BSAD 113 CHANNEL MANAGEMENT AND CONFLICT Lars Perner, Instructor 1 Channel Management and Power...
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Transcript of BSAD 113 CHANNEL MANAGEMENT AND CONFLICT Lars Perner, Instructor 1 Channel Management and Power...
![Page 1: BSAD 113 CHANNEL MANAGEMENT AND CONFLICT Lars Perner, Instructor 1 Channel Management and Power zVertical integration zChannel power zChannel conflict.](https://reader036.fdocuments.in/reader036/viewer/2022082712/56649e9d5503460f94b9d900/html5/thumbnails/1.jpg)
BSAD 113 CHANNEL MANAGEMENT AND CONFLICT Lars Perner, Instructor 1
Channel Management and Power
Vertical integrationChannel powerChannel conflict
Causes Solutions
![Page 2: BSAD 113 CHANNEL MANAGEMENT AND CONFLICT Lars Perner, Instructor 1 Channel Management and Power zVertical integration zChannel power zChannel conflict.](https://reader036.fdocuments.in/reader036/viewer/2022082712/56649e9d5503460f94b9d900/html5/thumbnails/2.jpg)
BSAD 113 CHANNEL MANAGEMENT AND CONFLICT Lars Perner, Instructor 2
Vertical Integration
Company structures Sole business unit
(e.g., manufacturing, wholesaling, retailing, services)
Conglomerates Japanese keiretsus
Make or buy? Leverage Expertise Control
Product quality and design
Steady supply
![Page 3: BSAD 113 CHANNEL MANAGEMENT AND CONFLICT Lars Perner, Instructor 1 Channel Management and Power zVertical integration zChannel power zChannel conflict.](https://reader036.fdocuments.in/reader036/viewer/2022082712/56649e9d5503460f94b9d900/html5/thumbnails/3.jpg)
BSAD 113 CHANNEL MANAGEMENT AND CONFLICT Lars Perner, Instructor 3
Layers of Performance: An Example
RETAILING
WHOLESALING/CHANNEL MOVING
MARKETING
PRODUCT MANUFACTURING
COMPONENT MANUFACTURING
![Page 4: BSAD 113 CHANNEL MANAGEMENT AND CONFLICT Lars Perner, Instructor 1 Channel Management and Power zVertical integration zChannel power zChannel conflict.](https://reader036.fdocuments.in/reader036/viewer/2022082712/56649e9d5503460f94b9d900/html5/thumbnails/4.jpg)
BSAD 113 CHANNEL MANAGEMENT AND CONFLICT Lars Perner, Instructor 4
Vertical Integration: Costs and Benefits
Costs Opportunity cost of
personnel Difficulty in hiring
appropriate managers Potential over-capacity Labor situation--may
find lower costs inNon-union environmentLower cost area
Benefits Dependability Synergy (?) Brand extensions Control
![Page 5: BSAD 113 CHANNEL MANAGEMENT AND CONFLICT Lars Perner, Instructor 1 Channel Management and Power zVertical integration zChannel power zChannel conflict.](https://reader036.fdocuments.in/reader036/viewer/2022082712/56649e9d5503460f94b9d900/html5/thumbnails/5.jpg)
BSAD 113 CHANNEL MANAGEMENT AND CONFLICT Lars Perner, Instructor 5
Reasons for Outsourcing
MotivationSpecialization“Survival of the fittest”Economies of scaleMarket coverageIndependence from specific
manufacturer
![Page 6: BSAD 113 CHANNEL MANAGEMENT AND CONFLICT Lars Perner, Instructor 1 Channel Management and Power zVertical integration zChannel power zChannel conflict.](https://reader036.fdocuments.in/reader036/viewer/2022082712/56649e9d5503460f94b9d900/html5/thumbnails/6.jpg)
BSAD 113 CHANNEL MANAGEMENT AND CONFLICT Lars Perner, Instructor 6
Channel Power: Sources
RewardCoerciveExpert“Legitimate”Referent (“brand
name”)
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BSAD 113 CHANNEL MANAGEMENT AND CONFLICT Lars Perner, Instructor 7
Channel Conflict
Channel members have different objectives--e.g., Brand unit sales vs.
category unit sales Pricing Service output Terms of sale:
price, payment, quantities, returns
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BSAD 113 CHANNEL MANAGEMENT AND CONFLICT Lars Perner, Instructor 8
Conflict Resolution Approaches
Information intensive approaches: Sharing of information Expensive(-) Risky (-) May build trust (+)
Third party (mediation)
Establishment of norms (“rules of the game”)
AccommodationConfrontation AvoidanceCompromise