One is as essential as another for a smooth-running smooth business environment. Simply put, business verticals, vertical markets, or “verticals,” are business niches where vendors serve a specific audience and their set of needs. In comparison, a horizontal market covers a wide range of vertical markets with different clients and vendors.
Examples of Business Verticals
An example vertical market segment is the financial services vertical markets.
There are numerous sub-sectors in this particular vertical market (e.g., brokers, credit card companies, and more).
- However, most of us are more familiar with the stock and bond market segment.
- Therefore, in this example, we have the stocks, options, commodities, mutual funds, and more.
For our example business vertical market segment, again, let us assume that we are looking at the financial services vertical market segment. We note that it offers a broad range of products like financial consultation (including taxation, estate planning, estate management, probate, and financial statements preparation), financial marketing, financial advertising, and financial research.
With this in mind, the first sub-segment on our list, financial marketing, is an excellent choice if we are in need of a quick and easy way to communicate our message to potential customers.
- For instance, it can be used to attract customers through online media (e.g., blogs, Twitter, Facebook).
- Or, it can be used for email marketing which, though relatively new in this industry, is still quite helpful in attracting new customers and clients.
Types of Vertical Markets
Three types of vertical markets encompass successive production and distribution market stages: corporate, administered, and contractual.
- Corporate vertical markets combine market stages under single ownership.
- Administered vertical markets get coordinated by one company due to its size and power.
- Contractual vertical markets get created by independent companies that combine market stages through legal agreements.