A vertical market is a market in which vendors offer goods and services specific to an industry, trade, profession, or other group of customers with specialized needs.
A horizontal market is a market in which a product or service meets the needs of a wide range of buyers across different sectors of an economy.
Types
There are three types of vertical markets which encompass successive market stages of production and distribution: corporate, administered and contractual.
- Corporate vertical markets combine market stages under single ownership.
- Administered vertical markets are coordinated by one company due to its size and power.
- Contractual vertical markets are created by independent companies that combine market stages through legal agreements.
See also
- Horizontal integration
- Vertical integration
- Vertical market software
- Supply and demand
- Product-market fit
References
- Jakki J. Mohr; Sanjit Sengupta; Stanley F. Slater (2010). Marketing of High-technology Products and Innovations. Prentice Hall. p. 251. ISBN 9780136049968.
- Robert W. Haas (1992). Business Marketing Management, An Organizational Approach : Text and Cases. PWS-KENT Publishing Company. p. 107. ISBN 9780136049968.
- Charles Doyle (2011). A Dictionary of Marketing (3 ed.). Oxford University Press. doi:10.1093/acref/9780199590230.001.0001. ISBN 9780191727962.
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