What Are the Pros and Cons of a Vertical Marketing System?

Vertical marketing is a marketing method that subdivides the market and then subdivides the cultivated land to find a relatively unique market space for products and brands. The theoretical basis of vertical marketing is positioning. Market segmentation, target locking, and positioning, which can generate competitive advantages and thus translate into business opportunities and new products, have been mastered by domestic marketers. Almost every marketer will talk about positioning with his mouth open and closed. Positioning becomes a habitual action for marketers just like unzipping the toilet. In fact, market segmentation and positioning strategies have indeed found a living space for one product after another.

Vertical marketing

Right!

Vertical marketing is a marketing method that subdivides the market and then subdivides the cultivated land to find a relatively unique market space for products and brands. The theoretical basis of vertical marketing is positioning. Market segmentation, target locking, and positioning, which can generate competitive advantages and thus translate into business opportunities and new products, have been mastered by domestic marketers. Almost every marketer will talk about positioning with his mouth open and closed. Positioning becomes a habitual action for marketers just like unzipping the toilet. In fact, market segmentation and positioning strategies have indeed found a living space for one product after another.

Vertical marketing requires companies to first define the market and use market definitions to create competitive advantage. From the perspective of market performance, vertical marketing provides ideas for expanding specific markets, promotes potential customers in specific markets into actual customers, helps products penetrate to the maximum extent in specific markets, and enables companies to find new positions in specific markets. However, in mature markets and in the long run, the innovations and new sales generated by vertical marketing are not high, and the phenomenon of similar killing is serious. In contrast, innovations from horizontal marketing can create new categories or subcategories and produce one or more effects.

The success rate of vertical marketing innovation is high, but in mature market segments, its new sales are very low. Generally, this innovation has little effect. With the shortening of product life cycle, companies have to carry out vertical marketing innovation more frequently. In general, vertical marketing innovations can be carried out in a simpler, economical, and faster way.

Chinese name

Vertical marketing

Foreign name

Vertical marketing

Antonym

Horizontal marketing

Category

Marketing model

Vertical marketing and horizontal marketing are two completely different marketing models. It can be seen that the biggest difference is between horizontal marketing for creation and vertical marketing for selection:

Vertical marketing innovation has a high success rate, but in mature market segments, its new sales are low. Usually, such innovations are not very effective. On the contrary, the success rate of horizontal marketing innovation may be much smaller, but once it is successful, the sales it obtains will be very considerable.

The role of vertical marketing can be summarized as follows:

1. Provide ideas for expanding specific markets;

2. Promote potential customers in specific markets into real customers;

3. Enable the product to appear in all possible scenarios of the existing market;

4. Contribute to the maximum penetration of products in specific markets;

5. Make enterprises find new positions in specific markets.

The steps of vertical marketing are: First, "marketing is to discover and meet unmet needs and satisfy them", and demand analysis is the starting point. Through market research, identify groups that may become potential markets. Second, after delineating this potential market, use market segmentation, target locking, positioning and other methods to form a product or service competition strategy. Finally, use 4P and other marketing combinations to implement competition Strategy to bring a product or service to a tangible market.

The impact of vertical marketing on sales is:

1. In the early stages of the product life cycle, sales come from existing buyers and potential customers attracted by new products;

2. In the later stages of the product life cycle, new sales are reduced, and this part of sales comes from competing for market share of similar competitive products.