Direct Selling

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  • Topic: Marketing, Direct selling, Avon Products
  • Pages : 8 (2344 words )
  • Download(s) : 470
  • Published : October 1, 2012
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Direct selling is the marketing and selling of products directly to consumers away from a fixed retail location. Peddling is the oldest form of direct selling. Modern direct selling includes sales made through the party plan, one-on-one demonstrations, and other personal contact arrangements as well as internet sales. A textbook definition is: "The direct personal presentation, demonstration, and sale of products and services to consumers, usually in their homes or at their jobs." Advantages/Benefits of Direct Selling

Individualization as an Advantage
People don't like feeling like just another nameless, faceless wallet. Direct mail campaigns target them individually by addressing them by name or explaining how the advertised products meet their individual needs. Companies often choose direct mail selling because it allows them to virtually reach out to consumers on a one-on-one basis by segmenting their consumer or potential consumer base to find those who share similar characteristics. This provides a higher potential for success. Personal Call to Action

A key characteristic of direct mail selling is that it singles out consumers and asks them to act now. It encourages consumers to take advantage of an immediate opportunity, such as a discount with an imminent end date or the chance to receive something free with their purchase. This might not seem like an advantage, because companies essentially are selling their goods below normal price or giving away extras with purchases. However, the advantage lies in the fact that creating urgency and the opportunity to save or receive something “more” for their dollars is a huge motivator for consumers. Data Tracking

Direct mail sales pitches typically include a tracking mechanism. It often consists of a word or code that individual recipients of direct mail pitches input into an order form when purchasing the item advertised. This allows companies to determine which sales were generated as a result of the direct mail campaign. And this, in turn, lets them know which advertisements work and which don’t, and what advertising language or offers consumers respond best to, enabling them to better individualize future marketing materials to achieve the best possible results.

Major Challenges in Direct Selling
Type 1: Recruiting
(a) Train how to recruit
(b) Reward recruiting with sales-based compensation
(c) Encourage early recruiting with a Fast Start program
(d) Focus on recruiting with recognition
Type 2: Sales Productivity
(a) Train how to sell
(b) Reward selling through your compensation plan
(c) Encourage early selling with a Fast Start program
(d) Focus on selling for recognition
Type 3: Retention
(a) Start your retention campaign on day one
(b) Retain representatives through relationships
(c) Retain representatives with frequent and relevant communication Type 4: Product Freshness
(a) Stage new product introductions
(b) Reformulate and improve current products
(c) Pay close attention to product packaging
(d) Conduct product promotions
Type 5: Product Availability
(a) Minimize backorders
(b) Communicate status of backorders
(c) Offer relevant product substitutions
Type 6: Fulfillment
(a) Ship products quickly
(b) Measure and report fulfillment errors
(c) Use functional yet attractive packaging
(d) Insert “spotlights” that highlight individual representative achievements Type 7: Training
(a) Use multiple mediums to train your representatives
(b) Measure the effectiveness of each training program
(c) Invite representatives to view company presentations
(d) Provide scripts to be used by representatives to train others Type 8: Leadership Development
(a) Develop and implement leadership development programs
(b) Set percentage-based participation goals
(c) Measure participation, compare to goals
(d) Promote and recognize leadership achievements through your compensation plan and recognition programs Type 9: Software
(a) Selecting a software...
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