What is direct selling?

• A Method of distribution of consumer goods andservices through personal (sell to buyer) contractaway from fixed business locations, primarily in a home ----Industry Trade Association in Washington DC • A form of selling without retail outlets, distributors,wholesalers or any type of middlemen-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. The location can also be a friend’s home, the workplace of the customer during breaks or other places away from shops

infomercials. or the like. telemarketing. .Operational perspective • Face-to-face selling • 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. direct response advertising.

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

Strategic Perspective Direct Selling as a Distribution Channel .

• 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 invisible. • Direct selling can be undertaken by a firm with relatively little start-up capital. There are no products on shelves that competitors can monitor. especially capital for marketing and distribution purpose Strategic Perspective .

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

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

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

Strategy choices 4. direct selling is not well understood. Blends involving direct selling and other marketing methods . • Useful research issues 1.Conclusions • Even though widely discussed. Direct selling as an effective market entry strategy 3. Communication effectiveness in the direct selling process 2. 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.

Selling to Colleagues. Peer Groups • • • • • • Creating the climate Developing of strategies The opening process Building understanding Bargaining Closing .

policies and exceptions Dare to be different Know the decision maker Don’t give up Impress at the first go .Selling to Superiors • • • • • • • • • • Negotiate Trading (if / then process) BATNA Ask for more Do your homework Rules.

Selling to Superiors • The 70 / 30 rule.listen rather than interrupt • Take your time • Blow your own trumpet (The interview chair is no time to become shy or timid) • Show your passion and interest • Sell your value (Opportunity negotiators perform better. as they have given themselves the mental freedom to be courageously flexible) • Know your true cost • Be honest .

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