This document discusses distribution channels and sources of conflicts within channels. It begins by defining distribution channels and describing the main types: direct, indirect, and hybrid. It then discusses the different types of conflicts that can occur, including latent, perceived, felt, and manifest conflicts. The major sources of conflicts identified are differing goals between channel members and perceptions of reality. Strategies for resolving conflicts discussed include institutionalization, information sharing, third-party mechanisms like mediation and arbitration, building relational norms, and using economic incentives. Specific examples are provided to illustrate different types of conflicts and resolution strategies.
This document discusses managing conflict in marketing channels. It defines channel conflict as opposition between channel members due to separate goals and limited resources. Some conflict is normal and can be productive by improving communication and strategy development. However, high conflict damages channel performance. Sources of conflict include competing goals, differing perceptions of reality, clashes over domains or responsibilities, and intra-channel competition from multiple channels or gray markets. Managing conflict requires understanding its nature, importance, and frequency, then addressing issues through communication, coordination, and segmentation to distinguish channel members.
This document discusses marketing channels and channel management. It begins by defining marketing channels as the set of intermediaries that help make a product available to end users. It then discusses different types of channels like integrated channels and discusses managing channel conflicts. It also discusses the functions of channel members, flows in channels, and how to design channels by analyzing needs and alternatives. It covers topics like e-commerce, m-commerce, and a case study on Dell's direct distribution strategy.
Channel Power & Conflict and Channel DynamicsNavin Raj Saroj
This document discusses channel power, conflict, and dynamics. It defines channel power as a member's ability to influence other members' behavior. The five bases of power are reward, coercion, expertise, reference, and legitimacy. Channel conflict can occur vertically between different levels, horizontally between members at the same level, between different types of members, and with multiple channels. Conflicts arise from incompatible goals, unclear roles, and dependence. Managing conflict involves communication, councils, co-optation, arbitration, and mediation. Channel dynamics include gaining member acceptance, physical distribution, legal issues like exclusivity and tying arrangements, and factors like output, lot size, waiting time, convenience, variety, and service.
This PPT waz submitted to IIPM Delhi. Our group i.e. Mehfuz,Manish,Divyank,Shikha,Yuvaraj...
If one needs n e more ppts den contact on mefuz@yahoo.co.in
This document discusses different types of channel conflicts that can occur between members of a distribution channel. It defines channel conflict and notes that while conflict is not always undesirable, it needs to be managed properly. The document outlines various types of channel conflicts including latent, perceived, felt, manifest, and functional conflicts. It also discusses reasons for vertical conflicts between manufacturers and intermediaries as well as horizontal and inter-type conflicts. Finally, it proposes several techniques for resolving channel conflicts such as adopting superordinate goals, exchanging personnel, co-optation, joint trade associations, diplomacy, and using third-party arbitration or mediation.
The document discusses pharmaceutical marketing channels and physical distribution management. It describes common pharmaceutical marketing channels like sales representatives, direct-to-consumer advertising, and digital marketing. It also discusses designing marketing channels, selecting appropriate channels, and managing conflict between channels. Finally, it outlines key tasks in physical distribution management like transportation, warehousing, and inventory management.
Channels of distribution ppt @ bec doms bagalkot mba marketingBabasab Patil
The document discusses channels of distribution and distribution channels. It defines distribution channels as a network of interconnected firms that provide sellers a means to market their goods and buyers a means to purchase goods efficiently. Distribution channels involve various activities like ordering, handling, storage, promotion and financial operations. There can be tensions within distribution channels regarding the costs and benefits each member provides. The document discusses different forms of distribution channels and strategies for designing distribution intensity and push vs pull strategies.
This document provides an overview of channels of distribution, including the nature and roles of intermediaries, designing distribution channels, selecting channel types, managing conflicts within channels, and considerations for international distribution channels. It discusses producer-retailer conflicts, legal considerations for dealer selection and exclusive contracts, and how the internet is changing distribution models.
This document discusses managing conflict in marketing channels. It defines channel conflict as opposition between channel members due to separate goals and limited resources. Some conflict is normal and can be productive by improving communication and strategy development. However, high conflict damages channel performance. Sources of conflict include competing goals, differing perceptions of reality, clashes over domains or responsibilities, and intra-channel competition from multiple channels or gray markets. Managing conflict requires understanding its nature, importance, and frequency, then addressing issues through communication, coordination, and segmentation to distinguish channel members.
This document discusses marketing channels and channel management. It begins by defining marketing channels as the set of intermediaries that help make a product available to end users. It then discusses different types of channels like integrated channels and discusses managing channel conflicts. It also discusses the functions of channel members, flows in channels, and how to design channels by analyzing needs and alternatives. It covers topics like e-commerce, m-commerce, and a case study on Dell's direct distribution strategy.
