What is a Horizontal Market?
A horizontal market is a market that caters to a large audience. These companies typically sell products that are in high-demand, are used by different audiences and sectors, and aren’t limited to specific locations. They cast a wide net and aren’t pigeon-holed into selling niche products. Companies that operate within horizontal markets tend to have large sales and marketing teams that work together to build brand awareness and generate revenue.
Horizontal vs. Vertical Markets
What’s the difference between a horizontal and a vertical market? The answer’s simple: they’re opposites of one another. While horizontal markets can sell to anyone, vertical markets are more niche and have a very specific customer base.
For example, a company operating within a horizontal market could sell coffee beans, which is a product many people across various audiences are interested in. A second company operating within a vertical market may sell a coffee-alternative for people who are allergic to caffeine. This product would have a very specific, targeted audience to sell to.
Benefits of Horizontal Markets
There are many advantages of working in a horizontal market that give you a competitive edge when selling.
- Demand. Your product is in demand across various sectors, and there’s no shortage of potential customers. People want to purchase your product – you just need to convince them why you’re the best option.
- Large audience. Thanks to the demand of horizontal markets, there’s various audiences you can sell to. Prospecting opportunities won’t dry up, but you may need to get creative when targeting different sectors.
- Collaboration. Companies will often partner up and offer their products as a package deal. If there’s a company selling something that your customers would also benefit from, why not collaborate? This will help build new relationships, and open doors to even more audiences your sales team can tap in to.
- Creativity. Since horizontal markets sell to so many different people, there’s ample opportunity to get creative with marketing and sales pitches. The way you sell to one group may not work for another, so you’ll need to switch things up. Ensure your sales and marketing teams are aligned on different messaging, and work together to target different audiences.
Tips for Using Virtual Selling in Horizontal Markets
In today’s markets, virtual selling is key. Businesses are moving online, and sales rarely happen face-to-face anymore. To stay ahead of your competition, you’ll need to implement new tactics. Enter: the power of video.
- Virtual prospecting. Ensure you make a good first impression with your prospects. Video prospecting allows you to introduce yourself and your product in a fun, engaging way that will stand out from the pile of boring emails flooding people’s inboxes. There are lots of ways you can use videos when selling, so get creative.
- Demo videos. Need an exciting way to show off your product? Record a demo video that can be easily shared. You can use different versions for specific audiences, and easily personalize them too. Plus, your prospect will be able to save and reference it in the future.
- FAQ videos. Every sales call will come with questions. Prepare yourself, and your prospects, by recording a video answering the most common frequently asked questions. This will provide succinct answers and show that you’re proactively thinking about their needs.