Distribution ChannelsThe distribution channel is responsible for delivering the product to the customer. The quality of the distribution channel depends on how effectively it meets customers' needs for time and place utility, as well as maintaining the channel structure at manageable levels. A distribution channel involves distributors, wholesalers, retailers, sellers and all other intermediaries. Distribution channels based on the number of intermediaries are of the following types:-Zero level channel (direct selling) - Here the company sells directly to its customers. This may include door-to-door selling, selling over the Internet, or through company-owned stores. The zero-level channel can be very efficient in the case of highly technical products where you need to explain the product to customers and marketing and sales go hand in hand. Heavy engineering products are a relevant example. It is also very efficient in case the service is also provided together with the product and therefore direct interaction becomes inevitable. Industrial goods including B to B also rely heavily on this. Single-tier channel: Single-tier channel has only one intermediary between the company and the customer. Two-level channel: The two-level channel has two intermediaries. Three-level channel: The three-level channel has more than three intermediaries. Two- and three-level channels are generally used for consumer goods. Dell distribution channel. Dell Inc had used the direct marketing channel very effectively to sell computers to the end consumer. When all other PC manufacturers sold through resellers and distributors, Dell had begun to efficiently use direct channels. At first orders were placed by post. However, Dell can...... middle of paper ......• Support employees do not identify themselves as part of the Dell team and may not be sufficiently motivated.• It would always be difficult for a company to manage a large number of partners if they are not directly involved in their activities. • Furthermore, over time the company will lose the ability to extend support service to customers. This weakness can be exploited by competitors who can enter the market with better support service and, in turn, consume Dell's market share. Dell and HP's outsourcing activities are considered one of the many reasons for their decline in recent years. passed as they were unable to perform well in responding to service requirements. Some competitors such as Apple have therefore only outsourced production, but kept the design, branding and after-sales service in-house.