Question

Typically, non-profit organizations such as charities exist in two markets. Discuss the importance of location to a local or regional charity of your choice. In the context of a local/regional service provider, explain whether the distribution channels available to providers of physical goods are always practical to the selected service provider, and why. Whether the organization is non-profit or profit-orientated, channel conflict will arise. Discuss the causes of channel conflict as identified by Berman (1966), and explain how a not-for-profit organization such as a local/regional charity resolves channel conflict. 600 words.

Answer 1

Non-profit organisations, such as charities, exist in Domestic and International market and sometimes could choose to exist in the local or regional mar5ket and National market as well, depending on the kind of business they may conduct.

Distribution channel of any business, including the local/regional service provider in discussion, dealing with physical goods are selected based on the following parameters:

a) Habitual selection of traditional channels

b) Market practice

c) Market targeted or segment targeted

d) Business model

Therefore, it is upto the user of the channels to decide what is practical to the business.

Channel conflict is natural to any business trying to sell physical goods. The chart below would help understand the possible channel example and how one would be in conflict with another.

Direct sales

Target Group of consumer

Target Group of consumer

Internet/E-commerce

Target Group of consumer

RETAILER

WHOLESELLER

DISTRIBUTOR

PRODUCT

The only possible way to resolve the issue of conflict is by extablishing superior position of the seller in the market to negotiate the channels selction as per the best interest of the seller and not be too dependent on the channel partners.

Typically, non-profit organizations such as charities exist in two markets. Discuss the importance of location to a local or regional charity of your choice. In the context of a local/regional service provider, explain whether the distribution channels available to providers of physical goods are always practical to the selected service provider, and why. Whether the organization is non-profit or profit-orientated, channel conflict will arise. Discuss the causes of channel conflict as identified by Berman (1966), and explain how a not-for-profit organization such as a local/regional charity resolves channel conflict. 600 words.

Non-profit organisations, such as charities, exist in Domestic and International market and sometimes could choose to exist in the local or regional mar5ket and National market as well, depending on the kind of business they may conduct.

Distribution channel of any business, including the local/regional service provider in discussion, dealing with physical goods are selected based on the following parameters:

a) Habitual selection of traditional channels

b) Market practice

c) Market targeted or segment targeted

d) Business model

Therefore, it is upto the user of the channels to decide what is practical to the business.

Channel conflict is natural to any business trying to sell physical goods. The chart below would help understand the possible channel example and how one would be in conflict with another.

Direct sales

Target Group of consumer

Target Group of consumer

Internet/E-commerce

Target Group of consumer

RETAILER

WHOLESELLER

DISTRIBUTOR

PRODUCT

The only possible way to resolve the issue of conflict is by extablishing superior position of the seller in the market to negotiate the channels selction as per the best interest of the seller and not be too dependent on the channel partners.