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How does the channel captain idea differ among corporate, administered, and contractual vertical marketing systems with particular reference to the use of different forms of influence available to firms?

Marketing Dec 24, 2020

How does the channel captain idea differ among corporate, administered, and contractual vertical marketing systems with particular reference to the use of different forms of influence available to firms?

Expert Solution

Channel captain is referred as any contractor, an organization, any kind of firm whether it is partnership, and so on. It possesses a huge responsibility of making the reach of product to the customers. It looks for the direction of the distribution channel. It has different approaches to each type of marketing system.

Corporate marketing system is the system in which manufacturer looks for the distribution itself whereas administered marketing system implies the distribution channel is controlled by one member who is involved in this channel system. And the contractual marketing system provides the marketing tasks to the contractors.

All of these marketing systems are different and the approaches used are also different. Therefore, these put different influences on the firms as if the firm is tackling with the luxury and specialized product, then the channel captain would owe towards the corporate marketing system. If the firms tackle with the product which requires regular screening and proper communication, then the channel captain would owe towards the administered marketing system. And if the firm tackles with the common product or dealing with the popular brand, then the channel captain strives towards the contractual vertical marketing system. Channel captain unfolds its nature in relation of the required marketing for the firm.

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