vertical marketing systems

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vertical marketing system

A channel structure in which producers, wholesalers, and retailers act as a unified system. One channel member owns the others, has contracts with them, or has so much power that they all cooperate.

conventional marketing system

a multiple-level distribution channel in which the producer, wholesaler and retailer work independently of one another

contractual vms

a vertical marketing system in which independent firms at different levels of production and distribution join together through contracts

corporate vms

a vertical marketing system that combines successive stages of production and distribution under single ownership- channel leadership is established through common ownership

administered vms

a vertical marketing system that coordinates successive stages of production and distribution through the size and power of one or a few dominant channel members


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