Single Level Direct Selling

1918 WordsJul 7, 20188 Pages
World Federation of Direct Selling Association (WFDSA) has defined direct selling as “on non-fixed retailing places and through the use of face to face way, the product and service are sold directly to the consumers.” Robert, Peterson & Wotruba (1996) also describe direct selling as a face to face selling without fixed retailing sites. This can also be described as a distribution method for consumptive product or service through personnel contact (sales personnel to the consumer) and at different commercial locations. The natures of consumptive and distribution way are emphasized from direct selling (Rosenbloom 1993). Direct selling can be either single level direct selling or multi-level direct selling. In this case we are interested in…show more content…
The customer will give feedback to the consultant about the products he/she has used and the consultant in turn will pass this to the producer (Mary Kay). This will help the producer improve the product quality. Mary Kay will sometimes give surveys to the consultants who complete them personally or give out to their clients. Financing is the most important of these flows, when stocks are being held by one member of the channel, financing is in operation. This notion is apparent if the costs of stocks are considered. Stocks that are held in store as dormant stock is considered dead money, but if these is freed via the independent beauty consultants, the said dead money is thus available for reinvestment. This backward flow of financing is not only associated with stockholding, but can also be prepayment for merchandise. Forward flow of financing is more common. All terms of sale, with the exception of cash on delivery and prepayment are viewed as elements of the forward flow in financing (Govindarajan 2007). Business transactions involve taking risks. Risking in this case according to the universal marketing channel has both the forward and backward flows. The producer (Mary Kay) will come up with a given new product line that needs to be channelled to the market. They are not sure if the product will be accepted by the market or not. They are taking risks. Sometimes they give

More about Single Level Direct Selling

Open Document