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December 21, 2014

Homework Help: Marketing2

Posted by Caitlin on Tuesday, July 29, 2008 at 3:51pm.

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.

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