Lateral marketing and segmentation in health care
Lateral segmentation is the unfamiliar term and the one carrying the marks. Vertical segmentation divides an existing market more finely; lateral thinking looks for a use outside it.
Editorial process
Last reviewed · August 15, 2026
Vertical, traditional and lateral segmentation compared
The three questions build toward one idea and the last is the one worth understanding properly. Target marketing's value is that resources go where they will produce a return rather than being spread across everyone, which matters more in health care than in most sectors because service lines carry very different margins, and because capacity is physically constrained in ways a manufacturer's is not. Vertical and traditional segmentation support that work by dividing an existing market into progressively finer slices — by age, condition, payer, geography or acuity — so that both the offering and the message can be matched to each group rather than pitched at an average nobody belongs to. That is the familiar half, and the brief's four-to-five sentence limit means it should be stated efficiently rather than illustrated at length, leaving room for the part of the question that is actually unfamiliar.
Lateral segmentation does something different and the contrast is the answer. Rather than dividing an existing market more finely, it asks what else the offering could be, who else could use it, and in what other situation — which produces new markets rather than better shares of an old one. In health care the examples are recognisable once you look for them: a hospital's simulation centre sold as corporate training, imaging capacity marketed to sports clubs, sleep laboratories repositioned for commercial drivers, or a health system offering employer-facing occupational services. The value for a marketing manager is that vertical thinking optimises within a boundary while lateral thinking questions where the boundary is, and the honest assessment is that lateral moves carry more risk because they leave the evidence base of the existing market behind. Support each answer with a real example from an organisation you know, since the brief asks for two specific ones.
Likely learning objectives
Inferred from the brief — check these against your own rubric.
- 01Distinguish vertical segmentation from lateral marketing by what each varies.
- 02Justify target marketing in terms of resource allocation and margin.
- 03Assess the additional risk that accompanies a lateral market move.
Read the full question
Review every instruction before using the planning guidance that follows.
Turn the brief into deliverables
- 01Answers to all three questions within the sentence limit.
- 02At least two specific health care target marketing examples.
- 03A clear vertical versus lateral distinction.
- 04APA citations.
Target marketing through to lateral thinking
The value of target marketing
Argue resource concentration and margin variation as the case for targeting in health care.
Vertical and traditional segmentation
Explain division of an existing market by age, condition, payer, geography or acuity.
Two concrete examples
Give two real target marketing instances from an organisation you know.
Lateral segmentation contrasted
Show that lateral thinking changes the market rather than subdividing it.
The risk of going lateral
Note that leaving the existing market means leaving its evidence base behind.
Segmentation sources in a health care context
Recommended databases
- Business Source Complete
- Journal of Healthcare Management
- Harvard Business Review
- Your course textbook's segmentation chapter
- Kaiser Family Foundation
Search sequence
- 1.Get the textbook's own definition of lateral marketing, since usage varies between sources.
- 2.Look for documented health system diversification examples rather than inventing plausible ones.
- 3.Search for service line profitability data, which supports the resource allocation argument.
- 4.Keep examples to organisations you can actually describe, as the brief asks for familiarity.
Reference shortlist
These are authoritative starting points, not a ready-made bibliography. A qualified reviewer must confirm that each source fits the assignment and supports the claim beside which it is cited.
Nothing here is cleared for citation until you have read it.
- 01
Prescription Drug Advertising
U.S. Food and Drug Administration · 2024
Regulatory limits on how health products may be promoted, which constrain both segmentation strategies.
- 02
About CAHPS
Agency for Healthcare Research and Quality · 2024
Patient experience data by service and population, which is the evidence base segmentation decisions rest on.
- 03
Wealth Inequality
Pew Research Center · 2024
Data on economic segmentation of the population, relevant to who a health service can realistically target.
- 04
Internet-Only Manuals (IOMs)
Centers for Medicare & Medicaid Services · 2025
Payment rules that determine which service lines are financially viable, which is what makes targeting consequential.
Review before submission
Common mistakes
- Treating lateral segmentation as simply a finer form of vertical segmentation.
- Giving generic marketing examples rather than health care ones from a known organisation.
- Exceeding the sentence limit on the familiar questions and compressing the unfamiliar one.
- Presenting lateral moves as costless innovation with no added risk.
Submission checklist
- Is the vertical-lateral distinction stated in terms of what each varies?
- Are two specific health care examples provided?
- Have you kept within four to five sentences per question?
- Is the added risk of lateral moves acknowledged?
Use this guide to plan and review your own work. Follow your institution's rules and read our academic-integrity policy.

Written by
Aaron Bishop
MA, Education
assignment interpretation and research-methods coaching across disciplines
Aaron leads the EssayCrackers editorial desk. He works on how assignment briefs are read — what a rubric is actually asking for, and where students most often answer a different question than the one set.

Reviewed by
Dr. Nathan Cole
PhD, Rhetoric & Composition
Argumentation and thesis development
Nathan teaches first-year composition and directs a university writing center. He reviews EssayCrackers guides for argumentative soundness and citation accuracy.