Which of the following is true of a vertical marketing system?
A) It is formed when two or more companies at one level join together to follow a new marketing opportunity.
B) It is formed when a single firm sets up two or more marketing channels to reach one or more customer segments.
C) It does not give overall power to any one member in the channel.
D) It has each channel member acting as a separate business unit trying to maximize its own profits.
E) It has one channel member owning all the other channel members or has contracts with all other channel members.

A vertical marketing system can be defined as a cooperative advertising strategy that comprises of the various main members of the distribution channels such as wholesalers, producers, and retailers, that a business uses to meet the unending needs and wants of their consumers or customers.

Hence, the true statement about a vertical marketing system is that it has one channel member owning all the other channel members or has contracts with all other channel members.

Additionally, the vertical marketing system is basically divided into three (3) main categories and these are; corporate vertical marketing system, contractual vertical marketing system, and administered vertical marketing system.