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Diffrence between Network Marketing and Digital marketing

Network Marketing and Digital marketing

  • Network Marketing:

Network marketing is a type of business opportunity that is very popular with people looking for part-time, flexible businesses. Some of the best-known companies in India, including AmwayModi-care and Forever, fall under the network marketing umbrella.

Network marketing programs feature a low upfront investment--usually only a few hundred dollars for the purchase of a product sample kit--and the opportunity to sell a product line directly to friend, family and other personal contacts. Most network marketing programs also ask participants to recruit other sales representatives. The recruits constitute a rep's "downline," and their sales generate income for those above them in the program.
Things can get sticky when a network marketing network compensates participants primarily for recruiting others rather than for selling the company's products or services. A network marketing system in which most of the revenue comes from recruitment may be considered an illegal pyramid scheme.

STRUCTURE OF NETWORK MARKETING:

Firstly, manufacturers require several distributors, sub-distributors and dealers in order to create a network marketing structure. Secondly, These distributors procure goods from manufacturers themselves at wholesale prices.
They may either use them personally or they may sell them to other distributors for a profit. This chain continues further. The distributors, thus, will end up marketing goods until they reach customers or else they may become final customers themselves.
Furthermore, these distributors get an opportunity to make some profits from this marketing network. They can receive some commission from manufacturers on the basis of the total volume of goods they buy and sell. Hence, the functioning of these distributors is similar to that of insurance agents.

ADVANTAGES OF NETWORK MARKETING:


  • There are absolutely no limits on the size of the network marketing structure. This happens because companies can tie-up with innumerable people to become distributors. Further, distributors can further c0-ordinate with other sub-distributors to expand the company’s sales.
  • Due to a reliable and robust distribution network that engages customers directly, companies do not need to rely on advertising to market their goods.
  • The structure of distributors also reduces the profit margins of retailers that companies consider as an expense. These margins get passed on to distributors and the companies do not have to bear their burden.
  • Another advantage is that companies do not need to spend a lot of money on storage and distribution. This is because distributors end up bearing these expenses themselves.
  • Finally, this structure allows distributors to earn an unlimited income from their dealings with the company. They can earn an income from their own profits as well as commissions.

DISADVANTAGES OF NETWORK MARKETING:


  • Since manufacturers depend on distributors to determine consumer demand, it can be difficult to predict production targets. They may end up under or over-stocking their products.
  • In this form of business, it is basically the distributors who facilitate delivery of goods to final customers. Manufacturers have a limited role in this regard. As a result, they may find it difficult to control distribution and sales.
  • Digital marketing:

     
Digital marketing trends shows the latest innovations, but here we go back to basics to define digital marketing. This is important since for some in business, particularly more traditional marketers or business owners, 'digital' is simplistically taken to mean 'our website' or 'our Facebook page'. This thinking limits the scope and opportunity of what's managed and it means that activities that should be managed may be missed.

Types of digital marketing:

We prefer to use the terminology "digital marketing channels" rather than "types" as each channel that can be used to reach potential customers can be complex depending on the level of integration and tactics you apply across your digital marketing strategy and campaigns.

The 5Ds of digital marketing:

To understand the importance of digital marketing to the future of marketing in any business, it’s helpful to think about what audience interactions we need to understand and manage. Digital marketing today is about many more types of audience interaction than website or email... It involves managing and harnessing these ‘5Ds of Digital’ that I have defined in the introduction to the latest update to my Digital Marketing: Strategy, Planning and Implementation book. The 5Ds define the opportunities for consumers to interact with brands and for businesses to reach and learn from their audiences in different ways:
  1. Digital devices – audiences experience brands as they interact with business websites and mobile apps typically through a combination of connected devices including smartphones, tablets, desktop computers, TVs and gaming devices.
  2. Digital platforms – most interactions on these devices are through a browser or apps from the major platforms or services, that’s Facebook (and Instagram), Google (and YouTube), Twitter and LinkedIn.
  3. Digital media – different paid, owned and earned communications channels for reaching and engaging audiences including advertising, email and messaging, search engines and social networks.
  4. Digital data – the insight businesses collect about their audience profiles and their interactions with businesses, which now needs to be protected by law in most countries.
  5. Digital technology – the marketing technology or martech stack that businesses use to create interactive experiences from websites and mobile apps to in-store kiosks and email campaigns.
Here is the basic Difference Between Digital Marketing and Network Marketing:-
  • Digital Marketing : - Digital Marketing is all about marketing through high tech electronic devices or internet. In Digital Marketing various digital channels can be used such as Search engines, Social Media, Blogs, Email and other quality websites to connect with their customers. In it a brand or product can also be promote using digital advertising.

  • Network Marketing :- Network marketing is about person-to-person marketing, it works on business model which depends on person to person sales by independent agent or representatives, often working from home. It is a strategy of company that has an asset to distribute their products of course they need to target market to consume.
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