Ugwoke Oluchi C.

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DN : CN = Webmaster’s name

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Ugwoke Oluchi C.

Faculty of Social Sciences

Department of Marketing

EVALUATION OF THE USE OF NETWORK MARKETING IN INCREASING CLIENTELE BASE FOR FOREVER LIVING PRODUCTS

ANIAKUDO, CHINWE STELLAPG/MSc/05/45396

i

: Content manager’s Name

Webmaster’s name

a, Nsukka

Faculty of Social Sciences

Department of Marketing

EVALUATION OF THE USE OF NETWORK MARKETING IN INCREASING CLIENTELE BASE FOR FOREVER LIVING PRODUCTS

ANIAKUDO, CHINWE STELLA

ii

EVALUATION OF THE USE OF NETWORK

MARKETING IN INCREASING CLIENTELE BASE FOR FOREVER LIVING PRODUCTS

BY

ANIAKUDO, CHINWE STELLA PG/MSc/05/45396

A RESEARCH PROJECT REPORT PRESENTED TO THE DEPARTMENT OF MARKETING

FACULTY OF SOCIAL SCIENCES UNIVERSITY OF NIGERIA, ENUGU CAMPUS

ENUGU

IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF MASTER OF SCIENCE DEGREE IN PUBLIC

RELATIONS

iii

JULY, 2013

APPROVAL PAGE

The undersigned approved that they have read and

recommended for acceptance, this project research report

titled: EVALUATION OF THE USE OF NETWORK MARKETING

IN INCREASING CLIENTELE BASE FOR FOREVER LIVING

PRODUCTS submitted by ANIAKUDO, CHINWE STELLA, with

registration number: PG/MSc/05/45396 for the award of

Master of Science Degree in Public Relations.

_________________________ ____________________ PROF. NNABUKO DATE Supervisor

_________________________ ____________________ DR. A. E. EHIKWE DATE HOD _________________________ ____________________ Dean DATE

_________________________ ____________________ External Examiner DATE

iv

v

CERTIFICATION

This is to certify that Aniakudo, Chinwe Stella a post graduate

student in the Department of Marketing with Registration

Number PG/M.Sc./05/45396 has satisfactory completed the

research work for the award of Master of Science (M.Sc.) in

Public Relations.

vi

DEDICATION

To God Almighty

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ACKNOWLEDGEMENTS In a very special way, I wish to express my profound gratitude

to my supervisor, Prof. Nnabuko –for painstakingly reading

through my work, correcting, guiding and directing. Her good

disposition contributed significantly towards the successful

completion of this work.

My appreciation also goes to my Head of Department as well

as all other lecturer whom I passed through during the course

work. I am most grateful to you all.

Finally, may all glory, power and majesty be ascribed to the

name of our Lord and Saviour Jesus Christ.

Aniakudo, C. S. PG/MSc./05/45396

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TABLE OF CONTENTS

Tile Page: - - - - - - - -

Certification Page: - - - - - -

Approval Page: - - - - - - -

Dedication: - - - - - - -

Acknowledgements: - - - - - -

Table of Contents: - - - - - -

List of Tables: - - - - - - -

Abstract: - - - - - - - -

CHAPTER ONE: INTRODUCTION

Background to the Study: - - - - -

Statement of the Problem: - - - - -

Purpose of the Study: - - - - -

Significance of the Study: - - - - -

Scope of the Study: - - - - - -

Research Question: - - - - - -

Hypothesis: - - - - - - -

CHAPTER TWO: REVIEW OF RELATED LITERATURE

CHAPTER THREE: RESEARCH METHODOLOGY

Research Design: - - - - - - 25

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Area of the Study: - - - - - - 25

Population of the Study: - - - - - 26

Sample and Sampling Techniques: - - - 26

Instrument for Data Collection: - - - - 26

Validity of the Instrument: - - - - 27

Reliability of the Instrument: - - - - 28

Method of Data Collection: - - - - 28

Method of Data Analysis: - - - - - 28

CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS

Research Question 1: - - - - - 30

Research Question 2: - - - - - 31

Research Question 3: - - - - - 32

Research Question 4: - - - - - 34

Research Question 5: - - - - - 34

Hypothesis: - - - - - - - 36

Summary of Finding: - - - - - 37

CHAPTER FIVE: DISCUSSION, SUMMARY, CONCLUSIONS

AND RECOMMENDATIONS

Discussion of Findings: - - - - - 38

Summary of Findings: - - - - - 41

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Conclusions: - - - - - - - 42

Recommendations: - - - - - - 43

Limitation of the Study: - - - - - 43

Suggestion for Further Study: - - - - 44

References: - - - - - - - 45

Appendixes: - - - - - - - 48

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LIST OF TABLE

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Abstract

The evaluation of the use of network marketing in increasing the clientele base in respect of Forever Living Products was assessed. This was carried out by examining how network marketing addresses the issues of unsold products, price fluctuation, inconsistency in the production of new products, boost competitive strength of new products and handle the problems of marketing expansion. A sample size of two hundred and sixty seven (267) was arrived at from a population of eight hundred (800) retailers, dealers and customers of Forever Living Products in Enugu and its environs. Data was collected through survey research design by means of questionnaire. The questionnaire was validated by specialist in data analysis and finally approved by the supervisor, while the reliability of the instrument was measured using the split half technique. Data collected were collated and analyzed using simple percentage while the hypotheses were tested using sample proportion statistics. Each null hypothesis was rejected on the criteria that the calculated value is greater than the table value of 1.96 at 5% level of significant. Results indicate that unsold products are usually great with a response rate of 78.57%, and that prices of the products do not fluctuate (100%). Although network marketing is yet to be implemented in the sales of Forever Living Products it has the potentials of addressing the inconsistency in the production of new products as well as been capable of boosting the competitive strength and market expansion of Forever Living Products. The research therefore concludes that network marketing have the capacity of bringing Forever Living Products back into perfect competition and thus recommends its incorporation into the marketing of Forever Living Products.

1

CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

For over a hundred years now, during which period science

and technology have been revolutionizing all aspects of human

life and experience, modern management has not only gone

through a series of metamorphoses but it has also played a

strategic role in that revolution. The continuous process of

identifying human needs and wants and apply human

knowledge and skills in converting available resources or raw

materials into what is required to satisfy the felt needs and

wants of each society has been made possible only through

the art and science of managerial and entrepreneurial

leadership and improved technology.

It can be said that the major distinctive characteristic between

the haves and have-nots of the world today lies in their relative

capabilities to develop and utilize their human and non-

human resources. Obidaiah (2007:13) explains that the

simplest explanation is that network marketing is a method of

marketing that utilizes independent representatives to reach

2

potential customers that a company otherwise would not

reach with traditional online or offline marketing methods.

In order to accomplish this, Madubuko (2011:44) states that

network marketing companies and their associates recruit

individual “their sales force”, like other companies and

franchises have done for years, for example the insurance

industry. How often have you seen ads on television that use

the term, “Independent Insurance Agent or Associate?” Yet,

these advertisements are watched. It is naturally assumed

that they are employees of the company, when really they are

independent business owners.

No doubt you have noticed as you have driven through your

neighborhood many of these small business. They have signs

and other advertisements designed to draw your attention to

them. Yet, you will rarely see advertising from the

appropriately 13 million people who are either involved with

direct selling, or in the network marketing industry according

to figures by the Direct Selling Association (DSA). In most

cases they are assigned an exclusive territory and, therefore,

3

cannot market outside of their assigned territory. Whereas in

network marketing, in most cases, you can market just about

anywhere your company is established.

Moha (2011:51) queries why the internet or other traditional

marketing methods is quite simple and want access to

network that is, network of friends and family members. Today

there are hundreds of companies offering products and

services. Many of these products and services are recognized

by their brand name. They know that word-of-mouth

marketing is a far more powerful and effective method of

marketing, especially, when that message comes from those

who are known and trusted by consumers. Thus, these

companies are more than willing to pay to communicate this

message to a network of friends and family.

It is extremely important to understand that this method of

marketing is not about bugging your friends and family

members, as many critics would love to make people believe. It

is about the ability and skill to determine from those

4

individuals within the circle of influence who would be

interested in the products or services that one’s company has

to offer. That information alone is one of the critical elements

that separate those who fail, from those who go on to become

very successful. Occasionally, one might uncover a few

individuals who also want to start a business. To be one’s

boss in life, there must be a willingness to get the education

needed to run a small business. For someone who is working

with people, then network marketing just might be the right

kind of business.

Running a network marketing business is very rewarding.

While it does give the freedom from punching someone else’s

clock one will be punching his own clock and will have to hold

oneself accountable. For an employee, the training he gets

from having a network marketing business will give him a

deeper appreciation of what employers have to deal with on a

daily basis. He will also become a far better communicator,

someone who really listens and addresses the wants and

needs of others (Donpedor, 2011:30).

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With the economy the way it is today, working from home

makes more sense than acquiring a second job in order to

make ends meet. Finding a second job is not easy either.

Udochi (2011:36) argues that network marketing is a business

model and a legitimate business that uses several methods

such as referral programs and direct selling to sell company

products or services. In the business model, individual

associates or distributors act like a franchise to the parent

company or network marketing business company and they

are paid compensation according to the number of products

sold with their efforts or with their own organization. Most

people confuse network marketing business with pyramid

selling but the fact is that in the network marketing nobody

loses money. The profit made by the business model is shared

to the individuals in the business based on the retail sales and

group profits made by them. It is very important for the

newcomers in the business to check whether the company is

legitimate before signing any contract with them.

6

Network marketing distributors need to check the reputation

of the company they work for. The first important step is to

check whether the company is regulated with the rules and

regulations advised by the government or any organization

related to it. The regulation part plays an important role in

choosing the right company. The next step is to check the

country’s regulations; most countries restrict the network

marketing companies from charging large joining fees.

Therefore, it is better to know the legal requirements for this

type of business. A network marketing company should not

force the distributors to have large and expensive inventory of

products.

The distributors must make sure that the products are really

good and have good value in the consumer market. Also, it is

very important for the distributors to believe in the product,

and should avoid joining any company that sells a product of

very low quality. It is also recommended to check whether

there are any training programs available to help the

distributors to start their business. The chosen company

7

should have long and established track records of many years.

At least, the company should have been in the business for

five years. Most importantly, it is better to choose a company

and products that make the distributors more comfortable.

The rest of the work will look at how these issues can be

resolved for Forever Living Products (FLP).

1.2 Statement of the Problem

Network marketing is that act of marketing that carefully

brings all the stakeholders into a forum for interaction

through the various media of communication. The problem,

therefore, arises from how to co-ordinate the respective

stakeholders for optimality. Such co-ordination in the

marketing of new products has to consider many things such

as; man-power in distribution, getting distant stakeholders,

exploring follow grounds, minimizing voices of dissent and

discouragement, constancy in product development,

fluctuation of price, and the problem of unsold products.

8

In network marketing, it is unlikely that people who did not

join during the first few months of operation or become one of

the early distributors in their community can build enough of

a sales pyramid to do well. Less than 1% of these new

distributors earn significant income; and many who stock up

on products to meet sales goals get stuck with unsold

products that cost thousands of money. Nevertheless, it is

claimed that unsold products are usually taken back by the

parent company.

