Question

Under a ________ marketing system, independent production and distribution firms integrate their efforts on a contractual basis to obtain greater functional economies and marketing impact than they could achieve alone.

Answer 1

contractual vertical

Step-by-step explanation:

A vertical marketing system can be defined as a form of cooperation that exists between the different levels that makes up a distribution channel. The individuals in the channel ensure that they work in unity inorder to accelerate the rate of efficiency.

The three elements that constitutes a a vertical marketing system include:

- Producer

- Wholesaler

- Retailer

In a corporate vertical marketing system a single organization is responsible for production, development, marketing, and distribution of a particular product. All levels of the distribution channel is handled by a single company.