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)