Sales

• Companies can use direct channels to sell to customers or accept orders from them. A sales force calls on customers and prospects to present information on products and persuade them to place orders. A telesales team performs a similar role using the telephone. Companies can set up facilities on their website to accept orders, or they can offer customers a mail order or telephone ordering facility.
  
  

Product

• The nature of the product influences the channel choice. Consumers may feel comfortable about ordering simple products that they do not need to examine or try out. If they need to try products, such as clothes or shoes, they may prefer to visit an indirect channel such as a retailer. Business customers may also be willing to order simple products such as stationery or maintenance supplies by telephone or Internet.
  
  

Complexity

• In business marketing, companies that sell complex products, such as machine tools or information systems, use a direct sales force to deal with customers and prospects. The decision to purchase involves a number of people in the customer organization and may take a long time to complete. The direct sales force maintains contact throughout the process, providing information and advice, and persuading decision-makers to buy.
  
  

Information

• Consumers may prefer to obtain more information or discuss their requirements before purchasing more complex products. It would not be practical for companies to set up a sales force to deal with high-volume consumer markets, so an indirect channel such as a retail network would be more suitable. An important factor in the channel decision is whether an intermediary can provide a better service to the customer than the company could from its own resources, according to the John Pappajohn Entrepreneurial Center.
  
  

Price

• Selling products through a direct channel can enable a company to offer lower prices than competitors. Intermediaries such as retailers or distributors add their own profit margins, increasing the price to the final customer. By selling directly, a company avoids the intermediary costs and retains all the revenue from sales.
  
  

Control

• A company maintains greater control over sales and the customer relationship by using a direct channel of distribution. Intermediaries may offer variable standards of service to customers, affecting customer satisfaction. Intermediaries may also give priority to other companies' products in their portfolio, affecting overall revenue. Companies that need complete control over a product's delivery and service should not use indirect channels, according to Marketing MO.