Final answer:
An administered vertical marketing system is how a VMS achieves channel coordination through the power exercised by a dominant channel member, usually leading to greater overall efficiency in the distribution process.
Step-by-step explanation:
A VMS that achieves channel coordination when a dominant channel member exercises its power is called a vertical marketing system. In such systems, coordination is achieved through the influence and power of a leading firm. This type of arrangement can be referred to as an administered vertical marketing system. Here, the dominant company typically takes the lead in coordinating logistics, production, and marketing actions across the channel, thereby seeking to optimize the entire system's performance rather than individual players' outcomes. Such a system often results in greater efficiency and a more streamlined distribution and marketing process.