Marketing 624

Channels of Distribution Management

Behavioral
Processes in
Marketing
Dr. Bert Rosenbloom Professor of Marketing and
Channels
Rauth Chair in Electronic Marketing
Behavioral Processes in
Marketing Channels
Marketing Channels are not just economic
systems

Marketing Channels are also Social Systems

Therefore, the same behavioral processes

existing in all Social systems also exist in
Marketing Channels
 Behavioral Processes in
Marketing Channels
The behavioral processes of most relevance to
marketing channels are:

Conflict

Power

Role
Communications noise
 Conflict Defined

When one Party perceives the

behavior of another party in the
social system to be impeding
the attainment of its goals, a
state of conflict exists.
 Conflict Compared to
Competition
Conflict Competition
Conflict > Competition

Conflict Competition
Direct Object centered
Personal Indirect
Opponent centered Impersonal
 Causes of Channel
Conflict
Role Incongruities
Resource Securities
Perceptual Differences
Expectational Differences
Decision Damping Disagreements
Goal Incompatibilities
Communicational Difficulties
 Effects of Channel
Conflict
No Effect

Negative Effect

Positive Effect

Multiple Effects Over Different Ranges

 Managing Channel Conflict
(I)

First of all must

recognize that:
Conflict is inherent in marketing channels
Many causes: so conflict is pervasive
Conflict can affect channel efficiency
 Managing Channel Conflict
(II)
1. Detect Channel Conflict
Informal communication system
Marketing Channel Audit
Distributors advisory councils
2. Appraise Effects of Conflict
Negative
Positive
No effect
3. Resolve Conflict
Have a dialogue over lunch all the way to going
to court
Power in Marketing
Channels

Power Defined:
The capacity of one channel member
to get another channel member to do
something that he otherwise would not
have done.
Bases of Power for
Channel Control

Reward Power 1st

Place

Coercive Power

Legitimate Power

Referent Power

Expert Power
 Using Power in
Marketing Channels
Identifying available power bases

Selecting and using appropriate bases

What buttons are available and which ones

should be pushed
Role in Marketing
Channels

Role Defined:
Set Prescriptions defining what the
behavior of a position member should
be.
 Communication in
Marketing Channels

Communication Defined:
Flow of information that enables
channel members to send and
receive messages
Problems Noise in Channel
Communications

Differing Goals

Language Differences

Perceptual Differences