How should companies integrate channels and manage channel conflict ?

An INTEGRATED MARKETING CHANNEL SYSTEM is one in which the strategies and tactics of selling through one channel reflect the

strategies and tactics of selling through one or more other channels.

Adding channels increase market coverage.

1

Second benefit is lower channel cost2

3Third is more customised selling

Companies should use different sales for different-sized business customers:

• > direct sales force for large customers> telemarketing for midsize customers

> distributors for small customers

CHANNEL CONFLICT is generated when one channel member’s actions prevent another channel from achieving its goal.

MANAGING CHANNEL CONFLICTS

JOINT MEMBERSHIP : Marketers can encourage joint memberships in trade associations.

DUAL COMPENSATION : It pays existing channels for sales made through new channels.

LEGAL RECOURSE : If nothing else prove effective, a channel partner may choose to file a lawsuit.

EMPLOYEE EXCHANGE : TO exchange persons between two or more channel levels.

STRATEGIC JUSTIFICATION : A convincing strategic justification serve distinctive segments and do not compete as much as they think can reduce potential for

conflict among channel members.

CO-OPTATION : Co-optation is an effort by one organisation to win the support of the leaders of another by including them into advisory councils, board of directors, etc.

SUPERORDINATE GOALS : Channel members can come to an agreement on the superordinate goal they are jointly seeking.

DIPLOMACY, MEDIATION AND ARBITRATION : When conflict is acute, the parties resort to these stronger means.

Created by NILESH RANA of IIT BHU under the guidance of

Prof. SAMEER MATHUR, IIM LUCKNOWwww.iiminternship.com

Thank you .