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The three main types of vertical marketing systems are corporate, contractual, and administered systems. Corporate vertical marketing systems involve a single company owning multiple levels of the distribution channel, ensuring tight control over the entire process. Contractual systems are characterized by formal agreements between independent firms at different stages of production and distribution, such as franchises or wholesaler-retailer partnerships. Administered systems rely on the power of one company to coordinate and manage the entire channel through influence rather than ownership or contracts, often seen in dominant retailers managing supplier relationships.

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6mo ago

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