Marketing Management Case Study

Marketing Management Case Study

In the case study, the company uses demography as their market segmentation strategy. In demographic segmentation, customers are modelled into groups by particular population markers such as occupation, sex, age, socio-economic class, ethnicity, and income (Tow, 2019). Specifically, the company has narrowed down to the income of their two markets. Andrew, an employee at SparkPlace, coined the phrases, small Sams and Medium Marys, as a way of identifying their target markets. The small Sams are the small businesses run by their owners and have fewer than twenty employees. On the contrary, the medium Marys are headed by senior managers with a significant number of employees between twenty and one hundred. Additionally, the Sams is an easier group to bring on board with each business having a sales cost of less than $1000. Contrarily, acquiring any of the Marys would cost SparkPlace about $5000. However, the Marys are more valuable since they stayed longer and could pay higher monthly rates. Similarly, data suggested that on average, each Mary could generate $50K, unlike Sam, that could make $10K. Evidently, the provided statistics showed that each market was segmented on their potential income, a key component of demographic segmentation.

A sales strategy for the company

It is imperative for every sales team to make strategies as they are critical for the success of the business. A sales strategy can deliver critical results because it will clear the priorities that everybody understands. Besides, the strategy can ensure clear outcomes, guidelines, and goals are provided (Heiman, 2017). For an effective sales strategy, the sales team must have a clear and bigger picture.

For SparkPlace, they must assess where they’ve been and where they are currently. This has probably been achieved. With credible data, it is self-revealing that the company is dominant in two markets. It will also be necessary for the team to know how many purchases of their software were made, to whom was it sold, and clients with short sales cycles.

Creating an ideal customer profile

For many organizations, eighty percent of their revenues come from twenty percent of their clients(Heiman, 2017). The company has made steps in identifying the companies and naming them as small Sams and Medium Marys. An ideal profile will provide guidelines for sales representatives to help them understand those who can convert easily and ensure more success for the business.

Creating a SWOT analysis

SparkPlace should analyze their strengths, weaknesses, opportunities, and threats to understand their software and competitors better.

Setting a clear market strategy

It is essential for SparkPlace to ponder on a market strategy to see how they’ll grow the existing client base, how to leverage existing accounts, how to increase revenues from Small Sam and Medium Mary. Additionaly, the company can determine the features to add on its software to serve the needs of every client.

Creating revenue goals

Sparkplace should create clear revenue goals after being fully equipped with revenue targets and the market strategy. The sales team should give projections on revenue targets and work on the plan.

Developing and communicating precise positioning.

This stage is achieved after having a clear market strategy. With a differentiated market segment, SparkPlace should determine opportunities inside existing territories and markets, the size of their accounts, and various opportunities. In addition, the company must determine how to identify customers, how to make customers aware of the product, and how to identify new markets. A clear action plan should back all these.