Amway - Reaching Customer Through Direct Selling - Group - Ali Zulfiqar

8/10/2019 Amway - Reaching Customer Through Direct Selling - Group - Ali Zulfiqar

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Amway

Reaching

Customer

through Direct

Selling

Ali Zulfiqar

Arslan Jaan

Asadullaha Bashir

Sohaib Manzoor

Safwan Saleemi

Haris Mumtaz

By

8/10/2019 Amway - Reaching Customer Through Direct Selling - Group - Ali Zulfiqar

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AMWAYREACHING CUSTOMER THROUGH DIRECT SELLING

SUBMITTED BYALI, ASAD, ARSLAN, SAFWAN, HARIS, SOHAIB SUBMITTED TOSIR WAQAR-UL-QAYYUM

Task and Activity

1. Question2: Explain What Is Meant By Direct Selling? In What Ways Do

You Engage In Direct Selling in Everyday Life?

2. Question3: Make A List of The Reasons Why Individuals may wish to set

up their own businesses?

3. Question4: Produce A Frank And Realistic Comparison of Direct Selling

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

Each?

Question2: Explain What Is Meant By Direct Selling? In What Ways Do You

Engage In Direct Selling in Everyday Life?

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AMWAYREACHING CUSTOMER THROUGH DIRECT SELLING

SUBMITTED BYALI, ASAD, ARSLAN, SAFWAN, HARIS, SOHAIB SUBMITTED TOSIR WAQAR-UL-QAYYUM

Face to facepresentation,demonstration,

andsale ofproducts orservices,usually at the home oroffice of

aprospect by theindependent directsales 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 theparty plan,one-

on-one demonstrations, and other personal contact arrangements as well

asinternet 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 ofDirect 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 theconvenience 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 WorldFederation of Direct Selling Associations (WFDSA).

Direct selling is distinct fromdirect 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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AMWAYREACHING CUSTOMER THROUGH DIRECT SELLING

SUBMITTED BYALI, ASAD, ARSLAN, SAFWAN, HARIS, SOHAIB SUBMITTED TOSIR WAQAR-UL-QAYYUM

selling often, but not always, usesmulti-level marketing (salesperson is paid

for selling and for sales made by people he recruits or sponsors) rather

thansingle-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 ResponseThis 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 forinviting guests, providing light snacks and securing a venue to hold the

gatheringusually 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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AMWAYREACHING CUSTOMER THROUGH DIRECT SELLING

SUBMITTED BYALI, ASAD, ARSLAN, SAFWAN, HARIS, SOHAIB SUBMITTED TOSIR WAQAR-UL-QAYYUM

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. Thefirst 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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AMWAYREACHING CUSTOMER THROUGH DIRECT SELLING

SUBMITTED BYALI, ASAD, ARSLAN, SAFWAN, HARIS, SOHAIB SUBMITTED TOSIR WAQAR-UL-QAYYUM

Question3: 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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AMWAYREACHING CUSTOMER THROUGH DIRECT SELLING

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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 creativityout. 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 thesereasons 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 importantto 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.

Gives confidence-

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AMWAYREACHING CUSTOMER THROUGH DIRECT SELLING

SUBMITTED BYALI, ASAD, ARSLAN, SAFWAN, HARIS, SOHAIB SUBMITTED TOSIR WAQAR-UL-QAYYUM

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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AMWAYREACHING CUSTOMER THROUGH DIRECT SELLING

SUBMITTED BYALI, ASAD, ARSLAN, SAFWAN, HARIS, SOHAIB SUBMITTED TOSIR WAQAR-UL-QAYYUM

Question4: 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

the sheer mass of communication, referred to as

spam or junk mail, received on a daily basis.

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

information on deals and discounts, and easily

become repeat customers.

Time Consuming

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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AMWAYREACHING CUSTOMER THROUGH DIRECT SELLING

SUBMITTED BYALI, ASAD, ARSLAN, SAFWAN, HARIS, SOHAIB SUBMITTED TOSIR WAQAR-UL-QAYYUM

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 apurchase.

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 specifictype 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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AMWAYREACHING CUSTOMER THROUGH DIRECT SELLING

SUBMITTED BYALI, ASAD, ARSLAN, SAFWAN, HARIS, SOHAIB SUBMITTED TOSIR WAQAR-UL-QAYYUM

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 testingdemonstration 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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AMWAYREACHING CUSTOMER THROUGH DIRECT SELLING

SUBMITTED BYALI, ASAD, ARSLAN, SAFWAN, HARIS, SOHAIB SUBMITTED TOSIR WAQAR-UL-QAYYUM

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-business-

business-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

http://smallbusiness.chron.com/disadvantages-direct-selling-23209.html

http://businesscasestudies.co.uk/amway/reaching-customers-through-direct-selling/the-personal-

touch.html#axzz3KxoAL8Sl

http://smallbusiness.chron.com/retail-sales-vs-buying-direct-30803.html