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Contractual VMS

This article covers meaning & overview of Contractual VMS from marketing perspective

Published by MBA Skool Team in Marketing and Strategy Terms Last Updated: August 11, 2023Read time:

What is Contractual VMS?

It is a type of Vertical Marketing Systems (VMS), a category of integrated distribution channel system.

In VMS, the producer, wholesaler and retailer act as a unified system. This is generally achieved by having one player owning all three levels of distribution. The producer can also obtain channel control by having its own franchisees playing the role of different channel players like retailer.

 

Vertical Marketing System

Contractual VMS is a channel system formed by individual firms operating as different channel players, integrating their operations on contractual basis. This helps each of the players to achieve economies of scale by integrating their operations. Hence, they are also called “Value- adding partnerships”.

 

 

This article has been researched & authored by the Business Concepts Team which comprises of MBA students, management professionals, and industry experts. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

Browse the definition and meaning of more similar terms. The Management Dictionary covers over 1800 business concepts from 5 categories.

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