The party host uses his or her reputation and knowledge of the product to promote it sales among invited guests thereby stimulating impulse buying.

The party plan sales allow for a variety of products to be displayed, demonstrated and promoted by word-of-mouth. This also gives room for questions and personal testimonial by the hostess and the companys sales representatives present at the party. This plan combines party fun in-home parties, togetherness and bonding. Existing users are given a discount on purchases and are motivated to invite other guests to the next party or sponsor a home party or new sales representatives.

If effectively done the party plan can give birth to a party plan group (PPG) from which hostesses can be recruited from and the sales party taken to various homes and location with the intention of driving more sales and recruiting more end-users of the products. Today, party plan parties are conducted virtually with varieties of products.

THE ADVANTAGES OF PARTY PLAN SELLING MODEL

1. Easy to start as it relies on people lifestyle and to a large extent fun driven
2. Host or hostess are motivated by gift, cash or credit for future purchases
3. Success stories recorded by leading companies known for using party plan and these will include Discovery Toys, Tupperware, Home Interiors, JAFRA Cosmetics and others
4. It encourages mentoring and coaching for new recruits, consultants, and sales representatives
5. It is a business type that can be done without many headaches considering that fact that social events are common in our society and such events usually draw huge attendance.

DISADVANTAGES OF THE PARTY PLAN MODEL

1. Impulsive buying and pressuring guests to buy the demonstrated products is sometimes considered inappropriate
2. Quality of the merchandisers are sometimes suspects
Like every other business, a thorough investigation is required and a good relationship must be established with the company beyond the purse party host and the consultants.

HYBRID DIRECT SALES AND MARKETING MODEL

Direct sales companies are constantly adopting methods and technology at ensuring that all classes of people are dragged in by their nets. The use of technology is structured to effectively manage the compensation plans, support auto-shipment, reward individuals effort and at the same time promotes networking in such a way that both party plan and multilevel systems are combined.
The hybrid system takes care of those who are interested in products and as well those who wanted both the products and the business opportunity that it offers through networking. In the words of Belinda Ellsworth, the hybrid direct sales model is a combination, in both pay structure and business practices, of network marketing and party plan,
The hybrid direct sales model offers a more acceptable business plan that cut across demography and allays their fears of many. It brings the best of SLM, Party Plan, and MLM. This is the trend now and should be embraced by direct selling companies.
The need to expand coverage, reduce cost and provide an opportunity for the new generation of young people who are better with technology and the telemarketing systems are some of the major reasons why a hybrid system should be taken more seriously. For example, trading in forex, gold and digital currency follows the hybrid marketing system and it is gaining much ground in formally traditional societies and accepted by a vast majority of the people that still want their privacy to be maintained while trading online.

ADVANTAGES OF THE HYBRID MARKETING SYSTEM

1. It uses multi-channel or a hybrid distribution system. Modern day direct sales organizations are determined to compete effectively and that win more customers using different distribution channels that were hitherto the reserves of the conventional marketing organization. Unlike traditional direct sales organizations which sell and compensates distributors using the single system, the hybrid organization now adopt matrix payment and a combination of binary and hybrid system.

2. It enables organizations in the direct sales business reach a wider market. Beyond word-of-mouth, door€“to-door, purse party plan etc multilevel marketing companies now use online facilities, Telemarketing, low-cost communication system. Today, network marketers can recruitment downlines in far away countries and get paid in their local currencies i.e., OrganoGold Nigeria was built by ambassadors in Jamaica, Alliance In Motion Global Nigeria was develop by Alliance In Motion Global Philippines, Syntek Global USA pioneered Syntek Global Nigeria.

3. It widens the demography and dragnets for more people to be brought into the direct sales business. Today, people open a business account, children account and sometimes an entire family are engaged in network marketing because of the hybrid system that is both convenient for the older generations as well as the new generation.

DISADVANTAGES OF THE HYBRID MODEL

1. Channel Conflict. Adopting multiple channels can sometimes be problematic if not well coordinated; we have instances of delay delivery of products and breakdown in the system thereby making auto-shipment of order product impossible.

2. Lack of Control. The hybrid direct sales models is a combination of both party plan and multilevel marketing system, hence the likelihood of slackness in control may be prevalent since members are given some level of freedom in their operation.

3. Likely compromise in product quality. Although modern direct sales companies are constantly refining their production system, still, the tendency for laxity is to be considered since product are delivered from multiple distribution centers.

4. System failure. Because the hybrid model relies so much on technology the likelihood of system failure is a probability especially when it comes to compensation which is so diverse and tempting.

NETWORK OR MULTILEVEL MARKETING MODEL

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• How do we ensure that our products are sold on a regular basis?
• What can we do to ensure that our marketing and sales team performs to their optimal level and capacity?

