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  • 1. Marketing 624 Channels of Distribution Management Behavioral Processes in Marketing Channels Dr. Bert Rosenbloom Professor of Marketing and Rauth Chair in Electronic Marketing
  • 2. Behavioral Processes in Marketing Channels
    • Marketing Channels are not just economic systems
    • Marketing Channels are also Social Systems
    • Therefore, the same behavioral processes existing in all Social systems also exist in Marketing Channels
  • 3. Behavioral Processes in Marketing Channels The behavioral processes of most relevance to marketing channels are: Conflict Power Role Communications “noise”
  • 4. Conflict Defined When one Party perceives the behavior of another party in the social system to be impeding the attainment of its goals, a state of conflict exists .
  • 5. Conflict Compared to Competition
    • Competition
    • Object centered
    • Indirect
    • Impersonal
    Conflict ≠ Competition Conflict > Competition
    • Conflict
    • Direct
    • Personal
    • Opponent centered
  • 6. Causes of Channel Conflict
    • Role Incongruities
    • Resource Securities
    • Perceptual Differences
    • Expectational Differences
    • Decision Damping Disagreements
    • Goal Incompatibilities
    • Communicational Difficulties
  • 7. Effects of Channel Conflict No Effect Negative Effect Positive Effect Multiple Effects Over Different Ranges
  • 8. Managing Channel Conflict (I)
    • Conflict is inherent in marketing channels
    • Many causes: so conflict is pervasive
    • Conflict can affect channel efficiency
    First of all must recognize that:
  • 9. Managing Channel Conflict (II)
    • Detect Channel Conflict
        • Informal communication system
        • Marketing Channel Audit
        • Distributors’ advisory councils
    • Appraise Effects of Conflict
        • Negative
        • Positive
        • No effect
    • Resolve Conflict
        • Have a dialogue over lunch all the way to going to court
  • 10. Power in Marketing Channels
    • Power Defined:
    The capacity of one channel member to get another channel member to do something that he otherwise would not have done.
  • 11. Bases of Power for Channel Control 1st Place
    • Reward Power
    • Coercive Power
    • Legitimate Power
    • Referent Power
    • Expert Power
  • 12. Using Power in Marketing Channels
    • Identifying available power bases
    What “buttons” are available and which ones should be pushed Selecting and using appropriate bases
  • 13. Role in Marketing Channels
    • Set Prescriptions defining what the behavior of a position member should be.
    Role Defined:
  • 14. Communication in Marketing Channels
    • Flow of information that enables channel members to send and receive messages
    Communication Defined:
  • 15. Problems “Noise” in Channel Communications
    • Differing Goals
    • Language Differences
    • Perceptual Differences