Direct selling enterprises refer to enterprises that are approved to sell products by direct selling according to regulations.
A direct seller refers to a person who sells products directly to consumers outside the fixed business premises.
Direct selling originated in America. After 1980s, with the rapid development of information society and people's psychology of convenient shopping, it rose. Now, in countries with mature and developed market economy, direct selling is almost all over the world. Although direct selling can be said to be the earliest commercial distribution mode of human beings, direct selling has not been well understood, and the definition of direct selling has not been finalized so far, because direct selling is divided into two categories:
The first category: producers, manufacturers and importers of narrow direct selling products sell their products to consumers face to face through distributors (and consumers), including single-layer direct selling and multi-layer direct selling. 20% direct selling companies use single-level direct selling, and 80% direct selling companies use multi-level direct selling. Uni-Level Marketing is a sales model in which direct sellers (and consumers) sell the company's products or services to consumers and get bonuses from the company according to their sales performance. Multi level marketing, also known as "MLM", is based on the company's reward system. Distributors (and consumers) can not only sell the company's products or services to consumers, but also absorb, coach and train consumers to become his offline distributors. His name is online distributor, and online distributors can be promoted to classes according to the number, generation and performance of offline distributors, and get different proportions of bonuses.
The second category: Direct Marketing, also known as direct marketing, refers to product manufacturers, producers and importers delivering products or suggestions to consumers through media (e-mail DM, TV shopping channels and the Internet). In direct selling, "straight" refers to direct sales to consumers without dealers, and "word" refers to the interaction between enterprises and customers. Customers have a clear reply (buy or not) to the marketing efforts of enterprises, and enterprises have clear statistical reply data, so as to evaluate the previous marketing effect.
The first kind of direct selling is called narrow sense direct selling, and the first and second kinds together are called broad sense direct selling. On June 5438+February 1 day, 2005, China's "Regulations on Direct Selling Management" was promulgated. The term "direct selling" as mentioned in these Regulations refers to the distribution mode in which direct selling enterprises recruit direct sellers, who directly sell products to the final consumers (hereinafter referred to as consumers) outside the fixed business premises. Direct selling referred to in the Regulations is the first definition mentioned above. The most important marketing model in the first direct selling model, multi level marketing, which is what we usually call pyramid selling, has been banned in China. Therefore, the similarity of the above two marketing models has greatly increased. Their similarity is that there is no store sales, and products or services are directly oriented to users without going through distributors.
Generalized direct selling has a clear concept:
Direct selling refers to the way that product manufacturers, producers or importers sell products or services directly to the final consumers.
Direct selling, as its name implies, is direct selling, and the marketing method of directly providing products or services to consumers is the real direct selling. Our common sales methods with real direct selling significance are as follows:
1. Shop services, such as barbershops, where barbers serve customers directly.
2. The front and back kitchens, such as restaurants, provide meals and services directly to consumers from the kitchen to the restaurant.
In front of the shop and behind the factory, such as a tailor's shop, the tailor directly provides clothes to consumers from the sewing room to the counter.
4. Entrusted processing, such as the Three Gorges Dam generator set, is produced by the factory as required and directly provided to the power station.
5. Special industries, such as military factories that sell products directly to the military.
After China banned illegal pyramid selling, people gradually began to use the word direct selling instead of pyramid selling.
In essence, the "direct selling mode" is to reduce the circulation cost of products and meet the needs of maximizing customers' interests by simplifying and eliminating middlemen. In the non-direct selling mode, there are two sales teams, that is, manufacturers to distributors, and then distributors to customers.
In China, direct selling is defined as a marketing activity in which manufacturers communicate directly with target customers on the basis of putting forward certain demands to the public, so as to achieve actual consumption.
Direct selling has three elements: first, the support of public consumption consciousness; The second is the establishment and formation of one-to-one relationship; The third is on-site display and key promotion.
Because direct selling directly faces customers, it reduces the storage area, eliminates bad debts, and has no additional cost and corresponding inventory brought by dealers, so it can protect the interests of the company and customers and accelerate the growth pace.
In order to carry out direct selling, the company must first study the customer's needs, not competitors, and cut into the market by segmenting the market and providing heterogeneous products. Secondly, it is necessary to increase the tentacles of direct selling and maintain interaction with customers, such as online direct selling, e-commerce, DIY order taking and telephone direct selling. Thirdly, there must be scientific methods to manage the direct selling team and ensure the efficient operation of the sales team. For example, Amway's store+sales representative direct selling and "make-to-order" Dell direct selling are the two most successful direct selling methods. The core element of Amway-style direct selling is to improve the satisfaction of customers and employees, while Dell-style must constantly develop new products to meet the heterogeneity of customer needs.