Compare a conventional distribution channel with a vertical marketing system (VMS)

What will be an ideal response?


A conventional distribution channel consists of one or more independent producers, wholesalers, and retailers. Each is a separate business seeking to maximize its own profits, even at the expense of the system as a whole. No channel member has much control over the other members, and no formal means exists for assigning roles and resolving channel conflict. On the other hand, a vertical marketing system is a unified system made up of producers, wholesalers, and retailers. While members of a conventional distribution channel seek to maximize their own profits, members of a vertical marketing system all cooperate because either one member owns the others, one has contracts with the others, or one wields more power than the others.

Business

You might also like to view...

An amino sugar called N-acetylmuramic acid is an important building block of the cell wall of some bacteria. Penicillin prevents this amino sugar from being incorporated into the bacterial cell wall. Based on this information, select all the of the following statements that are true.A) Penicillin affects bacteria but not eukaryotic animal cells.B) Bacterial cells that had already formed their cell walls would be unaffected.C) Penicillin would stop the growth of active colonies of susceptible bacteria.D) Penicillin affects bacterial cell walls and eukaryotic plant cell walls.

What will be an ideal response?

Business

The objectives of an information system include each of the following except

a. support for the stewardship responsibilities of management b. furthering the financial interests of shareholders c. support for management decision making d. support for the firm's day-to-day operations

Business

It is the obligation of the researcher to obtain data that are most appropriate, given the research questions to be answered

Indicate whether the statement is true or false

Business

Forecasts of the probable results of implementing whole strategic plans are needed to apply quantitative screening criteria.

Answer the following statement true (T) or false (F)

Business