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Channel Relationship

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Jigar mehta
Jigar mehta

The document discusses various topics related to channel relationships, including types of channel relationships, channel control, channel power, and conflict management. It defines discrete and rational exchange relationships. It also describes sources of power and different negotiation strategies like accommodating, avoiding, compromising, and competing. The document provides case studies on conflicts between Johnson & Johnson and stockists and between Cadbury and Future Group over pricing.

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Channel Relationship
Contents Channel Relationship 1 Channel Control 2 Channel Power 3 Channel Conflict 4 5 Conflict Management 6 Negotiation Strategies 7 Case Study 1
Channel Relationship What is channel relationship? What is the importance of Channel Relationship?
Channel Relationship ,[object Object],[object Object],[object Object],[object Object]
Channel Relationship Transaction Specific Relationship or Discrete relationship Types of Channel Relationships Rational Exchange relationship 1 2
Channel Relationship ,[object Object],[object Object],[object Object]
Channel Relationship ,[object Object],[object Object],[object Object]
Channel Control ,[object Object],Zone of indifference Optimize resource deployment Improved co-ordination of activities
Channel Control ,[object Object],[object Object],[object Object]
Channel Control ,[object Object],Pay- Off Function Tolerance Function Distributors profit earned Zone of Indifference Supplier Authority
Channel Power ,[object Object],[object Object],[object Object],[object Object],[object Object]
Channel Power ,[object Object],[object Object]
Channel Power ,[object Object],1 Channel members do not incline naturally towards coordinated behavior, 3 Channel power is necessary to alter actions by channel members to induce a more coordinated outcome. 2 The lack of natural inclination in this direction can and does cause sub-optimal channel outcomes,
Channel Power Sources of Power 1. Reward Power 2. Coercive Power 3. Expert Power 5. Legitimate Power 4. Referent Power
Source: Adapted from Narus & Anderson 1998 Promotional Support Training Market Research Company Policies Distributors firm incentives Responsiveness Systems Technical Assistance Incentive Programme Distributor Sales force Incentives - Financial returns - Quality Products - Comprehensive price - Reliable delivery -National Reputation Channel Core Elements Capability Development Programmes Components of channel offering Manufacturer Sales force Incentives
Channel Conflict ,[object Object],Attitudinal sources of Conflict Structural sources of Conflict Cognitive /Affective conflict Manifest conflict Conflict Outcomes Conflict resolution
Channel Conflict ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Channel Conflict ,[object Object],[object Object],[object Object],[object Object],[object Object]
Conflict Management ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Two mechanisms for Channel Conflict Management
Conflict Management Latent Conflict Felt Conflict Manifest Conflict ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Negotiation Conflict Management methods at different stages of conflict
Negotiation Strategies ,[object Object]
Negotiation Strategies Types Of Negotiation Strategy Accommodating Avoiding Compromising Collaborative or Problem Solving Competing or Aggressive
Negotiation Strategies Accommodative Collaborative/Problem Solving Compromise Avoidance Competitive/Aggressive High Concern for own interest Low Low High Concern for the other’s interest
Negotiation Strategies ,[object Object],[object Object],[object Object],[object Object],[object Object]
Case Studies ,[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
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Channel Relationship

  • 2. Contents Channel Relationship 1 Channel Control 2 Channel Power 3 Channel Conflict 4 5 Conflict Management 6 Negotiation Strategies 7 Case Study 1
  • 3. Channel Relationship What is channel relationship? What is the importance of Channel Relationship?
  • 4.
  • 5. Channel Relationship Transaction Specific Relationship or Discrete relationship Types of Channel Relationships Rational Exchange relationship 1 2
  • 6.
  • 7.
  • 8.
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  • 10.
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  • 12.
  • 13.
  • 14. Channel Power Sources of Power 1. Reward Power 2. Coercive Power 3. Expert Power 5. Legitimate Power 4. Referent Power
  • 15. Source: Adapted from Narus & Anderson 1998 Promotional Support Training Market Research Company Policies Distributors firm incentives Responsiveness Systems Technical Assistance Incentive Programme Distributor Sales force Incentives - Financial returns - Quality Products - Comprehensive price - Reliable delivery -National Reputation Channel Core Elements Capability Development Programmes Components of channel offering Manufacturer Sales force Incentives
  • 16.
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  • 20.
  • 21.
  • 22. Negotiation Strategies Types Of Negotiation Strategy Accommodating Avoiding Compromising Collaborative or Problem Solving Competing or Aggressive
  • 23. Negotiation Strategies Accommodative Collaborative/Problem Solving Compromise Avoidance Competitive/Aggressive High Concern for own interest Low Low High Concern for the other’s interest
  • 24.
  • 25.
  • 26.
  • 27. Thank us for educating you!