horizontal marketing system

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Horizontal marketing system refers to when two or more companies, not related to one another but at the same channel level, work together for a common purpose.

Three distribution channel marketing systems include:

  1. conventional marketing system
  2. vertical marketing system
  3. horizontal marketing system

Example of horizontal marketing system:

As an example of, some companies within a product or service category are part of an alliance, such as the airlines. Passenger air carriers such as Finnair, British Airways, JAL, Quantas, among a few other airlines, are part of the OneWorld alliance. By being part of this horizontal channel, the alliance airlines can increase passenger volume through travel agents who book travelers on these carriers. The premise for the alliance is those travel agents that book passengers on one airline will more than likely book the same passengers on connecting airlines within the alliance.

As an added customer benefit, passengers can share their frequent flyer miles between carriers within this horizontal marketing system.

 

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