C h a n n e l C o n f l i c t

C h a n n e l C o o p e r a t i o n

C h a n n e l C o m p e t e t i o n

Channel Conflict:-• Channel conflict occurs when manufacturers (brands) disinter mediate their channel partners, such as distributors, retailers, dealers, and sales representatives, by selling their products direct to consumers through general marketing methods and/or over the internet through e-Commerce.

• Channel conflict can also occur when there has been over production. This results in a surplus of products in the market place.

• Newer versions of products, changes in trends, insolvency of wholesalers and retailers and the distribution of damaged goods also affect channel conflict. In this connection, a company's stock clearance strategy is of importance

Vertical Channel Conflict

Horizontal Channel Conflict

Multichannel Conflict

Types of Channel Conflict

Vertical Channel Conflict

Horizontal Channel Conflict

Multichannel Conflict

Types of Channel Conflict

Vertical Channel Conflict

Types of Channel Conflict

Vertical Channel Conflict

Horizontal Channel Conflict:-

Multi Channel Conflict:-

Example:-Online Store Like e-bay

Example:-Exclusive Company Outlet

Causes Of Channel Conflict

• Goal Incompati

bility

• Unclear Roles & Rights

• Differences In

Perceptions

• Intermediaries’

Dependence On The Manufactu

rer

How To Manage Channel Conflict

• Adoption of Super ordinate Goals• Exchange Of Employees• Co-Optation• Diplomacy By:-– Mediation– Negotiation

• Legal Route

Dilution & Cannibalization:-

• Marketers must be careful not to dilute their brands through inappropriate channels.

• Example : Calvin Klein, Reebok

Legal & Ethical Issues

• Exclusive dealings often includes exclusive territorial agreements.– Such practices increase dealer confidence &

enthusiasm. Moreover it is perfectly legal.

• Some major brands adopt the policy of “Full-Line Forcing”.– Although such tying agreements are not

illegal, but somehow they lower the quality of the competition.

Funny Side of Channel Conflict

E – Commerce Marketing

E-PurchasingE-Purchasing means companies decide to purchase goods, services, and information from various online suppliers. This in turn has saved millions of capital for the companies.

E-MarketingE-Marketing describes company efforts to inform buyers, communicate with them, promote & sell its products & services over the internet.

Pure-Click Companies

Companies those have launched a web site without any previous existence as firm are called Pure-Click Companies.Example :- Google, ebay(B2C), Alibaba(B2B)

Brick-and-Click Companies

They are the existing companies that have added an online web site for information or e-commerce.Example:-Indiatimes(Bennett, Coleman & Co.)Futurebazaar(Future Group)

We can say that online shopping is Safe, Secure & its

Fun

M-Commerce:-

• Mobile Commerce, also known as M-Commerce or mCommerce, is the ability to conduct commerce using a mobile device, such as a mobile phone, a PDA, a smartphone, or other emerging mobile equipment such as GPS, Satellite Radios, Vehicle Tracking Systems etc.

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