November 29, 2015

Channel Levels – Consumer and industrial marketing channels

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.

Here are perfect representations for channel levels between consumer marketing channel and an industrial marketing channel.

Channel Levels - Consumer Marketing Channel

Channel Levels - Industrial marketing channel

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