The importance of multilevel marketing in the selling process


INTRODUCTION

In a scene of great commercial competition has become a marketing "tool" of great importance in driving sales and loyalty clientela.O present study aims to conceptualize marketing analyze the importance of marketing mix in the sales process as well as typologies.

Among the types found in marketing multilevel marketing stands out that according to data from the sales market is growing above the market average. Given this proposal came to the question:


What is the importance of multilevel marketing in the selling process?

The expectation of this study is to provide the business community, academic and social understanding of the work system and marketing Multilevel Marketing. Thus providing a new vision to the traditional market, so you can create a new perspective on business management, with recognition of the employee, so that it may seek constant improvement and motivation, thereby improving the relations: x consumer company.

The first chapter will present the concept of marketing, presenting the view of several authors on the subject.

In the second chapter will address the marketing mix facts by analyzing each of 4 ps.

In the third and final chapter will show the types of marketing and will focus on multilevel marketing.

At the end of the work will be done some final thoughts on the subject examined.


Relevance of topic

The author identifies the lack of research literature about the use of techniques used with great success by MLM. This lack of literature reduces the effectiveness of professional Brazilian managers in developing plans of action, especially in small and micro enterprises. According to statistics from SEBRAE of 100 public companies in Brazil, only two survive at the end of five years.

Because of this "mortality" early, it is necessary to implement effective models of customer management, employee motivation and financial health of companies. This procedure aims at continuous improvement of Brazilian companies through simple techniques, the inexpensive and effective MLM uses with great success.


Rationale for choice of theme

The author to work in a company that is based on strategic marketing tool multilevel got interested in deepening the theme. Brazil is still very scarce in the study of multilevel marketing and the world there are colleges that specialize in Multilevel Marketing.

Added to this factor a degree in Business Administration with specialization in marketing, started in 2006 at the Faculty of Economic and Administrative Sciences of Vila Velha that aroused interest in marketing and its strategies.


Objectives of Research


General Purpose

The objective is to analyze and demonstrate the trends and importance of studying multilevel marketing as an option to stimulate sales.

Specific Objective

Conceptualize � Marketing;

� List and analyze the compounds of marketing;

� Conceptualize and analyze network marketing;

� Analyze the factors boosting sales by applying the network model of multilevel marketing.


Methodology

For the research and clarification of doubts and problems you need a plan because it is the basis for any activity. The research was based on literature sources involving marketing.

Bibliographic Research, which according to Roesch (1999) refers to the importance of selecting, reading and analyzing texts, books and articles relevant to the design theme. Thus enables a complete analysis of the text, making the summary and interpretation of the study of ways to systematize. In many situations, is equal to the proposed study, it is necessary to study the past without this database is impossible to achieve a good job.

The scientific work is identified, often through scientific research (Salomon, 1999). Scientific research is an activity aimed at solving practical or theoretical problems through the use of scientific processes, starting with a question or problem, using the scientific method for an answer or solution. Science can not be regarded as something done, finished or final. It is not possession of immutable truths, it is understood today as a constant search for solutions and applications (HART; BREVIAN, 2002).

Thus for this study we used the following methodologies:

a) Exploratory research this type of research aims to better understand the topic addressed and improve ideas. His schedule is very flexible, so that allows the consideration of various aspects related to the fact studied (Gil, 2002). Exploratory research was used in the early stages that supported this monograph, where there was a need for greater knowledge of the subject being addressed.

b) Literature search is resulted from the exploratory research is devoted to rebuild theories, concepts, ideas, ideologies, controversies, in order, in immediate terms, enhance theoretical foundations (DEMO 2000). Being part of the descriptive or experimental when done in order to gather information and prior knowledge about a problem for which it seeks an answer or a hypothesis you want to try (HART; BREVIAN, 2002). The literature search generated basis for developing the first two chapters of the research.

c) Descriptive research describes this methodology, records, analyzes and interprets the current nature of the phenomena or processes. The focus is on conditions prevailing, or about a person, group or thing behaves or acts in the present, using much the comparison and contrasts. Applied to the solution of problems, starting with the process of information about current conditions, needs and how to reach them (Salomon, 1999). This methodology is employed throughout the study

d) Qualitative research that holds very different streams of research. In summary, these currents are based on certain assumptions contrary to the experimental model, adopting different methods and techniques used for experimental studies. Qualitative research is a creation that mobilizes the accuracy of the inventive researcher, his craftsmanship and ingenuity to develop a methodology appropriate to the search field and the problems it faces in research (Chizzotti, 2000). Qualitative research was used primarily to collect data and prepare the proposal in chapter 3.

e) Collection of comparative data from the interpretation that leads the researcher to consider the data collected to search for theories that give background to grasp or explain the object of study. The comparative method is to explain similarities and differences through observations of the fact (Medeiros, 2003). The comparative method was used to conduct research undertaken in chapter 3.


