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SparkPlace is a two-year-old business with a hot new product: software that manages and measures the effectiveness of permission-based marketing campaigns for social media. The company is in the process of deciding on which of two customer segments to focus its strategy. Each segment has demonstrable advantages, but developing the product for and marketing to both segments simultaneously could pose big challenges. Is the argument against being "all things to all people" a valid one? If so, which customer segment should SparkPlace target? Or is there a single strategy that can capture the potential value of both types of customers without draining the company's resources?

The business strategy should be prioritize based on short term and long term goals. The information given about the case is not uniform in that it states assumptions and facts within two time frames; immediate and lifetime. Business leaders and decision makers need to distinguish what is a fact in the immediate future (what they know is 100 % true) from what they think is likely to occur in the future.
Restating the immediate numerical facts about the case. Sams; 1.3 million, Maries; < 1/2 million. Marketing ROI; Sam, 5:1, Mary 2:1. Average client length; Sams; 3 months, Maries: longer (unknown). Maries are more expensive to net as clients by a factor of 5 to 1.
Future assumptions: Maries will remain more profitable in the long run by a factor of 5 to 1. Some Sams will grow into Maries. Sams could become more profitable if more attention is given and or contract length is increased.
Unknown assumptions: Can the software be tailored to the needs of Sams and at the same time be rigid enough for the needs of larger companies? Will Maries become more attentive to the product as it becomes more widely used and gains a reputation for itself? Can the product be diverse enough to be used simultaneously as a product for both small and medium sized companies?
Short Term / Long Term Strategy

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