StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Responsibilities That Suppliers Play to Manage Conflict between Multiple Channels - Assignment Example

Cite this document
Summary
The author of the paper "Responsibilities That Suppliers Play to Manage Conflict between Multiple Channels" will begin with the statement that the internet has revolutionized the way people all over the globe perceive trade, communication, security, education, and entertainment…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER98.5% of users find it useful
Responsibilities That Suppliers Play to Manage Conflict between Multiple Channels
Read Text Preview

Extract of sample "Responsibilities That Suppliers Play to Manage Conflict between Multiple Channels"

Responsibilities that suppliers play to manage conflict between multiple channels The internet has revolutionized the way people all over the globe perceive trade, communication, security, education and entertainment. People can perform a number of business activities like travel planning, banking, interior design from anywhere, at any time from the comfort of their offices or homes. The concept that describes the process of buying and selling through computer networks including the internet is referred to as the electronic commerce; e-commerce. The emergence of electronic commerce has resulted in new business models that proffer marketers with opportunities such as access to diverse markets and reduced business expenses. E-commerce also comes with a bunch of challenges such as channel conflict in many businesses to date (Webb 96). The manner in which a business manages the aforesaid channel conflict is a pertinent aspect in its success. A marketing channel is a set of mutually dependent firms engaged delivering a product or service. Multiple channels arise when a company employs separate channels to sell the same products to markets differing in some important way. A multichannel conflict occurs when the producer/ manufacturer have established two or more different channels to sell the product to the same target market. For illustration, a motor company may have its own retail showroom, authorized dealers, and also sells online. Sometimes, the middlemen come in conflict with the manufacturer, employing both direct and indirect channels of distribution. Such a conflict is known as the multichannel level conflict. A conflict may arise when a producer’s franchise prices its products lower than the middlemen, wholesaler or dealer. Conflicts can also arise when a producer sells a larger range of products through its own outlet than through the wholesaler or retailers (Webb 98). This discussion explores the role that suppliers play in managing conflicts between multiple channels. Suppliers can employ the marketing mix variables to manage multichannel conflict. Pricing Price is one of the prominent factor in which the most channel conflict is generated. Intermediaries closely watch what manufacturers or producers do through the online channel of distribution. Intermediaries express concerns regarding producers’ site and interpret it as a move to lessen their role with the customer. As a result, suppliers have started acknowledging that their channel partners will see and react to everything they put on the internet. In order to reduce conflicts, suppliers have chosen not to place and offer discounts on the internet in a bid to reduce price related conflicts (Brennan, Canning, and McDowell, 316). Distribution An internet channel of distribution has a key limitation in that it does not have the ability to offer physical delivery of tangible products. Suppliers work in conjunction with other channel partners to carry out the fulfillment role of orders placed on the internet. For illustration, HP employs this aspect of involving channel partners to drive its online sales efforts. By involving other channel partners in the sale serves to manage and avoid cannibalization the channel. In addition, by involving channel partners, suppliers build trust and cooperation between the intermediaries and prevent unwarranted channel conflicts (Webb, 100). Promotion Promotion entails persuading customers to purchase a product. An internet channel of distribution gives suppliers a favorable opportunity to promote their product offering directly to the end users. However, in order to avoid conflicts with other channels of distribution, suppliers are cautious on providing detailed product information along with search engines (Saxena 463). However, they choose not to accept orders online. Moreover, suppliers actively promote their channel partners on their websites, as well as permitting them to place their own adverts. Product Suppliers also manage their online product offering in a bid to lessen channel conflict. Some producers are conciliating their intermediaries by reducing their product offering on the internet to products not sold by their conventional channels (Saxena 461). Other manufacturers centre on consumer needs of the customers that prefer to buy through the electronic channel. In order to reduce channel conflict, suppliers employ creative ways of differentiating their online offering from those traded by their channel partners. Additionally, suppliers can use a distinct brand name for products sold through the internet. This reduces the probability of direct comparisons by consumers. Suppliers can also minimize channel conflict by selling products with growing demand via the internet, and leave products that have reached maturity and decline stages to other channels. Communication and coordination Communication and coordination are the core mechanisms through which suppliers can influence the level of channel conflict they encounter both internally and externally. Internal conflicts may arise among the departments responsible for managing various channels. Suppliers can manage the causes of channel conflict through proper coordination of distribution activities in the channels and within the firm. The key causes of conflict in a multiple channel of distribution include but not limited to goal incompatibility, differing perception of reality and domain (Kazmi 461). Distribution activities call for properly coordinated and effective internal and external communication strategies. Channels functions have to be coordinated for the distribution channel to offer utilities of time, place, form and possession. Channel coordination is the synchronization of activities and flows by channel components. Proper communications between a supplier personnel and internal marketing units plays a pertinent role in the channel coordination process. Producers need to communicate their online channel strategies to their channel partners. Suppliers take time to visibly explain their electronic commerce strategies in advance rather than introducing new channels under secrecy (Webb 100). This helps to eliminate probable conflicts as communication helps resellers to comprehend target segments and how supplier’s efforts can aid them rather than hurt them. Companies can avoid multiple channel conflicts by partitioning markets between the several agents based on geographic area, customer size, industry, or product group. In order for partitioning to be successful, channel members must agree on the basis for the partition and carry out business in accordance to their individual allocation. Suppliers can also minimize channel conflict by taking control of the channel relationship (Brennan, Canning, and McDowell 317). The above discussion focuses on how suppliers in an online channel of distribution can help in managing channel conflicts. Nevertheless, there are managerial implications of the same. The internet is despoiling traditional channels of distribution that entail physical handling of products from the time of production to the time of use. The implication is that creating online retailing system may push away traditional retailers, eventually hurting sales. Thus, suppliers should not underestimate the significance and the role played by conventional resellers as they embrace electronic marketing in this digital age era. Works Cited Brennan, Ross, Canning, Louise and McDowell, Raymond. Business-to-Business Marketing. NY: SAGE, 2010. Print. Webb, Kevin. Managing channels of distribution in the age of electronic commerce. Industrial marketing management 31(2002) 95-102. Print. Saxena, Rajan. Marketing Management 4E. London: Tata McGraw-Hill Education, 2010. Print. Kazmi, S HH. Marketing Management Kazmi. New Delhi: Excel Books India. Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Channel conflict and resolution paper Assignment”, n.d.)
Retrieved from https://studentshare.org/marketing/1484209-channel-conflict-and-resolution-paper
(Channel Conflict and Resolution Paper Assignment)
https://studentshare.org/marketing/1484209-channel-conflict-and-resolution-paper.
“Channel Conflict and Resolution Paper Assignment”, n.d. https://studentshare.org/marketing/1484209-channel-conflict-and-resolution-paper.
  • Cited: 0 times

