Vertical marketing is a form of marketing in which services, products or solutions are promoted within a particular vertical or industry. These verticals are specific industries or demographic. These industries are also known as a niche market.

Vertical marketing is completely opposite to that of mass marketing. It is often used by the companies and organizations that make highly specialized products and want to entice a much targeted market-base.

Vertical Marketing

What are the types of Vertical Markets?

  • Information technology
  • Healthcare
  • Retail trade
  • Utilities
  • Banking
  • Financial services
  • Automotive
  • Transportation
  • Manufacturing
  • Energy
  • And more

 What is a Vertical Marketing System?

A vertical marketing system (VMS) is one in which the main members of a distribution channel—producer, wholesaler, and retailer – work together as a unified group in order to meet consumer needs.

(Source: Inc)

 What are the benefits of Vertical marketing system?

  • Highly targeted
  • Gives more control over your business
  • Efficient marketing
  • Lower transaction costs
  • Better level of certainty
  • Brings more sales
  • Higher conversion rates

 What are the three major types of vertical marketing systems?

  • Corporate System – A group of companies performing different tasks under one’s ownership.
  • Contractual System – Independent companies that join together for mutual benefit. Producer, wholesaler and retailer have sub-groups.
  • Administered System – Whoever wields the most economic power within the group can force greater cooperation and support from other members of the group.

(Source: Small Town Marketing)

What are the components of Vertical Marketing?

  • Company website that delivers good user experience
  • Blog
  • Brochures
  • Signage


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