On the Edge of New Marketing Strategies
America’s freedoms and capitalist ideals provide entrepreneurs with a plentiful plate of opportunity to make a living without entering the coporate world. Multi-level marketing (MLM) is one of the methods people forgoing the corporate American lifestyle have found successful. Sometimes known as a pyramid program, MLM is a ground works strategy in which friend referral acts as the primary basis for a sales growth. High school and college students are often targeted as individuals who might be of interest in such a strategy because it is an effective way to make money – if you’re good at it. Reputable companies sporting the MLM strategy include Mary Kay and Avon Products. Although the number of lesser known companies outweigh these successful MLM brand rarities, the companies built on the multi-level marketing strategy have caught the attention from Corporate America’s finest.
Allow Apple to be the first example. By offering free online tutorials and classroom sessions, the world of Apple applications has proliferated into a complex and truly authentic marketing campaign to allow the average user to create their own “App” for profit. Apple appears to be on the perceived cutting edge for just about everything the consumer desires. Through their version of multi-level marketing, they have grown to hold a significant portion of the market share while developing a distinct brand recognition. Many consumers are unaware however, that other, smaller companies have created many of the products Apple distributes before they are revealed by Steve Jobs himself. Apple’s overall success can be attributed to their competitive edge they have developed in image and recognition with their twist of the multi-level marketing approach.
Another example of a company representing Corporate America who created their own version of the MLM strategy is the well known and somewhat controversial, Google Inc. The Google owned Android operating system is run using an open-source software which allows users to customize programs to their liking. Not only is the open-source free for the user, but the general public is able to access open-source applications for free as well. Google’s method does not permit the user to turn a profit, but the flexibility and free access make this an attractive product. Although, to a consumer, the word free should trigger Milton Friedman’s coined phrase, “There’s no such thing as a free lunch.” Google and other open-source software providers are able to turn a profit by providing help-desk support for the users. There is no denying that they provide the help desk good reason. “As the software complexity increases, even I need to use help desk support,” says Bikramjit Singh, IT expert coder for Booz Allen Hamilton.
The evolution of business into the global climate will continue to produce new strategies to gain an advantage over competitors. To the next astute American entrepneur looking to develop their own business and avoid Corporate America, think about how a new small business strategy may fit into a corporate environment. This is not to suggest small business scaled profit is not meaningful; however, there is something to be said for the way companies like Apple have established their mark at a global scale.
Photo courtesy of Flickr.
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