Explain the key differences between a conventional marketing channel and a vertical marketing system.

Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
Section: Chapter Questions
Problem 1.1DQ
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Explain the key differences between a conventional marketing channel and a vertical marketing system.
Control of the Supply Chain
• Conventional marketing channel: Each
channel member is:
• Loosely aligned with the others and takes a short
term orientation
• Vertical marketing channels
•Capital-intensive networks of several levels
• Professionally managed and centrally
programmed to:
Realize the technological, managerial, and promotional
economies of long-term relationships
LO 2
Transcribed Image Text:Control of the Supply Chain • Conventional marketing channel: Each channel member is: • Loosely aligned with the others and takes a short term orientation • Vertical marketing channels •Capital-intensive networks of several levels • Professionally managed and centrally programmed to: Realize the technological, managerial, and promotional economies of long-term relationships LO 2
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