這是一個銷售方法，生產商直接銷售給消費者或零售商沒有任何的中間商來干預，如批發商、零售商或經紀人。這意味著生產者必須直接與客戶進行溝通以確保銷售。它通常是由有擴大意向或有新的目標市場的企業所采用。使用這種銷售方法有許多的優點：

直銷減少了中間商–經銷商和分銷商都希望自己的股份有利可圖。通過切割的方式，它將使生產者獲得最大的利潤，這對公司來說是有益的。

直銷削減了官僚主義–處理客戶銷售查詢的效率更直接，這對雙方來說都是有效率的。來自第三方的文件有任何延誤也會被保持在最低限度。

直銷削減工資成本–而不是各個商店和銷售部門進行融資，生產商可以通過在一個中心區域聚焦經營降低成本。他們可以節省成本，尤其是如果他們使用一個郵政投遞服務。

這些是對于生產者來說有利的部分。對于從公司購買使用這種銷售方法的客戶也是有優勢的：

直銷可以使價格更低–通過削減中間商，公司可以降低其產品的成本和以更低的價格直接向客戶銷售。

 

This is a method of selling whereby a producer sells directly to a consumer or retailer without any intervening middleman such as wholesalers, retailers or brokers. This means a producer must communicate directly with their customer in order to make sales. It is usually used by businesses which have intensions of expanding or finding a new target market. There are various advantages for using this selling method:

Direct selling cuts out the middleman – dealers and distributors will always want their share in profit. By cutting them out, it will allow the producer to make maximum profit which will be beneficial for the company.

Direct selling cuts out bureaucracy – dealing with customer sales enquiries directly, it allows efficiency for both parties. Any delays which may arise from paperwork from third parties will also be kept to a minimum.

Direct selling cuts payroll costs – rather than financing various stores and sales departments, the producer can cut costs by focusing their operation in one central area. Costs can be cut especially if they use one postal delivery service.

These are all advantages to the producer. There are also advantages for the customers who purchase from companies which use this selling method:

Direct selling allows lower prices – by cutting out the middleman, companies can afford to cut the costs of their products and these lower prices can be passed on directly to customers.

Direct selling allows shopping from home – Customers can make purchases from their home or another location which is suitable for them by communicating directly to the company. Either way, it is more convenient for the customer. Customers also have the comfort of having the product delivered to their home at no extra cost.
 

However, using these selling methods can also bring disadvantages to both the customer and the producer.

Personal selling

This usually involves direct communication between a sales representative and a potential customer with the objective of making a sale. Therefore the communication skills of the sales representative must be good in order for this sales method to be successful. This sales method is usually used by companies which sell goods of high value or goods which require a demonstration of its use.

Estate agent haart are an example of a company which uses this selling method. After finding a potential buyer, the estate agent will show them around the property they are interested in.

Lookers are a car dealership which also uses this sales method. Their employees must show potential buyers the benefits of the car they are interested in or even allow the potential customer to test drive the car. This is a factor which could raise sales because the customer will gain first hand experience of the car.

Insurance sales people such as Churchill also use this sales method. All legalities surrounding the insurance features, benefits and exclusions of the policy have to be explained in full. For this reason the company must speak directly to the potential customer in order to ensure that they understand the terms they are agreeing to.

Personal selling may also involve selling from brochures such as avon. Representatives sell to people in their home, workplace or at a social or leisure event. They will usually sell to friends and relatives. They place their order, and a few days later, the seller delivers their product directly to their homes. This is a fast and easy selling method for companies of this nature.

Door to door sales is involved when talking about personal selling. This is usually used by utility companies such as Virgin, speak directly to potential customer in order to try to persuade them to switch provider.

There are advantages of using this selling method. The sales person can answer any questions or queries a customer may have about the product. Any issues can therefore be solved immediately.

As one customer is dealt with by one sales assistant, the customer feels valued. This improves the company’s customer relationship as the sales person acts on behalf of the organisation.

Sales people who work for such companies seem to be well trained. This is important as they need o learn how to approach customers, and in turn they will improve their personal selling techniques. However, if members of staff are not properly trained, this selling method could be a disadvantage. Sales people could come across as aggressive and forceful.

Potential customers therefore feel pressurised into the sale. This can be a put off for the customer and the company could gain a bad reputation.

It is also expensive to train staff to use this sales method. Members of staff need to be trained on their person to person communication. All companies want to be profitable and training staff to use this sales method can be a costly gamble for the company.

