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Behavioral processes in marketing channels

Behavioral processes in marketing channels. Week 3 Instructor: Jungwan Lee . Learning objectives. Understand that behavioral processes such as conflict, power, role, and communication are inherent behavioral dimensions in marketing channels Know the major causes of channel conflict

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Behavioral processes in marketing channels

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  1. Behavioral processes in marketing channels Week 3 Instructor: Jungwan Lee

  2. Learning objectives • Understand that behavioral processes such as conflict, power, role, and communication are inherent behavioral dimensions in marketing channels • Know the major causes of channel conflict • Recognize the major issues involved in managing channel conflict • Delineate the bases of power in marketing channels

  3. An economic system A social system: behavioral process Conflict Power Role Communication process Marketing channel characteristics

  4. Conflict: ..is direct, personal, and opponent-centered behavior. ..blocking activities Coupon war Competition: ..is object-centered, indirect, and impersonal. ..interference Private brand vs. National brand Conflict vs. Competition

  5. Causes of channel conflict • Role incongruities • Resource scarcities • Perceptual differences: POP displays • Expectational differences • Decision domain disagreements • Goal incompatibilties • Communication difficulties

  6. Channel efficiency ..is the degree to which the total investment in the various inputs necessary to achieve a given distribution objective can be optimized in terms of outputs. Negative effect-reduced efficiency No effect- efficiency constant Positive effect-efficiency increased General curve Channel conflict vs. channel efficiency

  7. Managing channel conflict • Detecting channel conflict • Early warning system • Marketing channel auditing • Distributors’ advisory councils • Appraising the effect of conflict • Resolving conflict • Channelwide committee • Joint goal setting • Distribution executive • Arbitration

  8. Bases of power for channel control • Power..is the capacity of a particular channel member to control or influence the behavior of another channel members. • Reward power • Coercive power-Wal-Mart • Legitimate power-Franchisors • Referent power • Expert power

  9. Behavioral problems in channel communications • Goal differences • Language differences • Other behavioral problems • Perceptual differences • Secretive behavior • Inadequate frequency of communication

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