Question Details

[solved] HubSpot: Inbound Marketing and Web 2.0 None of [the old rules of marketing] are true anymore. The Web has transformed the rules, and you must...

Can you provide 1.5 pages ?on Opportunity and Treats (SWOT) With to references (see attached)

HubSpot: Inbound Marketing and Web 2.0 None of [the old rules of marketing] are true anymore. The Web has transformed the rules,


and you must


transform your marketing to make the most of the Web-enabled marketplace of ideas.


? David Meerman Scott, author of The New Rules of Marketing and PR


Business was good at HubSpot. Founders Brian Halligan and Dharmesh Shah were thrilled




the progress their young company had made in the two years since they began their journey




convince corporate America that the rules of marketing had changed. To be successful in the


marketplace, HubSpot needed to be much more than just a software company. Its founders


had to


become evangelists, preaching a new way of doing business that would fundamentally


change how


marketers reached their customers. To their great pleasure, Halligan and Shah were finding a




audience for their ideas. HubSpot was now considered a thought leader in the Web 2.0


space, coining


the term ?inbound marketing? to describe marketing strategies and practices that pulled




customers toward a business and its products, through the use of Web 2.0 tools and


applications like


blogging, search engine optimization, and social media.


Halligan and Shah realized that their business was at a crucial juncture. They had just


reached the


noteworthy milestone of 1,000 customers, attaining this level of critical mass by practicing


what they


preached. HubSpot had built its business by turning its back on traditional marketing


methods and


was solely using innovative inbound techniques to acquire customers. Looking ahead, the




wanted to accelerate their growth rate and increase profitability. Ironically, they were


grappling with


many of the same issues that their customers faced when implementing inbound marketing




Halligan and Shah realized that they would need to work through these issues in order to




their goals for the company. First, they would need to decide which customers to serve,


pulling the


best opportunities from the diverse pool of customers who were contacting them. Second,


they would


need to make some decisions about their current pricing model to entice new customers to




company and to maximize the profitability of existing customers. Third, they would need to




whether they could achieve enough scale through inbound marketing efforts, or whether




needed to supplement their inbound programs with traditional, interruptive outbound




This was more than a test of HubSpot as a company; it was a test of the inbound marketing




philosophy. If HubSpot couldn?t scale its own business using inbound marketing, then how


could it


convince its customers that inbound marketing would work for them? This document is authorized for use only by Audra Pinero ( Copying or posting is an infringement of copyright. Please contact


or 800-988-0886 for additional copies. 509-049 HubSpot: Inbound Marketing and Web 2.0 2 Founding HubSpot


The two HubSpot founders met at the Massachusetts Institute of Technology (MIT). As early




eager students of Web 2.0, Halligan and Shah recognized the transformative power the




possessed for changing the way small businesses operated. After graduation, Halligan joined


Longworth Venture Partners, a venture capital firm with an expertise in technology. As he




with start-up companies, he recognized an issue with which they all struggled?how to


harness the


Internet to build a business. Halligan, like many of his clients, came from a traditional sales




marketing background, working for the high-tech companies Groove Networks and




Technology Corporation. However, at Longworth, he began to realize that the traditional




and sales methods he had previously employed were losing their effectiveness in the new


Web 2.0


world. Shah also grew up in the technology sector, holding a number of management and


development positions in technology companies. Prior to forming HubSpot, Shah was


founder and


chief executive officer (CEO) of Pyramid Digital Solutions, an enterprise software company


and the


winner of three Inc. 500 awards, which was acquired by SunGard Data Systems. Shah also


authored, a top-ranking blog and online community for entrepreneurs.


Halligan and Shah founded HubSpot in 2006. With Halligan?s marketing, sales, and venture


capital expertise and Shah?s technological knowledge and experience as a successful




the two were a winning combination. Halligan became the CEO and served as HubSpot?s


evangelizing front man. Shah became the chief software architect and focused on product


development. On the strength of their business plan, Halligan and Shah attracted premier




partners. After initially self-funding the business, Halligan and Shah raised $5 million from




Catalyst, a Cambridge-based venture capital firm, in 2007. Less than a year later, the team


raised an


additional $12 million from Matrix Partners, a venture capital firm with offices in Boston and




Valley. For a young start-up, HubSpot had a solid financial foundation.


