Horizontal and vertical market
{{short description|Market of vendors selling goods or services specific to an industry or trade}}
File:A collection of generic medicine pills on a white background.jpg is an example of a vertical market]]
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.{{cite book |title=Marketing of High-technology Products and Innovations |author1=Jakki J. Mohr |author2=Sanjit Sengupta |author3=Stanley F. Slater |year=2010 |isbn=9780136049968 |page=251 |publisher=Prentice Hall}}{{cite book |title=Business Marketing Management, An Organizational Approach : Text and Cases |author=Robert W. Haas |year=1992 |isbn=9780136049968 |page=107 |publisher=PWS-KENT Publishing Company}}
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.{{cite book |title=A Dictionary of Marketing (3 ed.) |author=Charles Doyle |year=2011 |isbn=9780191727962 |doi=10.1093/acref/9780199590230.001.0001 |publisher=Oxford University Press}}
See also
References
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