DECADECA Travel and Tourism Practice Exam

Which term describes a vertical marketing system directly related to franchised organizations?

1. Corporate Franchise System

2. Corporate VMS

3. Franchise Distribution System

4. Cooperative Marketing Network

The correct answer is: Corporate VMS

The term that describes a vertical marketing system directly related to franchised organizations is the Franchise Distribution System. This system is specifically designed for franchises, where a franchisor grants the rights to a franchisee to operate using its brand and business model. The Franchise Distribution System integrates the efforts of both the franchisor and franchisees to create a cohesive marketing strategy that benefits all parties involved. In this system, the franchisor usually provides not only the brand name but also marketing assistance, training, and a range of operational guidelines. This creates a unified approach to distribution, ensuring consistency in customer experience and brand messaging across all franchise locations. The close relationship between franchisor and franchisee exemplifies a cooperative effort to market the products or services offered, fostering a strong identity for the brand on a larger scale. The other terms do not specifically pertain to the franchising structure in the same way. The Corporate Franchise System implies a direct ownership model rather than a franchising model, while Cooperative Marketing Network suggests a group of independent marketers collaborating, which doesn't capture the franchise relationship accurately. The Corporate VMS, or Vertical Marketing System, generally refers to a system controlled by a single entity rather than a franchising dynamic where individual franchisees operate under a common brand. Thus,