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Vertical Market

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Vertical market - This refers to an industry or group of companies that can be marketed to in a similar manner because they have similar needs. Some common examples of vertical markets include medical offices, insurance, video rental, and automobile servicing.

Vertical Market Application - This is a software package written specifically for a particular vertical market, as opposed to more generic multi-purpose applications such as office suites. One example is a program written for the pipeline industry that records and charts data needed to be in compliance with government recordkeeping regulations. Such an application is useless outside the pipeline industry.
Here are three software marketing approaches, compared and contrasted.
Shrink Wrap Vertical Market Custom or Turn Key
May be used differently depending on the customer. This implies flexiblity to meet individual needs. All users in similar industries, or in industries with similarly configured Value Chains. Most use the software in similar ways. Static set of users. All use the software the same way.
Functionality driven by market. Functionality driven by needs of industries or segments thereof. Functionality largely driven by process or other sustainable competitive advantage needs.
Functionality decisions made by software company. Functionality decisions made by Users from an industry. Functionality decisions made by User's company.
Development cycle typically long, and is release based. Development cycle typically shorter, driven by customer demand within industries. Incremental Development cycle involving one customer.

What software, database software in particular, is not ment for one industry? I think this category has just engulfed the Shrink Wrap one.

I am also thinking that Shrink Wrap, Vertical Market, and Turn Key are not mutually exclusive categories. I think if we are going to define categories, there should not be overlap; otherwise, why bother? A: If you can adequatly catagorize software, then you can use others wisdom to guide you. That fails if it is unclear what you and others are doing. -- ?CFK

VisualFoxPro, Access, Delphi, Oracle, etc. are general purpose database programs. They can be used by management, secretaries, engineers, field techs...., in any industry to store, manipulate, and report on any aspect of data related to their job or a task at hand.

As a programmer/developer, I can use VFP to build an application that is directly suited to 1) a single customer per their detailed spec (Turn Key or Custom), 2) a selected group of customers with similar needs such as the pipeline industry (Vertical Market), or 3) a large group of computer users across multiple industries and/or markets (Shrink Wrap).

Yes, I agree that any given application can overlap into two of these categories. -- Randy Bosma

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( Topic last updated: 2001.10.24 06:16:16 PM )