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Article

Title: Vertical Value

Author: Maddox, Kate Article Type: Product Analysis
Source: BtoB, v93 n7 p4(2) Publication Date: Jun 23, 2008
  ISSN: 1530-2369
URL of Publication: http://www.netb2b.com

B-to-b marketers are using the current economic downturn to revamp their approach to vertical marketing. Organizational, strategic and budget efficiency improvements are being implemented. Strategic improvements include utilizing new media and cost-effective opportunities such as shared resources, while focusing on providing smaller vertical segments with more personalized and relevant communications. Motorolas corporate VP of global marketing and communications said the company restructured its b-to-b marketing segment two years ago, and now uses a customer-focused approach instead of a product-focused strategy. Motorolas campaigns and marketing programs are provided through one centralized team, then rolled out up and down a vertical marketplace that includes manufacturing, transportation, logistics, health care, utilities and retail. The company believes the utilities segment is showing growth. Siemens USAs chief marketing officer said the company reorganized a year ago into three core segments--health care, industry and energy/environment--and created a centralized marketing organization to provide a single point of customer contact. Building products manufacturer USG Corp.s marketing director said the companys demand chain is very complicated and the marketing budget must be evenly distributed. There are architects, builders and contractors, and a supply chain of specialty dealers, professional dealers and retail stores. The company makes about 4,000 products. Its latest ad campaign will target the education, health care and retail vertical markets. Some marketing dollars will be moved from the general media, such as print and event sponsorships, and into more targeted communications such as email, search engine optimization and viral media.

Companies:
Motorola Inc Siemens AG

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Management Strategies

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