Treatment of Data

For elaboration of the research data are treated primary and secondary:

* The collection of secondary data was obtained through references, holding books, papers, theses, websites and research legislation. Composing much of the research, which generates theoretical and leads to primary data collection.

* The primary data collection based comparative methodology was performed by extracting data from the sites of six companies. These data provided the primary framework for the proposed model.


Limitations of Research

The breadth of subject matter (new proposal) and limitations of personal and impersonal author, the study has some limitations, namely:

* Using only national references and / or translations;

* Limiting the search field, evaluated six sites , involving companies from different segments;

* In the proposal were just tools used freeware , shareware or Office package, namely: Cariboost, LogoMaker and Paint;

* The lack of knowledge of the author to the development of Web Pages .


Structure of the

The work is divided into 6 parts, namely:

Part 1. Introduction, context of the research problem, topic relevance, rationale for choice of topic, research objectives (general purpose and specific objectives), methodology (data processing, research limitations), and structure of the work;

Part 2. Marketing Concept - In this part of the research seeks to define the concept of marketing, its tools for applicability;Part 3. Marketing mix - This part presents the marketing mix, highlighting the marketing mix;

Part 4. This part is conceptualized certain types of marketing and specification and expansion of knowledge about network marketing in the selling process.

Part 5. Final considerations - are made general comments about the topic addressed by presenting the potential benefits of the proposal and suggestions for future research.

Part 6. References - are identified works that gave support to the research literature.


1 CONCEPT OF MARKETING

The marketing in recent years has become one of the main and essential tools to promote sales and therefore profitability for companies. It is often mistaken as a function or setting to be advertising. These definitions are consistent with the constant impacts ads in newspapers, on television advertisements, billboards, telemarketing, direct mail and others.

Kotler (1995), reports that the sale and advertising are part of a large set of the marketing mix. The set of the different marketing tools would be used to reach the market.

Today, marketing must be understood not only in the old sense of "telling and selling", but also to satisfy customer needs. If a marketer does work to identify these needs, develop products of higher value, its price has been set, do a good distribution and promotion, these products are sold very facilidade.A sale and advertisement are merely parts of one great " marketing compound, ie a set of tools which work together to reach the market. We define marketing as a social and managerial process by which individuals and groups obtain what they need, creating and exchanging products and values ??with each other. (Kotler, 1995 p.3).

Marketing is not just about advertising and marketing, according to Kotler (1995) the goal of marketing is to make selling superfluous. It is understanding the client as well as the product / service.

The sale and advertising are mere parts of a great "marketing mix", ie a set of tools that work together to reach the market. We define marketing as a social and managerial process by which individuals and groups obtain what they need, creating and exchanging products and values ??with each other. (Kotler, 1995, p.3)

It is understood that the definition of marketing is a set of techniques used to make better use of opportunities in the market in order to better serve the needs of consumers with guarantees of lower risks and higher profits.

In Brazil, the concept of marketing, even today, is blurred. Many people think that marketing means a way of raising the customer desires, a way to sell products anyway, even if people do not want to. Some lay people believe is Marketing One way to get people to buy what you do not need with money they do not. In fact, marketing is a study based on various sciences (Sociology, Psychology, Mathematics, Anthropology, Statistics, Philosophy, among others). (Zenone, 2006 p 35)

To Richers (1994), the same marketing as a young man went through several distinct phases and even divergent. For too long, marketing has been defined and published by the American Marketing Association, who studied this area and covered the various activities that involve the flow of goods and services between the producer and consumer.

For Pride (2001), marketing is how the process of creating, distributing, promoting and pricing goods, services and ideas to facilitate satisfying exchange relationships with customers in a dynamic environment.

