There are lots of definitions of marketing, that’s one of them: marketing – is the implementation of business processes in the direction of the flow of goods and services from producer to consumer.
I would say it even easier: Marketing is the movement of goods and I divide them into some types:
• Line Marketing
• Tele-Marketing (teleshopping, trade directories)
• Network Marketing
Line-marketing – is, in fact, retail trade. Its peculiarity is the high cost of advertising and middlemen.
Tele-marketing is so-called shop on the couch: You show a TV program or you are considering a catalog, then you call and order, but you can not touch or try on merchandise, ordering, you risk that when receiving the goods do not fit in size, color or just do not like it.
Network Marketing is the system sales of goods and services through independent distributors who can sell goods to customers as well as recruit (recruit) new distributors and receive a percentage of sales of these distributors.
The concept of MLM is very simple: the company offers you to become a distributor and distribute the products but also involve other people as distributors, who in turn, will also attract distributors, etc.
This creates a distribution network (hence the name Network Marketing), it differs from the usual network.
The basic rule of MLM companies: to become a distributor only on the recommendation of another distributor, which he already operates. When you fill out an application to the company, there shall be inserted your data and data of the person through whom you came to the company, he becomes your sponsor, and you – part of his group.
When you start to attract people, you become a sponsor for them and create your group, etc. The network takes into account the company’s you can control it through a virtual office on the Internet, which provides you a company.
The main benefits of the network marketing:
• We can buy quality goods without paying for advertising and other intermediary costs
• Creating a network of distributors, we can get a steady income
What network marketing is different from retail?
Buying goods in the store we pay not only for the goods, but also for the enormous advertising, brokerage, transportation costs, which are included in the final cost of goods and up to 90% of the value of the goods.
Often, buying some goods in the shop and get a good impression on the application, we begin to advertise it to friends and acquaintances, which leads to the fact that our friends bought a similar product in the store, ie, they have bought goods on the recommendation.
Unlike retailers, MLM companies save money on advertising and middlemen, and the savings are distributed in the form of commissions to distributors who recommend products to others.
Modern distributor of “advanced” networking company did not directly engaged in the sale of goods. It informs potential customers, sharing with them their reviews of the use of product, and toll-free number or website to order products.
The buyer calls the company, calls the computer (ID) number of referee (sponsor), recorded in the company and order products for home delivery. Thus, by the way, exclude the possibility of buying fake goods because the buyer receives the product directly from the company.
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