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Marketing 741 SECTION 8am/9:30am/11am/2pm

Target Market Selection

Should HubSpot cast a wide net or narrow their focus? Effectively argue that HubSpot should narrow their focus using frameworks we have discussed, as well as points from the case.
The company is now facing with customers with diverse needs and preferences. In fact there are customers with different preferences and also competitors that provide services to different segments. These segments can be categorized as small companies, large companies, business to business and business to customers. The services that must be offered to each of these segments should be different considering their different needs. For example, the price should also be different to comply with the offered services and the degree of required interaction between the company and its customers. The channel of approaching could also be different. For example,

Should HubSpot target B2B or B2C customers?
-Use a mix of qualitative (strategic) and quantitative (CLV, market potential) facts to argue your point. Do not restate points from the case, but use them to support your decision.
-Will this group be receptive to the product? I.e., is HubSpot providing value to these segments? Is there competition in this market? Is HubSpot well positioned to serve these customers? Are there any other outside forces we should consider?

Based on the facts that presented in the case the company should address B2B customers. Focusing on this segment could increase company’s profitability.
Form the quantitative perspective, the CLV that B2B customers provide is much higher than that of B2C customers, $3,269 versus $11,923 respectively. Considering the assumed same population of these segments, the total potential market value of B2B customers is higher than that of B2C customers.

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