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12behavioral
12behavioral
12behavioral
12behavioral
12behavioral
12behavioral
12behavioral
12behavioral
12behavioral
12behavioral
12behavioral
12behavioral
12behavioral
12behavioral
12behavioral
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12behavioral

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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 <ul><li>Marketing Channels are not just economic systems </li></ul><ul><li>Marketing Channels are also Social Systems </li></ul><ul><li>Therefore, the same behavioral processes existing in all Social systems also exist in Marketing Channels </li></ul>
  • 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 <ul><li>Competition </li></ul><ul><li>Object centered </li></ul><ul><li>Indirect </li></ul><ul><li>Impersonal </li></ul>Conflict ≠ Competition Conflict > Competition <ul><li>Conflict </li></ul><ul><li>Direct </li></ul><ul><li>Personal </li></ul><ul><li>Opponent centered </li></ul>
  • 6. Causes of Channel Conflict <ul><li>Role Incongruities </li></ul><ul><li>Resource Securities </li></ul><ul><li>Perceptual Differences </li></ul><ul><li>Expectational Differences </li></ul><ul><li>Decision Damping Disagreements </li></ul><ul><li>Goal Incompatibilities </li></ul><ul><li>Communicational Difficulties </li></ul>
  • 7. Effects of Channel Conflict No Effect Negative Effect Positive Effect Multiple Effects Over Different Ranges
  • 8. Managing Channel Conflict (I) <ul><li>Conflict is inherent in marketing channels </li></ul><ul><li>Many causes: so conflict is pervasive </li></ul><ul><li>Conflict can affect channel efficiency </li></ul>First of all must recognize that:
  • 9. Managing Channel Conflict (II) <ul><li>Detect Channel Conflict </li></ul><ul><ul><ul><li>Informal communication system </li></ul></ul></ul><ul><ul><ul><li>Marketing Channel Audit </li></ul></ul></ul><ul><ul><ul><li>Distributors’ advisory councils </li></ul></ul></ul><ul><li>Appraise Effects of Conflict </li></ul><ul><ul><ul><li>Negative </li></ul></ul></ul><ul><ul><ul><li>Positive </li></ul></ul></ul><ul><ul><ul><li>No effect </li></ul></ul></ul><ul><li>Resolve Conflict </li></ul><ul><ul><ul><li>Have a dialogue over lunch all the way to going to court </li></ul></ul></ul>
  • 10. Power in Marketing Channels <ul><li>Power Defined: </li></ul>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 <ul><li>Reward Power </li></ul><ul><li>Coercive Power </li></ul><ul><li>Legitimate Power </li></ul><ul><li>Referent Power </li></ul><ul><li>Expert Power </li></ul>
  • 12. Using Power in Marketing Channels <ul><li>Identifying available power bases </li></ul>What “buttons” are available and which ones should be pushed Selecting and using appropriate bases
  • 13. Role in Marketing Channels <ul><li>Set Prescriptions defining what the behavior of a position member should be. </li></ul>Role Defined:
  • 14. Communication in Marketing Channels <ul><li>Flow of information that enables channel members to send and receive messages </li></ul>Communication Defined:
  • 15. Problems “Noise” in Channel Communications <ul><li>Differing Goals </li></ul><ul><li>Language Differences </li></ul><ul><li>Perceptual Differences </li></ul>

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