Commercial Applications
Answer
Direct Selling — Direct selling means the producer directly sells goods to ultimate consumers, and there is no middleman or intermediary involved between the producer and the consumer.
Two methods of direct selling:
- Door-to-Door Salespersons — Under this method, the producer employs a sales force who approach customers at their residences or offices, book orders and deliver the goods. For example, Eureka Forbes Ltd. has been selling its 'Aquaguard' brand of water purifiers and vacuum cleaners through this method.
- Catalogue Selling — In this method, the seller mails one or more product catalogues to selected persons who are likely to place an order. The prospective customers read the catalogues and send orders by mail, telephone or fax. The producer delivers the products through Value Payable Post (VPP) or courier. For example, Avon sells cosmetics through this method.
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Evergreen Cosmetics is planning to launch a new range of 'anti-wrinkle creams' in the Indian market. They conducted a market survey and found potential competition from Remain Young. Since they are targeting the higher strata of society, the cream is being priced much higher than their competitors. They plan to use the television as a media to advertise this anti-wrinkle cream as opposed to print media which is largely used by them for their other products. Officials at Evergreen Cosmetics feel that with the correct style of promotion they could easily be successful in the market.
(a) Identify and explain the pricing strategy that is being used by Evergreen Cosmetics.
(b) Describe any two qualities that a salesman selling this product should possess.
(c) Explain any two tools of sales promotion that can be used here.