Mouth Advertising & Network Marketing - Free & Paid

We, the human beings have one habit in common, if we like or dislike something we appreciate & depreciate it among our friends and familiars. Today I bought an i pod for me, it is really beautiful in design & appearance, when I shown it to my friends, the first question was "from where you bought this?. I told them that I bought it from Nehru place, secondly they asked about the shop and resulted into buying the same. Here the shopkeeper didn't pay anything to me but what I did, I promoted the shopkeeper free of cost.

Mouth advertising is a free of cost advertising medium for business organizations depending on their quality of products and services. Whenever a person would be satisfied he would definitely promote the product & the company without expecting money from the promoted company. Now for a moment just think, you told about a product to 10 people free of cost, and what if you would be paid for that. Yes, you will tell more than 100 a day. Based on this concept, company started to pay commissions on each sale to anyone for promoting their products among their friends & relatives.

This concept brought a new way of advertising & promoting a product called " Network Marketing. This really doesn't cost anything to advertisers as they pay the network marketers on the sales volume generated by them. You must have heard the name of Amway. Amway is an MNC company that market their products through network marketing followed by HUL, Oriflame, Modi group. Network marketing really worked across the world but was successful to a limited extent (FMCG only).

Mouth advertising and network marketing both are based on same concepts of advertisement but one is free and other is paid. So you are the better judge to choose between them. So far, you would have noticed that some how advertising & marketing both are similar in few ways. These both tools are used to spread word about products & services.

Advertsing & Marketing : The Great Tools For A Business.

Advertising always remained an integral part of any business whether its a small scale, medium or giant business structure. Each and every business groups use different kinds of advertising methodologies to promote their products among customers. No doubt, the monopolistic market structure has reduced a great extent but it lead to an extensive competitive market. Here is there were 1000 of customers, you may find more than 500 product manufacturers satisfying these customers' needs.

So, it becomes a confused situation for customers to decide with which products they should move on. For example if we talk about FMCG (Fast Movable Consumable Goods) , we would find, HUL (Hindustan Unilever Ltd), Procter & Gamble, ITC & other renowned brands having a large market capitalization in FMCG market. This really depicts the competitive face of market structure. This is not constraint only to FMCG products only, even the same level of crowd can be seen in Technology, Engineering, Pharmaceuticals & other categorized industries.

Here advertising plays a vital role in making customers aware of the products. So all these business groups apply various of advertising & marketing strategies to have greater exposure & large number of satisfied customers base resulting into a large sales volume. So far the traditional way of advertising say Print Media ( Newspapers, Magazines, Brochures), Electronic Media (Televisions, Radios) were available in 90, but the arrival of internet broaden the application of advertising & promotions.

Once web language arrived and people started interacting with internet media, then it was found that advertising may have a new approach and that can be Internet Marketing. The best example of Internet Advertising is Google Adwords. As people started looking for anything on Google it became the worlds' no. 1. search engine where you can search for any information that you need. Increasing number of Google users attracted big companies who always remained in some new source of advertising to reach a large group of audiences.


Apart from Google Adwords, companies started peeping into the personal emails of the customers through e-mail advertising , e-zine advertising, affiliate marketing & other internet based mediums of advertising & promotions. So, start from the beginning we saw a dramatic change in the forms of advertising. According to a site the internet based advertising was worth $ 38.8 million. And the accelerated pace has added more worth to advertising market.