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Chapter I
THE PROBLEM AND ITS SETTING
This chapter discusses the introduction, statement of the problem, importance of the study, hypotheses of the study, importance of the study, scope and definition of terms. Introduction
The growing economy of General Santos City has a significant to its growing population. These result to the increased rate of unemployed and job dissatisfaction. As imply, many people engaged in direct selling because direct selling have the vast opportunities available to young and old alike to earn additional income to supplement their lifestyle, and in this case, their golden years. The context of this study will define what sales agent is, how they perform; what are the importance of rewards to the effectiveness performance of sales agents in selling products and how does distributors motivate their salespeople/sales agents. Direct Selling Industry are those organizations that depend heavily or exclusively on personal selling, and that reward sales agents for (a) buying products, (b) selling products, and (c) finding other agents to buy and sell products. They are typically lean organizations, using their products, rather than hiring and managing a large employee sales force. Most Direct selling Industry makes retail sales force motivation a crucial component of business success in this form of channel. Direct Selling Industry Sales Agents can effectively give the distributor the opportunity to work on the task that best suits the ability. Companies like Natasha, Avon, are examples of an increasingly popular form of direct – selling organizations have historically used standard direct sales forces to distribute their products, today 70% of direct – sales revenues are generated by network marketing organizations and business units.

These companies have grown significantly not just in the General Santos City, but throughout the world. Independent distributors play two key roles in Direct Selling: they sell product and they recruit new distributors. The Direct Selling compensation plan structure can have a profound effect on how distributors’ time is spent, and therefore plays a critical role in the company’s overall growth and success through time.

Managing the productivity of retail salespeople has been a focus of many different authors. On stream of marketing research has contrasted the use of independent – agent sales forces with that of com – pony – employee sales force. Such comparisons have supported the claim that some marketing Direct Selling Industry suggests the need for a deeper understanding of how they work, what motivates their network sales, growth, and profitability over time.

The role of personal selling is an integral part of U.S marketing system. Marketing is here defined as the development and distribution of goods and services to satisfy the needs of consumers and industrial buyers. As part of marketing, selling performs valuable functions both society as a whole and for the individual firm. Some marketing theorists even maintain that the first step in the economic development of less developed countries is the implementation by government of a customer-oriented marketing philosophy. This contrast with the normal practice of most LDC’s that first try to develop a manufacturing sector, ignoring the demand side necessary for sale of the manufactured products. A marketing orientation instead will lead to a free market, free enterprise, and democratic society as the LDC responds to the pressure of a competitive arena, when consumers seek the highest-quality consumer product at the lowest price. Individuals will create much of the needed institutional infrastructure, as they recognize opportunities for profits and will in turn demand products and services with their new found wealth. However, these approaches group all independent – agent sales forces under a single theoretical umbrella. The purpose of this research is to understand a distinct...
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