what is direct selling? daisy lam eric sin. contents definitions of direct selling definitions of...
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Definitions of Direct SellingTRANSCRIPT
What is Direct Selling?
Daisy Lam & Eric Sin
Contents
Definitions of Direct SellingDefinitions of Direct Selling Benefits of Direct Selling 3 Perspectives of Direct Selling Direct Selling nowadaysDirect Selling nowadays ConclusionConclusion QuestionsQuestions
Definitions of Direct SellingDefinitions of Direct Selling
FEDSAFEDSA:
(old 1996) “The marketing of consumer goods and services directly to consumers in their homes by way
of explanation and/or demonstration through a sales person. The location can also be a friend’s home, the workplace of the customer during breaks or other places away from shops.”
(2006) “Direct selling is the marketing of consumer goods and
services directly to consumers on a person-to-person basis, generally in their homes or the homes of others,
at their workplace and other places away from permanent retail locations.”
DSA:DSA:
“Direct selling is the sale of a consumer product or service,person-
to-person, away from a fixed retail location.”
A full understanding of direct selling requires that it be viewed from three
perspectives.
Operational, Tactical and Strategic
OPERATIONAL PERSPECTIVEOPERATIONAL PERSPECTIVE
‘Direct selling is a relatively straightforward personal selling activity’
2 major elements:
Face-to-face selling;Away from a fixed retail location.
Direct selling is not…..
selling by: Internet Telephone Mail(order)
OPERATIONAL PERSPECTIVEOPERATIONAL PERSPECTIVE
BENEFITS OF DIRECT SELLING
OPERATIONAL PERSPECTIVEOPERATIONAL PERSPECTIVE
Benefits for the consumers
Opportunity to try and test the products; He/she can express their needs more clear; Demonstration and consultation in a friendly
environment; Direct contact with the seller; Guarantee and after sales service; Flexible buying hours.
OPERATIONAL PERSPECTIVEOPERATIONAL PERSPECTIVE
Benefits for the direct sellers
Convenient flexible earning opportunities; Flexible work schedules; Possibility to ‘own’ a business; No formal qualifications required; Training and support from companies; Social contact and personal recognition.
OPERATIONAL PERSPECTIVEOPERATIONAL PERSPECTIVE
TACTICAL PERSPECTIVETACTICAL PERSPECTIVE
‘Direct selling can be considered a way of organizing sales activities and
the selling function.’
TACTICAL PERSPECTIVETACTICAL PERSPECTIVE
Type of salesperson used:
Location of salesTACTICAL PERSPECTIVETACTICAL PERSPECTIVE
Sales strategy
TACTICAL PERSPECTIVETACTICAL PERSPECTIVE
Hours per week
Time spent on…..
STRATEGIC PERSPECTIVESTRATEGIC PERSPECTIVE
‘Direct selling can be viewed as a channel or mode of distribution, a means of gaining
access to a market, or a way of doing business.’
Distribution
STRATEGIC PERSPECTIVESTRATEGIC PERSPECTIVE
Producer Wholesaler Retailer Consumer
Traditional (fixed location) Retail Channels
Producer ConsumerRetailer
Distribution
STRATEGIC PERSPECTIVESTRATEGIC PERSPECTIVE
Producer Independent Contractor Consumer
Direct Selling Channels
Producer ConsumerDirect Selling Firm Independent Contractor
Direct selling is especially effective for products with a high personal selling elasticity
DS as a way of doing business
“invisible”
Not spend much money
Little start-up capital
WHAT CAN BE SOLD THROUGH DIRECT SELLING?
Products categoriessales per products categories (2003) *source: www.fedsa.be
WHO BUYS FROM DIRECT SELLERS?
Direct selling customers are compare to non-customers :
More likely to be female; Younger; Posses more education; Higher income;
Less talkative; Sensitive; Sociable; Religious.
Characteristics of direct sellers
Characteristics of direct sellers:
Outgoing Aggressive Enthusiastic Venturesome
To be a successful selling agent:
•Good communicator;•Highly motivated;•Persistence;•Initiatives.
Direct selling nowadays
Estimated 2004 U.S. Direct Sales:
Conclusion
Going well with direct selling
Customer need to be convinced
More research required
QUESTIONS?