Channel Relationship

Contents Channel Relationship 1 Channel Control 2 Channel Power 3 Channel Conflict 4 5 Conflict Management 6 Negotiation Strategies 7 Case Study 1

Channel Relationship What is channel relationship? What is the importance of Channel Relationship?

Channel Relationship ,[object Object],[object Object],[object Object],[object Object]

Channel Relationship Transaction Specific Relationship or Discrete relationship Types of Channel Relationships Rational Exchange relationship 1 2

Channel Relationship ,[object Object],[object Object],[object Object]

Channel Control ,[object Object],Zone of indifference Optimize resource deployment Improved co-ordination of activities

Channel Control ,[object Object],[object Object],[object Object]

Channel Control ,[object Object],Pay- Off Function Tolerance Function Distributors profit earned Zone of Indifference Supplier Authority

Channel Power ,[object Object],[object Object],[object Object],[object Object],[object Object]

Channel Power ,[object Object],[object Object]

Channel Power ,[object Object],1 Channel members do not incline naturally towards coordinated behavior, 3 Channel power is necessary to alter actions by channel members to induce a more coordinated outcome. 2 The lack of natural inclination in this direction can and does cause sub-optimal channel outcomes,

Channel Power Sources of Power 1. Reward Power 2. Coercive Power 3. Expert Power 5. Legitimate Power 4. Referent Power

Source: Adapted from Narus & Anderson 1998 Promotional Support Training Market Research Company Policies Distributors firm incentives Responsiveness Systems Technical Assistance Incentive Programme Distributor Sales force Incentives - Financial returns - Quality Products - Comprehensive price - Reliable delivery -National Reputation Channel Core Elements Capability Development Programmes Components of channel offering Manufacturer Sales force Incentives

Channel Conflict ,[object Object],Attitudinal sources of Conflict Structural sources of Conflict Cognitive /Affective conflict Manifest conflict Conflict Outcomes Conflict resolution

Channel Conflict ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Channel Conflict ,[object Object],[object Object],[object Object],[object Object],[object Object]

Conflict Management ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Two mechanisms for Channel Conflict Management

Conflict Management Latent Conflict Felt Conflict Manifest Conflict ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Negotiation Conflict Management methods at different stages of conflict

Negotiation Strategies ,[object Object]

Negotiation Strategies Types Of Negotiation Strategy Accommodating Avoiding Compromising Collaborative or Problem Solving Competing or Aggressive

Negotiation Strategies Accommodative Collaborative/Problem Solving Compromise Avoidance Competitive/Aggressive High Concern for own interest Low Low High Concern for the other’s interest

Negotiation Strategies ,[object Object],[object Object],[object Object],[object Object],[object Object]

Case Studies ,[object Object],[object Object],[object Object],[object Object],[object Object]

[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Channel Relationship

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