Channel Power & Conflict and Channel DynamicsNavin Raj Saroj
This document discusses channel power, conflict, and dynamics. It defines channel power as a member's ability to influence other members' behavior. The five bases of power are reward, coercion, expertise, reference, and legitimacy. Channel conflict can occur vertically between different levels, horizontally between members at the same level, between different types of members, and with multiple channels. Conflicts arise from incompatible goals, unclear roles, and dependence. Managing conflict involves communication, councils, co-optation, arbitration, and mediation. Channel dynamics include gaining member acceptance, physical distribution, legal issues like exclusivity and tying arrangements, and factors like output, lot size, waiting time, convenience, variety, and service.
This PPT waz submitted to IIPM Delhi. Our group i.e. Mehfuz,Manish,Divyank,Shikha,Yuvaraj...
If one needs n e more ppts den contact on mefuz@yahoo.co.in
This document discusses different types of channel conflicts that can occur between members of a distribution channel. It defines channel conflict and notes that while conflict is not always undesirable, it needs to be managed properly. The document outlines various types of channel conflicts including latent, perceived, felt, manifest, and functional conflicts. It also discusses reasons for vertical conflicts between manufacturers and intermediaries as well as horizontal and inter-type conflicts. Finally, it proposes several techniques for resolving channel conflicts such as adopting superordinate goals, exchanging personnel, co-optation, joint trade associations, diplomacy, and using third-party arbitration or mediation.
The document discusses pharmaceutical marketing channels and physical distribution management. It describes common pharmaceutical marketing channels like sales representatives, direct-to-consumer advertising, and digital marketing. It also discusses designing marketing channels, selecting appropriate channels, and managing conflict between channels. Finally, it outlines key tasks in physical distribution management like transportation, warehousing, and inventory management.
Channels of distribution ppt @ bec doms bagalkot mba marketingBabasab Patil
The document discusses channels of distribution and distribution channels. It defines distribution channels as a network of interconnected firms that provide sellers a means to market their goods and buyers a means to purchase goods efficiently. Distribution channels involve various activities like ordering, handling, storage, promotion and financial operations. There can be tensions within distribution channels regarding the costs and benefits each member provides. The document discusses different forms of distribution channels and strategies for designing distribution intensity and push vs pull strategies.
This document provides an overview of channels of distribution, including the nature and roles of intermediaries, designing distribution channels, selecting channel types, managing conflicts within channels, and considerations for international distribution channels. It discusses producer-retailer conflicts, legal considerations for dealer selection and exclusive contracts, and how the internet is changing distribution models.
This document discusses pharmaceutical marketing channels and physical distribution management. It describes the common pharmaceutical marketing channels including sales representatives, direct-to-consumer advertising, digital marketing, medical conferences, direct mail, and retail pharmacies. It also discusses designing marketing channels, selecting appropriate channels, potential conflicts within channels, and key tasks in physical distribution management like transportation, warehousing, and order processing.
This document discusses marketing channels and distribution. It defines distribution channels as the flow of goods from production to the consumer. Traditional distribution involves manufacturers selling directly to consumers without intermediaries. The document outlines strategies for direct sales and notes advantages of introducing brokers, which include established retailer relationships but higher fees. E-commerce changes distribution by allowing direct sales and reducing intermediaries. The document also defines zero-level to three-level distribution channels involving varying numbers of intermediaries like distributors and wholesalers. Finally, it discusses types of channel conflicts like horizontal conflicts between same-level players and vertical conflicts between different channel members.
- The document discusses marketing channels and value networks, explaining the functions and types of intermediaries involved in moving goods from producers to consumers. It also examines how companies can design effective channel strategies and make decisions around channel management, integration, and issues in e-commerce and mobile marketing channels. Managing conflicts between channels and building partnerships across the value network are also addressed.
Cadbury uses a multi-level marketing channel to distribute its chocolate products throughout India. Cadbury has manufacturing units that send products to depots in different states. The depots then send products to C&F agents, who distribute to local distributors in cities. The distributors then work to get products to local grocery stores where consumers make purchases. Choosing an effective marketing channel depends on factors like the product, market characteristics, manufacturer capabilities, and government regulations.
This Presentation discuss the third element of Marketing Mix i.e. Place it addresses Type of Marketing Channels, Alternative Marketing Channels, Hybrid Marketing Channel, Primary Goods Channels and Channel Selection Strategy.
Marketing channel & supply chain management (principles of marketing)Denni Domingo
1) A supply chain consists of upstream suppliers and downstream distribution channels that help produce and deliver products to customers. It is important for marketers to consider both the supply chain and demand chain in their planning.
