What is Direct Selling.ppt

What is Direct Selling? Daisy Lam Eric Sin Contents Definitions of Direct Selling Benefits of Direct Selling 3 Perspectives of Direct Selling Direct Selling nowadays Conclusion Questions Definitions of Direct Selling 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.” 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 PERSPECTIVE ‘Direct selling is a relatively straightforward personal selling activity’ 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 PERSPECTIVE ‘Direct selling can be considered a way of organizing sales activities and the selling function.’ Location of sales Sales strategy Hours per week Time spent on….. STRATEGIC PERSPECTIVE ‘Direct selling can be viewed as a channel or mode of distribution,