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Vertical Marketing Systems

In: Business and Management

Submitted By hitnrun10
Words 306
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Which type of vertical marketing system does Zara employ? List all the benefits that Zara receives by having adopted this system. Zara employs a Corporate Vertical Marketing System. Zara has managed to build a system that is controlled from a single place and that it allows it for quick response, decision and problem solving. Because Zara’s parent company Inditex owns most of the resources needed for the process of clothing design, production and distribution it is able to “control most every aspect of the supply chain, from design and production to its own worldwide distribution network” (Armstrong & Kotler).
Vertical Marketing System
Introduction
In an organization, effective marketing strategies play an important role in boosting the performance of the business. In the integration of the corporate leaders in pursuit of their financial objectives, the creation of marketing system has been established. The creation of vertical marketing system is introduced and defined as a distributing channel in which the manufacturer, wholesaler, and retailer act as a single system. An organization that can control the product and services until it reached to the end consumers is the plain example of vertical marketing system. Apparently only few of the businesses around the world successfully managed this type of system. It may define as a difficult approach to maintain the sales and effectiveness but it serves as the strongest point of the organization to boost the various areas within the organization.
Zara System One of the successful organizations that use the vertical marketing system (VMS) is Zara which have a distinctive feature of business model. With the aid of the vertical integration, the company is allowed to develop the strong merchandising strategy that continuously led the Zara to create the opportunities particularly in the fast-fashion...

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