2) Most producers use intermediaries like wholesalers and retailers to help distribute products through marketing channels to reach more customers. These intermediaries help bridge gaps in time, place, and ownership.
3) When designing marketing channels, companies must evaluate alternatives based on meeting customer needs while optimizing costs, control, and adaptability to changes in the environment. Managing relationships with strong channel partners is also important for success.
This document discusses distribution strategies and channels. It defines distribution as making products available for consumption and explains key concepts like push and pull strategies. The document outlines different types of marketing channels from direct to multichannel. It also discusses managing conflicts between channels and selecting strategies based on desired control, coverage and costs. Physical distribution tasks like order processing, inventory control and transportation are also summarized.
Strategic Marketing Decisions and Considerations - Madmarketingpro.comBobby Bruno
Here you will learn about what factors to pay attention to when developing a Marketing Mix. Marketers should have a strong understanding of various strategies and possible responses from the market, competitors, and consumers. You can see more like this on madmarketingpro.com
H:\Mba\6th Term\Markma\10 Questions For Designing And Managing Integated Mark...Arvin Matias
This document contains a series of questions and answers about marketing channels and buyer behavior. It discusses the following key points:
- There are four main categories of buyers: habitual shoppers, high-value deal seekers, variety-loving shoppers, and high-involvement shoppers.
- A second-level marketing channel involves at least three parties: a manufacturer, a wholesaler, and a retailer between the manufacturer and consumer.
- The main types of channel conflicts are vertical between different levels, horizontal between same levels, and multichannel between independent channels.
- Channel members' functions include facilitating exchange through agreements, storage, and transfer of ownership but not modifying the product itself.
Managing Conflict To Increase Channel CoordinationTICS
The document discusses various types of conflicts that can arise in marketing channels, including latent, perceived, felt, and manifest conflicts. It also discusses the major sources of conflicts, including competing goals between channel members, differing perceptions of reality, and clashes over domains. Some strategies for managing channel conflicts discussed include using information intensive mechanisms, third party mechanisms like mediators and arbitrators, and building relational norms around flexibility, information exchange, and solidarity between channel members. The document provides examples of how conflicts can arise between suppliers and resellers.
The document discusses various types of conflicts that can arise in marketing channels, including latent, perceived, felt, and manifest conflicts. It also discusses the major sources of conflicts, including competing goals between channel members, differing perceptions of reality, and clashes over domains. Some strategies for managing channel conflicts discussed include using information intensive mechanisms, third party mechanisms like mediators and arbitrators, and building relational norms around flexibility, information exchange, and solidarity between channel members. The document provides examples of how conflicts can arise between suppliers and resellers.
This document discusses channel conflict and resolution. It defines channel conflict as a situation where one channel member perceives another is preventing it from achieving its goals. There are four main types of conflicts: vertical, horizontal, inter-type, and multi-channel. Vertical conflicts occur between different levels in the distribution chain, like manufacturers and retailers. Horizontal conflicts are between members at the same level. Inter-type conflicts arise when intermediaries sell outside their normal product range. Multi-channel conflicts occur when a manufacturer uses multiple distribution channels to reach the same market. There are four stages of conflict: latent, perceived, felt, and manifest. The document outlines various strategies to resolve conflicts, including understanding the nature and source, and using styles like
Business bmal 590 marketing Education homework help.docxwrite5
This document provides an overview of key marketing concepts including the 4Ps (Product, Price, Promotion, Place), segmentation, targeting, positioning, distribution channels, marketing research, and strategic planning. It defines marketing as an exchange relationship between customers and companies. Key points covered include using the 4Ps and segmentation approaches like demographics to develop effective marketing strategies and assess product portfolios.
Organizational buying involves groups within a company deciding together on purchases for goods and services. This process considers needs, available alternatives, and influences within the buying center. It typically progresses through stages from problem recognition to performance review. Business marketers must understand these buying groups, centers, situations and stages to effectively target their marketing.
This document discusses marketing channels and channel management. It begins by defining key channel concepts like push and pull strategies, multichannel marketing, omnichannel marketing, and integrated marketing channels. It then covers channel functions, levels, and member functions. The rest of the document discusses channel design decisions, evaluating alternatives, managing channel members, and resolving conflicts.
This document discusses distribution management and distribution channels. It defines distribution management as overseeing the movement of goods from suppliers to point of sale, including packaging, inventory, warehousing, supply chain and logistics. A distribution channel is the chain of businesses that a good passes through to reach the end consumer. Distribution channels can be short or long and depend on the number of intermediaries. The roles of distribution channels include enhancing efficiency, smoothing the flow of goods and services, reducing transaction costs, facilitating search, and providing proximity to consumers with less required stock from producers. The document also discusses types of distribution channels, market intermediaries, and functions of intermediaries.
