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There are several marketing systems at the core structure of any business. Traditionally, most companies are based on a vertical marketing system. Franchising companies are considered one of the most common forms of Contractual Vertical Marketing Systems.
A vertical marketing system (VMS) refers to one in which the members of the distribution channel - wholesales, producer, and retailer - work together to meet consumer needs. A company that works with a vertical marketing system could be Campbell's Soup working directly with the producers, the wholesalers, and later on the retailers that carry their products.
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