USE OF

CHANNEL
POWER
POWER- is a part of any channel network. All channels
consist of a number of players who are dependent on each
other and it is the power equations between them that keep
them working together to achieve channel objectives.
 REWARD POWER
Reward is a benefit given to channel member
for him to conform his behavior in line with the
system. The reward could be financial or otherwise.
 COERCION
POWER
Is the hint of punishment for the channel member
if it does not fall in line with the requirements of the
channel principal. This disincentive could again be
economical or non-economical.
 EXPERTISE
POWER
Is based on the special knowledge that the
channel principal may have which is of
particular benefit to the channel partner.
 LEGITIMACY
POWER
This power emanates from contracts or agreement usually in
writing. These contracts clearly define the parameters of
behavior and action expected from each of the signatories to
the contract and gives rights for them to enforce the
behavior and action in case of a default.
 REFERENCE
POWER
This power stems from sheer association. A principal
may be considered as the industry gold standard and the
channel partner associated with this principal feel proud to
be part of his distribution organization.