Archive for 2018

Channel Strategies for Digital Consumers

Channel Strategies for Digital Consumers

The advancement of digital technologies, mobile devices, and social media has led to significant changes in the way consumers shop. “Once considered a newest trend, omni-channel retailing is now the standard, but direct selling is rarely discussed as a channel option in college classes,” says DSEF Fellow, Dr. Jay Ryu, Associate Professor of Interior Design and Fashion Merchandising at Texas Christian University (TCU). “What’s great about hosting direct selling executives in the classroom is they share their sales and marketing strategies with our students and broaden their awareness.”

DSEF’s “Channel Strategies for Digital Consumers” campus event at TCU featured executives from four direct selling companies – Essential Bodywear, Initial Outfitters, Jamberry and Youngevity. Speakers discussed integration of various online strategies to support the direct selling channel, including use of online parties, websites, mobile apps and social media with more than 320 students and faculty in 13 classes. The event concluded with a real-time interview of our speakers on Facebook Live.

“Direct selling is about empowering individuals to be your distribution channel,” says Brian Posalski, Director of Digital Marketing for Youngevity, “and to build brand awareness across as many consumer touch points as possible.” Companies provide an online platform and develop marketing campaigns that distributors use in their businesses. Integrating marketing communications provides a seamless branded experience, regardless of channel or device. It benefits a company’s salesforce and customers, but it can be challenging as well. “As a company, we have to keep up with the changing channels,” says Alicia Storbeck, President and Founder of Initial Outfitters. “Facebook marketing, Instagram marketing, Snapchat marketing – all are critical for a viable company.”

A corporate marketing department standing ready to support their independent salespeople with websites, social media and promotional campaigns is only one advantage of the direct selling experience. Low start-up costs and flexible work hours are other hallmarks. Research shows that how successful an independent salesperson becomes is strongly associated with the number of hours worked, (Join Stay Leave study). “Direct selling is really customizable,” says Elizabeth Thibaudeau, CEO of Jamberry, “you can work as little or as much as you want.”

Finally, the skills gained through the direct selling experience are often transferrable to other jobs. With entrepreneurship on the rise and corporate jobs declining, college graduates need to be competitive in the employment space. They need people skills to be successful. “In my experience, relationship-building is often what’s missing in most college programs,” says Carrie Charlick, CEO and Founder of Essential Bodywear. “Direct selling companies focus on personal training and development of their independent salesforce. We fill an important gap.”

Amway’s 2018 Global Entrepreneurship Report

Amway’s 2018 Global Entrepreneurship Report

Amway’s 2018 Global Entrepreneurship Report examines intrinsic and extrinsic factors that impact potential entrepreneurs. The data is based on survey data from nearly 50,000 people across 44 countries. Here are five of the most important findings to get a high-level overview of this year’s results (source: Amway).

  1. The global business environment has room to improve to be entrepreneurship-friendly.

Nearly 50,000 people were asked about different aspects of entrepreneurship, including technology availability, the education system, taxes, rules and regulations, and their country’s economic situation. As you might expect, there remains great opportunity to improve the global business environment. Unsurprisingly, people don’t find their country’s taxes manageable (only 33 percent do), nor do they think their country provides easy-to-understand rules and regulations (only 24 percent do).

  1. One of the most significant barriers to starting a business is the fear of failure.

It’s hard for people to start a business because they are afraid to fail. Less than half of people surveyed say they’d be willing to risk failure to start a business. Possibly, it’s because people see starting a business as a giant endeavor — a significant commitment. And it can be. However, there also are ways to start a business that are relatively low-cost and risk-free – direct selling is one of them.

  1. People need the most help raising money for their business idea.

When asked about different areas respondents would need help with when starting a business, raising money rose to the top, at 23 percent. In the traditional business scene, you’re investing a lot of your personal money, asking friends and family for support or pitching investors to finance your business. In direct selling, the average cost of a sales kit is just over $100 and includes a 90 percent buy-back guarantee.

  1. People prefer to build a team, rather than work alone.

When asked whether people prefer to work alone or hire people, the majority (57 percent) opted for building a team. In direct selling, you can create your own business – work independently or develop a team.

  1. Personal service still matters

In today’s digitally connected world, personal service is still significantly valued. The research found that 75 percent of people prefer to service customers personally than digitally. This trend remained consistent with even the under-35 demographic, countering the common perception that millennials prefer virtual interaction over interpersonal and indicating that personalized service is still highly valued around the world.

