Vertical and Horizontal Industrial Markets:

It is useful for an industrial marketer to know whether his/her market is vertical or horizontal. This is necessary for effective marketing planning. A vertical business market applies if a firm's product is virtually usable by all firms in only one or two industries. For example, a precision instrument may be intended only for the marine market although the boat builder and ship builder are potential market segments.

A horizontal business market applies if the product is usable by many industries. Products such as lubricating oils and electric wires can be sold to a variety of industries.

The marketer normally tailor makes his product to meet the specific needs of one industry. The industry is expected to buy enough in order to support this king of specialisation.