Page 443 - Marketing Management

420 PART 6 DELIVERING VALUE

Bowflex fitness equipment is sold
through a variety of channels.

Channel Levels
The producer and the final customer are part of every channel. We will use the number of interme-
diary levels to designate the length of a channel. Figure 15.2(a) illustrates several consumer-
goods marketing channels of different lengths.
A zero-level channel, also called a direct marketing channel, consists of a manufacturer sell-
ing directly to the final customer. The major examples are door-to-door sales, home parties, mail
order, telemarketing, TV selling, Internet selling, and manufacturer-owned stores. Traditionally,
Avon sales representatives sell cosmetics door-to-door; Franklin Mint sells collectibles through
mail order; Verizon uses the telephone to prospect for new customers or to sell enhanced services
to existing customers; Time-Life sells music and video collections through TV commercials or

(a) Consumer Marketing Channels (b) Industrial Marketing Channels

0-level 1-level 2-level 3-level 0-level 1-level 2-level 3-level
Manufacturer Manufacturer Manufacturer Manufacturer Manufacturer Manufacturer Manufacturer Manufacturer

Manufacturer's Manufacturer's
Wholesaler Wholesaler
representative sales branch

Jobber

Industrial
Retailer Retailer Retailer
distributors

Industrial Industrial Industrial Industrial
Consumer Consumer Consumer Consumer customer customer customer customer
|Fig. 15.2|

Consumer and Industrial Marketing Channels