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A great example of vertical marketing

Segway, the manufacturers and marketers of "personal transporters" have just introduced their  Segway Golf Transporter product, a product that focuses on the specific needs of golfers. In pursuing this marketing strategy, the company provides a classic example of a horizontal marketer that turns its attention to specific vertical markets.

Since January 2002, when the company first produced its pre-production models, it marketed the product to society as a whole. However, the challenges with marketing to a broad class of customers that cross over demographic, geographic and psychographic variables, are many. You risk:

  • Diluting your message
  • Diluting your advantages and
  • Diluting your marketing dollars.

Pursuing vertical markets is a logical choice for a company like this. In addition to the golf transporter, the company is also now marketing to police departments. Companies are now beginning to understand that when you vertically market to a population segment you improve the focus of your efforts and messaging.

For example, I have seen the Segway trasporters for a while now, and always wondered why I would need one. However, because I'm an avid golfer, now that I've seen the golf transporter, I've taken a much more avid interest in it. It appeals to me more.

Watch how Segway moves into other vertical markets in the future. I'm convinced they will see the many benefits to vertical marketing and move their entire marketing effort in that direction.

For more information on horizontal vs. vertical marketing, read my article called Vertical Marketing v. Horizontal Markeitng; Which is Right for You?

March 2, 2006 in Marketing Plans | Permalink

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