Vertical market

Okay, so imagine you and your friends decided to start a lemonade stand. You all work together to make the lemonade, set up the stand, and sell cups to people who walk by.

Now, let's say you all decided to only sell lemonade to people who work in nearby offices. You think they might be thirsty during their workday and could use a refreshing drink. This means you have picked a specific group of people, or a "market," to sell your lemonade to.

This is kind of like a “vertical market”. A vertical market is when a business or company sells products or services to a specific group of customers who all have something in common, like working in the same industry. For example, there could be a company that only sells software to doctors or only sells construction materials to builders.

By focusing on a specific group of customers, businesses can really get to know their needs and make products that work best for them. Kind of like how you know that the people who work in offices might need a drink during their workday.

So, just like your lemonade stand, businesses selling to a specific group of customers in a certain industry is what we call a vertical market.