1. Channel Climate
Name – Shahed Rahman

2. 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

3. 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

4. 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

5. 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

6. 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

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

9. 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

10. 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

11. 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

12. Compliance Techniques
Rapport Building
Information Exchange
Recommendations Requests
Promises
Threats

13. 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

14. 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

15. 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