Question

Margaret sells a high-end range of cosmetics. All her customers are her family members and friends. She sells these products through an informal gathering at her home, where she demonstrates the products and explains how to use them. Some of her existing customers share their experiences and list the benefits of the product. This type of personal selling is known as:

a. indirect selling.
b. network marketing.
c. inside selling.
d. over-the-counter marketing.

Answer 1

The answer is: B) network marketing.

Step-by-step explanation:

Network marketing is used by many well known brands like Tupperware, Avon, Amway, etc.

Network marketing business models require a distributor network in order to build its business. Network marketing usually works like multilevel marketing where payouts occur at more than one level.

Many times network marketing companies are seen as illegal schemes, but that is not necessarily true for all of them.

Some network marketing companies have yearly revenues of billions of dollars, like Amway (8.6 billion), Avon ($5.7 billion) and Tupperware ($2.26 billion).