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What is Vertical Marketing? - [Hidden Gem of Business]

Updated: Jul 27, 2023

What is Vertical Marketing - [what is a vertical in marketing] - [define vertical marketing]
Photo by Alexander Suhorucov [Pexels]

Define Vertical Marketing:

Vertical marketing, also known as niche marketing or industry-specific marketing, is a strategic approach to marketing in which a company focuses its efforts on a specific industry or market segment.

Unlike horizontal marketing, which targets a wide range of industries or markets, vertical marketing hones in on a particular niche.

Some of the best examples are:

  • Healthcare Marketing [e.g. electronic health record solutions],

  • Real Estate Marketing [e.g. modular kitchen cabinets],

  • Fashion Marketing [e.g. luxury wedding lehenga],

  • Hospitality Marketing [e.g. loyalty programs and clubs],

  • Education Marketing [e.g. e-learning interactive portals], and alike.

“In 2023, a large part of strong brand identities will rest on in-depth, real-time knowledge of target audiences in niche, online communities” - 2023 Marketing Guide Report by Meltwater

Vertical Marketing:

Let's go deeper to provide you with more details:

The concept of vertical marketing is rooted in the idea that by specializing and catering to the unique needs and preferences of a specific industry, businesses can gain a competitive advantage and better serve their target audience.

This approach allows companies to develop a deep understanding of their customer's pain points, challenges, and desires, enabling them to tailor their products or services to meet those specific needs.

One of the key benefits of vertical marketing is the ability to build strong relationships with customers.

By focusing on a specific industry, companies can position themselves as experts and trusted advisors within that space.

This expertise allows them to speak the language of their target audience and provide relevant solutions that address their industry-specific problems.

“People trust people more than brands, and partnering with the right influencer in your specific niche or vertical can lend your brand some powerful validation and grow awareness with high-value audiences” - 2023 State of B2B Digital Marketing Report by Wpromote

Moreover, it also provides an opportunity for businesses to differentiate themselves from competitors.

By specializing in a niche market, companies can develop unique value propositions [UVP] that set them apart from more generalist competitors.

This differentiation can lead to increased brand loyalty and customer retention.

In addition to these, vertical marketing can also lead to improved marketing efficiency.

By focusing resources on a specific industry, companies can streamline their marketing efforts and allocate their budgets more effectively.

This targeted approach allows for more precise messaging and more efficient use of advertising platforms, resulting in higher conversion rates and a better return on investment [ROI].

However, it's important to note that, it may not be suitable for every business.

It requires a thorough understanding of the target industry and its dynamics, as well as the ability to adapt to its unique challenges and trends.

Companies considering vertical marketing should carefully evaluate whether they have the necessary resources and expertise to effectively serve their chosen niche.

“Explore distribution opportunities for both niche and broad targeting. Leverage niche to target people in-market and broad to reach your total addressable universe, which may consist of future buyers, influencers, and brand advocates” - studioID's Definitive Guide to Brand-to-Demand Marketing Report

In conclusion, vertical marketing is a strategic approach that involves targeting a specific industry or market segment.

By focusing on a niche market, companies can develop a deep understanding of their customer's needs, build strong relationships, differentiate themselves from competitors, and improve marketing efficiency.

However, it's essential for businesses to carefully assess whether vertical marketing aligns with their capabilities and objectives before pursuing this strategy.


What is a vertical in marketing?:

A vertical in marketing refers to a specific industry or market segment that a company focuses on when developing and implementing marketing strategies.

It's like slicing the marketing landscape into different slices, with each slice representing a particular industry or market.

Here's related information that you may also find helpful – Gain Deeper Understanding of your Customers and your Market Segment [8 Good Ways].

P.S: Ready to [unlock the power of digital marketing] and drive [your] business forward? – Access my forum today

P.S.S: Please don’t forget to forward this blog post to your network so they can get the best tips, practices, strategies, education, resources, & tools to help their businesses grow [sharing is caring].

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