This occurs when companies perform more than one activity in the sequence of the marketing process

This is known as Vertical Integration.

Step 1: Understanding Vertical Integration Vertical integration is a strategy where a company expands its business operations into different steps on the same production path. This means a manufacturer might start retailing or distributing its own products.

Step 2: Types of Vertical Integration There are two types of vertical integration: Forward integration, where companies control the direct distribution or supply of their products, and backward integration, where companies control their own sources of supply of inputs necessary for production.

Step 3: Benefits of Vertical Integration Benefits include better control over the production process, cost savings from eliminating the need for intermediaries, and improved supply chain coordination.

Step 4: Risks of Vertical Integration Risks include increased costs due to lack of supplier competition, reduced flexibility, and potential anti-competitive effects.