What are the companies that have changed from the original traditional marketing to network marketing?

In network marketing, the overall concept of the product can be divided into five levels:

(1) the core benefit level, refers to the basic utility or benefit that the product can provide to the consumer, is the basic utility or benefit that the consumer really wants to buy.

(2) The tangible product level. Is the product in the market when the appearance of the specific material form, the main performance of the home aspects: quality, characteristics, style, trademark, packaging, is the material carrier of the core benefits.

(3) Expected product level. In network marketing, the customer as the dominant position, consumption shows the characteristics of personalization, different consumers may not be the same product requirements, so the design and development of products must meet the customer this personalized consumer demand.

(4) Extended product level. Is provided by the producer or operator of the product buyers have demand, mainly to help users better use the core benefits and services.

(5) Potential product level. Is in addition to the extended product level, by the enterprise to provide products that can meet the potential needs of customers level. It is mainly a value-added service of the product, it is the main difference with the extension of the product is that the customer does not have the potential product level can still be very good to use the customer needs the core benefits of the product and service.

Product classification

Products sold on the network, according to the different nature of the product, can be divided into two categories: namely, physical products and virtual products.

1 Entity products

The classification of products sold on the Internet into two categories, entity and imaginary, is mainly based on the form of the product to distinguish. Entity products are material products of specific physical shape. The process of selling physical products on the Internet is different from traditional shopping. Here there is no longer the traditional face-to-face way of buying and selling, and interactive communication on the Internet has become the main form of communication between buyers and sellers. Consumers or customers through the seller's home page to examine its products, by filling out forms to express their choice of varieties, quality, price, quantity; while the seller will be face-to-face delivery changed to mail products or home delivery, which is quite similar to mail-order products. Therefore, Internet sales is also a kind of direct sales method.

2 imaginary products

The essential difference between imaginary products and physical products is that imaginary products are generally intangible, even if the performance of a certain form is also embodied through its carrier, but the nature and performance of the product itself must be manifested through other means. Void products sold on the network can be divided into two categories: software and services. Software includes computer system software and application software. Online software sellers can often offer a trial period of time to allow users to try out and comment on the software. Good software quickly attracts customers who fall in love with it and pay generously for it.

Characteristics

In general, products suitable for sale on the Internet usually have the following characteristics:

(1) Nature of the product. As online users have certain requirements for technology in the early stage, so most of the users surfing the Internet are related to the network and other technologies, so it is best to sell products online with high technology or related to computers and networks. Some information products such as books, music, etc. are also more suitable for online sales. There are also some intangible products such as services can also be realized through the role of the network remote sales, such as telemedicine.

(2) product quality. The virtual nature of the network allows customers to break through the limitations of time and space to achieve remote shopping and direct ordering on the Internet, which makes the network buyers can not try or only through the network to try the product before purchase.

(3) Product Style. Products marketed through the Internet to countries and regions around the world should conform to the customs, religious beliefs and education level of that country or region. At the same time, due to the individual needs of online consumers, the style of network marketing products must also meet the individual needs of buyers.

(4) product brand. In network marketing, producers and operators of the brand is equally important, on the one hand, to get the attention of the viewers in the vast sea of information in the network, must have a clear, eye-catching brand; on the other hand, due to the online buyers can face a lot of choices, while online sales can not be a shopping experience, so the buyers are more concerned about the brand.

(5) Product packaging. As a product for the global market operated through the Internet, its packaging must be suitable for the requirements of online marketing.

(6) Target market. The online market is to network users as the main target market, the products sold online to be suitable to cover a wide geographical range. If the target market for the product is narrow, traditional marketing strategies can be used.

(7) Product price. The Internet as a tool for information transfer, in the early stages of development is the use of **** enjoy and free strategy developed, online users are more agreeable to the characteristics of online products cheap; on the other hand, due to the cost of sales through the Internet is lower than other channels of products, products sold online are generally used in the low price pricing.

