Network Marketing and Implication of Global Marketing

8/11/2019 Network Marketing and Implication of Global Marketing

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Network Marketing and

Implication of global m


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Introduction

A business model in which a distributor

network is needed to build the business.

Usually such businesses are also

multilevel marketing in nature in that

pay-outs occur at more than one level.


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History:

It is generally accepted that the first network marketingplan was introduced in 1945 by the California Vitamin

Company( shortly afterwards to become Nutrilite). The planallowed Nutrilite distributors with at least 25 regular

customers to recruit new distributors and draw a 3%commission from their sales.

Network marketing is a new concept of marketing productspioneered by Amway Corporation (manufacturing household

goods , personal care and nutritional products).


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M

It is a method of marketing(which is also

known as multi-level marketing) consists

in recruiting independent business persons

by the manufacturer, who act as a

distributors of companys products ; thesedistributers, in turn ,recruiting sub-

distributors recruiting sub-sub distributors

to sell products, usually in the home of

customers.


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Network marketing can be depicted,

by means of following chart:

Company

Customers Distributor FiMa

CustomersSub-

distributorsSeMa

Customers Sub-sub-distributorsTM


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What is Multi-Level marketing?

It is a sales system under which

the salesperson receives a commission on his or

her own sales and a smaller commission on the

sales from each person he or she convinces to

become a salesperson.

Or we can say that it is a business distribution

model that allows a parent multi-level marketing

company to market their products directly to

consumer by means of relationship, referral and

direct selling.
http://www.investorwords.com/13825/salesperson.htmlhttp://www.investorwords.com/967/commission.htmlhttp://www.investorwords.com/14646/person.htmlhttp://www.investorwords.com/14646/person.htmlhttp://www.investorwords.com/967/commission.htmlhttp://www.investorwords.com/13825/salesperson.html


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Benefits of MLM/Network Marketing

Low start up cost.

To Utilize free time properly.

Low tax Amount.

Small amount of risk is involved.

Personal Development.

Support From Up-line Members.

Freedom of Time.


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Criticisms of MLM/ Network Marketing

Highly difficult to make a profit(less than 1%

make a profit).

High level of rejection(and resistance from

the public.)

Constant meetings

Lack of management control systemsTime and money travel

Pyramid infrastructure

Strains personal relationships


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Definition of global marketing

According to oxford university Global marketing refers to marketing

activities coordinated and integrated across multiple countrymarkets.

Global marketing may be defined as an activity related to the sales of

goods and services of one country in the other subject to the rules

and regulations .


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Process of Global marketing

1.Domestic marketing2.Export marketing

3.International marketing

4.Multinational marketing

5.Global marketing

Ch i i f l b l k i


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Characteristics of global marketing

1.International restriction and trading blocs

2.Need of marketing research

3.Importance of advanced technology

4.Need of long term planning

5.Develops cultural relation .


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Functions of global marketing

1.Product selection

2.Selection of distribution channel

3.Pricing

4.Marketing communication

5.Organizational adaptation

6.handaling business ethics


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Impact of affect in global marketing

decision

1.Global marketing decision

2.Market selection and decision

3.market entry decision

4.distribution decision

5.global pricing

6.promotion


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Future of global marketing

World growth

Growth of global market

Free market rule the world

Internet and information technology


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Thank you

Presented by-

Himanshu k singh

Khan abdul Rahim

Kritika s

Sunitha gs Hemend chandran

Network Marketing and Implication of Global Marketing

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