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Chapter Nine

Business Marketing Channels:

 Partnerships for Customer Service 

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KEY OBJECTIVES OFMARKETING CHANNELS

• DELIVER NEEDED GOOD OR SERVICE

• PLACE THE GOOD/SERVICE WHERE IT ISWANTED

• HAVE THE GOOD/SERVICE

WHEN IT IS WANTED

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MARKETING CHANNEL DIFFICULTIES

• CHANNELS AREEXPENSIVE TO ESTABLISH

• CHANNELS ARE

COSTLY TO COORDINATE

• CHANNELS ARE

SLOW TO ADAPT TO ENVIRONMENTALCHANGES

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WHAT DISTRIBUTORS DO

CONTRIBUTION

TO MANUFACTURERS

MARKET COVERAGE

SALES CONTACTS

INVENTORY AVAILABILITY

ORDER PROCESSING

MARKET INTELLIGENCE

CUSTOMER SUPPORT

CONTRIBUTION

TO CUSTOMERS

PRODUCT AVAILABILITY

PRODUCT ASSORTMENT

FITTING ORDER QUANTITY

CREDIT

SERVICE

TECHNICAL SUPPORT

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HOW TO DESIGN A CHANNEL

Identify and

forecast

user service

needs

Evaluate

current channelsand other

options

Create

a vision of

the ideal channel

Implement

the best option

and manage

the system

Gap

Analysis

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SOURCES OF CONFLICT INMARKETING CHANNELS

• GOAL CONFLICTSALES GROWTH VS. PROFITS

• HOW THINGS GET DONEWHO DOES WHAT & WHEN IS IT DONE

• CONFLICTING VIEWPOINTSOUR VIEWPOINT VS. YOUR VIEWPOINT

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HOW CHANNEL MEMBERS CANREACT 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

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OPTIONS FOR RESOLVING CONFLICT

1. PRIVATE REFEREES — Panel of channelmembers serve as a forum

2. THIRD PARTY SOLUTIONS — Mediatedresolution

3. EMPATHIC MECHANISMS

• Use of a specialist•   Join Partner’s Industry Association 

• Exchange personnel

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SOURCES OF CHANNEL POWER

1. REWARD POWER  — Ability to provide days offfor specific outcome/behavior

2. COERCIVE POWER  — Ability to punish for failureto perform

3. INFORMATION POWER  — Ability to obtaininformation others do not have

4. EXPERT POWER  — Ability to gain an advantage by what you know

5. REFERENT POWER  — Ability to influence byserving as the model of best practices