A Producer Might Own the Intermediary at the Next Level

question 209

Multiple Choice

A producer might own the intermediary at the next level down in a channel. This practice, called forward integration, is exemplified by Ralph Lauren, which manufactures clothing and also owns apparel shops. This is an example of

• A)a corporate vertical marketing system.
• B)an integrated marketing system.
• C)a contractual vertical marketing system.
• D)a corporate horizontal marketing system.
• E)a contractual horizontal marketing system.

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Definitions:

Dividend Payout Ratio

The portion of earnings a company pays to its shareholders in the form of dividends, expressed as a percentage of the company's total net income.

Retained Earnings

Profits that a company has earned to date, less any dividends or other distributions paid to shareholders, often used for reinvestment in the business.

Planning Assumption

Planning assumption involves the underlying assumptions or estimations made during the planning phase of a project or strategy, which guide decision-making and expectations for the future.

Planning Period

The length of time for which an organization prepares its strategies and allocates its resources.