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m USE OF CHANNEL POWER
m IDENTIFYING AND RESOLVING CHANNEL
CONFLICTS
m CHANNEL CO-ORDINATION
 
  

m ACCORDING TO FRENCH & RAVEN:
There are five sources of power
1. Reward
2. Coercion
3. Reference
4. Legitimate
5. Expert
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m Channel conflict- is a situation of disagreement
between channel members from the same marketing
channel system. conflict always has negative effects.
m Four stages of a channel conflict:
1. Latent
2. Percieved
3. Felt
4. Manifest

  

  
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m Unclear role definition- confusion of the role
m New channel partner- discontent among the existing
m Target fixing exercise Ȃfield force instructing the
dealers and distributors
m Extension of credit Ȃsales team forcing to extend
credit
m Multiple distributors- territory?
m Difference in perception- keep more stock!!!!
m Clash of interest Ȃ bias with the other??????
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m There are four steps to resolve conflicts:
1. Understanding the nature and impact of conflict
2. Tracing the source of conflict
3. Finding out the consequences of conflict
4. Strategy and action plan for resolution
m Avoidance
m Aggression
m Accommodation
m Compromise
m Collaboration
  
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m CHANNEL MANAGEMENT IS IN FOUR STEPS:
1. Setting the objectives
2. Developing the customer service objectives
3. Ability to control the channel
4. Measuring performance for constant improvement
m CHANNEL POLICIES
1. Markets to be serviced
2. Customer coverage
3. Pricing
4. Product lines
5. Selection & termination of channel partners.
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