• How can we ensure a higher rate of product turnover and save ourselves the cost of inventory?

These and many questions bother business owners and sales people.
I will attempt to answer all these questions in this article by looking at strategies adopted by some leading organizations in the world and through my experience in direct sales and marketing.
My responses to these questions will be divided into two namely:

1. Natural Responses to the sales questions and
2. The 21st Century Practical Responses to the sales questions

From time immemorial farmers, hunters, artisans have effectively responded to the customer requirements for their products and services in the best possible ways that they know. Their solutions might appear simplistic but they are quite relevant in modern day and serves as springboard in tackling the 21stcentury sales challenges.

NATURAL RESPONSES TO THE SALES QUESTIONS

The communal nature of man portend that some basic rules are observes in living and at ensuring the preservation of human race. Work is seen by society as fundamental attribute of man starting from the so-called man-of-nature to his sophisticated 21st century high-tech counterpart, work (application of human effort to productive activities) is rated as a means for survival and in the preservation of the human race. The man of nature engages in subsistence farming and in no time realizes that his own personal effort could not satisfy his needs and therefore engaged in trade-by-barter. Trade-by-barter is a system of trading where produce were traded for another item of trade. For example a farmer that had need for palm oil would look out for someone with palm oil who has need say for his yams. Under the trade by barter, the major considerations for effective trade are trust and the confidence that both parties are honest in their commercial dealings.
However, in an attempt to capture the key profitability criteria and sales evaluation processes in the days of old, I have been able to identify the following as natural responses to the sales questions:

•Quality Product

Hunting for uncommon animals, waiting longer to harvest bigger produce and the dexterity of the craftsmen placed higher values on goods and services in ancient times. Product quality are determined by the uncommonness of the product or based on its exoticness. Just the way it was then so it is today except for the fact that customers are consistently becoming accustomed to high quality product which are reasonably priced and competitive.
In todays market a firm needs to know what customers in it target market perceives as high quality because customer will pay for product that is perceived to meet their needs yet of the highest standard.
Organizations that want to capture a significant proportion of the market must not compromise on the quality rating, it must be noted that quality preserves and promotes firms – product image and gives it a reputation. Quality is today seen as a key point in competitive advantage and this account for the reason why poor quality products are no longer acceptable even in third world Nations.
Dimensions of Quality that the customers will reckon with
There are two Dimensions to quality, namely

• Tangible Elements

• Intangible Elements

TANGIBLE ELEMENTS OF PRODUCT QUALITY

INTANGIBLE ELEMENTS OF PRODUCT QUALITY

Take Away
For customers to buy a product and ensure that they repeat their calls the issue of quality must be settled. Every product that will command a place in the market must honour its pledge of quality.

• PRICING

Price is another natural response to the customer buying decision. Except in the era of monopoly when you have one producer of an item dictating prices todays customer desire the very best quality at the cheapest possible price. In the traditional marketing environment price is a factor of product cost plus desired profit. But today we have moved speedily away from sellers market to what is called buyers market where prices are dictated by the forces of demand and supply or what we call market dictated price.
The fact that the customer demanded for cheaper products does not necessarily mean that quality must be compromised.

Take Away:
Customers are price sensitive and most prices are market susceptible hence cost must be closely controlled.

• Captivating Advertisement.

In traditional-market- setting a farmer or hunter with a big harvest or catch would display his produce or game conspicuously for prospective buyers to see. All possible means are adopted at drawing attention to the product. We have always run with the notion that the word of mouth, effective merchandising and display would help the seller sell. However, in modern day, advertisement has taken a much deeper dimension with billions of dollars dedicated to influencing the decision of the buyers in making buying decision.
In todays highly sophisticated market questions have been asked as to whether advertisement influences buyers decision or if only they drew attention to the product? Basically advertisement provides information aimed at influencing the decision of the buyers and often times it does mostly in the short run influences buying decision.
Take Away
However, except the advertised product satisfied the customer needs and meets the claimed that it promised advertisement does not promote loyalty and repeat purchases.

THE 21ST CENTURY PRACTICAL RESPONSES TO THE SALES QUESTIONS

The distinction made between the natural responses of businesses in tackling the sales questions are consciously deliberate and this is not to say that the response of sales people in the 21st century is artificial or unnatural more so that the survival instinct in man would come naturally in matters of trade and the willingness to satisfy customers needs.
However, the 21st century customers are more sophisticated and conscious of their powers in dictating the direction of commercial transactions. In the words of Sam Walton There is only one boss-the customer. And he can fire everybody in the company from the chairman on down, simply by spending his money somewhere else The marked difference between the then and now customer is due partly to the collapse of economic boundaries and the ease of doing business using the world-wide-web.Competitions are stiffer than it used to be and the customers can select from wider varieties.

