college of education and external studies |...
TRANSCRIPT
MAKERERE UNIVERSITY
COLLEGE OF BUSINESS AND MANAGEMENT SCIENCES
THE IMPACT OF E MARKETING ON SALES VOLUME IN THE
TELECOMMUNICATION INDUSTRY
A CASE STUDY OF MTN UGANDA
BY
WANJAU LYDIA WAHITO
07/K/4152/EXT
SUPERVISED BY
MR. TIBAINGANA ANTHONY
A RESEARCH REPORT SUBMITTED IN PARTIAL FULFILLMENT
OF THE REQUIREMENTS FOR THE AWARD OF DEGREE OF
BACHELOR OF COMMERCE.
JUNE 2011
i
DECLARATION
I Wanjau Lydia Wahito declare that “e marketing and sales volume in the telecommunication
industry” is entirely my original work, except where acknowledged and that it has not been
submitted to any other University or institution of higher learning for any award.
Signature………………………………….
Wanjau Lydia Wahito
Date……………………………………….
ii
APPROVAL
This research report has been submitted for examination with my approval as the candidate’s
supervisor.
Signature………………………………..
MR. Tibaingana Anthony
(Supervisor)
Date…………………………………..
iii
DEDICATION
This dissertation is dedicated to my family for their great love and support. May the Lord
bless you abundantly.
iv
ACKNOWLEDGEMENT
My thanks go to God Almighty who through His wonderful plan allowed me to go through
this incredible journey and put some incredible people in my life. He has given me everything
I have needed and has been my rock, to Him be the glory!
I appreciate the work done by my supervisor Mr. Tibaingana Anthony. Thank you for your
guidance, advice and time you accorded to me during the completion of this report.
My heartfelt thanks go to my very big family, my sisters, brother, father and the entire
extended family. Christine Ngima, Eric Njoroge and the Akwenyu’s have been very helpful
and they feel like family. Everyone has played a very big role to see me reach the finish line.
Every prayer, advice, encouragement and simply love was everything I needed. Thank you.
Special thanks go to my friends Elsie, Lulalire, Mike, Pesh, Concepta, peter and Maggie who
sacrificed their time, resources and energy to assist me in one way or the other. They also
listened patiently to the ups and downs I went through, I really appreciate the effort.
v
TABLE OF CONTENTS
DECLARATION iAPPROVAL iiDEDICATION iiiACKNOWLEDGEMENT ivTABLE OF CONTENTS vLIST OF TABLES xLIST OF FIGURES xiLIST OF ACRONYMS xiiABSTRACT xiii
CHAPTER 1 11.0 Introduction 11.1 Background of the study 11.2 Statement of the problem 31.3 Purpose of the Study 41.4 Objectives of the study 41.5 Research questions 41.6 Scope of the study 51.6.2 Geographical scope 51.6.3 Time scope 51.7 Significance of the study5
CHAPTER 2 7LITERATURE REVIEW 72.1 E marketing 72.2 components of e marketing 82.2.1 Internet 82.2.2 Websites 92.2.3 Email marketing 102.2.4 Social networks 102.2.5 Mobile phone marketing 112.3 sales volume 122.4 Relationship between e marketing and sales volume 152.5 conclusions 15
vi
CHAPTER 3 17METHODOLOGY 17Introduction 173.1 Research design 173.2 Study population 173.3 SAMPLING DESIGN 173.3.1 Sampling techniques 173.3.2 Sample size 183.3.3 Sampling procedure 183.4 Data sources 183.4.1 Primary sources 193.4.2 Secondary sources 193.5 Data collection tools 193.5.1 Questionnaires 193.5.2 Interview guide193.6 Data collection methods 193.6.1 Survey 203.6.2 Observation 203.7 Data processing, analysis and presentation 203.7.1 Data processing 203.7.2 Data analysis 203.7.3 Data presentation 213.8 Limitations of the study 21
CHAPTER 4 22PRESENTATION, INTERPRETATION AND DISCUSSION OF FINDINGS 22Introduction 224.1 Findings on the background information 224.2 Findings on the services offered through e marketing 254.3 Customer adaptation to e marketing 294.4 Challenges associated with e marketing 324.5 Interview guide 334.5.1 E marketing services that MTN is offering 334.5.2 When MTN introduced e marketing services to Uganda 344.5.3 How MTN has been using e marketing in its operations 344.5.4 How customer adaptation/response rate to e marketing services has been. 354.5.5 Whether e marketing communications have proven to be beneficial to MTN 35
vii
4.5.6 Whether introduction of e marketing services has led to an increase in sales volume 354.5.7 Challenges experienced in offering e marketing services to consumers 364.5.9 How e marketing works with forms of marketing and communication that MTN uses 364.6 Whether there is a relationship between e marketing and sales volume 364.7 findings on the relationship between e marketing and sales volume using Pearson correlation 37
CHAPTER 5 39SUMMARY, CONCLUSION AND RECOMMENDATIONS 39INTRODUCTION 395.1 Summary of major findings 395.1.1 E marketing services 395.1.2 Sales volume 405.1.3 Relationship between e marketing and sales volume 405.2 Conclusion 405.3 Recommendations 405.4 Areas for further study 41
REFERENCES 43
APPENDICES………………………………………………………………………………44APPENDIX I: QUESTIONNARE FOR MTN CUSTOMERS 44Appendix II INTERVIEW GUIDE FOR MTN STAFF 48
viii
LIST OF TABLES
Table 1 Showing gender of respondents..................................................................................23
Table 2 Showing education level of respondents.....................................................................23
Table 3 Showing age of the respondents..................................................................................24
Table 4 Showing marital status of the respondents..................................................................24
Table 5 Showing whether respondents encounter e marketing services in their day to day
interactions with MTN.............................................................................................................26
Table 6 Showing how often respondents encounter/use e marketing service..........................27
Table 7 Showing whether e marketing services offered by MTN influence the number of
times respondents use MTN services.......................................................................................29
Table 8 showing media respondents use to access e marketing services.................................29
Table 9 Showing whether respondents would like to access e marketing services from other
companies.................................................................................................................................31
Table 10 Showing whether e marketing services offered by MTN has made it easier to give
feedback to MTN in regard to complaints or expression of satisfaction.................................31
Table 11 Showing whether it is costly to encounter/access e marketing services...................32
