Traditional marketing systems. Vertical marketing. Marketing approach to the formation of pricing policy on the example of MAGIC auto service

1. Marketing strategy pricing

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2. Marketing approach to pricing (2)

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4. Marketing approach to the formation of pricing policy on the example of MAGIC auto service

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What is the reason why the manufacturer transfers a share of the work in the sale of goods to intermediaries? One of the modern ways of working with intermediaries.

For what reason does the manufacturer agree to transfer a significant share of the work in the sale of goods to intermediaries, since the situation is not controlled by the manufacturer himself?

Actually, the question already contains the answer, tk. not always the one who produces a product or service knows how best to sell it. You may be a genius author, but if you cannot sell your book, you are nobody to the people around you. Likewise in other areas, the use of intermediaries - who have a specific goal and interest in increasing sales, allows the manufacturer to stay focused on specialization.

One of the modern ways of working with intermediaries is vertical marketing systems... We will explain in more detail the essence of this distribution / distribution channel below.

A distribution channel is a collection of firms or individuals who take over or help transfer ownership of a particular product or service to someone else on their journey from producer to consumer.

Why are intermediaries needed?

Why is the manufacturer ready to shift part of the sales work to intermediaries? After all, this means that he, to some extent, loses control over how and to whom the goods are sold. And yet manufacturers believe that there are benefits to using intermediaries.

1. Many manufacturers lack the financial resources to carry out direct marketing. For example, even the largest automakers sell their vehicles through tens of thousands of independent dealers. Even the auto monsters would have a hard time finding the money to buy out all these dealerships.
2. In order to achieve a mass distribution system economically through direct marketing, many manufacturers would need to become intermediaries in the sale of goods from other manufacturers. For example, gum manufacturers would find it impractical to open small shops around the world to sell their wares, or to sell their gum to salesmen or mail order. They would have to sell chewing gum along with many other little things, which would eventually turn them into the owner of either a supermarket chain or a grocery store chain. So, these firms find it much easier for them to operate through a large network of independent retailers and wholesalers.
3. But even if a manufacturer can afford to create its own distribution channels, in many cases it will earn more if it increases capital investment in its core business. If manufacturing provides a 20% rate of return, and retailing is estimated to yield only 10%, the firm will not want to do retail on its own.
4. The use of intermediaries is largely due to their unrivaled efficiency in making the product widely available and in bringing it to target markets. Through their contacts, experience, specialization and breadth of activity, intermediaries offer the firm more than it can usually do alone.

Distribution channel functions.

Distribution channel Is the path that goods move from producers to consumers. It eliminates long-term gaps in time, place and ownership that separate goods and services from those who would like to use them. Distribution channel members perform a number of very important functions:

1. Research. Gathering the information you need to plan and facilitate the exchange.
2. Sales promotion. Creation and distribution of communications about the product.
3. Establishing contacts. Establishing and maintaining communication with potential buyers.
4. Product adaptation. Adjustment of goods to the requirements of buyers. This applies to activities such as production, sorting, assembly and packaging.
5. Conduct of negotiations. Attempts to agree on prices and other conditions for the subsequent implementation of the act of transfer of ownership or possession.
6. Organization of commodity circulation. Transportation and storage of goods.
7. Financing. Finding and using funds to cover the costs of the operation of the channel.
8. Risk taking. Acceptance of responsibility for the functioning of the channel.

The performance of the first five functions contributes to the conclusion of transactions, and the remaining three - to the completion of already concluded transactions. The question is not whether these functions need to be performed - necessary and necessary - but rather, who should perform them. All of these functions share three things in common: they consume scarce resources, can often be better performed by specialization, and can be performed by different channel members. If the manufacturer fulfills some of them, then his costs increase accordingly, which means that prices should be higher. When some of the functions are transferred to intermediaries, the costs, and hence the producer's prices, are lower. The intermediaries in this case must charge additional fees to cover their costs of organizing the work. The question of who should perform the various functions inherent in a channel is essentially a question of relative performance and effectiveness. If it becomes possible to perform functions more efficiently, the channel will be rebuilt accordingly.

The number of distribution channel levels.

Distribution channels can be characterized by the number of their constituent levels. The level of the distribution channel is any intermediary who performs one or another work to bring the product and ownership of it closer to the end customer. Since some work is done by both the manufacturer and the end user, they are also part of any channel.

