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Need Information on Marketing Channels
- Thread starter gorki
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- channels information marketing
abhishreshthaa
Abhijeet S
Re: Marketing Channels
hey gorki,
here are some information about your topic.. check it out......
A vertical marketing system (VMS) is one in which the main members of a distribution channel—producer, wholesaler, and retailer—work together as a unified group in order to meet consumer needs. In conventional marketing systems, producers, wholesalers, and retailers are separate businesses that are all trying to maximize their profits. When the effort of one channel member to maximize profits comes at the expense of other members, conflicts can arise that reduce profits for the entire channel. To address this problem, more and more companies are forming vertical marketing systems.
Vertical marketing systems can take several forms. In a corporate VMS, one member of the distribution channel owns the other members. Although they are owned jointly, each company in the chain continues to perform a separate task. In an administered VMS, one member of the channel is large and powerful enough to coordinate the activities of the other members without an ownership stake. Finally, a contractual VMS consists of independent firms joined together by contract for their mutual benefit. One type of contractual VMS is a retailer cooperative, in which a group of retailers buy from a jointly owned wholesaler. Another type of contractual VMS is a franchise organization, in which a producer licenses a wholesaler to distribute its products.
The concept behind vertical marketing systems is similar to vertical integration. In vertical integration, a company expands its operations by assuming the activities of the next link in the chain of distribution. For example, an auto parts supplier might practice forward integration by purchasing a retail outlet to sell its products. Similarly, the auto parts supplier might practice backward integration by purchasing a steel plant to obtain the raw materials needed to manufacture its products. Vertical marketing should not be confused with horizontal marketing, in which members at the same level in a channel of distribution band together in strategic alliances or joint ventures to exploit a new marketing opportunity.
you can also check out this link it can help you more on that ...
How To Use Vertical Marketing Systems by Tom Egelhoff - small town marketing
The FMCG & RETAIL Marketing Blog: Vertical Marketing Systems (VMS)
http://www.iveybusinessjournal.com/view_article.asp?intArticle_ID=423
http://www.rotman.utoronto.ca/andrew.ching/MGT252_2008/252-lecture11b.ppt
http://www.lectureshare.com/download.php?q=chapter11_distribution_channeling_101415.pdf&r=doc
hey gorki,
here are some information about your topic.. check it out......
A vertical marketing system (VMS) is one in which the main members of a distribution channel—producer, wholesaler, and retailer—work together as a unified group in order to meet consumer needs. In conventional marketing systems, producers, wholesalers, and retailers are separate businesses that are all trying to maximize their profits. When the effort of one channel member to maximize profits comes at the expense of other members, conflicts can arise that reduce profits for the entire channel. To address this problem, more and more companies are forming vertical marketing systems.
Vertical marketing systems can take several forms. In a corporate VMS, one member of the distribution channel owns the other members. Although they are owned jointly, each company in the chain continues to perform a separate task. In an administered VMS, one member of the channel is large and powerful enough to coordinate the activities of the other members without an ownership stake. Finally, a contractual VMS consists of independent firms joined together by contract for their mutual benefit. One type of contractual VMS is a retailer cooperative, in which a group of retailers buy from a jointly owned wholesaler. Another type of contractual VMS is a franchise organization, in which a producer licenses a wholesaler to distribute its products.
The concept behind vertical marketing systems is similar to vertical integration. In vertical integration, a company expands its operations by assuming the activities of the next link in the chain of distribution. For example, an auto parts supplier might practice forward integration by purchasing a retail outlet to sell its products. Similarly, the auto parts supplier might practice backward integration by purchasing a steel plant to obtain the raw materials needed to manufacture its products. Vertical marketing should not be confused with horizontal marketing, in which members at the same level in a channel of distribution band together in strategic alliances or joint ventures to exploit a new marketing opportunity.
you can also check out this link it can help you more on that ...
How To Use Vertical Marketing Systems by Tom Egelhoff - small town marketing
The FMCG & RETAIL Marketing Blog: Vertical Marketing Systems (VMS)
http://www.iveybusinessjournal.com/view_article.asp?intArticle_ID=423
http://www.rotman.utoronto.ca/andrew.ching/MGT252_2008/252-lecture11b.ppt
http://www.lectureshare.com/download.php?q=chapter11_distribution_channeling_101415.pdf&r=doc
jitendra05
Banned
Hi all!
Im writing an essay titled: Developing strategic partnership in vertical marketing systems
I have to write about managing VMS, criteria for electing channel members, strategic alliances, etc.
I don't have many books to study from so i need some help, please...
As we know that a marketing channel is a collection of methods or actions essential to transfer the ownership of goods from the point of manufacturing to the point of use. Hey gorki, for more details, you can check my presentation on marketing channels.