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

Question

Quizplus · Accepted Answer

A corporate vertical marketing system involves the company owning and controlling all levels of the distribution channel, from production to final sale to the consumer. This gives the company the highest level of control over its products and brand image, which is important for a new company looking to establish itself in the market. A contractual or administered vertical marketing system would involve giving some control to intermediaries in the distribution channel, while an integrated marketing system and a corporate horizontal marketing system are not relevant to this scenario.

A New Company Produces Paint and Other Home Decorating Products