Starting as a self funded business by two MIT graduates in 2006, today HubSpot is spread across 56 countries reaching 8440 customers in 2012 (Halligan, 2013). Although, Hubspot’s marketing strategies did not, particularly target a specific group of customers (Steenburg, Avery and Dahod, 2011) their market segments, can briefly be divided into four groups; based on the size of organization (demographic segmentation) and the markets they operate in (behavioral segmentation). Small companies, with 1-25 employees make up of majority of HubSpot’s customer profile. Mostly new startups, these companies hold a high degree of risk involving several economic factors. Often referred to Owner Ollie’s, they are looking for new customers, thereby requiring large volumes of new leads. Since these companies have little or no experience in marketing, they are able to achieve immense value in the beginning of their contract and are therefore susceptible to abandoning their contractual agreements. …show more content…
However, they require premium services, more exclusive products and come with a higher acquisition cost. Hubspot’s consumers come from two distinct markets; B2B (Business to Business) and B2C (Business to consumers). The B2C customers are more familiar with web 2.0 and have existing social media presence with the help of their prominent websites, their purchase cycle is usually straightforward and short. On the contrary, B2B consumers, rely on group buying, and usually have multiple people making decisions (Abratt, 1993). They lack experience in the inbound marketing industry require a higher degree of attention and a more personalized