Channel Climate Name – Shahed Rahman

Introduction There are no islands in Marketing Channels, no place where firms may unaffected by the action of other channel members. Successful Business rely on exchange relationship in the form of marketing channels Conflict is always possible because each channel members has its own goals and objectives that are frequently incompatible with those of other channel members Intermediary conflict include: Quality of Management Territory Boundaries Margin Sizes

Channel Climate Defined as the characteristics of the channel as reflected in the perceived level of consideration that exists in the exchange relationship. Mutual respect Trust Support Friendship

Model of Channel Climate and its Components Exchange Relationship Policy Norms Role Specification Practices Attitudes Power sources Consideration Behavior Reward Structures Channel Member A Channel Member B

Boundary Personal Who represent the individual firm in the channel system Need to identify the influence that climate has on the behaviors within marketing channels Help member to design the strategies to get along and also future success

Important Channel Climate Behaviors Cooperation and Coordination Reflected in the members willingness to work together for a common purpose Conflict When channel members sense that the behavior of other channel member is hampering their performance or the attainment of the goal Power and Dependence Ability of one channel member to evoke a change in another member’s behavior

Model of Channel Power ( A and B ) Channel Member Power Coercive Sources Non-coercive Sources Reward Bases Expertise Bases Legitimacy bases Referent bases

Achieving Cooperative Channel Climates Channel relationship wont flourish in the absence of cooperative decision making or coordinated actions Marketers benefit when they identify which of their assets are potentially attractive to other channel partners When channel partners rely on each other for some commodity or service – known as mutual reliance- share power successfully. Technical knowledge Relationship Knowledge

Each Partner Should Identify what each partner brings to the relationship prior to entering the relationship Ensure that each partner is flexible in terms of interests, needs, understanding and a willingness to explore alternative approaches to problems prior to entering the relationship Develop a culture of cooperation and mutually beneficial coordination after the relationship is joined

Conflict Resolution and Channel Climate Conflict can be handled in ways that lead to constructive outcomes for channel members Conflict is unavoidable in channel relationships Problem solving Persuasion Bargaining Politics

Compliance Techniques Rapport Building Information Exchange Recommendations Requests Promises Threats

Compliance Techniques Rapport Building similar our corporate cultures? Process by which harmonious or sympathetic relations are established, is based on subtle (Fine) cues Have we developed a climate of trust ? Mutual levels of commitment to this relationship satisfactory? Merging different management styles? Information Exchange Boundary personnel initiate a discussion on general business concerns and operating policies to change the perceptions of how the firm might be more Recommendations Requests Promises Threats

The Four Stages of relationships Development Key Development Process Awareness Cognizance of other party’s existence Investigate potential relationship benefits Exploration Attraction Communication and bargaining Development and use of power Norms and expectations development Expansion Growth of value-added benefits from relationship Growth of interdependence Commitment Loyalty Shared values, objectives and expectations Trust Willingness to overlooks partner’s temporary short falls Future orientation

Improving Channel Performance More frequent and more effective communication Formal or informal processes through which grievance (complains) may be expressed More opportunity to critically review past partner actions An appropriate distribution of power within the relationship Standardized processes of conflict resolution already in place