Amway

Reaching
Customer
through Direct
Selling
By

Ali Zulfiqar
Arslan Jaan
Asadullaha Bashir
Sohaib Manzoor
Safwan Saleemi

Haris Mumtaz

AMWAY REACHING CUSTOMER THROUGH DIRECT SELLING

Task and Activity

1. Question 2: Explain What Is Meant By Direct Selling? In What Ways Do
You Engage In Direct Selling in Everyday Life?
2. Question 3: Make A List of The Reasons Why Individuals may wish to set
up their own businesses?
3. Question 4: Produce A Frank And Realistic Comparison of Direct Selling
With Retail Shopping. In Doing S List The Advantages And Disadvantages of
Each?

Question 2: Explain What Is Meant By Direct Selling? In What Ways Do You

Engage In Direct Selling in Everyday Life?
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Face to face presentation, demonstration,

and sale of products or services, usually at the home or office of
a prospect by the independent direct sales representatives.

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, oneon-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."
Industry representative, the World Federation of Direct Selling
Associations (WFDSA), reports that its 59 regional member associations
accounted for more than US$114 billion in retail sales in 2007, through the
activities of more than 62 million independent sales representatives.[5] The
United States Direct Selling Association (DSA) reported that in 2000, 55% of
adult Americans had at some time purchased goods or services from a direct
selling representative and 20% reported that they were currently(6%) or had
been in the past(14%) a direct selling representative.
According to the WFDSA, consumers benefit from direct selling because of the
convenience and service it provides, including personal demonstration and
explanation of products, home delivery, and generous satisfaction
guarantees. In contrast to franchising, the cost for an individual to start an
independent direct selling business is typically very low with little or no
required inventory or other cash commitments to begin.
Most direct selling associations around the world require their members to
abide by a code of conduct towards a fair partnership both with customers and
salesmen.
Most national direct selling associations are represented in the World
Federation of Direct Selling Associations (WFDSA).
Direct selling is distinct from direct marketing because it is about individual
sales agents reaching and dealing directly with clients. Direct marketing is
about business organizations seeking a relationship with their
customers without going through an agent/consultant or retail outlet. Direct
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AMWAY REACHING CUSTOMER THROUGH DIRECT SELLING

selling often, but not always, uses multi-level marketing (salesperson is paid
for selling and for sales made by people he recruits or sponsors) rather
than single-level marketing (salesperson is paid only for the sales he makes
himself).
Telemarketing
This is one of the chief direct sales tactics prevalent today. There are different
methods used to get your sales flowing and also make customers happy to take
your calls. You should be very pleasant and stay on the point while making
your sales pitch.
Direct Mail
This is marketing conducted exclusively through mail. Direct mail may vary in
format, but usually conforms to standard mailing requirements. A direct mail
package includes a letter, brochure or even both.
Direct Response
This is an advertising technique that urges consumers to respond in a certain
manner, usually to buy a product, and also provides them the means to do so.
A business reply card is a direct response tool.
Home parties
The party plan method, most commonly associated with in-home parties, offers
friends, family members, co-workers and other groups a fun and relaxing way
to get together and shop. In most cases, the party host is responsible for
inviting guests, providing light snacks and securing a venue to hold the
gathering usually in his/her home. On the day of the party, guests arrive and
mingle and might use this opportunity to peruse products and services
displayed. In many cases, a consultant will briefly introduce the products and
services available, and provide samples or demonstrations to the group.
Afterwards, attendees have the chance to ask questions or place orders. As a
thank you for her time and effort the host will often receive discounted or free
products and other specials from the consultant.
Person-to-Person
Many consumers are surprised to learn that the party plan method of selling
didnt begin until the 1940s. Even today, nearly 70% of all direct sales take
place in a person-to-person manner. Consultants are happy to meet in private
with customers to discuss products or services, provide demonstrations,

