Behavioural Proc n Channel Conflict

8/12/2019 Behavioural Proc n Channel Conflict

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Behavioral Processes inMarketing Channels

Marketing Channels are not just economicsystems

Marketing Channels are also Social Systems

Therefore, the same behavioral processes existingin all Social systems also exist in MarketingChannels


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Marketing Channels

The behavioral processes of most relevance tomarketing channels are:

Conflict

Power

Role

Communications noise


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Channel Conflict Is...


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Conflict Defined

When one Party perceives the behavior

of another party in the social system to be impeding the attainment of its goals,a state of conflict exists .


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Channel Conflicts

Conflict is generated when actions of anychannel member come in the way of thesystem achieving its objectives.

Three broad categories of channel conflict are:Goal conflict understanding of objectives by

various channel members is different.Domain conflict understand responsibilities andauthority differently.Perception conflict reading of the market place isdifferent and proposed actions vary.


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onfli ts Result fRom

Each channel member wanting to pursue hisown goals.

Each wants to retain his independence.There are limited resources which all of themwant to utilize in achieving their goals.

Features of conflicts:Initially latent and does not affect the workingIs not normally possible to detect till it becomesdisruptive


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Conflict Compared toCompetition

Competition

Object centeredIndirectImpersonal

Conflict Competition

Conflict > Competition

Conflict

Direct

PersonalOpponent centered


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Four Stages of conflict

LATENT

MANIFEST

FELT

PERCEIVED

Each stage is progressively more severe than the earlier one.


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Stages of ConflictsLatent Conflict:

Some amount of discord exists but does not affect theworking or delivery of customer service objectives.Disagreement could be on roles, expectations,

perceptions, communication.Perceived Conflict:

Discords become noticeable channel partners areaware of the opposition.Channel members take the situation in their stride andgo about their normal business. No cause for worry but the opposition has to berecognized.


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Stages of ConflictsFelt Conflict:

Reaching the stage of worry, concern and alarm. Also known as affective conflict. Parties are trying to outsmart each other.Causes could be economical or personal.Needs to be managed effectively and not allowedto escalate.

Manifest Conflict:

Reflects open antagonistic behaviour of channelpartners. Confrontation results.Initiatives taken are openly opposed affecting theperformance of the channel system.

May require outside intervention to resolve.


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Causes of ChannelConflict

Resource SecuritiesRole Incongruities

Perceptual DifferencesExpectational DifferencesDecision Damping DisagreementsGoal IncompatibilitiesCommunicational Difficulties


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Vertical ChannelConflict

HorizontalChannel Conflict

Multi channelConflict

Types of Channel

Conflict


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Conflict


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Horizontal Channel Conflict:


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Multi Channel Conflict:

Example:-

Online Store Likee-bay

Example:-Exclusive Company Outlet


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Effects of Channel

ConflictPositive Effect

Multiple Effects Over Different Ranges

Negative Effect


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Managing Channel ConflictDesigning the channel structureEstablishing mutually agreeable and aligned

business goalsEffective communicationSegment customers

Encourage specialization

Clearly define channel roles andresponsibilities


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Resolving Conflicts

Understanding nature and intensity

Strategy and plan of action for resolution

Understand the impact of the conflict

Tracing the source of the conflict

A 4 Stage Process


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Conflict Resolution Styles

Avoidance

Aggression

Accommodation

Compromise

Collaboration

Least effort andresults

Maximum effort andBest results

Styles are a combinationof assertiveness and

co-operation.


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Avoidance

Used by weak channel members.

Problem is postponed or discussion avoided.

Relationships are not of much importance.

As there is no serious effort on getting anythingdone, conflict is avoided.


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Aggression

Also known as a competitive or selfish style.

It means being concerned about ones own goals without

any thought for the others.

The dominating channel partner (may be the principal)dictates terms to the others. Long term could bedetrimental to the system.


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Accommodation

A situation of complete surrender.

One party helps the other achieve its goals without being worried about its own goals.

Emphasis is on full co-operation and flexibility inapproach. May generate matching feelings in the

receiver.

If not handled properly, can result in exploitation.


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Compromise

Obviously both sides have to give up somethingto meet mid way.

Can only work with small and not so seriousconflicts.

Used often in the earlier two stages.

ll b


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CollaborationAlso known as a problem solving approach.

Tries to maximize the benefit to both parties while solvingthe dispute.

Most ideal style of conflict resolution a win-win approach.

Requires a lot of time and effort to succeed.

Sensitive information may have to be shared.


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Power in MarketingChannels

Power Defined:The capacity of one channel member to

get another channel member to dosomething that he otherwise would not

have done.


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Role in MarketingChannels

Set Prescriptions defining whatthe behavior of a positionmember should be.

Role Defined:


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Marketing Channels

Flow of information that enableschannel members to send and

receive messages

Communication Defined:


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Documents

Behavioural Proc n Channel Conflict