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BUSINESS AND NETWORK MARKETING
ENROLLMENT NO. 29196
What is business?
Economic system in which goods and services are exchanged for one another or money, on the basis of their perceived worth. Every business requires some form of investment and a sufficient number of customers to whom its output can be sold at profit on a consistent basis.
What is network marketing?
Network marketing, also known as Multi level marketing, Pyramid marketing & direct selling, is the marketing style & technique, adopted by many companies in India as well as worldwide. In this concept, companies emphasise not only on sales generation, but also on workforce maximization. Companies adopt a workforce pyramid of different levels.
In multi level marketing, companies sell their products directly through the distributers. They take the distributers from the society. Here, each member of the pyramid is supposed to generate sales & also attach more members or distributers with the company. All these members further generate sales & join more people as distributers. Thus, the sales as well as the workforce increase. These distributers are paid the commission on the base of sales they generate & also by the sale generated by the next level of the distributers, they attach to the company.
Thus, we see that it acts like a chain reaction. Here each member brings sales & work force. Each member uses the product and makes other using it. Thus he earns & also earns for the company.
Need of Network Marketing:-
In the traditional marketing model, a product goes through many processes before in reach to the customer like Importer (in case of imported products), Whole Selling, Retailing, Distributing, Advertisement etc. All this made a delay in delivery of the product, as well as these all increase the cost to the customer. Also all this made a product less profitable to the company....
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