1. INTERNAL FACTORS
1.1. 1. RETURN ON INVESTMENT (ROI) - WHERE THE COMPANY SETS A CERTAIN PRICE TO GAIN BACK THE ROI OBJECTIVES
1.2. 2. CASH FLOW - MAKING SURE THE CASH FLOW CAN COVER THE PRODUCTION COSTS WITHOUT GETTING ANY LOSSES ESPECIALLY THROUGH TEH NEW PRODUCTS
1.3. 3. MARKET SHARE - MAKE SURE THE PRICE OF THE COMPANY WORTH MORE OR MAINTAINING THE EXISTING PRICE OF THE MARKET
1.4. 4. MAXIMIZE PROFITS - OLD PRODUCTS ARE MORE LIKELY TO STOP GROWING AND IT MIGHT JUST SET A CERTAIN RICE JUST FOR THE GAINING PROFITS
1.5. 5. FIXED COSTS - COST OF MARKETING ORGANIZATION THAT ARE NOT AFFECTED BY SALES
1.6. VARIABLE COSTS - THE ASSESSED ON A PER UNIT BASIS SINCE ITS CONNECTED TO INDIVIDUAL ITEMS
2. EXTERNAL FACTORS
2.1. 1. ELASTICITY OF DEMAND - THE PRICE IS BASED ON THE DEMAND OF THE CONSUMER. IF THE CONSUMER WANTS MORE OF A PRODUCT, THE PRICE WILL GET LOWER FOR THE DEMAND NEEDED.
2.2. 2. CUSTOMER EXPECTATIONS - NEED TO GIVE THE CUSTOMERS THE EXPECTATIONS WORTH THAT GOES THE SAME WITH THE PRICE POINTS
2.3. 3. DIRECT COMPETITOR PRICING - SOME OF THE PRODUCT PRICING ARE BASED ON THE COMPETITOR. IF THEY PRODUCES A PRICE THAT THE AVERAGE AMOUNT WITH THE COMPETITOR, IT CAN BE FIT FOR THE PRICES
2.4. 4. RELATED PRODUCT PRICING - FOR EXAMPLE, JOINING A BAKING CLASS THROUGH ONLINE CLASSES. THE PRICES WILL BE CHARGED BASED ON THE SERVICES ALLOWS
2.5. 5. PRIMARY PRODUCT PRICING - FOR EXAMPLE, BUYING A HAIRDRYER WITH A COMB AS A COMPLENTARY PRODUCT
2.6. 6. GOVERNMENT REGULATIONS - NEEDS TO BE AWARE OF REGULATIONS THAT INFLUENCE HOW PRICE IS SET IN THE MARKETS IN WHICH THEIR PRODUCTS ARE SOLD
3. INTERMEDIARIES CONSIDERATIONS
3.1. 1. SALES VOLUME POTENTIAL - SHOULD CONSIDER THE CAPABILITY OF THE INTERMEDIARIES TO ENSIRE THE SALES CAPACITY
3.2. 2, AVAILABILITY - A COMPANY SHOULD MANAGE ITS OWN CHANNEL TO HAVE THE RIGHT TYPE OF INTERMEDIARIES
3.3. 3. INTERMEDIARIES'S ATTITUDE - A COMPANY ALLOW TO ADOPT THEIR OWN PRICE POLICY
3.4. 4. SERVICES PROVIDED - THE SERVICES SUCH AS REPARING, AFTER-SALE SERVICES SHOULD BE APPOINTED WHO CAN PROVIDE THE SERVICES OR ELSE IT WILL IMPLEMENT A DIRECT SELLILNG CHANNEL
4. INFLUENCE THE CHANNEL STRUCTURES
4.1. 1. PRODUCT CHARACTERISTICS
4.1.1. 1. CONSUMER PRODUCTS - WHERE THE PRODUCTS ARE STRAIGHT TO THE CONSUMER WIHTOUT USING ANY MIDDLEMEN FOR THE SERVICES
4.1.2. 2. PERISHABILITY - THE PEROSHABLE GOODS NEED FOR DIRECT SELLING AS BECAUSE OF THE DANGER OF THE FREQUENT HANDLING
4.1.3. 3. UNIT VALUE - THE MORE AMOUNT OF THE TRANSACTION INVOLVE, THE LOWER THE UNIT VALUE
4.1.4. 4. STYLE OBSOLENCE - IT IS BASED ON THE DESIRABLE TO SELL DIRECT TOT HE RETAILERS THAT SPECIALIZE IN FASHION MERCHS
4.1.5. 5. WEIGHT & TECHNICALITY - WHEN THE PRODUCTS ARE BULKY AND LARGE, IT IS USEFUL TO CHOOSE DIRECT CHANNEL
4.1.6. 6. STANDARDIZED PRODUCTS - IF THE PRODUCTS PRODUCES MANY TYPES OF THE PRODUCTS IT IS DESIRED TO HAVE A DIRECT CHANNEL
4.1.7. 7. FREQUENT [URCHASES - FREQUENT PURCHASE NEED DIRECT CHANNEL TO LOWER THE COST OF DISTRIBUTION
4.2. 2. COMPANY CHARACTERISTICS
4.2.1. 1. FINANCIAL STRENGTH - WHEN A COMPANY HAS A STRONG FINANCIAL, IT CAN COVERS ALL THE COSTS INCLUDING THE INTERMEDIARIES COSTS
4.2.2. 2. MARKETING POLICIES - RELEVANT TO CHANNEL DECISION MIGHT RELATED TO DELIVERY AND PRICING
4.2.3. 3. SIZE OF THE COMPANY - BIG COMPANY ARE ABLE TO FAVOR THE DIRECT CHANNEL HANDLING
4.2.4. 4. PAST CHANNEL EXPERIENCE - IF A COMPANY HAS A GOOD EXPERIENCE ON CERTAIN KINDS OF INTERMEDIARIES, THEY WILL CONTINUE TO DO THE SAME
4.2.5. 5. PRODUCT MIX - THE WIDER THE PRODUCT MIX, THE SUPERIOD WILL BE ITS STRENGTH
4.2.6. 6. REPUTATION - A REPUTATION TRAVEL FASTER THAN THE MAN DOES
4.3. 3. MARKET CHARACTERISTICS
4.3.1. 1. CONSUMER HABITS - THE CONSUMER DIERIABLE TO BUY CERTAIN PRODUCTS IN ONE PLACE
4.3.2. 2. LOCATION - MANY CUSTOMERS MAY PREFER A GEOGRAPHICAL AREA THAT ARE APPROPRIATE AND NEAR TO THEM
4.3.3. 3. NUMBER OF CUSTOMERS - IF THE NUMBER OF CUSTOMERS ARE IN LARGER AMOUNT, THE CHANNEL OF DISTRIBUTION MAY BE INDIRECT AND LONG
4.3.4. 4. SIZE OF ORDERS - IF THE CUSTOMERS ARE BUYING A LARGE AMOUNT, DIRECT SELLING IS PREFFERED