Table 12 Showing whether respondents experience any difficulties in accessing e marketing
services.....................................................................................................................................32
Table 13 Showing whether some e marketing communications from MTN have been a
nuisance/bothersome................................................................................................................33
ix
LIST OF FIGURES
Figure 1 Showing the duration respondents have been MTN customers.................................24
Figure 2 Showing e marketing services respondents are familiar with...................................25
Figure 3Showing e marketing services respondents encounter in their day to day interactions
with MTN.................................................................................................................................27
Figure 4 Showing whether the current e marketing services offered by MTN make it
competitive...............................................................................................................................28
Figure 5 Showing how respondents use e marketing services offered....................................30
x
LIST OF ACRONYMS
SMS - short message service
E marketing- Electronic marketing
MTN- mobile telephone network
Email- electronic mail
ECRM- electronic customer relationship management
E business- electronic business
RSS- really simple syndication
PDA- personal digital assistant
Pc- personal computer
TV- television
3G- third generation
xi
ABSTRACT
The purpose of the study was to establish the impact of e marketing on sales volume basing
on the objectives which included: To establish the relationship between e-marketing and sales
volume in MTN Uganda, to establish the different services offered through e-marketing in
MTN Uganda and to assess how customers are adapting to e-marketing and the challenges
associated with e-marketing
The study was conducted in MTN Uganda located on MTN towers in Kampala district and
focused on how MTN uses e marketing in its operations and how that impacts on its sales
volume.
The research design was causal and both qualitative and quantitative data were collected. The
sampling techniques were stratified sampling and simple random sampling.
Findings revealed that majority of MTN customers encounter and regularly use e marketing
services. It was also found out that e marketing services offered by MTN make it
competitive. The findings also revealed that there is a major information gap between MTN
and its customers who have not yet fully utilized e marketing platforms to interact with the
company. Nevertheless, there is a strong relationship between e marketing and sales volume
at Pearson correlation of 0.98. MTN should then ensure they fully exploit e marketing
services available to them to successfully reach and retain their customers since customers
seem to be captivated by e marketing platforms but most especially mobile phone marketing
and social network marketing. MTN should also work to reduce the information gap between
themselves and the customers
xii
CHAPTER 1
1.0 Introduction
This chapter presents the background of the study, statement of the problem, purpose of the
study, objectives of the study, research questions, scope of the study and the significance of
the study.
1.1 Background of the study
E marketing is also known as internet marketing, digital marketing, online marketing or web
marketing and it is the marketing of products and services over the internet. Internet
marketing is considered to be broad in scope because it not only refers to marketing on the
internet, but also includes marketing done via e mail and wireless media. Digital customer
data and electronic customer relationship management (ECRM) systems are also often
grouped together under internet marketing. www.wikipedia.org/ may 2008/internet
marketing.
E marketing is a subset of e business that utilizes electronic medium to perform marketing
activities and achieve desired marketing objectives for an organization. Internet marketing,
interactive marketing and mobile marketing for example, are all forms of e marketing. Dejan
2010.
To further explain e marketing, it is important to define and understand its components.
Internet marketing as described above is the marketing of products and services over the
internet. On the other hand, interactive marketing is “the ability to address an individual and
the ability to gather and remember the response of that individual” leading to “the ability to
address the individual once more in a way that takes into account his or her unique response”
1
Deighton 1996. It is facilitated by information technology for example, Amazon.com.
Mobile phone marketing refers to direct marketing to consumers via cell phones.
Technologies such as sms, mms, Bluetooth and infrared are used to distribute commercial
content to mobile phones. The pitch by Richard Mukoma, Daily Nation July 13 2010.
This commercial content includes advertising a new product, information about a sale,
information about products and services, sales promotion and other commercial activities. It
is also important to note that mobile phones can also access the internet making them very
versatile mediums
The e marketing platform gives companies an opportunity to reach a large number of people,
for example, in Eat Africa; there are 50 million mobile phone subscribers and at least 15
million web users. Business Daily, Tuesday July 27th 2010. It was of crucial importance to
investigate whether the platform could be productive and whether it could yield desirable
results, for instance, increased revenue streams in a market like Uganda.
Sales volume is defined as the quantity of total sales achieved in units or dollars. Sales
volume explains important product development concepts since it provides the stakeholders
with the figures on which analysis can be based to project further development. Cavusgil
1996. Therefore, the study was investigating whether e marketing promotes the quantity of
goods and services sold by MTN. For example, now that consumers can purchase airtime
directly from their mobile money accounts, has this led to an increase in the quantity of
airtime purchased by the consumers? Another important question that was considered is
whether e marketing has led to an increase in the customer base. Have the MTN website and
the MTN facebook page led to an increase in the number of customers who have decided to
subscribe to MTN or use MTN products?