NCPW 2018

In celebration of National Consumer Protection Week’s 20th Anniversary, the Direct Selling Education Foundation (DSEF) asks anyone seeking to gain a deeper understanding of their rights as a consumer, so that they can make even better-informed decisions, to download the DSEF Consumer Protection 101 toolkit.

The toolkit – developed in concert with the Direct Selling Association – provides consumers with a one-stop-shop of information to help them avoid fraud and scams in the marketplace.

For more information, visit consumer.ftc.gov to learn more about National Consumer Protection Week 2018 and the Federal Trade Commission. #ConsumerProtection #NCPW2018

DSEF Consumer Protection Tookit 2018

DSEF Welcomes Its Newest Fellows

DSEF Welcomes Its Newest Fellows

DSEF’s academic partnerships serve to inform and educate students – highlighting direct selling as a go-to-market strategy and pathway to entrepreneurship and micro-entrepreneurship.

DSEF warmly welcomes our newest Fellows:

 

Dr. Can “John” Uslay
Associate Professor of Marketing
Director of Special Projects
Co-Director for the Center for Market Advantage
Chair, Entrepreneurial Marketing SIG, AMA
Rutgers Business School at Newark and New Brunswick
Rutgers University

 

 

 

 

Dr. Fabian Eggers
Associate Professor of Marketing and Entrepreneurship
Menlo College

 

 

 

 

 

 

Dr. Abdul Ali
Associate Professor of Marketing and Entrepreneurship
Faculty Director, Division of Marketing
Babson College

 

 

 

 

 

 

Dr. William “Bill” Johnson
Student Success Navigator
Life Design Catalyst Coach and Facilitator
Instructor and Coleman Fellow of Entrepreneurship
School of Health and Human Sciences
The University of North Carolina at Greensboro

 

 

 

 

Dr. Olivier Rubel
Associate Professor of Marketing,
Graduate School of Management
University of California – Davis

 

 

 

 

 

 

Dr. Dustin Bluhm
Assistant Professor of Management
College of Business
University of Colorado – Colorado Springs

 

 

 

 

 

 

Dr. Mark Peterson
Professor of Marketing
College of Business Department of Management & Marketing
University of Wyoming

 

 

 

 

 

 

Dr. Lisa Spiller
Distinguished Professor of Marketing
Joseph W. Luter, III School of Business
Christopher Newport University

 

 

 

 

 

 

Dr. Chris Hopkins
McLain Family Professor
Raymond J. Harbert College of Business
Auburn University

 

 

 

 

 

 

Dr. Karen Flaherty
William S. Spears Chair in Business Administration
Professor of Marketing
Spears School of Business
Oklahoma State University

 

 

 

 

 

Karen Hopkins
William S. Spears Chair in Business Administration
Professor of Marketing
Spears School of Business
Oklahoma State University

 

 

 

Dr. Theresa Clarke
Professor of Marketing
Wampler-Longacre Eminent Scholar
College of Business
James Madison University

 

 

 

 

 

Dr. Rajesh Srivastava
Associate Professor of Marketing
Jennings A. Jones College of Business
Middle Tennessee State University

 

 

 

 

 

 

Dr. Bo Dai
Assistant Professor of Marketing
College of Business
Georgia Southern University

 

 

 

 

 

 

Dr. Lori  Long
Baldwin Wallace University
Associate Professor
Chair, Marketing and Entrepreneurship

 

 

 

 

 

 

Dr. Chen Liu
Assistant Professor of Finance
Assistant Professor of Business
Trinity Western University

 

 

 

 

 

 

Dr. Nathalie Duval-Couetil
Associate Professor of Technology Leadership, and Innovation
Director for Certificate in Entrepreneurship and Innovation Program
Associate Director, Burton D. Morgan Center for Entrepreneurship
Purdue University

 

 

 

 

Dr. Sara Cochran
Entrepreneurial Programs Manager  for the University of Missouri System
University of Missouri

 

 

 

 

 

 

 

Dr. Adam Bock
Lecturer in Management
University of Wisconsin-Madison

 

 

 

 

 

 

 

Dr. Art Sherwood
David Cole Professor of Entrepreneurship
Director of the IDEA Institute
Western Washington University

 

 

 

 

 

 

Ms. Joanne Cao
Assistant Professor of Marketing
The University of Southern Mississippi

 

 

 

   

 

Dr. Mark T. Schenkel
Jack C. Massey College of Business
Associate Professor of Entrepreneurship
Belmont University

Winners of the DSEF-Sponsored USASBE-MWE SIG Best Paper Awards

Winners of the DSEF-Sponsored USASBE-MWE SIG Best Paper Awards

DSEF, in partnership with the U.S. Association for Small Business and Entrepreneurship’s (USASBE’s) Minority and Women Entrepreneurship Special Interest Group (SIG), sponsored a paper competition on the direct selling channel of distribution and micro-entrepreneurship opportunity.

