Pharma Marketing

1. CONFLICT IN CHANNEL
PresentedBy:Mayur.S.Sapkal
Guided By:Shital.V
.SirsatMam

2. INDEX
▶ INTRODUCTION
▶ TYPES OF CHANNELCONFLICTS
▶ CAUSES OF CHANNELCONFLICTS
▶ MANAGING THE CHANNELCONFLICT
▶ FOUR STAGES OF CONFLICT
▶ CONCLUSION
▶ REFEENCE

3. INTRODUCTION
▶ Channel conflict: Achannel conflictmay be defined as “Asituation in which
one channel member perceives anotherchannel members to be engaged in
behaviorthat prevents it from achievingits goals”.
▶ Channel conflict arises when channel partners such as
1. MANUFACTURER
2. WHOLESALER
3. DISTRIBUTOR
4. RETAILER

5. 1) VERTICAL CHANNEL CONFLICT
• This type of conflict arisesbetweenthe differentlevels in the same
channel.
• For example, the conflict between the manufacturerand the
wholesalerregardingprice, quantity,marketing activities,etc.
• Verticalconflictsoccur due to the differences in and objectives,
misunderstandings, and mainly due to the poor communication
2) HORIZANTAL CHANNEL CONFLICT
• This type of conflict arises between the same levels in the same
channel. For example, the conflict between two retailersof the same
manufacturerfaces disparity in terms of sales target, area coverage,
promotionalschemes, etc.

6. • Horizontal conflicts are the conflicts between the channel
members at the same level, i.e. two or more retailers, two or
more franchiseesetc.
• These conflicts can offer some positive benefits to the
consumers. Competitionor a price war betweentwo dealers or
retailerscan be in favor of the consumers.
3) MULTICHANNEL CONFLICT
• This type of conflict arises between the different market
channels participating in the common sale for the same
brand.
• For example, if a manufacturer uses two market channels,
first is the official website through which the products and
services are sold.

7. • The second channel is the traditionalchannel i.e. through
wholesalerand retailer.
• If the product is available at a much lower price on a website than
is available with the retailer, the multichannelconflict
CAUSES OF CHANNEL CONFLICT
• Goal incompabality
• Ambiguous roles
• Differentperception
• IntermediariesDependence
• Lack of communication

8. MANAGING THE CHANNEL CONFLICT
In order to overcomethe destructivechannel conflictsome solutionare listed
below
• Subordinategoals
• Exchanging employees
• Tradeassociations
• Co-optation
• Diplomancy,mediationand arbitration
• Legal resource
1) Subordinategoals
The channel partnersmust decide a single goal in terms of increasedmarket
share, survival, profitmaximization,high quality,customersatisfaction,etc. we the
intentionto avoid conflicts.

9. 2) Exchanging employees
• one of the best ways to escape channel conflict is to swap employees between different
levels
• i.e. two or more persons can shift to a dealer level from the manufacturer level and
from wholesale level to the retailer level on a temporary basis.
• By doing so, everyone understands the role and operations of each other thereby
reducing the role ambiguities
3) Tradeassociation
• Another way to overcome the channel conflictis to form the association
between the channel partners.
• This can be done throughjoint membershipamong the intermediaries.
• Every channel partnerworks as one entity and works unanimously.

10. 4) Co-optation
• Under this, any leader or an expert in another organizationis includedin the
advisory committee,
• boardof directors,or grievance redressal committees to reducethe conflictsthrough
their expert opinions.
5) Diplomacy, mediation and arbitration
• when the conflictbecomes criticalthen partnershave to resortto one of these
methods.In Diplomacy, the partnersin the conflict send one
• person from each side to resolve the conflict.In Mediation, the third personis
involved who tries to resolve the conflict throughhis skillsof conciliation.
• In Arbitration, when both the parties agreeto present their arguments to the
arbitratorand agreeto his decision

11. 6) Legal resource
• When the conflict becomes crucialand cannot be resolvedthrough any above
mentionedways,
• the channel partners may decide to file a lawsuit.
Thus, it is a fundamentalresponsibility of every organizationto maintain
harmoniousrelationswith its channel partners
as the conflict betweenthese may result in huge losses for each involved in the channel
includingthe manufacturingcompany.

12. •FOUR STAGES OF CONFLICT
1. LATENT
2. PERCIEIVED
3. FELT
4. MANIFEST

13. Conclusion
Channel conflictcan be detrimental to channel success and sales.
With these having much impact on the success of your channel and its members, there
is a need to resolve the problems as soon as they arise or even avoid them altogether
from becominga reality.
Thus, managing channel conflictis of utmost importance

14. Reference
1) Edelman, D. C. (2010). Branding in the digitalage: You’re spendingyour
money in all the wrong places.HarvardBusinessReview, 88(12), 62–69.
2) Pee vee publication Dr.MayurA. Chodriya,Vaibhav.M.davhekar,Dr.Md Rageeb
md. Usman,mayur R.bhurat.