Jenna Langer
Product and marketing consultant, former industry strategy PMM at Adobe, Founding Team and VP PMM at Livefyre (acquired by Adobe) at Adobe

There are a few questions you need to answer to determine if it's worth targeting this new vertical:

- Do you have product-market fit? Are you solving a real problem for this vertical?

- What is the size of the market opportunity for this vertical? How will it grow over time? (their industry growth and your product growth) How does it compare to markets you are doing well in?

- How similar is the vertical to existing verticals where you have success? Would you have to do much to change your value proposition or messaging?

- Are there known competitors targeting this vertical? How do you compare?

If you know you have product-market fit, the next step is to identify the size of the opportunity in the potential verticals. Use research reports to find the size of the industry you are targeting, and it's CAGR compared to other industries. You also may find spending reports to know how much they are already spending or are predicted to spend in the coming years on a technology similar to yours - IT, advertising, etc. The information is out there.

Another method is more of a "bottoms up" approach where you would determine the characteristics of the companies you are targeting (industry, employees, size of the marketing team, etc), and determine how many companies could be in your target market.

Agustina Sacerdote
Global Head of PMM and Content Marketing, TIDAL at Square
I don't actually use market research for that, is the short answer. If we believe that our solution is well suited for a particular vertical, we have the budget to invest in GTM to capture business in this vertical, and the vertical is fragmented / doesn't have a real clear winner, we will go for...more
Susan "Spark" Park
Head of Product Marketing, VR Work Experiences, Oculus at Meta
Instead of a "vertical focus" go forward with a New Audience focus so you can leverage the 5A GTM framework , and ensure you're thinking through a consumers' need.  Also, if you focus on a new user, you can also employ the "Job to be done" framework, which can help narrow what the customer reall...more
Vanessa Thompson
Senior Director, Product Marketing at Twilio
When looking to identify target verticals, I always prefer a data driven approach. I'd work up a detailed analysis exercise and build a vertical based TAM. I have a go-to bubble chart that I like to develop which is based on the growth rate of each (CAGR, y axis) vs the revenue opportunity (x axi...more
Vishal Naik
Director, Product Marketing at DocuSign
Market research is a pretty valuable data point in terms of prioritizing verticals (or any other segmentation slice), but so too is your product ownership point of view and your internal usage data. So you don't need to lean on external research, but it can certainly augment your other efforts. I...more
Harish Peri
Head of Product Marketing - Security, Integrations, Mobile at Salesforce
Making the assumption here that vertical = industry. 1. Industry definition - which taxonomy are you using. NAICS, SIC, propietary, DUNS, Clearbit? This is important because there is a lot of nuance hidden in sub-verticals, so getting your language aligned is key 2. TAM - what is the a...more
John Hurley
Head of Product Marketing at Amplitude
Ensure verticalization aligns well with core competencies, market perception, ability to deliver and differentiation. If you do not clearly understand the definition of the target vertical, the trends in that vertical’s consumer or enterprise user market as well as the size of the opportunity, it...more