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Editura Universitara Modern Distribution Systems. Multilevel Marketing

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ISBN: 978-606-28-1137-2

DOI: https://doi.org/10.5682/9786062811372

Publisher year: 2020

Edition: I

Pages: 120

Publisher: Editura Universitara

Author: Ioana-Mădălina PURCARU (CIONGRADI)

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The multilevel marketing system, often labeled as a utopian system of additional revenue in recent years, has become important worldwide. Using this system generates income and jobs for the population. What makes this concept even more attractive is the fact that anyone can join and benefit from this scheme, regardless of age, qualification or experience. But to be successful in network marketing, the representative must be a born leader or a sales person.
This paper aims to study the analysis and interpretation of multilevel marketing concepts. The paper is structured in five major chapters, addressing the following aspects: conceptual and methodological aspects of modern distribution systems, the current state of knowledge in the field of multilevel marketing systems, particularities of consumer behavior and the market of multilevel marketing systems, analysis of policies and strategies. marketing used in multilevel marketing and a marketing program to promote products and services offered by MLM systems through social media platforms.
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IOANA-MADALINA PURCARU (CIONGRADI)

The multilevel marketing system, often labeled as a utopian system of additional revenue in recent years, has become important worldwide. Using this system generates income and jobs for the population. What makes this concept even more attractive is the fact that anyone can join and benefit from this scheme, regardless of age, qualification or experience. But to be successful in network marketing, the representative must be a born leader or a sales person.
This paper aims to study the analysis and interpretation of multilevel marketing concepts. The paper is structured in five major chapters, addressing the following aspects: conceptual and methodological aspects of modern distribution systems, the current state of knowledge in the field of multilevel marketing systems, particularities of consumer behavior and the market of multilevel marketing systems, analysis of policies and strategies. marketing used in multilevel marketing and a marketing program to promote products and services offered by MLM systems through social media platforms.
The first chapter, Conceptual and methodological aspects regarding modern distribution systems, defines first of all the theoretical bases of the paper, where there are definitions of certain terms such as: general marketing, multilevel marketing, modern distribution systems, illegal pyramid systems. Also presented here are the ways in which multilevel marketing systems work and their history.
The second chapter presents the analysis of the specialized literature in the field of research carried out in Romania within the multilevel marketing systems. This chapter continues with the presentation of the results obtained following a quantitative marketing research, with the theme "Opinions, attitudes and behaviors of multilevel marketing agents in Brasov".
Chapter three is dedicated to presenting the behavior of the Romanian consumer in terms of purchasing products and services, on the Internet or in stores. The third chapter continues with the evolution of the market of multilevel marketing systems at national and international level and the presentation of the main bidders. The online resources were also presented by the consumers of products and services through the multilevel marketing system, but also the relationship between emotional work and burnout in the case of agents who sell directly.
Chapter four analyzes the product, price, placement and promotion policies and strategies of multilevel marketing systems. Designing an effective marketing mix involves creating and promoting products and / or services necessary to meet the needs of consumers, business partners, but also society. The products and / or services must be new, to transmit quality, but also to be personalized, having the purpose to offer to the consumers pleasant experiences after their use and a corresponding quality-price ratio. Depending on the products or services sold, the categories of consumers to which they are addressed and the channels through which the sale takes place, companies use various strategies to promote their products and / or services. Distribution also has a very important role, especially among multilevel marketing companies, which call on their own distribution network that is made through company representatives, in exchange for a commission set by superiors for various reasons. Companies need to find an optimal combination of the four components of the marketing mix in order to meet the demand that is increasingly demanding and sophisticated.
The last chapter of this paper presents a marketing program for promoting the products and services offered by multilevel marketing systems through social media platforms and influencers. The influencer can bring to a multilevel marketing system notoriety, participation in an event (conference, concert, social campaign), reach a new audience, can popularize the page and description (if the company has a specific one), or can bring sales to the company multilevel marketing (if it includes in the post a link to the company's website). The realization of the program involves the completion of seven activities, for 7 months and a budget of 16500 euros. The elaboration of marketing programs starts from the identification of the consumers' needs regarding a certain product / service. In order to have achievements, the marketing program needs to follow a precise path, following a logical sequence of events that will make up the process. In recent years, companies' collaboration with influencers has become increasingly serious. The influencer can be the person who creates the blog, vlogg, the person who posts on Instagram, the administrator of a certain important group on Facebook, all of the above or just a person who is well known on social media for his recommendations that inspire confidence, or are well argued or very funny. He, through the channels through which he communicates with his followers, communicates in an original way to his followers, the messages of the companies with which he collaborates. Collaborating with an influencer could help the multilevel marketing company reach their target audience much more directly and quickly and build a trusting connection with the audience through the influencer's recommendation, which adds value to the company's product and / or service.
Multilevel marketing offers people the opportunity to build their own business, with low risk and low financial commitment. The MLM salesperson must constantly inform clients and potential clients about the advantages of the company's products and / or services and about the advantages of their own part-time or full-time business, to be consistent, disciplined and persuasive. In multilevel marketing, the reward consists not only in money / remuneration, but also in freedom, creating and maintaining a relationship with members, but also in personal and professional development and improving the quality of life and communication and presentation skills.
The multilevel marketing agent is the main link between the sales market and the company he represents. He is not only the man who registers the order, the man who delivers the goods or the man who takes the money, he must also be constantly aware of the importance of his role, being well motivated to meet the performance standards required by his position.

