vertical marketing system (vms) is a distribution channel structure in which producers, wholesalers, and retailers cooperate, under proper incentives, to make a product and or service available to customer for use or consumption.
three different forms of vertical marketing system
corporate vms - ex: GM - has 3 levels - producer, seller, marketer.
contractual vms such as franchise organization (Subway, Quizno's)
administered vms due to market power - where one (dominant) member of the distribution chain uses its position to co-ordinate the other members' activities. ex: apple is able to use its market power to set prices of mp3 players.
No comments:
Post a Comment