More recently, micro-vertical market marketing has gained interest as competition grows in software, consulting, capital equipment, and truly any “considered purchase” market (considered purchase is a typically complex, high dollar value scenario vs. impulse purchase, which is simple and low dollar value).

Our micro-vertical marketing guide will start with a definition, followed by details on industry classifications. Next, objectives and some tips for identifying viable micro-verticals. Of course, effective marketing is the key to success, so best practices are delineated. Finally, a micro-vertical marketing case study will share a real life example, and relevant resources will provide additional insight.

Continue reading or consider checking out our vertical marketing services.

Micro-Vertical Marketing DEFINED

Micro-vertical marketing is going deeper into broad market segments, to identify sub-segments that have specialized and common requirements, applications, decision-makers, and more. Often broad market segments are described as “horizontal” market segments that are made up of vertical and now, micro-vertical segments. In the past, marketers called vertical or micro-vertical marketing, niche marketing. Finally, the identification (and analysis) of market segments is called market segmentation.

Historically, market segments were referenced by Standard Industrial Classifications (SIC codes), developed and used by multiple branches of the U.S. government. In 1997, the North American Industry Classification System (NAICS) codes replaced “SICs”, with corresponding codes. Today, both codes are still used, and can identify both horizontal, vertical, and micro-vertical market segments. Often, directories and mail/email list providers use such codes for classifying records. Examples include D&B, Hoovers, InfoUSA, and more. Finally, outside of North America, there is a corresponding International Standard Industrial Classification (ISIC) system.

Following is an example of market classifications and segmentations that will aid understanding (see appendix for additional market classifications and codes).

Micro-Vertical Marketing OBJECTIVES

The objective of micro-vertical marketing is to demonstrate expertise that is relevant to the specialized requirements of a micro-vertical customer.  Educational content relevant to these requirements is key. If executed effectively, the brand (or person) will be perceived as a subject matter expert (SME), and ideally, the thought leader for that micro-vertical. Once achieved, the brand can rise to the top of the consideration set, reducing or eliminating competitors, speeding up the sales cycle, and ultimately driving sales.

How To IDENTIFY a Micro-Vertical

To ensure success, brands or marketers should target micro-vertical markets that leverage past experience, and ideally, proprietary skills or intellectual property (IP), that is difficult to replicate. Such experience, skills or IP lend themselves to a Case Study, which is critical. Of course this is not always possible, so brands may be able to leverage vendor experience, IP or case studies as an option.

Other keys to micro-vertical marketing success are market size, market infrastructure, and decision-making process.

Regarding market size, it is important to identify early whether the micro-vertical has enough prospective customers, and is not too small to be worthwhile of investment in time and resources. Directories like D&B or Hoovers can quickly identify “counts”, or number of companies for a given NAICS code. A rule-of-thumb for market size minimum depends on your brand sales objectives, but 100-1,000 establishments can be a preliminary benchmark.

Once a micro-vertical passes the “size test”, research industry infrastructure. Specifically, identify if any associations, media/publications, trade shows, lists, and related assets are available. Such industry “assets” can often support the next topic, marketing.

Understanding the decision-making process in a micro-vertical is certainly helpful. Likewise, identifying who decision makers are by title(s) is important. Such insights can come from interviewing customers or industry experts, but may differ by size of company.

Micro-Vertical MARKETING Best Practices

So what type of marketing tactics are effective for micro-vertical marketing? To answer, lets go back to that “considered purchase” reference. For expensive and complex purchases, prospective customers are very likely going to do their “homework”, which today is most often a “Google” search. Marketers must anticipate this scenario and have content along with search marketing in place. 

No question, a search-optimized website is foundational to effective micro-vertical marketing. Search engine optimization (SEO) is a too big of a topic for now. For more information, link to the MMP SEO Guide.

Educational content relevant to the micro-vertical will be critical to success. Ideally content positions your brand as a subject matter expert (SME), or thought leader. Website content should include landing and registration pages, blogs, case studies, white papers, reports, videos, and more. Interlinking of such assets, and calls-to-action (CTAs) are important considerations.