2
The case study was MTN which is a telecommunication company in Uganda. It offers a wide
range of communication solutions like calling services, sms and internet services. It also
offers services like mobile banking and money transfer services through mobile money. MTN
is one of the pioneers of e marketing in the country and it has managed to harness it in
different forms, for example, MTN has a fully functional website, a facebook page with 950
friends, you can also follow them on twitter through twitter.com/MTNuganda. MTN being a
telecommunications company has also harnessed e-marketing through the mobile phone
platform.MTN uses sms and its customer service center to communicate directly with its
customers, for instance, MTN regularly sends its customers, sms updates of its current
promotional activities. One of its current promotional activities is that consumers subscribed
to MTN can access facebook on their mobile phones for free.
That being the case, the study was seeking to investigate whether the investment in e-
marketing is a worthwhile venture and what companies can achieve by investing in it. The
study also critically examined how receptive the Ugandan market is to such a platform.
1.2 Statement of the problem
E-marketing seems to be a platform were companies can access large numbers of users, for
instance, East Africa has 50 million mobile phone subscribers and at least 15 million web
users. Business Daily, Tuesday July 27th 2010. By the end of 2008, the mobile phone
platform in Uganda had at least 8.7 million people ICT statistics news log, July 15 th 2010.Yet
most companies in Uganda do not see e-marketing as a viable option or a profitable venture
to pursue. Could it be that a lot of Ugandan companies are afraid to test the waters yet there is
real potential in e-marketing? E-marketing may also be considerably cheaper than other
traditional media especially when examining the ratio of cost to reach of the target audience.
3
Hence this study aimed at establishing the relationship between e-marketing and sales
volume.
1.3 Purpose of the Study
The purpose of the study was to understand e-marketing and its impact on the sales volume.
E-marketing offers many platforms to companies that seek to reach or market themselves to
more customers. This study therefore aimed at unravelling these platforms and clarifies
whether they can be beneficial to local companies. This study will also investigate the
different services offered through e-marketing and how receptive customers are to the
platforms offered by e-marketing, that is, the internet, social sites and mobile phone
marketing.
1.4 Objectives of the study
1. To establish the relationship between e-marketing and sales volume in MTN Uganda.
2. To establish the different services offered through e-marketing in MTN Uganda.
3. To assess how customers are adapting to e-marketing and the challenges associated with e-
marketing
1.5 Research questions
1. What is the relationship between-marketing and sales volume?
2. What services does MTN Uganda offer through e-marketing?
3. How are customers adapting to e-marketing and what are the challenges associated with e-
marketing.
4
1.6 Scope of the study
1.6.1 Subject scope
The study covered e-marketing as an independent variable and sales volume as a dependent
variable in the telecommunication industry using MTN Uganda as a case study.
1.6.2 Geographical scope
The study was conducted in Kampala Uganda with reference to MTN Uganda located in
MTN towers.
1.6.3 Time scope
The study was done in a period of 5 months between January and June 2011 and concentrated
on literature published between 1995-2010.
1.7 Significance of the study
This research is important to various stakeholders. Companies can benefit from this research
by understanding what e-marketing is and how it can have a positive impact on their brands
and their companies as a whole through increased revenue and publicity.
Other scholars can also benefit from the research as it can be used as a future reference point
seeing that this is now an area of great interest, it can also pave the way for scholars to
discuss and study this issue more.
The public can also benefit from this study as it adds to the body of existing knowledge and
the results from this study will reflect their needs. This study is also beneficial to me as a
student of marketing because if gives me experience with the corporate world and helps me
to understand the market.
5
CHAPTER 2
LITERATURE REVIEW
2.1 E marketing
It is also known as internet marketing, digital marketing, online marketing or web marketing
and it is the marketing of products and services over the internet. Internet marketing is
considered to be broad in scope because it not only refers to marketing on the internet, but
also includes marketing done via e mail and wireless media. Digital customer data and
electronic customer relationship management (ECRM) systems are also often grouped
together under internet marketing. www.wikipedia.org/may 2008/internet marketing.
Lancaster and Withey 2006, the growth of electronic marketing such as the internet, email,
mobile phones and so on has allowed information to become more rapid and global. The
explosion in wireless technologies has led to a massive increase in mobile communication
and as a result the growth of mobile marketing and advertising. The increased use of the
internet and particularly websites as a promotional tool for individuals and companies has
offered many marketers a further effective tool resulting in more control and evaluation of the
communications.
Hughes and Fill 2007, the pace of technological change is facilitating an increasing variety
of communication tools which can be used for marketing purposes. This includes so called
‘new media’ channels such as the internet, email and mobile phones and the changes in the
use of more ‘traditional’ media forms. The benefits of the internet, extranet and intranet
applications need to be fully understood and their strategic role in the way in which
organizations can reduce costs, improve communication effectiveness and provide value
added services to consumers, employees and business partners is highly significant.
