Evolution of Vertical Marketing System to Conventional Distribution Channels
Not what you're looking for?
How might a distribution channel evolve from a conventional distribution channel to a vertical marketing system?
Purchase this Solution
Solution Summary
An evolution of vertical marketing systems to conventional distribution channels are examined.
Solution Preview
Distribution channel refers to the path that is used by companies in order to deliver their goods and services to consumers. A distribution channel includes several interconnected intermediaries such as wholesalers, distributors, agents and retailers (Cravens, 2010). It is necessary that each channel member's role must be specified and channel conflict must be managed in order to ensure the effectiveness of channel as a whole. Additionally, the channel will also perform better if it includes a firm, agency or mechanism because all these in a collective form provide leadership and have the power to assign roles and manage conflicts (Havaldar, 2005).
Previously, conventional distribution channels have lacked such leadership and power that further result in damaging conflict and poor performance. This lack of leadership might evolve a distribution channel from a conventional distribution channel to a vertical marketing system (VMS) (Kotler, 2008). The emergence of vertical marketing system has been considered as one of the biggest channel development, as it provides channel leadership and thus, helpful to maximize firm's benefits. A conventional distribution channel consists of one or more ...
Purchase this Solution
Free BrainMass Quizzes
Production and cost theory
Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.
SWOT
This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.
Organizational Behavior (OB)
The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.
Situational Leadership
This quiz will help you better understand Situational Leadership and its theories.
Basics of corporate finance
These questions will test you on your knowledge of finance.