Benefits of Vertical Marketing System
Vertical Marketing System has the following advantages:
1. Development of New Ideas: A vertical marketing system can provide a platform to introduce and promote innovation. As all the entities of the distribution channel will work together, it will promote better communication of new ideas. Leveraging control and innovation can lead to growth.
2. More Resources: As different entities of the distribution channel work together, they all can pool their resources and expertise. Market intelligence, knowledge transfer, innovation and knowledge sharing, etc., of an entity can be increased by using a vertical marketing system.
3. Efficiency: All the entities of the supply chain can share their knowledge and expertise, which will help all of them to work at their full capacity and make the distribution channel more effective and efficient.
4. Improves Branding: A better brand promotion can be done under a vertical marketing system, as all the entities will focus on brand recognition.
Vertical Marketing System | Types, Benefits and Drawbacks
Every product and service needs a proper path to reach customers from producers. Mainly, intermediaries help the product reach the customers. As more and more entities get introduced in the distribution channel, there arises a need to have a proper plan which needs to be followed. Vertical Marketing System is an important marketing strategy that involves the collaboration of all the entities of the distribution channel to focus on the efficiency of the distribution channel along with economies of scale.