Vertical marketing

A vertical marketing system is one in which the main members of a distribution channel—producer, wholesaler, and retailer—work together as a unified group to meet consumer needs.

1. Vertical marketing systems Matching Supply with Demand

2. VMS: Vertical Marketing System Compiled by author from source: bizfluent.com

3. What is a Vertical Marketing System? The members work together to promote efficiency and economies of scale in the way products are promoted to customers Compiled by author from source: bizfluent.com

4. What are Distribution Channels? Distribution channels are also known as marketing channels or marketing distribution channels Compiled by author from source: searchitchannel.techtarget.com Image Source: Google Images

5. Primary Distribution Channels Direct With the direct channel, the vendor of a product or service sells directly to the customer Indirect The indirect channel, in contrast, offloads sales activities to individuals and organizations known as intermediaries

6. Conventional Marketing Systems: Compiled by author from source: bizfluent.com

7. Vertical Systems Addressing Conflict Compiled by author from source: inc.com

8. 3 Components of a Vertical Marketing System The producer = the manufacturer who physically makes a product The wholesaler purchases products from the producer and manages the distribution to retailers Retailers in turn mark up the price and sell products to consumers Compiled by author from source: bizfluent.com

9. Corporate Vertical System: A corporate vertical marketing system involves the ownership of all levels of the production or distribution chain by a single company ™ Compiled by author from source: product2market.walme.com Image Source: Google Images

10. Contractual Vertical System: Franchising is a common form of a contractual vertical marketing system A contractual vertical marketing system involves a formal agreement between the various levels of the distribution or production channel to coordinate the overall process Arrangement where one party (the franchiser) grants another party (the franchisee) the right to use its trademark or trade-name as well as certain business systems and processes, to produce and market a good or service according to certain specifications Compiled by author from source: bizfluent.com

11. Administered Vertical System: An administered vertical marketing system is one in which one member of the production and distribution chain -- due to its sheer size -- is dominant and organizes the nature of the vertical marketing system Compiled by author from source: bizfluent.com Image Source: Google Images

12. Coordination Compiled by author from source: smallbusiness.chron.com

13. Disadvantages of Vertical Marketing Disadvantages: Poor quality Lack of innovation Lack of initiative Higher prices Compiled by author from source: smallbusiness.chron.com

14. Service Compiled by author from source: smallbusiness.chron.com Image Source: Google Images

15. Flexibility Compiled by author from source: smallbusiness.chron.com

16. Oligopoly This refers to a state of economic affairs where only a few firms control -- and hence rule -- an entire market Compiled by author from source: smallbusiness.chron.com Image Source: Google Images

17. Establishing a System Which vertical marketing system your business establishes will depend a great deal on: Size Resources Market share Compiled by author from source: linkedin.com

18. Contact Us for the Full Presentation: Mediacontact USA Inc. 13575 58TH Street North #160 Clearwater, Fl. 33760 T: 727 538 4112 E: [email protected] www.mediacontactusa.com

19. Sources Cited: Dontigney , Eric. "Three Types of Vertical Marketing Systems | Chron.com."  Small Business - Chron.com . N.p ., n.d. Web. 29 Jan. 2018. <http://smallbusiness.chron.com/three-types-vertical-marketing-systems-64258.html>. Iannuzzi , Alessandro. "Types of Vertical Marketing System | LinkedIn."  LinkedIn: Log In or Sign Up . N.p ., 31 July 2014. Web. 1 Feb. 2018. <https://www.linkedin.com/pulse/20140731145900-41390803-types-of-vertical-marketing-system/>. Johnson, Walter. "The Disadvantages of a Vertical Marketing System | Chron.com."  Small Business - Chron.com . N.p ., n.d. Web. 2 Feb. 2018. <http://smallbusiness.chron.com/disadvantages-vertical-marketing-system-25165.html>. Mello, James. "3 Types of Vertical Marketing Systems."  Product2Market . N.p ., 3 Mar. 2014. Web. 29 Jan. 2018. <https://product2market.walkme.com/3-types-vertical-marketing-systems/>. Richards, Leigh. "Three Types of Vertical Marketing Systems."  Bizfluent . N.p ., 26 Sept. 2017. Web. 29 Jan. 2018. <https://bizfluent.com/info-8367821-three-types-vertical-marketing-systems.html>. "Vertical Marketing System - Encyclopedia - Business Terms."  Inc.com . N.p ., n.d. Web. 29 Jan. 2018. <https://www.inc.com/encyclopedia/vertical-marketing-system.html>.