Price fluctuation or pricing conflict is common, and it can

jeopardize the entire strategy, so it is necessary to map out the

price for each step in the channel and include a fair profit for

each type of partner. Then, compare the price that the end-

user will pay because if a customer can buy from one channel

at a lower price than from another, your partners will

rightfully have concerns.

9

Network marketing can also cause social harm because many

“believers” pester everyone they know to buy their products or

become a distributor. In many cases, this pressure strains or

terminates friendships.

Since becoming a network marketing distributor is simple and

requires no real knowledge. Many people become a distributor

initially in order to buy their own products at a discount since

distributors can buy products “wholesale,” sell them “retail,”

and as well recruit other distributors who can do the same.

When then, enough distributors have been enrolled the

recruiter are eligible to collect a percentage of their sales.

Once a new product appears in the market, a succinct

introductory letter to explain what's in it, highlighting the

product's profit margin, features and benefits, and a proven

sales record usually accompanies it. The product should be

defined as accurately as possible such that a deeper

10

understanding of exactly what the distributors are selling is

made known. Then, a sales plan that brings the product to the

market is developed.

For network marketing to boost competitive strength of new

products, a firm's cost structure, product offerings,

distribution network and customer support has to be put in

place.

1.3 The Objectives of the Study

The broad objectives of this study is to evaluate the use of

network marketing in increasing the clientele base in respect

of forever living products. The specific objectives are:

1. To examine how network marketing addresses the issue

of unsold products.

2. To access how network marketing addresses price

fluctuation.

3. To determine how network marketing handles

inconsistency in the production of new products.

4. To evaluate how network marketing boosts competitive

strength of new products.

11

5. To examine how network marketing handles problems of

marketing expansion.

1.4 Research Questions

Following the research objectives above, the following

questions are raised.

1. How does network marketing address unsold products in

forever living products?

2. How does network marketing handle price fluctuation?

3. To what extent does network marketing handle

inconsistent production?

4. To what extent does network marketing improve

competitive strength of forever living products?

5. How can network marketing boost the market expansion?

1.5 Research Hypotheses

The following null hypotheses are formulated:

1. There is no correlation between network marketing and

unsold products of Forever Living Product.

12

2. There is no relationship between network marketing and

the price fluctuation of Forever Living Product.

3. There is no strong correlation between network

marketing and production of Forever Living Products.

4. There is no significant difference between network

marketing and competitive strength in Forever Living

Products.

5. There is no negative correlation between network

marketing and patronage of Forever Living Products.

1.6 Significance of the Study

The study shall benefit the management of Forever Living

Products in their policy formulation on various marketing

techniques as well as help them in formulation of products

that will compete favourably in the already high competitive

market. The marketers of the products shall discover useful

techniques of relating with customers. The management shall

also find out better ways of rewarding marketers without

compromising company interests while the marketers are

happier.

13

Government agencies involved in the marketing and

distribution of goods as well as procurement of materials to

different levels may find this work very useful in improving

clientele base as well as detecting sources of pilferage and

misuse. Also, users of the product shall discover that network

marketing shall aid them immensely in discovering low

standards products.

1.7 Scope and Limitations of the Study

The study centres on the application of network marketing in

the marketing of Forever Products. This has to do with the

coordination of the works of all marketers in Enugu

metropolis. For an indpeth study we have focused on Enugu

metropolis.

The study of this nature cuts across many stakeholder

opinions. There are varied number of people who are

interested in the network marketing. These interests increase

when it is applied to drug-product marketing.

To get the scattered number of customers around the city, as

well as vendors, was a difficult task for the researcher. Many

could not respond accurately due to low level of academic

14

exposure, which implied detailed interpretation of the

language of the questionnaire in local parlance, the task which

was quite tasking.

So, time, money, and intellect were heavily expended in the

course of this research. These, a bit, prolonged the time for the

completion of this study.

Definition of Terms

Network: A system of lines that cross each other and are

connected to each other. It can also be a group of people,

organizations, etc that are connected or that work together.

Networking: The practice of meeting other people involved in

the same kind of work, to share information and supporting

each other.

Marketing: The activity of deciding how to advertise a product

and what price to charge for the product. It can also be the

type of job in which one decides how to advertise a product or

the price to charge for a product.

Clinetele: All the people who regularly use a product or

service.

15

Base: The main place from which a person, company or

organization controls their activities.

Evaluation: A judgment about how good, useful or successful

something is.

16

REFERENCES

Ayodele, R. (2004). “Network for Higher Corporate Goals”. The Guardian, Volume 20, No. 9, p 302. Ebele, T. (2004). “Network Marketing the Surest Route to Financial and Time Freedom”. Success Booster, Volume 2, No. 1. Nwogwugwu, M. (2004). “Benefits of Networking”. Business Day, Vol. 3, No. 254. Onyeke, J. (2001). The Power of Advertising. Enugu: Precious and Queen Ltd. Rotimi, A. (2004). “Network for Development”. Nigeria Tribune, No. 13, Vol. 372. Kiyosaki, R. (2004). “Rich Dad”, Tokyo Government Update.

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CHAPTER TWO

REVIEW OF RELATED LITERATURES

2.1 Introduction

This chapter looks at the theoretical framework for this study

as well as other conceptual issues. It also reviews empirical

works that have been carried out in network marketing.

2.2 Overview of Network Marketing

Network Marketing, notes Agene (2000:54), is not necessarily

direct marketing or indirect marketing. It comes somewhere

between the two. It is direct in the sense that a manufacturer

can be a marketer when he joins the multilevel solicitation and

canvases for customers. It can be indirect when he mandates

his clients to source for customers without his participation.

Emphasis in this sort of marketing is not, therefore, that of

direct or indirect marketing, but that of multi level

participation of customers. It turns every customer to a

potential marketer.

18

It is not also based on the natural dual level of home and

abroad distributors. That is, it does not really use the

importer-exporter concept of marketing. In network marketing,

observes Alu (2000:55), the whole world is a market place. It

purely hinges on which customer joins the queue from

somewhere. It frowns at the wholesale retailer ideology, but

goes to turn every customer into a potential benefactor.

Network marketing is the best choice for people who no longer

want to work in the traditional company and for those who

wishes to start their own business. Network marketing is also

called as multi-level marketing. People choose this network

marketing business to make some extra money. It is very

important to work with the reliable and reputable network

marketing company to be ones own boss, to work on ones own

schedule, and to work on ones own pace. Therefore a company

should be carefully chosen.

19

2.3 Network Marketing Product Distribution

According to Rotimi (2004:12), network involves connections

and exchanges. It is a people affair, group habit, fellowship

trend and a bit of gregarious instinct. He went further to state

that networking is centred on people, objective, exchanges and

other intangibles. According to Booster (2004:112), it is a

multi-level marketing. It emphasized that the rich look for and

build network while everyone else looks for work.

Kisoyaki (2004:29) sees network marketing as the only way to

increase income of any meaningful marketer. This he said is

done by looking out for opportunities to show case one’s

products through people, different media of communication

and through other sellers far and wide. From the works of

these authors and writers, network marketing entails bringing

all stakeholders together for interaction, for free flow of

20

information and exchange of ideas. It recognizes two salient

points:

1. Individual limits of penetration and optimum use of

markets.

2. A limitless opportunity according to a group work when

all stakeholders brainstorm for solutions and benchmark

for ideas.

Carried to the marketing world, networking notes Obi (2006:

18) brings out these things:

a. Exploring all near and distant markets existing already

for a product or ideas.

b. Exploring and penetrating new distant and near markets.

c. Use people, materials, machines, information

technologies to achieve market penetration and

optimality.

d. De-emphasizing individualism in marketing.

e. Reaping the potentials of new fields in market.

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f. Extensive use of information technology via the Internet

to create awareness for new ideas, products and service.

g. Optimum use of various communication media in

marketing to further create new clientele for markets.

Network marketing according to Nwogwugwu (2004:33),

involves a lot of strategies such as going to trade shows,

speaking at seminars, participating in discussion boards or

email discussion lists, going to local chamber of commerce or

other places where business people gather. In view of this,

marketers and entrepreneurs should spend time to know their

products and service particularly when they are not the

primary producers. They need knowledge of the industry and

the ability to talk about it (Onyeke 2004:213). Being a “people”

person helps in network marketing.

Networking is not always costly; it remains a long term

strategy that every business person should engage in. Building

and sustaining mutually benefiting relationships requires all

22

kind of data base whether we are writing letters and speeches,

making decisions, managing crises, and producing publication

about our publics and stakeholders. It is a total package.

There are new fields that should be exploited to boost

marketability, this observes Akingbola (2000: 2111) is the

place of network marketing. It can be taken though villages,

remote clans, distant communities, cluster areas, slums in the

cities as well as high brow areas. What is central is that

marketability is highly increased through the combined effort

of many people and systems. How the forever living products

can fit into this the focus study.

2.4 What is Involved in Network Marketing

Network marketing as have been pointed out about,

sandwiches between direct and indirect marketing due to its

globalized nature. However, it is very highly inclined to direct

marketing in that the producer dialogues with the marketer

who convinces other buyers to become sellers. According to

Barber (2006:1) network marketing is an aspect of direct

marketing which does not require any expertise to become a

23

marketer. It does not need a trained marketer to top the level

or to be the most rewarded seller. According to Barber, it

requires the following:

1. Get a product you can be proud of and show it to people,

your friends, relations, neighbours and acquaintances or

to people introduced to you by them.

2. With the help of people already experienced in the

business show a simple business opportunity to friends,

relation, neighbours and acquaintances or to people

introduced to you by them.

3. In your own time, and as your confidence, knowledge and

experience grow in a very simple way teak people coming

into your business to do the same.

2.5 Workability of Network Marketing

This is better explained by Barber

“Lets say for example that you sponsor only five

people yourself and every one you bring in just

happens to follow suit, then you would have a

business which is growing as in the following chart”.

SOURCE: David Barber

On Level 1 is just you. Level 2 has 5 people on it

you have sponsored. The 5 people you sponsored, each bring 5

independent distributors and this gives you 25 people on Level

happens to follow suit, then you would have a

business which is growing as in the following chart”.

Barber

On Level 1 is just you. Level 2 has 5 people on it –the people

you have sponsored. The 5 people you sponsored, each bring 5

independent distributors and this gives you 25 people on Level

24

happens to follow suit, then you would have a

business which is growing as in the following chart”.

the people

you have sponsored. The 5 people you sponsored, each bring 5

independent distributors and this gives you 25 people on Level

25

3. The 25 independent distributors on Level 3 each bring in 5

people and that gives you 625 people on level 5. Add all the

levels together and, although you brought in only 5 people

(and no one else has done less), you now have 781 people

(including yourself) in your business.

Another major difference between network marketing and

traditional says Anyanwuokoro (2001: 16) is in the much

simplified distribution system used by network marketing.

Infact in the traditional retailing system, between 60% and

90% of the retail price of a product (excluding taxes) is soaked

up by distributors, wholesales and retailers. Each time the

product asses through another set of hands these outlays get

added to the basic cost: rents, rates, services, wages, cost of

holding, write off for damaged or non-selling stock, pilferage’s

financing of cash flow, insurance, and profit for every

distributor, wholesaler and retailer in the chain.

There may also be costs added on by each pair of hands on

sales force, advertising and sales promotion.

