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Marketing 624

Marketing 624. Channels of Distribution Management. Behavioral Processes in Marketing Channels. Dr. Bert Rosenbloom Professor of Marketing and Rauth Chair in Electronic Marketing. Behavioral Processes in Marketing Channels.

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Marketing 624

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  1. Marketing 624 Channels of Distribution Management Behavioral Processes in Marketing Channels Dr. Bert Rosenbloom Professor of Marketing and Rauth Chair in Electronic Marketing

  2. Behavioral Processes in Marketing Channels • Marketing Channels are not just economic systems • Marketing Channels are also Social Systems • Therefore, the same behavioral processes existing in all Social systems also exist in Marketing Channels

  3. Behavioral Processes in Marketing Channels The behavioral processes of most relevance to marketing channels are: Conflict Power Role Communications “noise”

  4. Conflict Defined When one Party perceives the behavior of another party in the social system to be impeding the attainment of its goals, a state of conflict exists.

  5. Conflict Compared to Competition Conflict ≠ Competition Conflict > Competition Competition • Object centered • Indirect • Impersonal Conflict Direct Personal Opponent centered

  6. Causes of Channel Conflict • Role Incongruities • Resource Securities • Perceptual Differences • Expectational Differences • Decision Damping Disagreements • Goal Incompatibilities • Communicational Difficulties

  7. Effects of Channel Conflict No Effect Negative Effect Positive Effect Multiple Effects Over Different Ranges

  8. Managing Channel Conflict (I) • Conflict is inherent in marketing channels • Many causes: so conflict is pervasive • Conflict can affect channel efficiency First of all must recognize that:

  9. Managing Channel Conflict (II) • Detect Channel Conflict • Informal communication system • Marketing Channel Audit • Distributors’ advisory councils • Appraise Effects of Conflict • Negative • Positive • No effect • Resolve Conflict • Have a dialogue over lunch all the way to going to court

  10. Power in Marketing Channels Power Defined: The capacity of one channel member to get another channel member to do something that he otherwise would not have done.

  11. Bases of Power for Channel Control 1st Place Reward Power Coercive Power Legitimate Power Referent Power Expert Power

  12. Using Power in Marketing Channels Identifying available power bases Selecting and using appropriate bases What “buttons” are available and which ones should be pushed

  13. Role in Marketing Channels Role Defined: Set Prescriptions defining what the behavior of a position member should be.

  14. Communication in Marketing Channels Communication Defined: Flow of information that enables channel members to send and receive messages

  15. Problems “Noise” in Channel Communications Differing Goals Language Differences Perceptual Differences

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