Direct sales are the form of sales in which products are sold in the name and on account of the producer. A direct relationship is created between manufacturer and customer.
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Organization of direct sales
Organizational forms of direct sales are field service, online shops, shops or telephone sales. Today, direct selling is mostly used as part of a multi-channel strategy. Classic direct sales with sales representatives are particularly widespread for products and services with a high need for advice.
Benefits of direct selling
With this type of sale, the company has complete control over the sale of its own products and pricing. A very important factor and advantage over that indirect sales is the direct contact with the customer. The sales staff know "their" customers, their requirements, buying habits and usage behavior. This data can be used profitably in product design.
Customer loyalty is greater than, for example, with sales through trading companies. The effects of advertising measures or price changes can also be controlled directly.
Disadvantages of direct selling
The costs of direct sales are the highest compared to other forms of sales, since the salespeople are their own employees and the entire logistics and marketing have to be organized internally. Mass distribution is difficult this way.
The pure direct sale of technical devices over the Internet can be very successful, as the example of the computer company Dell shows.