VERTICAL MARKETING SYSTEM(VMS)<br />Producer + wholesaler + retailer acting as unified system <br />One channel own other or franchise them <br />There are a three type of VMS<br />Corporate VMS – It combine stage of production + distribution under one ownership .<br />
CONT………..<br /> Administered VMS – Coordinate successive stage of production & distribution through size & power of one member.<br />EX- Kodak & Gillette are able to cooperate fron there reseller .<br />Contractual VMS – consist of independent firm at different level like- Whole seller , Retailer , franchise ..<br />
HORIZONTAL MARKETING SYSTEM<br />There two or more unrelated company put together to exploit market opportunity .<br />EX- Coca cola & HUL tie up for bottling & distribution of Lipton .<br />
INTERGRATED MULTICHANNEL MARKETING<br />One single firm uses two or more marketing channel to reach one customer .<br />Company get three thing adding channel <br />Increase market coverage <br />Lower channel cost <br />More customized selling<br />EX- Adding Technical sales to sell more<br />
CHANNEL CONFLICT<br />It occurs when one channel member action prevent another channel from achieving its goal EX- Oracle corp.<br /> TYPES OF CONFLICT<br />Vertical conflict – conflict between different level within channel EX- HUL come with conflict with distributor of Kerala ….<br />
CONT………..<br />Horizontal conflict – Conflict Between member at same level within channel <br />EX- dealer frequently get into conflict with each other for domain <br />Multichannel conflict – when manufacturer has stabilized two or more channel and sell to same market . EX- Escort tractor company through dealer and web marketing ..<br />
CAUSES OF CHANNEL CONFLICT<br />Goal Incompatibility<br />Unclear role and right <br />Difference in perception<br />Intermediaries dependent on manufacturer<br />
MANAGING CHANNEL CONFLICT<br />Adaptation of super ordinate goal – come to agreement on fundamental goal.<br />Exchange of employee – Between dealer and executive .<br />Joint membership in trade association – <br />EX- good corporation between two company <br />Co-optation – effort of one organization to win support of another organization by including them as a member .<br />
CONT……..<br />Diplomacy , mediation & arbitration <br />Legal resource – Channel partner may choose to file a lawsuit.<br />
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