SparkPlace has new software to sell





The Problem

SparkPlace has new software to sell. The software measures and manages the effectiveness of permission-based marketing strategies for social media. However, the company has two segments of the market and has to choose which one to concentrate on. Each segment is appealing and advantageous. Nonetheless, developing a product for each market segment and marketing products simultaneously to both segments has posed a big challenge for the company. The company is wondering whether it can be “all things to all people”. And in case it cannot serve both markets simultaneously, the company is not sure on which segment to concentrate on. Lastly, the company is wondering whether there is a single strategy that can capture the needs of both segment markets without draining its resources (Steenburgh & Avery, 119).

Analysis of the Problem

The Marys and the Sams provide SparkPlace with various risks and advantages related to ease of closing deals, account volume, the initial investment, outside competition, lifetime account profit, and longevity. The company can make more sales if it concentrates on Sams than on Marys. Furthermore, Sams are on the rise because most people are starting their own business. In addition to this, Sams are managed and run by owners making it easy to make deals with them unlike Marys which are managed by managers hence making them less accessible. Lastly, Sams incur a sales cost of $1,000 while Marys is $5,000. On the other hand, Sams bring in profits of around $10,000 while Marys brings in $50,000 (Steenburgh & Avery, 120).


SparkPlace can create two products that can serve both segments. The company should introduce a marketing plan that serves both markets. If the company does not serve both markets, it risks creating a self-inflicted boundary for itself which in turn could affect it negatively in case of market dynamics change.


Steenburgh, T. and Avery, J.  HYPERLINK “” t “_blank” “Target the Right Market.” Harvard Business Review 90, no. 10 (2012): 119–121.

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