Crosier (1975) reviewed the existing definitions of marketing, which consolidated into three main groups; introducing marketing as a process, introducing marketing as a concept or a business philosophy and introducing marketing as an orientation. The definition of market process reflects the market characterized by relationships between buyers and sellers in the process of exchange of economic goods and services.

Search Marketing is the function that links the consumer, customer and public to the name of marketing through information - used to identify and define market opportunities and problems, generate, refine and evaluate marketing actions, monitor marketing performance; improve understanding of marketing as a process (Bennett, 1988, p. 184).

According to Cobra (1992, p. 29), "[...] marketing is more than one way to feel the market and adapt products and services, is committed to the pursuit of improving the quality of life [.. .] ". The marketing has become a practice that is absolutely essential in the administration, widely used in social programs, sales ideas, political systems and ways of life.

Marketing is observed in a pragmatic way, the word takes on its literal translation: Market. One can therefore state that is the marketing study on the market. It is an administrative tool that allows the observation of trends and create new consumption opportunities aimed at customer satisfaction and responding to financial and marketing goals of generation services (FRAGA, 2006 p 1).

Today marketing encompasses much more than advertising and marketing but also builds a long-term satisfactory relationship in which people become expected, desired and what they need. Besides marketing to be ready to meet the needs of the market it is also used to sell ideas and social programs. In the aspect of marketing segmentation function is to identify: the pooled portion of the market in terms of: income level, age, gender, geographic region etc.. It also has the function to identify a target market for the supply of goods or services.

* Geographical segmentation: identify neighborhoods, cities, states, countries, urban / rural;

* Demographic targeting: identifying age, sex and physical characteristics;

* Socio-economic segmentation: identifies the income range, family size, education and religion;

* Product Attributes: durability, brand, price and volume of use;

* Features Behavioral occasion, and fashion influences;

* Benefit sought: quality, service and care.

Two marketing mix

The Marketing function and focus is to make the product is in the right place at the right time and at a price and quality acceptable to the buyer. Besides its function is to communicate and help the client to consider whether the product will meet your needs.

The marketing mix refers to the four primary areas and higher level decision-making for businesses. Decisions on what will be the product, as it is, what is its price, communication and decision making of how the product will be distributed. According Yanaze (2007) also called the marketing mix marketing mix or 4Ps (product, price, place and promotion) was the first time this description in the early '60s by E. Jerome McCarthy.

According to Cobra (1992), every organization must develop a marketing mix for the success of a company is to choose the right product, how it is distributed and promoted its price. These factors combine to meet the needs of target markets.

The marketing mix is ??the set of tactics the company to create a strong position in the target markets. However, it is worth noting that the four represent the view of the seller when the tools available to influence buyers. From the standpoint of the consumer, each marketing tool is designed to provide a benefit to the customer (Kotler, 1998 p. 32).

According to Ferrell and Luke (1987) the variable product is dependent on the work carried out by marketing, they result in products that become part of the everyday consumer. The variable product also involves modification of the brand name and packaging, as well as administration of existing products for some time add new products that do not remove merchandise.

Anything that is being projected is called her product or service, usually involve designing a set of products and services components. This collection of products and services in general, is called package (which consumers buy). Some of the products or services in the package are essential, ie, are fundamental to the purchase and could not be removed without destroying the nature of the package. Other parts will serve to improve the main part. These are goods and support services. Changing the main part or adding or subtracting goods and support services, organizations can offer different packages, and in doing so, design concepts very different product or service. (Slack, 1997 p. 147).

For Ferrell and Luke (1987) distribution (square) must be available at the right time and in convenient locations. In the matter of the square is very important factor inventory control, with a minimum inventory (risk capital) the administrator must serve all its customers. Should be kept full inventory costs, transportation and storage as low as possible.

Here, the strategies are related to the channels through which ownership of the product is transferred from the producer to the consumer, and in many cases, the means by which the goods are transported to the place where they are manufactured which are purchased by the consumer end. Moreover, the strategies applicable to intermediaries such as wholesalers and retailers should be developed. (DUARTE, 2009).

The second variable is related promotion Ferrell and Luke (1987) with the activities of communication and dissemination of the product / service to the target audience. The promotion may be intended to enhance public awareness of new or existing products.