• A zero-level channel (also called a direct marketing channel) consists of a manufacturer selling a product directly to consumers. The three main methods of direct selling are by delivery, mail order and manufacturer-owned stores.
• A sibling channel includes one intermediary. In consumer markets, this intermediary is usually a retailer, and in industrial markets it is often a sales agent or broker.
• The duplex channel includes two intermediaries. In consumer markets, these intermediaries are usually wholesalers and retailers; in industrial markets, they can be industrial distributors and dealers.
• The three-level channel includes three intermediaries. For example, in the meat processing industry, there is usually a small wholesaler between the wholesaler and the retailer. Small wholesalers buy goods from large wholesalers and resell them to small retailers that are usually not served by large wholesalers.

There are channels with many levels, but they are less common. From the point of view of manufacturers, the more levels a distribution channel has, the less control it has.

The concept of distribution channels does not only involve the distribution of physical goods. Service and idea producers also face the challenge of making their offerings accessible to their target audiences. To do this, they create “knowledge dissemination systems,” “health care systems,” and the like. To reach a widely dispersed audience, they need to consider both the nature and location of their dealerships.

Service enterprises must create their own distribution systems, corresponding to the characteristics of their services, since, unlike most goods, services are unique or require specific distribution.

The proliferation of vertical marketing systems (VMS).

One of the most significant developments in recent years has been the emergence of vertical marketing systems that challenge traditional distribution channels. A typical traditional distribution channel consists of an independent manufacturer, one or more wholesalers, and one or more retailers. Each channel member is a separate enterprise striving to secure the maximum possible profits, even to the detriment of the maximum profit of the system as a whole. None of the channel members has full or sufficiently complete control over the activities of the rest of the participants.

Vertical Marketing System (VMS) on the contrary, it consists of a manufacturer, one or more wholesalers and one or more retailers, acting as a single system. In this case, one of the channel members either owns the others, or grants them trade privileges, or has the power to ensure their full cooperation. The dominant force in a vertical marketing system can be either the manufacturer, the wholesaler or the retailer. The Navy emerged as a means of controlling channel behavior and preventing conflicts between individual channel members pursuing their own goals. Vertical marketing systems are economical in terms of their size, have great bargaining power, and avoid duplication of effort. The Navy has become the dominant form of distribution in consumer marketing, where it already covers 64% of the total market.

Consider three main types of vertical marketing systems... Within the corporate Navy, the successive stages of production and distribution are within the same firm.

A contractual CPA is made up of contracted independent firms that coordinate their programs to jointly achieve greater savings and / or greater commercial results than could be done alone. Treaty naval forces have spread quite recently and are one of the significant phenomena in economic life. There are three types of contractual IUDs.

The planning process for a distribution system includes the following steps:

When deciding on the marketing of its goods, the company can use a chain of independent intermediaries or choose such a distribution system in which all subjects of the channel - manufacturer, wholesaler and retail trade - act as a single system, join forces with other companies of the same level or use multiple distribution channels to reach different market segments. The named options are expressed in the content of alternative distribution systems, the company can choose:

traditional system;

vertical marketing system;

horizontal marketing system;

multichannel (combined) marketing system

Traditional distribution system

The traditional system is a collection of independent companies in which each level of the distribution channel operates independently of the others in order to maximize its own profits, while ignoring the effectiveness of the channel in tsilom.

1. Producer - consumer - this is a zero-level channel. The manufacturer carries out direct marketing - he sells the product himself. With this distribution option, the manufacturing company avoids the costs of distributors, retains control over the sale of goods.

2. There are several options for direct marketing methods: selling home goods; sale of goods through stores owned by the manufacturer; telephone sales (telemarketing); sale by catalog; advertising that provides for a direct view.

3. Producer - Retailer - Consumer (sibling). This distribution channel involves the sale of goods by manufacturers to retailers, who in turn sell them to end customers (consuming). Direct deliveries of retail trade, bypassing wholesalers, become economically profitable with its enlargement.

4. Manufacturer - Wholesaler - Retailer - Consumer - A typical second-tier channel in which a manufacturer sells its product to wholesalers who resell it to retailers all over the world. This type of distribution channel is particularly cost effective for small retail stores that purchase in small quantities.

