With the entry of MNCs in India, a new concept ofmarketing has gained momentum, especially in the field of consumer goods. TheInternet is playing a key role in global marketing system to bring consumergoods direct from producers to consumers...


The Recession in the global economy has compelled theeconomists to think over various means to combat unprecedented problems beforethe agricultural and industrial sectors, especially in the underdeveloped anddeveloping countries.


It is strange that millions of people throughout the worldare victims of starvation despite surplus production of food grains indifferent countries. India itself is an example of such a situation. Politicalrivalry among the rich in developing countries has left the innocent people todie or suffer for no fault of their own.


In the industrial sector, a lot of changes are taking placeevery day with increasing output and decreasing demands. Industries have comedown heavily on cutting down workforce and limit production. Survival ofindustries is at stake if such practices are allowed to continue. Agitationsagainst such practices are continuing in almost all the countries demandingrehabilitation of affected people. No solution to the problem is in sight asyet.


Meanwhile, multinational companies (MNCs) having an accessto the global markets are paralysing the functioning of indigenous industries.Drastic changes in marketing practices have rendered millions of people joblessin recent years. Exploration of human resources has begun taking advantage ofprevailing situation.


With the entry of MNCs in India, a new concept of marketinghas gained momentum, especially in the field of consumer goods. The Internetservices are playing a key role in global marketing system to reach out consumergoods direct from the producers to the consumers. The idea behind the system isto eliminate middlemen between the manufacturers and the consumers and toprovide maximum assistance to consumers in getting standard goods atcompetitive prices.


There is a widespread network in the country providing fullor part time employment to the educated unemployed youths who are easilyattracted by the promises of hefty remuneration for their services. Theorganisers of the network have gone a long way encouraging achievements in thefield of marketing by creating a large workforce for introducing the productssaid to be having global standard.


The new concept in marketing does not insist on traditionalsales practices adopted by Indian manufacturers of supplying their productsthrough agents and dealers. Its sole motive is to change the habit of consumersby going for top class products in the world at cheaper and competitive prices.It claims that by eliminating middlemen, the benefit is directly passed on to theconsumers. Further, the prices quoted by the MNCs have uniformity on globalbasis besides the quality.


Stress is given to sponsor more and more people and bringthem in the network fold. Performance is considered as basis for seniority ofnetwork personnel. Because of the team work, the benefit is shared in asystematic way among the members. The seniors get better results for theirefforts to initiate and bring more people under the system. The benefits arecredited to respective accounts. The entire team keeps in mind the aims andtargets to influence the consumers to go for the products under the network.


Association of an individual in the networking does not costmuch on the face value. It requires only an amount to cover-up the cost of theface value, samples and literature pertaining to the products meant formarketing. But the extravagant expenditure for attending the business buildingseminars, weekly sales promotions meetings, which take major portion ofexpected earnings of the participants go unheeded. In fact, the networkmarketing system has created a team of 'confused persons', who wish to be richin the shortest span of time without going into deep root of the scheme.


This system is creating a new class of middlemen by engagingyoung people, offering lucrative commission and bonus on their performance andby bringing new members into the network family. As the family grows, theincome of members soars. The impact of income of network personnel ultimatelyfalls on the purchase made by the consumers and accordingly the prices are kepthigher to accommodate the commission and bonus payable to the network members.


It is difficult to convince the consumers under the presenteconomic scenario in the country where a large number of manufacturers claim tosupply standard goods of similar quality at the most competitive prices. It isyet to be seen how well the network marketing concept works. A number oforganisations have come into the field and claim to have good response in themarket.


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