Improving channel member cooperation in marketing channel relationships. A case study of mobile phone manufacturer-distributor relationship

Abstract

Past research has shown an increasing interest in the long-term marketing channel relationship. The highly saturated markets with complex distribution systems have shown that a key concern for any company should be the development and management of their channel relationship. This study examines the behavioural factors that have an effect to the long-term channel relationship and the ways to improve channel member cooperation through tailored channel management activities by using single case study.

In theoretical part of the study, firstly the structure of the marketing channel is studied by identifying channel participants and their role in the marketing channel. The relationship development model from the initiation of the relationship to the mature stage of the relationship is presented. Secondly, the behavioural elements that have an effect to the channel relationships and their interconnections are discussed. These elements are identified as power, trust, communication and cultural environment. Thirdly, the management of these behavioural elements is explored through identifying the channel members needs and problems and by providing channel programs to match these needs. Channel conflict is also identified and the ways to effectively manage and diminish channel conflict through providing leadership and motivational management.

For the empirical study, both the manufacturer and distributor representatives were interviewed using semi-structured questionnaire. The main conclusions were that the relationship stage was the most matured, commitment, between the case-study companies. Findings from the interviews revealed conflicting issues in all the four behavioural elements examined. Findings revealed that most of the conflicting issues derive from personal relationships between case company representatives.