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How to overcome and resolve channel conflict 0 replies,3222 views

Channel conflict, channel members is engaged in the activities of a hamper or not conducive to the organization to achieve its goals, which happens all the contradictions and disputes. Distribution channels are designed to channel members at different angles, different interests and different methods to complete under the influence of multiple factors, therefore, channel conflict is inevitable. [Edit this section] the type of channel conflict (1) the level of channel conflict refer to the same channel model, the same level of conflict between brokers. The level of conflict generated mostly because manufacturers do not target the number of market intermediaries to make a reasonable charge of regional planning, so that the interests of each other brokers for their own strife. This is because the manufacturer to develop a certain target market, in order to obtain more benefits brokers are bound to win more market share in target markets expand enclosure. For example, an area business brokers A product companies may be operating in the same area that companies A broker in another product pricing, promotion and after-sales service, etc. are too aggressive, robbed them, and business. In the event of such conflicts, the production enterprises should take effective measures to mitigate and to coordinate these contradictions, or else it will affect the channel member cooperation and product sales. In addition, the production enterprises should plan ahead and take the appropriate measures to prevent these from happening. (2) refers to the vertical channel conflict in the same channel in the conflict between different levels of enterprises, the level of channel conflict than the conflict to be more common. For example, some wholesalers, manufacturers may complain about tight controls in terms of price, left to their own profit margins are too small to provide services (such as advertising, marketing, etc.) too small; retailers, wholesalers or manufacturers, There may also be a similar dissatisfaction. Vertical channel conflict is also known as the upstream and downstream channel conflict. On the one hand, a growing distributor of lead from their own interests, to direct and distribution sales of combination products, which inevitably have to compete for customers with downstream distributors, greatly dampened the enthusiasm of the downstream channel; another , when the later enhanced the strength of downstream distributors, which do not lead the current status of the heart, hope in the channel system has greater rights, launched a challenge to the upstream channel. In some cases, the production enterprises in order to promote their products directly to the two dealers over a dealer supply, so that a conflict between upstream and downstream channels. Therefore, manufacturers must start from the global to properly resolve the vertical channel conflict, and promote better cooperation among channel members. (3) the conflict between the different channels as the customer market segments and increase the channels available, more and more enterprises to adopt multi-channel marketing system is the use of channel mix, integration. Conflicts between different channels refers to the manufacturing enterprises to establish multi-channel marketing system, the different channels serve the same target market arising from the conflict. For example, the United States, the original Levi jeans store sales through the special distribution, when it decided to Sears and Penney company and incorporate it into their distribution partners, the special dealership expressed strong dissatisfaction. Therefore, manufacturers should pay attention to the boot between the channel members to compete effectively, to prevent excessive competition and coordination. Conflicts between different channels in a channel of lower prices (usually occurs in the case of bulk purchase), or reduce the margin, the performance was particularly strong. [Edit this paragraph] channels to generate channel conflict because the causes of conflict seems particularly differentiation, in essence, the causes of conflict in the following seven: \u00B0 the role of antagonistic role is a member of a post made to a set of actions requirements. Used in marketing channels, any channel members must achieve a number of his or her task should be achieved. \u00B0 scarce resources to the franchisor should provide a wide range of franchise business assistance and marketing support, the other hand, franchisees should be strictly in accordance with the franchisor's standard operating procedures to operate. If there is one party away from its established role (for example, franchisees decided to prepare some of their policies), conflicts arise. Sometimes, the channel members to achieve their respective goals, the allocation of a number of valuable resources were divided on the issue, this time also have a conflict. \u00B0 perception difference of a representative example is the purchase of the site (point-of-purchase, POP) promotions. The manufacturer of such an approach that POP is an effective promotions can improve the volume of retail sales. And retailers, as the site is usually a pile of promotional material for the waste, taking up valuable space. For example, a manufacturer of hardwood flooring produced from that beautiful four-color brochure to showcase their products in the luxury home in the function of the original intention of these booklets distributed to customers to patronize the store, the quality of its show floor, aesthetics and usage. Thousands of brochures with floor shows a large furniture retail service center, retailers not only failed to come up with these booklets, brochures crushed hand, most of the carton used to return materials installed. \u00B0 A typical example is the expected difference in the nation's largest transmission repair service company Aamoco company. Aamoco franchise forecast provided by the manufacturer as the vehicle maintenance to ensure that more and more, their future business will be increasingly difficult. This business will make many of the expected reduction in franchise urgently require royalty rates from 9% to 5%, while expanding its business area. Thus lead to violent conflict. Aamoco company excuse: because it is expected to decline next transmission repair business, companies need to increase licensing fees in order to