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The Difference Between

The difference between conventional marketing channel and verticle marketing system?


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Conventional marketing channel have been loose connections of independent companies, each showing little concern for overall channel performance. They have lacked strong leadership and have been troubled by damaging conflict and poor performance. A conventional marketing channel consists of one or more independent producers, wholesalers and retailers. Each is a separated business seeking to maximise its own profits, even at the expense of profits for the network as a whole. No channel members has much control over the other members, and no formal means exist for assigning roles and resolving channel conflict.

Vertical marketing network VMN

A distribution channel structure in which producers, wholesalers and retailers act as a unified network - either one channel member owns the others, has contracts with them, or wield so much power that they all cooperate.