26

In network marketing, observes Authur (2001: 151) the

independent distributor replaces all these functions. In some

network marketing companies, goods may be delivered to the

customer directly from the supplier, but the independent

distributors will still receive their commissions in return of

finding the customer and taking the order. This is the reason

why network marketers earn high incomes. This clearly shows

that high income are not result of a network marketing

company inflating the price of the product; as has been

claimed; they come instead from the company “saving” the

cost incurred in the traditional retailing system, and

redistributing these very substantial savings to their

independent distributors.

From the analysis of Barber, network marketing is a

Geometric Progression way of eliciting customers into

marketing process. This differentiates it from ordinary

marketing process which is an Additive (Arithmetic

Progression) way of getting customers. While traditional

marketing aims at making a customer, network marketing aim

27

at making a customer a co-marketer. This is why Barber

further identified it as a Sponsored Marketing. This is

because each customer sponsors as many other customers as

he can astutely convince and enlist into the multi-chain.

Due to the freelance nature of network marketing, notes Argyle

(2007:62) the success of it purely depends on Energy

Dissipated rather than academic or learned process. Hence an

illiterate stands a better chance of gaining and leading the

group, if he expends more energy, getting prospective

Consumer-Markers that will people up the line than an arm

chair critic learned professor who is interested only in

theorizing rather than field work.

2.6 Requirement of Network Marketing

Network marketing also known as Multi-Level Marketing

observes Brien (2006:111) is an incredible opportunity that

came into existence in the mid 20th century, 1940s to be

precise. It offers an individual the opportunity of owing his

28

own business under the umbrella of a parent company. The

parent company supports and encourages the individual to

build a financial empire for himself.

Network marketing is simple. No previous sales, management

or business experience is needed to succeed nor do you need

any particular talents, educational standards, background,

advantages or skills. This is because the skills and attitudes

you need to succeed are so simple that any one can acquire

them.

You do not even have to be particularly good at the skills that

are needed (many of the top distributors are not) observes

Coombs, Saviotti and Walsh (2007:88) because you can

compensate simply by doing more. It is not how good you

which is the issue; it is how good your people are. Sooner or

later, the right number of people with the right level of

competence will appear. They always do, provided you keep

working at it.

29

Although it is said that the business is simple, this is not the

same thing as saying it is easy to explain what is meant, the

technique of walking is something which most of us find

simple but few of us would say the walking twenty miles is

easy. In the same way, the determination that most people

need to succeed in network marketing is also not easy.

CAPITAL: This depends on what you want out of the business.

If you are looking only for small extra monthly income, this

may be satisfied by retailing, selling or showing the product to

enough people to ensure that you get monthly income. On the

other hand, if you are looking for a certain income

requirement, you will need to build a small or large group of

independent distributors. If this is your aim, success says

Chinenye (2010:40) will mean developing the right attitude:

a. Have Pride

b. Have Confidence

c. Be Unstoppable

d. Be Teachable

30

e. Have Patience

If we have a brief look at each of these:

1. Have Pride: This says CBN (2009:12) means having

pride in

a. The company

b. The product

c. Networking marketing

d. Yourself, in taking action to improve your future

Pride in what you are doing is of cause essential if you are

going to introduce the product and the business successfully

to other people. Pride will also give you the strength to deal

with any problem you may experience later and the motivation

if you want to be successful.

2. Have Confidence: Pride in your product, your company

and network marketing notes Aminu (2000:18) will help to give

you the confidence you need to develop your business. But

you also need the confidence in your self that you can do it.

31

3. Be unstoppable: This means whatever obstacles you

meet, just keep on going and never stop!

4. Be Teachable: Although this is a simple business, it is a

very different way of doing business and it can be unforgiving

of independent distributors who do not stick to a proven,

simple but narrow path.

But there is no point in being teachable if the training you get

is inadequate with most companies, training is in the hands of

the independent distributors themselves and therefore the

quality can vary tremendously even within they same

company. So if you are going to be serious about your

business, it is strongly suggested that observes Akwale

(2008:77) you make your sponsor commit to giving you the

support you will need before your sign up with him or her.

5. Have Patience: Of course, any business takes times to

build and, in this respect network marking is no different. The

difference here, though is that those people who do exercise

the patience require to build a solid business, looks forward to

an income possibly far in excess of any they could have hoped

32

to earn by any other means. To be successful, observes Idowu,

Alu, and Adagunodo (2002:20) you must of course also make

sure that you get involved with the right company and the

right product.

Features of network marketing, observes Iwuji (2008:66) can

thus be summarized as:

1. It offers financial and time freedom. Those who have put

in there initial hard work into these businesses earns as

much as 30 million dollars a years. In Nigeria the

business is still new yet some people are already earning

more than two million naira per mouth, twenty four

(N24m) per year.

2. You are your own boss nobody will boss you around or

make you redundant. Being attached to a big company,

international and successful company that has over a

billion dollar turnover is enough security for any one.

You don’t have to work for 35 years for meager pension

or gratuity.

33

3. Though you are running your own business, you

constantly get the support of your parent company,

through your sponsor and various educational

programmers offered by the company. Your item will help

you build the needed confidence and enthusiasm you

require in this business.

4. It requires very little capital and no risk. Most network

companies require less than N40,000 or 350 dollars to

start off. They also guarantee that if you are not

interested after a while you can return the products and

the company will buy them back. In this case your

capital is secured, unlike in traditional ventures where

your initial capital outlay could be lost through

management or other factor militating against the

ventures.

5. Flexible working time: You choose your working hours.

You can start a network marketing part time while

retaining your present job. It is only when you are

convinced that what you are earning from your network

34

business is higher than that of your present job that you

may decide to gait your job. Many people in network

business have fired their bosses. You may decide to put

in one to two hours daily or more depending on your

schedule and still make it in this business.

6. You can work around existing commitments such a

family, career or business. You will have no overhead

except you chose to; you don’t need to rent a shop or owe

an office so no electricity bills etc.

7. It offers you the opportunity for self development. Most

network marketing companies offer good educational

programmes that are life changing. They help develop the

individual, impacting leadership skill, which he needs to

build his own business.

8. There is no educational barrier. Most of them only

require that the individual is up to 18 years of age. So the

opportunity is not discriminatory. None university

graduates also do very well in network marketing

business, even those who had only their primary

35

education can succeed. The only basic requirement is

desire, and the determination to succeed. You are the

only limiting factor that can hinder you.

9. You decide what your income should be; there is no limit

to what you can earn in network marketing. It may

surprise you that you could earn more than the head of

state. This is because income is residual. You even earn

higher when you have finished putting in the hard work.

10. It is an opportunity for all. The disabled, those who have

no helper, have found great help and financial freedom in

network marketing. It is only in this business that a

housemaid can earn more than a federal minister who

joined the business much later. The offer is open to

students too.

11. The offer travelling opportunities for holidays, give

incentives and profit sharing.

12. It is people oriented business. The capital requirement is

low but the people requirement is high. So people become

36

your capital. The more people you introduce into this

business the more your business grows.

According to Kiyosaki, (2004) “Whenever people ask him how

they can increase their income, he always recommends

network marketing”. His reason being that it is the easiest way

of acquiring money. He says “never before has it being so easy

to become rich, it took me over 30 years and two business

failures to gain the education and experience needed to build a

successful business, the network marketing industry offers a

ready made business system to any one wanting to take

control of his or her financial future. Y rich Dad taught me

that one of the most powerful words in the world business is

“network” he said “the richest people in the world look for and

build networks: every one else look for work”. You can have

the greatest idea or product, but it will only succeed if you

have a network of distribution to sell it through.

According to Mote (2009:18-24) “Opportunity does not wait for

any man. Anyone who must benefit from opportunity must act

37

quickly provided that your principle amount is safe and can be

reclaimed if you decide to quit. The products would be bought

back from you by the company”. How awful, this business is

over three years in Nigeria but only a few are taking advantage

of it. I wish to encourage you not to procrastinate when you

get this opportunity, grab it and set to work with the will of a

bulldog. Do not allow friends and relation to discourage you,

ignore all mockery and start off immediately but first attend

their business matter, seminar presentation and training.

Another reason why this opportunity will work says Ige

(2005:33) is because it has worked for many people. Although

60% to 70% of people who get involved quit too soon, thereby

giving no opportunity to success, yet another 30% to 40%

succeed just because they refuse to quit. It is usually not very

easy the first year, but once you continue to bear the rejection

and humiliations from the loved one in the first year, working

relentlessly towards your goal, then success is assured.

38

This business will work in Nigerian because we are greatly

impoverished. If our people embrace this opportunity, our

people will never know poverty gain. How I wish that part of

the money spent on poverty alleviation was channeled towards

creating awareness of this industry. Well, notes Jonah

(2004:92) the government will never do that because it

threatens the existing traditional companies upon which the

country depends economically. It also threatens the civil

service. A lot of civil servants have resigned to do network

business full time. This is why American can never stop

Lottery Visa they need manpower, many of the citizens are

embracing network marketing, leaving big vacuum in their

traditional industry.

2.7 Who Gets Involved in Network Marketing

According to Big (2003:20), “the answer is any one and

everyone”. The business, by its nature, genuinely does away

with all the boundaries of discrimination which can help or

hinder you in almost any other occupation, whether it be

background or deduction, age, sex, ace, or colour, previously

39

experienced wealth or lack of it. As a result, all kinds of people

come into the industry attracted by the opportunity to succeed

by their own merits; you find this a refreshing rainbow of

variety from those just coming in, right up to those at the very

top.

So it is easier to categories people to whom network marketing

might appeal more than what they want from the business

than by their character, personality, social background or

experience. According to David (2004:10), “the business might

appeal to you if you are:

1. Happy with your present method of earning a living but

looking for supplementary income to help with holidays,

a new car, the mortgage, school fees, a hobby and so on.

2. Looking to take control of your life perhaps by getting out

of serious financial difficulties or working related

problems or seeking to realize you ambitions.

40

3. A high-flyer who wants to devote time and effort to your

ambitions and who is looking for the greatest income

return of the fastest career profession in return of your

commitment; or if you want to earn what you are worth

rather than what some one chooses to pay you. Of if you

prefer to be promoted on results rather than relying on

corporate politics. Just as in conventional business,

there is a “ladder” system of promotion, with clearly

defined job titles and extra benefits as you go up. But in

network marketing, you promote yourself as your

business grows, with no one to hold you back.

4. Someone who might enjoy in network marketing a

money-making social life and feeling of belonging.

5. Looking for a network environment where you can

increase your self-confidence, learn to communicate

better, enjoy greater appreciation for your effort, learn to

make the maximum use of your talents, and generally get

more out of life.

41

6. Attracted by one of the maxims of network marketing

that you can only succeed by helping other people to

succeed, there can be few business where honesty, ethics

and a genuine caring pay off in such a handsome way.

Many part-time network marketers in the states contribute

part or all of their income to favorite charitable causes. For

people like nurses or social workers, it allows them to carry on

their socially valuable jobs without sacrificing their lifestyle.

Ministers of religion can use the business to find their

religious activities. According to Babar (2004:10), “these

people are involved in network marketing”.

1. People looking for a part time income or an additional

profit centre; or perhaps who are unable (for maybe

family or health reasons) to take for a full time

employment.

