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MANAGING SALES AND

DISTRIBUTION
BE-MBA Spring Semester Term 2
(March – May 2021)

Harjot Singh, LM TSM, TIET


4/29/2021
CHANNEL
CONFLICTS:
REASONS AND
RESOLUTION

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REASONS FOR CHANNEL CONFLICT

SOME POSSIBLE REASONS

• ROLES NOT DEFINED PROPERLY


• RESOURCE SCARCITY..FAIR?
• POS MATERIAL
• QUANTUM OF CREDIT

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MORE REASONS FOR CONFLICT

DECISION
EXPECTATIONS VS PRICES IN
DOMAINS IN
EXPERIENCE QUOTATIONS
AGREEMENTS

SIZE OF
GOAL SALESFORCE COMMUNICATION
INCOMPATIBILITY EMPLOYED BY GAP
CHANNEL

CHANNEL PARTNER
PARTS WITH SOME
MARGIN

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MORE POSSIBLE REASONS

PRINCIPAL DIRECT BUSINESS


READY STOCKS
PRESSES FOR VS CHANNEL
NOT AVAILABLE
MORE STOCKS BUSINESS

APPOINTMENT OF
EXTENSION OF
NEW CHANNEL TARGET FIXATION
CREDIT
PARTNER (S)

MUTIPLE
CHANNEL
PARTNERS

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AND SOME MORE…….

BOTH SALESPERSON’S DIFFERENT


SENDING MORE
AND CHANNEL’S DISTRIBUTORS FOR
STOCK THAN
INTERACTIONS WITH DIFFERENT
ORDERED
CUSTOMERS PRODUCTS

COMMITMENTS OF
CREDIT-NOTES SELLING AT DISCOUNT
EX-SALESPEOPLE

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AND SOME MORE…..

LOSS OF OPPORTUNITY
COMPANY TOPLINE VS
FOR COMPANY IN
CHANNEL CLASH OF INTEREST
EXCLUSIVE
BOTTOMLINE
DISTRIBUTION

MOST REASONS ARE


CLASH OF TERRITORIES BORN OUT OF
PERCEPTIONS

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MANAGING CONFLICT

4 STEPS
• UNDERSTANDING NATURE
AND IMPACT OF CONFLICT

• TRACING SOURCE (S) OF CONFLICT

• FINDING CONSEQUENCES OR IMPACT OF CONFLICT

• STRATEGY AND ACTION PLAN FOR RESOLUTION

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HOW….TO MANAGE CONFLICT?
• FINDING NATURE AND IMPACT OF CONFLICT
• LISTING DOWN MAJOR ISSUES
• PRIORTISING ISSUES
• DISCUSSING REGARDING PERCEPTIONS ON ISSUES
• TRACING SOURCE..REGULAR INTERACTION..EARLY
RESOLUTION
• COMMUNICATE,
COMMUNICATE
AND
COMMUNICATE
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CONFLICT RESOLUTION
• DEALER ASSOCIATIONS
• TRAINING OF SALESPEOPLE
• TRADE ASSOCIATIONS
• MEDIATION (Decision not binding)
• ARBITRATION (Decision is binding)
• SHARING OF INFORMATION
• WORKING TOGETHER FOR
SHARING OF RESPONSIBILITY
• CLEAR RULES OF CONDUCT
• INCENTIVES AND REWARDS
• DIRECT INTERACTION
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STYLES OF CONFLICT RESOLUTION
• AVOIDANCE
• AGGRESSION
• ACCOMODATION
• COMPROMISE..MID-WAY..GIVE UP SOMETHING
• COLLABORATION..WIN-WIN

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Negotiation strategies

HIGH Accommodative Collaborative/problem


solving

Concern Compromise
for
others’
interest

Avoidance Competitive /aggressive


LOW

LOW Concern for own HIGH


interest
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References

• Marketing Channels by Bert Rosenbloom, Cengage


Learning
• Basics of Distribution Management — A Logistical
approach by Satish K. Kapoor and Purva Kansal, PHI
Learning
• Distribution and Logistics Management — A Strategic
Marketing Approach by D K Agrawal, Macmillan
• Marketing Channels (MC) by
Coughlan/Anderson/Stern/El-Ansary,Pearson Education
• Google images

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SUGGESTIONS FOR TELECOM SERVICE PROVIDERS

• Telecom service providers need to put greater focus on


pre-paid consumers to prevent them from availing MNP
and churning.

• Telecom service providers need to focus more on the


functional dimension of service quality rather than the
technical dimension of service quality.

Thank You
• Service providers need to make greater efforts to retain
those customers who have been on the network for a
longer time and who have been contributing more to the
top line or bottom line.

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