Business and Marketing

Archive for December, 2010

The business of Multi Level Marketing (MLM) nowadays is something that is common to the people in the world. In fact the MLM business has not been recognized by the world community before. The system Multi Level Marketing (MLM) was discovered in the 1940s by two marketing professors from the University of Chicago. The first product that was being sold is vitamins and food additives at that time. Later, the MLM business is progressing quite rapidly. This proves that the MLM system makes distributing products become relatively more quickly and the company has penetrated the world market. In the expanding of network marketing, MLM companies often refer to members with a variety of terms frequently used as independent entrepreneurs, members, members, dealers, independent business owner, business partners and many other terms.

MLM business currently is a new phenomenon in the business world. Regardless of the pros and cons of the concept of this business, MLM has helped many people improve their living standards and even able to change one’s life to be much better. Behind this phenomenon there are some people who exploit the concept. It turns out to be a way to get advantage for one’s own profit, so that the system of MLM becomes Money Game. In general, the business practices of this money game are more focused on recruiting than selling product.

The victims of the money game are interested in joining a MLM business with an attractive offer. There are things that should be notified at the beginning. Many victims are not informed, so that the information they obtain is not complete. In addition, there is no clear agreement between the members with the MLM company. That becomes the legal side weakness that is exploited by the MLM company to run the money its members. This can happen because as it is still a lack of information about MLM business system to the public. Therefore, people should be aware by seeking information about this business before joining it.

Marketing strategies will be the product of goods and services from time to time. It continues to develop in accordance with the era. Several years ago, the strategy of multilevel marketing (MLM) becomes an excellent way and it is actually still used, although with different packaging. In addition to any MLM, some markets uses discount strategy that is usually held at certain times. In addition, at certain moments, such as before Christmas and New Year Eve, usually buying and selling activity is increasing compared with normal days. The consumptive habits of the society become the opportunity of business. Many people are always interested in a cheaper price that makes this strategy become quite popular and applied at every shop in various cities in the world.

It is actually to be something reasonable in the context of service to provide good service to the buyer. However, on the other hand, it needs to be observed that the implementation of the discount strategy is sometimes not in accordance with the rules that should be. For example, before lowering the price of a product, usually the price is raised first. Thus, the seller can discount the price by 70% so as if the price of these products seems very cheap. Though the seller is actually still obtain a reasonable profit. For this strategy, it is able to bring significant benefits so that the demand increases several times compared to regular days.

This is clear that the marketing strategy is unethical because it set aside the principles of transparency and honesty of the seller. For this reason, people should be wiser in spending the money according to their needs rather than in accordance with their wishes. The public awareness in doing shopping should be higher so that it will be an impact on marketing strategy to be more transparent. So in the end all can enjoy the benefits of buying and selling process in the supermarket.

In practice in the field, many investors are not yet understood in detail about the mechanisms that should be associated with investment in stock markets and the possibility of losses in these investments. Meanwhile, legislation to regulate investment in the futures and operational implementation of the relevant parties to reach a new stock market at a national level is needed. In fact, it is well known that the development of stock markets investment has now spread to areas with the opening of branches and outlets to facilitate communities in the region who want to invest in the futures market.

On the other hand, at the regional level, there is still a lack of local government’s role in licensing and supervision of investment in these futures markets. This is indicated by the number of persons who utilize these investments to get involved as traders to the detriment of investors. In this case, investors are difficult to trace the existence of traders because traders are usually new people while the investors do not understand exactly how they should play in the futures market. Finally, many aggrieved investors must lose money and it is not in small number. For brokerage firms, they can also participate to build and monitor their employees from being used by irresponsible elements. The investors also have to explore in detail on the stocks market with all the risks so that when participating in the stocks market, they have to play their money more carefully. It is expected that there is a greater understanding, especially for investors who want to invest in the stocks market.