INTRODUCTION / 7

CHAPTER 1. CONCEPTUAL AND METHODOLOGICAL ASPECTS REGARDING MODERN DISTRIBUTION SYSTEMS / 11
1.1. Distribution and modern distribution systems / 12
1.2. Introductory notions / 15
1.3. Defining the notion of multilevel marketing / 18
1.4. The history of multilevel marketing and the way MLM / 20 systems work
1.5. Defining the concepts of Marketing, Multilevel Marketing and Pyramid Systems / 23
1.6. MLM. A profitable business or just a beautiful dream? / 30
1.6.1. “MLM for everybody is not forever” / 34
1.6.2. Illegal pyramid schemes / 36

CHAPTER 2. CURRENT STATE OF MULTILEVEL MARKETING SYSTEMS / 43
2.1. Analysis of marketing research on the multilevel marketing market in Romania / 44
2.2. Quantitative research on “Opinions, attitudes and behaviors of multilevel marketing agents in Brasov” / 47
2.2.1. Hypotheses and objectives of quantitative research / 49
2.2.2. Analysis and interpretation of quantitative research results / 51

CHAPTER 3. PARTICULARS OF CONSUMER BEHAVIOR AND THE MARKET OF MULTILEVEL MARKETING SYSTEMS / 56
3.1. The behavior of the Romanian consumer regarding the purchase of products and services / 56
3.1.1. Consumer behavior on the Internet / 57
3.1.2. Consumer behavior in stores / 62
3.2. Multilevel marketing systems market / 63
3.2.1. The evolution of the multilevel marketing systems market at national and international level / 66
3.2.2. Presentation of the main bidders / 69
3.2.3. The use of online resources by consumers of products and services through the multilevel marketing system / 78
3.2.4. The relationship between emotional work and burnout in the case of direct sales representatives / 82

CHAPTER 4. MARKETING POLICIES AND STRATEGIES USED IN MULTILEVEL MARKETING / 84
4.1. Product policy in multilevel marketing / 86
4.2. Pricing policy in multilevel marketing / 90
4.3. Distribution policy in multilevel marketing / 92
4.4. Promotion policy in multilevel marketing / 93

CHAPTER 5. MARKETING PROGRAM ON THE PROMOTION OF PRODUCTS AND SERVICES OFFERED BY MLM SYSTEMS THROUGH SOCIAL MEDIA PLATFORMS AND INFLUENCES / 96
5.1. Situation analysis / 98
5.2. Problem definition - starting point of the program / 100
5.3. SWOT analysis of social media platforms / 101
5.4. Marketing program for promoting products and services offered by MLM systems through social media platforms and influencers / 103

BIBLIOGRAPHY / 109

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