Exclusive contracts and Open Contracts

Contract attaches two or more parties for working on particular task. Exclusive contract prohibits the changes in the agreements without involving related party. Along with this, involvement of outer party is avoided in this type of contracts (Segal, & Whinston, 2002). In open contract, parties can change the terms of contract without mutual understanding. Both the contracts have their own importance but marketing strategy is also important.

Marketing strategy allocates the resources and helpful for achieving the marketing objective. Marketing strategy supports the organization for handling the sellers, distributer, and sales force etc. marketing strategy also supports the contracts through its policy and objective. So it is necessary for the organization that develops marketing strategy firs before the contract.

References;
Segal, I. R. & Whinston, M. D. (2002). Exclusive contracts and protection of investments. RAND Journal of Economics, 31(4), pp. 603–633