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

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