Chapter 8: Using Marketing Channels to Create Value for Customerstjamisonedu
This document discusses marketing channels and channel partners. It defines marketing channels as the path a product takes from producer to consumer, often involving intermediaries. Channel partners include wholesalers, retailers, distributors, and agents who perform important functions like storage, transportation, sales, and financing. The document examines different types of channel partners and strategies, including intensive vs selective distribution. It also covers channel conflicts, power dynamics, and how cooperation is achieved among members. Finally, it distinguishes between marketing channels and supply chains, noting the broader entities involved in supply chain management.
This document discusses pricing and distribution channels. It defines pricing as the process of determining the value a producer will receive for goods and services. Pricing depends on internal factors like costs and external factors like competition. Distribution channels refer to the path taken to deliver products to customers, and can be direct or indirect via intermediaries. Indirect channels include one-level, two-level, and three-level channels depending on the number of intermediaries. The document also discusses factors in choosing distribution channels and types of channels for services.
This chapter discusses supply chains and marketing channels. It begins by defining supply chain partners and describing views of supply chains. It then defines marketing channels and explains how channel members add value by bridging time, place and possession gaps. The chapter outlines different types of channel structures and behaviors, including how firms design, select, manage and motivate their marketing channels. It emphasizes the importance of collaboration between supply chain partners to improve overall system performance.
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This letter, written by Kellen Harkins, Course Director at Full Sail University, commends Anny Love's exemplary performance in the Video Sharing Platforms class. It highlights her dedication, willingness to challenge herself, and exceptional skills in production, editing, and marketing across various video platforms like YouTube, TikTok, and Instagram.
This document discusses pharmaceutical marketing channels and physical distribution management. It describes the common pharmaceutical marketing channels including sales representatives, direct-to-consumer advertising, digital marketing, medical conferences, direct mail, and retail pharmacies. It also discusses designing marketing channels, selecting appropriate channels, potential conflicts within channels, and key tasks in physical distribution management like transportation, warehousing, and order processing.
This document discusses marketing channels and distribution. It defines distribution channels as the flow of goods from production to the consumer. Traditional distribution involves manufacturers selling directly to consumers without intermediaries. The document outlines strategies for direct sales and notes advantages of introducing brokers, which include established retailer relationships but higher fees. E-commerce changes distribution by allowing direct sales and reducing intermediaries. The document also defines zero-level to three-level distribution channels involving varying numbers of intermediaries like distributors and wholesalers. Finally, it discusses types of channel conflicts like horizontal conflicts between same-level players and vertical conflicts between different channel members.
- The document discusses marketing channels and value networks, explaining the functions and types of intermediaries involved in moving goods from producers to consumers. It also examines how companies can design effective channel strategies and make decisions around channel management, integration, and issues in e-commerce and mobile marketing channels. Managing conflicts between channels and building partnerships across the value network are also addressed.
Cadbury uses a multi-level marketing channel to distribute its chocolate products throughout India. Cadbury has manufacturing units that send products to depots in different states. The depots then send products to C&F agents, who distribute to local distributors in cities. The distributors then work to get products to local grocery stores where consumers make purchases. Choosing an effective marketing channel depends on factors like the product, market characteristics, manufacturer capabilities, and government regulations.
This Presentation discuss the third element of Marketing Mix i.e. Place it addresses Type of Marketing Channels, Alternative Marketing Channels, Hybrid Marketing Channel, Primary Goods Channels and Channel Selection Strategy.
Marketing channel & supply chain management (principles of marketing)Denni Domingo
1) A supply chain consists of upstream suppliers and downstream distribution channels that help produce and deliver products to customers. It is important for marketers to consider both the supply chain and demand chain in their planning.
2) Most producers use intermediaries like wholesalers and retailers to help distribute products through marketing channels to reach more customers. These intermediaries help bridge gaps in time, place, and ownership.
3) When designing marketing channels, companies must evaluate alternatives based on meeting customer needs while optimizing costs, control, and adaptability to changes in the environment. Managing relationships with strong channel partners is also important for success.
This document discusses distribution strategies and channels. It defines distribution as making products available for consumption and explains key concepts like push and pull strategies. The document outlines different types of marketing channels from direct to multichannel. It also discusses managing conflicts between channels and selecting strategies based on desired control, coverage and costs. Physical distribution tasks like order processing, inventory control and transportation are also summarized.
