What is Vertical Marketing? What is the definition?

Vertical Marketing System Definition: Vertical Marketing System (VMS) Traditional marketing channels are made up of independent producers, wholesalers, and retailers. They have a loose relationship with each other, each for its own benefit.

A vertical marketing system consists of a manufacturer, wholesaler, retailer, one member of which owns the other members, or practices franchising, or it is strong enough to make the other members willing to cooperate. The system is designed and managed by professionals, and is a centralized sales network. A vertical marketing system may be controlled by a manufacturer or a wholesaler or retailer.

The system can effectively control channel behavior and resolve channel conflicts. Channel members reap benefits through economies of scale, bargaining power and reduced duplication of services. Vertical marketing systems can be divided into three types:

1 Ownership Vertical Marketing System Ownership vertical marketing system is a series of production and distribution organizations under a single ownership system. 2 Managed Vertical Marketing System Managed vertical marketing system is a marketing system in which a large and powerful member unites production and distribution enterprises that are not under the same ownership. 3 Contractual vertical marketing system Contractual vertical marketing system refers to the joint operation of different production and marketing agencies on the basis of contracts, with the expectation that they can produce greater benefits than when they operate alone.

The main forms of the contract-based vertical marketing system are: (1) Voluntary chain system supported by wholesalers This is a chain organization initiated by wholesalers to protect their retailers against other larger competitors, and the way is that wholesalers first draw up a set of plans, and then persuade independent retailers to join the system, in addition to using standardized names and pursuing economic efficiency in commodity procurement, they can also unite to resist the invasion of other chain organizations. (2) The voluntary chain system of retailer cooperation is usually to prevent the invasion of ownership-type chain organizations, and the retailer organizes an agency to perform wholesale work and even production work.

Organize members to purchase collectively and return to share profits according to the purchase volume of members. (3) Franchise organization The franchise organization, that is, the institutions in the "production-distribution" continuum, are connected under a common contract, and each member becomes the unit with the franchise right. It can be distinguished into three forms:

Manufacturer-supported retail licensing systems are generally most prevalent in the automotive industry. Manufacturer-supported wholesale licensing system, commonly found in the soft drinks industry. Retail concession systems supported by service providers are common in the catering, hotel management and taxi industries.

Vertical marketing is a unified consortium of producers, wholesalers, and retailers. A channel member owns the property rights of other members, or it is a special agency relationship, or a channel member has considerable strength, and other members are willing to cooperate. A vertical marketing system can be at the disposal of the producer, a wholesaler, or a retailer.

Advantages: First, flexible product management; second, high-quality and efficient service; Third, the degree of information integration is high; Fourth, refined operation. Cons:

First of all, it is the excessive marketing expenses and transportation costs of vertical e-commerce in the process of competition and development. Secondly, vertical e-commerce that is vertical but not straight cannot withstand the squeeze from comprehensive e-commerce giants.

Vertical industries mostly refer to the e-commerce industry.

Vertical Portal" is the relative Yahoo! As far as such a traditional portal is concerned, Yahoo! The content of the links is extensive and comprehensive, covering all walks of life, while the "vertical portal" focuses on a certain field (or region) such as IT, entertainment, and sports, and strives to become the first stop for people who care about the content of a certain field (or region) to go online.

The characteristic of vertical ** is single-mindedness. They don't pursue the big picture, they only do what they are familiar with. They are the authorities and experts in their respective industries, and their means of attracting customers is to be more professional, more authoritative, and more exciting.

They also advertise themselves, but they know the industry too well. With just a lot of effort, you can let customers know: ** has opened a new column again, and launched new products.

And the vertical ** customer is not an ordinary customer. They are basically consumers in the industry. The purchasing power of each customer representative is many times higher than the average level of comprehensive ** customers.

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The ups and downs of life accompany every spring, summer, autumn and winter!

Vertical means that the upstream and downstream of the industry are connected. Raw materials and products are connected. Such as petrochemicals and plastics and toys. The network used to match such vertical industry cooperation and mutual benefit is your answer.

It means that when the business of industry A forms a plane, and the business of company B has only one intersection point with the vertical of industry A, it is called a vertical industry.

With the maturity of the e-commerce industry, vertical services have begun to be valued. The vertical operation of e-commerce has long been relatively mature in foreign countries. Although the largest shopping in the United States** operates a wide range of products, each product category has its own professional team to operate independently to meet the needs of different users.

Domestic vertical e-commerce** has sprung up like mushrooms after a rain, and e-commerce sites for outdoor products, bags, cosmetics and health care products have emerged in an endless stream, and each product line reflects the characteristics of verticalization.

Advantages of vertical e-commerce:

1. Convenience of business operation.

Provide complete e-commerce solutions for merchants, convenient store and product management, provide ERP, SCM, CRM and other system support, merchants can optimize product inventory through the system, and stop production of unsalable goods immediately, so that merchants can more conveniently use e-commerce systems to reduce operating costs and improve efficiency

2. Convenience of retailers.

Provide retailers with a consignment system to facilitate the operation of consignment sales, reduce costs, provide retailers with more marketing support, data analysis, consumer information, marketing tool development, etc

3. Convenience of operation for buyers.

Due to the concentration of merchants, the cost-effective standardized display of various brand products, the perfect payment system, the buyer's multi-product procurement is easy and convenient, and the logistics is instant and convenient

4. Advantages of convenience for consumers.

The vertical platform can accurately match the needs of customers before sales, accurately introduce the consumers in demand for marketing promotion, and cooperate with merchants to do various marketing activities for consumers The vertical platform achieves accurate and segmented display in product display classification, search, and segmented display, which meets consumer needs, eliminates duplicate distribution and misplaced goods, and the payment process is smooth After-sales refund and complaint judgment is more professional, dispute handling is easier, and it will be easier to serve customers and reduce disputes if there is a physical store to check

Perpendicular in mathematics is defined as: at right angles to a given line or plane. Therefore, when industry A forms a plane, and company B has only one intersection point with industry A, it is called a vertical industry.

For example, China Chemical Network is based on the chemical industry to establish a strong network information station. Vertical industries mostly refer to the e-commerce industry.

Chinese name vertical industry.

Relatively. yahoo

Interpretation. A given line or plane is at right angles.

Type. Web information station.

How do you explain this in the vertical industry? This explanation is more complicated, and there is no popular point at all.

Vertical industries: For example, JD.com, they do all categories, that is, they sell everything. Compared with JD.com, platforms such as honey buds, which only do maternal and child products, are considered vertical industries.

Because they develop products for the needs of a certain industry. And if it is further divided, even if it is only a children's market, it can be regarded as a vertical industry and so on. You can do a more detailed breakdown.