After knowing what the basic principles of digital marketing are , you may find yourself interested in vertical and horizontal marketing systems.
You may not have noticed, but every day you enjoy and observe a large number of examples of horizontal marketing systems.
One of the most outstanding is the creation of “Powerade” by the Coca-Cola company , in this way, the new division with new products can attract new consumers.
On the other hand, it has also been seen that large companies, for example Mattel , 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 reverse vertical marketing .)
With these brief examples, you have a snack so that together with the most powerful marketing tools , your business can emerge.
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 system , this type of vertical marketing is carried out by an individual or company, who has power both in distribution and in production.
An example of this system are supermarkets , which can influence manufacturers on how they should make their products, and then be able to place them on their shelves.
Possibly the most common system is the contractual one , 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, represents large corporations that can carry out on their own the entire process of producing a product up to its distribution.
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.
However, three types of alliances made in horizontal marketing can be highlighted . 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 to expand the distribution area of their products, or finally, two retailers to vary and increase their stock.
Coordination strategies for horizontal systems 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 alliance 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 ideal for your new venture.
Large companies like Apple do not use only one type of marketing , instead, they can vary over time and depending on the needs.
In fact, marketers 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.
On the other hand, if what you need is to reduce costs , you can opt for an inverted vertical marketing system, just as CocaCola has done with the bottlers.
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 the low costs of corporate vertical marketing.
