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Problem

Both business marketers and distributors are interested in achieving profit goals. Why, then, are manufacturer-distributor relationships characterized by conflict? What steps can the marketer take to reduce conflict and thus improve channel performance?

Step-by-step solution

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Step 1/3

Sales and profit of any organization can be improved by changing the nature of business marketers and distributors working relationship. Although both business marketers and distributors are integrated in achieving profit goals after that their relationship is characterized by conflicts.

In business marketers and distributors relationship marketer depends on distributor and distributor depends on marketer which highly influences the financial conditions of both of them. So it is quite necessary to reduce their conflict and improve overall performance.

Step 2/3

Some reasons of conflicts in business marketers and distributors relationship are as follows-

• Conflict occur when either marketer or distributor think only about themselves without considering how their decision will impact the others

• Conflict can be occurs if both of them don’t want to communicate to resolve the problems of differences between them

Step 3/3

Conflicts can be eliminate from business marketers and distributors relationship if

• Both of them communicate more

• They include channel wide committees

• Both of them get committed to working relationship