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ManagingConflicttoIncreaseChannelCoordinationChapter7编辑pptContentsASSESSINGTHEDEGREEANDNATUREOFCHANNELCONFLICTTHECONSEQUENCESOFCONFLICTMAJORSOURCESOFCONFLICTINMARKETINGCHANNELSCLASHOFMARKETDOMAINSFUELINGCONFLICTCONFLICTRESOLUTIONSSTRATEGIES:HOWDRIVECONFLICTANDSHAPECHANNELPERFORMANCE编辑pptReviewWhat’sthechannelpower?Channelpoweristheabilitytoalteranotherorganization’sbehavior.It’satool,neithergoodnorbadThepowerofAisequaltothedependenceofB.WhenisthedependenceofBonAhigh?BderivesgreatutilityfromdealingwithAandcannotfindthatutilityeasilyinoneofA’scompetitors.RealalternativestoAarefewwhentherearefewcompetitorsorwhenBfacesveryhighswitchingcostsifitleavesA.编辑pptReviewWhichsourcesdopowercomefrom?RewardCoerciveExpertLegitimateReferent编辑pptReviewWhichcountermeasurescanthedependentpartytake?Diversifying(buildinginalternativessuppliesofthechannelmember’sservices)FormingacoalitiontobringpressureonthepowerfulmemberExitingthebusiness编辑pptReviewCanimbalancerelationshipsnotfunctionquitewell?Imbalancerelationshipsareverycommonandcanfunctionquitewell.Thekeyisrestraintonthepartofthestrongerparty.编辑pptReviewHowtoframeaninfluenceattempt?Firstly,considerwhethertheinfluenceattemptispresentedasapositiveoranegative.Secondly,considerwhethertheinfluenceattemptispresentedascontingentframingornoncontingentframing.Intheshortterm,anegativeframing(whatonewilllose)oracontingentframing(ifyoudothis,thenyougetthat)isusuallyinferiortoapostiveornoncontingentframing.Inthelongrun,performanceoutcomessubstantiallyoverridetheseeffects.编辑pptReviewTranslatingpower,alatentability,intoinfluenceinvolvescommunications.Inchannels,therearesixcommonwaystocommunicate.Pleasepointoutwhichmethodswecanuseinpractice.Promises,legalisms,andthreatsarethreefairlyobtrusivewaysoftranslatingpower.Inwesterncultures,theyoftenprovokeresentmentandconflict.Ofthesethreeobtrusivemethods,thestrategyofmakingpromises(offeringrewardsfordesiredbehavior)isquiteeffective,onthewhole,andisastapleofstrong,long-termrelationships.Threeothercommoninfluencestrategiesaremakingrequestsfornostatedreason,exchanginginformation(failingtodrawaconclusionwhilediscussingtheotherparty’sbusiness),andmakingrecommendations(theexplicitfromofexchanginginformation).Theireffectivenessisheightenedbytheirunobtrusivenature.编辑pptLearningObjectivesDistinguishcircumstanceswhereconflictisnotnegativeandisneutralorevenpositiveUnderstandhowtodiagnoseconflictintermsofissues,frequency,intensity,andimportanceTracethenegativeeffectsofhighconflictonchannelperformanceSketchtheinherentsourcesofconflictinchannelrelationships编辑pptLearningObjectivesSeparateconflictintothreemaincauses:goals,perceptions,anddomainsUnderstandwhymultiplechannelshavebecomethenormanddescribewaystoaddresstheconflicttheycreateUnderstandwhymanysuppliersactuallylikegraymarketsTracethespiralofcoercionandreciprocationForecasttheimpactofadestructiveactandsuggesthowtoreduceit编辑pptLearningObjectivesDescribetheworkingsofinstitutionalizedmechanismsmanagementcanusetodampenconflictanddistinguishbetweenthosethatmanagementcandecreeandthosethatariseinarelationshipCategorizeconflictresolutionstylesanddescribetheireffectonhowwellachannelfunctions.Sketchtheeffectofeconomicincentivesonconflict编辑pptTHEDEGREEANDNATUREOFCHANNELCONFLICTThischapterexamineshowtorecognizethemanyformsofconflict,includinglatentconflict,perceivedconflict,functionalconflict,andoverconflict.Thischapterpresentsmethodstohelpathirdpartydiscernthetruenatureandlevelofconflictinachannelrelationship.