Managing Channel Conflict

BusinessManagement

  • Author Dandy Rockwell
  • Published March 24, 2012
  • Word count 506

Economic booms and busts, technological advancements, a recurring elevated emphasis on client service, even serial and periodic managerial changes combine to impact alterations in channel distribution models more than years and decades. New programs and policies are often cosmetic, leading seasoned channel players and observers to cynically conclude that there's nothing new below the sun. Thankfully, such a jaded perspective will not reflect reality, at the least not inside the broadest sense. There are one continuous more than the years, nonetheless. It's known as "Channel Conflict."

The lone wolf syndrome does in some cases trump a collaborative approach to managing and completing tasks or reaching goals. In sales, the single practitioner can carve out a handsome living selling services and tangible goods. Mechanics, housekeepers, insurance salespeople, and tax accountants come to thoughts. But growth beyond the standard "mom and pop" level virtually normally demands collaboration plus the implementation of a "two hands are improved than one" strategy. This can be when sales channel turf skirmishes can and generally do escalate into full-scale warfare. Various channels are crucial to stopping growth stagnation and achieving maximum market place coverage and sales. At the danger of sounding melodramatic, a supplier's masterful management of distribution channels can determine a product's or service's ultimate survival in a very competitive marketplace, irrespective with the overall economy's health. What to do?

First of all, suppliers ought to not fret or make any effort to eliminate conflict. A manageable degree of it is a positive indicator of strong demand and productive industry penetration. It's also a barometer that item and service offerings are striking a chord by addressing consumer wants. With no conflict, suppliers and distributors could be wise to reassess their value. Thoughtful marketing programs make sure that there's plenty to go around for everyone across the channel. Continued optimal maximization of every single channel partner, including VARs, systems integrators, distributors, and retailers, calls for suppliers to know end-user preferences like the back of their hands. What you do not know will hurt you!

Some users call for a never-ending outpouring of tender loving care and handholding, though other individuals eschew such a doting strategy in favor of no-frills, high-volume discounts. Regardless of customer preference, well-trained and pretty compensated channel partners will respect their "competitors" when suppliers supply:

• Equal education and certification programs for every partner;

• Discounts to channel market place makers that go the extra mile by identifying new buyers and that effectively address tangential product and service needs; and,

• Compensation programs that reward salespeople, regardless of who makes the final sale, including increased quotas for direct salespeople in a sales model that also includes indirect channel partners.

As noted, these fundamental tenets of channel marketing apply equally in any economic climate. As we outwardly and eagerly march toward economic recovery, an unbiased assessment or reassessment of one's channel program will position you, your channel partners and finish users to reap the most rewards. Channel marketing is very important for the global success of many businesses. Resolving conflicts should always be prioritized.

Dandy Rockwell is a leading consultant with many leading software vendors. He writes about best practices regarding Partner Relationship Management and other helpful guides in automation of common office work. Visit us at http://www.logicbay.com/

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