Asked by Heather Robertshaw on Jul 03, 2024
Verified
Describe the three types of vertical marketing systems.
Vertical Marketing Systems
A coordinated approach to distribution and marketing designed to bring products from production to the consumer through a unified channel of distribution.
Types
Varieties or categories into which people or things are classified based on common characteristics.
- Explain the three kinds of vertical marketing systems and their functions within the realm of supply chain management.
Verified Answer
CS
Connor SimpsonJul 05, 2024
Final Answer :
There are three types of vertical marketing systems: administered, contractual, and corporate. In an administered vertical marketing system, there is no common ownership or contractual relationship, but the dominant channel member controls or holds the balance of power. In a contractual vertical marketing system, independent firms at different levels of the marketing channel join through contracts to obtain economies of scale and coordination to reduce conflict. Finally, in a corporate vertical marketing system, the parent company has complete control and can dictate the priorities and objectives of the marketing channel because it owns multiple segments of the channel, such as manufacturing plants, warehouse facilities, and retail outlets.
Learning Objectives
- Explain the three kinds of vertical marketing systems and their functions within the realm of supply chain management.
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