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1、Chapter 3Behavioral Processes in Marketing ChannelsThe Marketing Channel As a Social System Inter-organizational social systemConflictPowerRoleCommunicationConflict When will the conflict occur? When one member of the marketing channel perceives the other member (s)s actions impede the attainment of
2、 his or her goal.Example What kind of conflicts will occur?DealersAuto MakersWe want you to order more cars before the season endsWe do not want to keep too many inventories. We only want to order the “hot” cars!Conflict in the Marketing Channel Conflict vs. CompetitionDirectPersonalOpponent- center
3、edInterface with one anothers attainmentIndirectImpersonalObject-centeredNo interface with one anothers attainmentExample: Competition Private brand vs. national brand Impersonal and market-centered Not engaged in blocking activities to impede each others goals of increasing customers acceptance Nat
4、ional BrandPrivate BrandManufacturersRetailing StoresConsumer MarketExample: Conflict Coupon WarManufacturersRetailing StoresAccept any coupon regardless of what products are purchasedRetailing stores have impeded the goal of encouraging consumption of particular products Causes of Channel Conflict
5、Causes of Channel Conflict Role Incongruities Resource Scarcities Perceptual Differences Expectation Differences Decision Domain Disagreements Goal Incompatibilities Communication DifficultiesExample:Role Incongruities Franchiser: provide managerial and promotion support Franchisees: follow the oper
6、ation policiesExample: Resource Scarcities House accounts: manufacturers would like to sell directly to the retailing stores which have the higher sales volume Site selection in franchised channels: when the franchisers establish new franchisees in the market that could take business away from the e
7、xisting franchisees Example: Perceptual Differences POP (Point-of-Purchase)The perception of manufacturersThe perception of retailersIt is valuable tool for promoting my products!It is a useless junk that take up valuable floor space!Example:Expectation Differences How will it influence the auto rep
8、air business if auto makers extend warranties?Franchiser of auto repair businessFranchisees of auto repair businessTo promote the repair business more aggressivelyNeed a higher loyalty rateRequire a lower loyalty rateBecause repair business will be reduced by extended warrantiesExample: Decision Dom
9、ain Disagreements Which member has the right to make what decision? Pricing decision: do the manufacturer have the right to make pricing decision at the retailing level?Example: Goal Incompatibilities Manufacturers goalSell my products as much as possible Retailers goal (Amazon Marketplace)Sell thos
10、e products that can provide the highest profits Example: Communication Difficulties Alpha-Graphics (a franchiser of printing services)You did not give me any support!How did you spend the loyalty fees I gave to you?You did not give me the monthly financial reports. How can I give you support if you
11、did not provide me sufficient information?Conflict and Channel Efficiency What is channel efficiency? The degree to which the total investment in the various inputs necessary to achieve a given distribution objectives can be optimized in terms of outputs.Conflict and Channel Efficiency Negative Effe
12、ct Conflict EfficiencyChannel EfficiencyConflict LevelConflict and Channel Efficiency No Effect It occurred when there is a high level of dependence and commitment among channel membersChannel EfficiencyConflict LevelConflict and Channel Efficiency Positive Effect Conflict Channel EfficiencyChannel
13、EfficiencyConflict LevelChannel EfficiencyConflict LevelGeneral CurveConflict in the Marketing Channel Managing Channel Conflict Detecting Channel Conflict Appraising the Effect of Conflict Resolving ConflictConflict in the Marketing Channel Detecting Channel Conflict Perception survey for channel m
14、embers (see Table 4.1) Marketing channel audit Channel member committeeConflict in the Marketing Channel Appraising the Effect of Conflict Frequency of occurrence of the conflict Importance or intensity of the conflictConflict in the Marketing Channel Resolving Conflict Focus on joint problem solvin
15、g Establish a channel-wide committee Joint goal setting Arbitration Distribution executivesPower in the ChannelWhat is power? Power refers to the capacity of a particular channel member to control or influence the behavior another channel member(s)Power in the Marketing Channel Bases of Power for Channel Control Reward Power Coercive Power Legitimate Power Referent Power Expert PowerReward Power It refers to the capacity of one channel member to REWARD another if the later conforms to the influence of the formerReward Power Reward can be perceptional or financial gains
