As an executive of your multinational company, you need to be prepared for chann

Question

As an executive of your multinational company, you need to be prepared for channel conflict between your organization and your channel partners. One example of this potential conflict can occur when multiple channel partners sell the same product in a market with different pricing. This will create a situation in which your channel partners have to compete against one another and/or against YOUR internal sales team. So what are the best ways to ensure partners relationships? Should you establish training and certifications for all channel partners? Enhance up and downstream marketing communications? Manage the performance of your partners closely (monitoring them under a microscope)? Or is there some other form of channel partner collaboration that is more viable?

Explanation / Answer

When the channel partners compete with each other and with the parent company it is difficult in the market to establish a good rapport with the customers. The differential pricing of the mutiple channel partners will create hindrance in selling the product and profit base of the company may also be eroded and trust of other channel partners may also go down. The best way to deal in this situation is communication to all channel parterns so that there will be integrity and openness in the process. When upstream and downstream communication will be strengthen other partners in real time will get to know how much to charge for the product by analysing the market situation. When communication process will be strengthen there will be minimal or least suspicion among the channel partners.

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