Channel Conflict

Channel conflict is a situation of discord or disagreement between channel members from the same marketing channel system. Conflict always has negative connotations and is driven more by feelings than facts.

Conflict is considered as part of social system, which brings together disparate entities to form a working relationship.

Conflict could be the result of,

1)   Each channel member wanting to pursue his own goals.

2)   Each wants to retain their independence.

3)  There are limited resources, which all of them want to utilize in the pursuit of their goals.

Four stages of channel conflict

1)   Latent

2)   Perceived

3)   Felt

4)   Manifest

Latent

Some amount of discord exits but does not seem to be effecting the working of the channel partners.

Perceived

The discord becomes noticeable and the channel partners become aware of the opposition, there is no cause for worry, but the opposition has to be recognized.

Felt

It is the stage of worry, concern & alarm. Here the parties are trying to out smart each other. The channel get affected by the discord and the channel members upsets that other parties do not value their “feelings” of discontent.

Manifest

This is last step the conflict has escalated to a level which reflects adversary behavior of the channel partners who have a disputes. 

Reasons

1)   Roles not defined properly

2)   Resource scarcity

3)   Differences in perception on the business environment

4)   Expectation of the channel members for their future growth

5)   Decision domain disagreements

6)   Goal in compatibility

7)   Communication difficulties