Horizontal Marketing System & Hybrid (Omni Channel)

HORIZONTAL
MARKETING
SYSTEM
&
HYBRID(OMNI
PRESENTED BY:- SOURAV AGRAWAL
CHANNEL) SWETA MISHRA
SUBHANGI PATNAIK
SONALI NAYAK
SWAPNITA SAHOO
SONALI SAHOO
INTRODUCTION:-
The first and foremost aim of marketing implies spreading knowledge about the value of a product
and raising awareness with the purpose of selling it to consumers. It is done through marketing
channels, which consist of producers, wholesalers, and retailers, where each of them is a separate
independent business pursuing the maximization of their profits and performing separate marketing
functions.
None of the channels has control over other members, they do not tend to cooperate with each
other, and these are the basics of the conventional marketing channel. However, this model is rather
rigid and cannot always succeed in meeting contemporary challenges, so there have emerged two
other developments, namely vertical and horizontal marketing systems.
HORIZONTAL MARKETING SYSTEM:-
DEFINITION:-
 A Horizontal Marketing system is a form of distribution channel wherein two or more companies
at the same level unrelated to each other come together to gain the economies of scale.
 Horizontal marketing system is the merger of two unrelated companies who have come together
to exploit the market opportunities.
 Generally, this type of marketing system is followed by companies who lack in capital, human
resources, production techniques, marketing programs and are afraid of incurring the huge losses.
 In order to overcome these limitations, the companies join hands with other companies who are
big in size either in the form of joint venture –that can be temporary or permanent, or mergers to
sustain in the business.
 Horizontal marketing system has gained popularity in the recent times due to an immense
competition in the market where everybody is striving to gain a good position in the market along
with huge profits.
In this marketing system, the
collaboration can be between:
 Two or more Manufacturers- With an

objective of making optimum
utilization of scarce resources.
 Two or more Wholesalers-With the
objective of covering a larger area of
the distribution of goods and
services.
 Two or more Retailers- With the
objective of providing bulk quantities
in a particular area.
THE CONCEPT OF HMS IS BASED ON A
COMBINATION OF THREE FACTORS:-
1.FINANCIAL
2.PRODUCTION
3.MARKETING RESOURCES
This type of marketing allow to:-
1. Reduce Cost- Cooperating with other company

helps to negotiate better prices of material or any
components high are needed in production
process.
2. Better Utilize Resources-Using knowledge and
solutions of our partner provide us to create better
product and helps us to avoid mistakes and
problems
3. Avoid Waste – There is a possibility that our
partner will use materials to product different
goods and it helps to reduce cost.
Advantages Of Horizontal
Marketing:-
 Reducing Competition
 Benefit From Synergy
 Economy Of Scope
 Economy Of Scale
 Ease In International Trade
 Increases In The Organization’s
Income
Disadvantages Of Horizontal
MARKETING:-
1. Always Does Not Yield Positive
Synergy
2. Difficult To Manage
3. Monopoly In The Market
4. Reducing Flexibility
SOME EXAMPLES OF HORIZONTAL MARKETING SYSTEM:-
The most well-known example consists in the collaboration between Apple

and Starbucks. Apple, when it introduced itunes went into an exclusive
partnership with Starbucks and allowed Starbucks Wi fi users to browse,
download and buy songs from the Apple itunes store.
One recent famous example of horizontal integration is Facebook’s

acquisition of Instagram. Both are competing social media platforms, used
to share photos and updates. Through this acquisition, however, Facebook
was able to cement its position as a social media giant, get rid of a budding
competitor, and implement cross-platform synergies such as allowing
people to share posts on both platforms concurrently.
Nike and Apple have entered into a partnership, with the intent to have a
Nike+ footwear in which the iPod can be connected with these shoes that
will play music along with the display of information about time, distance
covered, calories burned and heart pace on the screen.
HYBRID MARKETING SYSTEM:-
DEFINITION:-
• It occurs when a single firm uses two or more marketing channels to reach customer
segments.
• Hybrid marketing is a promotional approach that combines traditional marketing and
digital marketing. Instead of focusing solely on online platforms or in-person
touchpoints, hybrid marketing merges both approaches to create a more effective and
extensive outreach plan.
• Hybrid marketing is a new and evolving term and is sometimes referred to as omni-
channel marketing or multi-channel marketing.
• It mixes and matches marketing approaches from both categories:-
1. TRADITIONAL MARKETING- Trade shows, Events, Print ads ,Radio ads ,Television ads.
2. Digital Marketing- Search engine marketing ,Social media ,Blogging , Email marketing.
Outlining A Hybrid Marketing Plan:-
Like most marketing strategies, a hybrid marketing plan starts with defining your
audience and goals. As you put together a campaign or promotion, start by
assessing:
What is the core message you want to share?

Who is your target audience?
Where are you most likely to reach that target audience?
Where do they spend time both in-person and online?
What is the outcome you want to create?
How can you measure the results of your campaign?
ADVANTAGES OF HYBRID MARKETING
SYSYTEM:-
 Increased market coverage

 Lower channel cost
 Customized selling
DISADVANTAGES OF HYBRID MARKETING

SYSYTEM:-
 Adds marketing costs

 Makes in-depth customer research
necessary
 Requires more advanced analytics
 Lack of Control
EXAMPLES OF HYBRID MARKETING SYSTEM:-
Examples of hybrid marketing systems extend beyond high-

tech businesses such as computers to older industries such
as textiles, metal fabrication, and office supplies and to
service industries such as insurance.
Disney sells its DVDs through five main channels : movie

rental stores such as blockbuster, Disney stores, retail
store ,online retailers such as Disney’s own online stores
and Amazon.com and the Disney catalog and other catalog
sellers.

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HORIZONTAL

 Two or more Manufacturers- With an

1. Reduce Cost- Cooperating with other company

The most well-known example consists in the collaboration between Apple

One recent famous example of horizontal integration is Facebook’s

What is the core message you want to share?

 Increased market coverage

DISADVANTAGES OF HYBRID MARKETING

 Adds marketing costs

Examples of hybrid marketing systems extend beyond high-

Disney sells its DVDs through five main channels : movie

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