Multi Level Marketing/Network Marketing a form of Social Marketing

As we understand Social Marketing is multi focused concept of marketing where assimilation of marketing principle is utilized to achieve and bring social change in our society. The under lying principle thought behind the above mentioned form of marketing is to change the socioeconomic pattern of major part of society by adapting to market different new products, services, ideas or concepts. This in turn would lead a very healthy and above average standard of living of most of the people.

This form of marketing was proposed and highly advocated by Philip Kotler and Gerald Zaltman to sell products, services, ideas or concepts to certain specific section of society or in other words targeted customer. The basic emphasis on this form of marketing was given because large portion of society was to benefit.  

Now at first we have to understand “What Multi Level Marketing/Network Marketing is?”

Multi Level Marketing/Network Marketing is a form of marketing system where companies market their Products, Services, Concepts or Ideas to the respective ‘Customers’.  Literally this happens in all the marketing system but the basic difference is that there is a compensation system for the ‘Customers’ who are prepared to promote the Products, Services, Concepts or Ideas to the new customers. We can say it the other way, bring the new customers to the company and get the financial incentives and other benefits.

Almost identical relationship exists between Social Marketing and Multi Level Marketing/Network Marketing which is discussed below.

The socioeconomic pattern of major part of society changes because the process of Multi Level Marketing/Network Marketing shares its profit with the customers. This system removes all the middle and in between processes and channels adopted during the distribution of Products, Services, Concepts or Ideas to the end user. The in between process in traditional marketing system is that it has to distribute the commission which is given to the following channel partners, such as Clearing & Forwarding Agent, Advertisers, Distributor, Whole Seller and Retailer. This increases the cost of Products, Services, Concepts or Ideas which is added, hence the customer has to pay, but in Multi Level Marketing/Network Marketing the difference in the accrued cost and net cost is distributed to the sales person known as Associate or Distributor.

The Multi Level Marketing/Network Marketing system gives an opportunity to establish a business unit for an individual without having infrastructure, arrangement of keeping stocks, inventory management, over head expense and has many other important factors also. All the innovation, delivery and logistics regarding Products, Services, Concepts or Ideas are done by the Multi Level Marketing/Network Marketing Company and the individual unit has to promote by word of mouth. The sales domain is also wide open, no territory restriction as it happens in traditional marketing system.

This process of marketing where a commission is given for the promotion or sale is mostly suited for all income groups because these activities are taken on part time basis with no hard and fast rule as is applicable in the society in regards to business or office activity. People start earning extra income which in turn raises their level of understanding of the Multi Level Marketing/Network Marketing system and it is known and understood by all that ‘Money is the best Motivating Factor’. Ultimately a socioeconomic impact takes place at a slow speed in the society. Hypothetical change is not possible but gradual changes do take place in the lives of few people, who dedicate themselves to work in a systematic manner.

Ethical Multi Level Marketing/Network Marketing Company with its unique system has the possibility to change the interface of the society which is the base essence of Social Marketing. This system has all the features through which a socioeconomic impact in the society can be created.

A complete socio-economic scene develops in Multi Level Marketing/Network Marketing system which revolves around ‘give and take’ relation between company and its customers and both leverage cooperation for earning respective share of profit.

When companies are able to promote their Products, Services, Concepts or Ideas as per the law of the land keeping their social obligation intact, the social marketing under the privileged guidance of Multi Level Marketing/Network Marketing industry and government rules and regulations will not only survive but would improve and bring drastic changes from all fronts in the society.