Question: What is the major difference between a conventional distribution channel and a vertical marketing system? What is the major difference between a conventional distribution channel
What is the major difference between a conventional distribution channel and a vertical marketing system?
What is the major difference between a conventional distribution channel and a vertical marketing system?
Elements in a conventional distribution channel act as separate businesses whereas the elements in a vertical marketing system act as a unified system.
A vertical marketing system has many intermediaries whereas a conventional distribution channel has a limited number of intermediaries.
A vertical marketing system is characterized by an independent producer whereas a conventional distribution channel is characterized by multiple producers.
A conventional distribution channel has elements such as retailers and wholesalers whereas these elements are not present in a vertical marketing system.
Producers have complete control over the other members in a conventional distribution channel whereas this control is minimal in a vertical marketing system.
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