MKT301 Module 2 and 3 discussions

One of the most controversial distribution channel strategies is multi-level marketing. In this method, anyone can become an independent distributor for the product if they pay a membership fee. Distributors earn commission both from selling the product and from recruiting new distributors. In general, distributors recruited into a multi-level marketing network are not trained marketing professional. Instead multi-level marketing companies typically try recruit average individuals with low or moderate incomes who wish to earn some extra money. In turn, these individuals are then encouraged to recruit friends, family members, and coworkers into the network. Well known multi-level marketers include Amway and Herbalife.

Many of you have likely had direct experience with multi-level marketing. Have any of you been a part of a multi-level network? Or has a friend or family member tried to recruit you into one? Or have you purchased a product from one of these types of companies? Explain what kind of experience you might have had, and your overall impression of multi-level marketing.

But don’t just post about any interesting or entertaining stories you’ve had regarding multi-level marketing. As with all of the discussions, relate your experiences to concepts from the background readings. Why do you think this company chose multi-level distribution over other forms of distribution that you have read about? What advantages does multi-level distribution have for this company.

If you haven’t had any direct experience with multi-level marketing, do some research and find a new company that uses this strategy. Does this company seem credible, or does it look sketchy?

For the Module 1 discussion you looked for a ridiculous product. In this second installment of “What were they thinking?!?!” go to Youtube and find the most ridiculous advertisement that you can. Remember that most advertisements you currently see on TV are also on YouTube, including even some old commercials that you saw on TV when you were kid.

Note: it is the advertisement rather than the product that should be ridiculous, as you already gave an example of a ridiculous product for Module 1. Most advertisement you see on TV are for fairly routine products – insurance, cars, restaurants, etc. So focus on advertisements that are ridiculous but the products are somewhat normal.

Share the link to the ridiculous commercial with your classmates and explain why you found it ridiculous. But no matter how ridiculous the advertisement seems, remember that a lot of money was likely spent developing and producing it. So try your best to explain what the advertising geniuses at this company were thinking when they came up with this advertising campaign, and use the terminology and concepts from the background materials in your answer. In particular, do you think the advertisement meant to be informative or a persuasive? See page 8 of the Pearson Tutorial for an overview of the different advertising objectives including informative versus persuasive.