Businesses often struggle with marketing strategies. While most people presume marketing is an easy concept, the approach has to be suited for the specific business and the target market. There are various approaches that can be incorporated in a bid to attract the right consumer hence maximizing on profits. These include horizontal and vertical marketing systems. Although both are marketing systems, the approach to the market is different. Show
 What is Vertical Marketing System?This is a marketing system that aims to attract and reach businesses operating in the same industry. The three components of the vertical marketing system include the manufacturer, wholesaler and the retailer whereby the role of the wholesaler is to purchase the products from the producer and distribute to the retailer. These three work together with the intention of profit maximization. For instance, a water pumps manufacturer sells the goods to water pumps contractors as well as installers. The vertical marketing system is divided into:
What is Horizontal Marketing Systems?This is a marketing system whereby businesses which are at the same level join together to gain economies of scale. The businesses combine resources such as marketing, distribution, production and even human resource in a bid to maximize their profits. With increased market competition, this marketing system has in the recent past gained popularity. Horizontal marketing system can be a collaboration between manufacturers, wholesalers, and retailers. Examples of companies engaging in horizontal marketing system are Johnson & Johnson and Google whereby the two have joined hands with the intention of creating a robotic-assisted surgical platform. An advantage of the horizontal marketing system is that it focuses on broader audiences as opposed to specific niches. It is also time-saving as less time is spent on creating content, as it is not personalized. Similarities between Vertical and Horizontal Marketing System
Differences between Vertical and Horizontal Marketing SystemDefinitionVertical marketing system refers to a marketing system that aims to attract and reach businesses operating in the same industry. On the other hand, horizontal marketing system refers to a marketing system whereby businesses which are at the same level join together to gain economies of scale. PlayersPlayers in vertical marketing system include manufacturers, wholesalers, and the retailers whereby the three works together with the intention of profit maximization. On the other hand, players in horizontal marketing system can either be manufacturers, wholesalers and retailers. DemographicWhile businesses using vertical marketing system seek to appeal to a specific demographic, businesses using horizontal marketing system appeal to a wide demographic that is not specific. Partnership opportunitiesVertical marketing systems do not provide a partnership environment. On the other hand, horizontal marketing systems provide more opportunities for partnerships. Vertical vs. Horizontal Marketing System: Comparison TableSummary between Vertical and Horizontal Marketing SystemVertical marketing system refers to a marketing system that aims to attract and reach businesses operating in the same industry and seeks to appeal to a specific demographic. On the other hand, horizontal marketing system refers to a marketing system whereby a business which is at the same level join together to gain economies of scale and seeks to appeal to a wide demographic that is not specific.
Tabitha graduated from Jomo Kenyatta University of Agriculture and Technology with a Bachelor’s Degree in Commerce, whereby she specialized in Finance. She has had the pleasure of working with various organizations and garnered expertise in business management, business administration, accounting, finance operations, and digital marketing. Loading... Cite What is the major difference between conventional marketing channel and vertical marketing system?Retailers focus efforts on selling products to customers, while manufacturers focus on making products and wholesalers worry about getting the products from one to the other. In vertical marketing systems, the majority of responsibility tends to fall on one channel member.
What are conventional vertical and horizontal marketing systems?Definition. Vertical marketing system refers to a marketing system that aims to attract and reach businesses operating in the same industry. On the other hand, horizontal marketing system refers to a marketing system whereby businesses which are at the same level join together to gain economies of scale.
What is a conventional channel system?The conventional distribution channel is the most common distribution channel. Conventional distribution comprises of a producer, wholesalers and retailers, all acting independently. This channel ensures flow of goods from producer to the end customers via the wholesalers and retailers.
What is vertical marketing channel?A vertical marketing system refers to the teamwork of the different members of any distribution channel. This can include producers, retailers, and wholesalers. All of them need to work with one another in order to successfully deliver products to consumers and achieve the best possible efficiency.
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What is the major difference between a conventional marketing channel and vertical marketing channel?
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