There are thousands of marketing terms out there, making it impossible to learn them all. But one that should stand out to your business, especially if you operate in a niche category or serve a specific group of customers, is vertical marketing.
What Is Vertical Marketing?
Vertical marketing refers to a set of strategies intended to reach your target audience directly. Your target audience will fit a specific demographic: age, education, and buying behavior. Instead of trying to get a broad array of clients from all walks of life, you’re aiming to be the go-to person in your specific niche.
Horizontal marketing is the direct opposite of vertical marketing. Horizontal marketers welcome any buyer to their storefront, and their advertising strategies will reflect that. For instance, Amazon is a company that uses horizontal marketing. They have something for everyone on their platform and employ multiple strategies to attract them.
Examples of Vertical Marketing
A good example of vertical marketing in practice is a luxury car company like BMW. BMW caters to clients who can afford expensive vehicles and want a little extravagance while on their daily work commutes or when running errands.
BMW is known for producing well-crafted vehicles that favor performance. That performance and the extras that come with the car — like leather interiors and an appealing exterior — attract a particular type of buyer.
BMW ads tend to focus on the car’s capabilities, like high speed and good handling. They’ll appear where their buyers are likely to be. You won’t see BMW ads at Wal-Mart or the discount circular you receive in the mail every week.
Best Practices for Vertical Marketing
A vertical marketing strategy begins with a lot of research. You’ll want to know exactly who your target audience is. That includes all of the following:
- Whether they’re consumers of other businesses
- Average income level
- Pain points
- Specific demographics, like age, ethnicity, and location
Once you understand your audience, you’re better positioned to serve their needs and tailor your marketing strategies to meet them.
Your next step is to identify where you will likely find your customers, whether online or in person. For instance, a business serving only other companies might find clients through relevant conferences or networking events. They’ll want to build a presence at those places, whether through public speaking or by demonstrating their products.
Next, you’ll want to develop content that speaks directly to your audience. Your content should identify their pain points and how your products or services can address them. Ideally, your content will move them directly through the stages of the buyer’s journey, from simple awareness to the final sale.
A simplified journey reduces any friction your audience experiences during the purchasing process. There’s no need to step away from the purchase if your buyers receive the information they need from you.
Vertical Marketing Is Ideal for Small Businesses
Small and mid-sized businesses are the most likely to benefit from vertical marketing since they usually serve a smaller audience.
If you need help with implementing a vertical marketing strategy for your company, contact Net Profit Marketing. We’ll help you design an effective marketing plan that appeals to your target customer base.
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