WHAT INFLUENCES THE 21STCENTURY NIGERIAN CONSUMER TO BUY

Customer-Needs-Propelled-Product (CNPP)

My organization was some years back contacted by a mobile phone marker to promote and ensures visibilities for their range of mobile phones in Nigeria; these phones had been designed specifically for the Nigerian market without prior investigations of the needs of the consumers. Sad to say the product were rejected in the market because of the failure of the manufacturer to take the needs of the consumer into consideration in the design of its product.

Questions such as what does the customer need?
What is value for him?
How does he buy? And
Where does he or she buy?
These are strategic and important questions that should inform our product design and packaging. Mark and Spencer became one of the largest manufacturer and marketer in the world because of its sincere responses to these questions. Likewise, if you engage the Nigeria consumers you will get the very best out of them and build an enduring niche.

Value Driven-Product (VDP)

Customer would naturally assess the worth of a product based on its perceived benefits and likely gains from buying such a product. Where there is a low assessment of a particular product they tend not to buy or they will price it low or buy from a competitor whose product worth is considered higher.
The Nigerian buyers are value sensitive and would place their money where their benefits are perceived higher. Sellers and organization must take this into consideration because to a very large extent it will determine their success or otherwise in the market.
Peter F. Drucker, placed emphasis on the centrality of value as a driving force for success, when he said The customer never buys a product. By definition the customer buys the satisfaction of a want. The customer buys value.

Market-Sensitive-Selling Price (MSSP)

It is important to say here that consumers are influenced by various factors when making purchases decision, fundamentally, however, is their needs and the ability of a product in satisfying such needs. Haven said this; we must also be sensitive to pricing decision if we must sell in such a competitive and open market as Nigeria.
In traditional market, selling price is seen as a factor of product cost plus desired profit but today, profit is anchored on market dictated price less cost of product. This goes to show that most product pricing are market driven and customers are price-sensitive and as such cost must be controlled while quality remains the same.
Organizations have adopts different pricing strategy depending on what they intends to achieve either in the short, medium or long run. Some of the well known pricing strategies include

1. Premium Pricing
2. Market Penetration Pricing
3. Skimming Pricing
4. Economy Pricing
5. Bundle Sale Pricing
6. Psychology Pricing

Customer-Input and Partnership (CIP)

While the importance of R&D has been recognized world-wide in the conceptualization and design of product, its of note, however, that customers- partnering is now taking the centre stage in products formulation, design, marketing and sales. The idea of customer partnership places emphasis on the fact that since the products are meant for the consumers, then it is of utmost importance to take their opinions into consideration in terms of asking them to define the value that they would like to have in the product.
When the suggestions, opinions, feedbacks and complaints and criticisms are taken into consideration often times the products turns out well and acceptable to majority of the consumers.

Product Dependability Commitment (PDC)

Every organization either directly or indirectly makes pledges through their products. The claims made in terms of service deliverable are contractual obligations that must be kept. The truth about the Nigerian consumer is that they want to deal with companies that can be trusted to deliver on their pledges.
We must be careful and keep to our products claims; policies statements such as Money back 24 hours response time or free return policy should be kept judiciously because they tell more about the companys image and continuous existence.

Adaptability and Flexible Response Rate (AFRR)

The tastes of the Nigerian consumers are changing on a regular and continuous basis, hence, organizations must ensure that products and services have the ability to respond and conform to new situations as quickly as possible.
There are two dimensions to adaptability and they are:

• Product Flexibility. This refers to an organizations ability to quickly develop new lines of products and quickly modify existing ones to meet changing customers requirements.

• Process Flexibility is the capacity of an organization to produce in timely manners a broad range of product, move from one product to another and easily incorporate new or revised products and handle variations in the raw materials used.

Quite recently we saw the problems with the Galaxy Note 7 manufactured by Samsung; the flame bursting phone has not only negatively affected the revenue of Samsung but the GDP of South Korea as a Nation. The inability of Samsung to quickly respond to this calamity has given its arch-rival Apple huge advantage with its iPhone 7 and iPhone 7 plus. Apple through iphone 7 demonstrates quick and fast response to market requirements and this is what flexibility is all about.

According to Ewan Spence in Forbe.com As Samsungs hopes of smart phones dominance in 2016 literally burns down, Apple is not only ready to sweep in and save the consumer with iPhone 7 and iPhone 7 plus, it has been putting resources in place to quietly capture disappointed Note 7 users.

Timely Delivery and Up-to-date Product (TDUP)

Having consulted extensively in the Nigerian FMCG subsector and in the consumer goods market, it is necessary to conclude that consumers demands for up-to-date products and want them fast and quickly delivered. This requirement is one of the major reasons why online shopping or e-marketing has taken a place of prominence in Nigeria today.
For example, Toyota reckoned with the strategic advantage of time and boldly say that they can build and deliver custom-made cars anywhere in the world in just five working days that the order is placed.
Firm that can meet the demand of their consumers in a fast and timely manner tend to enjoy lowest cost of production and commend a greater share of the market.

