Exerting Internal Marketing Into Directing Marketing

The business model of direct selling,was introduced in China in the 1980s, and has experienced rapid development, a period of confusion and out of control, and the government's comprehensive rectifications. Until 2005, the State Council promulgated the "Administration of Direct Selling Regulations," and "Prohibition of Pyramid Selling Regulations", which becomes the start of the supervision and regulation of the Chinese government. Taking the particularity of Chinese direct selling market and complexity of the supervision of direct selling into account, only the single-level direct selling activity is allowed according to the national laws and regulations at this stage. The prevailing classic incentive systems -----"Absorption of the subordinate","Paying bonus based on the teamwork." etc .from the Multi-level direct selling, in the international direct selling industry, can not be employed at the present stage in China. How to make the appropriate adjustment of operational strategy, so as to encourage the distributors, is the urgent problem needed to be resolved confronting the direct selling enterprises. This paper attempts to introduce the theory of internal marketing into managerial transformation of the direct selling enterprises, through probing into the employing of the internal marketing tools into the management system of the direct selling, designs the distributor's incentive model and the cultivation of customer-oriented concept, and explore the new managerial approach and incentive model in the direct selling enterprises.