What is ‘Targeted Marketing’
Targeted marketing is a strategy that some direct sales companies use to encourage their existing distributors to recruit new distributors by paying the existing distributors a percentage of their recruits’ sales; the recruits are known as a distributor’s “downline.” All distributors also make money through direct sales of products to customers. Amway is an example of a well-known direct-sales company that uses multi-level marketing.
Targeted marketing identifies an audience likely to buy services or products and promotes those services or products to that audience. Once these key groups are recognized, companies develop marketing campaigns and specific products for those preferred market segments.
Target the right customers with the right message at the right time, and you just might have a shot at engaging them. But, if you do it correctly, you won’t engage those who don’t care or agree with the message. And that’s ok.
BREAKING DOWN ‘Targeted Marketing’
Targeted marketing (similar to Multi-Level Marketing) is a legitimate business strategy, though it is controversial. One proble
m is pyramid schemes, which use money from new recruits to pay the people at the top, often take advantage of people by pretending to be engaged in legitimate multi-level marketing. Pyramid schemes can sometimes be spotted by their greater focus on recruitment than on product sales.
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