Direct Selling


What is Direct Selling?

Direct selling is a form of sale that companies use, in which they market their products by taking them to the place where the customer is; using person-to-person sales, home demonstrations or online sales.

Actually, in this form of sale the important thing is that it's carried out outside the commercial establishment where the company is located and the customer or buyer is sought; either at home or at work.

Therefore, it's a sales strategy that companies use to not use intermediaries or distributors, since the sales task is carried out by the company's sales force.

Apart from that, direct selling offers very favorable opportunities to entrepreneurs who act independently to efficiently market the goods and services they offer to the market.

Consequently, direct sales allow companies to make profits by selling directly to the customer, since the sales force or sellers find an opportunity that's very interesting for them because they can achieve very good results if they do their job. With determination and dedication.

However, the most important thing about direct sales is that they generate personal contact between the customer or buyer and the company.

Importance of Direct Sales

Since, direct sales manage to establish a direct relationship between the company and its current and potential customers; The seller is constituted as the point of link between the company and the customers.

So, the way to make direct sales occurs when a seller presents a product to a customer or a group of customers; The idea is to demonstrate how it works, how it's used, what are the benefits and attributes of the product.

This form of sale is important when:

1. The product is new or complicated to use

Generally this form of product presentation is usually used when companies introduce a new product to the market or when the product is difficult to use or understand its benefits.

On the one hand, what the seller does is offer a detailed and detailed explanation so that consumers observe their use or understand the benefits offered to them.

It can also be used for customers to formulate and present their doubts, and that way the seller resolves them.

2. The number of customers is considerable

In addition, the company also plans this sales mechanism when it considers that it can serve an adequate number of customers, which could be very profitable, when it comes to marketing its products.

It turns out that, in some occasions, to attend these groups of clients meetings are organized in houses or workplaces to carry out the presentation of the products, so that the seller establishes a personal relationship with them and attends them in a way Specific and detailed.

3. The price that must be paid for the product is high

Therefore, this type of sale is usually used when the price paid by the customer for the product is relatively high, for that reason you can easily pay a commission or a sales incentive to the seller; so that in this way you make your best sales effort and achieve effective sales for the company.

4. Documents must be signed

On the other hand, it's sometimes required that the buyer sign certain types of documents such as orders or policies, in these cases it's more convenient for the seller to visit the customer, in order to facilitate the procedure without causing further inconvenience to the customer.

Now, in any of these situations customers have access to the product, so they can touch, test and analyze it. By having contact with the product the customer can determine if it'll be necessary and from there he can make a more rationalized decision about his purchase decision.

Also, this analysis is done from your home or work and using periods of time that you have free to not affect your times of work or domestic responsibility, and also don't have to waste time to move to another place. All this is very beneficial and useful.

Advantages of Direct Sales

Direct sales offer advantages for both customers and businesses

Advantages for the Company:

Among the main advantages that a company obtains through the use of direct sales we have:

1. Greater control of message content

Since, in this way, the company doesn't use intermediaries to interact with its customers, it can have control of the message it sends, which helps to handle homogeneous information.

2. target market approach

Above all, as the company knows its customers better, this allows them to address their groups or market segments more specifically and appropriately; achieving its highest level of satisfaction and offering strategies that more accurately accommodate customers.

Of course, to achieve a better focus on the target market, the company needs to conduct a good market research.

3. It's easier to measure results

Although it's easier for companies to measure their results, based on the comparison they must make on investment expenses and the returns achieved; This allows them to assess whether they are doing well or incorrectly.

Advantages for the Client:

The customer also benefits from the use of the direct sales strategy, the most important are:

1. Lowest price

In any case, the fact that the company doesn't employ intermediaries in the marketing of its products allows the customer to obtain the products at more convenient prices, because, if there are many intermediaries, the final price of the product can be increased.

2. Custom sale

Of course, the marketing process becomes more personalized, making the whole process better suited to the needs of each client.

Disadvantages of Direct Selling

In the same way companies and customers may find problems with the use of direct sales.

Disadvantages for the Company:

Among the most common disadvantages for a company are:

1. Negative image

Direct sales can produce a bad image for the company, because it's considered that the use of this strategy is very low cost and that this is very cheap for the company.

2. Use more time

Of course this form of sale requires a greater amount of time from the company, to research, plan, and develop contacts with customers. Time is also needed to better track each client or client group.

3. Limited coverage

In relation to limited coverage, if the company only uses the traditional form of sale, it may have limited coverage, because the scope will depend on the number of vendors with whom the company has.

Disadvantage for the Customer:

Finally, the biggest disadvantage that affects the customer is the fact that in this form of sale the customer may feel or be harassed by the seller, that what he is particularly looking for is to specify the sales actions. For that reason, clients would sometimes prefer not to be contacted.

With the ideas presented above we can affirm that the greatest benefit of selling directly is the contact that the company establishes and maintains with its customers. Although the traditional way is the approach by means of the sales force of the companies, now the companies have other means to reach the client, such as sales by television, by internet, by catalog, among many of those that can be mentioned.

This extends the coverage that a company can have, if only limited to using the sellers of the company itself, since it has within its reach a series of innovative channels that you can use effectively.

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