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Direct selling as a type of non‐store retailing continues to increase internationally and in Australia in its use and popularity. One non‐store retailing method, multilevel marketing or network marketing, has recently incurred a degree of consumer suspicion and negative perceptions. A study was developed to investigate consumer perceptions and concerns in New South Wales and Victoria. Consumers were surveyed to determine their perception of direct selling and its relationship to consumer purchasing decisions. Responses indicate consumers had a negative perception towards network marketing, while holding a low positive view of direct selling. There appears to be no influence of network marketing on consumer purchase decisions.

Marketing; direct sales and networking in marketing.

Undergraduate marketing students.

What are the main problems faced by direct sellers in Mexico within a selling context based on social networking? This case has the objective to approach the difficulties direct sellers face in their operations in order to address potential bottlenecks inhibiting the flow of sales. In the present case, direct sellers expressed openly their personal views about the issues they generally had to deal with in order to survive in a highly competitive market, namely the market of cosmetic and beauty products. The decision of whether to implement changes to improve the flow of sells through the network created by direct sellers would eventually affect direct sellers performance given that they are the final appendix of the selling chain. This case helps to develop a direct seller typology for direct selling success. Accordingly, it highlights the importance of every element participating in a business. Summarizing, it strategically links direct sellers performance with the overall business performance.

The case contributes to the analysis of personality attributes of sellers and the elements affecting market penetration of cosmetic and beauty products. It is also interesting to observe how some foreign brands have become iconic in the local direct selling businesses. This case also contributes to developing tactical competition to strategic planning of marketing of direct selling in emerging markets. Particular learning objectives are as follows: analyse marketing planning from a perspective of decentralization and growth and explore creative possibilities for sustainable growth of this kind of business; stimulate strategic thinking concerning system operation and free bottle necks of selling channels by analysing the effect of system subordination of operations and training to upper levels of vendors; analyse the brand expansion process and loyalty development of customers in a competitive market of products that are sold in network.

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With the development of e-commerce and mobile payment, platform sales become unstoppable, and many manufacturers also encroach on online market by establishing direct selling channels. Channel conflict intensifies in online market and quality differentiation and is widely used in business practice as an effective way to alleviate such a competition. The authors study a retail platform's sales strategy and interactions with an upstream manufacturer's encroachment strategy in this paper. Unlike most online marketplace and encroachment research, product quality selection is also engaged in the present research to capture the motivation above.

The authors analyze a game-theoretical model that the platform as the first/second mover participates in strategic decision-making, and then jointly decides the product quality level with manufacturer.

The authors find that encroachment always profits the manufacturer and almost hurts the platform. Interestingly, the first-mover advantage can help the platform guide the manufacturer encroachment and promote a “win–win” situation when product quality level is relatively slight or obvious. Nevertheless, the second-mover advantage can help the platform alleviate the profit loss caused by encroachment when product quality level is moderate. Furthermore, suffered from encroachment loss, the platform can make a credible threat by sales termination to restrain manufacturer encroachment.

This paper innovatively explores the strategic interaction between manufacturer encroachment and quality differentiation in a platform supply chain, and further analyzes the first-mover advantage in this interaction, which fills the gaps of previous platform research and has great significances to enterprise production and operational decision in business practice.

The central issue in the case is opportunity identification and decision making. While the literature on direct selling is limited, much has been written about ideation, effectuation, causality and opportunity identification and assessment. Scholars of entrepreneurship debate whether entrepreneurial opportunities are identified and assessed primarily through effectuation or causation.

This case is based upon a combination of interviews with the protagonist, her staff and secondary research.

This case explores the opportunity identification, assessment and decision making of an energetic, African American, female founder and CEO in the rarely-researched direct selling channel. Dr Traci Lynn Burton founded her company at 24 with an investment of $200. In 2008, in its second incarnation, Traci Lynn Jewelry became a direct selling company and has taken bold steps. By 2018, the company was a direct selling leader and was preparing to launch a new product line. The case supports undergraduate students in understanding effectuation and causation, opportunity identification and assessment, and direct selling.

This case is primarily for upper division undergraduates. It is suitable for courses in entrepreneurial strategy, entrepreneurial marketing, general entrepreneurship emphasizing opportunity identification, opportunity assessment and/or effectuation.

