With an administered channel arrangement,
A) all the terms regarding distribution functions, prices, and other factors are clearly specified in writing.
B) the dominant firm in the distribution process plans the marketing program and itemizes and coordinates each member's duties.
C) all of the channel members are owned and controlled by the manufacturer.
D) the channel of distribution is direct.

Question

Quizplus · Accepted Answer

In an administered channel arrangement, the dominant firm in the distribution process takes the lead in planning the marketing program and coordinating the activities and responsibilities of all channel members, without necessarily having formal agreements or ownership control over the other members. This contrasts with contractual systems where terms are specified in writing (A), corporate systems where the manufacturer owns the distribution channels (C), and direct distribution (D).

With an Administered Channel Arrangement