Question

As the dominant member of the channel of distribution, Coca-Cola holds a lot of power in the relationship with independent grocery stores, and as such, it performs the functions of restocking merchandise, setting up special displays, and rotating merchandise. This is an example of:________________.
1. horizontal marketing system.
2. an administered vertical marketing system.
3. a contractual vertical marketing system.
4. a corporate vertical marketing system.

Answer 1

Answer:

2. an administered vertical marketing system.

Explanation:

• A vertical marketing system is a form of the cooperation between the multiple levels of the distribution channels and member works together to promote efficiency and the economies of scale.

• In this way the productions are promoted to the customers and credit can be given to them and the products are fully inspected and delivered.

• A dominant member of the channels of distribution the coca-cola company has independent stores and functions to provide the setting up displays and merchandise.