What is Channel level?

krunal_dhabhi said:
Hey Guys i am Searching for Meaning and Definition on Channel level with Example. Can Someone help me?
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Hey Friend,

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

Channel levels consist of consumer marketing channels or the industrial marketing channels. A factor common among both channel levels is that both include the producer as well as the end customer.

1) Zero Level channel / Direct Marketing Channel – Consists of a manufacturer directly selling to the end consumer. This might mean door to door sales, direct mails or telemarketing. Dell online sales is a perfect example of a zero level channel marketing.

2) One Level channel – As the name suggests, the one level channel has an intermediary in between the producer and the consumer. An example of this can be insurance in which there is an insurance agent between the insurance company and the customer.

3) Two level Channel – A widely used marketing channel especially in the FMCG and the consumer durables industry which consists of a wholesaler and a retailer.

4) Three level channel – Again observed in both the FMCG and the consumer durables industry, the three level channel can combine the roles of a distributor on top of a dealer and a retailer. The distributor stocks the most and spreads it to dealers who in turn give it to retailers.
 
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