Kotler and Trias de Bes Lateral Marketing strategy

Dr. Subhodip Mitra,

Dept. of Hospital Administration,

KMC, Manipal.

Points to be noted• The value of target marketing as an

important healthcare marketing activity.• Vertical segmentation by identifying viable

segments by drilling down into markets. • Lateral segmentation to look broadly at

markets to identify previously overlooked opportunities.

• Appreciate the value of Lateral Marketing Strategy for realizing the true depth and breadth of marketplace opportunities.

Introduction

Market segmentation

• Target marketing Targeting

Product positioning

• Tailors products for specific market segments.• More productive than mass marketing , which involves marketing

goods and services to broad markets.• Target marketing places a defined emphasis on serving specific

customer populations.• Despite it’s benefits, refinements can be made. E.g.: Market

segmentation.

Market segmentation• Process of diving the market in to groups of individuals

who share common interests• Typically effected by drilling down into markets,

bypassing layers that are deemed undesirable.• Appealing market segments are then targeted.• This method of drilling down is known as VERTICAL

SEGMENTATION. • Therefore it helps markets to look broadly at their

markets to serve the customers who have been previously overlooked.

• Also benefits the customers who’s needs might have gone unnoticed.

Discarded needs

Discarded customers

Discarded situations/uses

DiscardedOpportunities

Discarded needs

Discarded customers

Discarded situations/uses

DiscardedOpportunities

In the healthcare industry• Examine their served markets segments and the products that

are used to address those segments. • Endeavour to determine what market segment opportunities

have been overlooked or bypassed. • Evaluation of previously foregone segments to determine

whether they are worthy of pursuit. • Requires a degree of creativity and exploration on part of the

healthcare marketers.• Affords a range of segmentation opportunities that might be

overlooked. • Kotler and Trias de Bes maintains that lateral segmentation is

NOT a substitute for target segmentation. • Gives the healthcare marketers an edge in the ever

increasing competitive intensity of the marketplace.

7 principles for successful lateral marketing

1. Healthcare industries need to innovate if they are to grow and prosper.

2. New products fail due to the traditional innovation process.

3. Most of the products offer just a specialized version of something already on the market.

4. Repeated application of vertical thinking can lead to hypersegmented market.

5. New products of services must be thought up in a complementary way which will lead to new categories or markets.

6. Teaches a distinct framework and process that can be made the organization’s culture.

7. Lateral marketing thinking might occur spontaneously or consciously.

Thank you! 😄