A vertical market is a market consisting of a group of companies and customers that are all interconnected around a specific niche. Companies within a vertical market cater to that market's specialized needs and generally do not serve a broader market, often having their own set of business standards and high barriers to entry for new companies.
Targeting vertical markets can lead to several advantages:
Vertical markets cater to a specific niche, offering specialized products and services to meet the needs of customers within that industry. They often have high barriers to entry and their own set of business standards.
On the other hand, horizontal markets are diversified, serving multiple industries with a broader range of products and services. Walmart, for instance, serves various market demographics and partners with numerous retailers, making it part of a horizontal market.
To achieve success in vertical marketing, businesses should focus on the following strategies:
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