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Network Marketing
Network Marketing
Network Marketing
MARKETING
• Network marketing is business model which
relies on individual distributors who market
and sell a product to their network of friends,
relatives, and people they know or meet. The
distributors make money through commissions
on the products they sell.By this , chain form
and pyramid formed of business model
• Single-tier Network Marketing : also known as direct selling, is the simplest form of network
marketing. In this type of marketing, you sell products directly to consumers without using
intermediaries. This type of marketing benefits includes lower costs, higher profits, and the
ability to build close relationships with customers.
• Two-tier Network Marketing : also known as multi-level marketing, is a more complex form
of network marketing. In this type of marketing, you recruit other people to sell products on your
behalf. This type of marketing benefits includes higher profits and the ability to build an extensive
network of salespeople
• Multi-level Network Marketing : also known as pyramid selling, is the most complex form
of network marketing. In this type of marketing, you recruit others to sell products on your behalf
and earn commissions for those products. The benefits of this type of marketing include high
profits
STRUCTURE OF NETWORK MARKETING
• Firstly manufactures require several distributors, sub-distributors and dealers in order
to create a network marketing structure.
• They may either use them personally or they may sell them to other distributors for a
profit. This chain continues further. The distributors, thus, will end up marketing goods
until they reach customers or else they may become final customers themselves.
• Furthermore, these distributors get an opportunity to make some profits from this
marketing network. They can receive some commission from manufacturers on the basis
of the total volume of goods they buy and sell.
USES OF NETWORK MARKETING
• There are absolutely no limits on the size of the • Since manufacturers depend on
network marketing structure. distributors to determine consumer
demand, it can be difficult to predict
• Due to a reliable and robust distribution network production targets. They may end up
that engages customers directly, companies do not under or over-stocking their products.
need to rely on advertising to market their goods.