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Definition

Vertical marketing system (VMS)

Vertical marketing system (VMS) is a distribution channel structure in which producers, wholesalers, and retailers act as a unified system. One channel member owns the others, has contracts with them, or wields so much power that they must all cooperate. The VMS can be dominated by the producer, the wholesaler, or the retailer.


A planned marketing channel in which all intermediaries are under one manager (a single channel member) to improve distribution.

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