Companies should integrate their marketing channels to ensure consistency across channels and maximize coverage. Adding new channels can increase market reach but can also lead to conflicts between channels. To manage conflicts, companies can encourage joint memberships in trade groups, compensate existing channels for new channel sales, or establish superordinate goals for all channels to work towards. As a last resort, arbitration or mediation may be needed to resolve acute conflicts between channels.

1. How should companies
integrate channels and
manage channel
conflict ?

2. 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.

3. Adding
channels
increase
market
coverage.1

4. Second
benefit is
lower
channel
cost2

5. 3
Third is
more
customised
selling

6. Companies should use different sales for different-sized business customers:
> direct sales force for large customers
> telemarketing for midsize customers
> distributors for small customers

7. CHANNEL CONFLICT is generated when one channel
member’s actions prevent another channel from achieving its goal.

8. MANAGING CHANNEL CONFLICTS

9. JOINT MEMBERSHIP : Marketers can encourage joint memberships in trade associations.

10. DUAL COMPENSATION : It pays existing channels for sales made through new channels.

11. LEGAL RECOURSE : If nothing else prove effective, a channel partner may choose to file a
lawsuit.

12. EMPLOYEE EXCHANGE : TO exchange persons between two or more channel levels.

13. 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.

14. 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.

15. SUPERORDINATE GOALS : Channel members can come to an agreement on the
superordinate goal they are jointly seeking.

16. DIPLOMACY, MEDIATION AND ARBITRATION : When conflict is acute, the parties resort to
these stronger means.

17. Created by NILESH RANA of IIT BHU
under the guidance of
Prof. SAMEER MATHUR, IIM LUCKNOW
www.iiminternship.com
Thank you .