Exploring Vertical Marketing is Essential For Your Success

The Ultimate Guide To Exploring Vertical Marketing

3 Types of Vertical Marketing

Exploring Vertical Marketing is Essential For Your Success Exploring Vertical Marketing is Essential For Your Success.

There are various systems when it comes to vertical marketing, but most of the time, it’s narrowed down to three main components: producer, retailer, and wholesaler. The producer is the one that creates the product, the wholesaler buys it from the producer and further distributes it to retailers who will mark up the prices and sell it to the audience. Keeping that in mind, we have:

  1. Corporate VM: involved with the ownership dealing with the production chain or level distribution of a certain company. One example would be Apple, which holds responsibility for everything product-related. They depend on their own company to retail the products.
  2. Contractual VM: This type of vertical marketing system holds formal agreements with similar companies. It is used so that the overall process is coordinated and the relations within companies enlarge the audience. A common type of contractual vertical marketing strategy is franchising.
  3. Administered VM: This type applies to bigger companies which are expanded throughout the country (or world), and it only takes a member from the production and the distribution chain to dominate activities. An example would be Wal-Mart, which is a huge retailer on the market.

There are certain online classes related to virtual marketing, but overall, the bottom line is that you will have to design an appropriate campaign which will attract a certain group of consumers. 

By Andreea | TWDG Contributor 

photo credit: Europeana Business Plan 2017 Workshop via (license)

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