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Published byKenneth Rogers Modified over 9 years ago
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What is Direct Selling? Daisy Lam & Eric Sin
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Contents Definitions of Direct Selling Definitions of Direct Selling Benefits of Direct Selling 3 Perspectives of Direct Selling Direct Selling nowadays Direct Selling nowadays Conclusion Conclusion Questions Questions
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Definitions of Direct Selling
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FEDSA FEDSA : (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.”
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DSA: “Direct selling is the sale of a consumer product or service,person- to-person, away from a fixed retail location.”
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A full understanding of direct selling requires that it be viewed from three perspectives. Operational, Tactical and Strategic
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OPERATIONAL PERSPECTIVE ‘Direct selling is a relatively straightforward personal selling activity’ 2 major elements: Face-to-face selling; Away from a fixed retail location.
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Direct selling is not….. selling by: Internet Telephone Mail(order) OPERATIONAL PERSPECTIVE
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BENEFITS OF DIRECT SELLING OPERATIONAL PERSPECTIVE
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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 PERSPECTIVE
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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 PERSPECTIVE
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TACTICAL PERSPECTIVE ‘ Direct selling can be considered a way of organizing sales activities and the selling function.’
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TACTICAL PERSPECTIVE Type of salesperson used:
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Location of sales TACTICAL PERSPECTIVE
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Sales strategy TACTICAL PERSPECTIVE
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Hours per week
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Time spent on…..
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STRATEGIC 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.’
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Distribution STRATEGIC PERSPECTIVE ProducerWholesalerRetailerConsumer Traditional (fixed location) Retail Channels ProducerConsumer Retailer
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Distribution STRATEGIC PERSPECTIVE ProducerIndependent ContractorConsumer Direct Selling Channels ProducerConsumer Direct Selling Firm Independent Contractor
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Direct selling is especially effective for products with a high personal selling elasticity
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DS as a way of doing business “invisible” Not spend much money Little start-up capital
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WHAT CAN BE SOLD THROUGH DIRECT SELLING?
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Products categories sales per products categories (2003) * source: www.fedsa.be
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WHO BUYS FROM DIRECT SELLERS?
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Direct selling customers are compare to non-customers : More likely to be female; Younger; Posses more education; Higher income; Less talkative; Sensitive; Sociable; Religious.
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Characteristics of direct sellers
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Age * source: www.dsa.org 2003www.dsa.org
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Characteristics of direct sellers: Outgoing Aggressive Enthusiastic Venturesome To be a successful selling agent: Good communicator; Highly motivated; Persistence; Initiatives.
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Direct selling nowadays
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Estimated 2004 U.S. Direct Sales:
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Conclusion Going well with direct selling Customer need to be convinced More research required
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QUESTIONS?
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