Channel Conflict Management: How To Manage Through It And Win

It may seem counter intuitive to discuss channel conflict in a soft economy. When most of our clients think about conflict management, they assume they will need controls on the channel and/or a reduction in channel partners as the solution. And who can afford to do so in the soft economy?

In reality, managing conflict is an imperative in a soft market. Channels are more sensitive to conflict because of the perceived impact on their bottom line. Therefore, they are quick to act to manage the conflict—which usually means less emphasis on the guilty brand. Few manufacturers can afford the loss in effective market coverage that this unilateral channel decision can result in. Thus, the need for the manufacturer to proactively address the issue.