Marketing 364 Channel Power

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Marketing 364Channel Power Ch. 8

• with Duane Weaver

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Outline

• Power Defined
• Power good or bad?
• Power mirror of Dependence
• Specifying
• Measuring Directly
• Measuring by Proxy
• Sources of Power
• Reward
• Coercive
• Expert
• Legitimate
• Referent
• Balance of Power
• Exercising Power (6 Influence Strategies)

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Power Defined

• POWER is the ability of one channel member (A) to
  get another channel member (B) to do something it
  otherwise would not have done power is a
  potential for influence.
• (Coughlan, Anderson, Stern, El-ansary, P. 200)

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Power good or bad?

• Negative connotations
• Abuse
• Oppression
• Exploitation
• Inequity
• Brutality
• A Tool - great benefits through judicious use of
  power! Like what??!
• HP assembly out

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Power mirror of Dependence

• Specifying the utility provided multiplied by
  the scarcity of alternatives. Must both elements
  be there?
• Measuring Directly add up benefits
• Measuring by Proxy estimate of sales or
  profits. How well you perform vs.
  competitorsother methods?

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Sources of Power

• Reward - enticements
• Coercive - force
• Expert - knowledge
• Legitimate obligation or law
• Referent public assocation with

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Balance of Power

• Not always mutually exclusiveAB may need each
  other (most often do) for different flows. .etc.
• Exploitationis it inevitable?
• Countermeasuresideas?

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Exercising Power

• 6 Influence Strategies (evaluating them)
• Promise - ve or bribe?
• Threat blatant pressure
• Legalistic adversarial
• Request
• Information Exchange
• Recommendation

BACKLASH As heavy handed, high pressure tactics
WELCOME More subtle, increase satisfaction
economicallyand interpersonally
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• THANK YOU!