David C. Baker, a savvy expert in horizontal positioning strategies, shares his insights on successfully marketing a single service across various industries. He discusses the nuances of horizontal versus vertical positioning, emphasizing the importance of clear market definitions. Baker provides examples of how businesses can identify and target challenger brands effectively. Additionally, he highlights the role of research in enhancing market strategies, particularly for smaller firms, illustrating how authentic connection can drive success.
Horizontal positioning allows firms to serve multiple verticals with specialized services, diversifying their client base while ensuring focus.
Research is essential for enhancing horizontal positioning, helping companies understand market needs and tailor strategies effectively for targeted outreach.
Deep dives
Understanding Horizontal Positioning
Horizontal positioning refers to offering specialized services across multiple verticals rather than focusing on a single industry. It contrasts vertical positioning, where a firm tailors its services to a narrow field defined by specific industry codes. For example, a company that creates mobile apps for various types of workers, such as plumbers or field surveyors, exemplifies horizontal positioning as it serves diverse sectors with a common need. This approach allows firms to diversify their client base while maintaining a focus on the service they provide.
The Challenge of Addressability
One major challenge with horizontal positioning is ensuring that the target market is both addressable and timely for service delivery. Many broadly positioned firms struggle because their service offerings, while applicable to numerous sectors, often lack clear identification of decision-makers and the right timing for outreach. For instance, a horizontal positioning in rebranding can be problematic, as it may be challenging to pinpoint when businesses will seek branding services, leading to missed opportunities. Addressability requires firms to define specific criteria or situations that trigger the need for their services, thus enhancing their ability to reach potential clients effectively.
Enhancing Weak Positioning with Research
Research can play a pivotal role in solidifying a weak horizontal positioning by providing valuable insights into the target market’s needs and preferences. A company that initially positioned itself broadly to serve middle America found success only after conducting research to understand the specific values that influenced consumer choices in that demographic. With this information, the firm could tailor its messaging and strategies, offering clients in-depth guidance on reaching their target audience effectively. Thus, leveraging research transforms a vague positioning into a strong, data-driven strategy that can resonate with businesses seeking to engage those markets.