To serve its target market more efficiently, Medusa Cement Manufacturers purchased (1) a gravel pit to make sure it always had a ready supply of gravel and (2) a company that manufactures cement trucks. This is an example of a(n):
A) contractual VMS.
B) administered VMS.
C) wholesaler-sponsored voluntary chain.
D) corporate VMS.
E) franchise system.

Question

Quizplus · Accepted Answer

Medusa Cement Manufacturers is engaging in a corporate vertical marketing system (VMS) by purchasing both a supplier (the gravel pit) and a company that manufactures a product related to its core business (cement trucks). This integration allows the company to control more stages of its supply chain, from raw materials to production equipment.

To Serve Its Target Market More Efficiently, Medusa Cement Manufacturers