Vertical integration with ownership of organisations at several levels into the channel network constitutes a corporate VMS. Manufacturers may establish their own retail outlets such as brewers or oil companies. Retailers may own manufacturing processing or packaging plants.
More concerted co ordination is possible if there is a contractual agreement. Several variants have been developed. The Co-operative Movement represents a very particular kind of contractual VMS. Owned by its customers the Co-op has its own supply organisation which even does some manufacturing and farming.
If there is some agreement, tacit or overt on the apportionment and management of activities within the channel then the system can be described as being «administered». The administrator can be at any level in the channel and typically would be a powerful manufacturer or retailer.
So far, we have concentrated upon conventional marketing channels composed of several independent organisations, often with competing objectives and often with much room for conflict. Such consensus or conventional channels represent one extreme on a spectrum of degree of centralised control. In conventional channels there is often virtually no degree of centralised control.
Complex channels with intermediaries or numerous service points give rise to the need to organize and co-ordinate activities. If it is not a vertically integrated channel under the control of one organization then ways have to be found to obtain the co-operation of independent organizations.
In today’s British economy most exchanges are initiated by sellers and they need to devise mechanisms to move product to buyer or buyer to service point. In both cases there will be the need for an information flow about what is on offer.
Decisions about how to distribute products and services to consumers are among the most important facing marketing management. These marketing channel decisions directly affect every other marketing decision.
Commercialisation represents the final phase of the NPD process. During which final strategy adjustments are made and the product launched. Test market findings are acted upon.
For some services many of the techniques in product market testing can be directly applied. Some service companies have major advantages in test marketing. If a nation-wide firm has a comprehensive network of distributed service points then it has considerable opportunities for testing.
There are three important characteristics that distinguish industrial markets in the context of market testing. Firstly, it is probable that industrial marketers will have much closer relationships with customers than is normal in consumer markets.
