Professional Documents
Culture Documents
i) Horizontal Conflict
- Occurs among same level of channel
-Happens when one distribution channel offers lower
prices than the other members
- Eg: Retailer to retailer, wholesaler to wholesaler.
ii) Vertical Conflict
- Occurs among different levels of same channel.
- Goals of manufactures maybe in conflict with that of
distributors
- Eg: Retailer to wholesaler, Producer to Retailer
iii) Multi-Channel Conflict
- Exist when the manufacturer has established two or
more channels to sell to same market.
- Eg: Newspaper industry
VERTICAL MARKETING SYSTEM
● Vertical Marketing Systems (VMS)- Channel members
act as a unified system.
● Here, one channel members-
- owns the others
- has contracts with them or
- use so much power that they all cooperate.
● Such systems occur to control channel behavior and
manage channel conflict.
CMS vs VMS
ADVANTAGES OF VMS