2. Unqualified manual or shop workers; people who are

redundant or unemployed; or people who feel held back

by discrimination on the grounds of race, or colour, age,

42

sex, education, experience, social background or medical

condition.

3. Entrepreneurs of self employed people.

4. Professional people or people from a vocational or caring

background.

5. Serious executives, managers or director; chairperson of

corporations; or people aspiring to these dizzy heights.

The first exposure an accountant, banker, or lawyer may have

in network marketing says Levitt (2002:35) is when a client

asks them to check it out; countless times, this has resulted

in the professional adviser coming into the business.

2.8 Network Marketing and Sponsorship

The network marketing growth chart earlier in 2.0 showed an

example business of 780 distributors. If all of your 780 people

where part time and averaging only one sale a week and each

worth lets say, only N50 per sale, this could (depending on

your company) earn you N5,000 a month. Only two sales a

month each would still earn you N30,000 a year. Network

43

marketing involves lot of people doing a little bit, not as in

conventional business where a few supper stars are doing a

lot.

This, observed Wabara (2000:100), is a common

misconception and understandably so because, looked at from

the outside, it does look as if sales people must have a real

advantage. Infact, as is becoming clearer in this research,

there is a lot in common between traditionally trained persons

and network marketers. In other words you do not need

conventional sales skills to succeed.

However, you will need to be able to get on with the three

groups of people who will form the basis of your success;

potential distributions, distributors already in your business

and customer of the product.

No doubt, right now you are used to discussing things with

people, telling people things, showing people things and

recommending things to people. The skills you will need to

show the business, show the product and teach your

distributors to do the same says (Elendu (2004:114) are only a

44

slight refinement of these activities, which you already do on a

daily basis.

2.9 Network Marketing and Business Background

This, too, is not borne out by experience. Business people

infact, are the worst where network marketing is concerned,

observes McJones (2009:16-18). Why? Because:

1. After years of working in conventional business, they

often control believe that any business so simple can

actually work.

2. Network marketing over turns so many of the accepted

conventions of other types of business that this can make

it difficult for them to understand.

3. Over the years, there has been a certain amount of

unfavourable publicity, some of it caused by corruption’s

of the concept and some caused by uninformed media

coverage. Business people are more likely to be aware of

this and are therefore more likely to be affected by it.

45

Infact, remarkable few business skills are required because

your company takes all the more complicated and technical

aspects of running the business off your hands. The main skill

you will need is your ability to get on with people, as discussed

above, very much as you get on with people now on a daily

basis, but simple refinements. The main requirements as

earlier discussed are definitely ones attitude, in which like

skills, experience and background have no relevance. Infact

based on the Nigeria experience, the most successful single

group are women teachers. No sales or business skill there.

It is discovered that the preconceptions sometimes held by

business people and sales people can make it difficult for them

to accept that network marketing is different and that there is

a new skill to be learnt. This is a pity because those who do

embrace its different way of doing things are then in a position

to turn their previous skills to advantage.

2.10 Network Marketing and Clientele

46

These are all different ways of expressing the same fear or

concern that is approaching people one knows. But there is

need to worry because no one is expecting you to go door-

knocking or twisting people arms. Nor will you be asked to pin

your friend and neighbours to wall until they buy. According

to “(Wye, 2001:80) the aim of network marketing is to have

more friends, not fever” if you apply pressure or are lose in

another way: an important part of this business is to ask

people you know to recommend to you people they known.

Would they do this if they felt pressured by you or are

unhappy at the way you had dealt with them?

Again Wye further stated that “Approaching people you know

and keeping their friendship is governed by the

understanding. It is not the asking which offends your friends,

it is the pressure. No one minds being asked”.

Infact if you have a product and opportunity you are proud of

and ask in the right way, most people will be pleased at your

interest, even if they so “No” to what you are offering. Because

47

in this industry, there is need to avoid traditional selling at all

costs, the word is never used. Instead words like, showing,

sharing, inviting or asking and, where the product is

concerned, retailing to describe what is done. This means that

you show your friends and contacts a realistic picture of what

the business and the product are all about and then, let them

make up their own minds without pressure from you.

The easiest people to sell should be existing customers but

only if they feel comfortable with you. So there is no conflict

between the ways you relate to people in your business and

personal life: honesty, integrity and consideration for their

feelings will always pay in the long run. This is why house

wives, shop floor workers and professional people like

bankers, solicitors, accountants, teachers and even ministers

of religion succeed in this business notes Nwuba (2002:33).

None of them would be seen dead trying to “sell” in the

traditional sense.

Generally speaking, someone looking for a low-level

commitment is a part-timer and some one looking for high

48

level commitment is aiming to become a full-timer as soon as

possible. Some distributors earn as much from part time

activities as from their full-time occupation. Many people

begin on a part-time business, committing perhaps 10-15

hours per week, with the intention of building their network

marketing business into a full time career. In this case, it is

wise not to go in full-time too soon; wait until your income

from network marketing develops to a level that allows you to

do this without undue risk. (Nwachukwu, 2002:55). The

under-listed points may attract part-timers into network

marketing:

1. Potentially High Earnings

The potentially high earnings (as compared with most part

time jobs) give you a genuine choice to do your work few hours

to earn what you need; or do you work the same hours as you

do now but earn perhaps considerably, more queries Nnanna

(2009:61)?

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2. The Social Life

This is a pleasant side benefit notes (Nwizu, 2006:19). There is

spontaneous and immediate acceptance of new people. Most

enjoy the quick but lasting friendships which are forged

among network marketers, stemming partly from the fact that

every one actually enjoys what they are doing and partly

because perhaps for the first time in their lives, people feel to

do what they want to do and be who they want to be.

3. Complete Flexibility of Hours:

You work when you want to, not when someone else tells you

to. For instance, a mother can very her work patterns

according to whether it is term-time or school holidays. A

business person who is using network marketing business as

an additional profit centre can cut back when their core

business is busy and can use the extra time profitable when

their core business is slack.

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Infact notes Nwafor (2010:85), many enjoyed the experience so

much that even when business picked up, they up their

network marketing activities. Ogwuma (1998:16) says that

what Attracts the Full-Times of Career Network Marketers are:

1. A high-level business with a minimal investment: We

have already seen how little you need to get involved. No mater

how big your business gets, the only stock you will need could

comfortable be kept under your stairs or in out of the way

corner.

2. Minimal Risk on Stock Purchase:

3. Positive Cash Flow: Conventional businesses operate

with negative cash flow. This means that you get paid only

after delivery. People who supply retailers take an average of

days to get paid. In some industries even, that is fact payment.

Positive cash flow means that everything is cash-with order.

This is protection against both over trading and customer

bankruptcy.

51

4. Exceptional Earning Potential: Unlike most

conventional businesses notes Ovia (200:66), there is no

theoretical limit of earnings. This is proved but the

exceptional earnings which independed distributors can

achieve. In any companies, the distributors are earning

substantial five figure sums per month: Most mature networks

can show people who have retired wealthy two to five years

from starting often from a position of extreme financial

hardship. Oladele (2000:222) claims that network is now of

the main somas of new millenniums probably true since the

collapse of property values. These are no reason for the same

not to happen in Nigeria within the next few years.

5. Minimal Overheads: No matter how big you get, you do

not need:

a. A warehouse

b. Offices

c. Staff

d. Bank borrowing

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6. Self Promotion Based Entirely on Result: No

waiting for a “dead-men shoes”, on relying on a superior’s

assessment of whether you are good enough. People can, and

do, get to the top position of network marketing structure in

one to three years, often achieving six more promotions along

the way. In normal business says Owunna (2004:141), a

person does exceptionally well to get one promotion every two

or three years, let alone reach the top in that time.

7. It is simple: Anyone and every one can do it. A business

which allows every one the same and equal, access has to be

good business. Apart from making a network marketer feel

good, this also means that you can show the business to

anyone without having to worry about whether they have

enough talent, intelligence or experience.

8. Security: Business or job security is now things of the

past. Security comes from a potentially very high income,

which will allow you to build up capital.

Security notes Oguchi (2009:101) also comes from a saleable

asset because you can sell your network on the open market;

53

that is the market value of a business earning say N50,000 a

month with no borrowings, liabilities, or the milestone of

premises, staff or bad debts? Security comes from a business

you can leave to your spouse or family if anything should

happen to you.

What could happen to you now if you were made redundant,

lost your job, or your companies were to go bankrupt? Not a

pretty though of it? But if your network marketing company

were to go bankrupt today or if its products were to stop

selling, you could up and running tomorrow in a new network.

And if you have looked after your independent distributors

well enough, many of them would go with you.

2.11 Things to be Avoided in Network Marketing

Network marketing says Okoro (2010:121) is such a

powerful concept that has inevitably attracted its share of

abusers. The following can help you to avoid these unethical

schemes:

54

a. Pyramid Selling: The real problem was that distributors

got caught with large amounts of stock and could do nothing

about it. This observes Rosenberg (2003:33) was caused by the

product increasing in price as it moved down the chain, until

eventually some poor distributors was caught trying to sell it

on at more than it was worth.

b. Matrix Plans with no Proper Product: Matrix plan says

Peacock (2008:92) have two hallmarks:

• The structure of your business is fixed by the company

(e.g., ‘5 x 12’ matrix means that your matrix goes 5 wide

and 12 deep).

• There is no self-promotion possible.

The great majority of matrix plans officer a very inferior

product. Some find ways around the law and pay on

recruitment rather than movement of the product, so there in

no incentive for any one to sell anything. You should avoid any

plan unless all your income comes from product sales.

55

c. Subscription-Selling Schemes: In such schemes says

Solomon (2008:91), you are paid on the sale of club

subscriptions. You earn nothing from any products the

members may buy. No such schemes have yet stood the test of

time, because they are not based on the movement of stock.

d. Chain Letter Systems and Money Games: These note

Tessa and Jerry (2003:77) either have no product at all, or use

an inferior product as an excuse for passing money up the

chain. Some of these money games are presented in a highly

professional way, and can trap the unwary. Other favourite

schemes are to offer either badly written books on “how to

succeed” (or some other equally, compelling-sounding title) or

subscriptions for worthless magazines or business

opportunities.

2.12 Traditional Marketing Versus Network Marketing

In a traditional marketing setting observes Ukaegbu (2000:86)

we have something like this: manufacture, national

distributor, regional distributor, advertising, retailer,

56

consumer, but in network marketing this long chain has been

reduced to manufacture, national distributor and consumer.

Another difference between the two is in the type of income

earned. In the traditional setting, most retailers and

wholesales earn what is called linear income, which means

that their income always equals their efforts. They earn just as

much as they can sell. But in network marketing the

distributor’s income is residual. It is usually small at the

initial stage when is building his organization (team), but with

time the income soars (explodes) that is increases

exponentially indicating that the distributors does not earn

from his effort alone, he earns from the efforts of his team.

(Ugwu, 2009:231).

According to Metcalfs Law; A network economic value = No of

users. Stating it in clear term, if there exists one telephone, it

really has no economic value. But when the telephone is two,

the economic value is squired (22) which is 4, add the third

57

phone and the economic value of the network will be 9 that is

(33). This means that the economic value of a network goes up

exponentially not arithmetically.