Companies who use this sales method usually have high staff turnover rates. This is because members of staff are usually paid by commission and they therefore feel they are not being paid enough for the work they do.

Direct Mail

This is a selling method where named customers are sent promotional materials exclusively by mail.

This selling method requires a database of information of customers. These databases are used to manage information about customers so that the promotional materials are sent accurately to the correct recipient. This database also helps the company target a specific audience to make it effective. The potential customer is found using a series of attributes and similarities.

The information on the databases used by companies who use this sales method is obtained from previous and existing customers who have bought or shown interest in a particular product or service or similar.

Utility and mobile phone companies use direct mailing to previous customers offering new tariffs and packages. Sky use direct mail to mail previous customers new offers in an attempt to persuade them to return to the company.

Recently, British gas sent a direct mail to their existing customers with their bills offering to ‘fix their gas prices until 2011’. This makes the customer feel valued especially with the recent ‘credit crunch’. Customers feel that companies like British gas understand the situation and are trying their best to make prices affordable.

Using this sales method allows the customer to have a detailed message which can be referred to repetitively if necessary.

It is usually targeted at a market which is most likely to buy a product or use a service in order to keep ‘junk mailing’ to a minimum. This is why the information on the databases is
gathered from previous and existing customers or to reward customer loyalty. How the information is gathered allows companies to have a personalised approach to their direct mailings. Companies can also provide offers to customers according to their needs.

This selling method can also be cost effective as a standard letter can be sent to all customers but with the address changed with appropriate software. A pamphlet can also be sent along with the customer’s bill or letter.

Pamphlets or leaflets however, can be seen as junk mail and are often thrown away before they are read. This can be costly for the company as it costs them to have pamphlets printed.

Pamphlets and leaflets can look unattractive to the potential customer which can be harmful for the company’s image.

TV Selling

This is becoming an increasingly popular selling method by which companies sell products using television. This would usually be used for products which may not be available through shops or internet. Demonstrations are used on the television to convince viewers of the products advantages.

However, the company must consider if this is the correct method of selling according to the product they are selling. Timings of the presentations must be precise to ensure it is successful. For example, advertising products which will be used by children at midnight. It is unlikely the target audience will be awake at that time. Although they may not be the customer of the product, they could influence their parents or guardian to purchase the product through ‘pester power’.

QVC is an example of a company which uses television sales method. There are various goods being sold by representatives who show the product and its uses.

With a good presentation, people may become interested in the product and the company will have potential customers. Potential customers can easily communicate with friends and relatives who can also watch the presentation on the television instantly.

Television allows a wider audience to be reached in a short period of time. As television is an extremely popular means of entertainment. Therefore, a company can assume that there will be a decent number of people watching the television when their presentation is on.

However, time slots for presentations are limited and they are also very expensive, this could therefore be risky for the business as there is no guarantee that their presentation will be successful. Because of the limited time given for each presentation, the amount of information given could also suffer. Not as much information may be given as possible.

Radio Selling

Radio selling is a method of selling whereby customers can purchase a product by contacting the radio station. This means that the product will not be available in shops or on the internet. These will usually be products such as tickets for an event which is usually organised or sponsored by the radio station.

As products are not physically visual, there may be doubts over the validity of the products. Customers may therefore feel there is a risk of losing their money or not receiving the product as advertised. Any queries the customer may have concerning the product cannot be addressed immediately.

The length of the message is restricted and the amount of information given can be very limited. It may be difficult to give the customer all the information you wish to give in the advert as it may become too long and listeners may lose interest.

Internet Selling

Most businesses now have websites where customers can browse through the products sold by the company, and conveniently place orders directly from the internet and have the item delivered directly to their door or another address which is convenient for them.

Using the internet is efficient for both the customer and the company as products can be easily purchased and delivered without a representative of the company or customer coming in contact. The customer can also have their item delivered irrespective of their location. This makes it more convenient for the customer.

Customer enquiries can be responded to quickly. For this to happen, the company must have an employee in place to deal with enquiries as they come in or an FAQ system in place to deal with common questions. If this does not happen, it may be a while before customer enquiries are responded to.

Littlewoods is an example of a company which uses this sales method. With an online catalogue of products, a larger variety of products can be advertised and there is no need for show rooms or store space. Companies like this can operate in cheaper areas. This in effect allows the company to cut their costs and maximise their profit.