Halligan and Shah strove to create a distinct culture at HubSpot. They headquartered the


company near MIT in Cambridge, Massachusetts, a hotbed of activity for high-tech start-ups,




they staffed up with young, eager MIT graduates who were immersed in Web 2.0 culture.




HubSpot office buzzed with energy. The sleek, minimalist architecture contrasted with the




and passionate young team, who craved a fast pace. The team battled over business with


the same


gusto that they battled over the last slice of pizza. Inbound Marketing HubSpot built software products that helped companies execute inbound marketing


programs to


supplement or replace their traditional outbound programs. In the current environment,




marketing?s effectiveness was diminishing as consumers, feeling bombarded by the daily


deluge of


commercial messages, began tuning out. Increasingly, direct mail, trade shows, and




were yielding less new business. In contrast, companies were finding that search engines,


blogs, and


social media were generating new business at higher rates. These communication programs




more consistent with the inbound marketing approach. As HubSpot explained on its


corporate blog:


Outbound marketing is about pulling people away from their dinner, or family, or TV and


interrupting their lives. Do you really think you are important or interesting enough for them


to want to talk to you instead of doing whatever they were doing when you interrupted




They have not invited you into their home, and they certainly do not happen to enjoy being


interrupted. Instead of spending your whole day interrupting people and hoping they pay


attention, try setting up a blog and writing interesting content, so that people want to hear


what you have to say and come find you when they?re interested in your products.


This document is authorized for use only by Audra Pinero ( Copying or posting is an infringement of copyright. Please contact


or 800-988-0886 for additional copies. HubSpot: Inbound Marketing and Web 2.0 509-049 3 Inbound marketing is a collection of marketing strategies and techniques focused on pulling


relevant prospects and customers toward a business and its products. Inbound marketers




useful information, tools, and resources designed to attract prospective customers to the




during the time when prospects were actively engaged in a search for a particular product or




The informative content that the inbound marketer produced was used to entice prospects


to interact


with the company and begin a relationship with it. As HubSpot?s vice president of marketing




Volpe explained, ?Instead of interrupting people that don?t care, why not help those who


want what


you?re offering to find you? We have found that building interesting tools is a more effective


marketing tool than doing advertising. Things like this get people curious and draw them in.?




new approach to marketing complemented the way consumers were actually making




decisions: by using Internet search, online blogs, and social networking sites like Facebook




Twitter to learn about products and services before they bought them. HubSpot preached


this new


way of marketing:


Instead of interrupting people with television ads, inbound marketers create videos that


potential customers want to see. Instead of buying display ads in print publications, they


create their own blog that people subscribe to and look forward to reading. Instead of cold


calling, they create useful content and tools so that people call them looking for more


information. Instead of driving their message into a crowd over and over again like a


sledgehammer, they attract highly qualified customers to their business like a magnet. To be maximized, inbound marketing required three distinct skills. The first was the ability to


write compelling content that would attract customers to the business. According to


HubSpot, this


content had to be useful to customers and not just a promotional message:


Whole Foods publishes recipes, profiles of their vendors, forums and a lot more. Across all


of these mediums they use the right tone. Their content is useful first, and promotional




not the other way around. This means that their customers find them when they want to




how to make oatmeal cookies, when they want to learn more about where their apples come


from or when they want to watch a cooking show.


The second skill was the ability to distribute that content so that it was easily found by




customers using search engines, which required a sophisticated understanding of search




optimization. The third was the ability to attract and engage a community of followers who


interacted with the content, added their thoughts to it in an ongoing dialogue, and


disseminated it to


others. Firms that nurtured an active audience gained credibility in the marketplace,


because it was


the support of an audience that conferred expertise in a particular area.


