Asked by: Pier Bensbusiness and finance marketing and advertising
When there may be channel conflict?
Last Updated: 23rd March, 2020
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Subsequently, one may also ask, what does channel conflict mean?
Channel conflict occurs when manufacturers (brands) disintermediate their channel partners, such as distributors, retailers, dealers, and sales representatives, by selling their products directly to consumers through general marketing methods and/or over the Internet.
Furthermore, what are the types of channel conflict? Let us delve deeper into these conflicts.
- The three type of channel conflicts which can occur are.
- 1) Horizontal channel conflicts. Example of Horizontal channel conflict.
- 2) Vertical Channel conflict. Example of vertical channel conflict –
- 3) Multiple channel conflict. Related Posts:
Simply so, what are the reasons for channel conflict?
Causes of channel conflict include:
- Structural factors - badly designed channel structure and alignment to customer segments.
- Resource scarcity - too many channels (or channel partners) compete for too few customers,
- Goal incompatibility - the channel principal and channel partners have incompatible or misaligned goals,
How do you handle channel conflict?
5 Tactics to Avoid Sales Channel Conflicts
- 1) Adjust your pricing structure.
- 2) Adjust your compensation.
- 3) Establish assigned segments and/or territories.
- 4) Utilize a lead registration system.
- 5) Avoid direct sales altogether.