DESIGN AND IMPLEMENTATION OF MULTI-LEVEL MARKETING SYSTEM

ABSTRACT

Multi Level Marketing is a very popular business model in the Western countries. It is a kind of hybrid of the method of distribution of goods and the method of building a sales network. It is one of the safest (carries a very low risk) ways of conducting a business activity. The knowledge about functioning of this business model, both among theoreticians (scanty literature on the subject) and practitioners, is still insufficient in Nigeria. At least infinitesimally, bridges the gap in the recognition of Multi Level Marketing issues. The aim of the study was, first of all, to describe Multi Level Marketing, to indicate practical benefits of this business model as well as to present basic systems of calculating a commission, which are used in marketing plans of companies. The discussion was based on the study of literature and the knowledge gained in the course of free-form interviews with the leaders of the sector.

CHAPTER ONE

1.0 Introduction

In today’s fast paced world, information is the essence to success. In the last two decades or so, man has made several advances in the field of information Technology. Today, it is much easier to communicate with people, no matter where they may be. Today, use of hi-tech devices like cellular phones, palm top computers and tablet PCs is as common as having a cup of tea. This power to attain information creates profitable and successful companies.

Computer is one such device that can harness this power, combined with the information technology advances and high-speed communication that can create a very reliable network for a company to function on. The World Wide Web (www) that was developed initially for defence purchase became an essential in the World can be interconnected and information can be exchange, thus making it the backbone of the hi-tech world. The web is a user-friendly graphics based part of the global Internet, accessible to any person or organization anywhere in the world. This pertains to business utilities also in the following ways. A client today demands not only the best of product from the company but also the easy access and availability at low cost. This can be effectively provided by a company web presence. Such a web-based presence can be an effective tool in efficient trading. It also helps the company maintain and improve the relations with their clients.

1.1 Background of Study

The concept of running business operations through Multi Level Marketing is still a little known business strategy on the Polish market. Low level of knowledge about the issue is most likely caused by small amount of publications concerning the subject, as well as limited access to these publications. This state of affairs isn't just bad for the development of this form of activity but also gives rise to flawed interpretations of the model by presenting it as something akin to a financial pyramid or quasi-business.

Despite these obstacles in the environment, recently the activity of companies from the branch has been growing. Companies that want to gain competitive edge an gain a foothold on the market by basing their marketing strategy on Multi Level Marketing or using some of its elements to obtain particular benefits are attracting more and more attention. Strong, constantly growing interest in such solution for introducing and distributing products draws attention to this area of knowledge and boosts demand for expertise making it possible to work out clever and well thought-out strategy. In this state of affairs, the goal of this article is to explain the essence of Multi Level Marketing, adapting its definition to current reality and presenting basic systems of calculating commissions appearing in marketing plans of companies from the branch, together with presentation of practical benefits. The deliberations are based mainly on the study of scientific publications. Moreover, knowledge derived from direct research, carried out in form of interviews with leaders of companies basing their activity of Multi Level Marketing was used.

When you think about starting your own business, you almost always take into consideration the risk associated with the business, which directly connected with the amount of capital that has to be invested in the venture. People characterized by high tolerance for uncertainty concerning the return on investment usually accept the challenge, those more cautious usually don't. This usually is associated with high market entry barriers and huge capital needed to compete with current giants and major players on the market. Lack of experience and lack of awareness of common practices in a given branch are another reason discouraging usually young prospective businessman. However, few of them know that the level of risk associated with capital and an idea can be regulated in a flexible way using three different business models that can be used as a foundation for a business. The first is a wellknown, typical business model, which involves skillful implementation of a concept by means of owned capital. In this model the risk of failure is very high, as it is associated with two unknowns. One of them is the question whether an idea can catch on the market. The second unknown is the uncertainty concerning the return on investments.

1.2 Statement of Research Problem

Now, as of today, the company require a lot of manual work to be done regarding generation of enquiries, receipt of quotation, generation of purchase order, confirmation etc…. All this can be done in a simplified way by our online facility, allowing an administrator, appointed by the company to access the company data base, interact with clients and suppliers, deal with them and transact accordingly. The current system the company function in a much difficult way, to obtain orders and clear off work in an appropriate manner.

Calculation of client’s reports and levels of earning, which can be used for maintaining and evaluation of sales activities. Clients do not see a clear and visible goals so as to accomplish them. It is very difficult to motivate the client to do better, with reference of his previous progress. This sort of huge information database traversing manually can be worrisome especially due to the matrix involved in a multi-level marketing in the country.

1.3 Objectives of the Study

In today’s fast paced world, information is the essence to success. In the last two decades or so, man has made several advances in the field of information Technology. Today, it is much easier to communicate with people, no matter where they may be. Today, use of hi-tech devices like cellular phones, palm top computers and tablet PCs is as common as having a cup of tea. This power to attain information creates profitable and successful companies.

Computer is one such device that can harness this power, combined with the information technology advances and high-speed communication that can create a very reliable network for a company to function on. The World Wide Web (www) that was developed initially for defence purchase became an essential in the World can be interconnected and information can be exchange, thus making it the backbone of the hi-tech world. The web is a user-friendly graphics based part of the global Internet, accessible to any person or organization anywhere in the world.

This is the platform that we have chosen to work upon for the following reasons:

- Because of it’s essential in day-to-day life.

- Simplicity of its use.

- Easy accessibility.

1.4 Significance of the Study

The aim of this project is to build a system that helps any type of M.L.M (Multi Level Marketing) agency to do all their process in a systematic way. Here all the activities are automated by using this system. Here the clients and the administrator will transfer their views and queries by this system.

Hence it will save a large amount of time for the clients as well as the administrator.

Today most countries have got high levels of PC penetration and the world wide Internet is growing at an enormous rate. A person can effectively use this technology to enhance his way of living.

In today’s technology driven world project that are industrially applicable play a very wide role. Technology can be malleable which makes a web based application efficiently and effective. Today a web based application plays a important role in human life.

The key to intelligent decision-making, which is an engrained process in business, is having the right information at the right point of time precipitating in higher profits and better bottom lines.

1.5 Scope of the Study

This project has been developed as per the general requirements of a MLM company. But it is going to be at most customized for the administrator and also the client. This software can also be used or modified as per the exact requirements of any particular organization. In this project JSP is used instead of applets because the client has to send the information to the server and it process it and sends the information to the client. And since this is an online project JSP is better than using applets. JSP is a server side scripting

1.6 Limitation of the study

1.7 Definition of terms