Channel conflict is a situation in which channel partners have to compete against one another or the vendor's internal sales department. Channel conflict can cost a company and its partners money as partners try to undercut one another. It can also lower morale within the channel and cause some partners to consider other vendors. To prevent channel conflict, partners sometimes enact agreements such as deal registration.
Channel conflict may also occur among various segments of corporate departments, such as the sales channel. For example, the direct contact component of the sales department may have to compete with other sales channels, such as telephone, online and mail campaigns.
Contributor(s): Yuval Shavit
This was last updated in December 2007