Consumer Behavior
...is a country of diverse cultures and so is its Marketing System. There exist several types of marketing systems, out of which four types of system organizations, namely, the horizontal marketing system, the vertical marketing network, the direct marketing system and the network marketing system are most prevalent in India.
Horizontal Marketing System refers to joining of two or more corporations on the same level for the purposes of pursuing a new marketing opportunity. Usually a horizontal marketing system is established so that the individual members can combine resources to make the most out of the marketing situation. Products from each member can be marketed and/or distributed together, such as a bottle manufacturer combining with a producer of dehydrated salad dressing preparations. The two products are marketed together, allowing the two companies to combine their marketing resources and accomplish much more than either one might accomplish alone. Corporations in a horizontal marketing system also have the option of combining their capital and production capabilities, in addition to their marketing and distribution resources, to produce synergistic benefits for all members.
Vertical Marketing System refers to joining producers, wholesalers, and retailers in the production and distribution of products. There are three major types of vertical marketing systems, and each uses different means for setting up leadership and power in the system: (1) corporate, where coordination and conflict management are attained by common ownership; (2) contractual, where coordination and conflict management are attained through contractual agreements among members of the system; (3) administered, where leadership is assumed by one dominant system member. The purpose of a vertical marketing system is to eliminate conflicts arising from each company's pursuit of its own...
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