Question

Samantha works as a marketing manager for a cosmetics manufacturer. She plans to suggest a specific type of business model that will lead to increase in the company’s sales to the business’s owner. She wants to motivate the company’s employees to recruit their friends, neighbors, and other contacts to carry out direct sales for the company’s products. According to Samantha’s plan, the company’s employees will receive a percentage of the sales revenue that the company makes through the new recruits. Which business model does Samantha have in mind?
A. franchise
B. subscription
C. multi-level marketing
D. upselling
E. freemium

Answer 1

A) Franchise is a business model Samantha have in mind.

Answer: A) Franchise

Explanation:

Franchise is the business model which is adopted by many business organisation for the purpose of business expansion. Where the other new business holders carry out the business using the company's procedure, brand name etc.

Under the same name and business line, the business is carried out by the new reciters and a amount of their profit is earned by the owner of the business. Here in this case Samantha is using Franchise business model.

Answer 2

Answer:

Multi-level marketing ( C )

Explanation:

Multi - level marketing is a marketing  employed by companies the enable the sale of its products and services at faster rate than regular rate. in this method of marketing the services of non salaried workers ( third party or external workers) is employed  to generate the sales and revenue using the MLM ( multi level marketing ) method.

The participants in this type of marketing procedures are paid by the company on a percentage basis i.e based on the amount of sales made by the participants on an agreed term.