What types of conflict may arise in the channel of distribution? What are the reasons behind it? How will you resolve these conflicts?
Answer: No matter how much thought a company gives to channel design, no matter how much effort it puts into creating efficient processes, conflict is inevitable. As long as channel members retain some degree of independence, there can never be a perfect match between the goals and priorities of all channel members. As long as channel relationships depend on the interpretation of written agreements, there will always be room for confusion over the rights and responsibilities of channel members.
Types of conflict: Conflicts can be of three types. Such as-
1. Vertical Conflict: Conflict can crop up in a number of places. It can occur between different levels in a marketing channel Retailers might resent the power of distributors. Manufactures might feel that retailers are not supportive of a national promotional campaign.
2. Horizontal Conflict: Conflict can occur between parties at the same level in a channel. Retailers in one region might complain that retailers in another region enjoy unfair advantages. Or franchise holders might complain that the parent company is creating too many new franchises.
3. Multi-Channel Conflict: Finally, conflict can occur between channels in a multi-channel system For example, a distributor might complain that direct sales are cutting into the traditional store-based market.
