methods of direct selling

Question 1

describe E-commerce

Answer 1

a business sells its products using the internet (eg ASOS)

Question 2

describe mail order

Answer 2

a business sells its products using a catalogue which is usually sent directly to the customer

Question 3

describe direct mail

Answer 3

a business posts letters, leaflets and brochures directly to the customer

Question 4

describe personal selling

Answer 4

a salesperson sells products directly to the customer, often by going ‘door to door’ or over the phone

Question 5

describe shopping channels

Answer 5

a business sells products on the TV using dedicated shopping channels (eg. QVC)

Question 6

adv and disadv of e-commerce

Answer 6

adv
-customers in the global market can be reached 24/7
-online discounts can be offered to attract customers

dis
-it can take a lot of time and expense to design attractive, high-quality websites
-customers need to have access to the internet

Question 7

adv and disadv of mail order

Answer 7

adv
-customers can browse for products and place orders from home, at a time that suits them
-mail-order-only companies save money on staffing and store costs

dis
-glossy catalogues can be expensive to produce
-a level of bad debt might be incurred

Question 8

adv and disadv of direct mail

Answer 8

adv
-specific market segments can be targeted
-wide geographical area can be targeted by placing leaflets inside newspapers and magazines

dis
-customers can perceive this as ‘junk mail’ and simply throw it away
-customer mailing lists can quickly become out of date, meaning a business may target the wrong person and waste money

Question 9

adv and disadv of personal selling

Answer 9

adv
-allows a demonstration or explanation of the product to be given
-feedback on products can be gathered from customers

dis
-customers can find this type of selling a nuisance and may not be keen to listen
-staffing costs and commission make this method expensive and increasingly unpopular with business

Question 10

adv and disadv of shopping channels

Answer 10

adv
-customers can see products being modelled and demonstrated
-customers can be encouraged to buy on impulse due to short term bargain prices

dis
-customers need to switch on to the channel before they can be targeted
-customers need to wait for products to arrive and may have to pay delivery costs