Definition

Administered VMS

Administered VMS is a vertical marketing system that coordinates successive stages of production and distribution through the size and power of one of the parties.  

In an administered VMS, leadership is assumed not through common ownership or contractual ties but through the size and power of one or a few dominant channel members. Manufacturers of a top brand can obtain strong trade cooperation and support from resellers regarding displays, shelf space, promotions, and price policies. In turn, large retailers such as Wal-Mart, Home Depot, and Barnes & Noble can exert strong influence on the many manufacturers that supply the products they sell.


Administered VMS allows a marketing channel in which independent organization use informal coordination, generally dominated by one large and powerful channel organization.

Share it:  Cite

More from this Section

  • Opinion leader
    A people within a reference group who, because of special skills, knowledge, personality, ...
  • Product Mix Pricing Strategy
    Product Mix Pricing Strategy is the strategy for setting a product’s price often has ...
  • Point-of-purchase displays
    Point-of-purchase displays refers promotional devices that are placed where sales transactions ...
  • Government market
    Governmental units – federal, state, and local – that purchase or rent goods and services ...
  • Shares
    A shares are ordinary shares with limited voting rights or no right to vote at all. A ...