Integration and managing channel conflicts

1. How should companies
integrate channels and
manage channel
conflict ?

2. An INTEGRATED MARKETING CHANNEL SYSTEM is one in which the
strategies and tactics of selling through one channel reflect the strategies and
tactics of selling through one or more other channels.

3. Adding
channels
increase
market
coverage
1

4. Second
benefit is
lower
channel
cost

5. 3
Third is
more
customised
selling

6. Companies should use different sales for different-sized business customers:
• > direct sales force for large customers
> telemarketing for midsize customers
> distributors for small customers

7. CHANNEL CONFLICT is generated when one channel
member’s actions prevent another channel from achieving its goal.

8. MANAGING CHANNEL CONFLICTS

9. JOINT MEMBERSHIP : Marketers can encourage joint memberships in trade associations.JOINT MEMBERSHIP : Marketers can encourage joint memberships in trade associations.

10. DUAL COMPENSATION : It pays existing channels for sales made through new channels.DUAL COMPENSATION : It pays existing channels for sales made through new channels.

11. LEGAL RECOURSE : If nothing else prove effective, a channel partner may choose to file a
lawsuit.
LEGAL RECOURSE : If nothing else prove effective, a channel partner may choose to file a
lawsuit.

12. EMPLOYEE EXCHANGE : TO exchange persons between two or more channel levels.EMPLOYEE EXCHANGE : TO exchange persons between two or more channel levels.

13. STRATEGIC JUSTIFICATION : A convincing strategic justification serve distinctive segments
and do not compete as much as they think can reduce potential for conflict among channel
members.
STRATEGIC JUSTIFICATION : A convincing strategic justification serve distinctive segments
and do not compete as much as they think can reduce potential for conflict among channel
members.

14. CO-OPTATION : Co-optation is an effort by one organisation to win the support of the leaders of
another by including them into advisory councils, board of directors, etc.
CO-OPTATION : Co-optation is an effort by one organisation to win the support of the leaders of
another by including them into advisory councils, board of directors, etc.

15. SUPERORDINATE GOALS : Channel members can come to an agreement on the
superordinate goal they are jointly seeking.
SUPERORDINATE GOALS : Channel members can come to an agreement on the
superordinate goal they are jointly seeking.

16. DIPLOMACY, MEDIATION AND ARBITRATION : When conflict is acute, the parties resort to
these stronger means.
DIPLOMACY, MEDIATION AND ARBITRATION : When conflict is acute, the parties resort to
these stronger means.

17. Created by NILESH RANA of IIT BHU
under the guidance of
Prof. SAMEER MATHUR, IIM LUCKNOW
www.iiminternship.com
Created by NILESH RANA of IIT BHU
under the guidance of
Prof. SAMEER MATHUR, IIM LUCKNOW
www.iiminternship.com
Thank you .Thank you .