Strategies are needed to combine individual methods such as advertising, personal selling and sales promotion in a coordinated campaign. Furthermore, the promotional strategies should be adjusted when a product moves from the early stages of life for the finals. Strategic decisions must also be taken with respect to each individual method of promotion. (DUARTE, 2009).

The price to be launched in the market for a particular product / service must be well study, analyzed and compared with the supposed competitors. According to Ferrell and Luke (1987) price is used as a tool of competition. Intense price competition sometimes lead to price wars, but high prices can be used competitively to establish the image of a product.

In any marketing efforts, the administrator must perform one of the four planning tools variables. The greater or lesser emphasis on each of them depend on the purpose of marketing. The figure below depicts the interconnection from the supplier to the final consumer, especially the marketing mix.

F igure 1 : COMPOUND OF MARKETING

SOURCE: ADAPTED COBRA, 1997

The four factors of the marketing mix are interrelated, decisions in one area affect other actions. To illustrate, the design of a marketing mix is ??certainly affected by the fact that the company chooses to compete on price or on one or more factors. When a company depends on the price as a competitive tool primary, other factors must be designed to support an aggressive pricing strategy. For example, the promotional campaign will probably be built around a theme of "low prices, low." In a competition outside the price, however, the product strategies, distribution and / or promotion in coming forward. For example, the product must have characteristics that may justify a higher price, and promotion to create a high quality image for the product. Each element of the marketing mix contains endless alternatives. For example, a producer can do and put one or many products on the market, and they may be related to each other or not. The products can be distributed by wholesalers to retailers without the benefit of wholesalers or even directly to the final consumer. Finally, the various alternatives, management must select a combination of factors that will satisfy the target markets and achieve the marketing objectives and the organization. (DUARTE, 2009).

It is extremely important to study because of the marketing mix through the study of price, place, product promotion and consumer needs will be better understood and met. Understanding these tools help in the neutralization of environmental forces, acquiring resources, financial results and market positioning.


3 TYPES OF MARKETING:

Since the emergence of marketing to the present day marketing has undergone many changes and because of that new types of marketing have emerged for each specific market.

The term social marketing first appeared in 1971 to describe the use of marketing principles and techniques to promote a cause, idea or social behavior. Since then, technology has come to mean the management of social change associated with the design, implementation and control of programs aimed at increasing the provision of acceptance of an idea or social practice in one or more groups of adopters chosen as a target. " (Kotler, 1992 p. 25).

Social marketing is one that develops in social relations. According to Santos Filho (2002) is the quality of social relations measured by social indicators such as the birth rate and mortality data, sanitation and quality of life in general. Is listed as a social and environmental concerns always with marketing ethics.

The term is used to describe the systematic use of principles and techniques geared to promote acceptance of a cause or idea. Its main objective is to transform the way a particular public-adopter perceives a social issue and promote behavioral changes to improve the quality of life of a Social Marketing segment populacional.O appropriates knowledge and marketing techniques, adapting itself to the promotion social welfare. Works with clearly defined objectives, measurable goals, research and quantitative and qualitative evaluations, and social development of technologies for specific segments. Search position in the minds of adopters social innovations aimed at introducing, implementing strategies, designs, plans and executes communication campaigns to meet needs that are not being met, establishing new social paradigms. (SOCIALTEC, 2008).

In social marketing, marketing a well-known throughout the marketing population is characterized by political advertising campaigns in various media to know and understand the proposals for a candidate. It is also characterized by the promises and benefits that the candidate offers voters. The politician was "transformed" into a product for marketing, which uses all the tools to promote the name of the candidate and proposals.

There are several trends to marketing, even for services rendered, is called the marketing of services according to Lima Filho (2001), characterized in services in general, whether in leisure services such as clubs, hotels, motels, or in services general public services provided by professionals to repair, repairs, installations, such as auto shops, banks, insurance etc.. It is an operational marketing activities, designed to investigate, obtain and serve the demand for medical professionals.

The internal marketing is marketing that encompasses all other types of marketing creating a bond of affinity between supplier, employee and customer.

The internal marketing is any marketing activity aimed at the satisfaction of the workforce, in order to better serve external customers. The internal marketing is a key competitive advantages that make employees in the main creators of corporate image of organizations. (SlideShare, 2009).

