When producers manage all marketing functions at the retail level they are employing a(n) distribution system.
Question
When producers manage all marketing functions at the retail level they are employing a(n) distribution system.
Solution
The producers are employing a Vertical Marketing System. In this system, producers extend their reach to the retail level, managing all marketing functions such as distribution, selling, promotion, market research and customer service. This can be done through corporate systems (where the producer owns the retail), contractual systems (where the producer and retailer have an agreement), or administered systems (where the producer has significant power and influence over the retailer).
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