![]() ![]() However, you can also find tons of other products across a variety of markets at, say, Target, while ChocoSol only has chocolate-based items.įrom a buyer’s perspective, Target may offer a more convenient and possibly more affordable option for buying chocolate. Grocery stores, on the other hand, sell chocolate and chocolate-based products in a horizontal market. However, this broad approach also means companies in horizontal markets face more competition.įor example, ChocoSol is a chocolate brand that operates in a vertical market selling chocolate-based products. For instance, companies in vertical markets enjoy reduced competition, but are vulnerable to fluctuations in demand for their specialized products.īy contrast, because they offer a wide range of products or serve a wide range of people, companies in a horizontal market are less vulnerable to demand changes in a specific niche market. Vertical and horizontal markets have different strengths and weaknesses. So a business operating in a horizontal market may sell a variety of products, or serve a variety of consumers, or both. ![]() While vertical markets are concentrated on selling specific products and services in a particular niche, horizontal markets are spread across various products and niches. This is also a vertical market, but it’s a bit broader than the one beelove is focused on. And then there’s Satya, which sells plant-based skin care. As a real-world example, ecommerce brand beelove makes and sells products made from honey and related byproducts. Some common examples of vertical markets include:īusiness verticals can also serve a narrower customer base than the categories listed above. Either way, vertical markets are clearly defined and appeal to a well-defined customer group. Companies that operate in one or more verticals may sell just one product, or offer multiple services to a particular audience. Examples of vertical marketing strategyĪ vertical market refers to a narrow industry group that shares a commonality-typically, a customer niche or similar products and services. ![]()
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