1. Conflict is normal among marketing channels as each member of the channel has a specific goal that is generally unique from the channel member preceding or following it. The goal of the manufacturer is different than the goal of the wholesaler and also different than the goal of the retailer. This is intuitive as each channel member performs a different task. However, these channel members are interdependent and will need the cooperation of the other channel members in order to achieve each others goals. Vertical integration fails to remove conflict, as conflict is essentially a constraint on limited resources. Resources are generally money and each channel member is trying to maximize their efficiency and many times that means reducing costs for the individual channel member even if that means increased cost for other channel members. This situation is not alleviated when vertical integration occurs. Vertical integration does not remove the constraint of limited resources and a vertically integrated channel would not seek to limit constructive conflict either. Conflict in marketing channels

The leasing channel is another way for consumers to find vehicles at the retail level. GM has been offering incentives towards customers who stay loyal to a particular make and model and will let consumers pull ahead a newer vehicle before the lease term is up. They are fronting the cost for this promotion. Dealers and manufacturers are working closely together and the manufacturers are demonstrating their influence throughout the channels. Of course conflicts may arise through these financing option and these various channel members. Leasing is among the newest of the channels available to consumers and was becoming a very popular option for sometime. However with the advent of 0% financing leasing may not seem nearly as attractive. Without the extra interest to pay on owning a vehicle the incentive to lease a vehicle is being reduced. Manufactuers will have to resolve this channel conflict by offering leasing incentives as well in order to counteract the 0% financing option. Used car sales are also experiencing a boost as 0% financing deals are proving to be unattractive for many consumers based on their terms. Therefore many of these consumers are turning to used vehicles after having their interest first sparked by 0% interest . This increased demand will help the used car dealers who are getting cars from trade ins that are being caused by new car demand from the 0% financing.

3. Conflict becomes dangerous when it becomes costly for each member involved. Again, resources or money dictate the behavior of a market and dangerous conflict many times is translated as ‘conflict that ends in litigation.’ Therefore, channel members have increasingly decided to seek alternat

Some topics in this essay:
Conflict Answer, 0% financing, rental companies, vertical integration, automobile industry, dangerous conflict, vehicles rental, vehicles rental companies, constraint limited resources, litigation mediation arbitration, vehicles sold, marketing channels, able sell, financing option,