Comparing the Current Effects and Carryover of National-, Regional-, and Local-Sponsor Advertising

Coordinating and controlling advertising strategy within contractual and administered vertical marketing systems (VMSs) can be a complex task given the number of channel members involved in the process.

Comparing the Current Effects and Carryover of National-, Regional-, and Local-Sponsor Advertising

J. Duncan Herrington College of Business and Economics, Radford University

Wiliam A. Dempsey College of Business and Economics, Radford University

INTRODUCTION

Anywhere from 70 to 80 percent of products and services reach consumers through one of three types of vertical marketing systems (VMS)—corporate, administered, and contractual (Kotler, 2003). Forward integrated corporate VMS (e.g., Shenvin Williams) exercise complete control over their advertising strategy such that both national and local advertising are planned and executed in a coordinated fashion to maximxze sales and profitability. For such firms the...

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