编辑pptThischapteralsocoversthesequestions:Whataretheeffectsofconflict,longandshortterm,onthefunctioningofthechannel,itscoordination,itsultimateperformance,anditsfuture?Howdoesconflictariseandhowcanitbemanaged?Whatarethebeststrategiesforcontainingdestructive,excessiveconflict,andredirectingtheantagoniststoachievehigherlevelsofchannelcoordinationandperformance?编辑pptWhatischannelconflict?Indistributionchannel,conflictisnotnegative,butmoreneutral.Ratherthankeepingchannelmembersapartanddamagingtheirrelationship,someconflictactuallystrengthensandimprovesachannel.Channelconflictmeans:Behaviorbyachannelmemberthatisinoppositiontoitschannelcounterpart.Itisopponentcenteredanddirect,inwhichthegoalorobjectsoughtiscontrolledbythecounterpart.编辑pptIncontrast,competitionis:Behaviorinwhichachannelmemberisworkingforagoalorobjectcontrolledbyathirdparty(suchascustomers,regulatorsorcompetitors).Competingpartiesstruggleagainstobstaclesintheirenvironment.Conflictingpartiesstruggleagainsteachother.编辑pptConflictConflictimpliesanincompatibilityatsomelevel.LatentconflictExistatsuchalowlevelthatchannelmembersdonotfullysenseit.Thisconflictisduetoconditionsthatsettheinterestsofthepartiesatodds.Whenallpartiespursuetheirseparategoals,strivetoretaintheirautonomy,andcompeteforlimitedresources,theinterestofchannelmemberscollide.编辑pptPerceivedconflictPerceivedconflictoccurswhenachannelmembersensesthatoppositionofsomesortexists:oppositionofviewpoints,ofperceptions,ofsentiments,ofinterests,orofintentions.Ifindividualmembersdonotexperienceaffectiveconflict,theywouldnotdescribetheirdealingsasconflictual,eventhoughtheyopposeeachother.Ifindividualmembersexperiencedetrimentalemotions(tension,anxiety,anger,frustration,hostility),theydescribetheirchannelasconflictual.编辑pptManifestconflictOften,emotionsofoutrageandunfairnessreachapointthatmanagersrefuseeconomicallysensiblechoiceandhurttheirownorganizationsinordertopunishtheirchannelcounterparties.Ifnotmanaged,feltconflictcanescalatequicklyintomanifestconflict.Betweentwoorganizations,manifestconflictusuallyappearsasblockingeachother’sinitiativesandwithdrawingsupport.Intheworstcases,onesidetirestosabotagetheotherortakerevenge.编辑pptMeasuringConflictHowshouldtheobservergoaboutdiagnosingthetruelevelofconflictthatanorganizationfacesinachannelrelationship?Thebestwayistogatherfourkindsofinformation.Steps:CountinguptheissuesImportanceFrequencyofdisagreementIntensityofdispute编辑pptExampleAnassessmentofhowmuchconflictautomobiledealsexperienceintheirrelationshipwithcarmanufacturer.Step1:countinguptheissuesWhatarethemajorissuesofrelevanceoftwopartiesintheirrelationshipchannelrelationships?Forcardealers,thereareinventories,allocationanddeliveryofcars,thesizeofthedealer’sstaff,advertising,allowancesforpreparationofthecar,andreimbursementforwarrantywork.