Vertical Marketing System


The term vertical marketing system has dual meanings:

  1. (Channels of distribution) The channel systems consisting of horizontally coordinated and vertically aligned establishments that are professionally managed and centrally coordinated to achieve optimum operating economies and maximum market impact.
    The three types of vertical marketing systems are administered vertical marketing system, contractual vertical marketing system, and corporate vertical marketing system.
  2. (Physical distribution) A long-term channel relationship in which two or more firms acknowledge and desire interdependence.[1]




  1. ^ American Marketing Association, AMA Dictionary.

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