The document discusses key aspects of business marketing channels and partnerships for customer service. It covers objectives of marketing channels like delivering goods/services to desired locations and times. It also discusses challenges like costs of establishing and coordinating channels and adapting to changes. The document outlines the contributions of distributors to manufacturers and customers as well as sources of conflict and options for resolving disputes in marketing channels.

1. McGraw-Hill/Irwin Copyright © 2009 by the McGraw-Hill Companies, Inc. All rights reserved.

2. Chapter 9
Business Marketing Channels:
Partnerships
for Customer Service

3. KEY OBJECTIVES OF
MARKETING CHANNELS
• DELIVER THE NEEDED GOOD/SERVICE
• PLACE THE GOOD/SERVICE WHERE IT
IS WANTED
• HAVE THE GOOD/SERVICE
WHEN IT IS WANTED
9-3

4. MARKETING CHANNEL DIFFICULTIES
• CHANNELS ARE
EXPENSIVE TO ESTABLISH
• CHANNELS ARE
COSTLY TO COORDINATE
• CHANNELS ARE
SLOW TO ADAPT TO ENVIRONMENTAL
CHANGES
9-4

5. WHAT DISTRIBUTORS DO
CONTRIBUTION CONTRIBUTION
TO MANUFACTURERS TO CUSTOMERS
MARKET COVERAGE PRODUCT AVAILABILITY
SALES CONTACTS PRODUCT ASSORTMENT
INVENTORY AVAILABILITY FITTING ORDER QUANTITY
ORDER PROCESSING CREDIT
MARKET INTELLIGENCE SERVICE
CUSTOMER SUPPORT TECHNICAL SUPPORT
9-5

6. A MODEL FOR CHANNEL DESIGN
Identify and
Identify and
forecast
forecast Create
Create
user service
user service a vision of
a vision of
needs
needs the ideal
the ideal
channel
channel
Evaluate
Evaluate Gap
Gap
current channels
current channels Analysis
Analysis
and other Implement
Implement
and other
options the best option
the best option
options
and manage
and manage
the system
the system
Exhibit 9-5
9-6

7. SOURCES OF CONFLICT IN
MARKETING CHANNELS
• GOAL CONFLICT:
SALES GROWTH VS. PROFITS
• MEANS CONFLICT:
HOW THINGS GET DONE AND WHO DOES
WHAT & WHEN IS IT DONE
• CONFLICTING VIEWPOINTS:
OUR VIEWPOINT VS. YOUR VIEWPOINT
9-7

8. HOW CHANNEL MEMBERS CAN
RESPOND TO CONFLICT
• EXIT—Can leave the relationship
• VOICE—Can find a means to articulate dissatisfaction
• LOYALTY—Can continue to persevere in face of
conflict
• AGGRESSION—Can openly or covertly take actions to
injure the conflict party
• NEGLECT—Can leave the conflict untreated and fade
away
9-8

9. OPTIONS FOR RESOLVING CONFLICT
1. PRIVATE REFEREES—Panel of channel
members serve as a forum
2. THIRD PARTY SOLUTIONS—Mediated
resolution
3. EMPATHIC MECHANISMS
• Use of a specialist
• Join Partner’s Industry Association
• Exchange personnel
9-9

10. SOURCES OF CHANNEL POWER
1. REWARD POWER — Ability to provide days off for
specific outcome/behavior
2. COERCIVE POWER — Ability to punish for failure to
perform
3. INFORMATION POWER — Ability to obtain
information others do not have
4. EXPERT POWER — Ability to gain an advantage by
what you know
5. REFERENT POWER — Ability to influence by serving
as the model of best practices
6. LEGITIMATE POWER — Explicit authority granted
by tradition or contract
9-10

11. RELATIONSHIP FORMS IN CHANNELS
• TRANSACTIONAL CHANNELS -
Members trade at arms length
• ADMINISTERED CHANNELS -
Interactions without formal chain of command or a
set of rules
• CONTRACTUAL CHANNELS –
Tightly coordinated by formal procedures and
pledges of on-going exchange
• CORPORATE CHANNELS –
High degree of vertical integration in the sales and
distribution functions
9-11