To Brum (2000, p. 34) "Who is able to surprise the consumer is the employee. For this it needs to be well prepared, well informed, creative and happy. ". Brum (2000) adds that internal marketing is to provide education, care and attention to the employee, preparing it and telling it so that it can also become a happy and creative, able to delight, surprise and excite the customer. "


3.1 MARKETING SYSTEM MULTI -LEVEL

According Buaiz (2008) Network Marketing or MLM is a distribution system that moves goods and / or services from the manufacturer to the consumer through a "network" of independent entrepreneurs, and definitely part of day-to- day lives.

Network Marketing is a distribution system or form of marketing that moves goods and \ or services from the manufacturer to the consumer through a "network" of independent contractors. It is a system which eliminates the 'intermediate'. (Marks 1995, p 11)

Based on manual Inspiration Perfume and Cosmetics LTD (2008) can be stated that the Network Marketing ( Network Marketing ) is an integral part of the Direct Marketing, one of the forms of the fastest growing business in recent years. The MLM is open to the world of family businesses and large enterprises as a simple alternative to shorten the distance between the supplier of goods or services and the final consumer. The ease of expansion of network marketing is done on the ground that the sale of products does not require point-of-sale retail (shops where it is needed the presence of seller or clerk), because the distribution system is managed by independent contractors where distributors buy products directly from the company to price the distributor and resells them at list price of sale to the final consumer. The duplication of the network results in business growth, which creates an exponential growth and income potential. "[...] Consists of independent firms at different levels of production and distribution, which join through contracts with a view to achieving greater economies of scale or sales impact than they would get lonely." (Kotler, 1998, p 276)

Among the strategies adopted by most distribution system in Network Marketing, there is a recommendation "word-of-mouth", where the distributor indicates the product or service to another individual, and that person buys the product or service and recommends this others, and so on. This strategy is being used by Traditional Market as an excellent source of spreading your products or services. Given that the consumer is bombarded daily with aggressive sales strategies, such as e-mail ( SPAM ), telemarketing, direct mail, among others. He no longer meets or delete unwanted messages. When someone indicates a product or service he is disarmed and is more open, allowing the company's success.

According Buaiz (1998), the evolution of Network Marketing, Marketing in a general context, is the junction of Relationship Marketing, which focuses on the quality of the customer relationship, and Direct Marketing, which has to be the direct relationship between the seller and client. Therefore, the Network Marketing allows the direct relationship of the distributor (seller) with the client, in order to maintain a quality of relationship between them, as this system is only devoted to the permanence of a direct relationship in the long term.

The concept originated around 1940, the American chemist named Carl Rhenborg, because he thought that the way to gain the distributors was very weak and only earned by selling products. He began to think about how the distribution network, ie for example when we go to the cinema and enjoy a movie we have a natural tendency to refer to a friend how interesting it was and as we like, but the cinema for example, never paid for this reference. Following this thought Rhenborg, decided to create a system where the distributor was also paid for the work done by that person. (OMARKETINGDEREDE, 2009)

Another important differential that has Marketing Network and the Traditional Market is joined Career Plan. There is a compensation plan for direct sales in which resellers can receive gains in two ways. First, resellers can receive compensation for their personal resale of products and services to consumidores.Segundo, dealers can be paid for their purchases or resales of people he recruited and sponsored the plan, and may be paid from the resale of the group or network that was recruited and sponsored by people recruited by him previously. Market Traditional companies have adapted a Career Plan in which the seller receives commissions on sales and personal as he reaches goals established and distributed by the company he climbs the career plan and shall be responsible for one or more vendors. He receives a percentage of sales from them and strives for the success of your team that can grow as it reaches the goals. So if companies reduce the cut-throat competition of the sellers, creating a work environment healthier and more cooperative.

While most companies insist on the traditional market work with middlemen, retailers and mass advertising, direct selling companies grow with very lean structures, without bearing the costs of a complex chain of shops and other fixed costs arising. BUAIZ (1998 p. 22).

But for all this to happen, the big "gun" that has Marketing Network is a constant motivation of its resellers. She is the great driving force that causes an "army" of distributors spreading out everyday products and services from companies they represent. According Buaiz (1998), firms invest in meetings at local, regional, national and international. Which are mainly worked in the motivation of teams with recognition of services rendered to awards, bonuses, profit sharing, among others.

