Question

A large company produces paint and other home decorating products. Its goal is to choose the marketing channel arrangement that will give it the most control over supply sources. Which marketing channel system should this company choose?

Answer 1

A Corporate Vertical Marketing System

Step-by-step explanation:

A corporate vertical marketing system aims to create a distribution channel that is efficient and that creates a chain in which the customers are benefited at maximum extent.

In this the company offers credit to distribution channel and the channel provides credit facility to customers.

In this the customers are through a channel directly connected with the company. This clearly provides in the given instance that this will be very favorable.

As the company sells paints which is generally involving a huge amount, accordingly when customers are given credit, they prefer the company products.