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Vertical Industry Success

02/18/2010

Marketers can increase the perceived value of a product or service in the eyes of their prospects by better understanding their industry-specific needs, as determined by the varied manufacturing processes, market conditions and business climate that are particular to each vertical industry, and by explaining to the prospects how the product or service they offer resolves the prospects’ specific challenges. Again the name of the game is listening — prospects have more confidence and trust in suppliers that have invested more effort to understand their vertical market and its needs.

Indeed, by focusing a marketing initiative on a given vertical, establishing a reputation as an expert in that area, developing relationships with well-known, strategic influencers in the vertical and by offering added value in the area of business intelligence, market research, industry-specific stats and figures, etc., you significantly increase the chances of any company that identifies themselves as a part of that vertical to at least consider your offer, if for no other reason than their assumption that their competitors in the vertical might be doing the same. Moreover, by incorporating the publication of every new customer win in the vertical as a key element of your marketing initiative, you measurably strengthen your attractiveness and credibility to all the prospects in the vertical. After selling to enough influential innovators in the sector and upon achieving a significant penetration in the market segment, you will from that point on much more easily win the followers as “after business”.

Another side benefit of a vertical industry marketing strategy is flexibility. Adapting the schedule of your marketing programs in accordance with the CAGR forecasts of each vertical will reduce risks and improve your closure rates and profit margins… As one analyst indicated in a post on Business Tech on c-Net News entitled “Recession demands vertical industry approach”:

Industry leaders like Accenture, Hewlett-Packard, IBM, and Oracle that have long embraced a vertical industry sales and marketing strategy are best positioned to anticipate market opportunities and move resources around to capitalize on this. The bulk of vendors who take a horizontal approach must learn how to customize solutions and adapt sales/marketing toward vertical industries. In my mind, industry marketing is no longer a “nice to have.” It is a “gotta have.”

Now the big question is how to optimally use social media to develop the ultimate “Vertical Industry Marketing 2.0″ strategy – a combination of participation in vertical industry-based on-line communities, efficient Twittering at and after industry events, leveraging industry-specific groups on Linked In… what other social media tactics have you used for Vertical Industry Marketing Success?

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