编辑pptStep2:ImportanceHowimportantiseachissuetothedealer?Thiscouldbedonejudgmentallyorcouldbedonebyaskingdealersdirectly.Forexample,letdealersindicatehowimportanteachissueistothedealership’sprofitabilityonascaleof0toten(veryunimportanttoveryimportant)Howimportantisinventorytothedealership’sprofitability?Veryunimportant|0|_1_|_2_|_3_|_4_|_5_|_6_|_7_|_8_|_9_|_10_|veryimportant编辑pptStep3:FrequencyofDisagreementHowoftendothetwopartiesdisagreeovereachparticularissue.ThiscouldbedonejudgmentallyorbycollectingdataForexample,dealersmaybeaskedtorecalldiscussionwiththemanufacturerovertheissueduringthelastyearandtoindicateonascaleof0toten(nevertoalways)howfrequentlythosediscussionsinvolveddisagreement.Duringthelastyear,howfrequentlydidthediscussionwiththemanufactureroverinventoryinvolvedisagreement?never|0|_1_|_2_|_3_|_4_|_5_|_6_|_7_|_8_|_9_|_10_|always编辑pptStep4:IntensityofDisputeHowintenselydothetwopartiesdifferoneachparticularissueOrhowfarapartarethetwopartiesintheirpositionsThiscouldbedonejudgmentallyorbycollectingdata.Forexample,dealersmayindicateonascaleofzerototen(notveryintensetoveryintense)howstronglytheydisagreeduringatypicaldiscussionoftheissue.Howstronglydodealersdisagreeduringatypicaldiscussionofinventory?Notveryintense|0|_1_|_2_|_3_|_4_|_5_|_6_|_7_|_8_|_9_|_10_|veryintense编辑pptIndexofmanifestconflict:Theseestimatescanbecomparedacrossdealerstoseewherethemostseriousconflictoccursandwhy.编辑pptThereisnorealargumentoveranyissueif:Theissueispetty(lowimportance)Thedifferentofopinionrarelyoccurs(lowfrequency)Thetwopartiesarenotveryfarapartontheissue(lowintensity)Ifanyoftheseelementsislow,theissueisnotagenuinesourceofconflict.Forexample,ifanallowanceforpreppingacarisaminorissue,itisofnorealimportthatdisagreementsoveritareintenseoffrequent.编辑pptTHECONSEQUENCEOFCONFLICTConflictisusuallythoughttobedysfunctional,tohurtarelationship’scoordinationandperformance.Butthereareoccasionswhenoppositionactuallymakesarelationshipbetter.FunctionalconflictOccurswhenchannelmembersrecognizeeachother’scontributionandunderstandthateachparty’ssuccessdependsontheother.编辑pptFunctional(useful)conflict’sleadsto:CommunicatemorefrequentlyandeffectivelyEstablishoutletsforexpressingtheirgrievancesCriticallyreviewtheirpastactionsDeviseandimplementamoreequitablesplitofsystemresourcesDevelopamorebalanceddistributionofpowerintheirrelationshipDevelopstandardizedwaystodealwithfutureconflictandkeepitwithinbounds编辑pptWhenisconflictfunctional?Fromthedownstreamchannelmember’sviewpoint,functionalconflictisanaturaloutcomeofclosecooperationwithasupplier.Andwhenchannelmembersarecommitted,disputesservetoraiseperformanceintheshorttermanddonotdamagetheleveloftrustintherelationship.Thefunctionalconflictisevenmorelikelyifthedownstreamchannelmemberhasconsiderableinfluenceoverthesupplier.编辑pptArepeacefulchannelsbetterchannels?Muchdependsonthereasonwhyconflictislow.Often,thetwosidesarenotoninagreement.Theysimplyarenotindisagreement,becausetheydonotcare.Thelackofconflictdisguisesalackofengagement.Thusconflictisquitelow,andsoistheperformanceofthechannel.Thesechannelsneedtoincreasetheiractivitylevelsandcommunicationlevels,whichwillincreasewelcomedandnotavoidedconflict.编辑pptSothechannelmembersneedtocareenoughtocommunicate,tocooperateandinevitabletodiscovertheirpointsofopposition.Butconflictescalateintosubstantialmanifestconflictaccompaniedbytensionandfrustration.Ifnotkeepwithinbounds,manifestconflictbecomesdamaging,andultimatelydestructive.AninfluentialchannelmemberisadisputatiousoneDisputatiouschannelmemberiswillingtogiveandtaketopushthechanneltooutperformitscompetition.