Channel Levels

Published by MBA Skool Team, Last Updated: May 22, 2012

What is 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

 

 

This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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