According to the Guide's business Inspiration Perfume and Cosmetics LTD (2008) makes the network marketing sales for companies as it replaces a series of processes that encareceriam products.

Due to ease of access to the consumer and the bonuses offered by MLM companies using this big marketers are consolidated worldwide sales and the level of the traditional system is unmatched.

The MLM market simplifies the relationship between supplier and consumer in order to achieve great success in the process of direct sales. In addition, the consumer is treated as an individual distributors. The company's products are shipped directly to distributors who deliver to customers in hand. With that, the money in the traditional system, was with intermediaries, is now divided by monthly commissions to the distributor and to all nominees.


3.2 The BRAZILIAN MARKET SALES DIRECT

According Buaiz (1998) uses network marketing is based on the direct sales market. The system works as follows: a person affiliated with a multilevel marketing company and is making direct sales of its products. On top of this sales person multilevel marketing company will pass on a percentage of money that distributor. This system has a basic network.

According to the website ( WWW.bembrasileiro.com.br )

Network Marketing is an intelligent system where the distributors, who are ordinary people from different backgrounds and different profiles entrepreneurs, using his network of contacts, relationships and customers, to take certain products or services directly to final consumers, thus avoiding the spending on media and intermediaries used by traditional businesses. The resources saved are then passed on to the distributors themselves, in the form of advantageous bonuses, proportional to the volume of sales generated by your team of distributors.

With sales of products and the number of distributors that join the network every day for the particulars constants as a geometrical projection the number of company profits as well hence increases the profits of distributors.

WWW.bembrasileiro.com.br

Table 1 - geometric progression closed 4x4 matrix proposed by King (2000).

You 4 Total
His 4 His 4l
His 16 4 64
His 64 256
Grand Total 341

Source: POE, 1995, p. 268

In the above table we have the example of a closed die considering four people. If each person bought a product or several products of the company by adding the real value of the network 100 would have sold a total R $ 34,100.00. There is no rule but the percentage was 8% if the distributor who started the network would receive a bonus of R $ 2,728.00.

Because of this geometric progression multilevel system has leveraged sales direct sales market.

Sector is growing double digits for 10 years

The direct sales industry will close 2005 with revenues of around R $ 12 billion. Sales of the 3rd 2005 reached R $ 3.1 billion, 18% more than same period in 2004. The accumulated sales volume from January to September was � 8.6 billion. In 2004, the sector ended the year with a turnover equivalent to U.S. $ 10.4 million. "As we have seen growth in the last quarter, we will close the year at the same levels of expansion. Over the past 10 years, there was one time that we have not grown at a double digit year, regardless of political or economic situation. What we increasingly are studying other retail companies as an alternative to direct sales, "said Marcelo Pinheiro, director of new business of the Brazilian Association of Direct Sales Companies ( ABEVD ). With these numbers, Brazil occupied the 4th place in the world ranking of direct sales from the performance observed in the last quarter, according to World Federation of Direct Selling. The sector generates income to 1.5 million retailers throughout Brazil. (RONDON, 1995)

Second training of 2009 Inspiration Perfume and Cosmetics LTDA, Brazil ranks third in the ranking of direct sales and closed the year 2008 with more than 2 million active dealers that handled about 18.5 billion years.

With the increasing number of companies with the multilevel marketing system in various fields such as perfumes and cosmetics, pages on the Internet, weight loss dietary supplements, among other credit cards every day brings the credibility of a strategy on the rise.

The branch network marketing is rapidly evolving into a gigantic highway distribution, with established infrastructure of trained distributors, information channels of high-tech and even immediate access to foreign markets (Poe, 1995, p. 233).

Today network marketing in Brazil has ceased to be just an utopia many companies have been prominent in the landscape of the Brazilian market. The neglect and mistrust still exist for many but the constant success of some people driving more business every day. With gains of bonuses has enabled the distributors to present the best business plan, motivate its distributors and so boost sales.

It is extremely useful in the system of relationship marketing networks. One can observe that all we advertise something in our day to day, even if not realized.

[...] The 'word-of-mouth' [] according to a survey by Ibope Media [], is still the most sought after by consumers when purchasing a product: 34% say they talk a lot with many different people about products of interest before you make a purchase and 34% agreed that it is quite likely that they can convince other people about certain products with their opinions (HSM, 2008).

