A large company produces paint and other home decorating products. Its goal is to choose the marketing channel arrangement that would 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 involves the company taking full ownership and control of each level of the distribution chain, including production, distribution, and retail. This would give the company the most control over its supply sources, as it owns and manages every step of the process. In contrast, a contractual or administered vertical marketing system involves partnering with other companies, which may not provide as much control over supply sources. An integrated marketing system and retailer-sponsored cooperative are also partnership-based approaches and may not provide the desired level of control.

A Large Company Produces Paint and Other Home Decorating Products