5. Manufacturer - agent - retailer - consumer. This option is acceptable in a situation where a small enterprise, instead of maintaining its own sales staff, uses industrial ag. Ghent, visiting retail stores and presenting goods at a professional level.

6 manufacturers - agent - wholesaler - retailer - consumer (three-tier channel) - companies give the right to sell goods to an agent who comes into contact with a wholesaler, who, in turn, with a retailer, receiving a commission on the sale. Companies can use the services of brokers to sell their products. Access to foreign markets can be carried out through agents and brokers.

Many companies use vertical and horizontal marketing systems that are alternative to the traditional distribution system.

Vertical Marketing Systems (VMS)

Unlike traditional distribution channels, where none of the channel participants has the authority to distribute functions and control others, vertical integrated distribution systems provide such an opportunity.

Vertical marketing systems provide for the full or partial coordination of the functions of the participants in the distribution channel in order to save on operations and increase the impact on the market. In this case, one of the participants in the channel (manufacturer, wholesaler or retailer) takes the initiative to coordinate the diy.

There are three forms of vertical coordination:

corporate vertical marketing systems;

administrative vertical marketing systems;

contractual vertical marketing systems

Corporate (integrated) vertical marketing systems (systems that are owned by companies) provide for the control of a single distribution system owner, who owns retail stores, over the entire herd of production and distribution. At the same time, the manufacturer - the owner of the channel can both control the sale of their goods and coordinate the work of retail outlets.

Administrative (controlled) vertical marketing systems are a form of integration of distribution functions that does not provide for contractual obligations and exists due to the high reputation of one of the participants in the system. In this case, the role of the leader belongs to one of the most powerful participants in the systems. At the same time, the leader receives support from sellers in the form of allocating retail space, organizing the export of goods, and the West in terms of sales promotion.

Contractual (contractual) vertical marketing systems - independent channel participants (producers or resellers) sign contracts with other intermediaries, which detail the rights and obligations of “linking participants in order to coordinate distribution functions. There are three types of contractual ones.

voluntarily created systems of retailers under the auspices of wholesalers - the wholesaler organizes a voluntary association of independent retailers, develops a program to ensure cost-effective procurement, standardize trading practices. The main goal of such associations is to create opportunities for effective competition with extensive networks of large organizations;

retailer cooperatives are associations of retailers into cooperatives. The members of the association purchase products through cooperatives, jointly organize advertising. The received profit is divided among the members of the cooperative proportionally;

franchising systems - provide for the transfer by a franchiser (manufacturer or seller) of a franchise (license) for the right to sell its products under the name of a company to channel participants (franchisees, for example, retail stores), who are often granted exclusive rights in a certain territory ..

In parallel with the development of vertical, horizontal marketing systems are developing.

Horizontal marketing systems - provide for the joining of efforts of companies of the same level. This makes sense if the pooling of capital, marketing resources, and manufacturing capacity strengthens the position of firms. P. In this case, both competing firms and firms that do not compete with each other can unite.

Combined (multichannel) marketing system provides for the use of several distribution channels to cover different market segments. For example, telemarketing (direct marketing) - for serving one market segment, a two-level channel - manufacturer - retail - for another segment too.

Distribution goals are criteria for the selection of distribution channels and are subordinate to general company and marketing goals. After setting goals, specific distribution tasks are determined, that is, the functions that have to be implemented in a specific market situation.

Step 3. Selecting the channel structure

The main decision regarding channel structure is the market coverage strategy, i.e. restrict yourself to the services of one or more intermediaries or sell through the maximum possible number of intermediaries, for aprilad, retail outlets. There are three options here:

intensive distribution;

selective (selective) distribution;

exclusive distribution on the basis of exclusivity rights

Intensive distribution involves the placement and sale of goods through the maximum possible number of outlets. Almost any retailer willing to sell a particular product gets the right to do so. These are consumer goods (toothpaste, detergents), some auxiliary products of industrial value, paper, and raw materials. At the same time, the company benefits from economies of scale of production, releasing products available to many consumers in large series. However, intensive division also has its drawbacks - in fact, the company must independently advertise its products on the market.

