Channel Levels

Posted in Marketing and Strategy Terms, Total Reads: 15033
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Definition: Channel Levels

Channel level refers to the intermediary in marketing distribution channel between the producer/manufacturer and the end consumer. Every channel level plays a role in making the good available to the end consumer. The number of channel levels between the producer and consumer could be 0,1,2,3 or more.

A zero level channel is a direct marketing channel where there is no intermediary and the producer sells directly to the consumer. For example – direct mails, telemarketing etc

A one level channel has one intermediary, typically a retailer between a manufacturer and consumer. Similarly a 2 level channel and a 3 level channel have 2 and 3 intermediaries respectively.

An example of various channel levels is illustrated as below:

Channel Levels

 

 

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