1. DIRECT SELLING
…IS A METHOD OF DISTRIBUTION OF CONSUMER GOODS AND SERVICES THROUGH PERSONAL FACE-TO-FACE (SALESPERSON-TO-CUSTOMER) SALES AWAY FROM FIXED BUSINESS LOCATIONS

2. Direct selling PROBLEMS Lack of awareness Negative image
Lower availability of consumer at home
Recruitment of good salespeople often difficult
High perceived risk
Vulnerable to economic cycles
PROSPECTS
Untapped market
Homemaker lifestyle or busy lifestyle
Changes in traditional channels
Relationship marketing
Low investment; rapid expansion potential
Uses traditional friendship networks (word-of-mouth)

3. Direct Selling Why and When? (from Co. viewpoint)
When the consumer has less time; is asking for more information; is seeking more convenience
Product: when communicating quality is important
When the company seeks a high degree of control over the distribution channel
When middlemen are not easily available, costly, or don’t offer the right services
When there is a recession
When you have excellent people management skills

4. Appropriate products …used by most households (brushes)
can be demonstrated at home (vacuum cleaners)
involve all members of the family unit in the decision making process (encyclopedias)
are differentiated from equivalent store products or cannot be purchased in stores (Tupperware)
Do not represent high risk purchases to a consumer who feels knowledgeable about them (cosmetics)

5. Direct Selling: Advantages (Consumer Perspective)
Convenience in ordering and obtaining products
Demonstration in the environment where product will be used
Personal consultation with salesperson in an environment --the home--where the consumer is in control

6. Direct Selling:Concerns (Consumer Perspective)
Anxiety about manipulation: social pressure
Invasion of privacy
Previous unsatisfactory experience with direct selling
Post-purchase service support (e.g., vacuum cleaners)
Lack of relevance for much of a person’s buying