The difference between traditional business model and direct selling, their respective advantages and disadvantages. (professional analysis)

Traditional marketing relies on strict channels, supplemented by a lot of manpower and publicity investment to compete for the market, which is not only time-consuming and laborious, but also expensive. Traditional marketing is a kind of strong marketing. From the perspective of enterprises, it exerts influence on customers through advertising and personal promotion, so that customers are interested in products or services. It is widely spread, the market starts quickly, and it is easy to be recognized by customers, but the investment cost is high, the payment is slow, and the business risk is great. This model is the most widely used, longest-lasting and most famous marketing model in the health industry. A variety of advertising forms and contents have been formed. According to the different advertising media, there are three main branches: the soft text mode dedicated to newspaper media, the radio lecture mode dedicated to radio stations, and the feature film mode dedicated to television. However, from the end of 2007, the relevant state departments began to strictly control the advertising market of medical and health care products, did not allow celebrity endorsements, and the terminals were directly out of stock, strictly controlling the media publicity before and after the Olympic Games. The days of advertising marketing in 2008 were not easy. Traditional product sales, mostly through a series of intermediate links such as general distribution, regional distribution, wholesalers and retailers, can products finally enter the hands of customers. In this traditional sales chain, products not only need to spend a lot of detention time, but also need to establish such a product sales chain, which is by no means a one-off event. Therefore, in the traditional field of commodity circulation, there is often a long time period from the factory to the customer, which is not only not conducive to the rapid reflection of market demand, but also to the rapid recovery of funds.

Direct marketing is a large-scale marketing activity using direct feedback advertising, mail, telephone or other interactive media. Its biggest feature is direct contact with customers, and it is easy to establish relationships with each customer, thus becoming an effective way to keep in touch with customers and cultivate loyal customers. The most controversial issue is the product price positioning, many mice will be self-defeating, and most Chinese people lack understanding of this model. To be exact, direct selling chose the health care industry. According to the statistics of china health care association, more than 80% products of direct selling system are related to health care industry. From the right or wrong of pyramid selling in 1990s to the limited opening of direct selling market in 2005, direct selling has been controversial. Its high entry threshold makes a large number of entrants choose to swim in the "gray zone". After the market adjustment in 2006 and 2007, 2008 should be the year of recovery of direct selling. With the help of the word-of-mouth of direct sellers, it is a quick marketing method to sell by direct selling, and the products enter the hands of customers only through an intermediate link. Moreover, this kind of word-of-mouth communication is growing geometrically. Therefore, products can quickly and comprehensively occupy the market; This is absolutely beyond the reach of traditional marketing methods. On the one hand, direct selling can save sales costs, and on the other hand, it can save promotion costs.