HubSpot: Inbound Marketing and Web 2.0

Contents
Introduction 3
HubSpot Background 4
Inbound vs. Outbound Marketing 4
Product & Pricing 6
Marketplace & Competition 10
Marketing Strategies 14
Customers & Segmentation 16
SWOT Analysis 22
CRM Implications 23
Problem Statement 25
Appendix A – Exhibits 27
References 30

Introduction

HubSpot founders, Brian Halligan and Dharmesh Shah, were selling more than software—they were selling a philosophy. They believed that Web 2.0 was a game changing technology that could be leveraged to fundamentally change the way marketers attracted customers. At the same time, typical push marketing techniques were becoming ineffective. Greg Stuart, x-CEO of Interactive advertising bureau, estimates that advertisers spend roughly $112 billion (just over half of total spending in 2006) on sending messages that reach the wrong audience or none at all (Anonymous, 2006).

HubSpot designed their products to fill and manage the customer funnel using techniques termed Inbound Marketing. Using the same techniques and products they were selling, HubSpot was able to attract 1,000 customers in a little over a year which showed that their philosophy was sound. In fact, their philosophy was “sold” even before they had a single customer because they were able to raise $17M in venture capital. They attracted a diverse group of customers using the inherent characteristics of inbound marketing techniques. However, two distinct customer segments emerged from the customer database and hence HubSpot positioned their product offerings accordingly. It is clear that HubSpot is at the tail end of the Introduction phase and moving into the Growth phase of the product life cycle.

The owners have reached a stage where they need to accelerate their growth rate and increase profitability.

HubSpot