Vertical Marketing

Vertical marketing - If a manufacturer sells his products indirectly, he basically has two customer groups or customer levels:

  • Intermediate buyers (intermediaries, dealers, direct customers)
  • End users (consumers, users, indirect customers)

Some manufacturers orient their behavior primarily to the final stage, ie to the needs and wishes of the consumer. In this case, marketing is seen as the conscious cultivation of manufacturer-consumer relationships. The sales intermediaries are only viewed as distributors of goods. However, this understanding of roles does not correspond to the current market conditions. Due to the concentration in retail, its market power has risen sharply.

The trade no longer sees itself merely as a distribution apparatus for industry, but as an independent designer of the market. The sales intermediaries should therefore be considered in the marketing concepts of the industry as partners with their own goals and strategies. The marketing of manufacturers and dealers must therefore be networked. The conscious design and maintenance of the relationships between manufacturers and retailers are the subject of vertical marketing. Vertical marketing comprises three areas:

The goals in vertical marketing primarily include the question of how the functions and margins should be divided between manufacturers and retailers. It should be noted that the goals of the two sides often diverge.

Because of the competing goals, it is difficult to harmonize the cooperation between industry and trade.

Die Strategien im vertikalen Marketing betreffen z. B. die Frage, wie die Händler und Endabnehmer zum Kaufen stimuliert werden sollen. Hersteller von Markenartikeln verfolgen z. B. die Präferenzstrategie und Pull-Strategie, während manche Händler die Preis-Mengen-Strategie und Push-Strategie bevorzugen. In einem Marketing concept muss versucht werden, die Strategien der Marktpartner aufeinander abzustimmen.

As part of the marketing mix, the product policy, service policy, logistics as well as the conditions and communication policy towards retailers are to be defined. In the past, vertical marketing has often focused on structuring the terms. In the interests of good cooperation, however, an attempt must be made to optimize the entire marketing mix in relation to trade.

Conflicts between industry and trade will always exist. The question that arises is how these can be handled and reduced. Contract marketing and key account management offer practicable options for this.

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