22. Managing channel conflicts

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Managing channel conflicts:

Managing channel conflicts Chapter 22

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Prof. Sunitha Ratnakaram, Associate Professor, VVSB MBA, M. Phil, MFM, M. SC. (Psychology), UGC – JRF , (Ph. D)

In this chapter we will discuss::

In this chapter we will discuss: Sources of conflict Types of conflicts Conflict management techniques Channel leadership

Introduction :

Introduction Conflict has become an inherent part of distribution channels Complaints arise from both the sides Sources and causes of conflicts are many Conflict process can be viewed from the model given with

Channel conflict model:

Channel conflict model Conflict Management Techniques Causes of conflict Level of conflict Outcomes of conflict Competing roles Clashes over domains Differing perceptions of reality Vertical Conflicts Horizontal conflicts Multi channel conflicts

Sources of conflict:

Sources of conflict Goal incompatibility Incompatibility of goals among channel members Differences in goals within organization Difficulty in measuring goals Inherent conditions Goal conflict in agency relationship

Continued…. :

Continued…. Differing perceptions of reality Clashes over domains Product range Population and territory coverage Customer accounts Franchising Performance of channel functions

Types of conflicts :

Types of conflicts Pre-contractual and Post-contractual conflicts Channel level conflicts Vertical channel conflicts Horizontal channel conflicts Multi-channel conflicts At certain level conflict acts a constructive mechanism

Conflict management techniques:

Conflict management techniques They can be divided into 2 categories Systematic mechanism Mechanism based on behavioral & attitudinal responses Some strategies implemented under both categories Negotiation Persuasive mechanism Problem-Solving strategies Political strategies Co-optation


Negotiation Usually take place over price, cash credit, discounts, delivery & other elements in Marketing mix Differences commonly seen under asymmetric power conditions: Initial bids Extent of flexibility Time of negotiation Communication content Negotiation outcome


Continued….. Persuasive mechanism Problem-Solving strategies Political strategies Diplomacy Mediation Arbitration Co-optation

Other practices:

Other practices Personal relationships Error clarification Distribution indicators Meetings Appreciate each channel member’s requirements Communication

Channel leadership:

Channel leadership Role of channel leadership power in resolving conflicts Reward power Coercive power Expert power Referent power Legitimate power

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