Selective distribution involves a supplier concluding an agreement with several, but not all, intermediaries who show an interest in selling the product. Among the goods for the sale of which selective distribution is most widespread are household appliances, electrical goods, fashionable clothes, and other goods.

Exclusive distribution (on the basis of exclusivity) means that manufacturers grant intermediaries the exclusive right to sell a product in a specific regional market

With an exclusive distribution, a manufacturing company can count on the support of resellers in promoting their products. Having received from the manufacturer the exclusive right to sell its products, the reseller himself, trying to increase the effectiveness of advertising, tries to attract the attention of consumers to the product.

When choosing the optimal distribution channel, there are the following approaches:

cost approach (costs are compared for each alternative);

management science, which uses decision theory and operational research;

subjective-objective approach, in which alternative channels are assessed according to the most important factors (required investments, expected profit, firm's experience in the market) and others

Stage 4. Development of a communication strategy in the distribution channel

The organization of effective cooperation with intermediaries requires the manufacturer to decide which communication strategy for influencing the intermediary should be chosen:

downloads;

attraction;

combined communication strategy

A push strategy involves directing the firm’s efforts towards intermediaries to encourage them to include the firm’s products, build up the necessary inventory, allocate the best locations in salesrooms and retailers, and encourage consumers to buy the firm’s merchandise. It provides:

granting the right to exclusive sales in a certain territory;

bulk discounts;

payment of expenses for warranty service;

allocation of funds for sales promotion;

delivery of goods at the expense of the company;

staff training, sales tenders

The attraction strategy provides for the focusing of the main communication efforts on end consumers in order to create their positive attitude towards the product and brand so that the consumer himself demands this product from the intermediary, thereby encouraging him to trade this brand

provision of free goods;

coupons that give the right to return part of the money

A combined strategy involves the use of both strategies, which raises an important question of how exactly to allocate resources for the implementation of the attraction strategy and the push strategy.

First, it depends on the goals: the push strategy, as noted, aims to induce intermediaries to engage in a particular brand and is effective if it is unrealistic for the firm to allocate significant funds for advertising in the media at this stage.

On the contrary, when introducing a well-known brand to the market, it is the attraction strategy that may turn out to be optimal.

Second, the choice of a communication strategy depends on the product: manufacturers of industrial goods prefer a push strategy, and manufacturers of well-known brands of consumers of goods prefer an attraction strategy. At the same time, insufficient attention to the formation of loyalty of intermediaries can have dire consequences for the company (for example, a decrease in the advertising efforts of the intermediary).

Having chosen the optimal distribution channel and the strategy of influencing intermediaries, it is necessary to decide which of them the firm should work with, how to motivate them, evaluate

The selection of specific intermediaries is essentially the first part of the distribution channel management process, which requires:

selection of intermediaries;

motivation of participants in the distribution channel;

assessment and control of the activities of the channel members;

conflict resolution

Selecting intermediaries

Within the framework of the optimal channel, the selection of direct participants in the distribution should be carried out taking into account the following criteria:

o financial position - broad financial opportunities, a stable financial position, experience in doing business in a certain area of ​​business testify in favor of a potential agent;

o organization and main indicators of sales - the presence of an extensive sales network, high rates of turnover is a certain guarantee of effective sales of the company's products;

o products sold by a reseller - preference should be given to resellers who are already selling your company's products. Another plus in favor of the intermediary is the high quality of the products that he sells;

o the total number of goods and products of different companies that the intermediary sells - if there are a lot of such products, then before choosing this intermediary, you should make sure that the products of your company will receive sufficient attention

o reputation among clients;

o market coverage:

Geographically, you should avoid duplicating your distribution network and conflicts between dealers;

In the sectoral context, the distribution network of dealers should cover the main segments of consumers;

Frequency of receiving orders - the less often orders are received, the less likely it is to maintain its presence in the business;

o stocks and storage facilities - the reseller's willingness to maintain stocks at a level necessary to supply consumers on a regular basis. In addition, warehouses should be equipped with all the necessities for handling cargo;

o management - confident leadership in your field is always a guarantee of success. So, one of the directions for studying a dealer is assessing his aggressiveness in the market.

The second component of the distribution channel management process is associated with the choice of motives that are adequate to the expectations of intermediaries and effective, taking into account the goals determined by the manufacturer. Among such motives: monetary remuneration, the right to exclusive sale of goods in a certain territory; resource support; close partnerships.

