Horizontal Marketing System

Horizontal Marketing System (HMS) is classified from Types of Marketing System.

1. HORIZONTAL MARKETTING SYSTEM

2. A  horizontal marketing system  is a distribution channel arrangement whereby two or more organizations at the same level join together for  marketing  purposes to capitalize on a new opportunity.

3. Based on this turbulent external business environment, companies need to come up with innovative and creative solution in order to maintain the high level of awareness in front of their customers

4. The concept of HMS is based on a combination of three factors, FINANCIAL PRODUCTION MARKETING RESOURCES

5. The HMS approach mainly two or more companies which are focusing to increase the CUSTOMER BASE, without actually increase the marketing budget

6. One company realizes there is an opportunity to partner with another company in order to bring a new product to the market. The companies that form the partnership must enhancement in some way to the process of marketing the product and presenting it to a larger audience, such as in the areas of production, distribution and marketing.

7. This type of marketing allow to: Reduce cost- cooperating with other company helps to negotiate better prices of materials or any components high are needed in production process. Better utilize resources- Using knowledge and solutions of our partner provide us to create better product and helps us to avoid mistakes and problems. Avoid waste- There is a possibility that or partner will use materials to product different goods and it help to reduce cost

8. Advantages of HMS Increase Market Share Bigger base of Customers Increased Revenue Reducing Competition Reducing other production costs

9. DISADVANTAGE 0F HMS Stunning economic growth of the new enterprise Reduce flexibility happens because the company is now a longer organization . The addition of more personnel and process means the need for more transparency . Destroying value rather than creating it happens because the synergies never materialize despite the costs of the horizontal marketing system

10. APPLE AND STARBUCKS EXAMPLES

11. NIKE AND APPLE

12. UBER AND UBER EATS

13. A bank and a supermarket agree to have the bank’s ATMs located at the supermarket’s locations; two manufacturers combining to achieve economies of scale otherwise not possible with each acting alone to meet the needs and demands of a very large retailer; or two wholesalers joining together to serve a particular region at a certain time of year. OTHER EXAMPLE