Marketing strategy

New network marketing, promotional strategies have the following ways:

1, online discount promotion discount is also known as discount, discount, is currently the most commonly used online a way of promotion. Because Internet users are far less enthusiastic about shopping online than in traditional shopping venues such as shopping malls and supermarkets, the prices of online goods are generally lower than when they are sold in the traditional way, in order to attract people to buy. Because online sales of goods can not give a comprehensive, intuitive impression, and can not be tried, touch and other reasons, coupled with the complexity of the distribution costs and payment methods, resulting in a decline in the incentive to online shopping and ordering. Discounts of a relatively large magnitude can motivate consumers to try online shopping and make purchasing decisions. Most of the goods sold online have different levels of price discounts.

2, online gift promotions gift promotions in the online application is not too much, in general, in the new product launch trial, product updates, against competing brands, to open up new markets, the use of gift promotions can achieve promotional effects.　Advantages of giveaway promotion: it can enhance brand and website awareness; encourage people to visit the website more often to get more information about the offer; summarize and analyze the marketing effect and the response of the product itself according to the degree of enthusiasm of the consumers to ask for the add-ons, and so on.

3, online sweepstakes promotions Sweepstakes promotions are one of the more widely used forms of online promotions, is the majority of websites are happy to use promotional methods. Sweepstakes promotion is a person or a number of people to get more than the cost of participation in the activity as a means of promotion of goods or services, online sweepstakes are mainly attached to the survey, product sales, expanding the user base, celebrations, the promotion of a particular activity, and so on. Consumers or visitors get the chance to win prizes by filling out questionnaires, registering, purchasing products or participating in online activities.

4, integral promotion Integral promotion on the network than the traditional marketing methods to be simple and easy to operate. Online points activities can be easily realized through programming and databases, and the results are highly credible and relatively easy to operate. Points-based promotions generally offer higher-value prizes, which consumers can earn by making multiple purchases or participating in an activity multiple times to increase their points. Points promotions can increase the number of times Internet users visit a website and participate in an activity; they can increase the loyalty of Internet users to a website; they can increase the visibility of an activity, etc.

5, search engine marketing: According to CNNIC "2007 China Search Engine Market Survey Report" shows that 44.71% of Internet users often use (multiple times a day) search engine, the daily use of a search engine users accounted for 17.2%, that is, the number of daily use of the search engine users as high as 69.4%, which means that more than half of the Internet users began to rely on search engine use.

Portfolio strategy

There are two concepts that have to be mentioned when it comes to portfolio strategy: product line and product mix. Product line refers to a group of products that are closely related in terms of technology and structure, have the same functionality, and have different specifications to meet similar needs. Product mix refers to the combination of all the product lines operated by an enterprise, including three factors: the breadth of the product mix, depth and relevance, the three factors constitute different product mix. Product mix strategy refers to the enterprise according to its business objectives, its own strength, market conditions and competitive situation, the breadth, depth and relevance of the product mix of different combinations. Because the breadth, depth and density of the product mix has a close relationship with the sales performance, therefore, in network marketing, to determine which products or services, clear product interrelationships, is the main content of the enterprise product mix strategy.

Combination strategy

Also known as the full range of comprehensive type of strategy, that is, to expand the breadth and depth of the product portfolio, increase the product range or project, expand the scope of business to meet market needs. This will be conducive to the comprehensive utilization of enterprise resources, expanding the scale of operations, reduce operating costs, improve enterprise competitiveness; conducive to meet a variety of customer needs, access and occupation of multiple market segments. However, expanding the product portfolio strategy requires enterprises to have multiple distribution channels, using a variety of promotional methods, the enterprise resource conditions require higher.

such as Amazon in the steady occupation of the book this main commodity market, Amazon began to increase the new business varieties, its business scope has been successfully expanded from books and audio-visual products to other lucrative commodities. in November 1998, Amazon opened the audio-visual and gift store, the goods from the game disks, Sony Walkman heard watches and Barbie dolls. In late 1998, Amazon purchased two companies with new Web technologies in California and Boston for $280 million to help it expand its Internet marketing business.

The strategy of reducing the product portfolio refers to reducing the breadth and depth of the product portfolio, reducing a number of product lines or items, concentrating on a series of products or a few product items, and improving the level of specialization in order to obtain more profits from operating fewer products, so it is also known as the market-specific strategy. The strategy is conducive to reducing the occupation of funds, accelerate capital turnover; conducive to advertising and promotion, distribution channels and other target concentration.