The main principle of building relationships in the "manufacturer - intermediary" chain is long-term relationships, supported by appropriate forms of support for cooperation, and financial interest

The decision to continue or terminate cooperation with the mediator is based on the results of his activities, the main criteria of which are:

sales volumes in value and real terms;

profitability;

the amount of inventory;

delivery time of goods to consumers;

the number of new clients;

market information that distributors provide to the manufacturer;

participation in sales promotion programs;

customer service level;

the quality of product display in shop windows and on store shelves. If, according to the results of the assessment, it turns out that the performance of a particular intermediary or the effectiveness of the distribution channel system leaves much to be desired, a decision has to be made on changes, the search for new intermediaries or modification of the entire distribution system.

None of the distribution systems presented above are ideal and inevitably leads to conflicts between channel participants, the reasons for which may be different goals; competition between different distribution channels can be caused by the fact that by selling goods through different channels, the manufacturer "provokes" conflicts between intermediaries who sell the same product in the same territory; inconsistency in the work of channel participants.

Recall that the choice of a distribution channel is a strategic task. Let's name the main elements of the distribution strategy:

direct (or indirect) sales;

optimal distribution channel;

channel integration;

communication strategy;

determination of optimal ways of selling goods, placement of warehouses

The concept of vertical marketing systems (VMS) is used in the works of many scientists (Doyle P., Kotler F., Krevens D., Lambin J.-J. and others), by which they mean vertical structures coordinated by any company - sales channels, distribution channels and marketing channels. Channel management can be performed by a manufacturer, vendor, wholesale reseller (distributor) or retailer (dealer, reseller).

In the US, in the consumer goods market, it is vertical marketing systems, that is, structured channels, that account for 70-80% of the total market.

In the most general case, vertical marketing systems can be divided into two types:

• - structured marketing systems, formed by any market entity on certain conditions;
• - unstructured marketing systems, when each participant acts independently, trying to get the greatest benefit for himself, taking into account only such factors as the level of competition, consumer profitability, the state of demand, etc. P. Doyle calls such systems conventional marketing systems.

Possible options for vertical marketing systems are shown in Fig. 2.8.

Rice. 2.8. Typology of the vertical structure of marketing systems Explanation. The highlighted squares conventionally show possible "owners" who form the basic requirements for the terms of transactions to other participants in the marketing system, and the arrows indicate the directions of influence.

From fig. 2.8 it can be concluded that managed vertical marketing systems are corporate, managed and combined, while contract systems are self-regulatory structures.

The development of long-term relations between the supplier and intermediaries through mutual investment or the conclusion of long-term strategic agreements allows to increase the competitiveness of participants in the vertical marketing system due to the synergy effect of material, financial and marketing resources. For example, in an integrated system, logistics costs can be reduced by excluding sales representatives, commodity specialists, operators, etc. from the order collection process. To do this, it is necessary to automate the process by combining the software products of the distributor and the retailer. In retail chains and distributors, the functions of submitting and receiving orders are entrusted to a person. Hence the high costs of staff, mistakes, lack of goods on the shelves, an increase in the cost of production and, as a result, loss of profit in the entire chain.

One of the most common organizational forms of marketing systems are distribution channels, which play a special role in organizing interaction with consumers. At the same time, there are certain problems in the conceptual apparatus, referring both to the entire marketing system and to the distribution channels, since the latter are interpreted differently by different authors (Table 2.3).

Table 2.3

Semantic analysis of the concepts of distribution channels

From table. 2.3 it can be seen that the most fundamental terminological difference concerns channels belonging to one owner, which are called corporate (F. Kotler, B. Rosenblum) or integrated (J.-J. Lamben, L. Stern), however, L. Stern clarifies that this refers to the "hard" integration option.

Let's conduct a more detailed analysis of vertically integrated marketing systems (VIMS).

