10 Questions
Corporate channel is a type of vertical marketing system
True
In an administered channel system, the channel members formally agree to cooperate with each other
False
Contractual VMS involves channel members agreeing by contract to cooperate with each other
True
A corporate vertical marketing system involves the combination of successive stages of production and distribution under a single ownership
True
Gray market is the practice of selling genuine branded products outside of the authorized distribution channels
True
Vertical marketing system distribution arrangement involves the procedure, wholesaler, and retail performing marketing activities, as a unified system.
True
Contractual VMS involves channel members agreeing by contract to cooperate with each other.
True
Gray market is the practice of selling genuine branded products outside of the authorized distribution channels.
True
In an administered channel system, the channel members formally agree to cooperate with each other.
False
Corporate channel is a type of vertical marketing system.
True
Study Notes
Types of Marketing Systems
- A corporate channel is a type of vertical marketing system, where successive stages of production and distribution are combined under single ownership.
Administered Channel System
- In an administered channel system, channel members formally agree to cooperate with each other.
Contractual Vertical Marketing System (VMS)
- Contractual VMS involves channel members agreeing by contract to cooperate with each other.
Gray Market
- Gray market refers to the practice of selling genuine branded products outside of authorized distribution channels.
Vertical Marketing System (VMS) Distribution
- In a VMS distribution arrangement, the wholesaler, retailer, and producer perform marketing activities as a unified system.
Test your knowledge of distribution management with this quiz on the components of marketing channels. Challenge yourself to understand the interdependent organizations involved in the process of product development and allocation for consumer or business use.
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