Working hard to build a network business says Udah

(2002:232) makes more sense than working hard as an

individual. Sit down and ask yourself how many years of

labour your have put into your present business or job and

how much return you have got so far. If you honestly say that

in a year you make up to five million naira, then good luck.

But if you make less than that, reconsider your stand. Take

advantage of this scientific law of Metcalf. Allow your effort to

be duplicated by others so that your income can become

limitless. What about earning a million dollar monthly (about

130 million naira), people are already earning more than that

in the United States of America. So, do something.

58

2.13 Elements of Marketing Strategy: A Theoretical

Framework

Madubuko (2011:6) notes that a marketing strategy is

composed of several interrelated elements. The first and most

important is market selection: choosing the markets to be

served. Product planning includes the specific products the

company sells, the makeup of the product line, and the design

of individual offering in the line.

A marketing strategy outlines the manner in which the

marketing mix is used to attract and satisfy the target

market(s) and accomplish an organization’s objectives.

Specifically, marketing strategy is developed by considering

several factors.

Research observes Wachukwu (2000:132), explores key

components that need to be included in designing an effective

marketing plan. The first element is product performance.

There is the need to summarize the product’s performance,

relative to last year’s plan, along with explanations of

59

variances from the plan. Any research conducted on product

performance or quality can be included as well.

Madubuko (2006:161) noted that brand equity is a set of

brand assets and liabilities linked to a brand, its name and

symbols, which add to or subtract from the value provided by

a product or service to a firm and/or to that firm’s customer.

For assets or liabilities to underlie brand equity they must be

lined to the name and/or symbol of the brand.

Akingbola (2011:85) opines that new product development can

play a variety of roles in defining corporate strategy to gain

competitive advantage. This variability makes the process of

new product development subject to the emerging

organizational issues of the day. In general, a long-run,

focused, and ongoing strategic commitment to attractive

market opportunities should define the role of new product

development. New product development should be integrated

60

into an organizations strategy and significantly contribute to

its perpetual renewal.

All marketing strategy is built on STP: Segmentation,

Targeting and Positioning. A company discovers different

needs and groups in the marketplace, targets those needs and

groups that it can satisfy in, a superior way, and the positions

it is offering so that the target market recognizes the

company’s distinctive offering and image.

Keshi (2011:83) observes that having a marketing strategy can

be the life or death of a business. If you aren’t sure how to

begin the development of your marketing plan and strategy,

these resources will help you. Kotler (2010:31) notes that

what is the difference between a marketing strategy and a

marketing plan? It’s important to understand that there is a

difference and that difference can impact how you market your

business and whether or not it is successful. Learn the

difference and how you can use these two tools not only to

enhance you marketing, but to help in saving time.

61

Nwosu (2006:31) opines that it is true that businesses are

pulling their marketing budgets and as a result they are going

to see a decrease in sales, while their competitors will continue

to market and see growth during these difficult economic

times. Learn the importance of marketing during a recession

and gain the information you need to do it effectively and at

low cost. Nwosu (2006) argues further that the option to

outsource marketing functions is becoming increasingly

popular. If you are evaluating the option to outsource there

are a few things you should know when selecting a marketing

consultant or outside firm. Learn what information you

should gather and what things you should look for to find the

right marketing consultant for you.

Nwosu (2006) again stated that like any business, the media

industry evolves in cycles. The career potential for marketers

in the media industry is anticipated to keep growing. Learn

what you need to know about the further for marketing in the

media industry and how to break into the career path.

62

Onah (2007:32) noted that integrated marketing is a word we

hear thrown around quite often, but what is it and why should

we care? What exactly is meant by integrated marketing? One

campaign could have taken advantage of integrated marketing

and see an increase, not only in results but on return on

investment. Onah (2007) explains further that from most

small business owners, marketing is an overwhelming

concept. They need marketing solutions that ensure a smooth

running, profitable business yet most don’t know where to

begin or how to focus their efforts.

Hamp (2011:21) shows you four ways to overcome marketing

challenges forever. Distinguishing your product or service from

the competition can make your marketing more effective.

Learn how to stand out in a crowed by being unique.

Nwosu (2006:39) explains that podcasts are audio or video

files distributed over the internet. Listeners download the files,

and either plays them on the computer or a listening device,

63

such as an i-pod. It pays to learn how to market a company

using the new technology of pod casting.

Why is it so difficult to find new ideas in the industry of

marketing? Have we become complacent when it comes to

developing new campaign and strategies? Is it just easier to

copy campaigns and change them up to make them our own?

Learn how getting back to the basics can help you stand out

and put you on a path that is unique and different. By daring

to be different I guarantee you will see the effectiveness and

the excitement of your marketing endeavours increase. Are

you finding company of your best prospects already working

with competitors? When you pursue a new opportunity, is

someone else capturing the prize? Maybe it’s time to re-

evaluate your positioning.

Hayden (2011:63) argues that knowing which marketing

endeavours pay dividends will save your time, money and

effort by allowing you to focus your marketing budget on

tactics that work. Learn how to measure the effect of your

64

marketing efforts to make more money. Cohen (2011:39)

explains that putting off unappealing tasks may be human

nature, but for an entrepreneur, procrastination can be

deadly. Is it holding you back? Find out how to overcome

procrastination. Cohen shows further that as business owners

you may not be lacking in the knowledge of marketing

techniques but what about your marketing attitude? Are you

sabotaging your own marketing efforts by carrying the wrong

attitude?

Manager (2011:36) explains that a strategy that integrates an

organization’s marketing goals into a cohesive whole. Ideally

drawn from market research, it focuses on the ideal product

mix to achieve maximum profit potential. The marketing

strategy is set out in a marketing plan. Williams (2011:36)

notes that marketing strategies serve as the fundamental

underpinning of marketing plans designed to fill market needs

and reach marketing objectives. Plans and objectives are

generally tested for measurable results. Commonly, marketing

strategies are developed as multi-year plans, with a tactical

65

plan detailing specific actions to be accomplished in the

current year. Time horizons covered by the marketing plans

with a tactical plan detailing specific actions to be

accomplished in the current year. Time horizons covered by

the marketing plan vary by company, by industry, and by

nation, however, time horizons are becoming shorter as the

speed of change in the environment increases. Marketing

strategies are dynamic and interactive. They are partially

planned and partially unplanned.

Marketing strategy says Adeola (2000:152), involves careful

scanning of the internal and external environments. Internal

environmental factors include the marketing mix, plus

performance analysis and strategic constraints. External

environmental factors include customer analysis, competitor

analysis, target market analysis, as well as evaluation of any

elements of the technological, economic, cultural or

political/legal environment likely to impact success. A key

component of marketing strategy is often, to keep marketing in

line with a company’s overarching mission statement. Once a

66

thorough environmental scan is complete, a strategic plan can

be constructed to identify business alternatives, establish

challenging goals, determine the optimal marketing mix to

attain these goals, and detail implementation. A final step in

developing a marketing strategy is to create a plan to monitor

progress and a set of contingencies if problems arise in the

implementation of the plan.

Philips (2011:90-100) states that marketing strategies may

differ depending on the unique situation of the individual

business. However, these are a number of ways of categorizing

some generic strategies. A brief description of the most

common categorizing schemes is presented below:

• Strategies based on market dominance: in this scheme,

firms are classified based on their market share or

dominance of an industry. Typically there are four types of

market dominance strategies: Leader, Challenger,

Follower, Nicher.

• Porters generic strategies: strategy on the dimension of

strategic scope and strategic strength. Strategic scope

67

refers to the market penetration while strategic strength

refers to the firm’s sustainable competitive advantage. The

generic strategy framework (Porter, 2004:55) comprises of

two alternatives each with two alternative scopes. These

are differentiation and low-cost leadership each with a

dimension of Focus -broad or narrow.

• Product differentiation (broad)

• Cost leadership (broad)

• Market segmentation (narrow)

• Innovation strategies: This deals with the firm’s rate of the

new product development and business model innovation.

It asks whether the company is on the cutting edge of

technology and business innovation. These are three

types:

o Pioneers

o Close followers

o Late follower

• Growth strategies: In this scheme we ask the question,

“How should the firm grow”. There are a number of

68

different ways of answering that question, but the most

common gives four answers;

o Horizontal integration

o Vertical integration

o Diversification

o Intensification

A more detailed scheme uses the categories: Prospector,

Analyzer, Defender, and Reactor. Marketing warfare strategies:

This scheme draws parallels between marketing strategies and

military strategies.

Kotter (2008:61) observes that marketing participants often

employ strategic models and tools to analyze marketing

decisions. When beginning a strategic analysis, the 3Cs can

be employed to convey an organization’s strategic positioning

of their marketing mix. The 4ps can then be utilized to form

marketing plan to pursue a defined strategy. There are many

companies especially those in the consumer package good

(CPG) market that adopts the theory of running their business

centered around consumer, shopper and retailer needs. Their

69

marketing departments spend quality time looking for “growth

opportunities” in their categories by identifying relevant

insights (both mindsets and behaviours) on their target

consumers, shoppers and retail partners. These growth

opportunities emerge from changes in market treads, segment

dynamic changes, and also internal brand or operational

business challenges. The marketing team notes David

(2004:94) can prioritize these growth opportunities and begin

to develop strategies to exploit the opportunities that could

include new or adapted products services as well as changes

to the 7ps.

Kotter (2004:84) argues further that real-life marketing

primarily revolves around the application of a great deal of

common-sense: dealing with a limited number of factors, in an

environment of imperfect information and limited resources

complicated by uncertainty and tight timescales. Use of

classical marketing techniques, in these circumstances, is

inevitable partial and uneven.

70

Thus, for example many new products will emerge from

irrational processes and the rational development process may

be used (if at all) to screen out the worst non-runners. The

design of the advertising, and the packaging, will be the

output of the creative minds employed; which management

will then screen, often by ‘gut-reaction’, to ensure that it is

reasonable. For most of their time, marketing managers use

intuition and experience to analyze and handle the complex,

and unique situations beings faced; without easy reference to

theory. This will often be ‘flying by the seat of the pants’, or

‘gut-reaction’; where the overall strategy, coupled with the

knowledge of the customer which has been absorbed almost

by a process of osmosis, will determine the quality of the

marketing employed. This, almost instinctive management, is

what is sometimes called ‘coarse marketing’, to distinguish it

from the refined, aesthetically pleasing form, favoured by the

theorists.

71

You must develop Nigeria marketing strategies for your

business to stay relevant in the market place. According to

Barum (2011:10), without promotion, something terrible

happens – Nothing”. As they say promotion is the lifeblood of

any business, without it on, business will survive. Knowing

that, how does one go about it? There are several Nigeria

marketing strategies to promote any business.

(Madumbunjola, 2008:30-35). They include the following:

1. Decide your target market audience: The first step to

start your marketing promotion is to decide the target

audience that is likely to buy your product and service. In

order to cost and to achieve maximum result from your

promotion, you must focus on a specific group of people in

your industry. Take note a strategy that is targeting,

everybody will achieve little or no result.

2. Develop a unique selling proposition: The next step is

to develop a culture for your business that will differentiate

your from competitors. It’s an effective Nigeria marketing

strategy to position yourself as the best choice in your

72

industry. It’s commonly known as Unique Selling Proposition

(USP) or Essential Selling Advantage (ESA). It gives you control

over a specific niche in the industry and tells potential clients

why they must patronize you and not others. Your unique

selling proposition can be developed for outstanding quality

product.

