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Channel Climate

Channel Climate . Name – Shahed Rahman. Introduction. There are no islands in Marketing Channels, no place where firms may unaffected by the action of other channel members. Successful Business rely on exchange relationship in the form of marketing channels

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Channel Climate

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  1. Channel Climate Name – ShahedRahman

  2. Introduction • There are no islands in Marketing Channels, no place where firms may unaffected by the action of other channel members. • Successful Business rely on exchange relationship in the form of marketing channels • Conflict is always possible because each channel members has its own goals and objectives that are frequently incompatible with those of other channel members • Intermediary conflict include: • Quality of Management • Territory Boundaries • Margin Sizes

  3. Channel Climate • Defined as the characteristics of the channel as reflected in the perceived level of consideration that exists in the exchange relationship. • Mutual respect • Trust • Support • Friendship

  4. Model of Channel Climate and its Components Exchange Relationship Policy Norms Role Specification Practices Attitudes Power sources Consideration Behavior Reward Structures Channel Member A Channel Member B

  5. Boundary Personal • Who represent the individual firm in the channel system • Need to identify the influence that climate has on the behaviors within marketing channels • Help member to design the strategies to get along and also future success

  6. Important Channel Climate Behaviors • Cooperation and Coordination • Reflected in the members willingness to work together for a common purpose • Conflict • When channel members sense that the behavior of other channel member is hamperingtheir performance or the attainment of the goal • Power and Dependence • Ability of one channel member to evoke a change in another member’s behavior

  7. Model of Channel Power ( A and B )

  8. Achieving Cooperative Channel Climates • Channel relationship wont flourish in the absence of cooperative decision making or coordinated actions • Marketers benefit when they identify which of their assets are potentially attractive to other channel partners • When channel partners rely on each other for some commodity or service – known as mutual reliance- share power successfully. • Technical knowledge • Relationship Knowledge

  9. Each Partner Should • Identify what each partner brings to the relationship prior to entering the relationship • Ensure that each partner is flexible in terms of interests, needs, understanding and a willingness to explore alternative approaches to problems prior to entering the relationship • Develop a culture of cooperation and mutually beneficial coordination after the relationship is joined

  10. Conflict Resolution and Channel Climate • Conflict can be handled in ways that lead to constructive outcomes for channel members • Conflict is unavoidable in channel relationships • Problem solving • Persuasion • Bargaining • Politics

  11. Compliance Techniques • Rapport Building • Information Exchange • Recommendations Requests • Promises • Threats

  12. Compliance Techniques • Rapport Building similar our corporate cultures? • Process by which harmonious or sympathetic relations are established, is based on subtle (Fine) cues • Have we developed a climate of trust ? • Mutual levels of commitment to this relationship satisfactory? • Merging different management styles? • Information Exchange • Boundary personnel initiate a discussion on general business concerns and operating policies to change the perceptions of how the firm might be more • Recommendations Requests • Promises • Threats

  13. The Four Stages of relationships Development

  14. Improving Channel Performance • More frequent and more effective communication • Formal or informal processes through which grievance (complains) may be expressed • More opportunity to critically review past partner actions • An appropriate distribution of power within the relationship • Standardized processes of conflict resolution already in place

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