1. Corporate vertically integrated marketing systems

In this case, the vertically integrated marketing system belongs to one owner. Integration on the basis of the right of sole ownership allows you to fully control the movement of goods, financial flows and marketing programs. This type of vertical integration also makes it possible to introduce new ways of working with consumers, train personnel, and more effectively shape the general culture and image of the manufacturer. The fact that a corporate channel belongs to one owner prevents competitors from entering it. At the same time, the owner of the channel bears all financial responsibility in the event of its ineffective work. The adaptive capacity for rapid changes in the external environment or consumer behavior is lost. This kind of business conduct in Russia has been especially noticeable recently. Those who have been in the retail trade have taken up the wholesale trade or organize production (upward integration). Producers, on the other hand, are integrating downward, creating wholesale (trading houses) and retail channels (stores, B2C e-commerce, etc.).

In general, the advantage of vertically integrated marketing systems is the ability to develop and implement uniform strategies, which leads to a synergistic effect. The company-owner of VIMS acts within the framework of its mission, corporate, market and competitive strategies and develops marketing strategies for each participant, excluding their contradiction and antagonism.

2. Contract SIMS

The contractual SIMS consists of a chain of independent firms coordinating their work in the channel through voluntary agreements defining the rights and obligations of the participants.

The goal is to achieve better commercial results than doing it alone. There are two types of contract vertically integrated marketing systems.

Contractual cooperation agreements where financial and marketing resources are pooled between wholesalers and retailers, or between manufacturers and resellers.

A privilege agreement where the owner of the privilege grants the intermediary exclusive rights (franchise) to sell goods or services.

If VIMS is based on the principles of voluntary association, then each participant can cooperate on a contractual basis. The terms of cooperation are selective or exclusive agreements. In this case, there is a partial coordination of strategies within a given marketing system. The higher the level of integration of companies, the greater the possibility of coordinating strategic actions both in relation to sales development and in terms of counteracting companies that are not part of this system. As P. Dixon notes, trust and mutual understanding, created in the process of joint work, mean more than individual articles of the contract. Note that contract SIMS have both their advantages associated with greater flexibility, dynamism of functioning, and disadvantages that do not allow reaching a deep level of mutual trust.

3. Controlled SIMS

In this case, the management of vertically integrated marketing systems is achieved thanks to the power of one of its participants. Capacity is understood as such a status of a company that forces other VIMS participants to accept its terms of cooperation. Channel management can be performed by a manufacturer, a wholesaler or a retail company. Vertically integrated marketing systems of this type can be fully or partially controllable. The company “in the way of the dace” of the channel coordinates the strategic and operational actions of other participants. It should be noted that the mechanism of management under the auspices of the “owner” of SIMS from the point of view of the formation of values ​​for its participants and consumers has been little studied and requires further research.

4. Combined SIMS

Large companies are forced to create combined vertically integrated marketing systems in order to expand their presence in several markets or to attract such customer segments that the company itself is not profitable to serve. In addition, some suppliers felt that their own wholesale and retail structures were not able to effectively create additional value for consumers, as some independent firms do. Therefore, leaving their own marketing systems, manufacturers are increasingly cooperating with independent structures with special competencies and additional resources. The formation of combined SIMS is possible in two ways:

• - create a parallel with your own (corporate) marketing system, managed marketing structure;
• - within the corporate SIMS, replace any of its structures with a more effective independent one. For example, a manufacturer may have its own wholesale link, but remove its retail network by including independent retail chains in the corporate SIMS.

Compared to conventional channels, vertically integrated marketing systems have significant advantages.

Firstly, duplication of management, logistics, marketing functions is eliminated, which helps to reduce operating and transaction costs.

Secondly, the likelihood of inter-company conflicts between SIMS participants is minimized.

Corporate vertically integrated marketing systems have shortcomings, primarily related to the centralization of management, which often leads to delayed responses to new market changes.

Centralization or decentralization of corporate SIMS means a list of powers that their owners delegate to subsidiaries or their other divisions operating in regional or international markets.

The solution to the issue of the degree of centralization of VIMS is especially relevant when there is a multi-level marketing network, consisting of many manufacturing, wholesale and retail subsidiaries. Each variant of the level of centralization has its own advantages and disadvantages (Table 2.4).

From the point of view of management theory, the most optimal option is the rational use of the principles of centralization and decentralization of the work of the company's subsidiaries, which make it possible to realize the advantages of one or another approach and eliminate their disadvantages as much as possible.

