What is direct selling?

According to the State Council DecreeNo. 443rd, the Regulations on Direct Selling Management first defined "What is direct selling? What is direct selling? " Clear definition:

Direct selling refers to the distribution mode in which direct selling enterprises recruit direct sellers, who directly sell products to final consumers outside the fixed business premises.

Second, the evolution of the definition of direct selling

The word direct selling in Chinese, as its name implies, means direct selling, and the marketing method of directly providing products or services to consumers is direct selling in the ordinary sense. Our common direct selling methods are as follows:

Store services, such as barber shops, hairdressers serve customers directly.

The front and rear kitchens, such as restaurants, provide meals and services directly to consumers from the kitchen to the restaurant.

In the front shop and back factory, such as a tailor's shop, the tailor provides clothes to consumers directly from the sewing room to the counter.

Commissioned processing, such as the Three Gorges Dam generator set, is produced by the factory as required and directly provided to the power station.

Special industries, such as military factories, sell products directly to the army and so on.

1998 After the adjustment of China's pyramid selling policy, people gradually began to use the word direct selling instead of pyramid selling. Since then, the word "direct selling" has been given a specific meaning.

The word MLM is translated from the English word "multi level marketing". It means: a multi-level related operation mode.

The abbreviation of multi level marketing is MLM. According to the sales principle of MLM, products or services are provided to consumers through n up-and-down lines (multi-level). How can it be called direct selling? Obviously it is multi-level sales, but it must be called direct sales. Isn't this a kind of "rape" of "direct selling" of China characters?

There is a saying in philosophy that existence is inevitable. It seems that there must be some truth in people using the word direct selling instead of spreading, so where is the truth?

Since from the principle of pyramid selling, it is incompatible with direct selling to provide products or services to consumers after N-ups and N-downs, we might as well analyze it from the form of pyramid selling. Traditionally, people shop from shop stalls, while pyramid selling is directly carried out between people. Store-free operation is the main sales form of pyramid selling.

Did you find out before you knew it? The word "directly" has been included in the above paragraph "MLM is done directly between people".

Oh, the original intention of MLM is to provide products or services directly to consumers without going through stores.

According to the national policy at that time, people called the multi-level business model of "specialty stores plus direct sellers" "direct sales". The multi-level management mode without specialty stores is called "illegal pyramid selling". The word "MLM" has been diluted and there is no clear definition.

With the development of direct selling legislation, the Regulations on Direct Selling Management, which was promulgated on September 1 2005 and will be implemented on February 1 2005, once again clarified "What is direct selling? What is direct selling? " The latest clear definition is given.

Although the meaning of the word "direct selling" has experienced many twists and turns, as a new sales method, it has immeasurable vitality. Will certainly bring unlimited business opportunities.

Respondent: Li Zhonggeng —— Master of National Security 14 Grade 3-7 12:59.

Direct selling is an ancient form of sales, that is, there is no intermediate link between producers and end users of products, such as farmers selling their agricultural and sideline products directly in the market. However, what we are talking about here is that direct selling refers to a modern marketing method, and the modern market economy has given it brand-new content.

However, it is a great pity that there is still a great debate on the definition of modern direct selling in both academic circles and industry, and there is no unified statement so far. Some people even confuse direct selling with direct selling, and many people compare direct selling to mice. This paper aims to analyze and define the connotation of direct selling by briefly introducing some current mainstream viewpoints.

First, the current popular definition of direct selling

For the definition of direct selling, the current mainstream views mainly include the following:

Definition of World Direct Selling Association: Direct selling is a way to sell consumer goods or services directly to customers; Direct selling is generally carried out in customers' own homes or other people's homes, and can also be carried out in other non-commercial shops such as customers' workplaces; Direct selling is usually carried out by direct sellers through explanations and demonstrations of products or services.

DSA (Direct Selling Association) in Taiwan Province Province defines direct selling as a human undertaking, and all direct selling achievements and activities are promoted based on people. Dealers, suppliers and consumers are all made up of people, and the existence of direct selling is to serve people and meet their needs and interests.

According to the definition of American Direct Selling Education Foundation in 1992, direct selling is a distribution method of consumer goods or services that is not in a fixed business place, but mainly through personal contact (salesman to buyer) at home.

The two most famous American scholars who study direct selling are Professor Robert A. Peterson of the University of Texas at Austin and Professor Thomas R. Votruba of San Diego State University. They discussed the definition of direct selling in a paper published in 1996, and gave a simple but appropriate definition of direct selling: direct selling is a kind of face-to-face sales without fixed retail outlets.

