Contractual Vertical Marketing SystemFeedback.png


Definition

  1. (retailing definition) A form of vertical marketing system in which independent firms at different levels in the channel operate contractually to obtain the economies and market impacts that could not be obtained by unilateral action. Under this system, the identity of the individual firm and its autonomy of operation remain intact.
  2. (channels of distribution definition) A marketing channel that achieves vertical coordination between independent firms at different channel levels through the use of contractual agreements. The three principal types of contractual systems are franchise system, retailer sponsored cooperative, and wholesaler-sponsored cooperative.[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 are not a registered user, and you have a suggestion, please email registrar@themasb.org.
  • If you would like to suggest a new marketing definition or have a general comment, please visit our home page.
If you are not a registered user, and you have a suggestion for a new term or a comment on an existing term, please emailregistrar@themasb.org.