Disasters are something that can not be predicted. It can happen anytime and anywhere. The impact of the damage caused by disasters is experienced by the public. In fact, it also affects the business. Many entrepreneurs suffer losses due to infrastructure damaged by the disaster or lost customers because of their purchasing power have fallen dramatically. These conditions also affect the ability of entrepreneurs in repay loans or credit in financing companies or banks. When we observe, many companies go bankrupt because their assets pledged as collateral are seized because their inability to pay the loan.

Many finance companies have ignored the business ethics where they do not have a sense of empathy for the problems of customers. In addition, there are customers who feel a lack of detailed information relating to penalty charges for delinquent payments. Even there are many of those who do not understand the consequences of borrowing these funds, so the financial institution in this case is less transparent to explain the contents of the agreement between customers and finance companies.

In fact, the problem of bad loans to entrepreneurs is certainly not a simple problem. Bad credit will closely associated with the banking or non-bank financial institution in which they will continue to collect loans from them. This will hamper economic recovery in the region that experienced the disaster. In fact, the existence of a venture business is very influential in regional income. To that end, the right solution to solve the problem is with a policy of restructuring and rescheduling loans for entrepreneurs are not too burdened by large regular installments at once that can start improving the management of its business to start again.

In order to make efficiency and effectiveness of transactions, almost all companies are engaged in the financial sector such as banks, insurance, financing using a standard agreement governing the rights and obligations of the parties to a transaction, in this case between the company and the customer or consumer. Standard agreement is an agreement that nearly all points have been standardized by the user and other parties who basically do not have the opportunity to negotiate or ask for changes. Actually, the raw agreement can be legally justified throughout the terms of validity of an agreement that are met as the agreement binds to the ability to make treaties and others. However, in reality, often a raw deal raises several issues related to ethical business practices.

In the agreement, there are several potential problems: first, from the preparation of the deal. Generally the agreement between the company and with customers or consumers has been prepared by the company as a standard, which is then applied generally to all customers or consumers. Because it is compiled by the company, without involving the customer, then the agreement would tend to bias, with more important interests of the company.

Second, related to the subjects who will perform the contract, in the principle of freedom of contract, the parties are free to make or not make an appointment, free to determine with whom the agreement was made, and are free to determine the contents of the agreement. The standard agreement form has been standardized to reduce the implementation of the principle of freedom of contract because its contents have been prepared unilaterally by finance companies. In a position where the bargaining power of the higher financing company, the company can implement policies of take it or leave it. This means that the contents of the agreement is not negotiable, if the customer agrees with its contents, he may take the deal. Meanwhile if the customer does not agree, he should look for other companies.

Third, if the demand for financing by the customer is approved, then the customer does not have sufficient opportunity to understand the contents of the agreement. In practice after a client request is approved, then the firm will “thrust” file standard contract and it is not provided sufficient time for customers to understand the contents of the agreement carefully. More than that, the company emphasizes that the process is easy and fast, and liabilities to be borne by the customer also mild. The three issues must be addressed urgently because it is full of potential problems later on. Generally, companies could suffer losses or the consumer gets unfair treatment.

Business in the field of insurance for the moment is promising to see the opportunities that are still large enough to expand its business into many areas. Judging from the programs offered, it is as profitable with its banking business. Insurance products are also no longer relying on conventional instruments but it has adopted a more modern instrument that combines elements of protection and investment. In line with these developments, the insurance business is also adjusting to the international insurance industry management standards so that it is increasingly open, no longer the monopoly player in the country.

Holding foreign insurance companies to enter is the usual thing. For some companies, it would benefit because in addition to strengthening the capital, it also increases the brand image for the public since they begin to believe in the insurance company. So from year to year, the insurance business becomes more competitive. Seen the positive side, it is expected to spur economic growth at the macro level.

Insurance is one effort to help people who experience things that are not desired when a customer suddenly face unexpected things. This is very useful to protect them from various risks that arise from accidents, disasters and other potentially make them lose their assets and make them unable to perform activities. Insurance also can be called with the savings. For example, if you use health insurance, you do not have to bear the costs of hospital care because it is already covered by your insurance company. That is why this service is a promising business for the public mindset that is more advanced.