What is a vertical marketing system (VMS)? What are the various types of VMSs?
What will be an ideal response?
A vertical marketing system includes the producer, wholesaler(s), and retailer(s) acting as a unified system. One channel member, the channel captain, owns or franchises the others or has so much power that they all cooperate. There are three types of VMSs: corporate, administered, and contractual.
? A corporate VMS combines successive stages of production and distribution under single ownership.
? An administered VMS coordinates successive stages of production and distribution through the size and power of one of the members. Manufacturers of dominant brands can secure strong trade cooperation and support from resellers.
? A contractual VMS consists of independent firms at different levels of production and distribution, integrating their programs on a contractual basis to obtain more economies or sales impact than they could achieve alone.
You might also like to view...
In the context of changing environments, identify a true statement about environmental uncertainty.
Question options: It is most likely to be high when there is technological stability in the industry. It is most likely to be high when the industry is at an equilibrium state. It is most likely to be low when environmental complexity is at a low level. It is most likely to be low when environmental change is extensive.
The use of specialized equipment to substitute manual labor drives up manufacturing costs in
the long term. Indicate whether the statement is true or false