Give your opinion/response to the answers of 2 questions below.

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1.Identify tools for resolving channel conflict in a selected channel.

A. Channel conflict refers to any kind of disagreement or issue between channel partners, where this conflict directly affects business metrics such as profit or sales (Indeed Editorial Team, 2022). Some of these might include different departments within organisations or within external partners. Channel conflicts might have different forms: vertical, horizontal or multi-channel. Vertical conflict is one between partners on different levels in the distribution channel such as producer and distributor (Indeed Editorial Team, 2022). Horizontal one is between partners at the same level, while multi-channel one occurs when two or more channels of the same manufacturer compete in the same market with different prices. There are several ways how to resolve channel conflict. First one might be establishing minimum advertised price set for all partners. This tool ensures consistency and trust among channel partners. Another tool is reduction of distribution channels, which at the same time gives control of the market and limits chance of channel conflict. Controlling supply chain and setting authorised sellers/distributors also lets brands control their sales and distributors. The last strategy is aimed at selling exclusive products online in which way the producer does not directly sell the same products which are at the same time sold by its distributors.

2.Identify how Channel power and leadership can be an investment in profitability.investment in profitability.

A. Channel power means when one partner supports and guides other members of the other channel (Mad marketing, 2017). This power can for example come from economical advantage and can support the other channel with some reward. Other power can be caused by a specific expertise advantage or legitimate right (as seen in franchise model), where can one partner help the other (Mad marketing, 2017). If one partner invests in channel power and leadership over the other, they can better understand their position, better avoid channel conflicts or even have better control over its profitability and sales.