A vertical marketing system (VMS) streamlines production and distribution under one marketing plan. In email marketing, VMS means bringing together different teams and tools to make email campaigns more efficient.
In this article, we will be looking into exactly how VMS applies to email marketing.
Understanding Vertical Marketing System
A vertical marketing system is a strategy that brings together different stages of production and distribution into one unified approach. The goal here is to improve coordination in marketing channels.
There are three main types of VMS: corporate, contractual, and administered.
Corporate VMS involves one company owning multiple levels of its distribution chain, such as a manufacturer owning its retail outlets. This setup ensures complete control over the production and sales process.
Contractual VMS is based on legal agreements between independent companies at different distribution levels, like franchises. These agreements allow for standardized operations while benefiting from shared branding and marketing strategies.
Administered VMS does not rely on ownership or contracts but on the influence of one dominant participant in the distribution chain. Large retailers, for example, can dictate terms to suppliers because of their market power.
Horizontal Marketing System (HMS)
Contrary to VMS, a horizontal marketing system is about two or more companies at the same level of the distribution channel coming together and exploring new marketing opportunities.
This type of collaboration can happen between companies within the same industry or across different industries. It generally focuses on pooling resources, knowledge, and technology for the best possible marketing results.
The biggest advantage of HMS is the option to share risks, resources, and expertise. This is how companies can reach broader markets, innovate faster, and bring down costs. HMS would work particularly best for companies that are looking to open new markets – or those launching large-scale marketing campaigns.
Vertical Marketing System vs. Horizontal Marketing System
The Importance of VMS in Email Marketing
VMS can be of great help in email marketing. It is very effective at solving common problems like data silos, inconsistent messaging, and slow processes.
A data silo is data that is “held” by one team or department in a company and is not easily accessible to others. Data silos make it tough to see all customer interactions, hindering personalized marketing.
Inconsistent messaging happens when a brand delivers different or even conflicting messages across various communication channels or communications. This could be confusing to customers and potentially even weaken your brand’s identity. Overall, it’s very important to keep your messaging consistent to keep up a clear and inspiring brand voice.
A VMS approach brings coordination and efficiency to email marketing. By implementing VMS, you get better coordination and alignment. And this translates into more consistent messaging across all your emails and reinforces your brand’s identity.
Applying VMS Principles to Email Marketing
Using VMS in email marketing basically means getting everyone to work together – and towards better results. This includes marketers, content creators, data analysts, and tech providers. When all the team members combine their efforts, you get to create emails that are data-driven, consistent, and technically solid.
VMS can help you streamline lots of email marketing processes: segmentation, personalization, automation, etc. As you efficiently organize these components, email campaigns become more targeted and relevant to each recipient.
Corporate VMS in email marketing
When a company handles their email marketing in-house, it gets to exercise tighter control over every aspect of the campaign. This setup often allows for better brand consistency. It also makes it easier for marketers to add quick adjustments to their campaigns guided by performance analytics. Having all stakeholders within the same organization fosters seamless communication and strategy alignment.
Contractual VMS in email marketing
If you choose to partner up with agencies or tech providers, you will be gaining access to special services such as advanced analytics and other content tools. Partnerships like these can bring about new ideas and techniques that will help you improve your email marketing campaigns.
A contractual VMS lets you use outside experts while keeping your goals on track.
Administered VMS in email marketing
Smaller companies often have their email marketing strategies guided by big platforms or standards. Complying with these platforms’ best practices can often give your emails a better chance of getting delivered and engaging.
An administered VMS model leverages the influence of major email service providers to improve campaign outcomes without direct ownership or contracts.
Implementing VMS in Email Marketing
To make sure VMS works for your email marketing campaign, you will need a nuanced approach. This means focusing on a specific audience to achieve higher engagement.
Let’s explore how this may work using the example of the brand we all know – Nike.
Identify your target audience
Understanding who your readers are is the foundation of a successful vertical marketing strategy.
Take Nike, for example. Their campaigns are aimed at athletes and sport enthusiasts of all ages. Their goal is to reach those who value performance, innovation, and style in their athletic wear. By zeroing in on this demographic, Nike is capable of creating messages that resonate deeply with their audience’s aspirations and lifestyle.
Address key challenges
The next big thing is understanding and addressing the challenges that your readers may be facing. Nike knows that their customers are most likely always on the lookout for the next advancement in sports tech and fashion. So, the company is committed to continually innovating in product design and material technology. With this commitment, their products get to meet the high expectations of their audience.
Develop a content strategy
Content is king in any marketing strategy.
Nike excels in creating content that not only showcases their products but also inspires. Their emails often include stories of athlete endorsements, product innovations, and motivational content.
Increase visibility
When you expand your reach, more people find out about your brand and your products. Nike uses a multi-channel approach to increase visibility. They are not only using email, but also have a strong presence on social media, engage in influencer partnerships, and use SEO strategies. This way, they always get to stay present in places where their readers may be spending their time.
Measure results
Finally, never forget to track the effectiveness of your marketing efforts. Let’s take another look at Nike. The company uses advanced analytics to measure engagement and conversion rates – and they never take their eyes off of overall campaign performance. As they do so, they get to make data-driven tweaks along the way and make sure that their campaigns always match the evolving needs and preferences of their customers.
To Sum Up
VMS can be very helpful in email marketing. It can improve channel loyalty, keep your branding consistent, and make your customers happy. It efficiently fixes problems like scattered marketing and mixed messages by getting everyone to work towards the same goals.
To set up a VMS, you need good planning, clear communication, and teamwork. Whether you pick a corporate, contractual, or administered VMS, success comes from using everyone’s strengths to create a better, more united marketing strategy.