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Channel conflict and resolution paper - Assignment Example

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Channel conflict and resolution paper

The emergence of electronic commerce has resulted in new business models that proffer marketers with opportunities such as access to diverse markets and reduced business expenses. E-commerce also comes with a bunch of challenges such as channel conflict in many businesses to date (Webb 96). The manner in which a business manages the aforesaid channel conflict is a pertinent aspect in its success. A marketing channel is a set of mutually dependent firms engaged delivering a product or service. Multiple channels arise when a company employs separate channels to sell the same products to markets differing in some important way. A multichannel conflict occurs when the producer/ manufacturer have established two or more different channels to sell the product to the same target market. For illustration, a motor company may have its own retail showroom, authorized dealers, and also sells online. Sometimes, the middlemen come in conflict with the manufacturer, employing both direct and indirect channels of distribution. Such a conflict is known as the multichannel level conflict. A conflict may arise when a producer’s franchise prices its products lower than the middlemen, wholesaler or dealer. Conflicts can also arise when a producer sells a larger range of products through its own outlet than through the wholesaler or retailers (Webb 98). This discussion explores the role that suppliers play in managing conflicts between multiple channels. Suppliers can employ the marketing mix variables to manage multichannel conflict. Pricing Price is one of the prominent factor in which the most channel conflict is generated. Intermediaries closely watch what manufacturers or producers do through the online channel of distribution. Intermediaries express concerns regarding producers’ site and interpret it as a move to lessen their role with the customer. As a result, suppliers have started acknowledging that their channel partners will see and react to everything they put on the internet. In order to reduce conflicts, suppliers have chosen not to place and offer discounts on the internet in a bid to reduce price related conflicts (Brennan, Canning, and McDowell, 316). Distribution An internet channel of distribution has a key limitation in that it does not have the ability to offer physical delivery of tangible products. Suppliers work in conjunction with other channel partners to carry out the fulfillment role of orders placed on the internet. For illustration, HP employs this aspect of involving channel partners to drive its online sales efforts. By involving other channel partners in the sale serves to manage and avoid cannibalization the channel. In addition, by involving channel partners, suppliers build trust and cooperation between the intermediaries and prevent unwarranted channel conflicts (Webb, 100). Promotion Promotion entails persuading customers to purchase a product. An internet channel of distribution gives suppliers a favorable opportunity to promote their product offering directly to the end users. However, in order to avoid conflicts with other channels of distribution, suppliers are cautious on providing detailed product information along with search engines (Saxena 463). However, they choose not to accept orders online. Moreover, suppliers actively promote their channel partners on their websites, as well as permitting them to place their own adverts. Product Suppliers also manage their online product offering in a ...Show more

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Name: University: Tutor: Course: Date: Responsibilities that suppliers play to manage conflict between multiple channels The internet has revolutionized the way people all over the globe perceive trade, communication, security, education and entertainment…
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