Direct Selling : A Multinational Strategy
by Martin L. Schwartz(1992)
直销通路管理报告
指导教授﹕陈得发教授
学生:王昭雄
学号﹕8941812
中华民国九十一年三月二十七日
•Summary
This paper provides a method of identifying
international markets for which new products
marked via direct selling may be commercially
successful.
Results of the study indicate that consumer
wealth, urbanization and literacy may be used
as lead indicators of new product, direct selling
success.
It is recommended that multinational firms
consider the use of a direct selling strategy
when launching products into developing
markets, and the use of an instore strategy
when launching products into mature markets.
•Introduction
This paper evaluates the use of direct selling as a
marketing distribution strategy decision.
It is not intended to provide a comprehensive
analysis of the entire distribution system.
The question which this paper attempts to
answer is, “To what extent to the socioeconomic
characteristics of alternative to in-store sales ?”
The model used is:
Success of Direct Selling Launch =
f(National Socioeconomic Characteristics)
•Background
Both Euromonitor(1986) suggested and theoretically
justified using various socioeconomic characteristics to
explain the success of direct selling in the marketing of
products cross culturally.
In developing countries, direct selling may be filling
distribution gaps which economists believe may act as
barriers to economic development.
Weber (1983) suggested that the industry market
potential for each product product line is in part a
function of the distribution gap which a firm faces in
each country.
The research provided in this paper is designed to
identify the specific socio-economic characteristics
which best explain the direct selling success.
•Research Methodology
Cosmetics and fragrances are the products used in this study.
Sample Selection
The sample consisted of 32 countries, of which approximately
twelve were mature, seven were newly industrialized and
thirteen were developing .
Dependent Variable Selection
Total Industry Sales From Direct Selling
POM=---------------------------------------------------------------------Total Industry Sales (Direct Selling + Instore + Direct Mktg)
Independent Variables
It Selected in meetings with Avon products international region
management personnel.
These data were then screened by two tests.
(1) .The characteristics had to be either theoretically or logically
justifiable.
(2) .The characteristics had to be obtainable through exiting
data bases.
Statistical Method Selection: Bivariate regression, correlation
analyses, factors analyses.
•Analysis and Results
In table 1.
The result indicate a 95% or greater probability that POM
obtained from the direct selling of products is directly
related to food as a percent of household income and the
extent to which income distribution is skewed.
It is inversely related to age, number of TV’s per capita,
literacy rate, private consumption income per capita, and
percent of population living in urban areas.
•Analysis Result
•Analysis Result
•Analysis Result
•Discussion
Nations with the largest market gaps ,less developed
nations such as Nigeria, Thailand and Philippines ,
provide the greatest potential POM for the direct
selling of new products.
Firm interested in marketing products in foreign
markets should evaluate the consumer wealth of those
markets prior to deciding on a distribution method or
on product features.
The products features for direct selling:
(1). The product has a high personal selling
elasticity.
Ex. Life insurance, magazine subscriptions.
(2).The product is part of the home and benefit from
the use of a demonstration in the home.
Ex. Burglar alarms, water purification devices.
•Discussion
The products features for direct selling:
(3). The product is one which benefits from
demonstration, but is not part of the home.
Ex. Towels, clothing, and food.
(4).The product is one which requires a private
discussion.
Ex. Prearranged funerals, financial planning.
(5). The products benefits from reference group
interaction.
Ex. jewelry, kitchen gadgets.
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