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Channel Escalation

The process of expanding a product�s presence from smaller, niche channels to larger, more mainstream ones, often to increase market penetration.

Implications

The process of addressing and resolving issues or conflicts within a sales or distribution channel by escalating the matter to higher levels of management or through formal dispute resolution mechanisms.

Example

Example: A tech company faces a channel escalation when a distributor fails to meet agreed sales targets, leading to intervention by senior management to resolve the issue and renegotiate terms.

Related Terms

Different from channel conflict, which is the underlying issue, escalation is the process of bringing the problem to higher authority or more formal resolution pathways.

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COUNTRIES COVERED

Japan

South Korea

China

Taiwan

Vietnam

Thailand

Indonesia

Malaysia

Singapore

Australia

Philippines

Cambodia

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