DIGITAL MARKETING STRATEGY

Manjiri Bhojane 2211491

Abhinav Paigwar 2111344
Rajat Suvagia 2211434
Ankita Prakash 2211006
Amit Mandal 2211184
INTRODUCTION
HubSpot
Founded in 2006 by Brian Halligan and Dharmesh Inbound Marketing
Shah Strategies and practices that pulled prospective customers
Enabled business with new marketing tools for Web 2.0 towards business and products.
Content Design: Content management sys. for easy Sales + Marketing = Smarketing
editing and creating online content
Exposure Optimization: Inc., the visibility of online Outbound Marketing
content of their customers Any kind of marketing where online channels are not
Lead tracking and Intelligence: Generates qualified involved, mainly push marketing. Traditional form of
leads by telling where are the potential customers marketing

Outbound Marketing Vs Inbound Marketing

• Messages are pushed towards the audience irrespective of their interest in Outbound marketing, whereas in the case of
Inbound marketing messages are designed in a way that they attract only the interested segment of market
• Lead generation of inbound marketing costs 5-7 times less compared to outbound marketing
• Inbound focus on the ability to distribute content such that it is easily found by prospective customers using search engines,
SEO
• Inbound marketing allows small businesses to compete with larger firms by leveling the playing field
Q1: Do you agree with HubSpot that the "rules of marketing" have changed? If so, how? Is inbound marketing
the answer? Why or why not?

Yes, The "rules of marketing" have indeed changed, and HubSpot recognizes this
shift.

1. Consumer Behaviour Shift: Digital technologies and social media have transformed
how consumers interact with brands, making traditional marketing less effective.

2. Value-driven Approach: Inbound marketing provides valuable content that attracts

and retains interested customers.

3. Targeted Engagement: Inbound marketing enables personalized and targeted

communication with the right audience, increasing engagement and conversion rates.

4. Cost-effectiveness: Compared to outbound marketing, inbound marketing often

provides a higher return on investment due to its focus on targeted and valuable
content.

5. Customer-Centric Approach: Inbound marketing puts the customer at the centre,

focusing on addressing their needs and providing valuable solutions.

HubSpot's emphasis on inbound marketing positions it as a solution that

caters to the evolving needs.
Q2: Is HubSpot finding and serving the right set of customers? Given its position as a start-up company, should
it widen its focus to serve any customer that comes its way? Or narrow their target, by focusing exclusively on
either Owner Ollies or Marketer Marys? Or by focusing exclusively on either B2B or B2C customers?

HubSpot's target markets are small and medium-sized businesses (SMBs),

who want to draw in and keep consumers through online channels.

Currently they are catering 2 types of customers name "Owner Ollies" and
"Marketer Marys."

Owner Ollie's market share ~73%, low acquisition cost $1000, has low CLV, high
churn value, and vulnerable to economic changes

Marketer Mary's market share ~23%, high acquisition cost $5000, risk of
uncertainties of market trends, low churn rate, high CLV, influence as an
industry expert.

They should focus on other sectors after they have gained market traction and
a strong client base in the targeted customer segment.

As a start-up company, HubSpot should first focus on elements like market size,
competition, and resource allocation.

Focus on B2B clients first to gather knowledge and needs of commercial

clients, then B2C to comprehend market potential & available resources.
Q3: HubSpot has begun to differentiate its products as it has learned more about its customers. Should it do
more? Should its pricing strategy change too? Does the software-as-a-service (SaaS) pricing model work for
both Marketer Marys and Owner Ollies? Should HubSpot try to immediately capture more value for either of
these customers?
Product Differentiation
Yes, HubSpot should look for increasing product differentiation,
Diverse Customer Base: Due to inbound marketing, HubSpot has a diverse set of customers, so it is not ideal to keep standard product line.
Customer Needs: HubSpot's offerings lack alignment with diverse customer needs. For B2C firms content templates are rudimentary, while B2B
firms seek additional technical support and B2C small companies experience higher churn rates than B2B companies, indicating unmet needs.
Low CMS User: The major customer base for HubSpot is Owner Ollies (73%) or B2B (68%), both of these do not have expertise in WEB 2.0, yet
the CMS customer base is only 15%.

Pricing Strategy
HubSpot is able to break-even and earn revenue much before the 16th week, after
which peak churn rate can be observed, indicating HubSpot has a strong financial
base.

Value Capturing by Revamping Pricing Strategy

Owner Ollie Lock-in by Incentivizing Overcome Initial Burst Value Capturing in B2B
Annual contracts at discounted price Offer a more basic product package Premium product package with higher
Increase the initial subscription price at a substantially lower amount and consulting hours and analytical tools.
and post break-even period offer a incentivize to move to premium CMS bundle product with customized
discounted price / month products range training
Q4: Are Halligan and Shah being too stubborn by not doing any outbound marketing? Or should they continue to
practice what they preach by focusing on inbound marketing alone?

To retain Subtle introduction to outbound marketing

customer's belief
and trust
Calling the customers who have dropped out
after using the services

Should practice To stay true to the Using options which do not interrupt the
what they preach company's original audience or force them, like brand collaboration
- Focus vision and objective
Using indirect options like a quiz/contest and
promoting it using outbound marketing,
collecting 1P data
Inbound
marketing brings Reminder cold calls to customers who reached
in quality lead out but didn't opt for HubSpot
Q5: Halligan and Shah want HubSpot to be to marketing, what Salesforce.com is to sales. What would your plan
of action be to make this happen? Why would you take these actions? What keeps you up at night about your
plan?

Customised Pricing Model Building trust in customers Focus on R&D

Hubspot is providing personalised

They already created 2 major
service to customers, they can To make the firm future-ready,
segments. Now they can bring in
move to value based pricing and they need to have dedicated
sector specific experts and staff
custom pricing for the customers market research & R&D team to
them to that segment. In this way
along with bundles and dynamic develop their product
customer feel more reliability
pricing. Try Freemium

Quality over Quantity Combine Inbound & Outbound Focus on Automation

They are already doing good, It is proven that inbound

Some tasks are very basic, like
now if they can focus more over combined with outbound can
training and setting up some
quality of service delivery, produce better results than one
regular campaigns, they can
customers will anyways get alone. They can include outbound
automate that to focus on more
attracted. Alternatively, they can services to reach out to
important tasks.
look into geographical expansion customers as well