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Question

This is part of my homework, but I thought people who knew marketing may have a better insite on this.. K the question is


Warner Bros. sells cookie jars, puzzles, photo albums, and other items featuring its popular cartoon characters directly through its own retail outlets. This is an example of

the choice of answers are

Channel Leadership
channel cooperation
. channel conflict
horizontal channel integration
vertical channel integration


Which would it be and why?

Answer 1

Let's review a couple of definitions:

- Channel leadship occurs when an organization exerts power over other independent companies in its supply chain to meet its desired objectives.
- Channel cooperation occurs when each independent organization will gain something from other members.
- Channel conflict occurs when organizations have competing interests, misunderstandings about role expectations, communication difficulties, and intermediaries’ overemphasis on competing products.
- Horizontal channel integration occurs when an organization integrates by merging with other organizations at the same level in a marketing channel.
- Vertical channel integration occurs when an organization combines two or more stages of the channel under one management.


Your example discusses two organizational entities: A) Warner Brothers branded products B) Retail outlets. This example is not a demonstration of power, not an example of how two organizations are cooperating nor conflicting and is not an example of combining equal organizations. Since Warner Brothers owns both the products and the retail channels , it owns and manages two distict phases of the supply chain process. Therefore this is a classic example of vertical channel integration.

Answer 2

Vertical channel intergration. Because Warner Brothers owns each step in the channel - from creating the characters to licensing them to retailing the products. Vertical.