a.Understanding the customer profile : the tastes,preferences, habits of the customers may differ from person to person.
b.Determining the objective as to who would be the target market, whether the company wants to go for cost minimisation or not etc.
c.Type of channel members :Who all would be involved? Wholesalers, retailers?
d.The criteria on which the channel members would be evaluated and selected.
e.How many intermediaries will be involved in the overall distribution?