3. Create database for your clients and potential

customers: Creating database will give your business

competitive edge in the Nigeria marketing place. The database

includes the names, addresses and phone numbers of clients

and potential customers.

With your database, you can keep in touch with them and

build a lasting relationship with them. When used properly, it

will be the most valuable asset to your business. It is a

powerful tool to increase sales and build referrals for your

business.

4. Provide quality product and service: For you to sustain

and increase your present profit, your product and service

must meet the expectation of customers. Once they are

73

convinced that you offer quality product and service they will

keep coming back. And with the word of mouth, many of them

will recommend you to their friends and family.

5. Study your competitors: Another Nigeria marketing

strategy to improve sales is to constantly study the activities of

your competitors. With that information, your business will

gain a solid status in the mind of customers. For example, you

must take note and learn from what they are doing right.

When you know that they are doing wrong, you can strive to

do it better.

6. Packaging: Finally, if you are selling tangible product,

the packaging of your product must be attractive. Otherwise it

will lose out in the marketplace.

2.14 Summary

This chapter presented an overview of network marketing. It

looked at network marketing product distribution, things

involved, its workability, requirements, those that get involved,

their sponsorship, businesses background, clientele, and

74

things to be avoided. Elements of marketing strategy were

reviewed and used as theoretical framework for analysis.

Opinions of experts on the subject under investigation were

also presented. The review ended with a summary.

75

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Agene, C. E. (2009). The Nigerian payments system: Evolution problems and prospects. CBN Bullion, 23 (2).

Akingbola, E. (2000). T-class banking product. A Speech Delivered at the End of Year of Intercontinental Banking at Eko Meridien, August 30.

Alu, A. O. (2000). Effects of information technology on customer services in the banking industry in Nigeria. B.A. Thesis in Management and Accounting.

Aminu, A. (2000). Living with changes in banking industry. A Speech Delivered at the End of Year Party at Metropolitan Hotel Enugu, December 21.

Anderson, A. (2001). Information technology general control. Arthur Anderson Journal.

Anyanwaokoro, M. E. (2001). Elements, Practice and Processes of Banking Operations. Hosanna Publications, 1.

Argyle, B. C. (2007). Effective Banking in Information Technology. Jeffcin Publishers, Durbar

Barber, D. (2006). Just what is network marketing. Insight Network Marketing Library.

Big, T. (2003). The Daily Guide to Network Marketing.

Brien, J. A. (2006). Managing information technology in the network enterprise. Management Information Systems Journal, 8 (4).

CBN (2009). Banking supervision. Annual Report, CBN Publication, 15 (7).

Chinenye, O. (2010). Bank Management. Snaap Press, Enugu.

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Coomb, S. R., Saviotti, P. and Walsh, V. (2007) Informational Technology. Macmillan Publishers, London.

David, B. (2004). Break Through Sponsoring and Marketing.

Elendu, C. (2004). Bank Deposits in Modern Banking. Dress Prints, Port Harcourt.

Idowu, P. A., Alu, A. O. and Adagunodo, E. R. (2002). The effects of information technology on the growth of the banking industry in Nigeria. The Electronic Journal on Information Systems in Developing Countries.

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Iwuji, N. (2008). Marketing Relations and Communication. Ngwaland Publishers, Aba.

Jonah, C. J. (2004). Effective Communication in Banking. Foundation Publishers, Okpu-ala-Ngwa.

Kiyosaki, R. (2004). Rich Dad, Poor Dad. Government Up-date, Tokyo.

Levitt, T. (2002). The Globalization of Markets, in Transaction Management. Macmillan Publishers, London.

McJones, B. (2009). Business Strategy and Policy Formulation. Chapman & Hall Inc, London.

Mote, D. (2009). The Richest Man in Babylon. Rhema Publishing Ministry Inc., Benin City.

Nnanna, J. (2009). Policy options for improving Nigeria’s payment systems. CBN Bullion, 23 (2)

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Nwafor, E. (2010). Marketing techniques in banking. Marketing Research Journal, 15 (3)

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79

CHAPTER THREE

RESEARCH METHODOLOGY

3.1 Introduction

This chapter closely looks at the research tools that were

employed in carrying out this study.

3.2 Research Design

The research topic is “Evaluation of the Use of Network

Marketing in Increasing Clientele Base for Forever Living

Products”. The data were collected from the respondents using

both exploratory and the survey research design. In the

exploratory design, the researcher had used the historical

documentation that form the whole bulk of secondary

information which were collected from libraries, books

newspapers, lecturers’ materials (both published and

unpublished), magazines, newsletters and journals.

80

3.3 Sources of Data

Data were collected from the primary source via the survey

design by means of the questionnaire.

3.4 Pilot Survey

Pilot survey was conducted on vendors, agents and

distributors by asking them whether the concept of network

marketing has been embraced and whether it has

revolutionized the marketing of Forever Living Products (FLP).

Twenty people were used. Sixteen of them affirmed the

questions showing 80% success while 4 (20%) were negative.

3.5 Population of the Study

The population of the study was eight hundred (800) made up

of retailers, dealers and customers of FLP as follows:

Retailers in Enugu Metropolis - - - 500

Dealers in Enugu metropolis - - - 100

Consistent customers - - - - - 200

Total - - - - - 800

81

3.6 Sample Size Determination

The sample size is two hundred and sixty seven (267). It is got

from the population unit, using a statistical formula by

Yamane (1967:887) which states thus,

n = N

1 + N (e)2

Where, n = sample size

N = population unit

e = precision (allowable sampling error of 0.05)

In applying the formula,

n = 800

1 + 800 (0.05)2

= 800

1 + 2

= 266.67 ≈ 267

82

3.7 Reliability of Study

The questionnaire are constructed, distributed and collected

by the researcher. Each respondent was given the same set of

questionnaire twice. The time lag between each delivery is

such that the respondent lost touch of the previous one. His

responses in the two periods correlated. Any in-consistent

response to any one particular questionnaire from the same

respondent is discarded. This is the split half technique

adopted by the researcher to test the consistency response

from the respondent.

3.8 Validation of the Study

The questionnaires were given to specialists in data analysis

who penciled them and offered valuable pieces of advice.

Through their advice many questions were reconstructed while

irrelevant ones were discarded. This is to make sure that the

instrument measured what was intended. Finally the

Supervisor approved of it before they were disturbed. This is

the content validity needed by the researcher to embrace all

the facts of the study in the questionnaire.

83

3.9 Methods of Data Presentation and Analysis

The questionnaires were analyzed using simple percentage

distribution formula.

r x 100 where

n 1

r = number of variable response to each questionnaire

n = number of each respondent to each questionnaire.

The hypotheses are analyzed using sample proportion

statistics.

Ps - p

pq where

n

Ps = Proportion of success in the sample taken from the

relevant questionnaire.

P = Proportion of success in the population taken from

the pilot study.

q = (1 – p) = (1 - 0.6) = 0.4 = proportion of failure in the

population.

84

n = observable sample size.

Decision Rule:

Each null hypothesis is accepted on the following criterion;

Accepted Ho (null hypothesis) if the table value (1.96) is

greater than the calculated value. Else, reject Ho.

The table value is at 5% level of significance at to failed test

which is 1.96.

The graph for the acceptance rejection of null hypothesis is

shown below.

Accepted Ho

Rejected Ho

Rejected Ho

85

REFERENCE

Yamane, T. (1967). Statistics: An Introductory Analysis. 2nd

Edition. Harper and Row, New York.

86

CHAPTER FOUR

DATA PRESENTATION AND ANALYSIS

4.1 Introduction

The data that have been collected was collated and presented

in tabular form for presentation and thereafter analyzed. The

questionnaire was in two parts (A & B) for the study. Part A

was meant for the customers in Enugu Metropolis while part B

was for Forever Product dealers and distributors in Enugu

metropolis.

4.2 Analysis of Data

347 questionnaire were distributed while 340 were returned,

showing 97.38% return rate.

Table 4.1: Response Rate of Questionnaire

Respondents Response % response

Customers 200 57.64

Dealers 100 28.82

Distributors 40 11.52

87

Total 340 97.98

Source: Field Survey, 2012

Table 4.1 shows that 340 responses were recovered. Majority

200(57.64%) of the response came from customers while the

lowest response 40(11.52%) came from the distributors.

4.2.1 Presentation of Customer Responses

The response rate of 200 customers of Forever Living products

are presented according to the responses gathered from the

questionnaire administered.

Table 4.2:Age of Customers

Age (Years) Response % response

12-20 5 2.5

21-30 15 7.5

31-50 110 55

Above 50 70 35

Total 200 100

88

Source: Field Survey, 2012

The Table above shows that 200 customers responded. The

highest response rate 110(55%) came from the age range of

31-50. This age range is the active labour group who are prone

to meeting dealer who sell the product to them in their offices.

Nevertheless, the lowest response came from the age range of

12-20 which are mainly young students.

Table 4.3:Sex of Customers

Sex Response % response

Male 180 90

Female 20 10

Total 200 100

Source: Field Survey, 2012

From Table 4.3 above, 180(90%) of the respondents were male

while 20(10%) were female. this indicates that majority of the

customer are male.

89

Table 4.4:Marital Status

Status Response % Response

Married 60 30

Un-married 140 70

Total 200 100

Source: Field Survey, 2012

From the Table 4.4 above, 140(70%) of the respondents were

unmarried while 60(30%) were married. So we conclude that

majority of the customers are not married.

Table 4.5:Educational Background

In Education Response % Response

Primary 50 25

Secondary 70 35

Post-secondary 80 40

Total 200 100

Source: Field Survey, 2012

90

Table 4.5 above shows that there were 200 responses. The

highest response rate 80(40%) were from post secondary

graduates while, the lowest response rate were from primary

school graduates. Thus, we it signifies that most customers

have at least senior school certificate.

Table 4.6:Average Income Per Annum

Income Per Annum

(N)

Response % Response

Below 30,000 30 15

30,000 – 50,000 120 60

Above 50,000 50 25

Total 200 100

Source: Field Survey, 2012

The Table 4.6 above shows that 120(60%) of the respondents

had an average annual income of 30,000 to 50,000. While the

lowest response rate were from those that had an annual

income of less than 30,000, which indices that majority of the

91

customers of Forever Living products earn an average annual

income of 30,000 to 50,000 naira.

Table 4.7 Occupation of Customers

Occupation Response % Response

Civil Servant 50 25

Self Employed 150 75

Total 200 100

Source: Field Survey, 2012

From the Table 4.7 above, 50 (25%) of the respondents said

that the occupation of customers are civil servants while the

highest response 150(75%) said that they are self employed.

Since the highest respondents are self employed, we conclude

that majority of the self employed buy Forever Living products.

Table 4.8:Rate of Buying Forever Living Products

Rate Response % Response

Once a week 15 7.5

92

Once fortnightly 15 7.5

Once monthly 20 10

Daily 150 75

Total 200 100

Source: Field Survey, 2012

Table 4.8 above indicates that majority of the respondents buy

Forever Living products on a daily basis, with a response rate

of 150(75%). Few of the respondents with the lowest response

rate of 15(7.5%) indicates that the purchase the Forever Living

products on a weekly and fortnightly intervals respectively.

