Management Strategy Of Marketing Channel Conflict

Effective marketing channel is the foundation and the key for the enterprise tosucceed in today’s market-oriented economy. With the rising importance of thedealer’s position, the structure of the distribution channel has become morediversified, which leads to the conflicts between channel members of the traditionaldistribution channels. Therefore, it is really important for the enterprise to handlethese conflicts properly or even to avoid them.This paper is based on Jiangsu Hengda Co., Ltd. and distributors which hassummarized the results of research on channel conflicts. Also, it completely refersand draw lessons from Chinese and foreign scholars on the marketing channelconflict management theory, in-depth analysis of channel conflict in the developmentstage, the specific reasons，considering the impact of channel conflict factors. Exceptthat, in this paper, I also study how to make a good management strategy ofmarketing channel and put forward the solutions to the channel conflicts of JiangsuHengda Chemical Company.This article consists of six parts: The first part is an introduction to the article, theresearch background, research methods and the significance of other aspects of theset. It points out that due to the western scholars on China’s market transition underthe conditions of marketing channel conflict and less attention and research in ourcountry at present, the academic circles and enterprise circles should strengthen theresearch of marketing channel conflict management problems, the results of thesestudies to guide the enterprises to solve channel conflict, improve enterpriseefficiency.The second part is a review on the theory of channel conflict,introduces thechannel conflict in three forms, namely common channel conflict classificationmethod of channel conflict will be divided into vertical, horizontal, much channelthree forms, which is the foundation of the whole passage, introducing the definition,types and effects of channel conflict; In this part, it also introduces the channelconflict of the five stages of development, namely the American scholar LouisPondy professor (1967) presented conflict "five stages mode ": potential conflictstage, perceived conflict stage, sensory conflict stage, behavior conflict stage andconflicting results; described the occurrence of distribution channel conflict of enterprises, channel members and the whole channel the influence of the network.The third part elaborated the direct and indirect reasons of the cause of channelconflict; the direct reasons mainly include price, fund, stock level, competitors,customers, products, technical advice and services in six areas, the indirect causesare mainly the following eight factors: duty field difference, difference of knowledge,imperfect communication channel, target difference, scarce resources, channel powerfactor, macro market environment factors, enterprise own factor; also introduced thechannel conflict management objectives, principles, objectives include four kinds ofgoals: to resolve target, alleviate goals, objectives and target preventive withoutconflict; channel conflict management should abide by the following six principles:the principle of efficiency, time principle, selection principle, systematic principle,the principle of innovation, contingency principles；The fourth part is a detaileddescription of the process of conflict, the strategy for the management of channelconflict, channel objectives, principles and procedures. The fifth part from thecombination of theory with practice expounds the rival company how to do well theconflict management method and strategy, put forward13specific solutions (such aspersuasion, develop advanced target, improve the accuracy of information,mediation and arbitration, etc.) put forward companies can adopt a general andspecific strategy, general strategy are avoidance, restraint, competition, cooperationand compromise of five kinds of strategy, targeted strategies are mainly thefollowing five: choosing the right channel members, improve the quality of business,establishing a communication mechanism, use power correctly, adjust the channelpower structure, improve the service work, the development of relationshipmarketing, the implementation of the contract guarantee system, the establishment oflong-term partnership; also provides companies the management of channel conflictof four basic steps: conflict, diagnosis, treatment, prevention of conflict managementand feedback effect.The sixth part is a summary and review of the whole text, pointing out theshortcomings and areas for further research.This paper combines theory with practice research in order to solve the presentmarketing channel conflicts with a clear structure. I have discussed how to resolvechannel conflicts in this paper, put forward the common goals, so as to improve thestructure of the channel and to strengthen the channels of communication andpersonnel negotiations and proceedings of the conflict solution, which is to expedite sales channel and increase benefits of the enterprise. The author of this paper adoptsempirical research methods, try to get a small and medium-sized enterprisemarketing channel conflict events of our country for a more comprehensive andin-depth analysis and study. Besides, the author hope to this paper will providesome reference for the domestic channel conflict management researchers andpractitioners.