VMS stands for vertical marketing system that coordinates successive stages of production and distribution, not through common ownership or contractual ties but through the size and power of the parties.
An administered vertical marketing system exists when the manufacturer administers and coordinates the production and distribution stages of a vertical marketing system through its sheer market power and size. The dominant member need not be the manufacturer always; it can also be the wholesaler or retailer at times. A dominant member of the system would receive strong support and cooperation from the resellers.
For example, companies like Kodak, Procter & Gamble, and Gillette can obtain strong cooperation from resellers regarding displays, shelf space, promotions and pricing policies.
An administered vertical marketing system exists when the manufacturer administers and coordinates the production and distribution stages of a vertical marketing system through its sheer market power and size. The dominant member need not be the manufacturer always; it can also be the wholesaler or retailer at times. A dominant member of the system would receive strong support and cooperation from the resellers.
For example, companies like Kodak, Procter & Gamble, and Gillette can obtain strong cooperation from resellers regarding displays, shelf space, promotions and pricing policies.