Strategic Marketing Decisions and Considerations - Madmarketingpro.comBobby Bruno
Here you will learn about what factors to pay attention to when developing a Marketing Mix. Marketers should have a strong understanding of various strategies and possible responses from the market, competitors, and consumers. You can see more like this on madmarketingpro.com
H:\Mba\6th Term\Markma\10 Questions For Designing And Managing Integated Mark...Arvin Matias
This document contains a series of questions and answers about marketing channels and buyer behavior. It discusses the following key points:
- There are four main categories of buyers: habitual shoppers, high-value deal seekers, variety-loving shoppers, and high-involvement shoppers.
- A second-level marketing channel involves at least three parties: a manufacturer, a wholesaler, and a retailer between the manufacturer and consumer.
- The main types of channel conflicts are vertical between different levels, horizontal between same levels, and multichannel between independent channels.
- Channel members' functions include facilitating exchange through agreements, storage, and transfer of ownership but not modifying the product itself.
Managing Conflict To Increase Channel CoordinationTICS
The document discusses various types of conflicts that can arise in marketing channels, including latent, perceived, felt, and manifest conflicts. It also discusses the major sources of conflicts, including competing goals between channel members, differing perceptions of reality, and clashes over domains. Some strategies for managing channel conflicts discussed include using information intensive mechanisms, third party mechanisms like mediators and arbitrators, and building relational norms around flexibility, information exchange, and solidarity between channel members. The document provides examples of how conflicts can arise between suppliers and resellers.
The document discusses various types of conflicts that can arise in marketing channels, including latent, perceived, felt, and manifest conflicts. It also discusses the major sources of conflicts, including competing goals between channel members, differing perceptions of reality, and clashes over domains. Some strategies for managing channel conflicts discussed include using information intensive mechanisms, third party mechanisms like mediators and arbitrators, and building relational norms around flexibility, information exchange, and solidarity between channel members. The document provides examples of how conflicts can arise between suppliers and resellers.
This document discusses channel conflict and resolution. It defines channel conflict as a situation where one channel member perceives another is preventing it from achieving its goals. There are four main types of conflicts: vertical, horizontal, inter-type, and multi-channel. Vertical conflicts occur between different levels in the distribution chain, like manufacturers and retailers. Horizontal conflicts are between members at the same level. Inter-type conflicts arise when intermediaries sell outside their normal product range. Multi-channel conflicts occur when a manufacturer uses multiple distribution channels to reach the same market. There are four stages of conflict: latent, perceived, felt, and manifest. The document outlines various strategies to resolve conflicts, including understanding the nature and source, and using styles like
Business bmal 590 marketing Education homework help.docxwrite5
This document provides an overview of key marketing concepts including the 4Ps (Product, Price, Promotion, Place), segmentation, targeting, positioning, distribution channels, marketing research, and strategic planning. It defines marketing as an exchange relationship between customers and companies. Key points covered include using the 4Ps and segmentation approaches like demographics to develop effective marketing strategies and assess product portfolios.
Organizational buying involves groups within a company deciding together on purchases for goods and services. This process considers needs, available alternatives, and influences within the buying center. It typically progresses through stages from problem recognition to performance review. Business marketers must understand these buying groups, centers, situations and stages to effectively target their marketing.
This document discusses marketing channels and channel management. It begins by defining key channel concepts like push and pull strategies, multichannel marketing, omnichannel marketing, and integrated marketing channels. It then covers channel functions, levels, and member functions. The rest of the document discusses channel design decisions, evaluating alternatives, managing channel members, and resolving conflicts.
This document discusses distribution management and distribution channels. It defines distribution management as overseeing the movement of goods from suppliers to point of sale, including packaging, inventory, warehousing, supply chain and logistics. A distribution channel is the chain of businesses that a good passes through to reach the end consumer. Distribution channels can be short or long and depend on the number of intermediaries. The roles of distribution channels include enhancing efficiency, smoothing the flow of goods and services, reducing transaction costs, facilitating search, and providing proximity to consumers with less required stock from producers. The document also discusses types of distribution channels, market intermediaries, and functions of intermediaries.
Chapter 8: Using Marketing Channels to Create Value for Customerstjamisonedu
This document discusses marketing channels and channel partners. It defines marketing channels as the path a product takes from producer to consumer, often involving intermediaries. Channel partners include wholesalers, retailers, distributors, and agents who perform important functions like storage, transportation, sales, and financing. The document examines different types of channel partners and strategies, including intensive vs selective distribution. It also covers channel conflicts, power dynamics, and how cooperation is achieved among members. Finally, it distinguishes between marketing channels and supply chains, noting the broader entities involved in supply chain management.