Payments can be received quickly, safely and effectively. As most payments made to companies which operate online are mad by credit or debit cards, companies like Littlewoods now have appropriate software in place to make payments safer. The customer then has more trust in the company.

Due to the lack of physical presence of the company or products, advertising and branding of the company and its products are extremely important to the success of the company. The company must therefore choose the correct method of advertising to ensure it is successful.

Internet fraud is becoming a big problem for many people in the country. For this reason customers may be sceptical about purchasing over the internet. They fear their details may get stolen whilst shopping online. Companies must guarantee their customer’s safety online or this problem will always arise.

Telesales

This is when a company makes sales, attempt to develop customer relationships using a telephone. Companies use this sales method as part of after sales service. ‘3’ is a company which uses this sales method. They usually ring potential customers offering good prices for their contract service, comparing their prices with other service providers.

It is a convenient sales method. Customers and members of staff of the company do not need to travel. It is also useful if the product is a specialist one which is only found in a few shops or outlets. Services like this are especially useful if the customer has mobility problems.

It is easy to set up as all equipment needed is telephone lines and trained sales staff. The business may also their already existing customer database to offer new or additional services that meet their needs based on their previous purchase or enquiry. This means costs for the company will be relatively lower than using other sales methods.

As there is direct communication, all queries can be addressed immediately. As customers do not need to leave their homes to make purchases, it makes it efficient for them.

People often see this sales method as an invasion of privacy. Once again because of the risk of fraud, customers are reluctant to give their personal details over the telephone.

Training staff to make calls and how to speak to customers and product knowledge may be expensive for the business. Staff turnover for companies which use this sales method as customers can often be rude.

This diagram demonstrates the relationship between manufacturers and consumers. This diagram also shows the number of intermediaries used in order to make sales. As shown, direct selling methods have no intermediaries. The product comes directly from the manufacturer to the consumer. This means the customer deals directly with the manufacturer. If there are any queries from the customer, it may be taken up directly with the manufacturer. This gives a consumer confidence to buy as they know that they are being dealt with directly by the manufacturer. Direct selling methods also cut costs for the manufacturer as there are no intermediaries to receive a cut. However, the manufacturer may not have the appropriate resources in place to target a sufficient proportion of the market to generate a great number of sales.

The diagram also shows the number and types of intermediaries a manufacture may use to reach their final consumer. There may be one or more intermediaries who will all receive a cut of the profits made by the manufacturer. This may be a negative in the point of view of the manufacturers; however, the use of intermediaries such as wholesalers and agents may boost sales as they may have the necessary avenues of targeting a larger portion of the market.

Indirect Selling Methods

Indirect selling is when a number of intermediaries are used to make sales. Intermediaries may also want to use other intermediaries to reach consumers to generate sales. There are different types of intermediaries which may be used by a manufacturer to reach their customers.

Wholesalers

A wholesaler is a person or company that sells goods wholesale is a middleman that buys its merchandise from a third party supplier and resells the merchandise to retail businesses or the end consumer. A wholesaler would not normally sell to other wholesalers.

Costco is a wholesaler which would be used as an intermediary by manufacturers to reach consumers. Their chain of wholesale cash-and-carry’s sells items in bulk to other businesses such as retailers for commercial use or for resale and they do not sell to individuals.

This image illustrates a typical Costco warehouse. Items must be purchased in bulk, making it a good way of buying for resale. Costco is an exclusive wholesale cash and carry membership warehouse club which is not open to the general public. Membership is required. Business owners/managers must provide evidence of trading to become a member.

This makes is a good intermediary for manufacturers as it is a way of rapidly boosting sales figures.

Goods will be sold at a slightly higher price that the manufacturers price. This is done in order for the company to make a profit.

Retailers

A Retailer buys goods or products in large quantities from manufacturers or importers, either directly or through a wholesaler, and then sells smaller quantities to the end-user. Retailers are at the end of the distribution chain. Retailers or retail is also divided into sub-sections:

Supermarkets

A supermarket is a self-service store offering a wide variety of food and household merchandise, organised into departments. It is larger in size and has a wider selection than an ordinary grocery store.

Supermarkets such as Tesco bring many advantages to both manufacturers and consumers. Manufacturers can guarantee sales as the products would have already been purchased from wholesalers or other intermediaries. All queries are handled by the supermarket rather than by them which makes it an efficient intermediary. For consumers, they will be able to purchase products in single units rather than buying in bulk from wholesalers. Supermarkets are also a reliable method or purchasing everyday products, as well as a variety of other items.