People who rely on the distributor, the credibility it will believe in the business and thus join the network. We do this all the time example:

If you combine a pizza to go with your friends and you choose the pizzeria, you're automatically giving a certain credibility that pizzeria. For the pizza, the environment, etc. for attending. If your friends like the pizza, they will automatically do the advertising for the next opportunity for relatives, friends and relationship marketing will be deployed.

In this case there is a network consisting of customers from a person, but this network does not pay bonuses to any agent of the network. The word-of-mouth is one of the "weapons" more effective in selling a product / service or idea.


3.3 MULTILEVEL MARKETING: TREND or fad

The multilevel marketing system often labeled as a utopian system of extra income in recent years has been outstanding both in Brazil and worldwide. Using this system or strategic tool to increase corporate profitability, generate income and employment for the population.

Phone calls at low cost and freight efficient and cheap, video technologies, personal computers and now the Internet, technological advances in the past decades have transformed the business. " Now, the direct sales segment is perfectly positioned to fill the space created by new technologies. Pilzer (2006, p 82).

We may note in the professional scene in the world market from the 80's people started to professionally qualify for the vocation and not to follow the profession of the parents. According to Drucker (2008), with the increase of technology and the growth of businesses and industries, began to be qualified by marriage to work. Today, new opportunities continue to appear and the market evolves and multilevel marketing is more a strategic trend of the market.

Each year, Network Marketing or MLM is becoming a way to make money around the world. In the United States, according to Magazine Success Magazine, more than 14 million people work in full, and another 13 million working partially. This number has been growing very rapidly: about 600 million people a year choose to work with Network Marketing, so that by 2010 69% of the population of the United States has its economic activity at home. (Http://portalmk.spaceblog.com.br/30919/Marketing-de-Rede-Tendencia-Mundial/)

Multilevel marketing is closely related to the pyramid, which is a system where only those who first enter the system benefit and there is no sale of products but a collection of money. According to Costa (2004) system is a pyramid scheme recruiting people, generating income only recruiting new members and collecting the charges, without any actual product or service is movimentado.Portanto, the reward is only with the addition new participants and with these investments, and not for resale or distribution of goods or services with a legitimate business function. Without commercial support, the number of available recruits is finite and, arithmetically, later recruits have the chance to enrich the promoters of the scheme.

Each point in history, we encounter situations that favor one industry or a way of working, in some cases as early in the last century, the privilege of choice of profession was out of reach of most workers.I think until about 1900, even in more developed countries, the overwhelming majority of people followed the father. [...] If your father was a farmer anywhere, you would. If he was a craftsman, you would also be a craftsman. And so on (Drucker, 2008).

In contrast to this statement, the twentieth century in turn, was the era of big companies, because the conditions for this were obvious, such as: high costs and management technologies that are not accessible. This revolution has provided an opening horizon in the choice of workers, there were now other options on the market, but what made this possible was the new technology was used exclusively by large corporations, but not for long.

The changes continued over the decades, and new opportunities have arisen for workers around the world, and a segment was particularly aligned with these changes.

To Pilzer (2006, p 82). "From phone calls at low cost and freight efficient and cheap, video technologies, personal computers and now the Internet, technological advances in the past decades have transformed the business." Now, the direct sales segment is perfectly positioned to fill the space created by new technologies.

With all the changes, the current world has become competitive and the products and services were so very similar. Prices, deliverables, benefits and attitudes can no longer differentiate, given the standardization of manufacturing and distribution. This is where direct sales are unrivaled in the view of the distribution channel.

The companies that will prosper will be those that adopt the direct sales model with independent distributors who focus almost exclusively on intellectual distribution, ie, teaching people about new products and services that will improve their lives (Pilzer, 2006, 83). .

While that arise every day new products, how to make consumers aware that they exist? Vehicles of mass communication have been a great choice, but radios, TV's, newspapers and the Internet itself, have some limitations in the sight of Pilzer (2006, p. 84) "Conventional advertising media are not efficient in propagating what we call information, intellectual challenge - which is essential for new ideas. "

This always happens and has happened to these media because they are one-way channels, there is no interactivity. If you're watching TV in the comfort of your armchair and is challenged to learn about a new product in a commercial, you change the channel if you're reading a magazine goes to the next page, listening to the radio station changes, and so with all the conventional media.

