The document discusses different levels in marketing distribution channels. A channel level refers to a layer of marketing intermediaries that brings a product to the final buyer. Common channel levels include zero-level (direct from manufacturer to consumer), one-level (manufacturer to retailer to consumer), two-level (manufacturer to wholesaler to retailer to consumer), and three-level (manufacturer to wholesaler to jobber to retailer to consumer). Longer channels with more intermediaries are more common when retail markets are fragmented with many small retailers.

1. Mrs. Jayashree Vispute

2. Numbers of Distribution Channel
Levels
Each layer of marketing intermediaries that performs
some work in bringing the product to its final buyer is
a "channel level". The figure shows some examples of
channel levels for consumer marketing channels:

4. WholesalerWholesaler JobberJobber RetailerRetailer ConsumerConsumer→ → → →
ConsumerConsumer
RetailerRetailer ConsumerConsumer→
ManufacturerManufacturer
0-level channel
WholesalerWholesaler RetailerRetailer ConsumerConsumer→ →MfgMfg
2-level channel
MfgMfg
3-level channel
1-level channel
ManufacturerManufacturer
Consumer Marketing Channels
- Length

5. Zero level
It has no intermediary levels. In this case the
manufacturer sells directly to customers. An example
of a direct marketing channel would be a factory
outlet store.
Many holiday companies also market direct to
consumers, bypassing a traditional retail intermediary
- the travel agent.

6. 1 level channel
contains one intermediary. In consumer markets,
this is typically a retailer. The consumer electrical
goods market is typical of this arrangement
whereby producers such as Sony, Panasonic, Canon
etc. sell their goods directly to large retailers such
as Next, Das and Memorex which then sell the
goods to the final consumers.

7. 2 level channel
contains two intermediary levels - a wholesaler and a
retailer. A wholesaler typically buys and stores large
quantities of several producers goods and then breaks
into the bulk deliveries to supply retailers with
smaller quantities. For small retailers with limited
order quantities, the use of wholesalers makes
economic sense.

8. 2 level channel
This arrangement tends to work best where the retail
channel is fragmented - i.e. not dominated by a small
number of large, powerful retailers who have an
incentive to cut out the wholesaler.

9. Channel Levels
Zero level: Direct Marketing M-C. Also called Direct
Marketing Channel. Eureka Forbes, Tupperware,
Asian Sky shop, Indiatimes.com
1 level channel: M-Retailer-C
2 level channel: M-Wsaler-Retailer-C
3 level channel: M-Wsaler-Jobber-Rtler-C

10. Channel Levels
Zero level: Direct Marketing M-C. Also called Direct
Marketing Channel. Eureka Forbes, Tupperware,
Asian Sky shop, Indiatimes.com
1 level channel: M-Retailer-C
2 level channel: M-Wsaler-Retailer-C
3 level channel: M-Wsaler-Jobber-Rtler-C