A large company produces paint and other home decorating products. Its goal is to choose the best marketing channel arrangement that will give it the most control over supply sources. Which marketing channel system should this company choose?

Question

Quizplus · Accepted Answer

A corporate vertical marketing system is characterized by a single corporate entity owning each level of the marketing channel, resulting in the greatest control over supply sources. This is the best choice for the company's goal of maximizing control. A contractual or administered vertical marketing system involves independent firms working together through contracts or informal agreements, which may not provide the same level of control. An integrated marketing system involves coordinating various marketing functions across all levels of the channel, but may not necessarily involve ownership. A corporate horizontal marketing system involves a single company owning multiple businesses that are at the same level of the channel, which is not relevant to this scenario.

A Large Company Produces Paint and Other Home Decorating Products