编辑pptHowintenseconflictdamageschannelperformanceandcoordinateGiventhatsomechannelfrictionismundane,shoulditbeacceptedasinevitable,dismissedasnormal?No,becausehighchannelfrictioncreatescosts.Thehighlevelsofmanifestconflictaffectanorganization’ssatisfactioninamannerthatdamagesthechannel’slong-termabilitytofunctionasaclosepartnership.编辑pptHowhighlevelsofconflicterodechannelrelationshipCONFLICTLeveloftension,frustration,disagreementinrelationshipexperiencedbyfocalfirmECONOMICSATISFACTIONoffocalfirm:positiveaffectiveresponsetofinancialrewardsderivedfromrelationshiporeconomicgratificationNON-ECONOMICSATISFACTIONoffocalfirm:positiveaffectiveresponsetopsycho-socialaspectsofrelationship,orgratificationfromnon-financialsectorTRUSTFocalFirm'sbeliefincounterpart'shonestyandbenevolenceCOMMITMENTFocalFirm'sdesiretocontinuerelationshipandtosacrificetobuildandmaintainit编辑pptWhenthechannelmembersenseshighleveloftension,frustration,anddisagreementinachannelrelationship,theirperceivedconflictwillincrease,aswillfelt(attractive)conflictandmanifestconflict(blockingbehaviors).Thisfiguredoesnotsuggestthatconflictshouldbeminimizedonalloccasions,butitdoessuggestthatconflictcarriescosts,someofwhichtaketimetomaterialize.Therefore,conflictshouldbemanaged,organizationsshouldchoosetoenteraconflictratherthandiscoveringthattheirinitiativesarenotworththeconsequencesoftheoppositiontheycreated.编辑pptMAJORSOURCESOFCONFLICTINMARKETINGCHANNELSMostconflictisrootedindifferencesin:Channelmembers’goalsTheirperceptionsofrealityAndwhattheyconsidertobetheirdomains,orareaswheretheyshouldoperatewithautonomy.Themostcomplexofthesethreesourcesofconflictisthelastbecauseitisnowordinaryformanufacturerstogotomarketbysomanydifferentroutesthattheirchannelmembersareboundtocompeteforsomeofthesamebusiness.编辑pptSourceofconflict:competinggoalsEachchannelmemberhasasetofgoalsandobjectivesthatareverydifferentfromthoseofotherchannelmembers.Thisbuilt-indifferenceinwhatfirmsseektoachieveisfundamentaltoallbusiness.Agencytheoryunderscorehowcompetinggoalsconflictinanyprincipal-agentrelationship.Theinherentdifferencesinwhattheyaretryingtoachieveandwhattheyvalueleadsprincipalstodevisewaystomonitorandmotivatetheiragents.编辑pptExample:NikeandFootLockerResellerscarryasupplier’slineinordertomaximizetheirownprofits.Achievinghighergrossmarginsperunit(payingthesupplierlesswhilechargingthecustomermore)IncreasingunitsalesDecreasinginventoryHoldingdownexpensesReceivinghigherallowancesfromthemanufacturer编辑pptThemanufacturerwishestomaximizeitsownprofitsandprefertoseetheresellerAcceptlowergrossmargins(paythesuppliermorewhilechargingthecustomerless)Holdmoreinventory(avoidstockouts,maximizeselection)Spendmoretosupporttheproductline.Andgetbywithoutallowances.Frequentreasonsforconflictinamarketingchannelarelistedbehind.编辑pptNaturalsourcesofconflict:inherentdifferenceinviewpointsofsuppliers编辑pptSourceofconflict:DifferingperceptionofrealityAgreatdealoftension,anxiety,andfrustrationinachannelisduenotsomuchtoactualgoalclashesastotheplayer’sperceptionsthattheirgoalsdiverge.Differingperceptionsofrealityareimportantsourcesofconflictbecausetheyindicatethattherewillbedifferingbasesofactioninresponsetothesamesituation.编辑pptPerceptiondiffermarkedly,including:Theattributesoftheproduct/serviceTheapplicationsitservesandforwhichsegmentsThecompetitionInadditiontothesebasictopics,thec

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