Market Multiplication, Direct Marketing and the Marketing Mode of the Health Food Industry

Abstract

The market multiplication theory includes the multiplication of market, time and benefit, and the direct marketing is based on this theory. Health food industry can adopt the mode of direct marketing, because the industry possesses characters of low production cost, high circulation cost and lots of users. The marketing mode, product promoting method and employee salary system of Amway Company which manages businesses including the health food production can be references for the direct marketing enterprises in the health food industry. Keywords: Multiplication, Direct marketing, Health food industry, Marketing modeWith the development of social economy and the improvement of living level, human consumption concept and health concept have been changed largely. Customers' consciousnesses of self-health are increasingly strong, and their demands for the health food are higher and higher, which offers an important chance for the development of the health food industry. The health food market of China is a market with large developmental potential. But the problems such as the low level competition, the emphasis of advertisement and the bad industrial reputation seriously restrict the healthy development of the industry.The health food industry generally adopts the sales mode of channel distribution, which operates through two advertisement operation modes including manufacturer advertisement extension and regional packaging extension, and has serious problems of sales management and channel efficiency. With the changes of exterior marketing environment including gradual improvement of national policies, gradual maturations of the media and the public, the subdivision of the market and gradual sense of customers' behaviors, the traditional marketing mode in the health food industry is facing serious menace and challenge. The change of competitive structure also makes the validity of the present marketing mode of the health food industry become worse and worse, so to obtain long-term development, enterprises must quest for new developmental mode. Therefore, the direct marketing based on the market multiplication theory many be a good marketing mode. Analysis of the market multiplication theoryThe multiplication theory mainly studies the problem that how the factors of people, thing and matter multiply under the situation of geometric series, and when it is applied to the market, a new branch, the market multiplication theory is formed.The market multiplication theory studies that how to rapidly enlarge the product market through the geometric series theory in the process of product distribution, and how to change the traditional all levels retail system into a new marketing system taking the human relation as the network base. The market multiplication can be divided into three multiplications from three aspects. The multiplication of the marketThe direct marketing market is established based on the geometric series principle of the multiplication theory. Supposed that one direct marketing company develops it...