CHECK THESE SAMPLES OF Responsibilities That Suppliers Play to Manage Conflict between Multiple Channels

Interrelationship Between Human Resource Management and Success of Performance Management

The paper "Interrelationship between Human Resource Management and Success of Performance Management" focuses on the critical analysis of the interrelationship between Human Resource Management and Success of Performance Management in the effective competitive advantage....
41 Pages (10250 words) Dissertation

Managing a diverse workforce

But when there is authoritarian leadership in an organization and the managers refuse to extensively bank on opening myriad communication channels, the problems of the workers are not listened and a lot of room is made for racial discrimination, bigotry, controversies, and conflicts.... Though it is common to see conflicts in any organization where there is a diverse workforce, but resolving such issues through the process of conciliation and ensuring multiple ways of communication together help to control the chaos before it gets out of control....
14 Pages (3500 words) Essay

Managing Marketing Channels

1), "The world's third largest software vendor has pledged to eliminate the long-standing conflict between direct and indirect and has launched a strategy which it claims will encourage the two sides to work together.... An example of conflict involving direct versus indirect channels comes into play with Computer Associates.... nbsp;"The main function of a distribution channel is to provide a link between production and consumption.... An example of a conflict occurring over stock levels is the recent release of Mac's iPhone all throughout the world, including the UK....
6 Pages (1500 words) Literature review

Strategic planning

Tesco Metro stores sized between Tesco superstores and Tesco Express stores.... Tesco is the third largest retailer in the world and is the largest in England.... Started in 1919 Tesco is the oldest company in England. ... ... he success of Tesco over the… These changes include more women employment, greater disposable income, less home cooked meals, rise in usage of cars, and Britain's food policy Further, innovation is another key factor behind their success....
12 Pages (3000 words) Essay

Logistics and Supply Chain Management

IT further helps to strategically manage whether the supplier should supply directly or through a warehouse between the supplier and the customer.... Multi-sourcing can be eliminated and manufacturers can stick to a few suppliers or ideally one supplier per component.... Supplier selection need not solely be based on price but quality and delivery performance can be used to assess the efficiency of the suppliers.... JIT purchasing enables awarding long-term contract to the suppliers in return for the demand that buyer makes on the supplier....
12 Pages (3000 words) Essay

The Role of Project Manager as Planner, Controller and Community Stakeholder

In major renovation projects involving multiple stakeholder groups, relationship development over a long-term project is a key function both for planning and for control.... From the paper "The Role of Project Manager as Planner, Controller and Community Stakeholder" it is clear that high-quality business relationships are vital to gain collaboration and ongoing respect for the project, taking into consideration how the community views renovation and construction efforts....
7 Pages (1750 words) Coursework

Marketing Strategy for PepsiCo Incorporated

The three major distribution channels of the organization are direct store delivery, third party distribution network and customer warehouse.... Though the organization focuses almost all the section of the market, they prefer to provide more attention towards the middle-class population aged between 16-35years (Marketline, 2014).... Therefore, it will suggest the essential strategies to eliminate these conflict issues....
11 Pages (2750 words) Case Study

Human Resource Issues Related to Cultural Diversity Faced by Marks and Spencer in China

Marks & Spencer's, also known as M&S, is a multinational retailer company that specializes in dealing with multiple products and services (1Marks and Spencer plc, 2015).... M&S was established in the year 1884 and later transformed itself from a single market shop to multiple-chain retail store (3Marks and Spencer plc, 2015).... Finding: From the research, it was identified that various factors of cultural diversity play a vital role in M&S in Wu Han....
43 Pages (10750 words) Research Paper
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us