In contrast to traditional outbound marketing, in which a business?s message was pushed to




mass audience that contained many who were not in the market for the product, inbound




was designed to create content that pulled in only those customers who were interested in




product. This created marketing efficiencies. According to Mark Roberge, vice president of


sales for


HubSpot, inbound marketing blended marketing and sales: ?One of our salespeople calls it


?smarketing??we really blend it together so much more.? Volpe explained this concept


further in an


interview with ?Our salespeople hear things like ?Oh, HubSpot. I?ve been




to talk to you guys,? or ?Oh, I just watched your webinar yesterday. I had a couple of


questions.? So


it?s the opposite of a cold call. It?s like getting a call from one of your friends because we?ve




built a relationship. We really don?t do any cold calling.?


Volpe estimated that a lead generated using inbound marketing cost five to seven times less




a lead generated by outbound marketing. Businesses had increased the portion of their




budgets dedicated to inbound marketing, particularly in business-to-business (B2B)


industries, where


This document is authorized for use only by Audra Pinero ( Copying or posting is an infringement of copyright. Please contact


or 800-988-0886 for additional copies. 509-049 HubSpot: Inbound Marketing and Web 2.0 4 37% of the marketing budget was spent on inbound marketing and 30% was spent on




marketing. Given its lower costs and increased efficiencies, inbound marketing allowed small


businesses to compete with larger firms in a way that had never been possible in the preInternet world dominated by mass media. Small businesses had realized that inbound marketing


helped level


the playing field and were more aggressively allocating their budgets to inbound marketing


techniques. The HubSpot Product Embodying the philosophy of Web 2.0, the HubSpot Web-based software product was a




inbound marketing system, designed to help businesses attract prospects, qualify their


potential, and


convert them into paying customers. The goal was to enable a firm to generate more


qualified leads,


to generate those leads more efficiently, and to convert them into sales. HubSpot?s userfriendly


product allowed even those who were not familiar with Web 2.0 to build and manage a




inbound marketing program. The software included templates to design content for


websites, blogs,


and social networking sites; tools to help customers optimize their exposure on the Internet;


tools to


help customers solicit and engage the right customers; and tools to analyze their results. Content Design


HubSpot offered its customers a content management system (CMS), software that made




and editing online content easy. Further, HubSpot?s CMS allowed small businesses to add


interactivity, the hallmark of Web 2.0, to their old ?brochureware? websites. Predesigned




helped customers create their corporate websites, providing guidelines for creating Web


pages, blogs,


online forms, and landing pages. The templates were designed to be turnkey so that




without HTML programming knowledge could easily publish content online and have that




be search-engine-friendly. HubSpot?s Keyword Grader scanned the Internet and returned an




of the keywords relevant to the company?s business that were driving online search results.




these keywords in their content, companies could improve their organic search results,


making it


more likely that potential customers would find their content. Steve Douglas, president and




director for The Logo Factory, explained how search engine optimization (SEO) worked for




I had been doing SEO all wrong when I came to HubSpot, trying to optimize my site for the


wrong keywords. With HubSpot, I?m now able to see the words people are actually using to


find my products and services. I?m able to see which words have the greatest search volume




search engines, helping me choose the right words to optimize my site. HubSpot has helped


me be a lot smarter about how I optimize my site and track my progress. (HubSpot,




Quotes, 2009) Exposure Optimization


The HubSpot product contained a series of tools designed to help customers make their


published content more visible on the Internet. These included SEO tools that graded the firm?s


content based


on its likelihood to be included early in the search results that were returned when a




customer searched through Google, Yahoo, or other search engines. The SEO tools graded




company?s website, its key landing pages, and its blogs, and made suggestions for


improving them to


increase exposure. HubSpot?s Link Grader analyzed the links a firm had on its website to see




ones were generating the most inbound traffic. The Link Grader also analyzed links to




websites to see which ones were driving customers to them instead of to the firm. HubSpot




Noel Huelsenbeck, president of the telecom expense management software firm Vocio,




This document is authorized for use only by Audra Pinero ( Copying or posting is an infringement of copyright. Please contact


or 800-988-0886 for additional copies. HubSpot: Inbound Marketing and Web 2.0 509-049 5 I love the HubSpot software. With just a little page optimization I?ve already gotten great


results and my traffic and keyword rankings continue to improve steadily. I?m about to sign a


deal from a company that typed in one of our top keywords for which we are now the #1


organic result, thanks to HubSpot! That one deal will pay for all the money spent with


