Advantages and disadvantages of direct sales

"DirectSales" is often used as an acronym DS "to use, the Chinese said:" direct sales ". Advantages of direct sales:

1, reduce product prices, improve the competitiveness of the enterprise products direct sales enterprises marketing channels are: manufacturers - direct sellers - consumers, eliminating the intermediary layers of price increases, many times the hands of the multiple handling and so on, is conducive to reducing the selling price, improve the competitiveness of the product, so that direct sales enterprises in the competition in a favorable position. The direct selling company is in a favorable position in the competition.

2, rapid feedback, conducive to the improvement of products and services can reduce the cost of market research. It is because of the characteristics of direct marketing, direct marketing channels are very short, direct selling manufacturers of marketing personnel can be more direct, more quickly from consumers to get real and accurate information, in order to facilitate the enterprise according to their own situation and consumer opinions and suggestions;

3, publicity is good, and low advertising costs. Direct marketing enterprises mainly through word-of-mouth publicity so that consumers recognize the understanding of the product, which greatly reduces the cost of enterprises in advertising. In the direct marketing process, each marketer can be regarded as a "living advertisement", more distinctive and attractive than other forms of advertising, and can always answer consumer questions.

4, the return of money quickly, speeding up the enterprise's capital turnover. Traditional marketing methods, manufacturers sell their products to intermediaries, usually on credit, the payment term is as short as one month, the long term may be three months, six months or even longer, many manufacturers are precisely due to the poor capital turnover and closure.

5, can provide consumers with specialized, humane service. Most of the marketing staff have been professionally trained, with rich practical experience in marketing, so in the process of product marketing, both pre-sale, sale, after-sales service are more in place. Disadvantages of direct marketing:

1, the product is sold at a low price, consumers are difficult to accept. Although direct marketing eliminates the intermediate links of the traditional distribution channels, but the direct marketing company's products are not cheap at all. The company has to ensure that the profits of the direct sellers, in order to mobilize the enthusiasm of the direct sellers. This will have to pull up the price of the product. And the direct sellers have to deify the products, even the company and the direct selling, in order to market the high-priced products.

2, direct sellers to earn money to be constantly marketing. 95% of people in the world do not like to promote, and 99% of people do not like to be promoted. This is the fatal flaw of the word "sell" in direct selling. When a direct seller sells a product or business opportunity to a customer, many people are defensive and put up a wall to avoid getting hurt. Even if they buy the product, they are just being facetious.

3, must deliver. Direct sellers are not only a senior salesman, but also a senior deliveryman, collector, but also the fire department captain (team members out of the problem to go "fire"). When a very good customer toothpaste run out, asked to send a toothpaste to him, that send or not send it? If you don't, you'll lose a good customer. Send it, not to mention the cost of transportation, but also spend time and effort.

4, easy to hoard, resulting in cut-price competition. Stockpiling is not the intention of the company and direct sellers, but some leaders will mislead direct sellers to stockpile. And direct sellers in order to charge performance, the award title, will be hoarding. Such as A company's direct sellers in order to rush awards, the thousands, tens of thousands, or even hundreds of thousands of goods hoarded at home. And N company's direct sellers in order to complete the performance appraisal, forced to hoard goods. Some people say that selling out is called stocking up, but not selling out is called hoarding.

5, performance pressure. Performance pressure has good and bad. The good thing is that it forces direct sellers to work hard, but many of the disadvantages of direct selling are also generated by performance pressure. In a direct selling environment, many people are happy, but that is busy and happy. The purpose of doing direct selling is to have money and leisure, but under the pressure of performance, the pressure of direct sellers and can not be idle.