The role of direct sales during economic downturn in Poland (based on the example of Computer - Assisted Legal Research Systems)

Abstract

Direct sales understood in the broad sense of the word as product presentation coupled with the offer to sell made by one person to another, has been known in the world for millennia. For the purpose of this study a narrower meaning of the term “direct sales” was adopted. Namely, a representative of one company (manufacturer) usually makes a presentation of a product in another company’s headquarters (B2B - Business to Business). This type of distribution of goods and services appeared in Poland on a large scale at the time of political and economic transformation of 1989. The dominant role of own network of sales representatives is primarily due to complex functionality of the product and the related necessity of direct presentation at the client’s, aimed at presenting the product itself along with benefits associated with its use. To be able to do so, a sales representative must act as a consultant. Therefore, in addition to typical business skills they should have adequate knowledge of the discipline the product represents. Another important factor that determines the sales process is the price of goods or services. The more expensive the product, the harder it is to sell without personal contact with a potential customer. The effectiveness of direct sales is its greatest advantage. Properly trained consultants have a personal contact with the customer and the ability of direct persuasion and negotiation which significantly increases the chances of selling. The purpose of this paper is to present the role a direct sales process may play in a challenging market environment, in particular in the situation of decreasing willingness of potential customers to buy.