Presentation on theme: "การจัดการช่องทางการจัดจำหน่าย Distribution Channel Management"— Presentation transcript:
1การจัดการช่องทางการจัดจำหน่าย Distribution Channel Management Chapter 7Managing ConflictTo Increase Channel Coordination
2Chapter 7 Outlines Learning Objectives Distinguish circumstances where conflict is not negativeUnderstand how to diagnose conflict in terms ofissues, frequency, intensity and importanceUnderstand three major sources of conflict: goals,perceptions, and domainsUnderstand why multiple channels have become thenorm and describe ways to address the conflict- What is Gray Marketing and how it actually happens?
3Managing Channel Conflict Points of DiscussionWhat is Channel Conflict?What are the effects of conflict, both for short andlong term?How does conflict arise and how can it be managed?- What are the best strategies for containing destructiveand excessive conflict?- Learn strategies of resolving the conflict- Categorize conflict resolution styles and describetheir effect
4Managing Channel Conflict The Meaning:-“Channel conflict is behavior by a channel memberthat is in opposition to its channel counterpart.It is opponent centered and direct, in which thegoal object sought is controlled by the counterpart”
5Managing Channel Conflict The Implication of channel conflictA negative in many channel relationshipSometimes channel are too peaceful, indifference,masking great differencesConflict is desirable for members to raise their differenceand working to search for better understanding andhigher performanceConflict should not be judged as a defect, a stateto be eliminated- Conflict should be monitored and then managed
6Managing Channel Conflict Four different kinds of information to gather andcombine to form an index of manifest conflict1. Counting up the issues – what are the major issues?2. Importance – ascertain the importance on each issue3. Frequency of disagreement – how often the twoparties disagree over each particular issue?4. Intensity of dispute – ascertain how far apart the twoparties on each particular issue
7The Consequences of Conflict Points of DiscussionIs conflict always undesirable?When will conflict be desirable (functional)?Are peaceful channels better channels(conflict is low)?Can conflict improve channel members’performance?
8The Consequences of Conflict Functional conflict is desirable if membersCommunicate more frequently and effectivelyEstablish outlets for expressing their grievancesCritically review their past actionsDevise and implement a more equitable split of systemresourcesDevelop a more balanced distribution of power intheir relationship- Develop standardized ways to deal with future conflictand keep it within bounds
9Major Sources of Conflict Conflict is a staple in marketing channelsbecause ofBuilt-in differences in viewpoint and goalsDiffering perceptions of realityClash over domains (roles, responsibilities,territories)
10Major Sources of Domain Conflict Multiple channels is major source of marketdomain conflictMultiple channels: Using more than one route to get tothe same marketDifferent kinds of multiple channels: Dual distribution,plural distribution, hybrid distributionCustomers can find products easier to match their needsDownstream members may lose motivation, withholdsupport, retaliate or exit the business
11Major Sources of Domain Conflict Ways that suppliers address multiple channel conflictDevise different pricing schemes for different channelsOffer more support, more service, more product andeven different products to different channel typesOffer the same product under different brand namesto different channelsSell primary part of the product line through onechannel and secondary or peripheral productsthrough another
12Major Sources of Domain Conflict Point of DiscussionWhat is Gray Marketing?How can this happen?Is the trend getting increasing or decreasing?What are the advantages and disadvantagesto suppliers?
13Major Sources of Domain Conflict Gray market: The unwanted channels“Gray marketing is the sale of authorized, brandedproduct through unauthorized distribution channels”Gray marketing can be contrasted with black marketingor counterfeiting which involves selling fake goods asbranded ones
14Major Sources of Domain Conflict Development of gray market coming from- Suppliers offer differential pricing to different channelmembers- Suppliers practice pricing differently to differentgeographic markets- Domestic products sold through high-service, high-pricechannels at home- Development of emerging markets and worldwideliberalization of trade- Price differences exist across boundaries or territories
15Conflict Management Points of Discussion - How dealers react once the destructive actionfrom suppliers taken place?
16Conflict Management Reaction from dealers upon destructive incidences Dealers blame themselves- Constructive engagement- Withdrawing from the relationshipDealers blame the suppliers- Less likely to accept the situation passively- More likely to take any sort of actionDealers blame the environment
17Conflict ManagementFive different types of reaction from dealer to dealwith disputes against suppliers1. Passive acceptance: saying or doing very littleabout the issue2. Venting: complaining vigorously without taking action3. Neglecting the supplier4. Threatening to resign the line5. Engaging the supplier in constructive discussion
18Managing Channel Conflict Points of DiscussionHow do channel members cope withconflict?
19Conflict Resolution Strategies Two approaches are presented1. Develop institutionalized mechanisms- Joint memberships in trade associations- Distributor councils for two-way communication- Exchange of personnel programs (learning, knowingthe other party’s tasks and interests)- Co-optation to share responsibility- Third-party mechanisms (mediation, arbitration)
20Conflict Resolution Strategies Two approaches are presented2. Use common norms to resolve conflict- Flexibility (adapt to changing circumstances)- Information exchange (share all pertinent information)- Solidarity (work for mutual benefit)