The difference between conventional marketing channel and verticle marketing system?

Conventional

marketing channel have been loose connections of independent

companies, each showing little concern for overall channel

performance. They have lacked strong leadership and have been

troubled by damaging conflict and poor performance. A conventional

marketing channel consists of one or more independent producers,

wholesalers and retailers. Each is a separated business seeking to

maximise its own profits, even at the expense of profits for the

network as a whole. No channel members has much control over the

other members, and no formal means exist for assigning roles and

resolving channel conflict.

Vertical marketing

network VMN

A distribution

channel structure in which producers, wholesalers and retailers act

as a unified network - either one channel member owns the others,

has contracts with them, or wield so much power that they all

cooperate.