Tiankang Group Research On Conflict Governance Of Marketing Channel

This thesis aims to study issues of marketing channel conflicts that Tiankang Group faces in complex market environment. In the current field of electric cable where brand lacks diversity and additional value of product is low, adequate, efficient, and appropriate sales channel serves as the lifeblood of manufactures. However, nowadays manufacturing companies have not yet found a unique model of sales channel. The core issue is that these companies are incapable of distributing profits from value chain and securing the royalty and stability of their channel members. Evolving from the primitive large-scale agency to the regional shareholding sales company to the terminal sales, every huge revolution is caused by marketing channel conflict. As a consequence, understanding the essence of Tiankang Group’s marketing channel conflict truly and seeking for proper solution to this problem have both practical and theoretical significances.Based on theories from marketing, economics, management, etc., this thesis utilizes theoretical analysis and the methodology of combining theory with reality to analyze the current situation of Tiankang Group’s clash of channels. This thesis studies both domestic and foreign theories. In addition, this thesis has a normative, modeling, theoretical, and comprehensive research for Tiankang Group’s sales channel conflict. This thesis analyzes the apparent and the underlying reasons of price war, flee goods, and the incompatibility of other channel members that Tiankang Group encounters. The work emphasizes on explaining real-world issues on a theoretical basis.This research paper on the governance of Tiankang Group’s sales channel conflict analyzes the homogeneous, horizontal, and vertical conflict of sales channels and boils down to the corresponding thorough strategy: it is necessary for homogeneous conflict to improve on four levels including product differentiation, marketing policy differences, differentiated service, and specialized production and management; for horizontal conflict, it is essential to take stringent and punitive measures for falsifying dealers and make stock-sales companies adopt self-management model; vertical conflict demands a company to use stock and self-built exclusive agency to resolve channel conflict.Since same-industry companies’ sales channels are mostly common, marketing channel emerges to be more important after a seller-dominant market becomes a buyer-dominant market. Due to the fact that a company’s emphasis of product sales relies on how to solve channel conflict, the issue of marketing channel will be automatically resolved provided the company puts the solution to and the improvement on the channel conflict at a momentous position, which will make manufacturing companies fully aware of channel conflicts and will be conducive to their long-term planning and sustainable development of sales channels.