Table 2.4

Advantages and Disadvantages of Centralization / Decentralization

SIMS

Considering the structure of interaction between business entities in marketing systems, one must take into account the possibility of the existence of diagonal and counter material, communicative and other types of interaction. Diagonal interaction occurs, for example, when a retail company enters a wholesale market with a supplier's products. Thus, the Lenta retail chain in its hypermarkets sells goods to the public (retail) and individual entrepreneurs (wholesale). Countertrade involves offering the supplier his assortment, which the buyer has at his disposal. Philippe Cateora suggested using countertrade in the development of the company's overall marketing strategy. According to the observations of the aforementioned author, countertrading is used in cases where other methods of conducting a transaction were not available. Countertrade, carried out in marketing systems, increases the level of interaction between business entities, transferring them to the strategic plane, since the depth and frequency of relationships increase, and the indicators of trade turnover increase.

In our opinion, diagonal and counter types of interaction are secondary in relation to the vertical or horizontal structures of the marketing system, which are basic from the point of view of the formation of customer value.

The process of vertical integration, involving the supplier and resellers, improves efficiency by reducing management overhead costs, marketing and logistics investments, merging information systems, and improving the management and control of all business processes occurring in the channel. P. Dixon gives the necessary conditions when vertical integration becomes profitable:

• - the level of competition in the field of customer service in the supplier market is decreasing, thereby creating conditions for vertical integration upward;
• - the presence of difficulties in measuring the overall economic performance of the channel, which means a loss of control;
• - competitors use the supplier's classified information to improve their own efficiency;
• - the uncertainty of the general situation necessitates adaptation;
• - large-scale and / or frequent transactions are carried out, providing economies of scale and coverage, which the firm would rather use itself than yield to channel partners;
• - it is necessary to protect unique products, trade secrets and marketing techniques from competitors' encroachments.

The attitude of economists and practitioners to vertical integration is generally ambiguous. In the opinion of some researchers, market relations are more effective than integration ones, since they allow automatically “clearing the ballast”, i.e. to timely and uncompromisingly reduce staff numbers and unnecessary costs, to maintain the competitiveness of the enterprise.

According to other experts (E.T. Koflan, L. Stern, A.I. El-Ansari and others), the existence of "special" relations between this enterprise and its closest market environment can bring positive results, especially in those cases when the control of the "integrator" over a key type of resources enhances its competitiveness. Better information support of the enterprise in the case of integration up and down, including more accurate knowledge of the customer's needs and the threat of fluctuations in resource provision on the part of suppliers, allows the "integrator" to anticipate possible changes in the environment of the enterprise and better prepare for them.

L. Stern and colleagues pay attention to the choice of strategies for creating a vertical channel, dividing them into “rigid” and “flexible” options for vertical integration. By "hard" integration, they mean the creation of a corporate channel by investing in new businesses or taking over existing ones. The strategy of "flexible" integration consists in the voluntary unification of the channel entities on the basis of concluded cooperation agreements, not in takeover.

An analysis of the advantages and disadvantages of various channel options is presented in table. 2.5.

Table 2.5

Advantages and disadvantages of different types of channels

In accordance with the concept adopted in this study, the development of trust between business partners of an integrated marketing system helps to reduce the costs of coordination and trade-offs. Trust intersubjective interactions transfer many procedures from the formal to the informal level. The effectiveness of coordination depends on the ability and ability of the “owner” of the marketing system to organize interaction at each level of the vertical value chain for consumers, as well as on his ability to use market power in relation to his partners.

Considering the positive and negative aspects of joint activities of business units, it is advisable to cite the opinion of M. Porter, who noted that there are rarely cases when all business partners receive equal advantages of the combination. He divides the costs of joint activities into three types: costs of coordination; costs of compromises; the cost of inflexibility.

When working together, business partners must coordinate their efforts in areas such as overall planning, control, problem resolution and possible conflicts. Coordination costs include wasted time staff spend on organizational matters and possibly money. The cost of compromise involves the mutual concessions that companies make in the course of strategic engagement. These concessions are not always optimal for every company that does not have the necessary channel power. The costs of inflexibility are manifested in a decrease in the speed of reaction to the actions of competitors. Doyle P., considering the problems of integrated structures, notes that at present, many companies refuse to integrate due to the changed external environment, preferring to give some functions to independent companies - suppliers, distributors and partners, and the value chain is increasingly integrated into the system of providing solutions for consumers.

