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The IUP Journal of Brand Management :
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Networking is an art; with it great things can be achieved, and without it even smaller things will become difficult to comprehend. As a business venture Network Marketing has taken different nomenclatures— Multilevel Marketing, Retailing, Customer Centric, and Relationship Marketing, and all these need to be nurtured, tested and translated in the exact sense as they should be. But often the concept is misunderstood and hence the ramifications are many. The negative connotations are more than the positive understanding of the concept. This study is undertaken to have a better understanding of Network Marketing and to understand the perceptions of the existing customers. Several misconceived notions are cleared and the positive framework is presented here as an educative measure.

Network Marketing is the fastest growing sector of the direct selling industry worldwide. In 1988, the total revenue generated by $12 bn, at present the direct marketing industry in India is approximately Rs. 16 bn. This constitutes an increase over the previous year.

A business, in which a distributor works through a network mechanism wherein relationships are built and then products are sold, is generally termed as Network Marketing. This concept is a better version of retailing, in the sense that a range of products are offered to the members and these members in turn build relationships, which extend the chain of networks.

Network Marketing is a relatively new concept in India. The success of companies like Amway, Oriflame and Tupperware in network marketing has changed the paradigm of the Indian consumer market. While almost all the Fast Moving Consumer Goods (FMCG) companies are complaining of slow pace of growth in the domestic market, these companies have shown exponential growth in sales and profits.

 
 
 
 

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