what is direct selling? daisy lam eric sin. contents definitions of direct selling definitions of...

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)


BENEFITS OF DIRECT SELLING


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.


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.


TACTICAL PERSPECTIVETACTICAL PERSPECTIVE

‘Direct selling can be considered a way of organizing sales activities and

the selling function.’


Type of salesperson used:

Location of salesTACTICAL PERSPECTIVETACTICAL PERSPECTIVE

Sales strategy


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


Producer Wholesaler Retailer Consumer

Traditional (fixed location) Retail Channels

Producer ConsumerRetailer

Distribution


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

Age

*source: www.dsa.org 2003

http://www.dsa.org/

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?

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