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.
What are the types of Vertical Markets?
- Information technology
- Retail trade
- Financial services
- 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.
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