6
2.2 components of e marketing
2.2.1 Internet
Curtis 2007, the internet is a robust communication system originally devised for military
applications. Once people have subscribed to broad band, it provides access to almost
unlimited information and international communication. Access in this context has zero
marginal cost to the user. As the internet extends progressively to mobile phones and hand
held devices (PDA’s-personal digital assistants), the opportunity and necessity to make use of
online and web related marketing methods becomes increasingly irresistible. The internet and
email provide unprecedented opportunity for radically new methods of promotion and
advertising, such as viral marketing and RSS ( Really Simple Syndication) of educational or
informative articles, newsgroups, forums, affiliations and partnering arrangements, email
newsletters and campaigns and many other new ideas which appear more quickly than most
of us can absorb. Modern and emerging digital and web related advertising marketing
methods offer audience ‘reach’, precision of targeting, level of fine tuning and control,
measurement and analysis and cost effectiveness that conventional advertising media simply
cannot match. Conventional printed sales and marketing materials of all types (from
newspapers and magazines, to brochures and business cards) are becoming obsolete as
customers look to the internet (via phones, pc’s, laptops, PDA’s and in the future TV too) for
quick up-to- the-minute information about products, services and suppliers of all sorts.
Hill and O Sullivan 2004, the sheer amount of information on the internet is overwhelming.
There’s also enormous viability in its usefulness and accuracy, given the absence of the
quality control mechanisms associated with traditional publishing. This has led to the growth
of what are known as portals-literally gateways into the internet which offers users a reliable
guide to what is on offer and act as an area of work or leisure or around a search engine like
7
Yahoo or Lycos, they offer marketers a ready built community of potential customers who
might have needs and wants in common. Portals therefore use their position as gatekeepers to
take advantage of the high traffic through their home pages and search pages and sell
advertising and sponsorship in much the same way as newspapers or magazines do.
Beamish and Ashford 2006, communications based drivers include technological advances
such as internet, databases, new segmentation techniques, message effectiveness, more
consistent brand images and the need to build reputations to provide clear identities. MTN
has harnessed the power of the internet; this can be seen from the website they have and the
social sites they are engaged in, that is, twitter and facebook. MTN also offers internet
services to consumers through its 3G modem and for corporate clients, MTN business
solutions.
The internet is a vast network that makes use of various tools, these include, websites, email
and social networks. It is important to review each of them and consider how useful they are
to marketers in an effort to drive up sales.
2.2.2 Websites
Kotler and Armstrong 2010, websites vary greatly in purpose and content. The most basic
type is a corporate (or brand) website. These sites are designed to build customer goodwill,
collect company feedback and supplement other sales channels rather than to sell the
company’s products directly. They typically offer a variety of information and other features
in an effort to answer customer questions and build relationships with them. Other companies
create a marketing website. These sites engage consumers in an interaction that will move
them closer to a direct purchase or other marketing outcome.
8
Hughes and Fill 2000, at the core of the company’s internet activity is their website.
Websites are intended to be visited by those browsing the internet and once visited, the
opportunity to interact and form a dialogue becomes more realistic. The commercial
attractiveness of a website is based around the opportunity to display product and company
information and often in the form of catalogues, as a corporate identity cue and for internal
communications, to generate leads, to provide onscreen order forms and customer support at
both pre and post purchase points and to collect customer and prospect information for use
within the database or as a feedback link for measurement and evaluative purposes.
Lancaster and Withey 2006, a well designed and operated website allows for very effective
communication with customers. If customers can easily find the website and find access on it
and if they find that these visits are rewarding in a sense of offering more than simply
information, the customer is likely to be favorably impressed with regard to the company and
its offering. For instance, MTN has a corporate website that communicates the company’s
products and services and also informs customers on how to use certain services.
2.2.3 Email marketing
Monarief and Shipp 1997, email has become an even more flexible method of
communicating. Email allows the person to stay in contact with the customer base through an
online computer network interface such as the internet. It also encourages more
communication and information sharing among sales people and their managers, suppliers
and peers who in turn help build more team camaraderie.
2.2.4 Social networks
Kotler and Armstrong 2010, over the past few years, a new type of social interaction has
exploded onto the scene- online social networking. Online social networks are online
9
communities where people socialize or exchange information and opinions. Social
networking media range from blogs to social networking websites such as facebook, you tube
and twitter. Marketers are working to harness the power of these new social networks to
promote their products and build customer relationships. Instead of throwing more one way
commercials at advertisement weary consumers, they hope to use social networks to interact
with consumers and become part of their conversation and lives. For instance, MTN has a
facebook fan page with 950 friends who interact freely with the network and other friends.
Kotler and Armstrong also add that marketers must be careful when tapping into online social
networks. Results are difficult to measure and control. Ultimately, the users control the
content so online social network marketing attempts can easily backfire.
2.2.5 Mobile phone marketing
The pitch, Richard Mukoma Daily Nation July 13th 2010, mobile phone marketing refers
to direct marketing to consumers via cell phones. Technologies such as sms, mms, Bluetooth
and infrared are used to distribute commercial content to mobile phones. Mukoma suggested
that with the growing popularity of mobile phones, mobile phone marketing has the potential
to be the fastest growing and most targetable method of brand marketing.
Dushinski 2010, points out that mobile technology not only lets marketers reach customers
where they are, it allows them to engage mobile users by targeting their immediate and
specific needs. He also suggested that it is giving users what they want when they want it and
that is the unique value proposition of mobile phone marketing and businesses, agents and
non profit organizations of all types can have successful campaigns without breaking the
bank.
10
Mobile marketer 2010, brands and marketers can use the mobile channel to increase their
brand affinity, recognition and customer loyalty. The attraction to mobile is the channel’s
ability to acquire new customers, increase customer loyalty and generate brand awareness
and affinity, the ability to monetize content and the fact that it lets marketers provide
convenience to consumers.
Fill 2007, mobile phones provide another logical platform for marketers to channel targeted
text (sms) messages to millions of users. Additionally, video technology is beginning to allow
TV programme transmission through mobile phones creating other advertisement
opportunities. For example, MTN sends its users information about its current promotional
activities thus giving them up to date information that motivates consumers to purchase more
of the company’s services like MTN zone.
