NETWORK MARKETING SYSTEM POPULARIZATION ANALYSIS IN LITHUANIA Cover Image

TINKLINĖS RINKODAROS POPULIARUMO LIETUVOJE ANALIZĖ
NETWORK MARKETING SYSTEM POPULARIZATION ANALYSIS IN LITHUANIA

Author(s): Silva Blažulionienė
Subject(s): Social Sciences
Published by: Lietuvos verslo kolegija
Keywords: Network marketing; multi-level marketing (MLM); Interactive Commerce; Interactive Distribution; direct marketing; sectional trade

Summary/Abstract: In all over the world there are many working companies, that don’t have wide market networks, and their production sells independent salespeople or consultants. Often network marke-ting is mixed with pyramid system, because both of these sys-tems have common elements. Lithuanian scientists, that are investigating shopping forms and systems, don’t exclude network marketing, like independent retailing selling forms and systems. Law publishers don’t have their own opinion about this shopping way, Lithuania’s law imprescriptibe network marketing agent’s work. Purpose of this investigation – to perform network marketing pervasion and popularization in Lithuania’s shopper’s gap analysis. Investigation object – network marketing. Investigation goal – to analyse network marketing in the world, to evaluate its agents marketing methods, set this systems popularity in Lithuania. Network marketing appeared in XX century third decade in USA where Carl Remborg established first network marketing campaign. Now in the world there are more then 3000 network marketing’s campaigns, in which professionally works about 47 million workers, and total turnover is more then 80 billion dol-lars. Lithuanian scientists, who are investigating all kind off marketing methods and forms, don’t point out networks marke-ting, as separate referral form. Those company’s, who are adjus-ting network marketing model, are stimulating their adviser to invite as many people as possible, because their earnings depend on gathered groups turnover. This kind of activity is forbidden by Lithuania’s Republics unfair commercial activities users forbidden law. Market agents are working without business certificate, don’t declare their income, doesn’t pay taxes. That way state losses thousands of Litas. Network marketing is prevalence in population gap, al-though many of them don’t know it title. Investigation showed, that most popular companies are – Avon, Oriflame, and Amway. Half of questioned people weren’t satisfied by quality of goods, but they didn’t try to return their goods. 50 percentages of ques-tioned people per month spends from 1 to 50 Litas fro the goods that are spread in this trading form, 16.50 percentages- from 51 to 100 Litas. Network marketing is satisfying costumers because it’s comfortable trading form that saves a lot of time, there are no goods on sale in stores and there is no other way to obtain them, costumers are satisfied by goods quality and reliability and because of close contact with the agent you get proper in-formation about the good.

  • Issue Year: 13/2008
  • Issue No: 2
  • Page Range: 23-27
  • Page Count: 5
  • Language: Lithuanian
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