Chapter 4 - 2

02 business

Listen to a lecture in a business class. Fill in the diagram with the information that you hear.

W: Today, I’d like to talk about a sales model known as “direct selling”. So let’s start right off with a definition, shall we? Direct selling is just like it sounds: direct. As in, um, directly to the customer, a sale made directly to the consumer.

You all know that products are typically sold in stores or um, well, over the Internet these days. In direct sales, the customer doesn’t necessarily have to even enter a store at all.

Direct sales is a way of selling a product directly to the customer without using a shop or an agent. For example, a knife manufacturer may sell its knives directly to the consumer… without using a store, for instance.

There are a number of different methods a company can use to sell directly to the public. And um, let’s go over those now. The first one here, I’m sure you’re all quite aware of: a lot of direct sales are made through telephone calls to consumers.

They’re those annoying phone calls you always get during dinner. You know, the kind that gives you a long explanation of why their product is so good, and how low the price is.

Usually, they start out with some kind of question. The question that is phrased in such a way that most people will keep listening, thus, uh, thus giving the seller a chance to make the sale.

That’s one method of direct selling. Another important way to sell directly is through the use of seminars. Have you ever gotten a letter in the mail saying that you’ll get a free gift if you come to some presentation about something?

You’re curious so you go right? Who wouldn’t want a free gift? Then you go to the presentation and find out that they just wanted to get you there to sell you something?

Ugh! That’s the seminar approach. Quite often, these are seen in the form of money-making seminars.

The seminar might be on oh, let’s see… how to make money in real estate, how to make money in the stock market, and so on. You get a free gift for showing up, but of course at the end of the seminar, a sales pitch is made.

Usually, they want to sell you books or tapes that offer more in-depth information on what was presented in the seminar.

And last but certainly not least, we have demonstrations. Salespeople love to use demonstrations. A demonstration, sometimes called a product demonstration, is when a salesperson actually shows you how to use the product.

It’s a great way to attract buyers, and well, frankly, I think they’re kind of fun. You see these all the time at fairs and exhibitions. I often take a seat and enjoy them myself at such events.

They’re not typically very formal, and during them, the salesperson can not only describe the product’s benefits, but can also show the potential customer how to use the products.

1) What is the professor’s opinion of direct sales phone calls?

2) What is the professor’s attitude when he says this:

Have you ever gotten a letter in the mail saying that you’ll get a free gift if you come to some presentation about something?

You’re curious so you go right? Who wouldn’t want a free gift? Then you go to the presentation and find out that they just wanted to get you there to sell you something? Ugh!

3) Which of the following best reflects the professor’s attitude toward product demonstrations?