Question

Example of vertical conflict between intermediary channels is

Answer 1

Answer:

A vertical marketing system (VMS) is one in which the main members of a distribution channel—producer, wholesaler, and retailer—work together as a unified group in order to meet consumer needs.

Answer 2

VERTICAL CONFLICT BETWEEN INTERMEDIARY CHANNELS

Vertical conflicts between intermediary channels is a conflict between WHOLESALER AND RETAILER

MANAGEMENT OF CHANNEL CONFLICTS:

* The Channel Conflict occurs when channel partners such as the manufacturer, wholesaler, distributor, retailer, and others fight for the same brand's shared sale.

* Diverse participants in the distribution route have different aims that may or may not be compatible, resulting in conflict.

* For example, the manufacturer wants to gain a larger market share by using a market penetration strategy, which involves selling a product at a low price and profiting in the long run, whereas the dealer wants to sell the product at a high price, which is known as a market skimming strategy, and profit hugely in the short term.

* The process of distribution of goods and services for the producer is carried out by intermediaries such as wholesalers, distributors, retailers, and so on. And, if the manufacturer makes any changes to the pricing, product, or marketing activity, the changes must be applied immediately, demonstrating the high level of reliance on the manufacturer by intermediaries.