Managing Channel Relationships: Toward an Identification of Effective Promotional Strategies in Vertical Marketing Systems

As it is stated in the literature, relationship marketing refers to establishing, developing, and maintaining successful relational exchanges. Promotion is one of the key variables of the marketing mix that plays a crucial role in this process. Accordingly, this paper takes the first step toward an identification of effective promotional strategies in channels. More specifically, the paper presents an examination of the interaction between promotion and power balance in vertical marketing systems from the producer's as well as the dealer's perspective.