Marketing 624

Channels of Distribution Management

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

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

Behavioral Processes in Marketing Channels

The behavioral processes of most relevance to marketing channels are:
Conflict Power Role Communications noise

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.

Conflict Compared to Competition

Conflict Competition Conflict > Competition Conflict Direct Personal Opponent centered Competition Object centered Indirect Impersonal

Causes of Channel Conflict

Role Incongruities Resource Securities Perceptual Differences Expectational Differences Decision Damping Disagreements Goal Incompatibilities Communicational Difficulties

Effects of Channel Conflict

No Effect Negative Effect Positive Effect Multiple Effects Over Different Ranges

Managing Channel Conflict (I)

First of all must recognize that:

Conflict is inherent in marketing channels Many causes: so conflict is pervasive Conflict can affect channel efficiency

Managing Channel Conflict (II)

Detect Channel Conflict Informal communication system Marketing Channel Audit Distributors advisory councils 1. Appraise Effects of Conflict Negative Positive No effect 1. Resolve Conflict
1.

Have a dialogue over lunch all the way to going to court

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.

Bases of Power for Channel Control

Reward Power Coercive Power Legitimate Power Referent Power Expert Power
1st Place

Using Power in Marketing Channels

Identifying available power bases Selecting and using appropriate bases

What buttons are available and which ones should be pushed

Role in Marketing Channels

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

Communication in Marketing Channels

Communication Defined:
Flow of information that enables channel members to send and receive messages

Problems Noise in Channel Communications

Differing Goals Language Differences Perceptual Differences