Table 4.9:Price of Forever Living Products

Price Response % Response

High 100 50

Moderate 60 30

Low 40 20

93

Total 200 100

Source: Field Survey, 2012

Table 4.9 shows that majority of the respondents 100(50%)

said that the price of Forever Living products are high while

only a few 40(20%) said that the price is low. Thus, we

conclude that the prices of Forever Living Products are high.

Table 4.10: Fluctuation in Prices

Fluctuation in

Price

Response % Response

Yes - -

No 200 100

Total 200 100

Source: Field Survey, 2012

Table 4.10 above shows that all the respondents agree that the

prices of Forever Living product do not fluctuate.

Table 4.11: Source of Products

94

Source Response % Response

Distributors 15 7.5

Company 5 2.5

Customers 180 90

Total 200 100

Source: Field Survey, 2012

Table 4.11 indicates that the highest response 180(90%) said

that customers are the source of products, while a small

percentage 15(7.5%) said that the source of the product is the

company. So, we conclude that customers are the major

source of Forever Living products.

Table 4.12: Getting Forever Living Products

Readily

Availability

Response % Response

Yes 120 60

No 80 40

95

Total 200 100

Source: Field Survey, 2012

Table 4.12 shows that majority of the response 120(60%) said

that they get Forever Living products readily on demand while

only 80(40%) said they do not get it readily on demand. Thus,

indicating that Forever Living products are available on

demand.

Table 4.13: Bring Forever Living Products to your Door

Step

Forever Living Product are

brought to Door Step

Response % Response

Yes 170 85

No 30 15

Total 200 100

Source: Field Survey, 2012

From Table 4.13 above, majority 170(85%) said that

distributors bring Forever Living products to the door step of

96

their buyers while, 30(15%) disagrees. So, we conclude that

distributors bring the products to the door step of their

buyers.

Table 4.14: Convincing Friends

Convincing

Friends

Response % Response

Yes 170 85

No 30 15

Total 200 100

Source: Field Survey, 2012

From Table 4.14, majority 170(85%) of the responses said that

friends could be convinced on network marketing while

30(15%) disagreed. So, we conclude that by talking to friends

through network marketing, they could be convinced.

4.2.2 Presentation of Dealer and Distributors Responses

The responses of 100 and 40 dealers and distributors of

Forever Living products respectively are hereby presented

97

according to the responses gathered from the questionnaire

administered.

Table 4.15: Age of Dealers/Distributors

Age (Years) Response % Response

12-20 5 3.57

21-30 30 21.43

31-50 100 71.43

Above 50 5 3.75

Total 140 100

Source: Field Survey, 2012

The Table 4.15 indicates that majority of the respondents

100(71.45%) fall within the age range 31-50, while the lowest

respondents 5(3.75%) fall within the age range 12-20 as well

as above 50 respectively.

Table 4.16: Sex of Dealers/Distributors

98

Sex Response % Response

Male 100 71.43

Female 40 28.57

Total 140 100

Source: Field Survey, 2012

Table 4.16 above shows that majority of the

dealers/distributors are male with a response rate of

100(71.43%).

Table 4.17: Marital Status

Status Response % Response

Single 120 85.71

Married 20 14.29

Total 140 100

Source: Field Survey, 2012

Table 4.17indicates, that the lowest respondents are un-

married with a response rate of 20(14.29%).

99

Table 4.18: Educational Qualification

Educational Qualification Response % Response

Primary School 100 71.43

Secondary School 25 17.86

Above Secondary School 15 10.71

Total 140 100

Source: Field Survey, 2012

From Table 4.18, data gathered indicates that majority

100(71.43%) of the respondents are primary school certificate

holders while, post secondary school holders recorded the

lowest response rate 15(19.71%). This indicates that majority

of the dealers/distributors are primary school certificate

holders.

Table 4.19: Experience in the Business

Experience (Years) Response % Response

1-5 100 71.43

100

6-10 30 21.43

11-15 5 3.57

Above 15 5 3.57

Total 140 100

Source: Field Survey, 2012

From Table 4.19, data gathered indicates that majority

100(71.43%) of the dealers/distributors has had an experience

of between 1-5 years while, only a few 5(3.57%) had an

experience of above 15 years.

Table 4.20: Unsold Products

Unsold Products Response % Response

Great 110 78.57

Average 20 14.29

Small 10 7.14

None - -

101

Total 140 100

Source: Field Survey, 2012

Table 4.20 shows that most of the respondents (78.57%) are of

the opinion that unsold products are usually great. However, a

few 7.14% are of the opinion that unsold products are small.

Table 4.21: Handling of Unsold Products

Handling Unsold Products Response % Response

Return to proprietors - -

Return to the company 140 100

Pay for it in the next collection - -

Sell them at reduced price - -

None of the above - -

Total 140 100

Source: Field Survey, 2012

102

From the Table 4.21 above, every one of the respondent is of

the opinion that every unsold product is returned to the

company.

Table 4.22: Creating New Lines of Customership

Creating new lines Response % Response

Frequently 140 100

Seldom - -

Intermittently - -

None - -

Total 140 100

Source: Field Survey, 2012

From the Table 4.22 above, everybody said that new lines of

customership is frequently been created in the marketing of

Forever Living Products.

Table 4.23: Frequency of Price Fluctuation

103

Frequency of Price

Fluctuation

Response % Response

Often - -

Rarely - -

Does not - -

Total 140 100

Source: Field Survey, 2012

Table 4.23 shows that all the respondents are of the opinion

that the price of Forever Living Products does not fluctuate

frequently.

Table 4.24: Determinant of the Price of Forever Living

Products

Determinant Response % Response

Market Force 30 21.43

Company Policy 100 71.43

104

Government 10 7.14

Others specify - -

Total 140 100

Source: Field Survey, 2012

Table 4.24 indicates that the majority of the respondents

100(71.43%) agrees that the determinant of the prices of

Forever Living Products are company policy. However, only a

few respondent 7.14% says it determined by government.

Table 4.25: Making Customers Partners in Selling Process

Rate Response % Response

Occasionally - -

Often - -

Not yet done 140 100

Total 140 100

Source: Field Survey, 2012

105

Table 4.25 shows that all the respondents agree that making

customers partners in the selling process is yet to happen.

Table 4.26: How Marking Customers Co-sellers Induce

Better Production

Making customers co-sellers Response % Response

By increasing sales - -

By giving Commission - -

Both reasons 140 100

Total 140 100

Source: Field Survey, 2012

From the Table 4.26 above, all respondents agrees that

making customers co-sellers would induce better production

and sales.

Table 4.27: How network Marketing Can Stabilize sales of

FLP

Network Marketing Stabilize Response % Response

106

Sales

By making every attracted buyer - -

By imputing innovative ideas in

buyers who are also sellers

- -

By increasing profit base of the

seller who are also the buyers

- -

All of the above 140 100

Total 140 100

Source: Field Survey, 2012

Table 4.27 above shows that everyone agrees that network

marketing would stabilize sales of Forever Living Products.

Table 4.28: How will Network Marketing keep the FLP in

Perfect Competition

Strategies Response % Response

By increasing patronage - -

107

By converting customers to

sellers

- -

By converting sellers to buyers - -

All of the above 140 100

Total 140 100

Source: Field Survey, 2012

Information collated in Table 4.28 shows that all the

respondents agrees that there are many strategies that can be

used to create awareness of network marketing of Forever

Living Products.

Table 4.29: Problems that will Hinder Network Marketing

Problems Response % Response

Poor Awareness - -

Mass Illiteracy - -

Poverty - -

108

Lack of support from

government

- -

All of the above 140 100

Total 140 100

Source: Field Survey, 2012

Table 4.29 shows that majority agrees that many problems

hinder network marketing.

Table 4.30: Nature of Correlation between Network

Marketing and Unsold Products of FLP

Variables Response % Response

Highly Positive 235 69.12

Positive 65 19.12

Average 20 5.88

Negative 15 4.41

Highly Negative 5 1.47

109

Total 340 100

Source: Field Survey, 2012

Table 4.30 suggests that there is a highly positive correlation

between network marketing and unsold products, with a

response rate of 230(69.12%). A negligible number 5(7.4%)

says it is highly negative.

Table 4.31: Nature of Relationship between Network

Marketing and minimization of Price

Fluctuation of FLP

Variables Response % Response

Highly Positive 229 67.35

Positive 30 8.83

Average 51 15.00

Negative 18 5.29

Highly Negative 12 3.53

Total 340 100

110

Source: Field Survey, 2012

In Table 4.31, the highest response goes to highly positive

relationship between network marketing and minimization of

price fluctuation of FLP. This suggests that there is a highly

positive relationship between network marketing and

minimization of price fluctuation of FLP.

Table 4.32: Nature of Relationship between Network

Marketing and Consistent Production of FLP

Variables Response % Response

Highly Positive 228 67.06

Positive 59 17.35

Average 12 3.53

Negative 30 8.82

Highly Negative 11 3.24

Total 340 100

Source: Field Survey, 2012

111

The information analyzed in Table 4.32 shows that majority is

of the opinion that there is a highly positive relationship

between network marketing and consistent production of FLP.

Table 4.33: Nature of Link between Network Marketing and

Competitive Strength of FLP

Variables Response % Response

Highly Positive 225 66.18

Positive 75 22.06

Average 10 2.94

Negative 17 5.00

Highly Negative 13 3.82

Total 340 100

Source: Field Survey, 2012

Table 4.33 above indicates that there is a highly positive link

between network marketing and competitive strength of FLP,

since it has the highest response rate of 225(66.18%) against

the lowest response rate of 10(2.94%).

112

Table 4.33: Nature of Link between Network Marketing and

Competitive Strength of FLP

Variables Response % Response

Highly Positive 224 65.88

Positive 46 13.53

Average 28 8.24

Negative 19 5.59

Highly Negative 23 6.76

Total 340 100

Source: Field Survey, 2012

The information in Table 4.33 above, shows that majority

224(65.88%) are of the opinion that there is a correlation

between network marketing and the expansion of patronage of

FLP.

4.3 Hypotheses Testing

113

The hypotheses in this study were analyzed using sample

proportion statistics and decision rule says, accept Ho if the

table value (1.96) is greater than the calculated value. Else,

reject Ho and accept Ha.

Hypothesis One

Ho1: There is no correlation between network marketing and

the unsold products of Forever Living Products.

Ha1: There is a correlation between network marketing and

the unsold products of Forever Living Products.

This is tested from the responses in Table 4.30

PS = 0.6765, n = 340, P = =0.60, q = 0.40

Z = ps - p

pq n

= 0.6765 – 0.60

0.60 x 0.40

340

= 2.88

114

Since the calculated value (2.88) is greater that the table value

(1.96), then we reject the null hypothesis Ho1 and accept the

alterative Ha1

Hypothesis Two

Ho2: There is no relationship between network marketing and

minimization of price fluctuation.

Ha2: There is a relationship between network marketing and

minimization of price fluctuation.

This is tested from responses in Table 4.31

PS = 0.6676, n = 340, P = 0.60, q = 0.40

Z = ps - p

pq n

= 0.6676 – 0.60

0.60 x 0.40

340

= 2.54

Since 1.96 is not greater than 2.54, Ho2 is rejected and Ha2

accepted. This means that there is a relationship between

network marketing and minimization of price fluctuation.

