Firestone manufactures tires and owns the service centers that sell them. Campbell's Soup does not actually own the other channel members. However, its dominant position allows it to influence the distribution decisions of the entire system. For example, it has a major influence over how its products are displayed in retail stores, how its products are promoted, and more. Firestone is an example of a(n) _______________. Campbell's is an example of a(n) ____________.

Question

Quizplus · Accepted Answer

Firestone, owning its service centers, is an example of a corporate vertical marketing system (VMS) where the production and distribution are under a single ownership. Campbell's, influencing the distribution decisions without owning the other channel members, exemplifies an administered VMS, where coordination is achieved through the size and power of dominant participants.

Firestone Manufactures Tires and Owns the Service Centers That Sell