Wednesday, 19 October 2011

Week Nine

So this week we are looking at channel conflict. There have been no questions set for this week so I am just going to note some of the key issues of channel conflict. All of the points are taken from Ian Knox' week 9 write up and lecture slides on channel conflict.

  • Access to the Internet has given buyers opportunities that may affect what they purchase, when and where they take their business. 
  • Sellers can reach large numbers of any time of the day and reach beyond the geographical limits of their store.
  • Channel conflict occurs when manufactures or brand owners begin to sell direct to the consumer, cutting out their wholesalers and retailers. 
  • Channel conflict can be defined as any situation where two different marketing or distribution channels are competing for the same sale with the same brand. 
  • Channel conflict can occur between an off line bricks and mortar store and the same stores online store as retail employees feel threatened. 
  • Conflict can be direct, internal or external. 
  • Conflict can be found at any stage of the business process including pricing, order handling, delivery, service and repair,  customer service and resistance to change. 
  • If there is no strategies to manage conflict brands may 'cannibalise'.
  • Neither brands nor retailers can rely on customer loyalty. (Knox, 2011)
Unfortunately I think I missed the sale of the old car put on eBay. When I clicked on the link it just said the item was unavailable.


Knox, I (2011). Topic 9 Channel conflict. [PowerPoint slides]. BC501: eBusiness Fundamentals. UB, EG TAFE.

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