• Vendor (vendor) - the seller. A vendor can be a manufacturer or any intermediary.
• Reseller (reseller) - a reseller who adds value to the product by customizing the product offer and providing customers with various additional services. Resellers differ from integrator companies in that they mainly work with finished products, while “integrators” are engaged in the formation of products for the consumer (customer), receiving the necessary components and other necessary components of consumer value from other participants in the marketing system. The terms "vendor" and "reseller" are used mainly in the field of digital technologies (markets for computers, components for them, IT technologies).

Introduction
Obsolescence of distribution channels is a natural phenomenon. You must constantly keep your finger on the pulse of events and change them as the channels become obsolete.
An important event in the development of distribution channels was the formation of horizontal, vertical and multichannel marketing systems replacing traditional marketing systems.
Traditional distribution channels typically consist of an independent manufacturer, one or more wholesalers and retailers. Each of them is an independent organization striving to ensure maximum profit for itself, even if it goes against the general interests of the distribution system, the interests of other participants. None of the participants has complete or any significant control over the other participants.
The object of research is the retail market.
The purpose of the work is to study modern trends in the development of retail trade.
Based on the goal, it is necessary to solve the following tasks:
- study the retail market;
- analyze the horizontal and vertical marketing system;
- give a marketing forecast.
When writing the abstract, the literature of leading authors in the economic and commercial fields was used.

1. Horizontal and vertical marketing systems
In horizontal marketing systems (HMS), two or more independent companies pool their resources to realize market opportunities that are not feasible for each of them individually. Moreover, cooperation can be carried out both on a temporary and permanent basis. An example of an HMS is Dr. Pepper, which lacked the capacity to dispense its soft drink, hired Coca-Cola bottlers on a licensed basis.
Vertical marketing systems (VMS) have replaced traditional distribution channels and have become the most common form of distribution in the consumer market in modern conditions. They own 70-80% of the modern market. The emergence of the Navy is due to the desire of the most powerful participants in the channel to control the behavior of other participants, to eliminate damage from possible conflicts of its members pursuing their own goals. A vertical marketing system includes a manufacturer, one or more wholesalers and retailers operating in a single system. Usually one of the channel members determines and monitors the activities of the others. He has the power to give him leading positions in the channel. The dominant position in the Navy can be occupied by a manufacturer, wholesaler or retailer.
Types of vertical marketing systems:
1. Corporate. The successive stages of production and distribution are in a single ownership. In the corporate Navy, all companies that carry out consistent commodity circulation - from production to sale of goods to end consumers - are solely owned.
2. Contractual. Consist of independent firms with contractual relationships and a coordinating program of activities. Contractual Naval Forces are composed of independent firms with various production and distribution tasks, contractual relationships and a coordinating program of activities to achieve greater commercial results. There are three types of contractual IUDs: voluntary networks of retailers under the auspices of wholesalers, cooperatives of retailers, and franchising.
3. Controlled. Coordinate the activities of a series of successive stages of production and distribution due to the size and power of one of the participants. In a controlled Navy, leadership is provided by the largest player, usually a brand name manufacturer.
Non-Navy retailers are setting up specialty stores to serve market segments that are unattractive to most retailers. As a result, the retail trade is polarizing: on the one hand, large organizations working in the Navy, on the other, individual specialized stores. This duality creates an inconvenience for manufacturers who work with independent resellers. Vertical marketing systems constantly threaten large manufacturers with severing relations with them and creating specialized production. Thus, the competition is not between independent companies, but between entire systems (corporate, managed, contractual Navy), fighting among themselves to reduce costs and attract buyers.
Previously, operating in a single market, the company used a single distribution channel. Today the market consists of several target segments and many distribution channels, so companies are increasingly focusing on a multichannel distribution system. In this case, the system is considered multichannel if the same company uses two or more distribution channels to reach one or more customer segments.
The increase in distribution channels is beneficial for the company for a number of reasons:
- the coverage of the market is increasing, as new buyers are attracted;
- costs for the maintenance of all channels are reduced;
- the quality of trade is improved, as the unsatisfied requests of buyers are taken into account. At the same time, multichannel can increase conflicts, as there can be competition for buyers between two or more companies.