CHANNEL STRUCTURE (CHANNEL

LEVELS)
According to Philip Kotler Marketing channels are sets of
interdependent Organizations involved in the process of
making a product or service available for use or consumption.
Channels make forward movement of products.
Channel structure refers to type and level of channels
1. Channel Type: It can be direct or indirect . Direct channel
doesn't have middle man between manufacturer and
customer , where as indirect channel has middle man.
2. Channel Level: It refers to the no. of participants in the
channel . They can be manufacturer , sole agent , wholesaler ,
retailer and customer.

Channel
levels
a.Zero-level channel [manufacturer- consumer]
b.One-level channel[manufacturer-retailerconsumer]
c.Two-level channel[manufacturer-wholesalerretailer-consumer]
d.Three-level channel[manufacturer-sole agentwholesaler-retailer-consumer]

CHANNEL STRUCTURE
Length of marketing channel

0-level

1- level

Manufacturer Manufacturer

- level

3-level

Manufacturer Manufacturer

Sole Agent

Consumer

Wholesaler

Wholesaler

Retailer

Retailer

Retailer

Consumer

Consumer

Consumer

DR. ROSENBLOOM