Certainly, such website content supports organic or free website traffic for given keywords. Other marketing tactics that drive organic traffic include email, social media, and link-building.

Email is absolutely critical to micro-vertical marketing success. Why? Because email lists identify prospects in a micro-vertical. Of course, email should target decision makers, and drive traffic to relevant website content. Email lists should go deep into a prospective business (e.g. multiple contacts), and be verified for deliverability. Emails should be optimized for open and click-thru rates (CTRs). For more info on email, link to the MMP Email Guide.

Social media is another significant source of organic website traffic. In addition, social media often ranks high on search engine results pages (SERPs). For example, YouTube videos rank high for specific keywords. LinkedIn is an excellent social network for business decision makers. Facebook Business Pages, and Twitter are key networks that should be used. Finally, Facebook advertising can be effective for many micro-verticals.

Relevant and high authority links to your website also support organic traffic. Article writing and placement with in relevant online media with “Do-Follow” links is an example of link-building. Branded thought leadership is another link building and organic traffic-building strategy. For more info, link to the MMP Thought Leadership Guide.

Besides organic or free website traffic, Paid Search delivers (paid) website traffic that is especially effective when educational content or calls-to-action (CTAs) are employed. Paid Search includes Pay-Per-Click (PPC) advertising (e.g. Google AdWords), Remarketing, and Display advertising (e.g. banners). We recommend Paid Search for new websites that cannot attain search authority quickly, or for categories with a large number of competitors.

No question, all aspects of digital marketing are key to micro-vertical marketing success. That said, the are also some traditional marketing tactics can support effective micro-vertical marketing. Intuitively, trade shows, networking, and other live events are often vertical market focused. Finally, publicity and advertising are tactics that can build awareness in vertically-focused media.CASE STUDY – Micro-Vertical Marketing

A leading business software reseller based in the northeast successfully implements micro-vertical marketing in multiple niches. This case study will focus on one of their most successful micro-verticals to demonstrate best practices: K-12 Private Schools.

For this reseller, the micro-vertical started with a single, successful implementation. Not only was experience in place, but the reseller developed proprietary integrations and systems that address requirements specific to private schools such as tuition payments, fundraising, along with multiple accounting automations.

Regarding market size, K-12 Private Schools number 34,576 in the United States according to the National Center for Educational Statistics. What’s more, there is an association for the decision makers in private schools, the National Business Officers Association (NBOA). The Business Officer title is unique to private schools and includes CFOs, Presidents, Operations, and more. Association members are also non-executive staff. Finally, NBOA has an annual conference and publications which are marketing and sales opportunities.

The reseller implemented a complete marketing mix to communicate to private school targets including website landing pages and blogs, case studies and white papers, email lists and campaigns, and trade show participation.

The results reinforce the reason micro-vertical marketing is gaining popularity. Leveraging a single client along with proprietary technology for the micro-vertical, the reseller achieved market leadership, beating competitors, and closing deals year in and out with multiple private schools. Over time, additional customizations and integrations further reinforced technology leadership in the private school micro-vertical.

Is Micro-Vertical Marketing a SILVER BULLET?

Micro-vertical marketing can be effective in many considered purchase categories (software, technology, financial and professional services). Why? Because the brand or marketer can demonstrate specialized expertise in specific micro-verticals by communicating and marketing to a very targeted prospect base, and be perceived as a subject matter expert (SME), thought leader, or preferred solution provider.

Micro-vertical marketing requires skill to identify viable markets, and execute the proper marketing mix. The objective of micro-vertical marketing is that if implemented correctly, the (micro-vertical) marketer can rise to the top of the “consideration set”, reducing or even eliminating competition, speeding up the sales cycle, and ultimately driving sales.

Interested in implementing Micro-Vertical Marketing?  Get the full Micro-Vertical Marketing Guide or request a marketing assessment to learn more.

