Vertical IntegrationFeedback.png


Definition

Vertical integration is the combination of two or more separate stages in the channel of distribution through ownership, including mergers or acquisitions (i.e., the expansion of a business by acquiring or developing businesses engaged in earlier or later stages of marketing a product). In forward vertical integration, manufacturers might acquire or develop wholesaling and retailing activities. In backward vertical integration, retailers might develop their own wholesaling or manufacturing capabilities.[1]

References

  1. ^ American Marketing Association. AMA Dictionary.

NewComment.png
We welcome comments that will help us improve the precision and clarity of our definitions. To submit a suggestion, please click on the Add Discussion bar below.
Notes:
  • Comments are limited to registered users of this site. Click “Join” at the top right hand side of this page to apply.
  • If you would like to suggest a new marketing definition or have a general comment, please visit our home page.