What is a horizontal market? Compare and contrast this with a vertical market.
Horizontal and vertical markets are important to many ecommerce busnesses. However, there are some major differences that influence decisions made about ecommerce and how companies develop their marketing strategies. Horizontal markets are those that share common demographics, such as the age, socio-economic background, and preferences of consumers. Vertical markets are those that share industries or compete against each other in the same industry ( American Intercontinental University, 2015). Businesses can be influenced by both vertical and horizontal markets consecutively and often face challenges from a combination of influences in both markets.
Horizontal markets are important for all firms to consider. Target market segments that spend a certain amount for certain products or services are likely to spend relatively similar amounts for accessory products or expanded services. For instance, iPod users ...
This solution helps compare and contrast vertical markets.