GOOD

MORNING
CONFLICT
MANAGEMENT
MARKETING CHANNELS
Most producer do not sell there goods
directly to the final users; between them
stands a set of intermediaries performing
a variety of functions. These
intermediaries constitute a market
channel (also called a trade channel or
distribution channel).
CONFLICT, COOPERATION AND
COMPETITION

Channel conflict is generated when one

channel member’s actions prevent the
channel from achieving its goal. Channel
coordination occurs when channel
members are brought together to advance
the goals of the channel, as opposed to
their own potentially incompatible goals.
TYPES OF CONFLICTS:
Vertical channel conflict: It means a conflict
between different levels within the same
channel. HLL came in conflict with its
distributors in Kerala on the issue of
commission.
Horizontal channel conflict: It involves a
conflict between members at the same level
within the channel. Dealers frequently get into
conflict with each other for the transgression
of the domain of operation and under cutting.
Multichannel conflict: It exists when
the manufacture has established two or more
channels that sell to the same market. Escorts
Ltd., trying to create parallel dealership for a
line of tractors in the early 1980s, faced
massive protest established dealers.
CAUSES OF CHANNEL CONFLICT :
 Goal incompatibility
 Unclear role and rights
 Difference in perception
 Intermediaries
GOAL INCOMPATIBILITY: It is a major
causes of conflict. For example, the
manufacture may want to achieve rapid
market penetration through a low-price
policy. Dealers in contrast, may prefer to
work with high margins and pursue short-
run profitability.
UNCLEAR ROLE AND RIGHTS: HP may
sell personal computers to large accounts
through its own sales force, but its
licensed dealers may also be trying to sell
to large accounts. Territory boundaries
and credit for sales often produce
conflict.
DIFFERENCE IN PERCEPTION: The
manufacture may be optimistic about the
short-term economic outlook and want
dealers to carry higher inventory. Dealers
may be optimistic. In the beverage
category, it is not uncommon for disputes
to arise between manufactures and their
distributors about the optimal advertising
strategy.
INTERMEDIARIES: Conflict might also
arise because of the intermediaries,
dependence on the manufactures. The
fortunes of exclusive dealers, such as auto
dealers, are profoundly affected by the
manufactured product and pricing
decisions.
MANAGING CHANNEL CONFLICT
The adoption of supervision goals. Channels
member come to an agreement on the
fundamental goal they are jointly seeking,
whether it is survival, market share, high
quality, or a shift in consumer desire.
Exchange persons between two or more
channel level. General Motors executives
might agree to work for a short time in some
dealerships, and some dealership owners
might work in GM’s dealer policy department.
Co-operation is an effort by one
organization to win the support of the
leaders of another organization by
including them in advisory, boards of
directors and the like.
When conflict is chronic or acute, the
parties may have to resort to diplomacy,
mediation, or arbitration.
THANK
YOU