What does it consist of and what are the Types of Vertical and Horizontal Marketing Systems?

After knowing what the basic principles of digital marketing are, you can see yourself interested in the vertical and horizontal marketing systems.

Possibly, you have not noticed, but daily you enjoy and you see a lot of examples of horizontal marketing systems.

One of the most outstanding is the creation of “Powerade” by the Coca-Cola companyIn this way, the new division with new products can attract new consumers.

On the other hand, it has also been seen as large companies, for example MattelThey have bought others that market the same type of products, in this way, they close their competition a bit and become stronger.

As for the examples of vertical marketing systems, we can speak again of Coca-Cola, which throughout its history has bought bottling companies to reduce costs. (This is also called inverted vertical marketing).

With these brief examples, you have an appetizer so that together with the most powerful marketing tools, your business may arise.

Vertical marketing system and its types

Just as it is important to develop a business marketing strategy plan, it is important to know the three types of vertical marketing. Here we explain what the vertical marketing system consists of.

Let’s first define the managed marketing systemThis type of vertical marketing is carried out by an individual or company, who has power in both distribution and production.

An example of this system are supermarkets, which can influence manufacturers on how they should make their products, so that they can then put them on their shelves.

Possibly the most common system is the contractual, where large companies offer their licenses to small investors so that they can form, for example, their own franchise. The best example are fast food companies like McDonald’s or KFC.

The corporate digital marketing system, as its name implies, it represents large corporations that can carry out the entire process of producing a product on their own, up to its distribution.

papers and cell phone for horizontal marketing

Companies like Apple, are part of this corporate system, that is, they themselves produce and distribute their devices in official stores.

Horizontal marketing system and its types

In itself, there are not several types of horizontal marketing, in reality, this type of marketing generalizes a set of strategies that can benefit two or more companies, whether small or large and regardless of the market in which they specialize.

They can stand out, however, three types of alliances made in horizontal marketing. The first one, the union of two or more manufacturers, in this case the idea is to exploit the resources of both and achieve a greater reach of consumers.

In the same way, two large wholesalers can join together to expand the distribution area of ​​their products, or finally, two retailers to vary and increase your stock.

Coordination strategies for horizontal systems, they include alliances between companies. These can be done directly from CEO to CEO, or, instead, by the person in charge of human resources.

However, this type of alliances It can be created by the incentive of an employee (regardless of whether they have a certain rank or not).

What marketing should I apply in my business?

Having understood the horizontal system, as well as the importance of digital marketing today, let’s continue to understand what type of marketing is the ideal for your new venture.

place one in horizontal marketing

Big companies like Apple don’t just use a type of marketingInstead, they can vary over time and depending on needs.

In fact, marketing specialists, highlight the importance of knowing in the first place, which is the right marketing according to your objective. For example, if you need to reach more places or people, the ideal would be to team up with someone in a horizontal marketing system.

Instead, if what you need is reduce costs, you can opt for an inverted vertical marketing system, just like CocaCola has done with the bottlers.

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On the other hand, if your venture is based on the sale of products that are manufactured by yourself, you do not necessarily have to have a large company to take advantage of low costs of corporate vertical marketing.

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