Second, the characteristics of direct selling

Although the expression, angle and emphasis of the above definitions are different, these definitions are permeated with some characteristics, which are two inherent characteristics of direct selling, and these two characteristics are also the most important aspects that distinguish direct selling from other sales methods.

1, face-to-face sales

Face-to-face sales mainly emphasize that direct selling is a process of face-to-face communication between two people; It is a face-to-face communication between direct sellers and customers. This kind of communication can be said to be a demonstration of products or services. In this process, both parties complete the transaction process.

Through face-to-face sales, enterprises can shorten the level of commodity circulation channels and form direct communication with customers. Direct sellers can introduce, demonstrate and answer questions about the characteristics, efficacy, usage and scope of application of products in detail for customers, and can also provide consulting and services on sales, so that the sales and consumption of products can meet the actual needs of each customer.

2. Not in a fixed retail outlet

Not in a fixed retail point means that direct selling is different from the sales of general retail stores, and it is a retail method without stores. It is not limited by space and can be carried out anywhere, which is convenient for consumers and distributors. Therefore, direct selling enterprises can deliver goods to consumers through direct sellers in customers' homes, workplaces and even other unspecified places.

However, there is one more thing to note here. In the years of direct selling development, many changes have taken place in direct selling. Because the laws of different countries are different, many countries stipulate that direct selling companies must have stores. For example, South Korea's Direct Selling Law stipulates that there must be one store for every 65,438+000 salesmen, and China government stipulates that direct selling companies must sell through stores and salesmen. Therefore, some scholars believe that the traditional definition of direct selling needs to be revised. We think there is a misunderstanding here. Direct selling itself does not need fixed retail outlets. The store's stipulation on this point is the government's restriction on the direct selling business model. This provision itself does not prevent direct selling as a way of commodity circulation. The development and completion of direct selling activities do not depend on or rely on fixed retail outlets.

Third, direct selling and direct selling.

At present, the biggest misunderstanding of direct selling is to confuse it with direct selling. We say that there is a great difference between direct marketing and direct marketing (some people refer to direct marketing as direct marketing for short):

1, the difference in name

Direct selling is translated from English direct selling. In this sense, direct selling should be translated into direct selling. The English for Direct Marketing is direct marketing. Some scholars call it direct marketing, while Taiwan Province scholars call it direct marketing. From the name alone, the two are not integrated.

At the same time, according to the theory of marketing, sales and marketing are two completely different concepts. There is a classic saying in academic circles that makes the relationship between sales and marketing very clear: sales are only the tip of the iceberg of marketing.

2. Differences in form

Direct selling is a retail way in which manufacturers or specially established direct selling companies recruit full-time and part-time (part-time-based) salespeople and conduct strict training to form a direct selling network, forming a strict management and incentive system, and salespeople sell goods directly to customers.

Direct selling means that manufacturers sell their products directly to consumers without going through any first-class middlemen, and the manufacturers who adopt direct selling bear all the work and risks in the marketing process.

3, the difference between the media

Direct selling emphasizes people, people-oriented, and the main medium of direct selling is experienced salespeople. According to the marketing point of view, it belongs to personnel sales in product promotion strategy.

Re-marketing does not emphasize people, basically does not involve sales staff, and try to reduce sales staff. Its main media are mailing lists, telephone, television, direct response advertising or the recent rise of online marketing to sell products or services.

4. Emotional differences

Direct selling is to complete the whole transaction through face-to-face communication between sales staff trained by enterprises and customers. In this sense, direct selling is not only a way of sales, but also a way of emotional communication. Through this sales method, the interaction between enterprises and customers can be realized. Direct selling emphasizes emotional input, communication and responsiveness.

Direct marketing includes catalog marketing, mail order marketing, telephone marketing, media (TV, telephone, magazines, newspapers) marketing and the latest network marketing (computer). Enterprises complete the whole product marketing process through these emotionless media. Direct selling emphasizes the convenience of commodity selection and purchase, and there is no emotional color of personnel communication.

Four. abstract

As a kind of commodity circulation, sales or business organization in modern commercial society, direct selling is an indisputable reality. It meets the demand and plays an indisputable role in promoting consumption, prospering business and developing economy. While seeing the powerful power of direct selling, there are many different views and opinions on the definition of direct selling. However, we believe that face-to-face sales, not in fixed retail outlets, should be the biggest feature of direct selling and an important factor for direct selling to become an independent industry. In the face of the rapid development of direct selling industry and the rapid penetration of direct selling methods, we must clearly understand the true connotation of direct selling, which is very different from the direct selling that many people often mention (in fact, it is the misunderstanding caused by direct selling, English translation and daily abbreviations). Recognizing these differences is the key to our real understanding of direct selling.