Explanation:

A vertical marketing system is the type of cooperation between the members of a distribution channel. It includes a producer, a wholesaler, and a retailer collaborating to deliver necessary products to their customers and aims at achieving better efficiency and economies of scale.
Companies preferred a conventional marketing system earlier. It can be described as one where retailers, wholesalers, and producers operate independently to earn better profits, even at the expense of one another. The system caused a lot of conflicts between business partners and reduced ROI. To avoid such consequences, some companies decided to switch to a vertical marketing system.

In a vertical marketing system, manufacturers, wholesalers, and retailers participate together in the production and distribution process. Therefore, business owners can manage their businesses efficiently and obtain a more significant market share. A vertical marketing system tries to eliminate competition and conflict that often arise between companies. As a result, there’s better efficiency and a reduction in product costs.