Periodic Table of Marketing Strategy logo: MS element tile, number 26The Periodic Table of Marketing Strategy v1.0
19Pw

Column 13 · Channels and Governance · Era 2, Planning (1970s)

Channel Power

Implementation, process · Major · Cluster V, Interfirm Networks

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Description

El-Ansary and Stern measured power in a distribution channel as one member's ability to control another's marketing decision variables, and Hunt and Nevin showed that coercive and noncoercive sources of power have different consequences for franchisee satisfaction.

Managerial Implications

Power in a channel comes from what partners depend on you for: volume, brand pull, expertise, or exclusivity. Coercive use of power, through threats and penalties, produces compliance and resentment; noncoercive power, through assistance and rewards, produces cooperation. Know your dependence on each partner and theirs on you before negotiating, and invest in sources of power that partners value rather than fear.

Anchor Works