“MULTI-LEVEL MARKETING IN TACLOBAN CITY: AN ASSESSMENT TO ITS

MARKETING EFFECTIVITY AND STRATEGY”

INTRODUCTION

In the world of business, different firms are in existence to compete with one another. Various
techniques and strategies are generated and developed to achieve each firm's success in terms of stable
market standing and customer's loyalty. All are in great performance creating the best strategy for the
best reason and benefit.

One of the most popular and widely used strategies of the different business firms particularly
in Tacloban City is the Multi-level Marketing. Multi-level Marketing is a legal combination of
networking and franchising.(www.BusinessDictionary.com) The networking elements create a business
through your own talent, perspiration, dedication and skill. The franchising element involves
representing and selling the products or services of an existing and successful organization. For
example, Avon Cosmetics, Unlimited Network of Opportunities (UNO) Corporation and Royale
Business Club are well-known companies in Tacloban operating in the multi level marketing field.
These companies and many others like them have great track records, they support their distributors
with marketing material and make sure they are well trained on their range of products, keeping them
up to date on new product launches and providing guidance on a regular basis. Unlike conventional
businesses where employed managers recruit, train and motivate salespeople, in Multi-level Marketing
business, independent distributors are encouraged to build their own sales teams.

In any Multi-level Networking business, all new participants are able to generate income from
their own personal sales to consumers and also in the form of bonuses payable on sales achieved by
anyone they recruit. Each person they recruit, train and motivate is encouraged to do the same. This
means that the leader of an extended network benefits from the sales of the total network they have
created.(www.answers.com/topic/multilevel-marketing-mlm)This guide is aimed at people considering
joining a Multi-level Marketing as a distributor. It explains how the Multi-level Marketing process
works and provides guidance about the relevant regulations. It also provides advice about how you can
operate successfully as a distributor in a Multi-level Marketing. The products and company are usually
marketed directly to consumers and potential business partners by means of relationship referrals and
word of mouth marketing. Here in this research, we will be able to dig deeper into their core region on
how they market their products and services effectively and to know different strategies that had come
up to clinch the number one spot and be talk of town. We are going to have a thorough assessment to
these companies that will help us become successful marketers in the upcoming years.
 STATEMENT OF THE PROBLEM

The purpose of this problem is to study and make an assessment on the market effectiveness and
strategy of the multilevel marketing in Tacloban City.

Specifically this research seeks to answer the following questions:

1. What are the existing multilevel companies in Tacloban City?

2. What are the advantages and disadvantages in multilevel marketing?
3. What strategies did they employ to encourage people to join?
4. What are the risks in engaging multilevel networking?
5. How does multilevel marketing assess the market effectiveness?

SIGNIFICANCE OF THE STUDY

Students. This research will serve as an aid for them to be exposed in such kind of marketing activity
that will help them be prepared and develop their skills as they enter into the real world of business.
Through this study, students will be guided in choosing the right option where they think is the best
company to indulge in.

Marketers. This study will provide information about marketing opportunities and problems that are
presently encountered in Multi-level marketing. With this research, marketers will be guided in their
decision-making.

Teachers. They will gain information pertaining to Multi-level Marketing which they can import to
their students, fellow teachers, friends and relatives who are interested to engage in such kind of
business.

Researchers. As researchers, we would be able to enhance our abilities and skills such as
communication, thinking and be able to develop our public relations. In addition, this is a partial
fulfillment to pass the subject of Marketing Research.

Community. This research will enlighten the minds of people for them to have a better understanding
of the nature of Multi-level Marketing including it's advantages and disadvantages.
 DEFINITION OF TERMS

Assessment.
Conceptual: an act of assessing or determining an amount to be paid.
Operational: to look upon the effectiveness and strategies used in Multi-level Marketing.

Distributors.
Conceptual: someone who markets merchandise; allocator: a person with authority to allot or
deal out or apportion; a company that markets merchandise.
Operational: the persons who are responsible in disseminating the products in a Multi-level
Marketing.

Effectiveness.
Conceptual: producing a specified effect.
Operational: producing a specified effect.

Franchising.
Conceptual and Operational: is a form of marketing and distribution in which the franchiser
grants to an individual or company (the franchisee) the right to run a business selling a product or
providing a service under the franchiser's business format and identified by the franchiser's trade mark
or brand.

Market.
Conceptual: a meeting place of people for buying and selling merchandise; a space or a building
for which a market is held.
Operational: an act of selling.

Market Standing.
Conceptual and Operational: has come to mean the process by which marketers try to create an
image or identity in the minds of their target market for its product, brand, or organization; ranking of
a brand, product, or firm, in terms of its sales volume relative to the sales volume of its competitors in
the same market or industry.

Networking.
Conceptual: the making of contacts and trading information as for career advancement.
Operational: a type of business opportunity that is very popular with people looking for part-
time, flexible businesses.

Strategy.
Conceptual: the planning and conduct of war; a political or economic or business policy; refers
to a plan of action designed to achieve a particular goal.
Operational: ways or actions done towards specific goals.
 SCOPE AND DELIMITATIONS

This research was conducted to gather information about Multilevel Marketing in Tacloban City
specifically in having an assessment to its marketing effectiveness and strategy. This would be helpful
for us to determine the advantages and disadvantages that might be encountered in this multilevel
marketing. Also this study would also learn the different strategies that such businesses use to
encourage people to join into their firms.

Subject matter : Multilevel marketing in Tacloban City

Topics : To determine the overall advantages, disadvantages and the risks in engaging in multilevel
marketing. This also includes the learning of the strategies that are being used to encourage people to
join in such kind of business.

Locale of the study: the multilevel marketing companies in Tacloban City specifically Royale
Business Club, Unlimited Networking Opportunities (UNO)s and AVON cosmetics company.

Population or Universe : the top three most successful and most patronized multilevel marketing
companies in Tacloban City.

Period of the study : the gathering of data including the field study takes about a month then it takes
another month for the analyzation and other statistical interpretations.
 CONCEPTUAL FRAMEWORK

INPUTS PROCESS OUTPUT

- Reputation of the - Assessment - Sufficient

company And Effective and adequate

Process knowledge and

- Quality of the
Of Multi Level skills of the
products
Marketing people towards

- Effective in Multi Level

marketing Tacloban City Marketing.

strategies and

methods

- Period of
existence of the
company

The input talks about the different factors that are necessary for the people to indulge in these kind of
business. The reputation of the company is one factor wherein the customer asks in order to gain their
trust and security. People won’t easily enter a multi level marketing if the company has a bad
reputation. In addition, other stated inputs can also influence the minds of the people for them to be
active in the business.
The process speaks about the methods on how we could manage the inputs to carry out the desired
outputs which will result to acquisition of sufficient and adequate knowledge about Multi Level
Marketing.