What type of channel conflict is likely to be caused by dual distribution, and what type of conflict can be reduced by direct distribution? Why?
Channel conflicts:
VERTICAL- occurs between different levels in a marketing channel; for example, between a manufacturer and a wholesaler or between a wholesaler and a retailer. Three sources of vertail conflict: (1) when a channel member bypasses another member and sells or buys products direct, a practice called disintermediation. (2) disagreements over how prodfits are distributed among channel members. (3) when manufacturers believe wholesalers or retailers are not viving their products adequate attentionl.
HORIZONTAL- occus between intermediaries at the same level in a marketing channel, such as between two or more retailers or two or more wholesalers that handle the same manufacturer's brands.
What type of conflict can be reduced by direct channel
Identify which channel of distribution will provide the best coverage of the target market for your product or service
nefinal conplict management in distribution
For the first part of your question, the type of channel conflict likely to be caused by dual distribution is horizontal channel conflict. Dual distribution refers to when a company uses multiple distribution channels, such as selling products through both retail stores and online platforms. This can lead to conflicts between retailers or wholesalers who handle the same manufacturer's brands, as they may compete for customers and market share. They might feel that the manufacturer is giving preferential treatment to one channel over the other, leading to a sense of unfairness or competition.
As for the second part of your question, direct distribution can help reduce vertical channel conflict. Direct distribution occurs when a manufacturer sells its products directly to consumers without intermediaries like wholesalers or retailers. By bypassing intermediaries, manufacturers can have more control over the marketing and distribution of their products and ensure that their products receive adequate attention from both wholesalers and retailers. This can help alleviate conflicts related to disintermediation (where a channel member bypasses another member), profit distribution disagreements, and manufacturers' concerns about inadequate attention given to their products.
In summary, dual distribution is likely to cause horizontal channel conflict, while direct distribution can help reduce vertical channel conflict.