This document discusses pricing and distribution channels. It defines pricing as the process of determining the value a producer will receive for goods and services. Pricing depends on internal factors like costs and external factors like competition. Distribution channels refer to the path taken to deliver products to customers, and can be direct or indirect via intermediaries. Indirect channels include one-level, two-level, and three-level channels depending on the number of intermediaries. The document also discusses factors in choosing distribution channels and types of channels for services.
This chapter discusses supply chains and marketing channels. It begins by defining supply chain partners and describing views of supply chains. It then defines marketing channels and explains how channel members add value by bridging time, place and possession gaps. The chapter outlines different types of channel structures and behaviors, including how firms design, select, manage and motivate their marketing channels. It emphasizes the importance of collaboration between supply chain partners to improve overall system performance.
Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.AnnySerafinaLove
This letter, written by Kellen Harkins, Course Director at Full Sail University, commends Anny Love's exemplary performance in the Video Sharing Platforms class. It highlights her dedication, willingness to challenge herself, and exceptional skills in production, editing, and marketing across various video platforms like YouTube, TikTok, and Instagram.
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2. Agenda
MEANING OF DISTRIBUTION CHANNEL
TYPES OF CONFLICT
MAJOR SOURCES OF CONFLICT
Perceptions of Reality
Conflict Resolution Strategies
BRAND ANALYSIS
Key Takeaways
2
3. What are Distribution
channels ?
Distribution channels are the methods by which companies deliver products and
services to customers and end users. Some businesses sell directly to their
customers, while others might use a retailer or wholesaler to serve as an intermediary.
Companies may also use agents or brokers to facilitate the movement of products to
distributors that sell those wares to the customer.
3
4. TYPES OF DISTRIBUTION CHANNELS
4
1. DIRECT CHANNEL
2. INDIRECT CHANNEL
3. HYBRID CHANNEL
5. TYPES OF CONFLICT
•Latent conflict describes the inevitable collision between channel members that pursue
their own separate goals, strive to maintain their autonomy, and compete for limited
resources.
•Perceived conflict arises as soon as a member senses any opposition: viewpoints,
perceptions, sentiments, interests, or intentions.
•Felt (or affective) conflict arises as when emotions enter the picture and can escalate into
manifest conflict. Individual players start mentioning conflict in the channel, as a result of
negative emotions they experience (tension, anxiety, anger, frustration, and hostility).
Organizational members personalize their differences (i.e. “That company is so rude. It
does not care how I feel.”)
•Manifest conflict is expressed visibly through behaviors (i.e. blocking each other’s
initiatives or goal achievement, withdrawing support)
5
6. MAJOR SOURCES OF CONFLICT
Channel members’ goals
Each channel member has a set of goals and objectives that differ from the goals and
objectives of other channel members
The inherent difference in what they want to achieve and what they value causes
principals to seek ways to monitor and motivate agents
Tension arises from perceptions of goal divergence
Example: Nike and Foot Locker
6
Wants supplier to:
•Accept lower gross margins
•Hold more inventory
•Spend more to support the product line
•Get by without allowances
Wants to:
•Achieve higher gross margins per unit
•Decrease inventory
•Reduces expenses
•Receive higher allowances
7. Perceptions of Reality
Distinct perceptions of reality induce conflict, because they imply the likelihood of divergent responses
to the same situation.
Perceptions differ even in relation to seemingly basic questions such as
# What are the attributes of the product/service?
# What applications does the product/service support, and for which segments?
# Who is the competition?
Misperceptions are so common due to focus
The supplier focuses on its products and its processes
Downstream channel members focus on its functions and customers
In domestic markets, channel members disagree in their views of the situation; in international settings,
cultural differences exacerbate the problem
7
8. EXAMPLE
Coca-Cola: In the 1980s, Coca-Cola introduced a
new formula for its signature soda, which it claimed
had a "bolder, smoother taste."
However, customers had a different perception of
the new formula, and many preferred the original
taste. This led to a significant backlash, with
customers protesting and stock prices plummeting.
The company eventually had to reintroduce the
original formula as "Coca-Cola Classic."
9. 7/29/20XX Employee orientation 9
INTRACHANNEL CONFLICT INTERCHANNEL CONFLICT
•Suppliers may sense conflict if their downstream
partners represent their competitors
•Agents and resellers rely on this tactic to provide
high coverage and lower prices
•Intrachannel competition can spark disputes,
especially if the downstream agent appears
insufficiently dedicated to meeting its responsibilities
to the supplier
Interchannel conflict, also known as channel conflict,
refers to disagreements or tensions that arise between
different channels of distribution. This can occur when
different channels compete for sales, or when one
channel feels that another channel is not following the
rules or is receiving preferential treatment.
