Banner Code: 07 15824
Lecturer: Inci Toral
Assignment Title: Case Study: Target the Right Market
Word Count: 1246
ID number: 1291160, 1207270, 1249898, 1228189 and 1259957
An essay Submitted to
Graduate Diploma in Business Administration Year 2, 2013
Birmingham, United Kingdom
11th, March 2013
This report explores case study of SparkPlace that was originally influenced by the case of HubSpot: Inbound Marketing and Web 2.0 (Steenburgh, 2009), an online-marketing software company. Due to the limited resources available to this company, it wants to target two available markets: small businesses with no more than 20 employees and medium-size businesses with 20 to 100 employees. The case illustrates that they are in a crossroad to choose within these two segments. The report will review company’s performances, marketing challenges, possible solutions and implementation.
The company’s performance
SparkPlace, a software developer on permission-based marketing campaigns for social media, has targeted companies with less than 100 employees, despite the fact that U.S., as seen on the table below, business employment have made up about more than 80% of US businesses from companies with more than 100 employees (U.S. Census Bureau, 2008). Consequently, the company should implement a good strategy on the available limited market to gain a significant penetration either to the existing or adjacent markets to make its business profitable and increase the market share. However, there are some issues to deal with in order to reach those markets.
It could be identified that one major challenge faced by the sales and marketing executives at Sparkplace is the dilemma in selecting the suitable market segment. The managerial competence of the firm is questioned when the management stands at a crossroad in order to select the best criteria, namely making a choice between generating profits in a
Bibliography: 1. Wheelen, T.L. and Hunger, J.D., 2007, “Strategic Management and Business Policy”, Eleventh Edition, PEASON Prentice Hall. 2. P&G UK and Ireland: consumer product company, best brands, sustainability, news http://www.pg.com/en_UK/ (2012) P&G UK and Ireland: consumer product company, best brands, sustainability, news. [online] Available at: http://www.pg.com/en_UK/ [Accessed: 8 Mar 2013]. -------------------------------------------- [ 1 ]. This case introduces the concept of inbound marketing, pulling customer prospects toward a business through the use of Web 2.0 tools and applications like blogging, search engine optimization, and social media. It follow the growth of HubSpot, an entrepreneurial venture which, in its quest for growth, faces significant challenges including: developing market segmentation and targeting strategies to decide which customer to serve and which to turn away, configuring pricing strategies to align with the value delivery stream customers experience, and determining whether inbound marketing programs can generate enough scale or whether traditional outbound marketing methods need to be employed to accelerate growth. [ 2 ]. Companies that are the following sizes or smaller are considered small businesses according to the Small Business Administration (SBA): Manufacturing and mining industries - 500 employees. Wholesale trade - 100 employees. Retail and service - $6 million. Construction - $28.5 million. Trade contractors - $12 million. [ 3 ]. It refers to any form of online direct marketing that involves gaining each recipient 's permission. This type of marketing typically involves sending promotional material via e-mail to an opt-in list of subscribers.