What is direct selling ?

² Definition, perspectives, and research agenda 

Peterson, Robert A Wotruba, Thomas R 

  

: 8941812

A Definition of Direct Selling Operational Perspective Tactical Perspective Strategic Perspective A research Agenda for Direct Selling Scope of Direct Selling Practice of Direct Selling 6.‡Content 1. 5. Conclusions . 2. 4. 3.

distributors.Industry Trade Association in Washington DC A form of selling without retail outlets.Baker (1984) The marketing of consumer goods and services directly to consumers in their homes by way of explanation and/or demonstration through a salesperson. primarily in a home.A Definition of Direct Selling A Method of distribution of consumer goods and services through personal (sell to buyer) contract away from fixed business locations. The location can also be a friend¶s home. wholesalers or any type of middlemen. the workplace of the customer during breaks or other places away from shops ± Federation of European Direct Selling Association (FEDSA) . ---.-.

infomercials. direct response advertising. Away from a fixed retail location Direct selling is distinct from direct marketing in that at an operational level it does not involve mailed catalogs. or the like. telemarketing.Operational Perspective 1. . Face-to-face selling 2.

Whether it follows a party plan format. Whether it is multi-level. Whether the selling effort occurs in a home or elsewhere. The extent to which selling agents are customers. Whether it is transaction-oriented or relationshiporiented. . Whether selling agents are part-time or fulltime.Tactical Perspective Direct Selling can be characterized by The type of salesperson used. Whether personification is used. Whether selling agents take physical possession of products The manner in which purchases are delivered and payment is obtained.

Strategic Perspective ‡Direct Selling as a Distribution Channel .

especially capital for marketing and distribution purposes. Direct selling can be undertaken by a firm with relatively little start-up capital.There are no products on shelves that competitors can monitor. .Strategic Perspective ‡Direct Selling as a Means of Gaining Access to a Market Direct selling is a push marketing strategy ‡Direct Selling as a Way of Doing Business Direct selling is the preferred channel of distribution because it is ³ invisible´ .

. and possess more education and higher incomes than individuals who have not purchased from a direct selling company . younger.‡What can be sold through Direct Selling ? Vacuum cleaners Encyclopedias Cosmetics Nutritional items Kitchenware ‡Who buys from Direct Sellers ? In the United States are more likely to be female.

Persistence and initiative are major characteristics of success in direct selling. 63% between 25 and 44 and 24%between 45 and 64. an individual must be a good communicator and be highly motivated. Sales performance and job satisfaction were independent but higher levels of effort led to higher levels of performance and satisfaction. . To be a successful direct selling agent. 8%are under age 25.‡ What are the characteristics of Direct Sellers ? 72% of direct salespeople are married 90% are women.

Selling revenues is probably significantly underestimated. 3.International and Comparative Analyses of Direct Selling. . There is a need for basis research on direct selling salespeople and consumers who purchase through direct selling. 4. The motivations of direct salespeople and customers would appear to be a fertile area for research.‡ A research Agenda for Direct Selling Scope of Direct Selling: 1. 2.

3. catalogs. electron merchandising. Hypotheses involving adapt ability. and various rhetorical and persuasive device could be tested in a direct selling setting. 2.‡ A research Agenda for Direct Selling Scope of Direct Selling: 1.Strategic Perspective What about with direct selling in the future ? Is direct selling emerging as the marketing strategy best suited to succeed with micro-market segmentation ? . competitive conditions faced) are the various tactical combinations most effective ?² telemarketing . trust-building. market targeted. listening.Operational Perspective Research should focus on direct selling as a communication process. negotiation.Tactical Perspective Under what condition (e.g. products or services sold.

4.e.Direct selling firms are expanding internationally at an increasing place. political..Is there a relationship between a country¶s extent of economic development and the relative success of direct selling vis-à-vis other distribution method ? 3. infrastructure. .‡ A research Agenda for Direct Selling Issues: 1.Success in such operations would be aided by research in the macro conditions (i. cultural) that foster or inhibit direct selling success at both the industry and business unit level. economic.Are there some principles regarding direct selling that have universal application? 2.

Communication effectiveness in the direct selling process 2.Conclusions Even though widely discussed. Blends involving direct selling and other marketing methods . Useful research issues 1. strategy choices 4. direct selling is not well understood. and the term itself is often abused and misused. This research should address issues relating to motivations of direct salespeople and their customers as well as the macro conditions conducive to direct selling success. Direct selling as an effective market entry strategy 3.

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