Faced with declining market share and sales, Natura, Brazil’s second-largest brand in the cosmetics, fragrances, and toiletries market, expanded its customer reach by moving from a direct-sales company to a multichannel company. In 2014, Natura added online catalogs, physical stores, and drugstores to its well-established direct-selling model, but the results were disappointing. Between 2014 and 2016, three different Natura CEOs attempted to lead the company in the strategic transition to focus less on the direct sales consultants and more on reaching the end consumers directly with multiple channels and touchpoints. In October 2016, the company’s board appointed its former commercial vice president, João Paulo Ferreira, as the most recent CEO. Ferreira’s challenge was to find the right balance between the direct-selling and other channel formats to market Natura, thus enabling it to thrive in the face of intense competition in the beauty and personal care market in Brazil.

Previous studies have rarely integrated the financing modes of a capital-constrained manufacturer with the choices of online sales strategies. To address this gap, the authors study how a manufacturer selects optimal financing modes under different sales strategies in three dual-channel supply chains.

This paper considers three sales strategies, namely, combining a traditional retailer channel with one of the direct selling, reselling and agency selling channels, and two common financing modes, namely, bank financing and retailer financing. The authors obtain equilibrium outcomes of the manufacturer and traditional retailer and then provide the conditions for them to select optimal financing modes under three sales strategies.

The results indicate that the manufacturer’s financing decisions rely on the initial capital and interest rates, and the manufacturer selects retailer financing only if the initial capital is relatively larger. In terms of financing mode options, the retailer financing mode is more beneficial for the manufacturer under the three sales strategies. From the perspective of sales strategies, the direct selling model is more beneficial. In addition, the higher the consumer acceptance of the online channel, the more profits the manufacturer obtains.

This paper provides suggestions on how the capital-constrained manufacturer chooses financing modes and sales strategies.

This paper integrates the financing mode and different sales strategies to investigate the manufacturer’s optimal operational decisions. These sales strategies allow us to investigate the manufacturer’s optimal financing modes in the presence of both different financing modes and sales strategies.

The paper's objective is to investigate the relation between direct and indirect marketing channels applied by French wine producers, and to identify the elements that can enhance the success of direct distribution methods.

Secondary data collected though a questionnaire survey, and published in a study of Viniflhor was analysed in order to identify the distribution channels used by French wine producers. In the second part of the study, primary qualitative data obtained through face‐to‐face interviews with 17 wine producers was used to explore their direct marketing approach.

The findings indicated that French wine producers use a large variety of both direct and indirect marketing channels, although the importance of these distribution methods varies with the size of the producer (defined in terms of vineyard area and wine production). An integrated distribution strategy is applied by more than a half of the respondents. Although the strategic planning process is applied informally and intuitively, a series of innovative elements are combined in order to enhance the value of the product offer and to develop long‐term relationships with satisfied customers.

The low response rate obtained in the application of data collection methods raises questions regarding the possibility to generalize the findings to the entire population of study.

The paper applies a three layer analysis to the situation of the French wine producers from various regions, creatively combining focused investigation with an integrative perspective.

The purpose of this paper is to offer an assessment of the international direct marketing environment.

This paper uses political, economic, social, and technological (PEST) analysis to investigate the business environment of international direct marketing. This framework is commonly used as a way of assessing the context of international marketing.

Globalization, technological innovation, and the spread of free‐market governance have created new and interesting opportunities for managers who decide to use direct marketing to sell their products overseas.

For managers considering international direct marketing, a careful assessment of market prospects and a thoughtful evaluation of the PEST environment should maximize potential opportunities while minimizing the risks associated with foreign markets.

This paper provides an overview of the international direct marketing environment and can, therefore, be used by practioners in their efforts to shapes direct marketing strategy.

Mary Kay is one of the best-known direct sellers of women's cosmetics in the world. Its channel strategy is to use independent beauty consultants, who are independent distributors, to sell directly to consumers. Its compensation plan is multilevel, providing commissions to distributors on their own sales as well as the sales of the distributors they recruit. At the time of the case, the company is grappling with a well-established change in consumer behavior—the decline of the stay-at-home mom as she returns to the workforce—combined with the opportunities offered by Internet selling. Focuses on the company's efforts to move with consumer demand and behavior, while remaining true to its core goal of “Improving Women's Lives.” Discusses ways Internet technology can be used throughout the company's channel and supply chain structure, not just as a route to market.