Manufacturer-Agent-Wholesaler-Retailer-Customer. Identify the distribution channel:

Zero Level One Level Two Level Three Level

Three Level

Manufacturer-Agent-Wholesaler Retailer-Consumer (Three Level Channel): In this case, manufactures use their own selling agents or brokers who connect them with wholesalers and then the retailers. Thus, one more level is added to the levels discussed in the proceeding arrangement. It is done particularly when the manufacturer carries a limited product line and has to cover a wide market. An agent in each major area is appointed, who in turn contact the wholesalers.