Survey
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Network Marketing Powerpoint Templates Industry www.powerpointpresentationon.com Page 1 Highlights of the Industry • • • • It first popularized by Amway, in 1950s in USA Total turnover estimated at Rs 301,044 crores 2005 with an annual growth rate of 25% People have negative perception of direct selling organizations and network marketing organizations • The aggressive selling techniques, exaggerations of facts in recruiting, pyramiding scams and unethical way of exploiting relationships all together form a basis for this negative perception. Powerpoint Templates Page 2 Introduction of Network Marketing • Long relied on direct marketing to target customers without spending a lot of money • Marketers have taken the direct model one step further, i.e. not only they do the sales, but recruit and train new distributors • The advantage in network marketing is the commission paid not only for direct sales made by the salesperson , but also from the sales made by the recruits made by him. Powerpoint Templates Page 3 Contd. • According to the Direct Selling Association in the United States, 70% of the revenue from the direct selling industry was generated by network marketing companies • In the case of Pakistan, network marketing momentum was conspicuous in India during mid 90’s followed by the establishment of the Pakistan arm of Gold Mine International. • Total turnover of network marketing companies in Pakistan was estimated at Rs.30, 104 crores Powerpoint Templates Page 4 Contd. • In 2005 with an annual growth rate of 25% (Tribute, 2006). GMI, EMI, Tiens, Unaico site talk and Sky Aims are the major network marketing players in the Pakistani market. • Pakistani middle class was projected to grow from 1.1 crore households in 2001-02 • 1.7 crore households in 2005-06 and the figure is expected to be 2.8 crore by 2009-10. Powerpoint Templates Page 5 Contd. • There are others like Fahad,who have dubbed MLM schemes as unethical, and guilty of ‘instrumentalising’ relations rooted in love and affection and as such is socially and psychologically unacceptable to most people in our society. • The researchers in this study propose to explore whether such a phenomenal growth of network marketing in Pakistan is because of the exploitation of relationships with friends and relatives. Powerpoint Templates Page 6 Objectives of the Study • To examine the exploitation of relationships in Network Marketing • To deny the wrong perception about earning in network marketing industry that one can earn without working. • To prove that as density or saturation of the members increased scope of working does not decreased. Powerpoint Templates Page 7 Hypotheses • H1:The Network Marketing is not likely to exploit the relationships. • H2:The perception about network marketing that one can earn without working is wrong. Earning is only done by working. • H3:Scope decreases with the increase in density. Powerpoint Templates Page 8 Defining Terms • Network Marketing is a subset of direct selling and is also known as “multilevel marketing”, “structure marketing” or “multilevel direct selling • First, sales people (distributor) may earn compensation from their personal sales of goods and services ” • Second, they may earn compensation from sales to or purchase from those persons whom they have personally sponsored or recruited into the network (down lines). Powerpoint Templates Page 9 Hence Network Marketing • • • Buying products, Selling products, Finding other agents to buy and sell products • Mark up usually ranges from 20% to 50%. • Distributors receive a monthly commission for their ‘personal volume’, Powerpoint Templates Page 10 Contd. • Distributors receive a net commission on the sales of those they recruit into the network. • The sunflower and pyramid are the two common business models in network marketing Powerpoint Templates Page 11 Relationship • For the purpose of our study, the researchers define relationships as those with the emotional attachment and/or intimacy existing among relatives and friends. • Relatives we mean closely related persons like siblings, parents, in - laws, cousins, nieces and such others. • By ‘friends’ the researchers mean those persons who are dependable, trustworthy and loyal. Powerpoint Templates Page 12 Methodology • (Questionnaire). • to study the exploitation of relationships in network marketing, the researcher used the multi level marketing company, Sky Aims • Data was collected from 50 respondents using convenient sampling method • The sample was drawn from Sky Aims outlet at Lahore for 5 consecutive days while the channel members were in the outlets for getting products. Powerpoint Templates Page 13 Contd. • The sample of respondents were segmented and classified into three classes based on experience in Amway’s network marketing. • Out of 50 respondents, 17 were below 2 years, • 20 between 2 to 5 years and • 13 were above 5 years • 10 relatives,20 friends, 15 Colleagues and 5 others are respondents. Powerpoint Templates Page 14 Relation satisfaction with Upline Observed Frequencies Relation satisfaction with Up line Status Relatives Friends Colleagues Satisfied 7 15 13 2 37 Unsatisfied 3 5 2 3 13 Total 10 20 15 5 50 Powerpoint Templates Others Total Page 15 Relation satisfaction from the downline Observed Frequencies Relation Satisfaction with Down line Status Relatives Friends Colleagues Satisfied 8 14 15 4 41 Unsatisfied 2 6 0 1 9 Total 10 20 15 5 50 Powerpoint Templates Others Total Page 16 Number of people who earned without working. Observed Frequencies Status Relatives Friends Colleagues Earned 2 3 1 0 6 Not earned 8 17 14 5 44 Total 10 20 15 5 50 Powerpoint Templates Others Total Page 17 Relation between scope and density Observed Frequencies Growth rate Experience Fast Moderate Slow Total Below 2 years 4 9 4 17 Between 2 to 5 years 4 11 5 20 Above 5 years 7 4 2 13 Total 15 24 11 50 Powerpoint Templates Page 18 Conclusions • Relations are not exploited in network marketing. • One can only earn by doing work. • Density does not decreases the scope because new market is always available. Powerpoint Templates Page 19 Powerpoint Templates Page 20 Powerpoint Templates Page 21