The only active media Pilzer notes are direct sales (2006, p. 84) "The reason why direct sales work so that the conversation is only one person to another is virtually the only way we learn actively."

In the last century, there were large corporations that absorbed all the labor and talent, these companies have developed due to favorable market conditions. Previously the cost of shipping, phone calls, inventory, correspondence, accounting and other factors were huge, only large companies could use these services on a large scale for your business (Pilzer, 2006, p. 76).

In fact, now large corporations are losing ground every day for small businesses. This unprecedented situation is leveraged by some market changes as suggested Pilzer (2006, p. 76):

Things will change. Do you remember the expensive long distance phone calls? Book of incoming and outgoing goods? Very high freight delivery 24 hours? All this is now past.

This speed information exchange, the result of increasingly advanced technologies generate unprecedented phenomenon in the corporate environment as we have observed.

In the corporate world does not speak of anything except in virtual enterprises, defined by Business Week as a temporary network of companies that come together quickly to exploit opportunities transitional ... Directed business, the network is broken (HSM 2008).

Distributors operating in the industry marketing multilevel business have connected to the Internet and this brings a lot of agility and reducing costs and they can talk about your product or service to any prospect in the world.

Another advantage of a virtual enterprise is its ability to appear and disappear in a very fast, because it has no link with corporate divisions and not with government agencies, they last only enough to soak up the opportunity for which they were designed, and the MMN is place in this dynamic business structure, says Poe (1995, p. 232). "Alliances MLM fit perfectly in this model. To use network marketing , a company need not make a standing commitment. "

Formerly it was risky to open your own business. The fortunate situation of being in the shadows, working for a large company, sounded more logical, but with mainly technological and economic changes, Pilzer now points the other way (2006, p. 76) "Today, the real risk is staying in a large organization, because its use is likely to be dismantled in a few years. "

While many people struggle in the traditional system of work passed from generation to generation, those who chose direct sales, they are people first and foremost entrepreneurs, with an accurate view of the market, says Pilzer (2006, p. 2) "The community Direct selling is a group that frequently participates in trends long before the rest of the world. "

The entrepreneur who works with direct sales, has much more power of decision in your business that had 20 or 30 years, he usually makes his choices based not on the past, but in exchange of this information, so it strengthens the point of being more efficient in their jobs than large companies. "The individual entrepreneur today is much more competitive than a large corporation" (Pilzer, 2006, p. 8).

Thus, some people have realized the magnitude of representing a product through the MLM or corporation, where he can have a voice to the point of becoming a member of the company, including suggesting strategic decisions, as he more than anyone can feel the market. Nowadays, we are forced to be entrepreneurs, some more than others, but definitely we are more proactive than before, as highlighted Pilzer (2006, p. 8) "We are now entering the era of entrepreneurship."

MLM as we have highlighted here is a form of direct selling, but requires more focus on the part of the individual entrepreneur, and talents that differ from the rest as we shall see.


concluding remarks

From the work of marketing concepts can observe a distortion in the true sense of marketing that is often associated only as advertising. Marketing is a set of strategies to identify and satisfy consumer needs. That is, marketing is not just propaganda, but the connection of all the strategic actions developed by the company to capture and satisfy your target market.

The marketing in recent years is among the major highlights of current events, present at all times, covering all activities in society, and has constantly bombarded consumers either directly or indirectly.

Marketing can provide various types, work was highlighted the practice of multi-level marketing as a good way to boost sales of a company. The expenses that would be made in marketing the products have become for business gains for the distributor, which to mount a network of distributors receive part of the company's profit on the same network.

A company that adopts the multilevel marketing as a core business value marketing word-of mouth, bet on the relationship of people to make sales.

A Network Marketing company linked with the product, opportunity, a recruitment process easy to duplicate, an attractive compensation plan, and systems that provide a joint effort of all this. We conclude that multilevel marketing is a marketing trend to higher growth and profits for major companies. The company derives a series of intermediaries that would increase the cost of the product and focus on simplicity of marketing products.


References

Copyright 2004 - Liliana Costa Alves Alves Liliana Costa's Master of Business Administration, university professor and consultant companies.

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