Market segmentation
As we begin the New Year, I would like to introduce a topic that is beginning to gain considerable momentum with information technology companies marketing to the Public Sector – market segmentation. It is well known that the federal government by itself is the largest purchaser of information technology in the world. Add the state and local market and the totals double.
What is not well known is that a number of the market segments within the federal market are also amongst the largest. In reality, the federal government is comprised of many markets within a larger industry government market. For example, federal healthcare providers are one of the largest when compared with their commercial counterparts. Other examples of large commercial like market segments are finance, communications, law enforcement, and transportation/logistics.
While most companies have segmented their federal marketing in the defense and civilian sectors, most have not further segmented into sub-markets. As such their marketing messages are broad and unlikely to reach the target market segments.
Dual marketing message
The buyers within each of the segments have specific problems and interests, but they also have common needs because they are government. This means that you need to address your marketing message/campaign to both the market segment requirements as well as the unique government challenges. Using this dual approach assures your marketing message will resonate with all the various stakeholders. And, this will also help you find new business and stay ahead of the competition.
As marketers, we are always looking to deliver our message to the target buyer, whether it’s through the Internet or traditional media. The most successful campaigns are those that focus on the decision-makers business problems that can be solved by your solution. Considerable research is required to understand the business problems of each target market segment and identifying the functional managers that span numerous agencies. You then can tailor your message to the market segment business issues while still addressing the unique government requirements.
Steps to a successful campaign
We have identified the most important steps for a successful vertical market campaign. This is based on lessons-learned from our experiences supporting a number of the leading technology companies in the public sector market.
| 1. |
Market research – Develop an understanding of the business problems and issues in each target market segment. |
| 2. |
Target audience - Identify the cross functional, vertical subject-matter-experts and decision-makers within each target market segment. |
| 3. |
Message - Develop a dual message that addresses both the business problems your solution solves and the government challenges. |
| 4. |
Marketing media - Select the appropriate media to deliver your message. The media that our clients say produce the best near-term sales leads are webinars, customer-facing events and direct-contact lead generation programs. Other media to support the marketing campaigns are white papers, pod casts, video casts, and targeted direct mail. |
| 5. |
Execution - Implement the proper organization and process to execute the campaign. |
| 6. |
Metrics - Establish the proper metrics for measuring the success of each element of the campaign. |
Government executives are under considerable pressures to reduce expenditures in 2008 and beyond. Market segmentation within the federal and state government markets can be a source of new business opportunities for your company.
About CMA
Founded in 1989, CMA is a leading government marketing, business development and contract services firm. Contact Ken Jones at kjones@cmai.com, 703-917-7731. |