Greco 2007, there are unique set of limitations that mobile branding presents. Mobile users
are besieged by constant distractions, noisy environments and low bandwidth. This causes
them to move through the day in a state of discontinuous interaction. So although design is
king in the mobile branding world, it must be used efficiently and intelligently. Content has
to be brilliant, easy and fast. Yet from these substantial limitations, new creative
opportunities continue to emerge and forward thinking brands are beginning to reap the
benefits. The mobile phone laces marketers’ right inside persistent computing. They can
catch people everywhere on the internet, in train stations, on the phones. They can
communicate with consumers on every possible level.
2.3 sales volume
Sales volume is defined as the quantity of total sales achieved in units or dollars. Sales
volume explains important product development concepts since it provides the stakeholders
with the figures on which analysis can be based to project further development. Cavusgil
11
1996. Or it refers to the quantity or number of goods sold or services rendered in the normal
operations of a firm in a specified rendered in the normal operations of a firm in a specified
period, Businessdictionary.com/sales volume.
Jobber and Lancaster 2000, state that the selling process is complicated by the fact that
there are often many alternative ways in which each objective can be achieved, for example,
an increase in revenue of 10% can be achieved by increasing prices, increasing sales volume
at the company level (market share) or increasing industry sales. This shows how an increase
in sales volume at the end of the day is expected to increase the revenue flow into the
company.
Jobber 1997, sees sales volume as a type of sales quota and states its advantages as easy to
calculate and administer and simple to understand. The disadvantages are that emphasis is
only on sales volume but not on profits, it leads to imbalances in selling activity (for example,
stress volume sales at the expense of non selling activities).
Nobilis 2010, sales volume is the core interest of every organization that is based on sales
and profit. When the volume goes up, everything else is manageable (margin, profit,
numerical distribution) but when the volume goes down it is difficult to manage the business
parameters. Sales do not go up or down just like that, the company manages and directs its
sales volume through the portfolio and channels. There different ways that the company can
use to influence volume increase.
Hatton and Adroyd 1995, discuss the growth stage in the product lifecycle and how sales
volume increases at this stage. The conditions of market change such as high prices and
profits attract new firms and resources to the field. Supply and competition increase, making
demand more price elastic. A competitive feature of this stage is the emphasis on branding,
used to differentiate the products and resist the tendency towards greater price sensitivity.
12
This increased promotional activity in the industry also changes the conditions of demand
and so results in a general increase in generic product demand as new consumers increase
sales volume, costs may fall with economies of scale and prices do fall. The scholars also
discuss more effective ways of increasing sales volume. A marketer wishing to sell more of a
price inelastic product shouldn’t reduce prices to increase sales. Although more will be
bought at lower prices, it will not be much more and total revenue will fall as sales increase.
For this category of product, the marketers would have to use the non price variables of the
marketing mix and develop strategies to increase sales by means of promotions, advertising
or increased distribution.
Hill and O Sullivan 2004, providing a new product satisfies customer needs, it will be
fuelled by repeat purchases and word of mouth publicity and sales will start to climb rapidly
as a large number of new customers are attracted to the product for the first time. Profits start
to be made as sales revenue increase faster than costs. Confident that the product is likely to
be a success, competitors start to enter the market, copying much of the pioneer’s basic idea
but perhaps introducing new product features too. As the total size of the market is growing,
the new competitors can increase their sales volume by attracting new customers than
undercutting on price so they too are likely to be able to trade profitably. Only when the
marketer starts to move toward maturity and fewer new customers are buying the product for
the first time is price competition likely to increase, undermining levels of profitability.
Smith 1995, good sales forecasting provides targets and yardsticks for measurement. Sales
forecasts can be drawn up by sales representatives for each month and eventually put together
to form an overall sales representative forecast. Sales volume as a percentage of sales
potential is a more sophisticated forecasting model which takes into account a host of factors
including prices, competitors and the state of the economy.
13
2.4 Relationship between e marketing and sales volume
www.wikipedia.com/sales/2008, marketing and sales differ greatly, but have the same goal.
Marketing improves the selling environment and plays a very important role in sales. If the
marketing department generates a list of potential customers, that can benefit sales. A
marketing department in an organization has the goal of increasing the number of interactions
between potential customers and the organization. Achieving this goal may involve the sales
team using promotional techniques such as advertising, sales promotion, publicity and public
relations, creating new sales channels or creating new products (new product development),
among other things. It can also include bringing the potential customer to visit the
organization’s website (s) for more information or to contact the organization for more
information or to interact with the organization via social media such as twitter, facebook and
blogs. E marketing in this case is a tool of marketing and serves to drive up sales volume.
Beamish and Ashford 2006, internet can be used to support sales achieved through
increasing awareness of brands and products, supporting buying decisions and enabling
online purchase. This facilitates ease of purchase and acquisition of information on products
and services. E marketing also opens up doors for marketers to increase sales volume through
using a direct channel that is effective.
2.5 conclusions
E marketing is a tool that seems to provide new and exciting opportunities to marketers.
Marketers can easily reach consumers, communicate with them and immediately get their
feedback at low cost compared to other media. The markets seem to be open to technology
and if harnessed well, e marketing can reap significant benefits to marketers. Before
venturing to use e marketing tools, marketers must scrutinize each local market to find out
what tool is most important for that particular market and customize this accruing to the
14
market’s needs. E marketing may also not be effective for all markets so marketers should
consider this and take appropriate action. When using e marketing tools, it’s important to take
into consideration the rights of consumers and use these tools in a way that does not offend or
turn them off.
