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A short presentation showing types and causes of channel conflict arising in sales & distribution network.

Aniruddh Tiwari
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  • Last Point : So it depends upon the relationship between the supplier and the channel partner. Whether the supplier pull out the dead/surplus stock from the market or forces the channel partner to sell surplus market.
  • Conflicts between different levels within the same channel.Example : HUL came into a conflict with its distributors in Kerela on the issue of Commission
  • when multiple channels are employed and distribution intensity increases, three profit threats may confront a retailer: sales cannibalizationmargin dilutioncustomer diversion
  • Goal Incompatibility : When manufacturer and retailer have different set of goals to achieve.Unclear Roles & Rights : HP Example -> HP Sales force sales its PCs on credit but its licensed dealers may not do the same.Difference in Perception : For one person the glass is half filled, but for the other it is half empty.Intermediaries’ Dependence : Profit of intermediate dealers for example car dealers depends on the manufacturer’s product & pricing
  • Co-Optation : It is an effort by one organization to win the support of the leaders of the other organization by including them in advisory counsils.
  •  eCommerce, or e-business consists of the buying and selling of products or services over electronic systems such as the Internet and other computer networks.
  • Mobile Commerce is any transaction, involving the transfer of ownership or rights to use goods and services, which is initiated and/or completed by using mobile access to computer-mediated networks with the help of an electronic device
  • Conflict,cooperation,competetion

    1. 1. C h a n n e l C o n f l i c t<br />
    2. 2. C h a n n e l C o o p e r a t i o n<br />
    3. 3. C h a n n e l C o m p e t e t i o n<br />
    4. 4. Channel Conflict:-<br /><ul><li>Channel conflict occurs when manufacturers (brands) disinter mediate their channel partners, such as distributors, retailers, dealers, and sales representatives, by selling their products direct to consumers through general marketing methods and/or over the internet through e-Commerce.
    5. 5. Channel conflict can also occur when there has been over production. This results in a surplus of products in the market place.
    6. 6. Newer versions of products, changes in trends, insolvency of wholesalers and retailers and the distribution of damaged goods also affect channel conflict. In this connection, a company's stock clearance strategy is of importance</li></li></ul><li>Vertical Channel Conflict<br /> Horizontal Channel Conflict<br />Types of Channel Conflict<br />Multichannel Conflict<br />
    7. 7. Vertical Channel Conflict<br /> Horizontal Channel Conflict<br />Types of Channel Conflict<br />Multichannel Conflict<br />
    8. 8. Vertical Channel Conflict<br />Types of Channel Conflict<br />
    9. 9. Vertical Channel Conflict<br />
    10. 10. Horizontal Channel Conflict:-<br />
    11. 11. Multi Channel Conflict:-<br />Example:-<br />Online Store Like e-bay<br />Example:-<br />Exclusive Company Outlet<br />
    12. 12. Causes Of Channel Conflict<br /><ul><li> Goal Incompatibility
    13. 13. Unclear Roles & Rights
    14. 14. Differences In Perceptions
    15. 15. Intermediaries’ Dependence On The Manufacturer</li></li></ul><li>How To Manage Channel Conflict<br />Adoption of Super ordinate Goals<br />Exchange Of Employees<br />Co-Optation<br />Diplomacy By:-<br />Mediation<br />Negotiation<br />Legal Route<br />
    16. 16. Dilution & Cannibalization:-<br />Marketers must be careful not to dilute their brands through inappropriate channels.<br />Example : Calvin Klein, Reebok<br />
    17. 17. Legal & Ethical Issues<br />
    18. 18. Exclusive dealings often includes exclusive territorial agreements.<br />Such practices increase dealer confidence & enthusiasm. Moreover it is perfectly legal.<br />Some major brands adopt the policy of “Full-Line Forcing”.<br />Although such tying agreements are not illegal, but somehow they lower the quality of the competition.<br />
    19. 19. Funny Side of Channel Conflict<br />
    20. 20. E – Commerce Marketing <br />
    21. 21. E-Purchasing<br />E-Purchasing means companies decide to purchase goods, services, and information from various online suppliers. This in turn has saved millions of capital forthe companies.<br />E-Marketing<br />E-Marketing describes company efforts to inform buyers, communicate with them, promote & sell its products & services over the internet.<br />
    22. 22. Pure-Click Companies<br />Companies those have launched a web site without any previous existence as firm are called Pure-Click Companies.<br />Example :- <br />Google, ebay(B2C), Alibaba(B2B)<br />Brick-and-Click Companies<br />They are the existing companies that have added an online web site for information or e-commerce.<br />Example:-<br />Indiatimes(Bennett, Coleman & Co.)<br />Futurebazaar(Future Group)<br />
    23. 23. We can say that online shopping is Safe, Secure & its Fun<br />
    24. 24. M-Commerce:-<br />Mobile Commerce, also known as M-Commerce or mCommerce, is the ability to conduct commerce using a mobile device, such as a mobile phone, a PDA, a smartphone, or other emerging mobile equipment such as GPS, Satellite Radios, Vehicle Tracking Systems etc.<br />
    25. 25. THANK YOU<br />