What are the three types of vertical marketing systems?

Question

Multiple select question.

Contractual

Direct

Administered

Corporate

Competitive

Answer 1

The three types of vertical marketing systems are:

1. Contractual - This involves independent firms at different levels of production and distribution that join together through contracts to obtain more economies of scale and coordinate their activities.

2. Administered - This system is characterized by informal arrangements between different levels of the marketing channel, where one member of the channel takes the lead and coordinates the activities of the other members.

3. Corporate - In this system, a single company owns multiple levels of the supply chain, allowing for greater control over the production, distribution, and marketing processes.

So the correct answers are Contractual, Administered, and Corporate.