SALES AND DISTRIBUTION MANGEMENT
Negotiation as a mechanism for resolving conflict: when a conflict brings over and manifests itself in some form of overt behavior, the institutional mechanisms or third party mechanisms become irrelevant. Negotiation is a process to the dispute set down mutual rules of engagement and works within these rules to achieve competitive advantage over the other party.
1- Competing or aggressive: - It is the strategy, where only self interests are considered without giving any attention what so ever to that of the opponent.
2- Collaborative or Problem solving: - In collaborative strategy the interest of both the parties is given high levels of consideration. In Collaborative strategy which is considered to be the most advisable strategy to ensure long-term relationship, the parties to the dispute sit together and openly share information so as to work out a solution which benefits both.
3- Compromising:- Another strategy that is widely used is the compromise strategy. In this strategy, the parties decide to scale down their interests to a reasonable level so that the final solution is acceptable to both the parties. This is different from collaborative strategy as it involves a satisfying solution and not a completely satisfactory solution.
Conflict resolution mechanisms:-
Latent conflict
Conflictconflict |
Institution approaches
1- Joint membership of association
2- Exchange of Executives |
Third Party mechanism
1- Mediation
2- Arbitration |
Fig:- Managing the conflict
1- Communication:- An effective way to minimize channel conflict is to have regular communication between the manufactures and the channel members.
2:- Dealer councils:- Another way to resolve conflicts is through formation of dealer councils. Such council can resolve issues in horizontal level.
Channel conflicts:- channel conflict is defined as a situation where one channel member perceives the behaviour of another channel member to be impeding the attainment of its goal or its effective functioning.
