Hubspot - Case Analysis Essay

1. Before maturity, a bond may be selling at the face value or at a price greater or lesser than the face value.The terms “premium” and “discount” refer to the difference that exists from the face value of the bond. Bonds selling at a price greater than the face value are said to be at a premium and the bonds selling at a price lesser than the face value are said to be at a discount.

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 potential market for HubSpot is worth approximately $12 billion. However, within this market there are two methods of segmentation and two categories within each segment. The market can be divided into Owner Ollies and Marketer Marys or B2B and B2C companies. HubSpot provides a service that provides significantly more customer value across the three dimensions of customer value (functional, monetary, and psychological) to the B2B segment than the B2C segment. The differences in each dimension of customer value will be discussed later, but the results are evident in the large disparity between customer lifetime value for B2B customers ($7,368) compared to B2C customers ($3,269). Additionally, the needs of these two customers are significantly different. Concentrating resources on the higher value market segment will enable HubSpot to maximize customer value by providing a product that best meets that segment’s needs and therefor profit for the firm.

“This is a type of marketing strategy where your business tries to attract attention to their product or service by campaigns that go “out” into the inner department communication in order to generate interest. Many consider this style of marketing to be old school since the dramatic rise in popularity of the internet and the World Wide Web. Here are some typical outbound marketing strategies.”(http://www.nationalservice.gov)

The following are the factors that created an opportunity for Bob Reiss and TV Guide game:

Marketing strategies of today are completely different from what they were just a decade ago. Before the term inbound marketing was first introduced by Hubspot, the efforts that businesses put into the marketing process were rather different. Ads were placed on television and billboards, fliers were sent out in the mail and people would receive multiple email offers from businesses eliciting their business.

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.

Well-organized structure. There is clear defined stages and the fixed timetable to follow during the dispute settlement procedure. This dispute settlement system indeed become more effective than that of GATT 1947 (Food Fight n.d.), which is capable of dealing with complicated cases.

None of [the old rules of marketing] are true anymore. The Web has transformed the rules, and you must transform your marketing to make the most of the Web-enabled marketplace of ideas. — David Meerman Scott, author of The New Rules of Marketing and PR Business was good at HubSpot. Founders Brian Halligan and Dharmesh Shah were thrilled with the progress their young company had made in the two years since they began their journey to convince corporate America that the rules of marketing had changed. To be successful in the marketplace, HubSpot needed to be much more than just a software company. Its founders had to become

Customers don’t seem to see enough value in Hubspot’s inbound marketing and that explains churn rate and cancellations. Marketing departments of large customers are missing from segments.

HubSpot is a web-based software company based in Cambridge, Massachusetts that helps businesses succeed in the digital age by eliminating the mismatch between shifting consumer trends and traditional outbound interruption-based marketing methods. The problem with the latter method stems from many having learned to effectively tune these out. HubSpot’s core competency stems from their powerful, easy-to-use, and integrated set of applications that businesses utilize to capture key customers through inbound experiences that are personalized, helpful, and relevant. While HubSpot operates as a marketing automation software firm, it doesn’t fit neatly in the online marketing space as do traditional companies such as Eloqua and Marketa (Case: Exhibit 4). Nonetheless, the company delivers a user-friendly and complete marketing platform that helps their customers get found, generate relevant leads, then nurture these leads until they’re ready for sales.

Although business at inbound marketing firm HubSpot was good, but founders Brian Halligan and Dharmesh Shah has come to realize that their business is at a crucial juncture (Steenburgh, Avery & Dahod, 2014). In order to continue on the path of growth, Brian Halligan and Dharmesh Shah must make some decisions regarding the direction of their company. To achieve the company’s goals of growth acceleration and maximum profit, HubSpot realizes they need to overcome a few challenges inbound marketing presents.

The web is proving to be a great equalizer. Small companies can have a web presence that positions them alongside big companies, without having to invest in significant infrastructure. With the right website, small companies can attract and retain customers as well as any large company in the marketplace. This means that differentiating and maintaining market share is key to any company’s success.

Hubspot Incorporated was founded by Dharmesh Shah and Brian Halligan in 2006 after they graduated from MIT. Based in Cambridge, Massachusetts, HubSpot’s goal is to create a new form of online marketing and advertising. In providing new marketing strategies to companies, HubSpot leads a change in providing advertisements that online users not only find interesting, but also relevant and pleasant (Our Story). With 1,157 full-time employees (Form 10K), HubSpot intends on growing these strategies regarding online advertisements to promote a brand effectively without being a nuisance to information-hungry website users. HubSpot remained a private company until August 25th, 2014, when they posted their IPO on the New York Stock Exchange (Investor Relations).

In concentrating with the selected market for our products, the expected outcome is cost-effectiveness and high returns. The major problem encountered is customers are spread over different continents with a wide range of media services available at their disposal hence the big decision of which medium to use to reach them. It is very expensive to post adverts in all the social and business internet sites ADDIN EN.CITE Vedin2011226(Vedin, 2011)2262266Vedin, B.A.The Design-Inspired Innovation Workbook2011New JerseyWorld Scientific Pub Co Inc9789814289634http://books.google.co.ke/books?id=j-_lDwEHsboC( HYPERLINK l "_ENREF_3" o "Vedin, 2011 #226" Vedin, 2011).