EXAMPLE
Amazon: Amazon has faced intrachannel conflict with
some of its third-party sellers, who have accused the
company of using its size and power to dominate the
market and manipulate prices. In 2019, a group of
independent sellers in the US filed a lawsuit against
Amazon, alleging that it was engaging in anti-
competitive practices and unfairly competing against
its own sellers. The sellers claimed that Amazon was
using its data and algorithms to favor its own products
and push independent sellers out of the market.
EXAMPLE:
Unilever: Unilever has faced interchannel conflict with
some of its distributors, who have accused the
company of favoring its larger partners and ignoring
smaller ones. In 2020, a group of independent
distributors in India filed a complaint with the
country's antitrust regulator, alleging that Unilever was
engaging in anti-competitive practices and violating
fair trade regulations. The distributors claimed that
Unilever was giving preferential treatment to its larger
partners and using its size and power to dominate the
market
10. MULTICHANNEL CONFLICT
•Multiple channels do not automatically compete. Different channels can serve distinct
•segments and perform different tasks.
•Channel members may assume they are serving the same customersThese owners will bundle
business operations to reduce channel conflict such as a corporate accountant to allocate costs
or revenues and a human resources manager to administer compensation.
•When channels are not independent, it is not as easy to settle disputes
•Identifying multi-channel conflict requires a clear recognition of the various benefits of the
multiple channels to the supplier
•Better coverage is an obvious benefit
•One channel might help the supplier manage another
10
Example – Coca Cola
Faced opposition in Japan after
installing vending machines, yet
market research revealed that
consumers used vending
machines on different occasions
and obtained different value than
they would from a retail setting.
•India’s E-commerce giants (such as
Flipkart, Snapdeal, and Amazon) are
challenging these offline-stores by
offering competitive pricing
•Manufacturers such as Canon and
Lenovo sought To undercut
Retailers by offering longer
warranties for purchases through
traditional “authorized “channels
11. Conflict Resolution Strategies
11
1. Forestalling Conflict through
Institutionalization
Policies become institutionalized
when channel members institute
policies to address conflicts in early
stages, or even before it arises
•e.g. joint memberships in trade
associations, distributor councils,
exchange-of-personnel programs
•Some channels rely on built-in
appeals to third parties such as
boards of arbitration or mediation (as
is particularly popular in Europe)
•These channels serve subtle conflict
management functions
2. Information- Intensive Mechanisms
Heads off conflict by creating a better means to
share information
can be risky and expensive since both sides
divulge sensitive information and must devote
resources to communicating
Trust and cooperation help to make conflict
manageable
Joint membership in trade associations allows
members to contain conflict through an
institutionalized approach
e.g. Walmart and Procter and Gamble’s close
connections are facilitated their personnel
exchanges, which require clear guidelines.
Participants have the opportunity to meet with
channel counterparts with similar tasks
responsibilities, professions, and interests
12. Conflict Resolution Strategies
12
3.Third-Party Mechanisms
Mediation and arbitration, the most widely used third-party mechanism, introduce third
parties that are not involved in the channel
•Mediation is the process whereby a third party attempts to settle a dispute by persuading
the parties to continue their negotiations or consider the mediator’s procedural or
substantive recommendations
•Neither party is obliged to accept the recommendations
•Arbitration allows the third party to make the decision, and both parties state in advance
that they will honor the final and binding decision.
•In compulsory arbitration, the parties are required by law to submit their dispute to a third
party
•In voluntary arbitration, the parties voluntarily submit their dispute, such that reneging on
the decision represents a major breach of confidence
•Arbitration offers all the benefits of mediation, plus the advantage that disputants can
blame the arbitrator is their constituents object to the settlement
•Some firms practice sequences of mediation and arbitration
13. Conflict Resolution Strategies
13
4. Building Relational Norms
Relational norms these preceding mechanisms are policies that can be
proactively devised, consciously put into place, and continually maintained by
management to forestall conflict or address it once it occur.
In a channel, norms entail expectations about behavior, shared by all members.
In alliance channels, common norms include:
•Flexibility: Channel members expect each other to adapt readily to changing
circumstances, with a minimum of obstruction and negotiation.
•Information exchange: Channel members share all pertinent information – no
matter how sensitive – freely, frequently, quickly, and thoroughly.
•Solidarity: Everyone works for mutual, not just one-sided, benefits.
14. Conflict Resolution Strategies
14
5. Using Incentives to Resolve Conflicts
Economic incentives work well, almost universally, regardless of their personalities,
players, or history of the relationship.
