Answer:
The correct answer is c. channel integration.
Explanation:
Producers and intermediaries act together to obtain mutual benefits. Sometimes the channels are organized through agreements; There are others that are organized and controlled on the initiative of a single director that can be an agent, a manufacturer, a wholesaler or a retailer. This director can establish policies for it and coordinate the creation of the marketing mix.
The links of a channel can be combined horizontally and vertically under the administration of a channel leader. The combination can stabilize supplies, reduce costs and increase coordination of channel members.
Vertical integration of the channels: Two or more stages of the channel are combined under one direction. This results in the purchase of the operations of a channel link or the performance of the operations of this link to carry out the functions.
This integration includes the control of all functions from manufacturing to the final consumer.
Horizontal integration of the channels: It consists of combining institutions at the same level of operations under a single administration. An example will be department stores. This integration provides significant savings in advertising specialists, market research, purchases, etc. And it can be carried out by an organization by merging with other organizations or by increasing the number of units