15
CHAPTER 3
METHODOLOGY
Introduction
This chapter describes the research design, study population, the sampling design, sources of
data and the various data collection methods and analysis that will be used in the research.
The limitations of the study were also presented.
3.1 Research design
The type of research design that was used for the study was causal research design where it
was necessary to establish a definite cause and effect relationship. For this particular study,
the purpose was to understand how e marketing affects sales volume.
3.2 Study population
The survey population was MTN staff and customers of MTN mobile and MTN internet
services.
3.3 SAMPLING DESIGN
3.3.1 Sampling techniques
The sampling technique was stratified sampling whereby the public was divided into different
age groups, that is, 10-20, 21-30, 31-40, 41-50, 51-60 and above 60; this gave a more specific
picture of which age groups are most impacted by e marketing and their perception of it.
Then simple random sampling was used to get the specific members to be interviewed from
each stratum until the required population was achieved.
16
Purposive sampling was used to get population members from MTN who gave information
concerning sales trends and how they have been affected by e marketing.
3.3.2 Sample size
The sample size comprised MTN customers and some MTN staff from different departments
in the company. The krejcie and Morgan formula for estimating the sample size was used to
determine the needed sample size that was representative enough. The total population for the
study was 40members, with 39 of the members being picked from the general public to get a
general view with as little bias as possible. The 1 member was picked from staff of MTN
Uganda.
3.3.3 Sampling procedure
First, the required population was established, that is MTN customers and staff then the
sample size was determined using the Krejcie and Morgan formula. Once the sample size was
determined, stratified sampling was used to classify the population in different strata of age
then simple random sampling was used to get the needed respondents. Purposive sampling
was used to select MTN staff. Eventually, questionnaires were administered and an interview
was conducted to get the desired data from the selected respondents.
3.4 Data sources
There are two sources of data and they include primary sources and secondary sources. The
primary sources include data that has never existed while secondary sources refer to data
already in existence.
17
3.4.1 Primary sources
Since not all information was available through secondary sources, it was necessary to
venture into primary data sources to get the opinions of selected members of the population.
Primary data was obtained through personal interviews and administered questionnaires.
3.4.2 Secondary sources
Secondary data was obtained from 2 areas, the first was the internal source which was within
the organization where several documents were used to reveal needed information, these
included; sales reports, marketing research reports and revenue reports. The second source
was the external source which included information acquired from books, newspapers and the
internet.
3.5 Data collection tools
Data collection tools that were used are presented below.
3.5.1 Questionnaires
A questionnaire refers to a set of questions arranged logically and systematically to achieve
specific research objectives; some questions were open ended while others were closed
ended.
3.5.2 Interview guide
An interview guide was used to collect data directly from the respondents whereby the
researcher asked the respondent different questions and recorded the respondent’s answers.
3.6 Data collection methods
The appropriate data collection methods were the interview method and observation method.
18
3.6.1 Survey
This refers to collecting information from people through a face to face meeting where the
respondents answered different questions and it was facilitated by an interview guide.
3.6.2 Observation
It refers to collecting information by viewing or observing the respondents, their actions and
situations. In this case, the researcher was observing respondents to collect information on
their reaction to certain e marketing services, for instance, when they get SMS from MTN
regarding certain promotions going on, how do they react? It may be anger for being sent an
unwarranted SMS or joy at being able to save some money through the promotion.
3.7 Data processing, analysis and presentation
After collecting data, it was processed, analyzed and presented to come up with the necessary
results
3.7.1 Data processing
Data processing involves editing, coding, classification and tabulation. After data collection,
the data was edited using Ms. Word to eliminate errors. Then it was coded to reduce the data
into fewer categories this was done using numbers and other symbols. After, classification of
the data was done; this is the arrangement of the data in groups or classes on the basis of
common characteristics. Tabulation means that the data was transferred to tables to make
interpretation of data easy.
3.7.2 Data analysis
The data was then analyzed using excel and Pearson correlation coefficient was used to get
the relationship between e marketing and sales volume.
19
3.7.3 Data presentation
The analyzed data was then presented through tables and pie charts.
3.8 Limitations of the study
One of the biggest challenges the researcher went through is getting accurate information,
some of the respondents gave false information and getting information from the company
was very difficult.
Another limitation the respondent encountered is that the company under study was not
willing to give out some information; in addition, getting the information on time was a
problem this was a big obstacle the researcher.
20
CHAPTER 4
PRESENTATION, INTERPRETATION AND DISCUSSION OF FINDINGS
Introduction
In this chapter, the findings of the study are analyzed and presented according to the research
questions and study variables. The relationship between e marketing and sales volume is also
established. The purpose of the study was to establish the impact of e marketing on sales
volume in the telecommunication industry. The analysis aimed at satisfying the research
objectives which were:
1. To establish the relationship between e-marketing and sales volume in MTN Uganda.
2. To establish the different services offered through e-marketing in MTN Uganda.
3. To assess how customers are adapting to e-marketing and the challenges associated with e-
marketing
4.1 Findings on the background information
This section presents the background information of respondents who participated in the
research study. The information contained in this section Includes the following categories;
gender, education background, occupation, age of the respondents, marital status and the
duration the respondents have been MTN customers.