HubSpot three times over. On top of that, the support is incredible. The HubSpot team had


dedicated their time, even at off hours, to get my site up and optimized. The application is


great, but it?s the people that make this company stellar. (HubSpot, Customer Quotes, 2009) Lead Tracking and Intelligence The HubSpot software had marketing intelligence analytics for tracking the interactions




had with the firm?s content. This enabled firms to analyze which of their inbound marketing


programs were working to generate qualified leads, by telling them where potential


customers were


coming from and how they were engaging with the company. Firms could generate an




profile for each customer by tracking the pages they viewed and the types of forms they




Firms could use this information to qualify prospective customers according to their


potential. For


example, HubSpot itself used the lead tracking software to construct its sales funnel (see


Exhibit 1).


Information about each customer allowed HubSpot to qualify some of its visitors as


?prospects,? then


?leads,? and then ?opportunities? based on the behaviors they exhibited while on the site.


Team Jodi, a real estate firm, had seen a significant increase in business, claimed owner Jodi




The traffic to my site increased by 97% in November, by an additional 62% in December, by


an additional 31% in January and we?re on track for another big increase in February. In real


estate, the absolute number of leads is way down. But what I?m looking at is the percentage




good leads. The percentage of good leads is actually going up right now and I attribute it to




of the hard work I am doing, 90% of which I learned from HubSpot. (HubSpot, Customer


Quotes, 2009) HubSpot used a software-as-a-service (SaaS) pricing strategy for its product. Rather than


paying a


large up-front fee, customers paid a smaller monthly fee (between $250 and $500), much


like a gym


membership. HubSpot?s low cost and ease of use for Web 2.0 novices were its competitive


advantages. Volpe explained the difference between HubSpot and one of its competitors,




Eloqua is really expensive and complicated. It is awesome for larger enterprises. Everyone


we talk to that uses Eloqua says, ?If you can get it to work, it?s super powerful, but you have




give up your firstborn child to pay for it and you need to hire a full-time employee to run it


because they have all these scripting languages and all this really, really difficult stuff.?


HubSpot?s customers were required to purchase a $500 onboarding package, which bought




four hours of HubSpot consulting. During this time, consultants helped customers through a




designed to kickstart their inbound marketing program: (1) setting up the software, (2) using


the SEO


features to get found, (3) converting prospects to leads to customers, (4) analyzing their


results, and


(5) institutionalizing the process so that it could be repeated. Once the original consulting


hours were


depleted, customers were on their own, unless they purchased additional consulting time at


a cost of


$500 for four hours. Customers were also given access to Success.HubSpot, which provided




marketing training and resources. Halligan described the HubSpot product as much more


than a


piece of software; it was a system of tools and training (see Exhibit 2):


HubSpot is a complete inbound marketing system that will help you get found by more


prospects and convert more of them into paying customers. We use the word ?system?


intentionally. HubSpot is more than software. We have a complete inbound marketing


This document is authorized for use only by Audra Pinero ( Copying or posting is an infringement of copyright. Please contact


or 800-988-0886 for additional copies. 509-049 HubSpot: Inbound Marketing and Web 2.0 6 methodology comprised of best practice guides, training materials, software tools, a


community and support. Plus, HubSpot is hosted on demand software, meaning that you


don?t need any IT staff to get started. We don?t just give you a new marketing tool. We teach


you to be an expert in how to use it.


