CHANNEL CONFLICT MANAGEMENT

• CHANNEL CONFLICT MANAGEMENT
  MARKETING
  CHANNEL MANAGEMENT
  MEANING OF CHANNEL CONFLICT

1. A CHANNEL CONFLICT IS A SITUATION IN WHICH ONE CHANNEL MEMBERS PERCEIVES ANOTHER CHANNEL MEMBER IS TO BE ENGAGED IN THE BEHAVIOR THAT IS PREVENTING OR STOPPING HIM ACHIEVING HIS GOALS.
2. CHANNEL CONFLICT IS THE RESULT OF PARTIES WITH DIFFERENT INTEREST TO FAR END
3. LIKE A CHANNEL COMMANDER AIMS AT MAXIMIZING SALE TURNOVER BUT DEALER IS NOT CO-OPERATING DUE TO LOW MARGIN

• THE CAUSE OF CHANNEL CONFLICT

1. THE MANUFACTURER ‘S REQUIREMENT TO MAINTAIN PRODUCTION AND COVER HIGH FIXED COST COVER PUTS PRESSURE ON DEALERS TO INCREASE SALES VOLUME AND IT PUTS FRICTION IN THE AREA OF PRICE,RETAIL INVENTORY LEVEL,DISCOUNT
2. ABSORPTION BY ONE PARTY OF DISTRIBUTIVE FUNCTIONS PREVIOUSLY HELD BY ANOTHER HAS RESULTED IN CONFLICT,LIKE MANUFACTURER PASSING THE WHOLE SELLERS,SALE BY FACTORY RETAIL OUTLETS,
3. DIFFERENT INTERPRETATION OF THE ROLES OF INTERMEDIARIES RESULTING FROM DIFFERENT OBJECTIVES.

• THE CONSEQUENCES OF CONFLICT

1.  RESTRICT COORDINATION AND COOPERATIVE ATTITUDE
2. CREATE RIFT IN WORKING RELATIONSHIP BETWEEN CHANNEL COMMANDER AND INTERMEDIARIES AND INTERMEDIARIES
3. THOUGH IT IS DYSFUNCTIONAL BUT SOME TIME IT IS FUNCTIONAL ALSO
4. WHAT IS BAD IS PATHOLOGICAL CONFLICT THAT MALIGN THE PARTIES AND THE SYSTEM

• RESPONSE TO CHANNEL CONFLICT

1. ONE POSSIBILITY IS WITHDRAWAL AND THE RELATION BETWEEN THE CHANNEL COMMANDER AND INTERMEDIARY IS TERMINATED
2. SECOND POSSIBILITY IS REPRESSION. CONFLICT IS IGNORED BY THE CHANNEL COMMANDER
3. INTERNAL CHANGES. THE CHANNEL COMMANDER CHANGES HIS OWN GOALS,POLICIES AND STRATEGIES TO ACCOMMODATE INTERMEDIARY
4. USE OF POWER, THE CHANNEL EXERCISE POWER TO CORRECT THE BEHAVIOR OF THE INTERMEDIARY. THE POWER MAY BE REWARD,COERCION .

• THE CONFLICT MANAGEMENT STRATEGIES

1. BARGAIN STRATEGY:-USE OF DIFFERENT POWER BASE SUCH AS REWARD,COERCION,EXPERTISE,REFERRAL AND LEGITIMACY TO CUT THE INTERMEDIARY TO THE SIZE OR TO THE POINT OF CONFLICT
2. BOUNDARY STRATEGY:-APPOINTING SOME PERSONS AS LIAISON OFFICERS TO OPERATE THE BOUNDARY WHERE THE BOTH THE MANUFACTURER AND INTERMEDIARY MEET
3. PENETRATION STRATEGY:-ATTEMPT TO UNDERSTAND THE ATTITUDES OF THE INTERMEDIARIES
4. SUPRA ORGANIZATIONAL STRATEGY:-THIS STRATEGY IS EMPLOYED TO REORGANIZE FUNCTIONAL INTERDEPENDENCE AND NEED FOR CHANNEL MEMBERSHIP OF TRADER. CONSISTS OF CONCILIATION AND MEDIATION.CONCILIATION BELIEVES IN SETTLING THE DISPUTE AND MEDIATION BY THIRD PARTY TO RESOLVE CONFLICT.