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Vertical and Horizontal        Marketing SystemPresented by:Priya Soni              Free Powerpoint TemplatesE-mail: priya...
Vertical Marketing system A vertical marketing system (VMS) is one in which the main members of a distribution channel - p...
Vertical Marketing system    Free Powerpoint Templates                                Page 3
Advantages of VMS• Eliminate competition and conflict• A centralized management has direct  control over all aspects of th...
Disadvantages of VMS• Employees at the bottom of a vertical structure  may feel less valued than those higher up in  the c...
Horizontal Marketing system Horizontal Marketing System is a merger of firms on the same level in order to pursue marketin...
Horizontal Marketing system    Free Powerpoint Templates                                Page 7
Advantages of HMS •Employees may attain greater satisfaction in ahorizontal structure due to greater freedom andautonomy.•...
Disadvantages of HMS• The decentralized structure could lead to a  "loose ship," as the team and project leaders  have hig...
Free Powerpoint Templates                            Page 10
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Vertical and horizontal system

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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.
Horizontal Marketing System is a merger of firms on the same level in order to pursue marketing opportunities.
By working together, companies can combine their capital, production capabilities, or marketing resources to accomplish more than any one company could alone.

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Vertical and horizontal system

  1. 1. Vertical and Horizontal Marketing SystemPresented by:Priya Soni Free Powerpoint TemplatesE-mail: priyasoni.9189@gmail.com Page 1
  2. 2. Vertical Marketing system 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. Vertical marketing systems can take several forms : •Corporate VMS •Administered VMS •Contractual VMS Free Powerpoint Templates Page 2
  3. 3. Vertical Marketing system Free Powerpoint Templates Page 3
  4. 4. Advantages of VMS• Eliminate competition and conflict• A centralized management has direct control over all aspects of the business• Provide clear lines of authority and a tight span of control as a company can control all of the elements of producing and selling a product, which can lead to high operating efficiency. Free Powerpoint Templates Page 4
  5. 5. Disadvantages of VMS• Employees at the bottom of a vertical structure may feel less valued than those higher up in the chain.• It can also take a great deal of time for top management decisions to filter down through multiple layers, reducing the organizations ability to react quickly to a rapidly changing business climate.• Because of the centralized control of power, weak leadership at the top can hamper the effectiveness of the entire organization. Free Powerpoint Templates Page 5
  6. 6. Horizontal Marketing system Horizontal Marketing System is a merger of firms on the same level in order to pursue marketing opportunities. By working together, companies can combine their capital, production capabilities, or marketing resources to accomplish more than any one company could alone. Companies might join forces with competitors or non-competitors. They might work with each other on a temporary or permanent basis, or they may create a separate company. Free Powerpoint Templates Page 6
  7. 7. Horizontal Marketing system Free Powerpoint Templates Page 7
  8. 8. Advantages of HMS •Employees may attain greater satisfaction in ahorizontal structure due to greater freedom andautonomy.•The use of cross-function teams can also lead to highlevels of cooperation throughout the organization.•The heavy emphasis on innovation can lead to betterideas that keep the organization ahead of thecompetition.•The absence of multiple structural layers providesstreamlined communication and reporting processes,making the organization more flexible and adaptableto change. Free Powerpoint Templates Page 8
  9. 9. Disadvantages of HMS• The decentralized structure could lead to a "loose ship," as the team and project leaders have high levels of responsibility for achieving results but little real authority over their team members.• A resulting lack of control can lead to finger- pointing when things go awry, which can hinder productivity.• Organizations attempting to convert from a vertical to a horizontal structure can face challenges, as management needs to adjust to a less authoritarian and a more peer-like relationship with subordinates. Free Powerpoint Templates Page 9
  10. 10. Free Powerpoint Templates Page 10

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