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Reports on a comparative study of the types and degrees of horizontal and vertical integration within the seed potato industries of The Netherlands and Northern Ireland. Using an integration analysis grid, presents descriptive models of the integrative functions in both industries. Given the superior marketing performance of the Dutch industry, and the way in which this is facilitated by its highly integrated organizational structure, makes a case for the utilization of both horizontal and vertical integration in improving marketing performance in seed potato industries.

Distribution research, both in Europe and in the United States, is fragmented into two seemingly disparate disciplinary orientations: an economic approach and an organisational approach. The former attempts to apply micro‐economic theory and industrial organisation analysis to the study of distribution systems, focusing on horizontal as well as vertical markets. The latter attempts to apply behavioural and organisational concepts and theories to vertical distribution channel phenomena. Typically, economic and organisational studies have made only occasional references to each other, and very little integration has been achieved. Sometimes the two approaches have been in rivalry, economic researchers ignoring organisational variables, and organisational researchers ignoring economic variables.

Historically goods and services have been distributed through networks in which loosely aligned firms have bargained at arm's length, negotiated aggressively over price and other conditions of sale, and otherwise behaved autonomously. However, planned vertical marketing systems are rapidly displacing these conventional marketing channels as the dominant mode of distribution in the American economy. These vertical marketing systems tend to be professionally managed, pre‐planned, rationalised, and capital intensive. According to McCammon, over 60 per cent of total retail sales are through firms affiliated with vertical marketing systems.

Continued inflation at a high rate for some time seems to be inescapable. In this situation management must bring ever closer attention to bear on the issue of cost control, and particularly cost‐benefit analyses of their operations. One activity likely to come under close scrutiny is that of distribution. For some time physical distribution has been subject to rigorous examination in terms of “total” costs and “system/cost benefits”. By expanding the analysis to include channel considerations it is possible to consider all influences within a distributive process. This article therefore seeks to determine an approach to channel management which considers all the functions, activities and institutions comprising a distribution channel.

This monograph progresses from a consideration of definitional issues to the development of a conceptual model for marketing‐logistics interaction and finally to a discussion of the issues of implementation of the model within the context of marketing strategy. Thus, following an introduction, Part II begins with definition of the field and examines the position of physical distribution in relation to marketing. Part III discusses the relationship of physical distribution and macro‐marketing, and is thus concerned about the social, aggregative goals of logistics systems, including the costs of distribution. Part IV continues this argument, examining specifically the influence of physical distribution on channel structure. Part V then focuses on the assumptions underlying the customer service function, asking how physical distribution can influence final demand in the market place. Part VI presents a conceptual model of marketing‐logistics demand stimulation. The operational issues concerned with its implementation are shown in Part VII; and a summary of the relevant points is presented in Part VIII. The concern has been not with presenting either new computational models nor empirical data but with presenting a new perspective on the marketing‐logistics interface. There is a need to reduce the barriers between these fields and to present more useful ways for co‐operation.

Channels of distribution are basic to the marketing strategies of firms, and have been shown to be a key element in the marketing mix. The author here undertakes a comprehensive review of channels literature, primarily to identify and assess the adequacy of the various mainstream conceptual schemes which have emerged. Economic‐based arguments have largely been at the core of channels literature, although these have been partially offset by the concepts of the organisational and behavioural schools. The author concludes that whereas every conceptual approach reviewed has added something to our cumulative knowledge, no single approach has yet reached a point of adequate conceptualisation based on his own basic criteria. As yet channels literature is mainly descriptive, and has virtually no predictive power.

Observes that supply chain management is a rapidly‐evolving subject which offers many insights into how industries are organized and into the efficiency gains which can be made under different organizational structures, pointing out that it is an interdisciplinary concept, drawing on aspects of marketing, economics, logistics, organizational behaviour, etc. Presents a framework from the economics literature which may be useful for those interested in understanding and exploring the concept of supply chain management. Describes the origins and development of transaction cost analysis and explains the key concepts of the framework. Discusses the potential effects of transaction costs on vertical co‐ordination within an industry and, hence, on supply chain management. Finally, suggests methods for empiricizing transaction cost analysis, resulting in recommendations for closer co‐operation between researchers and business managers.

The paper sets out to explain how vertically integrated organisational marketing systems can integrate the marketing decision‐making process of suppliers, manufacturers, and marketing channel members and also to make clear why it is necessary for marketers to use marketing intelligence and why they need to pay attention to security issues.

The work is based on a literature review and is an extension of earlier work relating to the cultural similarities and differences of Japanese and Korean people. A number of marketing frameworks are made explicit and this represents a critical appreciation and extension of the body of knowledge.

Vertically integrated organisational marketing systems facilitate the relationship marketing approach and ensure that a customer service policy is implemented. Practising managers can adopt a customer service approach that embraces the concept of organisational learning. By viewing mutuality as the main objective, business relationships can be developed that are based on trust and are sustainable. Should a number of marketing skill gaps be identified, action can be taken to rectify the situation.

Future research should establish how organisational learning can transform an organisation's marketing culture; how the internet can enhance network arrangements; and how marketers can devise a customer service policy and produce marketing contingency plans.

Marketers can establish how a customer relationship management‐monitoring system ensures that the marketing decision‐making process in partner organisations promotes the use of joint project teams and facilitating technology.

Marketers can devise a marketing governance mechanism that embraces the concepts of customer service and organisational learning.

The paper intends to identify and explain key managerial principles for vertical integration in the cattle industry during a key period of environment uncertainty.

Following Yin's advice on using case studies for exploratory theory development, this study builds on existing theories of vertical integration through a case study that explores potential prospects for cattle producers in a uniquely uncertain environment and the execution of a higher degree of vertical integration in a mature market.

The creation of NVF is a result of a well‐groomed uncertainty management scheme designed to attain a higher degree of vertical integration within an enterprising community. Some key managerial principles have been identified that can be applied to a thriving vertical integration endeavour in the cattle industry. History has proven that such an undertaking is taxing. Nevertheless, by looking at NVF's business model, it can be seen that environmental uncertainty can facilitate vertical integration projects in the cattle industry, given the right community‐oriented doctrine.

This case study does not include cases where cattle producers were not so successful.

It provides advice for managing vertical integration by networks of small business owners in the cattle industry. The BSE crisis seems to have triggered efforts to decrease dependency, especially by outside stakeholders. NVF focused its members on building a business model and long‐term objectives beyond the specific uncertainties created by bovine spongiform encephalopathy (BSE), such as whether the border reopened or stayed permanently closed to foreign markets. Domestic consumers were their core marketing priority at the outset. In addition, future plans were set in motion to create a strategy to seek other foreign markets, including the EU.

The case study presented in this paper provides an example of vertical integration as a strategic response to market uncertainty enhanced by a political and economic crisis in a rural community. This paper also outlines key events of the Canadian BSE crisis, the Canadian beef industry and surrounding communities, and the relevance of past research on environmental uncertainty and vertical integration in explaining why vertical integration has been strategically unnatural to cattle producers but occurred in this situation.

The instability of the relationships which Export Management Companies have with their Manufacturer‐Suppliers is, perhaps, the most pressing problem which the EMCs have in their long‐term development as viable export marketing channel entities. Three different variables were empirically tested as possibly affecting the stability of EMC/M‐S relationships: (1) the “operating arrangement” which the EMC has with the M‐S; (2) whether or not the EMC “takes title” to products which it markets abroad; and (3) the size of a given M‐S's export sales generated by the EMC. All three variables were shown to affect the stability of the EMC/M‐S dyadic relationship.