Sarmiento, Vincent I.

BSBA Marketing 3G

DISTRIBUTION MANAGEMENT ACTIVITY 2

1. This channel of distribution involves two level channel to transfer goods

from the manufacturer to the customer. Two level channel involves the
movement of goods from the company to an intermediary, from the
intermediary to another and then to customer. This is also commonly
known as “breaking the bulk” in FMCG market. A widely used two
level marketing channel especially in the FMCG and the consumer durables
industry which consists of a wholesaler and a retailer. So the goods go from
company to distributor, distributor to retailer and retailer to consumer.
PRODUCER -----> WHOLESALER -----> RETAILER -----> CONSUMER

2. This channel of distribution involves one level channel to transfer goods

from the manufacturer to the customer. 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.

PRODUCER --------------------> RETAILER -----> CONSUMER

3. This channel take the shortest route to the consumer. Zero level channel or
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.

PRODUCER ------------------------------------> CONSUMER