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AMWAY REACHING CUSTOMER THROUGH DIRECT SELLING

fittings or other assistance as needed. The items orders are either shipped
directly to the customer or delivered by the consultant.
Online
Most direct selling companies offer consumers two ways to shop online. The
first is through a consultants personal Web page, which can usually be
accessed from the companys Web site. Customers who shop this way have
more than likely been introduced to products or services by their representative
in the past, and often continue to place orders in-person or by calling their
consultant. If you dont already have a consultant you can often enter your
location or zip code on the companys main Web site and a knowledgeable
consultant will contact you directly. The consultant will still receive a
commission for sales made online.
In some cases, customers can shop directly from a companys Web site. This is
less common and sales are still usually credited to a representative in your
area who will likely follow up with you to make sure you are happy with your
purchase.
The key thing to remember about online purchases is that you still have access
to a helpful consultant who can provide knowledge and advice that just cant
be matched in a more traditional retail setting. Having this kind of access 24/7
is a key benefit to direct selling online.

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Question 3: Make A List of The Reasons Why Individuals may wish to set up
their own businesses?

Control
If a person has its own business; it gives them more control over how much
money they make and how much they will work to gain more. When a person
starts his business it is solely dependent on the person how to start and
maintain it in future. In short the control comes in the persons hand and there
is no one elses control over him.
Choice
When a person starts his/her own business, it gives him/her freedom to
whatever they want to do. For instance, it gives you a choice whether you want
to do business and job together or deal in various products of your own choice.
Moreover, being a freelancer or an independent contractor gives a person
freedom regarding which jobs they choose to take.
Business Decisions
If a person has his own business the success or failure of the business solely
depends on your business decisions. For example, having your own business
means you make the choices instead of having them made for you by an
employer and the choices made decides if u fail or succeed, which in turn tells
whether your decision was worth for a business. It gives you motivation to
improve yourself in future and makes you a better businessman.
Satisfaction
Some people start their own business for themselves because they have a skill
or a product to offer. They enjoy being obsessive about what they do. Moreover,
starting your own business gives a person satisfaction as whatever they do they
do for themselves and they can work hard to earn as much money as they want
and there is no fixed salary.
Job loss
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When a person loses his job, he may take his work experience and professional
contacts and start his own business to make him less vulnerable to risks.
Get creative
Starting up a new business, provides and entrepreneur to bring his creativity
out. If a person has considered going it alone, he will have thought out how you
would do things your way. Being an entrepreneur gives him the freedom to
express himself and develop his concept in any way he chooses. Of course,
there are always financial constraints, but the ability to be as creative as you
like is far more appealing than a one-dimensional job.
Very profitable
If you think that its just large corporations that make big profits, you would be
wrong. There are countless stories of entrepreneurs hitting on a great idea,
exploiting it well and being well on their way to their first million by the end of
the year. Although the start-up process can be tough, with long hours and little
money not uncommon, if you run your business well, the rewards can be huge.
And, from a purely selfish point of view, you will get most of the profits
yourself.
Unfortunately, many of the businesses are more likely to fail in its initial years
because of the difficulties that commonly plague struggling companies suffer
from. These difficulties occur in every business in its early years as the
business is new to everyone even to the management itself. Some of these
reasons are elucidated below.
Insufficient Capital
A common fatal mistake for many failed businesses is having insufficient
operating funds. Business owners underestimate how much money is needed
and they are forced to close before they even have had a fair chance to succeed.
They also may have an unrealistic expectation of incoming revenues from sales.
It is imperative to ascertain how much money your business will require; not
only the costs of starting, but the costs of staying in business. It is important
to take into consideration that many businesses take a year or two to get going.
This means you will need enough funds to cover all costs until sales can
eventually pay for these costs.

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Operating as a limited company often gives suppliers and customers a sense of

confidence in a business. Larger organizations in particular will prefer not to
deal with non-limited businesses. Also, many of the costs associated with
managing and operating a limited company are not much more than with a
non-limited business.
You Control Your Own Destiny
You Can Find Your Own Work/Life Balance
You Take on the Risk And Reap the Rewards
You Can Challenge Yourself
You Can Follow Your Passion
You Feel Pride in Building Something of Your Own

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Question 4: Produce A Frank And Realistic Comparison of Direct Selling With

Retail Shopping. In Doing S List The Advantages And Disadvantages of
Each?

