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Personal Selling Process: Direct Selling of the Mary Kay® Lip ProtectorLearning Objectives. To have students engage in a segment of the personal selling process known as direct selling to illustrate
Personal Selling Process: Direct Selling of the Mary Kay® Lip ProtectorLearning Objectives. To have students engage in a segment of the personal selling process known as direct selling to illustrate one kind of sales job many of them can consider while in college or after graduation.Nature of the Activity. To have students participate in the direct (personal) selling process for one of Mary Kay’s products.Marketing Lessons. Marketers use the direct (personal) selling process to develop satisfied, long-term customer relationships. When executed properly, it leads to satisfied customers who may generate additional sales through increased sales and referrals, which leads to the first stage of the process. Also, in the case of Mary Kay, some customers may become interested in being an Independent Beauty Consultant.According to the Direct Selling Association (DSA), ‘Direct selling is the sale of a consumer product or service, person-to-person, away from a fixed retail location, and marketed through independent sales representatives.’ Direct selling is a subset of direct marketing: the former involves face-to-face interpersonal relationships whereas the latter involves more impersonal contact via telephone, catalogs, and direct mail. The DSA estimates that direct sales reached almost $31.6 billion in the U.S. in 2012. Consumers can buy many products through direct selling. In fact, about 75 percent of consumers have purchased offerings through direct selling.With direct selling, consumers can: See the product demonstrated or try it before they buy it. Ask more in-depth questions about the offering. Receive more personalized attention given by the direct sales representative. Appreciate the convenience of in-home or in-office shopping instead of going to a retail outlet. Enjoy the social aspect of shopping with friends in a more intimate setting.You may be familiar with notable direct sellers Mary Kay, Tupperware, Avon, Fuller Brush, Pampered Chef, Cutco, etc. The most popular direct selling methods that these and other direct sellers use to reach their customers include door-to-door, hosting parties or shows, and appointments at the home or office. A distinction must be made between direct selling and multi-level marketing. Direct selling is a distribution method whereas multi-level marketing is a type of compensation plan within direct selling. Firms like Mary Kay use a “single-level” compensation plan, where representatives get paid a commission or bonus based solely on the products or services they sell. In contrast, firms like Amway use a multi-level compensation plan, where representatives make money not only by selling products and services but also by receiving commissions and bonuses based on the offerings sold by representatives they themselves have recruited.In 1963, Mary Kay Ash founded Mary Kay Cosmetics in Dallas, TX with $5,000 in savings. Today, Mary Kay is one of the largest direct selling firms in the world, selling its 200-plus skin care, make-up, body, fragrance, and sun care products worldwide. In 2013, Mary Kay generated sales of $3 billion from 3 million Independent Beauty Consultants globally. About 1,500 independent salesforce members have earned the right to drive a Mary Kay Pink Cadillac! Mary Kay Independent Beauty Consultants come from all gender, age, ethnic/race, and income groups. They want to sell Mary Kay products to: (1) supplement their incomes, (2) buy the products they sell at a discount, (3) meet others in business and social settings, and (4) be recognized for achieving success. As the video indicates, Mary Kay Independent Beauty Consultants one must have the following are key characteristics to be successful: Has an entrepreneurial spirit. Enjoys working with people. Likes a less structured working environment and the ability to set one’s own hours. Wants to earn supplemental income without making a large initial investment. Is excited about the possibility of earning an unlimited income. This can be a motivating factor given the current economic environment.Besides the great products and interpersonal relationships, the Mary Kay salesforce is motivated by what Mary Kay herself called the “Cinderella Gifts.” Chief among these is the Pink Cadillac—the symbol of the successful Mary Kay salesperson! The “Mary Kay Video” on Mary Kay’s YouTube channel (http://www.youtube.com/watch?v=9UKgqwCMfFE). Mary Kay Lip Protector Sunscreen SPF 15. This little stick applicator contains a lot of protection. Exclusively formulated with beneficial moisturizers and antioxidants, Mary Kay Lip Protector Sunscreen SPF 15 helps keep lips protected and guarded from the drying effects of sun and wind. It glides on for invisible protection and helps seal in moisture so lips feel soft. It can be used alone or under lipstick or lip gloss. And it’s waterproof. The MSRP is $7.50 for the 0.16 ounce applicator. Mary Kay Lip Protector SPF 15 website (http://www.marykay.com/lipprotector).Deliverables for AssignmentYou are a Mary Kay Independent Beauty Consultant. The sales setting is a house party that you arranged to demonstrate and sell Mary Kay products such as the Mary Kay Lip Protector Sunscreen SPF 15. You invited six women into your home as prospective customers. Part I. Complete the Mary Kay Direct (Personal) Selling Process Handout. You must: Identify the needs or wants of their prospective customers that Mary Kay Lip Protector SPF 15 product can fulfill. Develop suggestions on how to accomplish the assigned direct (personal) selling process sales objective.
