MKTG 654 - Case Analysis 1 PDF

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Tyana Velez Denise Schoenbachler MKTG 654 19 January 2019 The Higher the Risk, The Higher the Reward While both Jane and Josh make excellent points as to which type of customer they should focus their energy on, it is important to only focus on one type of customer at first and really make sure the company has exceeded all expectations go above and beyond that customer’s needs and wants. The last thing SparkPlace company wants to do is try to please all type of customers and crash and burn at the end because they are only providing average customer service. Therefore, it would be in SparkPlace’s best interest to focus on the Mary’s for this project, at least for now. Focusing on the Mary’s would provide the company with a larger market size, larger average profits in lifetime sales, and provide a long-term customer. Throughout the Case Analysis it was discussed several times how although there are more of Sam’s to provide the service for, since they don’t require many upgrades or a lot of maintenance, they would not generate as much profit as the Mary’s would. This is important because when developing a product or service, it is essential to target the type of customers who see the value in what is being offered. It seems like the Sam’s in the industry would be difficult to sell the service to, while the Mary’s already know and understand this service would benefit their company. This would cut down on time spent trying to sell to potential customers, and therefore, spend more time actually generating more incoming while servicing existing clients. Additionally, the Mary’s would provide a larger average profit in lifetime sales as opposed to the Sam’s. Like briefly discussed above, the Mary’s are more likely than the Sam’s to opt for any upgrades in service as they are more knowledgeable in what they need and are expecting from the company. If trying to pursue the Sam’s of the world, it would already be difficult enough to get them to sign up as they have an old-school way of thinking about business

and marketing, and do not really believe they need the help from SparkPlace to continue to grow their company. Therefore, it is important to understand that the Mary’s do understand the type of marketing world we are living in now and are willing to get with the times when developing their marketing strategy. The Sam’s of the world will remain skeptical even after agreeing to partner with SparkPlace and will most likely not agree to continue partnership after the term is over with. The Mary’s, however, see the value and are more like to continue business with SparkPlace long-term without much hesitation. For the reasons listed above, it is a no-brainer that SparkPlace should pursue the Mary’s of the world instead of the Sam’s. The Mary’s of the world would provide SparkPlace with a larger market size, a larger profit in lifetime, and larger customer life cycle. Some might argue that SparkPlace could simply tackle both types of customers and get the best of both worlds, but that is simply not recommended unless they are a well-established company that has room to gamble. When engaging in the type of market that is servicing both the Sam’s and the Mary’s, they may not be able to completely deliver to both segments as expected. Therefore, the company would experience a great loss from one of the targets when they don’t feel like they’ve received the service they were promised, and they paid for. It is crucial to be able to master one kind of market segment before moving on to the next. Like the old saying goes, “you cannot have your cake and eat it too.” This is exactly what SparkPlace would be trying to do if they went after both the Sam’s and Mary’s, and that simply would not end well. Without a doubt, SparkPlace should focus their energy on the Mary’s of the world if they want to flourish as a company.

Bibliography Avery, J., & Steenburgh, T. (2012). Target the Right Market. Harvard Business Review....