Question

In a corporate vertical marketing system, a single company owns all levels of production and distribution. For example, Apple sells the products it designs and manufactures through its own retail stores. What is this type of marketing system called?

1) Horizontal marketing system
2) Vertical marketing system
3) Multichannel marketing system
4) Direct marketing system

Answer 1

The system where a single company owns all levels of production and distribution is called a Vertical Marketing System, as seen with Apple owning its design, manufacturing, and retail stores.

Step-by-step explanation:

When a single company owns all levels of production and distribution, this arrangement is referred to as a Vertical Marketing System. An example provided is that of Apple, which designs, manufactures, and sells its products through its own retail stores. This is a strategic move often done to protect against the loss of suppliers and to streamline the manufacturing process. In this case, the correct answer to the student's question is option 2) Vertical marketing system.