A large 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 over supply sources.Which marketing channel system should this company choose?

Question

Quizplus · Accepted Answer

A corporate vertical marketing system is the best choice for a company that wants the most control over their supply sources. In this system, the company owns or controls all aspects of the supply chain, from manufacturing to distribution to retail. This allows for maximum control and efficiency in the supply chain, ensuring that the company can manage its supply sources effectively. Contractual and administered vertical marketing systems involve more parties and may not provide as much control, while an integrated marketing system may prioritize communication and cooperation between different parties rather than complete control over supply sources. A corporate horizontal marketing system involves collaboration between companies in different industries rather than control over supply sources within a single industry.

A Large Company Produces Paint and Other Home Decorating Products