A vertical marketing system consists of producers, wholesalers, and retailers working together as a unified group to meet consumer needs. A horizontal marketing system involves two or more organizations at the same level joining together for marketing purposes. Retailing involves selling goods and services directly to final consumers, and can take the form of specialty stores, department stores, supermarkets, or convenience stores. Wholesaling involves selling goods and services to buyers who will resell or use them in a business; wholesalers perform functions like selling, warehousing, transportation, financing, and providing market information.

2.  Those people or organization involved
 in the process of supplying products and
services
 from the producers to the ultimate
consumers.

3.  Vertical Marketing systems
 Horizontal Marketing systems

4. It consists of producers, wholesalers, and
retailers.
One channel member owns other members, and
keeps contracts with them.
Any player – producer, wholesaler, or retailer can
dominate in this system

5.  A vertical marketing system (VMS) is one
in which the main members of a distribution
channel—producer, wholesaler, and retailer—
work together as a unified group in order to
meet consumer needs.

6.  In this system two or more companies can join
together in the business.
 These companies can join their financial,
production, or marketing resources in the
business.
 A horizontal marketing system is a
distribution channel arrangement whereby two
or more organizations at the same level join
together for marketing purposes to capitalize
on a new opportunity.

7.  Retailing and Wholesaling
 Telemarketing
 Vending machines, Kiosks, and Carts
 Direct Selling
 Direct Marketing

8.  Involved in selling goods and services directly
to final consumers for their personal or non-
business use.

9. Specialty Stores
Department Stores
Supermarket
Convenience Store

10.  Specialty stores:
 Retail store that carry a narrow product
line with many varieties such as furniture
stores, book stores and garment stores.

11.  Retail organization that carries a wide
variety of product line like clothing,
furniture and house hold goods.
 Each line is operated as a separate
department.

12.  Supermarket:
 A relatively large, low cost, low margin, high
volume, self-service operation designed to
serve the consumers total needs for food and
house hold products.

13.  Convenience store:
 They are relatively small stores located near
residential areas, open long hours, selling
convenience products slightly at higher price.

14.  Involved in selling goods and
services to those buying for resale
or business use.

15. Selling and Promoting
 Warehousing
Transportation
Financing
Market Information

16.  Selling and promoting: - Wholesalers
sales force help manufacturers reach
many small customers at low cost.

17.  Warehousing: Wholesalers hold inventories,
thereby reducing inventory cost and risk of
suppliers and customers.

18.  Transportation: wholesalers can provide
quicker delivery to the buyers because as they
are closer to the producers they will have good
relation with them.

19.  Financing: Wholesalers finance their
customers by giving credit and they finance
their suppliers by paying bills on time.

20.  Market information: Wholesalers give
information to producers and customers about
competitors, new products and price
developments.

21.  Merchant Wholesalers
 Independently-owned business that takes
ownership of the product they handle.
 Include full-service wholesalers and limited
wholesalers.

23.  E-Tailing
 Telemarketing
 Vending machines, Kiosks, and Carts.

24. E-Tailing is another step in the evolution of
retailing away from traditional stores to non store
retailing.
E-TAILING means selling goods and services to
ultimate consumers over the Internet.

26.  Sale of goods and services by telephone.
 One of the fastest growing areas in marketing.

27. Kiosk-small stores inside big stores
The benefit of vending machines is their
convenient location.
Carts and Kiosks have lower costs than
physical stores, so they can offer lower
prices.

28.  Selling to consumers in
 their homes or where they work.

29.  Includes any marketing activity that directly
links manufacturers or intermediaries with
the ultimate consumer.