21
Table 1: Showing gender of respondents
Gender Frequency % Response
Female 18 46.2
Male 21 53.8
Total 39 100
Source: Primary data
Table 1 above shows the total number of MTN customers interviewed was 39. Majority of
the respondents were male, constituting 53.8% of total respondents while female respondents
were 46.2% of total respondents. This indicates that there are more male customers than
female customers on MTN.
Table 2: Showing education level of respondents
Education level Frequency % Response
Primary 1 2.6
Secondary 5 12.8
Diploma 4 10.3
Degree 29 74.4
Total 39 100
Source: primary data
Table 2 shows that 2.6% of respondents were of primary level, 12.8% were of secondary
level, 10.3% were of diploma level and 74.4% who were the majority were of degree level.
This indicates majority of MTN customers are educated.
22
Table 3: Showing age of the respondents
Age Frequency % Response
10-20 0 0
21-30 30 76.9
31-40 8 20.5
41-50 1 2.6
Above 60 0 0
Total 39 100
Source: primary data
There were no respondents in the 10-20 age bracket, respondents in the 21-30 age bracket
constituted 76.9% of the total respondents and were the majority. Respondents in the 31-40
age bracket were 20.5% and respondents in the 41-50 age bracket were 2.6% of the total
population. There were no respondents in the above 60 category. This could indicate that a
number of the respondents sampled were young but it could also indicate that a majority of
MTN customers are part of the younger generation.
Table 4: Showing marital status of the respondents
Marital status Frequency % Response
Married 5 12.8
Single 34 87.2
Total 39 100
Source: primary data
12.8% of the respondents were married while 87.2% were single. This shows most of MTN
customers are young and not committed in marriage.
23
Figure 1: Showing the duration respondents have been MTN customers
Source: primary data
From figure 1, it’s indicated that 56% of the respondents have been MTN customers between
0- 5years. 39% of total respondents have been MTN customers for 6-10 years and 5% of
respondents have been customers for over 10years. This shows that a majority of MTN
customers joined the network in the past 5years.
4.2 Findings on the services offered through e marketing
Figure 2: Showing e marketing services respondents are familiar with.
Source: primary data
24
The e marketing service that most respondents are familiar with is mobile phone marketing at
37% then social network marketing at 29% followed by websites at 19% and lastly e mail
marketing at 15%. This indicates a majority of the respondents are familiar with mobile
phone marketing mainly because most of the respondents had mobile phones so they are easy
to access and due to their portability nature. Social network marketing is also quite popular
maybe because most of the respondents are young and they tend to access social network
sites quite often. Quite a number of respondents were familiar with marketing through
websites but this platform was trailing behind social network marketing meaning that the
respondents do not access company websites as such or company websites have no impact on
the respondents. A few of the respondents were familiar with email marketing meaning this
platform has not been fully exploited.
Table 5: Showing whether respondents encounter e marketing services in their day to day interactions with MTN
Answer Frequency % Response
Yes 34 87.2
No 5 12.8
Total 39 100
Source: primary data
Table 5 above shows 87.2% of the respondents agree that they encounter e marketing
services in their day to day interactions with MTN. 12.8% of respondents do not encounter e
marketing services in their day to day interactions with MTN. This shows that a majority of
MTN customers know e marketing services and access them on a day to day basis. It also
shows MTN regularly uses e marketing services to market to its customers.
25
Figure 3: Showing e marketing services respondents encounter in their day to day interactions with MTN
Source: primary data
From figure 3 above, it’s indicated that 47% of the respondents encounter e marketing
services through the mobile phone platform. Social network marketing is the next platform
that is most popular with MTN customers at 31%. The MTN website is next at 12% and
lastly e mail marketing at 10%. This therefore indicates that mobile phone marketing and
social network marketing are the most effective e marketing platforms that can be used by
MTN in marketing to its customers.
Table 6: Showing how often respondents encounter/use e marketing service
Answer Frequency % response
Always 18 46.2
Sometimes 19 48.7
Never 1 2.6
Not sure 1 2.6
Total 39 100
Source: primary data
Table 6 shows 46.2% of respondents always encounter/use e marketing services. 48.7% of
respondents sometimes encounter e marketing services. Only 2.6% of respondents never
26
encounter e marketing services and 2.6% are not sure. This therefore means a big percentage
of MTN customers regularly encounter or use e marketing services.
Figure 4: Showing whether the current e marketing services offered by MTN make it competitive
Source: primary data
From figure 4 above, it’s indicated that 87% of respondents agree that the current e marketing
services make MTN competitive, 10% disagreed and do not believe the current e marketing
services offered by MTN make it competitive. Only 3% of total respondents agreed that e
marketing services offered by MTN make it competitive but only to a small extent. This
shows that a majority of respondents strongly believe that the e marketing services offered by
MTN make it competitive. This could also indicate that MTN offers better e marketing
services than other companies.
27
4.3 Customer adaptation to e marketing
Table 7: Showing whether e marketing services offered by MTN influence the number of times respondents use MTN services.
Answer Frequency % Response
Yes 30 76.9
No 9 23.1
Total 39 100
Source: primary data
From table 7 above, it’s indicated that 23.1% of the respondent disagree that accessing e
marketing services influences the number of times they use MTN services. They stated that
they only use e marketing services when they need to. Most of the respondents who agreed
and are in the yes category attributed this to the convenience they get from e marketing
services like faster and cheaper access to internet through MTN internet services, for
example, when they access MTN mobile internet its cheap and accessing facebook through
MTN is free. Others talked about access to information being the major reason why they
access MTN e marketing services like information on current MTN promotions and MTN
product prices. Others spoke of how e marketing services made interaction easier. All these
factors have contributed to the respondents accessing MTN services more and more. This
indicates that the e marketing services offered by MTN definitely influence the number of
times customers access MTN services.
