Abstract

The purpose for this study is “to analyze the effect of digital advertising on turnover in telecommunication companies in Buea”. Its specific objectives are to analyze the effect of email marketing on turnover in telecommunication companies, to evaluate the influence of social media marketing on turnover in telecommunication companies in Buea and to assess the influence of website marketing on turnover in telecommunication companies in Buea Municipality.

A descriptive research design was adopted as an appropriate study design were a sample of 80 employees in telecommunication firms in Buea were selected using stratified sampling technique. It also combined quantitative as well as qualitative research approaches. The quantitative methods of data collection were used in this work were a self-administered questionnaire composed of closed ended, and likert scale questions was used to collect data from the respondents.

Data obtained through a structured questionnaire were analysed using analysed using descriptive statistics and the multiple regression analysis with the help of Statistical Package for Social Sciences (SPSS) software. The findings show that digital advertising has a significant impact on turnover in telecommunication firms in Buea.

Email marketing has a negative and significant effect whereas social media marketing and website marketing has a positive and significant effect on turnover in telecommunication firms in Buea. The study therefore recommends that effective digital advertising should be put in place so as to increase the turnover in telecommunication firms. The study further recommends that for every policy measure taken by telecommunication firms to improve digital advertising, email marketing, social media marketing and website marketing should be taken into consideration because failure to do so will lead to detrimental effects on turnover.

CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

Digital marketing for many years now has been embraced in the business domain and has     had a lot of impacts in the lives of many business people. Digital technologies such as computer, mobile phones and other online platforms like Facebook, Instagram, and Whatsapp, to promote their products and services.

Most businesses have changed their ways of advertising their products from traditional marketing approach to digital marketing approach. Its development during the 1990s and 2000s changed the way brands and businesses use technology for marketing. Digital platforms have had so many impacts in the everyday lives of individuals as they increasing became incorporated plans.

Banner advertising started in the year 1993 and the first web crawler was created in 1994. This was the beginning of the Search Engine Optimization (SEO). Though it may not seem deep and drawn from the past, when considered that this digital marketing tool started four years before Google was launched and, over ten years before Youtube and even before social media platforms like Facebook and Whatsapp were introduced.

The use of digital marketing campaigns has widely spread or become dominant employing combination of search engine marketing (SEM) content have made the marketing of goods and services easier in businesses especially in the area of communication between the companies and customers as these technologies are used as means that facilitate the selling of products as well as the advertising process in businesses.

Digital marketing which was a relatively new practice in the early 2000s has become increasingly smart and sophisticated in recent years. Digital advertising platforms such as social media refers to websites and applications that allow users to create and share contents or participate in social networking. Digital marketing extends to non-internets channels that provide media such as radio, television, mobile phones. The extension to non-internet channels help to differentiate digital marketing from online marketing platforms in advertising products or services in the market or to target customers.

Since the beginning of time Small and Medium Size Enterprises (SMEs) have been vital source of job and economic development worldwide according to Zheng et al. (2021). Small and medium size companies make 60 to 70 percent of employment in most countries. US for instance got her manufacturing employment produced by small and size enterprise between 1976 and 1986 70% of Sub-Saharan Africans rely on small firms for their existence.

Through digital media, consumers can access information anytime and anyplace where they want. With the presence of digital media, consumers do not just rely on what the company says about their brand but also follow what media friends, associations and peers say.

Digital marketing is a broad term that refers to various channels; mobile/wireless and digital, that is use to contribute to marketing activities aimed at achieving profit acquisition and customers’ retention (within a multi- channel by process and customer ‘life cycle’). Digital marketing, electronic marketing, and internet marketing are similar terms which refers to doing marketing online whether through websites, opt-in emails, interactive kiosk, interactive television and mobiles ( Chaffey $ Smith, 2008).

The role advertising plays vary with the product life cycle.

In the introduction stage, it may be used for the launching of a new product, make a statement as well as make the product stands out. During the growth stage, it is used to increase public awareness and cure customer ignorance about the product. The majority stage is used to fight competition and stay ahead of rivals. The saturation stage on its part is used to remind consumers of the product’s existence and presence. Lastly, the decline stage is used to recuse the product from decline in sales by gaining consumer interest.

1.2 Statement of the Problem

The importance of small and medium size enterprises [SMEs] in both the developed and developing countries cannot be overemphasized as it provides the highest employment in an economy. The sustainability of these companies in the economy can be achieved when they make sales and income.

Making consumers aware of their products and services requires marketing and the traditional methods of marketing has been seen to be beyond the reach of small and medium size companies and therefore digital marketing has been seen as an alternative for the product to reach the market to provide awareness about their goods and services. In recent times, the use of electronic media to advertise items or services on the market with the main objective of attracting customers and allowing them connect with brands through digital media has become an important digital method.

Innovative and imaginative advertising have become increasingly popular and include web-based advertising and opt-in e-mail newsletters, interactive kiosks and a lot more. Most fields of life such as education, health, agriculture, not forgetting business have all embraced digitalization. The marketing aspect of small companies are different to that of large corporations, therefore making the adoption of digital marketing to be a greater challenge for them (Lipiainen and Karjaluoto, 2013).

In this digital age, businesses in Cameroon in general and Buea in particular have incorporated digital media in their day- to-day activities in order to boost sales or achieve better turnover. Social media platforms such as Whatsapp, Facebook, Instagram, help telecommunication companies in Buea for instance, use digital strategy to interact and exchange values with customers. Ochieng (2016) through a Facebook research indicate that Kenyan entrepreneurs are some of the most active small businesses that generate revenue through advertisements on Facebook. There has been a noticeable increase in the number of online businesses which provide customers with varieties, facilitate transactions and build relationships.

Though online marketing has offered criminals an easy means to scam people by showing products which are not in their possession or owned by them, this research is focused on the methods preferred or adopted by telecommunication companies and how the use of digital marketing tools in business have contributed to positive outcomes which may include; increase sales, better supplier/customer relationships, opportunity to improve on customer reach.

This is however possible thanks to the fact that they have noticed digitalization facilitates marketing in so many ways and embraced every innovation that comes with digital advertising. This study will therefore help bring to the limelight the numerous benefits companies can achieve when they make effective use of the various digital advertising tools/channels/methods available in this modern era of technology.

Currently, a number of businesses have embraced digital marketing and it would be important to know its impact in terms of sales growth which translates to profitability. The gap in the identified research problem and previous research done, has motivated this this study. It is in this light that the researcher seeks to exploit this area and discover why choose digital advertising platforms under the topic ‘The effects of digital advertising on turnover in companies’.

Brands or advertisers have restricted channels to show their products and services and to communicate with their local or international clients by utilizing the marketing strategy through the social networking sites such as Facebook which lead customers reacting activity. Digital advertising may be one of the leading ways to create the value of telecommunication companies such as mobile phone lines and reducing the communication gap between advertisers and customers can get to the telecommunication page anytime (Weber, 2009).

Making consumers aware of their products or services requires marketing and the traditional method of telecommunication companies and therefore digital marketing has been seen as an alternative to provide awareness about their goods and services. However, the telecommunication companies need to know how to maximize their customer reach and also know how to measure the impact of their digital marketing.

1.3 Research Questions

1.3.1 Main Research Question

What is the effect of digital advertising on turnover in telecommunication companies?

1.3.2 Specific Research Question

1. To what extent does email marketing have on turnover in telecommunication companies?
2. How does social media marketing influence turnover in telecommunication companies?
3. To what extent does website marketing affect turnover in telecommunication companies?

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