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Vertical Marketing System is a distribution channel structure in which producers, intermediaries and retailers agree to act as one to serve their agreed-upon target segment(s). There is clear value in having a single source of expertise that can provide an end-to-end, fully reliable, fully integrated solution which is also forward, backward and horizontally compatible with its current and emerging technology standards. A Vertical Solutions Marketing (VSM) approach has the potential to increase market share within the target segments, and total revenues, profit margins and customer loyalty, compared to the more traditional approach.
The transition to an ideal vertical solutions marketing organization cannot be accomplished in one step. Here are some of the best practices that need to be followed to do so:
Develop the strategic paths for your company’s technology or capabilities, products and services, and market segments or chains
Encourage the building of trusting relationships across the key businesses
Trust and trustworthiness have a great impact on vertical solutions marketing systems. Trust is based on the overall relationship rather than individual episodes of behaviour. Best relationships emerge based on satisfactory performance over time.
Build a strong team-selling model
Given the complexity of industrial services, team selling is required. Participation of commercial, quality specialists is necessary, and so is the integration of diverse types of expertise. Customers therefore want a flexible supplier of services with a complete and transparent organization.
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