Conflict Resolution Strategies

1. Conflict Resolution Strategies Teacher – ShahedRahman

2. Introduction • Successful channel leaders are changing the nature and meaning of power and how it is employed to settle conflicts • Five Types • Negotiation • Problem Solving Strategies • Persuasive Mechanisms • Legalistic Strategies • Climate Management

3. Negotiation • Negotiation involves discussions aimed at resolving conflict • Negotiation is a fact of life in marketing channel • It should be mastered rather than feared • Procedural Steps for a Typical Negotiation Process: • Identify and Define the Problem • Get the Facts • Generate Possible Solutions • Evaluate Possible Solutions • Select Solutions • Implement the Solutions • Evaluate the Results

4. Negotiation Can be

5. Evaluating Desired Relationship Outcome • People and organizations often enter negotiations driven by self centered desires. • Types of negotiation Strategy one chooses will directly affect the relationship • The relative power of each channel member is roughly equivalent to that member’s dependence on the other • Channel members should not select negotiating strategies until after they have evaluated what they and other channel members seek regarding the future of their relationship

6. Choosing a Negotiation Strategy • Predatory (Greedy) Negotiation • Channel member who use predatory negotiation generally consider as weak or unsophisticated the idea of relationship • sustaining bargaining sessions featuring information sharing, give and take, open communication, creativity and an attitude of cultivating the common good • Future relationship is considered less important than the gains

7. Choosing a Negotiation Strategy • Symbiotic Negotiation • Attempts to create mutual value through tradeoffs and bargaining. • Negotiators believe that conflict resolution is best achieved by being cooperative, imaginative, and persistent in the pursuit of mutual gains relative to the possibility of no agreement • WIN -WIN Strategy

8. For a Win – Win Strategy • Separates the people from the problem • Separates the substantive elements of the issue under conflict from the personal relationships between the boundary personnel • Focuses on needs rather than positions • Effective approach is to focus on the underlying human or organizational needs that caused boundary personnel to adopt their position in the first place • Develops options for mutual gain • Do not just stick with one point • Uses only objective criteria • Give the objectives and see they are willing to do this

9. Always Remember for Negotiation • Do Their Homework • Deal only from the top of the deck • Remember that quitters never win and winners never quit • Remember that attitude is everything • Build Bridges (Relationship) rather than walls

10. A Matrix of Likely Consequences to Channel Negotiations Strategy of Channel Member A Predatory Symbiotic Symbiotic Strategy of Channel member B Predatory

11. Problem Solving Strategies • Problem solving strategies are the actions taken to resolve the disputes , disagreements, or confrontation between the members of marketing channels • Problem Solving Strategies Involve the pursuit of alternative solutions to the conflict in questions • Three strategies • Compromise Strategy • Logrolling • Aggressive Strategy

12. Logrolling • Each channel participant identifies its priorities and offers concessions on those issues it views as less significant • Only occur if the manufacturer assigns a higher priority to price, while the retailer attaches greater importance to delivery • Logrolling is the trading of favors

13. Compromise Strategy • Involves the resolution of conflicts by establishing a middle ground based on the initial position of both parties • Several issues or concerns may be related to a given conflict • It is based on appropriate or reciprocal (mutual) concessions from their initial positions by both parties

14. Aggressive Strategies • To work out problems by using threats, persuasive arguments or punishments • In this case the objective is to extract through whatever means available , one sided concessions from the other channel member.

15. Persuasive Mechanisms • The act of persuasion implies that one channel member influences another member’s behavior • Viewed as something that is done with others • Implies a cooperative effort a process of give and take. • Personal acceptance • Confirming Motivation • Dispensing Rewards