Synopsis Most producers do not sell their goods directly to final customers. They design a multi-channel system to reach them. The design of marketing channel, acts, as a strong interface, and can provide a competitive advantage to a firm in the industry. By contrast the absence of a good distribution network also becomes a major impediment in today's cut throat competitive environment. Marketing channel decisions are therefore, one of the most important and the most critical ones facing the marketing management today. It is complex and the complexity further gets compounded by the fact that the channel system takes time to build, usually years.