•Appealing to economic self-interest is a highly effective way to settle disputes
•Good negotiators base their arguments on economics, then combine them with a
strong program of communications in a good interpersonal working relationship
•e.g. manufacturer-sponsored promotions aimed at retailers
Manufacturers accuse retailers of taking promotion money (for point-of-purchase
advertising and displays for in-store use) and not mounting it. Retailed accuse
manufacturers for not fulfilling promised shares of promotion allowance.
This can be resolved if the manufacturer combines appealing economic incentives that
encourage participation in a pay-for-performance system that pays the retailer for the
items sold on promotion.
15. 7/29/20XX Employee orientation 15
NOW WE HAVE TAKEN ONE BRAND AND ANALYZE ITS DISTRIBUTION CHANNELS AND CONFLICTS
HAPPENED AND HOW IT RESOLVED IT.
•Beard brand is a men's grooming brand that specializes in beard care and grooming
products. The company was founded in 2012 by Eric Bandholz and is based in
Austin, Texas.
•Beardbrand's distribution channels include its own website, which accounts for the
majority of its sales, as well as various brick-and-mortar retailers and a few online
marketplaces such as Huckberry and Urban Outfitters.
•In 2018, Beardbrand experienced a conflict with Amazon over the unauthorized sale
of its products by third-party sellers on the Amazon platform. The third-party sellers
were selling counterfeit products, which were of inferior quality and damaged the
brand's reputation.
•Beardbrand took action against the unauthorized sellers by filing a lawsuit against
them and also requested Amazon to take action against the sellers. Amazon
responded by taking down the infringing product listings and also collaborated with
Beardbrand to implement new policies and systems to prevent counterfeit products
from being sold on its platform. However, despite the resolution of the conflict,
•Beardbrand ultimately decided to drop Amazon as a distribution channel in 2019.
This decision was based on the company's desire to have more control over the
customer experience, as well as concerns over the impact of Amazon's dominance
on small businesses and the negative impact on the brand caused by the
unauthorized sales of counterfeit products on the platform.
16. After dropping Amazon, Beardbrand focused on
expanding its direct-to-consumer sales through its
own website and other select online marketplaces.
This strategy paid off, as the company saw a 20%
increase in sales in the year following the decision to
drop Amazon.
Beardbrand's success without Amazon demonstrates
the importance of having control over distribution
channels and the benefits of a strong direct-to-
consumer strategy. However, the company didn’t just
move out; it made shoppers aware it wouldn't sell on
Amazon again, perhaps, to prevent third-party
retailers eyeing the void to cannabalize sales.
So, if you search for “Beardbrand + Amazon” on
Google, you’ll find this result
Beardbrand dedicated a page to its Amazon exit and
optimized it to rank in search results.
The page explained that any products on Amazon are
counterfeit, stolen, or any arbitrage play (buying from
Beardbrand.com or Target and reselling on Amazon)
to sway buyers from its their channels.
17. 17
NOW WE HAVE TAKEN ONE BRAND AND ANALYZE ITS DISTRIBUTION CHANNELS AND CONFLICTS
HAPPENED AND HOW IT RESOLVED IT.
Tortuga Backpacks beat channel conflict with its pricing strategy
The benefits of expanding marketing across different channels are too good to pass
up.
For example, it can help you:
- open up multiple touchpoints to connect with shoppers
- drive new demand, and
- give customers the flexibility to self-direct their conversion paths.
But failing to harmonize prices across the channels could cause major conflicts.
For instance, selling a product at $25 in-store and offering the same product for $15
online could steal sales from the retail outlets, significantly impacting offline demand.
Of course, a brand has to choose between harmonizing the price or discontinuing one
of the channels to resolve this conflict.
Unfortunately, the first option will cut into their profit margin, while the alternative
shouldn't even be up for discussion.
Tortuga Backpacks, an online travel backpack retailer, however outmaneuvered this
quagmire by pricing intelligently across its channels.
Let’s see what we can learn from them.
The brand sells the most expensive version of its products on the eCommerce website,
Tortugabackpacks.com.
18. Screenshot from Tortugabackpacks.com
But on Amazon, the company lists the older
version of an item, targeted at specific
demographics for a lower price to move
remaining inventory for discontinued or older
products.
Here, you can see the Tortuga Backpack for en
on Amazon has a lower price.
The strategy lets the brand prevent direct
competition of the same SKUs.
It also helps them cater to their penny-pinching
customer segment.
Tortuga Backpacks’ CEO, Fred Perrotta, has
explained how they email the Amazon links to
people asking for discounts or saying they
can’t afford the product.
Key takeaway: By pricing intelligently across
existing channels, Tortuga Backpacks was able
to drive demands and move inventory without
channel conflict.