115

Hypothesis Three

Ho3: There is no strong relationship between network

marketing and consistent production.

Ha3: There is a strong relationship between network marketing

and consistent production.

This is tested from responses in Table 4.32

PS = 0.6626, n = 340, P = 0.60, q = 0.40

Z = ps - p

pq n

= 0.6626 – 0.60

0.60 x 0.40

340

= 2.35

Since 1.96 is not greater than 2.35, Ho3 is rejected and Ha3

accepted. This means that there is a strong relationship

between network marketing and consistent production of

forever Living Products.

Hypothesis Four

116

Ho4: There is no significant difference between network

marketing and competitive strength of Forever Living

Product.

Ha4: There is a significant difference between network

marketing and competitive strength of Forever Living

Product.

This is tested from responses in Table 4.33

PS = 0.6716, n = 340, P = 0.60, q = 0.40

Z = ps - p

pq n

= 0.6716 – 0.60

0.60 x 0.40

340

= 2.69

Since 1.96 is not greater than 2.69, Ho4 is rejected and Ha4

accepted. This means that there is significant difference

between network marketing and competitive strength of

Forever Living Products.

Hypothesis Five

117

Ho5: There is a negative correlation difference between network

marketing and expansion of patronage of Forever Living

Products.

Ha5: There is a postive correlation difference between network

marketing and expansion of patronage of Forever Living

Products.

This is tested from responses in Table 4.34

PS = 0.6788, n = 340, P = 0.60, q = 0.40

Z = ps - p

pq n

= 0.6788 – 0.60

0.60 x 0.40

340

= 2.96

Since 1.96 is not greater than 2.96, Ho5 is rejected and Ha5

accepted. This means that there is a positive correlation

between network marketing and expansion of patronage of

Forever Living Products.

Discussion of Findings

118

The findings from this study indicates that majority (60%) of

the Forever Living Product customers are average income

earners with an annual income of between N30,000 and

N50,000 only. This is so probably because network marketing

is yet to be introduced into the sells of Forever Living Product.

According to Kisoyaki (2004), network marketing is the only

way to increase the income of any meaningful marketer, and

this is achieved by looking out for opportunities to show case

ones’ product through people, different media of

communication and through other sellers.

In addition, the present study found out that through network

marketing, the problem of unsold products can be reduced.

Network marketing also have been found to increase the

competitive strength of Forever Living Product as well as been

capable of addressing market expansion. This is in line with

the report of Obi (2006) which states that network marketing

explores all near and distant markets existing already for a

product and that it uses people, materials, machines,

119

information technology to achieve market penetration and

optimality thus, creating new clientele for the product/market.

Network marketing promises to address inconsistent products,

price fluctuation as well as unsold products since through

network marketing, goods could be delivered to the customers

directly from the suppliers (Auther, 2001) and unsold products

can easily be returned to the company (Mote, 2009).

As have been found out in this study, anybody can succeed in

the marketing of Forever Living Product since most of the

distributors are those with secondary school certificate and

below. This finding agrees with the report of Barber (2006)

which states that network marketing is an aspect of direct

marketing which does not require any expertise to become a

marketer nor does it need a trained marketer to top the level

or to be the most rewarded seller.

120

121

CHAPTER FIVE

SUMMARY OF FINDINGS, CONCLUSION AND

RECOMMENDATIONS

5.1 Introduction

The summary of finding, conclusion and recommendations to

this present study are presented in this chapter.

5.2 Summary of Findings

After the analysis, the study found the following:

• Network marketing is a new phenomenon yet to be

implemented in Forever Living Product distribution.

Majority (100%) agrees that making customers’ partners

in the selling process of Forever Living Products are yet to

be actualized.

• Network marketing is very feasible in Forever Living

Product. 100% of the respondents agree that Network

marketing can keep Forever Living Products in perfect

competition; and can as well, stabilize the sales of

Forever Living Products.

122

• There are many unsold products recorded on the sales of

Forever Living Products which necessitates network

marking. This finding recorded 78.57%.

• Majority of the buyers (60%) are average income earners,

earning about N30,000 – N50,000 per annum.

• The distributors (71.43%) are chiefly primary school

certificate holders.

• No seminar, conferences or workshops are been

conducted for the customers, dealers and distributors of

Forever Living Products on strategic marketing.

• The introduction of network marketing would really

improver the competitive strength of Forever Living

Products. 67.06% of the respondent supports to this

finding.

• Many people including distributors are not aware of

network marketing. Nevertheless, majority (100%) sees

that problems such as poor awareness, poverty, and lack

of support from government can hinder network

marketing of Forever Living Products.

123

5.3 Conclusion

The concept of network marketing has not been consistent in

marketing new products but it is not altogether a new

phenomenon. Diverse opinions on it show that it is very much

a welcome idea. There are many unsold products in the

marketing of Forever Living Products in Nigeria. These are

loses to both distributors, proprietors and the company.

Carried further, it implies that there would be retrenchment of

workers if nothing is done. This tallies with the view of Moha

Otanka (2000:54) in the literature review that the jobs of

middle-men in marketing and distributions in Nigeria is

primarily affected by the economic crunch pervading the

economy which makes less and less profit for the company

with the efflux of time, and concomitant effect of frustrating

the sellers. Both proprietors, agents or distributors go without

profit.

5.4 Recommendations

The followings are therefore recommended:

124

1. Network marketing should be encouraged in the

marketing of Forever Living Product. This, would reduce

losses due to unsold products, retain more workers on

the job, and make meaningful profit for the company and

proprietors in particular.

2. Government should create enabling environment for the

operationalities of network marketing especially in this

era massive youth unemployment.

3. Proprietors should devise good means of encouraging

work performance for the sellers.

4. Seminars, conferences and workshops should be

organized for sellers and buyers from time to time, on the

need for network marketing. This will create liking for it

and offer avenue for asking thoughtful questions by

inquisitive minds.

5. Management should recruit more qualified personnel to

beef up the quality of their products so as to attract wider

patronage. This will ginger more networking in the

marketing.

125

6. Inferior products should be avoided altogether as this

would deter most refined minds in patronage.

7. Proprietors should review the cost of production

downwards since unsold products would be eliminated in

network marketing.

8. Government should guarantee perfect market system,

this would foster better patronage and thus, further

attract networking.

9. Expired products must not be sold as it would kill

patronage and thus discourage networking.

10. Seminars, workshops, conferences and symposia should

be conducted to address the sells and distribution of

Forever Living Products. Informing dealers and

distributors that majority of the customers are average

and low-income earners. Such, a new venture as network

marketing would enable them improve the income earned

per sale and thus, ginger them to make more sells. This

would make them to make partners in the Forever Living

Product production and distribution. It will make the

proprietors and the company to make maximum profits

126

since there will be no returns. It will increase

employment and revenue to the authorities.

127

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132

APPENDIX 1

QUESTIONNAIRE

SECTION A: PERSONAL LETTER

Marketing Department,

University of Nigeria,

Enugu Campus,

Enugu.

Dear Sir,

I am conducting a research work on the topic: The Application

of Network Marketing in Forever Living Products.

It is designed to address the issues raised. They are for

academic documentations only and are not meant to

undermine your integrity. Be fully assured that all information

collected will be treated with the utmost confidentiality.

Yours Faithfully,

Aniakudo, C. S.

133

PART A: CUSTOMERS

SECTION B: Personal File

1. What is your age?

a. 12 – 21 years b. 21 – 30 years

c. 31 – 50 years d. d. Above 50 years

2. What is your gender?

a. Male b. Female

3. What is your marital status?

a. Single b. Married

4. What is your educational qualification?

a. Primary School b. Secondary School

c. Above Secondary School

5. What is your average income per annum?

a. Below N30,000 b. N30,000 – N50,000

c. Above N50,000

6. What is your occupation?

a. Civil Servant b. Self Employed

7. How often do you buy the Forever Living Product?

134

a. Once a week b. Once in two weeks

c. Once a month d. Daily

8. Why do you prefer products of Forever Living Products?

a. Availability b. Low price

c. Interesting quality d. Other things Specify

9. What can you say about the price of Forever Living

Product?

a. High b. Moderate c. Low

10. Does price fluctuate always?

a. Yes b. No

11. If yes above, what could be the cause?

a. Government intervention b. Company policy

c. Market interaction d. All e. None

12. Where do you get Forever Living Products?

a. From the customers b. The company

135

c. from the distributors/dealers

13. Do you get the Forever Living Products wherever you

need them? a. Yes b. No

14. If no above, what could be the cause?

a. Poor distributor b. Uniformed

distributor

c. Vast territory to be covered c. All

15. Are the products of Forever Living Products brought to

your door steps?

a. Yes b. No

16. If you are made a partner in the selling process, can you

convince your friends, relations, and neighbours to join

you?

a. Yes b. No

17. If no above, why?

a. No professional training b. No remuneration

after

136

c. There are restrictions d. All e. None

PART B: DISTRIBUTORS

1. What is your age?

a. 12 – 21 years b. 21 – 30 years

c. 31 – 50 years d. above 50 years

2. What is your sex?

a. Male b. Female

3. What is your marital status?

a. Single b. Married

4. What is your educational qualification:

a. Primary School b. secondary School

c. Above Secondary School

5. How many years have you been in this business of

Forever Living Products?

a. 1 – 5 years b. 5 – 10 years

c. 10 – 15 years d. above 15 years

137

6. To what extent do you have unsold Forever Living

Products?

a. Great b. Average

c. Small d. None

7. How do you handle unsold products?

a. Return to proprietors b. Return to company

c. Pay at next collection d. Sell at reduced price

e. None of the above

8. How often do you create new lines of customership?

a. Frequently b. Seldom

c. Intermittently d. None

9. If frequently above, how do you do it?

a. By giving customers bonanza

b. By encouraging free consumption

c. By encouraging commission

d. Other specify ………………………………………………..

10. How frequently do the prices of Forever Living Product

fluctuate?

138

a. Often b. Rarely c. Does not

11. What determines the price of Forever Living Products?

a. Market Force b. Company Policy

c. Government d. Others Specify

………..

12. To what extent have you tried making customers

partners in the selling process?

a. Occasionally b. Often c. Not Yet

Done

13. If occasionally or often above, how do you remunerate

them?

a. By commission b. By preference

c. Both d. None

14. How will making customers co-sellers induce better

production?

a. By increasing sales

b. As sales increase, they receive their commission

c. Both reasons above

139

15. How will network marketing stabilize sales of Forever

Living Products

a. By making every attracted a buyer

b. By imputing innovative ideas in the buyer who is the

seller also

c. By increasing the profit based of the seller who is also

the buyer

d. All of the above

16. How will network marketing keep the Forever Living

Products in perfect competition?

a. By increasing patronage

b. By converting the customers to sellers

c. By converting the sellers to buyers

d. All of the above

e. None of the above

17. What strategies can be used to create fresh awareness of

network marketing of Forever Living Products

a. By using promotional tools

b. By placing adverts in visual, audio, and audio-visual

media

140

c. All of the above d. None of the above

18. What problems will hinder full realization of the

objectives of network marketing of the Forever Living

Products?

a. Poor awareness b. Mass illiteracy

c. Poverty

d. Lack of support from government

e. All of the above f. None of the above