HubSpot?s products had garnered acclaim that drove buzz for the company. In 2008,




received the W3 Silver Winner Award in branding and marketing and the MITX Impact Award




innovative business strategy. HubSpot?s Website Grader was an official honoree for the ?Best


Websites in IT Hardware/Software? category in the 12th Annual Webby Awards. In February




HubSpot was named in the top 10 of PromotionWorld?s ?Best SEO Companies? ranking. HubSpot?s Marketplace Halligan and Shah envisioned that HubSpot would become the market leader of the industry


space carved out by software companies and consulting firms focused on helping businesses


fill and


manage their customer funnel. The term ?customer funnel? metaphorically described the


critical processes firms undertook to attract prospective customers to their business; qualify those




to determine which ones had the highest probability of converting to paying customers; and,




close the sale. The customer funnel was divided into three main activity areas. Most of




competitors chose to play in only one of those areas, although some offered integrated


services that


spanned all three (see Exhibits 3 and 4). Creating Traffic


The goal in the top part of the customer funnel was to attract large numbers of prospective


customers. Firms used marketing programs to capture attention and interest to feed


prospects into


the funnel. Firms offered information, contests/sweepstakes, or free consulting on their


websites to


entice prospective customers. To receive the information or to participate in a contest,


prospects filled


out an online form that asked them for their contact information and other valuable


information, such


as budget available for the purchase and estimated purchase timing. HubSpot?s competitors


in this


area included consultants who built online advertising, websites, blogs, and a social media




for companies, as well as software companies with SEO products that helped companies




their likelihood of getting found by consumers using search engines. Analyzing and Qualifying Leads


The goal in the middle of the customer funnel was to assess the potential of different




customers brought in by the lead-generation programs. Selling a customer required an


investment of


human and financial resources, and firms wanted to ensure that they were targeting these




to prospects who were most likely to convert to customers. Many prospects brought in


through lead


generation had a low probability of becoming customers, and firms could save substantial


money if


they could identify those customers early and weed them out. The lead-qualification process




on finding customers with potential to pass along to the sales force. HubSpot?s competitors


in this


area included consultants and software companies with proprietary methods for rating and




prospects based on historical analysis of the company?s current customers and conversion


rates. Closing the Sale


The goal in the bottom of the customer funnel was to convert prospects into customers. One


player,, dominated this segment, providing easy-to-use customizable


software that


This document is authorized for use only by Audra Pinero ( Copying or posting is an infringement of copyright. Please contact


or 800-988-0886 for additional copies. HubSpot: Inbound Marketing and Web 2.0 509-049 7 helped firms create a database of their prospects and track their conversion progress in real


time. software had become the industry standard for managing and tracking


sales efforts.


Halligan and Shah hoped that HubSpot could dominate the lead-generation and analysis/


qualification stages of the customer funnel, just as dominated the stage


devoted to


closing the sale. They claimed, ?HubSpot could be to marketing what is to


sales.? Filling HubSpot?s Customer Funnel By 2009, HubSpot had 1,000 very diverse customers. Practicing what it preached, HubSpot




attracted these customers through inbound marketing. HubSpot used several different


tactics to drive


prospects into the funnel. First, the company had a robust website that attracted more than




unique visitors in 2008. The website featured white papers, webinars, podcasts, and a blog




provided information about Web 2.0 and inbound marketing strategies. HubSpot created and


managed an 8,000-member LinkedIn group called Pro-Marketers, dedicated to marketing


professionals who were interested in learning about Web 2.0 and inbound marketing.




came together every Friday to host thei...


Solution details:

This question was answered on: Jan 30, 2021

PRICE: $15 (25.37 KB)

Buy this answer for only: $15

This attachment is locked

We have a ready expert answer for this paper which you can use for in-depth understanding, research editing or paraphrasing. You can buy it or order for a fresh, original and plagiarism-free solution (Deadline assured. Flexible pricing. TurnItIn Report provided)

Pay using PayPal (No PayPal account Required) or your credit card . All your purchases are securely protected by .

About this Question






Jan 30, 2021





We have top-notch tutors who can do your essay/homework for you at a reasonable cost and then you can simply use that essay as a template to build your own arguments.

You can also use these solutions:

  • As a reference for in-depth understanding of the subject.
  • As a source of ideas / reasoning for your own research (if properly referenced)
  • For editing and paraphrasing (check your institution's definition of plagiarism and recommended paraphrase).
This we believe is a better way of understanding a problem and makes use of the efficiency of time of the student.


Order New Solution. Quick Turnaround

Click on the button below in order to Order for a New, Original and High-Quality Essay Solutions. New orders are original solutions and precise to your writing instruction requirements. Place a New Order using the button below.


Order Now