SlideShare a Scribd company logo
How should
companies integrate
channels and manage
channel conflict ?
An INTEGRATED MARKETING CHANNEL SYSTEM is one in which the
strategies and tactics of selling through one channel reflect the strategies
and tactics of selling through one or more other channels.
Adding
channel
s
increase
market
coverag
Second
benefit is
lower
channel
cost
Third is
more
customise
d selling
Companies should use different sales for different-sized business customers:
• > direct sales force for large customers
> telemarketing for midsize customers
> distributors for small customers
nerated when one channel member’s actions prevent another cha
MANAGING CHANNEL CONFLICTS
JOINT MEMBERSHIP : Marketers can encourage joint memberships in trade associations.
DUAL COMPENSATION : It pays existing channels for sales made through new channels.
LEGAL RECOURSE : If nothing else prove effective, a channel partner may choose to file a
lawsuit.
EMPLOYEE EXCHANGE : TO exchange persons between two or more channel levels.
STRATEGIC JUSTIFICATION : A convincing strategic justification serve distinctive segments
and do not compete as much as they think can reduce potential for conflict among channel
members.
CO-OPTATION : Co-optation is an effort by one organisation to win the support of the leaders of
another by including them into advisory councils, board of directors, etc.
SUPERORDINATE GOALS : Channel members can come to an agreement on the
superordinate goal they are jointly seeking.
DIPLOMACY, MEDIATION AND ARBITRATION : When conflict is acute, the parties resort to
these stronger means.
Created by NILESH RANA of IIT BHU
under the guidance of
Prof. SAMEER MATHUR, IIM LUCKNOW
www.iiminternship.com
Thank you .

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How should companies integrate channels and manage channel conflict?