A horizontal marketing system is when two or more companies at the same level in the supply chain join together for marketing purposes to take advantage of new opportunities. It combines the financial, production, and marketing resources of the partner companies with the goal of increasing customer base without increasing marketing budgets. Some benefits include reduced costs through bulk purchasing negotiations, utilizing each other's knowledge and solutions, and reducing waste. However, disadvantages can include reduced flexibility and failing to create value if synergies do not materialize despite implementation costs. Examples given are banks placing ATMs at supermarkets and manufacturers combining operations to meet large retailer demands.

1. HORIZONTAL
MARKETTING
SYSTEM

2. 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.

3. Based on this turbulent
external business environment,
companies need to come up
with innovative and creative
solution in order to maintain
the high level of awareness in
front of their customers

4. The concept of HMS is based
on a combination of three
factors,
1.FINANCIAL
2.PRODUCTION
3.MARKETING RESOURCES

5. The HMS approach mainly two
or more companies which are
focusing to increase the
CUSTOMER BASE, without
actually increase the marketing
budget

6. One company realizes there is an
opportunity to partner with another
company in order to bring a new product
to the market. The companies that form
the partnership must enhancement in
some way to the process of marketing the
product and presenting it to a larger
audience, such as in the areas of
production, distribution and marketing.

7. This type of marketing allow to:
1. Reduce cost- cooperating with other company helps
to negotiate better prices of materials or any
components high are needed in production process.
2. Better utilize resources- Using knowledge and
solutions of our partner provide us to create better
product and helps us to avoid mistakes and
problems.
3. Avoid waste- There is a possibility that or partner
will use materials to product different goods and it
help to reduce cost

8. Advantages of HMS
1.Increase Market Share
2.Bigger base of Customers
3.Increased Revenue
4.Reducing Competition
5.Reducing other production
costs

9. DISADVANTAGE 0F HMS
1.Stunning economic growth of the new
enterprise
2.Reduce flexibility happens because the
company is now a longer organization . The
addition of more personnel and process means
the need for more transparency .
3.Destroying value rather than creating it
happens because the synergies never
materialize despite the costs of the horizontal
marketing system

10. EXAMPLES

13. A bank and a supermarket agree to have the bank’s
ATMs located at the supermarket’s locations; two
manufacturers combining to achieve economies of
scale otherwise not possible with each acting alone to
meet the needs and demands of a very large retailer;
or two wholesalers joining together to serve a
particular region at a certain time of year.
OTHER EXAMPLE