MANAGING THE

CHANNEL MEMBERS
MOTIVATING, MANAGING CHANNEL POWER AND CONFLICT
MOTIVATING THE CHANNEL
MEMBERS
• Motivation refers to the action taken by the manufacturer
to foster channel member cooperation in implementing the
manufacture’s distribution objectives .
Three basic facets involved in
motivation
• Finding out the need and problems of channel members
• Offering support to the channel members that is consistent with their needs and problems
• Providing leadership through the effective use of power
Managing channel power
The Channel Power refers to the ability of any one
channel member to alter or modify the behavior of other
members in the distribution channel, due to its relatively
strong position in the market.

Generally, the manufacturers are seen, dominating

the behavior of other channel partners and
influencing their actions according to its
requirements.
 Five source of power
•Reward
•Coercion
•Reference
•Legitimate
•expert
channel CONFLICT
Channel conflict can be explained as any dispute, difference or
discord arising between two or more channel partners, where one
partner’s activities or operations affect the business, sales,
profitability, market share or similar goal accomplishment of the
other channel partner.
Types of channel conflict
•Vertical level conflict
•Horizontal level conflict
•Inter type channel conflict
•Multi channel conflict