Factors to Consider in Selecting Channels:

(i) Customer Characteristics-the size of the market, the geographical dispersion of consumers, buying habits and preferences, buying outlets etc. For example where customers are widely ispersed one cannot sell direct. If the market is composed of industrial buyers then fewer intermediaries are better.

(ii) Product Characteristics-important factors include perishability, whether product is household or industrial, need for bulk breaking whether product is fragile, non fragile, whether product is breakable or not. For example products that are highly perishable like bread, milk, fresh flowers or fruits require very short channels usually from producer to consumer direct.

iii. Company Characteristics-here you look at the company objectives, financial status, product mix and desired degree of channel control. High degree of control allows only for one middleman or direct selling.

iv. Middle-men Characteristics-What markets do the middlemen serve? Do they provide any financial support, what services do they provide, how sound are they financially because financially weak middlemen may require credits. Some channels of distribution for example are not available everywhere.

v. Competitive Characteristics-Is one going to use the channels already being used by competitors or his own channels?

vi.Environmental Characteristics-Economic, Political, Legal, Social and Cultural factors also influence channel decisions. Where economic conditions are depressed, marketers should try to move their products to the market via the least number of channels. The government also has imposed certain legal regulations to govern distribution, for example the requirements that manufacturing companies should not retail directly to consumers.