Direct Selling

Topics: Sales, Multi-level marketing, Amway Pages: 6 (1531 words) Published: July 15, 2013
International Journal of Advancements in Research & Technology, Volume 1, Issue 4, September-2012 ISSN 2278-7763

1

A Study On Direct Selling Through Multi Level Marketing
F. MARY MERLIN
Department of Management Studies, Manonmaniam Sundaranar University, Tirunelveli, India. Email: mary.fmerlin@gmail.com

ABSTRACT
Direct selling is a multi-level marketing in which the sales force is compensated not only for the sales they make but also for the sales done through their recruit. This recruited sales force is referred to as the participants who can provide multiple levels of compensation. A person's job would be to recruit others to sell their product, and in return, receive a percentage of their sales. The next person's job then is to recruit people even more so below them, and receive a percentage of their sales. Other terms for Multi-level marketing include network marketing and referral marketing. Commonly, the salespeople are expected to sell products directly to consumers by means of relationship through referrals marketing. Some people use direct selling as a synonym for MLM, although MLM is only one type of direct selling Keywords : Multi-Level Marketing, Direct Selling, Traditional Marketing.

1 INTRODUCTION
Direct selling is marketing and transaction of consumer goods directly to the consumer; it does not depend on direct mail, product advertising or fixed retail outlets. Self-governing sales people call on consumers, mainly in their homes, to show and often to prove the products and to obtain orders. The goods are then supplied by the company either directly to the consumer or through the sales person who obtained the order. Direct selling is suited to High-quality household and personal products which can be conveniently distributed by selfgoverning sales people. It is a method of marketing which is particularly suited to products that benefit from detailed explanation or demonstration or even being tried out by the customer. It is a personal approach that is rarely found in high street retail shops. Author Biggart, in his book Charismatic Capitalism, Direct Selling Organizations in America (Biggart, 1989) traces the

evolution of direct selling. According to Biggart, direct selling has grown to become a major form of commercial activity in the US, despite encountering opposition from other sectors of the business community during various stages in its development. In particular, as direct selling expanded in the 1920s, small town retailers in many towns across America were concerned that it represented unfair competition. Shopkeepers became increasingly concerned with having to compete with visiting salespeople, whose businesses had neither fixed overheads nor an investment in the community. Local chambers of commerce pressured politicians to institute bureaucratic barriers, in the form of relatively costly trading licenses and other trade restrictions, as a means of combating the perceived commercial threat. Such restrictions, compounded by the subsequent economic depression of the 1930s, created difficulties for many of those engaged in direct selling. However, a combination of greater organization in the sector, an improving economy, and an organized reaction to the restrictions placed upon the industry led to its increasing development in the post-war period.

2 EVOLUTION OF DIRECT SELLING
In the 5th century A.D., Athens was involved in a great deal of direct selling. Many producers who sold direct to the consumer without the intervention of a middleman, continued to sell their goods in this fashion, despite the growing urban population which spawned a new class of retailers. The direct seller of the 5th century either sold his wares about the street or exhibited them for sale on stalls and in shops. Others traveled from place to place, following armies on the march. They visited great festivals and fairs as well, and sold from village to village.

The 10th century marked the beginning of...


References: [1]http://www.ashgate.com/pdf/SamplePages/Hard_Sell_Intro. pdf [2]http://www.directselling411.com/about-directselling/history-of-direct-selling/ [3]http://en.wikipedia.org/wiki/Referral_marketing [4]http://www.fridayfirm.com/client-services/225-franchiseand-direct-selling [5] http://www.440group.com/differents.htm [6] http://www.emarketingblog.com/direct-email-marketingvs-traditional-marketing/ [7]http://en.wikipedia.org/wiki/List_of_multilevel_marketing_companies [8]http://www.dsef.org/wpcontent/uploads/2012/01/Research_note_A_study_of_direct_sel ling_perceptions_in_Austr.pdf
6 CONCLUSIONS
Direct Selling is a universal concept in the 21st century where the common man can make use of products for daily needs by directly purchasing from the manufacturers. This type of selling not only helps the common man to cut costs that’s been normally spent indirectly for middlemen and advertisements
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