What are the advantages and disadvantages of the vertical marketing system?

The

vertical marketing system occurs when the same company or business own production, wholesale and retail part of the product sales. This type of marketing system, as is the case with any type of marketing system, has its advantages and disadvantages. The main advantage is the big picture that the company has for the entire marketing process. The primary disadvantage is that there may be too much responsibility for one society to take over the shoulders.

An example of the vertical marketing system is Auto Parts. The company can buy or own a production plant that creates part and retail stores that sell parts. In this type of vertical marketing system, Auto Parts would also be a wholesaler, as it would distribute automatic parts from the production plant to the retail store. Because the accompaniment has complete control of the trade, business also maintains a complete or overall picture of the marketing system from start to finish. In view ofThe fact that the company has a great view of the picture can go on problems before they become problems or quickly respond to problems when they occur. Overall, this allows the company to be much more efficient than if each processes were separate.

Connection to the vertical marketing system, which means that it is involved in all aspects of business can also be the fall or main disadvantage of the system. Responsibility for and complete control over each step of the vertical marketing system can be traded.

in some cases creates inefficiency. This is because the company must manage any aspect of business without necessarily becoming a master or expert in one or more processes in the system. For example, business can be really good in the production of automatic parts, but does not understand and does not know how to effectively and efficiently sell parts to retail customers. They can instead of theseTypes of business need a wholesale company as its buffer to actually work.