VERTICAL & HORIZONTAL

MARKETING SYSTEMS

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“Vertical/Horizontal Integration” (choose from listed topics)

http://www.quickmba.com/strategy/
 Channel Strategies
Conventional Vertical Marketing System

PRODUCER PRODUCER

WHOLESALER
WHOLESALER
RETAILER

RETAILER

CONSUMER CONSUMER

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VMS

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Vertical marketing system

CORPORATE VMS

CONTRACTUAL VMS

FRANCHISE ORGANIZATION

ADMINISTERED VMS

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 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Corporate VMS
Contractual
VMS

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Franchised VMS

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 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Administered VMS
Horizontal System

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 Multi-Channel
PRODUCER
distribution

DISTRIBUTORS
Internet, Sales
catalogs force

RETAILERS DEALERS

CONSUMER CONSUMER BUSINESS BUSINESS

SEGMENT 1 SEGMENT 2 SEGMENT 1 SEGMENT 2
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Channel Design
ANALYZE CONSUMER
NEEDS

SET CHANNEL
OBJECTIVES

IDENTIFY CHANNEL
ALTERNATIVES

EVALUATION

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall