain 90% of sales. Hiring a promoter would have its own ROI calculation and Alltel could certainly continue to offer the services but with a fixed price outsourced model or affiliate variable compensation model negotiable with each event. Alltel is not a true promoter and this would allow them to focus attention on their core business and let true promoters promote. The net result of this is a contribution margin 38% and a breakeven of 5264 paying customers. This is down from the previous breakeven of 8341. We would describe this process of
4. Distributing services using activity based costing reveals that Customer A is a highly more profitable consumer to Western than Customer B, despite identical net sales (see attached). Customer A uses less storage, delivery services, has fewer requisitions and a smaller inventory balance, making them a more inexpensive customer to service, in comparison to Customer B.
HUB - An Ethernet hub, active hub, network hub, repeater hub, multiport repeater or hub is a device for connecting multiple Ethernet devices together and making them act as a single network segment.
Raise our prices by $10 per week for each age range, which is still $10 -$20 per week less than the competition.
I, Marion Forbes the recently appointed senior human resources manager at Hallington Utilities Services (HUS), am facing with a dilemma; work out HR strategies with the Organizations mission and handle employee’s issues and concerns. HUS has made changes due external and internal factors encountered in the market as well as the new regulations happening within the sector. All are very complicated and my main issues are privatizing, downsizing, unionization, motivation, training and compensation. With the information collected, I need to figure out
* Offer more service plans that can offer a wider range of flexible pricing options especially for younger riders
(Denhart). Of course people can pay more per month or all of it at once, which is extremely rare,
If promotion is done well, sales will increase as customers are aware of what Houzit can offer: quality and payment plans. With good quality products customers will spread the words by mouth and in return Houzit will gain more customers and increase in customer loyalty. Promotion such as advertising has to be done moderately not to overuse as there is a limited budget to sustain a business.
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.
According to Houzit’s policy and procedures the following detailed Work Plan Summary needs to be undertaken:
Nathaniel seems to have the strongest argument by saying that HubSpot should go after Owner Ollies since they already succeeded at attracting 73% of them. A large market share can be beneficial because it helps in achieving economies of scale. But the downside to pursuing marketers Ollies is that they are not loyal to the company and have a lower retention rate as opposed to Marketer Marys. In terms of lifetime value, it makes sense to focus on Marketers Marys because they have a high retention rate and they bring in more dollars.
XM’s development costs are high as they are introducing a new technology ($1 bn+). Initially, their costs may be high so that can recover some of their investments. However, over time as XM understands the market landscape better, moves up the learning curve and achieves economies of scale, they may be able to operate more cost effectively, which may allow them to charge lower prices over time. Also, with SIRIUS in the market, XM may have to lower their prices to remain competitive. However, if SIRIUS decides to keep costs high or increase them, XM may not be pressured to reduce prices. Also, with time if XM’s customers increase, they can continue to earn high revenues while lowering prices. If for some reason SIRIUS leaves the market or XM locks in a substantial number of customers who may find it difficult to switch i.e. achieve somewhat of a monopoly, they will be able increase their fees. With that said, XM can maximize their 5 years profits with a fee of $10-12 according to Table A. However, the variable market dynamics over time will determine how XM can price their service.
EQWIP HUBS, a new project initiated by a strategic alliance between Canada World Youth (CWY) and Youth Challenge International (YCI), financed by the Ministry of Global Affairs Canada, delivered a “Training of Trainers” workshop to their team this month. EQWIP HUBS Bolivia, along with locals partners Infocal and Ser Familia, were trained on a methodology entitled “Work Ready Now” which focuses on building the employment and life skills of beneficiary youth in La Paz and El Alto. With this training complete, staff and volunteers are prepared to begin offering workshops and tertiary training to youth in the coming months.
Inbound marketing was coined by HubSpot founders to “describe marketing strategies and practices that pulled prospective customers toward a business and its products, through the use of Web 2.0” and its applications. By contrast, traditional marketing (also referred to as outbound marketing), reaches out to a client’s customers using marketing techniques such as print advertising, radio advertising, TV advertising, cold calling, direct mails, and trade shows. HubSpot observed that traditional marketing techniques were becoming less and less effective at bringing in new business. Three factors