Transcript Document

การจัดการช่องทางการจัด จ าหน่าย Distribution Channel Management Chapter 7 Managing Conflict To Increase Channel Coordination

Chapter 7 Outlines Learning Objectives conflict is not negative

- Understand how to diagnose

conflict in terms of issues, frequency, intensity and importance

- Understand three major sources of

conflict: goals, perceptions, and domains

- Understand why multiple channels

Managing Channel Conflict Points of Discussion

-

What is Channel Conflict?

- What are the effects of conflict,

both for short and long term?

- How does conflict arise and how

can it be managed?

- What are the best strategies for containing destructive and excessive conflict?

- Learn strategies of resolving the conflict

Managing Channel Conflict The Channel conflict is behavior by a channel member that is in opposition to its channel counterpart. It is opponent centered and direct, in which the goal object sought is controlled by the counterpart”

Managing Channel Conflict The Implication of channel conflict relationship

- Sometimes channel are too

peaceful, indifference, masking great differences

- Conflict is desirable for members to

raise their difference and working to search for better understanding and higher performance

- Conflict should not be judged as a

Managing Channel Conflict Four different kinds of information to gather and combine to form an manifest conflict index of 2. Importance – ascertain the importance on each issue 3. Frequency of disagreement – how often the two parties disagree over each particular issue?

4. Intensity of dispute – ascertain

The Consequences of Conflict Points of Discussion

-

Is conflict always undesirable?

- When will conflict be desirable

(functional)?

- Are peaceful channels better

channels (conflict is low)?

- Can conflict improve channel

members’ performance?

The Consequences of Conflict Functional conflict is desirable if members

- Communicate more frequently and

effectively

- Establish outlets for expressing their

grievances

- Critically review their past actions - Devise and implement a more

equitable split of system resources

- Develop a more balanced

distribution of power in their relationship

Major Sources of Conflict Conflict is a staple in marketing channels because of and goals

- Differing perceptions of reality - Clash over domains (roles,

responsibilities, territories)

Major Sources of Domain Conflict Multiple channels is major source of market domain conflict

- Multiple channels: Using more than

one route to get to the same market

- Different kinds of multiple channels:

Dual distribution, plural distribution, hybrid distribution

- Customers can find products easier

to match their needs

Major Sources of Domain Conflict Ways that suppliers address multiple channel conflict

- Devise different pricing schemes

for different channels

- Offer more support, more service,

more product and even different products to different channel types

- Offer the same product under

different brand names to different channels

- Sell primary part of the product

Major Sources of Domain Conflict Point of Discussion

- What is Gray Marketing? - How can this happen? - Is the trend getting increasing

or decreasing?

- What are the advantages and

disadvantages to suppliers?

Major Sources of Domain Conflict Gray market: The unwanted channels

-

Gray marketing is the sale of authorized, branded product through unauthorized distribution channels”

- Gray marketing can be contrasted

with black marketing or counterfeiting which involves selling fake goods as branded ones

Major Sources of Domain Conflict Development of gray market coming from different channel members - Suppliers practice pricing differently to different geographic markets - Domestic products sold through high-service, high-price channels at home - Development of emerging markets and worldwide

Conflict Management Points of Discussion - How dealers react once the destructive action from suppliers taken place?

Conflict Management Reaction from dealers upon destructive incidences - Constructive engagement - Withdrawing from the relationship Dealers blame the suppliers - Less likely to accept the situation passively - More likely to take any sort of action Dealers blame the environment

Conflict Management Five different types of reaction from dealer to deal with disputes against suppliers doing very little about the issue 2. Venting: complaining vigorously without taking action 3. Neglecting the supplier 4. Threatening to resign the line 5. Engaging the supplier in constructive discussion

Managing Channel Conflict Points of Discussion

How do channel members

cope with conflict?

Conflict Resolution presented mechanisms associations interests) Strategies Two approaches are 1. Develop institutionalized - Joint memberships in trade - Distributor councils for two-way communication - Exchange of personnel programs (learning, knowing the other party’s tasks and

Conflict Resolution Strategies Two approaches are presented conflict - Flexibility (adapt to changing circumstances) - Information exchange (share all pertinent information) - Solidarity (work for mutual benefit)

Conflict Resolution Strategies