SALES AND

DISTRIBUTION
MANAGEMENT

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 2

Module 4
Managing Channel Member Behaviour

Conflict in the marketing Channel, Power in the Marketing Channel,

Conflict handling, Roles and responsibilities of the channel members, and
Communication Processes in the Marketing Channel

bschool.cms.ac.in
 o Conflict in the marketing Channel,
o Power in the Marketing Channel,
o Conflict handling,
o Roles and responsibilities of the channel
members
o Communication Processes in the
Marketing Channel
Conflict in the marketing Channel

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 o Conflict in the marketing Channel,
o Power in the Marketing Channel,
o Conflict handling,
o Roles and responsibilities of the channel
members
o Communication Processes in the
Marketing Channel

Channel Conflict: The various stages

bschool.cms.ac.in
 o Conflict in the marketing Channel,
o Power in the Marketing Channel,
o Conflict handling,
o Roles and responsibilities of the channel
members
o Communication Processes in the
Marketing Channel
Channel Power

• The nature of power has been highlighted greatly by the contributions,

particularly Emerson (1962) and French and Raven (1959).

• Emerson emphasizes on the relationship between power and dependence in

his definition of power:

“The power of A over B is equal to and based upon, the dependence of B

upon A. The dependence of actor B upon actor A is (i) directly proportional to
B’s motivational investment in goals mediated by A, and (ii) inversely
proportional to the availability of those goals to B outside of the A-B relation.”

bschool.cms.ac.in
 o Conflict in the marketing Channel,
o Power in the Marketing Channel,
o Conflict handling,
o Roles and responsibilities of the channel
members
o Communication Processes in the
Marketing Channel
Channel Power

• The theory propounded by French and Raven has become a popular

classification of bases, or sources of power in channel management.
According to them:

“The sources of A’s power over B are the relationships between A and B from
which power is derived. (i) B’s perception that A has the ability to mediate
rewards for B, (ii) B’s perception that A has the ability to mediate
punishments for B, (iii) B’s perception that A has a legitimate right to
prescribe behaviour for B, (iv) B’s identification with A, and (v) B’s perception
that A has some special knowledge or expertness. Reward, coercive,
legitimate, referent, and expert are the designations given to each of these
power sources, respectively.
bschool.cms.ac.in
 o Conflict in the marketing Channel,
o Power in the Marketing Channel,
o Conflict handling,
o Roles and responsibilities of the channel
members
o Communication Processes in the
Marketing Channel

Conflict Management Methods at Different Stages of Conflict

bschool.cms.ac.in
 o Conflict in the marketing Channel,
o Power in the Marketing Channel,
o Conflict handling,
o Roles and responsibilities of the channel
members
o Communication Processes in the
Marketing Channel

Conflict Management Methods at Different Stages of Conflict

bschool.cms.ac.in
Roles and o
o
o
Conflict in the marketing Channel,
Power in the Marketing Channel,
Conflict handling,
responsibilities o Roles and responsibilities of the channel
members
o Communication Processes in the
Marketing Channel
Market coverage

Development of new markets

Development of new key accounts

Holding inventory

Extending credit to the market

Proper implementation of promotions

Key Account management

Technical advice and support

Service support

Complaint handling

Market feedback and reporting

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 o Conflict in the marketing Channel,
o Power in the Marketing Channel,
o Conflict handling,
o Roles and responsibilities of the channel
members

Roles and responsibilities of the channel

o Communication Processes in the
Marketing Channel

members
• Information gathering
• Consumer motivation
• Negotiating with suppliers
• Placing orders
• Financing
• Inventory management
• Risk bearing
• After sales support
SDM- Ch 9
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 o Conflict in the marketing Channel,
o Power in the Marketing Channel,
o Conflict handling,
o Roles and responsibilities of the channel
members

Roles and responsibilities of the channel

o Communication Processes in the
Marketing Channel

members…
• Physical reach
• Customer contact
• Building relationships
• Market feedback
• Understand market trends and keep principals informed
• Handle price risks
• Finances market credit and inventory holdings
• Provide after sales service
SDM- Ch 9
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 o Conflict in the marketing Channel,
o Power in the Marketing Channel,
o Conflict handling,
o Roles and responsibilities of the channel
members
Communication Processes in the Marketing
o Communication Processes in the
Marketing Channel

Channel

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