This image illustrates a typical Tesco supermarket. It is well organised to allow customers to select the products they want easily. A supermarket will also have a designated customer service area which will deal with any customer queries about a product. A manufacturer would not have to intercede, making supermarkets a reliable and efficient intermediary.

Department Stores

A department store is another retail establishment which specialises in satisfying a wide range of the consumer's personal needs. They also offer consumers a choice of merchandise from various manufacturers, at variable price points, in all product categories. Department stores usually sell products including apparel, furniture, appliances, electronics, and additionally select other lines of products such as paint, hardware, toiletries, cosmetics, photographic equipment, jewelery, toys, and sporting goods. Certain department stores are known as discount department stores. These are department stores usually have central customer checkout areas, generally in the front area of the store.

Department stores are part of a retail chain of many stores situated around a country or several countries.

John Lewis is a department store which sells a variety of products from different manufacturers. Their stores and website is divided into different departments which make is easy for a customer to find what they are looking for, according to the categories in the stores or online.

Multiple Stores

Multiple stores or chain stores are retail outlets that share a brand and central management, and usually have standardised business methods and practices. UK retailer Asda is part of the most successful chain stores in the world, Wal-Mart.

This image shows that Asda has a number or stores in the UK who all share the same business methods and principles. This includes selling the same products at the same prices.

For customers, this means they can find a product they are looking for at any Asda store in the UK, making it an efficient and reliable retailer. It is also a good intermediary for manufacturers as Asda, like other large retail companies is a trusted brand and customers will be more likely to purchase products from them rather than another source.

Consumer Cooperative

A consumers' cooperative is a cooperative business owned by its customers for their mutual benefit. It is a form of free enterprise that focuses on providing good service to its customers rather than gaining financial profit. It is a retail outlet owned and operated by consumers. The customers or consumers of the goods and/or services the business provides are often also the individuals who have provided the capital required to launch or purchase that enterprise.

In the UK, the consumer’s cooperative is simply known as ‘The co-operative’ or ‘the co-op’. It provides various products and services to its customers.

The Cooperative provides services such as health care, insurance, and housing as well as basic food and drink to its customers. The difference between consumers' cooperatives and other retailers is that the purpose of a consumers' cooperative association is to provide quality goods and services at the lowest cost to the consumer/owners rather than to sell goods and services at the highest price above cost that the consumer is willing to pay. In practice consumers' cooperatives price goods and services at competitive market rates.

For a manufacturer, this could be a good intermediary for generating higher sales as many customers will choose to purchase products at a lower rate. However, this will not necessarily mean they will generate higher profits as the sales made by consumer cooperatives are made at low prices.

For customers, a consumer cooperative is a good way of purchasing products that they would normally purchase from other retailers at lower prices. The group also invests in ethical activities which will make customers feel that their money is being put to good use rather than just securing profits for the company.

Agents

This is a businessman or business who buys or sells for a manufacturer or service provider in exchange for a commission.

Estate agent Thomas Cook is an example of an agent. Companies like this will take on full responsibility of advertising and making sales on behalf of another company such as Eurostar in exchange for a commission.

They advertise and encourage holiday makers to travel by Eurostar. They will then get commission on the amount of sales they make for Eurostar. This type of indirect selling could be beneficial for Eurostar as advertising responsibilities are perhaps reduced and they could therefore focus on other aspects of their business while generating sales. However,

Eurostar have their own website and they could use that as a possible advertising medium and a company such as Thomas Cook may see this as an easier way of increasing their profits.

Distributors and dealers

This is an individual or business which purchases and maintains an inventory of goods to be sold. This is seen most commonly in the car industry.

Dagenham motors is a car dealer which deals especially with Ford cars. They will make car sales on behalf of Ford which makes it an efficient method of reaching customers for Ford. They would then get their share of profits when sales are made.

Car dealers such as Dagenham Motors will usually have a collection of Ford cars on show in a show room which means customers can view a selection of cars which they can purchase. Customers can then make inspections of the cars at the dealership and any problems or queries will be dealt with by the dealership rather than the manufacturer. This saves time for the manufacturer who can therefore focus on other aspects of the business. However, Customers may want to deal directly with the manufacturer which means communication channels will be complicated.