Marketing 364 Channel Power – Ch. 8 with Duane Weaver

Outline Power Defined Power – good or bad? Power mirror of Dependence Specifying Measuring Directly Measuring by Proxy Sources of Power Reward Coercive Expert Legitimate Referent Balance of Power Exercising Power (6 Influence Strategies)

Power Defined POWER is the ability of one channel member (A) to get another channel member (B) to do something it otherwise would not have done …power is a potential for influence. (Coughlan, Anderson, Stern, El-ansary, P. 200)

Power – good or bad? Negative connotations: Abuse Oppression Exploitation Inequity Brutality A Tool - great benefits through judicious use of power! Like what??! HP assembly out

Power mirror of Dependence Specifying – the utility provided multiplied by the scarcity of alternatives. Must both elements be there? Measuring Directly – add up benefits Measuring by Proxy – estimate % of sales or profits. How well you perform vs. competitors…other methods?

Sources of Power Reward - enticements Coercive - force Expert - knowledge Legitimate – obligation or law Referent – public assocation with

Balance of Power Not always mutually exclusive…A&B may need each other (most often do) for different flows. .etc. Exploitation…is it inevitable? Countermeasures…ideas?

More subtle, increase satisfaction economically and interpersonally Exercising Power 6 Influence Strategies (evaluating them) Promise - +ve or bribe? Threat – blatant pressure Legalistic – adversarial Request Information Exchange Recommendation BACKLASH As heavy handed, high pressure tactics WELCOME More subtle, increase satisfaction economically and interpersonally

THANK YOU!