Harsh Vardhan's List: Marketing Concepts

• A vertical market is a group of similar businesses and customers which engage in trade based on specific and specialized needs. Often, participants in a vertical market are very limited to a subset of a larger industry (a niche market). An example of this sort of market is the market for point-of-sale terminals, which are often designed specifically for similar customers and are not available for purchase to the general public. Vertical marketing can be witnessed at trade shows.

  • Definition of "Vertical Market"
  Add Sticky Note

• The activities of participants within any given vertical market are typically similar in that they aim at solving the same or similar problems. These markets are typically competitive, due to the overlapping focuses of the products and services that are provided to the customers.

   

  The single defining characteristic of the participants in a vertical market is competition within a well-defined segment.

• A vertical market is a market which meets the needs of a particular industry: for example, a piece of equipment used only by semiconductor manufacturers. It is also known as a niche market.^[1]

   

  A horizontal market is a market which meets a given need of a wide variety of industries, rather than a specific one: for example, word processing software.^[2] On occasion a horizontal market can be highly specialized at the same time, for instance consider the market for converting mainframe databases developed with the tools of a particular company. The market for such a database conversion service might involve many vertical markets (aerospace, manufacturing, banking, etc) but nevertheless be labelled "niche" if the database technology is technically obsolete and no longer mainstream.

1 more annotation...

• A horizontal market is a market which meets a given need of a wide variety of industries, rather than a specific one.

  • Definition of "Horizontal Market"
  Add Sticky Note
• In technology, horizontal markets consist of customers that share a common need that exists in many or all (vertical) industries. For example, customers that need to purchase computer security services or software exist in such varied industries as finance, healthcare, government, etc. Together, these customers constitute the security horizontal market. Other examples of horizontal markets include computer storage, accounting, desktop graphics, computer-aided design, sales force automation, and human resources. Often specialized distribution channels emerge to serve these unique horizontal markets.

  • Compare with "Vertical Market" which has a more niche user base than the generic user base of "Horizontal Market".
  Add Sticky Note