ABSTRACT

The study examined multi-level marketing system and marketing performance of locally made herbal firms in Akwa Ibom State, Nigeria. The researcher adopted survey research design. The population of the study covered 120 independent distributors, management and marketing staff of Everdon Herbal Clinic; Libracin Natural Medicine Ind. Ltd and Green Care Physiotherapy Industries Limited. Taro Yamane (1967) formula was used to determine sample size of 92 from the population. The researcher adopted non-probability (purposive and convenience) sampling technique in selecting the respondents. Questionnaire was the only instrument for data collection (primary source). From the 92 copies questionnaire administered, 85 copies of questionnaire was retrieved from the respondents. A test-re-test and Cronbach Alpha were conducted to ensure validity and reliability of the instrument. The data were presented using descriptive statistics, while hypotheses were tested with a simple linear regression analysis model and Pearson moment correlation coefficient analysis model. The result revealed that, 65.9% of the respondents strongly agree that, sales show and demonstrations made by downline sales representatives increases market share of the product. The precision through the mean value decision rule that, a mean value > 3.0 was accepted while a mean < 3.0 was rejected. From the descriptive statements, the four items had a mean value of 4.40, 4.16, 4.61 and 4.45; all above 3.0, in effect, we conclude that downline sales representatives significantly affect market share of locally made herbal firms. The result shows that the mean response on positive customer-to-customer communication of ((  = 4.51), persuasive interaction among customers ((  =4.54), direct word-of-mouth promotion ((  =3.96) and customers informal discussion about the products ((  =4.49) were greater than benchmark 3.0 indicating that majority of the respondents agreed that word-of-mouth communication significantly affect sales volume of locally made herbal firms. The empirical results revealed that, downline sales representatives has significant effect on market share of locally made herbal firms. Word-of-mouth communication has significant effect on sales volume of locally made herbal firms. Independent sales contractors has significant influence on market returns of locally made herbal products; and there is positive and significant relationship between promotional message and customer purchase decision for locally made herbal product. In conclusion, multi-level marketing system has the unique ability to convert products to services and customer satisfaction. The service concept is built by the way company sales representatives delivers their product to the target market in their door step. We recommended that, proper training and workshop should be prepared to downline sales representatives before sending them to the field for sale of products. The training should be basically on communication and persuasive skill to convince prospective customer to make purchase decision.