do more advertising. \u00B0 decision-making price differences is a typical example of decision-making. Many retailers believe that the price decision is their decision-making areas, and some manufacturers think that they have the right pricing. Manufacturer support in some cases repealed in 1975, "fair trade" because the law gives its retail pricing to extend their decision-making. Although the official "Fair Trade" has been abolished, fair trade is still abound. As a result, manufacturers tell retailers clever: if they do not accept the manufacturer's pricing proposal, we will lose the supply of goods. Those in the highly competitive market, retailers need pricing flexibility are often price-fixing by manufacturers trying to invade its territory. This sometimes leads to long-term violent conflict. \u00B0 objectives inconsistent with a department store's men's shirt department, for example, while sales of three brands here. The department's goals, and even beyond the target, to sell the shirt does not matter which brand. As for the manufacturer is concerned, its particular brand of product sales and market share to determine its survival, the concept of brand sales and retailers have gone very differently. If one ignores the brand manufacturers are retailers, retailers, manufacturers will be considered as the behavior of the goals set for its obstacles, which also laid the seeds of conflict goals. \u00B0 communication barriers to AlphaGraphics's case, as a concession granted to those in the U.S. and abroad have 300 franchise stores. Many franchisees complain again and again. AlphaGraphics of its lack of support that the company, they pay franchise fees but do not know how this money to improve their business. A number of angry franchisees sued the franchisor who, AlphaGraphics companies explain themselves: they need to get from the franchisor of comprehensive information. For example, less than half of the AlphaGraphics franchise companies according to the requirements of those who pay a monthly financial statements. In response to this dilemma, AlphaGraphics, president Michael said: Unless the franchise handed over a monthly financial statements on time, or AlphaGraphics difficult for companies to help them improve their business. In order to resolve conflicts, AlphaGraphics franchise company revised the contract provides for an increase of the concession granted by the transparency of how to use the license fee, franchisees must also requested to provide detailed and timely financial statements. Also, there is a direct cause of conflict is that manufacturers and distributors, network members are in the pursuit of profit maximization. [Edit this paragraph] channel conflict solution methods to solve the typical channel conflict: 1. Super Target method when enterprises are facing competition from rivals, and establish channels of super goal is to unite the members of the party. Super Target is the channel members to work together to achieve the individual can not achieve. Channel members are sometimes signed in some way looking for a basic objectives of their joint agreement, which includes channels of live, market share, quality and customer satisfaction. Basically, the super target is a single company can not afford, can only achieve through cooperation. Generally only when the channel has been threatened, will contribute to the common goal of achieving super-resolution of the conflict, only to establish the necessary super-goal. The vertical nature of the conflict, an effective way to deal with two or more channels to implement the level of personnel exchange. For example, manufacturers of some part of dealer sales manager to work for some time, some dealers at the manufacturer responsible for policy formulation in areas related to the work of dealers. Through the exchange of personnel, can provide a put ourselves in the position of the other party to consider the issue, to facilitate in determining the basis of common objectives to deal with some conflict. 2. Communication to resolve conflicts through persuasion is actually in the use of leadership. In essence, there is a conflict to persuade the channel for communication between members the opportunity to influence the emphasis on its behavior by persuasion rather than information sharing, and also to reduce conflicts arising about the division of functions. 3. Consultations and negotiations aimed at the negotiations to stop the conflict between members. A compromise may be to avoid the outbreak of conflict, but not to address the root causes of conflict. As long as the pressure continues, will eventually lead to conflicts. In fact, negotiation is a method of channel members to bargain. During the negotiations, each member will give up something in order to avoid conflict, but the use of negotiation or persuasion depends on communication skills of members. In fact, the use of such methods of conflict resolution, each member needs to form an independent strategic approach to ensure the problem. 4. Sometimes conflict legal strategy to resolve by the government, access to justice is also the use of force to solve the problem. For this approach also means that channels with the leadership does not work, that is, through negotiation, persuasion and other means has no effect. Once the use of legal means, the other party may fully comply with their wishes to change their behavior, but will produce less litigation side, this result may be conflict between the increase rather than decrease. In the long run, the parties may dispute the ongoing problem of leaving the legal channels of deteriorating relations. 5. Out of the final settlement of the conflict is to withdraw from the marketing channels. In fact, out of a marketing channel is a common method of conflict resolution. An attempt to exit the channel either for their own businesses should burn any bridges, or willing to change its fundamental business objectives can not be achieved. If a company wants to continue in the original industry, there must be other options for channels. For the companies, the choice of channels to cost at least should not be large than it is now, or it is willing to spend a much higher cost to avoid the current conflict. When the horizontal or vertical irreconcilable conflict in the case, the exit is a desirable approach. Exit from the existing channels may mean disruption or some channel members with a contractual relationship.
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