Chapter 13, channel management. After studying this chapter you will be able: Understand how and why channel conflicts occur, look at ways of managing conflict, channel practices followed to resolve conflicts, principles of channel management, various parameters on channel policy, way in which services use marketing channels. | Chapter 13 Channel Management SDM- Ch 13 Tata McGraw Hill Publishing Learning Objectives Understand how and why channel conflicts occur Look at ways of managing conflict Channel practices followed to resolve conflicts Principles of channel management Various parameters on channel policy Way in which services use marketing channels SDM- Ch 13 Tata McGraw Hill Publishing Channel Management Is in three broad phases: Use of power bases Identifying and resolving channel conflicts Channel co-ordination Use of power . SDM- Ch 13 Tata McGraw Hill Publishing Use of Power Bases Channel system has a set of players: Not equally motivated to implement the ideal channel design Whose expectations from the system differ Use of the 5 power bases brings diverse channel partners in line for effective implementation 5 power bases are: reward, coercion, legitimate, expert and referent (French & Raven) Two more power bases in the Indian context are support and competition SDM- Ch 13 Tata . | Chapter 13 Channel Management SDM- Ch 13 Tata McGraw Hill Publishing Learning Objectives Understand how and why channel conflicts occur Look at ways of managing conflict Channel practices followed to resolve conflicts Principles of channel management Various parameters on channel policy Way in which services use marketing channels SDM- Ch 13 Tata McGraw Hill Publishing Channel Management Is in three broad phases: Use of power bases Identifying and resolving channel conflicts Channel co-ordination Use of power . SDM- Ch 13 Tata McGraw Hill Publishing Use of Power Bases Channel system has a set of players: Not equally motivated to implement the ideal channel design Whose expectations from the system differ Use of the 5 power bases brings diverse channel partners in line for effective implementation 5 power bases are: reward, coercion, legitimate, expert and referent (French & Raven) Two more power bases in the Indian context are support and competition SDM- Ch 13 Tata McGraw Hill Publishing Use of Channel Power Channel members are dependent on each other. The power equations between them keep them working together. There are basically 5 types of power bases – reward, coercion, expert, reference and legitimacy. 2 more can be considered as support and competition. Extent of dependence defines the power base which is appropriate. SDM- Ch 13 Tata McGraw Hill Publishing “Power” of Motivation Reward – incentives for good performance Coercion – threat of punishment for non-performance Referent – benefit of sheer association with a strong company Legitimate – arising out of a contract Expert – specialized knowledge Support – additional benefits for better performers only Competition – created between channel partners French & Raven Countervailing power SDM- Ch 13 Tata McGraw Hill Publishing Countervailing Power Balances the power exerted by one channel member. It is not a one-sided equation. Both the channel member and the principal can have .
