Market mix for direct selling.
Many people have experiences of people coming to the door and performing direct selling. However, nowadays, people don’t appreciate direct selling too much because some of them had bad experiences, and a lot people just don’t know why they still do such an old school selling style. As a door-to-door salesman, I have found some reasons why people do direct sales in 2011 according to the marketing mix.
– Promotion
Low advertising expense – despite of other creative ways, many companies spend ton of money just by putting some TV commercial to market their products. However, as a direct selling company, it does not do much promotion to save more capital for profits.
– Place
Normally, when people see something useful and cool, they will have strong emotion toward it at the moment. Since those sales are mostly made at home, people feel more comfortable to make a decision. If they have more choices at the mall, this urgent feeling will fade off once they conduct more research and comparison on that product. Thus, direct sales, more importantly for door to door sales, will speed up the process and help people make a decision at home or in their office.
– Price
In my opinion, most direct sales companies offer lower priced products or services since they can save much money from avoiding capital investment. Dealers in this business will be able to make more commission comparing to other in-store employees.
– Product
As a special business model, these companies also offer special products. These products are normally attractive in the first place too.
These business models use their niche to become the differentiated industry and provide customers with special experience. Their special marketing mix and value proposition offer them the successes in the competitive markets.