One of DSEF’s key priorities is to fund and develop research and case studies that advance understanding of the direct selling channel. We achieve this goal through our partnerships with Fellows and academic organizations and are gratified that seven out the eight authors of these winning papers are DSEF Fellows.

It is with great honor that we announce the 2018 winners of the DSEF/MWE SIG Best Paper Awards:You can view these working papers through the links below:

BEST EMPIRICAL PAPER

Direct Selling in South Africa: Empowering Women Entrepreneurs

*Dr. Victoria L. Crittenden, Babson College

*Dr. William Crittenden, Northeastern University

*Dr. Haya Ajjan, Elon University

BEST CONCEPTUAL PAPER

Entrepreneurial Environment and Culture in Direct Selling Entry Decisions Of Hispanic Entrepreneurs: An Acculturation Approach

*Dr. SherRhonda R. Gibbs, The University of Southern Mississippi

*Dr. Caroline Glackin, Fayetteville State University

BEST TEACHING CASE

Traci Lynn Jewelry: Maximizing Shining Opportunities

*Dr. Caroline Glackin, Fayetteville State University

BEST DEVELOPMENTAL PAPER

Exploring the Entrepreneurship Ecosystem of Marginalized Direct Sellers: Needs of Military Spouses

*Dr. Tracey Mays, Minot State University

*Dr. Art Sherwood, Western Washington University

Dr. Lyzona Marshall, Seton Hill University

*DSEF Fellow

Incorporating Direct Selling in the Classroom by Dr. Victoria Crittenden

Direct Selling by Crittenden
Incorporating Direct Selling in the Classroom by Dr. Victoria Crittenden

Direct Selling in the Classroom by Dr. Victoria Crittenden:

To me, there is nothing quite so great as leaving class on a high because students really seemed to engage with the class topic. I had such a euphoric feeling after leaving my Marketing Management class in the Master of Science in Entrepreneurial Leadership program at Babson College in mid-September. The topic for the day was “Go-to-Market Strategies.”

The students were to read the Harvard Business School note. “A Note on Direct Selling in Developing Economies,” and prepare the Harvard Business School case, “Designs by Kate: The Power of Direct Sales,” prior to class. I then started class with two DSEF videos: “Micro-entrepreneurship and the Gig Economy” and “Cutting out the Middle Man.”

With approximately three-fourths of the students in this master’s program from outside of the USA, there was considerable interest in the direct selling business model as a go-to-market strategy. Several students remained after the class ended to discuss the pros and cons of direct selling as a go-to-market strategy and how the direct selling business model might be implemented in entrepreneurial endeavors in various parts of the world.

I left class wishing that I had planned in advance for a way to capture the amazing classroom interactions. Since I had not done that. however, I emailed students and asked them to contribute some thoughts that I could include in a blog post. Here are comments from two students (one from each section of the class):

Nomah Javed (MSEL ’18) said: “I feel direct selling is an amazing way to reach your end customer down to the grass roots level. Especially for burgeoning entrepreneurs who don’t have seed money to set up this network on their own or reach customers. Again, it would work best for smaller, fast-moving goods which would benefit from the interpersonal interaction and persuasion involved in the process of direct selling. I think it’s a tremendous resource for third world countries, where women are the more subjugated gender and don’t necessarily have access to the same education and job opportunities. I feel direct selling gives people a chance to create something of their own despite their limiting circumstances. It can be used as an amazing empowerment tool for women. I would definitely think of it as a very strong proponent business model for my future venture.”

Philip Cobbinah (MSEL ’18) offered these comments: (1) Partnering with consumers is the best way of becoming a household name (#cobbyquotes).  (2) It is entrepreneurship at your doorstep (#cobbyquotes).

Given that I taught two sections of the course and both sections were equally great. I think it is fair to say that the topic was well-received by all. The discussions were clearly the best I had with my MSEL students during our seven-week module on marketing management. I found that direct selling as a go-to-market strategy incites interest and engagement among students who have an entrepreneurial orientation and that this is particularly true in a cross-cultural classroom environment.