Direct Selling
Advantages

Disadvantages

request responses from potential customers

demand from consumers to end unsolicited

contact from companies

making the results tractable and allowing

companies to quickly determine

Consumers do not appreciate privacy intrusion or

beneficial to test consumer responses with a small

campaign before scaling up and launching a full

Generating poor quality leads and failing to bring

a high number of repeat customers.

Brand loyalty as some customers enjoy receiving

Time Consuming

the sheer mass of communication, referred to as

spam or junk mail, received on a daily basis.

information on deals and discounts, and easily

become repeat customers.
Flexible Buying Hours

Limited Coverage

Flexibility To Choose Working Hours

Scam Potential

Benefits for Companies

Does Not Require High Capital Investment

Allows To Avoid Addition Intermediaries in Distribution

Effective in Gaining the Initial Interest And Attention

Unique Competitive Strategy

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Retail Shopping
Advantages

Disadvantages

Shopping in a real store gives

customers the opportunity to really
inspect the merchandise they buy for
quality.

Large store can be a nightmare to

many people more so when they find
out that what they are looking for is
not available at the time.

If one chooses to buy big items like

furniture, customers can try out the
product and see if they are
comfortable with it.

Long lines, irate customers or

cashiers, heavy push carts or baskets
can be unappealing in physical retail
stores.

Brick and mortar shops also give this

adventure kind of hype and elevate
the sense of satisfaction in
discovering rare finds or great
bargains.

Special occasions like the holidays

can also be very hectic when
customers are rushing to get
bargains and are willing to get into an
argument.

Human contact also creates a bond

between seller and buyer, initiating
trust and guarantee which can make
most customers feel good about a
purchase.

Scammers and hackers are out to get

a fast buck on unsuspecting
customers.

Customers can also take advantage

of search engines so that they find
the products they want in the fastest
way possible.

Some online businesses thrive in

using poor customer service just to
get high ranking in search engines.

More and more people buy on online

furniture retailer nowadays because
searching a warehouse for a specific
type of product can take a long time
in a real store.

Some products also have higher

prices compared to physical store due
to delivery charges.

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Advantages of Buying Retail

The personalized experience of retail shopping allows consumers to analyze
and compare products side-by-side prior to making a purchasing decision. This
can entail trying wearable goods on for fit and style, or inspecting and testing
demonstration products, in the case of such things as electronics, to gauge
features or ease of usability. Purchasing goods through retailers also eliminates
shipping costs and gives consumers the opportunity to return their purchases
easily if they don't meet their satisfaction.
Advantages of Buying Direct
Buying direct from distributors has several distinct advantages for consumers.
The major advantage of direct buy purchases is reduced prices, given the
absence of additional costs customarily affixed to retail goods for transport,
warehouse handling, packaging, and retail display and marketing. Direct buy
vendors also reduce costs through employing less staff members than retail
outlets, as staff is not needed to arrange merchandise or maintain retail space.

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Bibliography
http://www.directsalesaid.com/marketing
http://www.directselling411.com/for-shoppers/ways-to-shop/
http://en.wikipedia.org/wiki/Direct_selling
http://www.morebusiness.com/running_your_business/management/Direct-Sales.brc
http://www.inc.com/guides/201101/top-10-reasons-to-run-your-own-business.html
http://www.ukessays.com/essays/business/reasons-why-someone-would-set-up-their-businessbusiness-essay.php
http://www.ehow.com/info_8627267_advantages-selling-direct-enduser.html
http://www.ehow.com/info_8149944_advantages-disadvantages-direct-sales.html
http://www.edsa.ee/en/direct-selling/advantages-of-direct-selling/
http://yourbusiness.azcentral.com/disadvantages-direct-sales-marketing-1772.html
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http://smallbusiness.chron.com/retail-sales-vs-buying-direct-30803.html

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