Relevant Micro-Vertical Marketing Resources 

Micro-verticals are nipping at the heels of enterprise application vendors (Infoworld)

Infor Aligns Partners and Micro-Verticals to Facilitate Last Mile Configuration (Infor)

Which commercial models make mobile-enterprise SaaS start-ups successful? (McKinsey)

Top Account Based Marketing Tools and Tactics (MMP)
Micro-Vertical Marketing Appendix

Some examples of top Markets, corresponding NAICS Codes, and Market Segmentation.

The post Micro-Vertical Marketing Guide appeared first on Modern Marketing Partners.

This blog will identify four (4) reasons that effective channel partner marketing is more important than ever, followed by  Top 10 Marketing Best Practices for Channel Partners, a channel partner marketing infographic, and links to additional resources.

4 Reasons Channel Partners Should Reconsider Marketing 

First, sourcing or selection IT related products or services has shifted. Studies show that up to 90% of technology products and professional services sourcing begin with or use a search engine. Second, competition has intensified. Now channel partners face greater competition from local, regional, national, on-line and non-traditional competitors. Third, marketing has changed dramatically. The modern marketing mix focuses on search authority, thought leadership and lead generation, and importantly, is proving dramatic and measurable results. Marketing activities are often categorized as Inbound and Outbound. Fourth, historically channel partners tend to spend less time, effort, resources and investment in marketing than other industries. But for the factors above, now must make marketing a higher priority, or risk failure.

So what types of marketing should channel partners undertake? What marketing is most effective? Take a look at our Top 10 Marketing Best Practices for Channel Partners at-a-glance, followed by marketing best practices detail and a Channel Partner Marketing Process info–graphic!

Top 10 Marketing Best Practices For Channel Partners

1. Analysis and Planning
2. Leverage Vendor Support
3. Build Awareness
4. Direct Marketing  
5. Referral Program 
6. Website improvement and search engine optimization 
7. Build awareness
8. Content
9. Blogging 
10. Webcast and Live Events

Channel Partner Marketing Best Practices Detail

1. Analysis and Planning–Prior to embarking on marketing, take a step back with some analysis. Identify sales and profit by market segment, and product or service. Determine growth opportunities. Evaluate competitors marketing, websites, products and services. Ask an expert for an objective opinion. A marketing plan should identify timing of marketing initiatives throughout the year, along with estimated expenditures. Use a spreadsheet or calendar to manage marketing.

2. Leverage Vendor Support-Hardware vendors and software publishers typically have much deeper marketing resources than channel partners. From templates for brochures, websites, email or case studies, to content for these applications. Vendors often sponsor webcasts and product demonstrations that channel partners can participate in. Finally, vendors or publishers might offer co-op or market development funds (MDF), to reimburse channel partners for approved marketing initiatives.

3. Build Awareness–A search-optimized website can improve search authority, but awareness is having a presence in your region to build word-of-mouth and referrals. Participate in or sponsor networking events. Consider advertising in local or regional publications. Aggressively write news or press releases, and distribute to local, regional and national editor lists. Use free and paid news distribution services. Research and seek speaking opportunities at relevant events. Note that the bigger the event, the longer the planning cycle.

4. Direct Marketing–The purpose of all marketing is lead generation. So manage it with a customer database, marketing automation software or contact manager. Code, track and report leads. Integrate the database with website registration pages, and email campaigns. Conduct ongoing research into relevant prospects and contacts. Procure prospect lists from publishers or associations. Use telemarketing qualification to identify decision makers and contact information.

5. Referral Program–A recent study identified 52% of professional service business is referrals. Support client referrals by requesting references and testimonials. Identify highly networked clients and ask for referrals. Recognize referrals with gifts and thank you’s. Nothing gets referrals more that providing referrals. Systematically cultivate and give referrals.

6. Website Improvement and Search Engine Optimization (SEO)–Your website is the foundation of the marketing program. A website more than 3 years old could be obsolete (mobile version?). Does the site rank in the top 3 search results for keywords? Run search engine optimization diagnostics like SEOmoz to identify issues and problems. For more SEO tips, check our whitepaper: Search Engine Optimization.

