| Unlike most health product network marketing | | | | This cost too gets added onto the price of a product. |
| companies around Ascential Bioscience, produces | | | | But this is just the first stage of the marketing process |
| products that are meant to be consumed by people | | | | after a product leaves a factory floor. There is the |
| interested in toning up their bodies. The Ascential | | | | cost of promotion too which must be considered. To |
| Bioscience range of products contains formulas that | | | | sell a product, it must have a certain demand so that |
| when consumed in conjunction with regimented | | | | consumers will want it and go to retail outlets and buy |
| exercise, promotes the strengthening and | | | | the product. For this, first advertising content must be |
| improvement of muscle performance. The range of | | | | created, which must be run via available media such |
| products has formulas that would suit a wide range of | | | | as television, radio and printed material. This advertising |
| people, from professional athletes (many of whom | | | | performs the process of first creating product |
| consume and endorse the products) to the everyday | | | | awareness, then desire for the product and then |
| person, who’s just looking at becoming healthy. The | | | | demand for the product. These costs add up to |
| nutritional benefits of its product too allow | | | | between fifty to seventy percent of a products price |
| supplementing diets in a positive manner. Ascential | | | | at retail. |
| Bioscience promotes its business via a network | | | | Network marketing companies bypass this entire |
| marketing model. | | | | process though and market products directly to the |
| Network marketing is a non-traditional system of | | | | end consumer via individuals (who may also be |
| marketing. The difference between traditional and | | | | product consumers). The way the system works is |
| network marketing is the fact that where network | | | | for an individual who is already a distributor to sell a |
| marketing is concerned, all promotion and distribution | | | | product to a customer directly (by first purchasing the |
| activities are carried out by individual distributors. | | | | product at discounted rates from the company). The |
| The more traditional system of marketing relies on a | | | | distributor may then make money on the sale of the |
| distribution network that is channel driven. What this | | | | product. The distributer is also enabled by the |
| means is that a manufacturer of a product would | | | | company to enroll, train and recruit distributors to work |
| have to contract with a distribution company to be the | | | | as part of a team (this is the network part). By |
| conduit to move the product after it has been | | | | recruiting a distributor into a second generation level, a |
| manufactured to the shelf of a retail point of sale. This | | | | distributor at the first generation will be given an |
| is accomplished by a distribution company by | | | | incentive. Any sales made by the second or later |
| transporting the product through a series of partner | | | | generation will benefit the first generation distributor too |
| distributor sites, storage locations, wholesalers, and then | | | | (who will make a fee). All these fees and distributor |
| finally, to the retail establishment. This entire process | | | | compensations are paid by a network marketing |
| costs money, which is apportioned and added on to | | | | company like Ascential Bioscience by using the portion |
| the price of a product before it is sold. However, to | | | | of the money that would normally have been used for |
| place a product at a retail establishment’s shelf | | | | advertising to gratify the distributors. |
| also costs money (just like paying rental for space). | | | | |