Managing Channel Conflict
- Topics:
- Enterprise Risk Management
- Source:
- Reshare
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Overview: The article focuses on the different sales channels and the emphasis is on online sales process. It explains the channels conflicts, why people are not much confortable with few channels. It explains more than 90% of manufacturers don't sell online. The main reason? Channel conflict. Distributors and retailers are totally, utterly, fiercely, and understandably protective of letting customers buy products elsewhere. A survey states that 66% of those surveyed cite channel conflict as the major obstacle to selling online. The five channel solutions currently available to manufacturers are briefly: * The Grenade Model *The Do Nothing Model *The Referral Model *The Share the Customer Model, *The Channel Preservation Model. The market size is the prize. Being able to sell on the Internet while preserving channel agreements presents a gigantic opportunity for companies to increase the size of the pie. Only the Channel Preservation model allows for this. There's another benefit to selling online with the Channel Preservation model: the reduction of bad debt. Because online purchases occur through major credit cards, the percentage of bad debt will decrease as volume increases. Money is collected and distributed before the product leaves the door.
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Format: HTML | Date: May 2002 | Pages: 1
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