Marketing channel reflection

Behavioural Processes in Marke2ng Channels

Lecture 4

Part 1 Marketing Channel Systems

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4

Adaptive Networks

Complex Adaptive Systems

Vendor IT Firm

RetailersWholesalers Corporate

Customer

Resellers

Alliance

Partners

Parent Firm

Gov’t & Industry

Competitors

Cultural Impact

Channel Marketing Relationships (CMRs) Interpersonal Commercial Relationships (ICRs)

Segment of 1st time consumers

Segment of Influencer consumers Segment of

Long-term consumers

Segment of Short-term consumers

Segment of Lost consumers

Segment of Innovator consumers

Individual consumers Individual

consumers

Individual consumers

Segment of Potential consumers

Figure 2.1:

Network approach and connections of an information technology company

Interface

of (B-to-C)

Relationships

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Interaction of channel constructs in Channel Marketing Relationships (CMRs)

Trust

Cooperation Commitment (+) or (-) Outcomes

(absence of Conflict)

Long-term relationship

Shared values

Personality Factors

Balanced Power

Communication

Inter-Dependence Adaptability

Importance

Conflict

Marke2ng Channels

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©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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A limited amount of channel conflict is healthy…..However, once the balance between coverage and conflict is lost, destruc2ve channel conflict can quickly undermine your channel strategy, market posi2on, and product line profitability.

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Resolving Conflict

“Communica+on, communica+on, communica+on. I think that’s the biggest. The thing is that you have to have that communica+on discussion with mul+ple points within the vendor all of the +me because you can’t rely on one person to carry it through. What we realise is that when you have one point person on a vendor, like your vendor account manager, when major conflict s arise, they’re going to protect their buC, not yours”.

Conflict Resolu2on - The Water boy

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Importance of effective Account Management

“I get a new vendor account manager who is so much beCer than the last account manager and this is great and they’re very effec+ve. So you come together and are close and this has a las+ng impact un+l that account manager leaves. Another one might create a sort of separa+on. You know when your account manager changes and you get an ineffec+ve one. It’s all about people rela+onships. If an account manager has lied and you learn that they lied to you and they will cause you to move apart.”

Power

Marke2ng Channels

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Walmart Retailer Power

Roles

Marke2ng Channels

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Communica3on

Marke2ng Channels

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Trust

Marke2ng Channels

Summary •  Channels are a behavioural system underpinned by rela2onship bonds.

•  Channels partners are co-dependent on each other. •  Managing and resolving conflict is a key channel management skill

•  Understanding the applica2on of power in channel rela2onships

•  Communica2on consistency over 2me results in trust and profits.

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