What are your website traffic statistics? Check Google Analytics. What about content and image? Does the site have compelling content like case studies, and events? Do the graphics represent a professional image that customers can trust with their investment? Importantly, is lead generation maximized with offers and registration pages? Consider paid search (Pay-Per-Click) if vendors allow.

7. Content–Be the subject matter expert (SME) or thought leader for your niche. How? Develop case studies, white papers, eBooks, surveys and industry studies, videos and more. Use and repurpose the content for your website, blogging and social media. Use content for your credentials kit when submitting proposals. Search and curate (use with credit) content from other publishers, bloggers and editors.

8. Blogging–The tool for distributing all your content is a blog. Blogging has many benefits to a marketing program including excellent search engine optimization (SEO). Blogs integrate with your website and social media to build indexed pages, and distribute content through bookmarking and social sharing. Blog software like WordPress has powerful search optimization features, widgets and plug-ins.

9. Social Media–Social media is the hottest topic in marketing. Why? Because it can build search authority, and generate leads! How? Build-out profiles including LinkedIn personal profiles and company pages, a Facebook business page, Twitter profile, YouTube channel, Google+ and Google Places. Be sure to add social profile icons and links to your website and blog. Add social share tools to both website and blog (Facebook Like, Twitter Retweet, Google+, Bookmarks).

10. Webcasts and Live Events–Develop frequent webcast events on relevant topics. Identify relevant vendor events. Promote and communicate events via email, PR and social media channels. Attend and sponsor local or vertical marketing relevant networking and trade show events. List upcoming events on your homepage, and add an events page to the website with archives.

Following is an infographic that illustrates the channel partner marketing process.

The New Channel Partner Marketing Imperative

Marketing has elevated to mission critical status for channel partners, and the vendors or publishers they represent. To survive and thrive, channel partners must effectively implement marketing using a variety of tightly integrated outbound and inbound marketing tactics, all focused on building awareness and generating sales leads.

While internet and social media are all the rage, traditional marketing including referral programs, publicity and email are still critical to success.

Clearly, channel partners must invest more time, staff and financial resources in marketing. How much? A recent study identified IT service providers spending an average of 7.2% of revenue, and high-growth IT service providers spending an average of 12% of revenue.  Depending on staff resources, channel partners may require the services of a marketing agency. Contact us for effective VAR marketing services.

The post Channel Partner Marketing – Top 10 Best Practices appeared first on Modern Marketing Partners.

This blog is a marketing case study that will show you how a leading IT reseller (VAR) employs digital and inbound marketing to build awareness and drive sales.

A related blog in this series is a marketing case study for a top accounting/CPA firm’s technology consulting division that Modern Marketing Partners implements thought-leadership content marketing via the Internet and social media to drive sales leads. Be sure to check out the post on accounting and CPA firm marketing best practices as a supplement to these case studies.

CHALLENGE

Brittenford Systems is a leading VAR in the Washington, DC region. Brittenford implements both on-premise and cloud solutions, and provides training, staffing and technology solutions to primarily nonprofits, government contractors and professional service firms.

SOLUTION

Modern Marketing Partners retrofitted Brittenford’s website with new, search engine optimization (SEO) features, along with a mobile version. Next, MMP revamped the Brittenford blog and social profiles including social sharing tools and link building. Finally, MMP assisted in launching new products via publicity and content marketing including Britteford Staffing, CIO Advisory services, and PositivePay, a check fraud prevention application for Intacct.

RESULTS

Brittenford improved search engine results page (SERP) positions for highly competitive keywords, and successfully launched new products and services. Growing sales leads are captured in a robust CRM system. Pictured below is the search optimized website, bog, white paper, news release and product logo.

Please share this post with others interested in reseller marketing, bookmark and comment below on various initiatives you have found to be successful in this competitive environment.

The post IT Reseller Marketing: Case Study appeared first on Modern Marketing Partners.