Integrated Service Covenant (ISC)

It is high time that we embraced the fact that service is an important part of the total product. Sales do not end at the point where product is exchanged for cash, but moves on even unto after-sales services. It is a widely held opinion that service is highly correlated with market share.
For example, LG Electronics controls a high percentage of consumer electronics market in Nigeria by the singular reason of their unbeatable after-sales-service and fast responses to customer complaints.
Good customer service is the act of making commitment to care for the customer and retain their loyalty.

Conclusion

The Nigerian market offers huge opportunities for manufacturers and business concerns around the world. Nigeria commands the largest population in African and it is open to global trade. Understanding the Nigerian consumers gives competitive advantages to organizations and helps them command a significant share of the market. However, the peculiarity of the Nigeria is worthy of note. This article has been painstakingly researched and written to help organizations and sales people understand how to make the Nigerian consumers buy their products and gain a significant share of the market.

REFERENCES

April Maguire, 6 Different Pricing Strategies which is Right for your Business A post in Pricing Strategy. 2016
Ewan Spence Samsung Surrenders to Apple As Note 7 Nightmare Gives Victory to iPhone 7 Forbes 2016.
Hamid Noori, Decision Tools for Operations Management. Laurier Business School Wilfred Laurier University. Mcgraw-Hill, Inc. 1976
Peter F. Drucker, Management Tasks, Responsibilities, Practices 1999
Other presentations and materials written by Kayode Ibukunoluwa-Micah

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Many business owners are asking themselves how they can make their companies competitive in the face of the rapidly changing Nigerian business environment just as many are asking how they can channel and focus their scarce resources and competitive strength to achieve better profit.
Darach Associate and Marketing Consulting Nigeria provides well thought out solutions to these business survival questions:

CREATE CUSTOMER
Research findings have shown that 50% of new businesses fail in the first two years primarily because they cannot attract enough customers to purchase a sufficient volume of their products. Others fail due to under-capitalization, inability to compete and effectively react to changes in market trends, customers dictate and preferences. Darach Associate is a team of customer centric organization with greater attention on customers requirements, satisfaction and advancement.

HIRE RIGHT
Passion for the job create 45% success for salesmen, understanding how to do the job will further achieve 30% of sales accomplishment while having the right tools to do the job will create 15% for effective product penetration. Support by management will take the remaining 10% of personnel profiling for individuals success on the job. Darach Associate and Marketing Consulting Nigeria Limited is a two prong organization that is acknowledged for its expertise in Human Resource Management (OUTSOURCING, MANAGED SERVICE, SALES, AND MARKETING).
Presently, we are a business partner to Nexus Home Appliances, International Purchasing and Supply Chain Management Institute, MCI AGENCY LIMITED, MEDVACC PHARMACEUTICAL LIMITED, AMERICAN CERTIFICATION INSTITUTE, LOREAL WEST AFRICA LIMITED among others.

UNDERSTAND SALES AND THE NIGERIAN MARKET.
Sales involve strategy and effective planning, selling when properly done drives bottom line values and results. However, if sales are in the hands of a novice, the results are untargeted exercises and the waste of resources. We at Darach have been tested and we have sold products and services in over 16 commercial cities in Nigeria.
UNDERSTAND THE NATURE OF COMPETITION IN THE NIGERIAN BUSINESS SPACE.
A Good number of businesses fail because larger firms use their market power to deny them access to customers or supplier. If a firm fails to get its product into the hands of the customers such a firm will naturally die. We understand competition and we have solutions on how to effectively manage that through effective channel management and direct sales.

WHY YOU SHOULD USE DARACH ASSOCIATE AND MARKETING CONSULTING NIGERIA LIMITED

1) We generate more and more customers for your product and services
2) We ensure effective and planned penetration in niche market and segments for your brand
3) Fast responsiveness to customer needs and requirement using our trained merchandisers and saleforce across Nigeria
4) Ability to manage cost, attract enough cash flow and profits
5) We react proactively to market dictate and changes in customer preference
6) We report and help in your quality assurance process by paying and relying VOC
7) We ensure a good relationship with regulatory bodies and authorities.
8) We have the capacity to manage your super markets, retails outlets and showroom across Nigeria
9) We have tested model for building relationship with channel members, wholesalers, retailers and customers alike.
10) We understand peoples management
11) We have bricks and mortar existence: WE ARE REAL AND WILL TRAVEL THE WHOLE LENGTH WITH YOU UNTIL YOU SUCCEED