Table 8: showing media respondents use to access e marketing services
Media Frequency % Response
Computer 1 2.6
Mobile phone 21 53.8
Both 17 43.6
28
Other 0 0
Total 39 100
Source: primary data
Table 8 shows that the majority of respondents use or encounter e marketing services through
their phones; they are 53.8% of the total population. A fairly large number of respondents use
both computers and mobile phones to access/encounter e marketing services; they make up
43.6% of the population. Only 2.6% access/encounter e marketing services through
computers only. There was no other media that respondents were familiar with that they
could use to access these services. This could indicate that mobile phones are the most
important media to reach MTN customers. This could be because they are cheap and a lot of
people can access them.
Figure 5: Showing how respondents use e marketing services offered
Source: primary data
Figure 5 above shows that 44% of the respondents use e marketing services to be able to
access information. At the same time, 37% of the respondents use e marketing for interaction.
17% of the respondents also use e marketing services in their work/education. 2% of
respondents suggested they use it in business. This shows that the bulk of MTN customers
use e marketing services for accessing information and interaction.
29
Table 9: Showing whether respondents would like to access e marketing services from other companies
Answer Number of respondents % Responses
Yes 35
89.7
89.7
No 4 10.3
total 39 100
Source: primary data
From table 10 above, 89.7% of the respondents wanted to access e marketing services from
other companies because they believed that competition would improve e marketing services
provided. They also wanted access to a wider variety of e marketing services and the ability
to choose which is most convenient for them. They also believe more e marketing services
would mean they could have access to more information while others would want to see more
e marketing services from other companies as a matter of convenience. Respondents who
would not like to see e marketing services from other companies were 10.3% of total
respondents and they believe that the current e marketing services offered by MTN are
sufficient for them.
Table 10: Showing whether e marketing services offered by MTN has made it easier to give feedback to MTN in regard to complaints or expression of satisfaction
Feedback Frequency % Responses
Yes 21 53.8
No 18 46.2
Total 39 100
Source: primary source
Most of the respondents believe that e marketing services have made feedback to MTN
cheaper. They are 53.8% of the total respondents.46.2% believe that e marketing services
have not made feedback to MTN easier. Respondents who agreed that it has become easier to
give feedback to MTN believe that MTN services have become faster and easier to access
30
and the responses from MTN are faster. Some respondents believe that the different e
marketing platforms offer them a wider range of ways to communicate or give feedback, for
instance, through calling, sending email or leaving messages on the MTN facebook page.
Most respondents who do not believe that the e marketing services have facilitated easier
feedback explained that MTN lines were always congested and thus communication between
MTN and the respondents is 1 way. Some also believe MTN does not respond to customers
on time.
4.4 Challenges associated with e marketing
Table 11: Showing whether it is costly to encounter/access e marketing services
Costly Frequency % Responses
Yes 20 51.3
No 19 48.7
Total 39 100
Source: primary data
Table 12 above shows 51.3% of the respondents agree that accessing e marketing information
is costly and 48.7% believe that accessing e marketing services is not costly. This indicates
that a lot of MTN customers may not be able to access e marketing services though quite a
large number also think it is not costly thus indicating it is easy for them to access e
marketing services.
Table 12: Showing whether respondents experience any difficulties in accessing e marketing services
Difficulty Frequency % Response
Yes 19 48.7
No 20 51.3
Total 39 100
Source: primary data
31
Majority of the respondents agree that it is not difficult to access e marketing services; they
are 51.3% of total respondents. Quite a big number, 48.7% to be exact disagree and they
believe that it is difficult to access e marketing services, mostly because of poor network
services, slow internet connection and congestion of MTN lines.
Table 13: Showing whether some e marketing communications from MTN have been a nuisance/bothersome
Nuisance/bothersome Frequency % response
Yes 16 41
No 23 59
Total 39 100
Source: primary data
Most respondents do not agree that most communications from MTN have been bothersome
to them, that is, 59% of total respondent though a significant number of respondents, that is,
41% agree that e marketing communication from MTN have been bothersome. Most state
that sometimes they keep getting messages they do not need and at the same time are charged
for them.
4.5 Interview guide
This section presents information on e marketing and its impact on sales volume. This
information is from the company’s point of view and it gives a more clear view of how e
marketing has affected MTN and its sales volume.
4.5.1 E marketing services that MTN is offering
The respondent clarified the e marketing services that MTN is offering they are; use of
websites, MTN has a corporate website where it communicates its products and services.
Social network marketing is another platform that MTN has harnessed; MTN has a facebook
page that it uses to communicate with its customers. It can also be accessed through twitter
32
though this media is not very active. E mail marketing has been used by MTN but mainly
when communicating with corporate clients. Mobile phone marketing has been the major
avenue that MTN has used when communicating with its customers and it has been very
effective.
4.5.2 When MTN introduced e marketing services to Uganda
MTN opened its doors in Uganda in 1998 and with its inception introduced some e marketing
services like mobile phone marketing. Later on, the MTN website was developed. Others
came about as a result of product development such as email marketing and social network
marketing. This therefore means that MTN has some history in e marketing and thus has
some competitive advantage over the relatively new entrants like Warid.
4.5.3 How MTN has been using e marketing in its operations
MTN has a corporate website that it uses to give information on its products, services and
about the company. MTN also does product placement through its website. MTN advertises
itself through other company websites like New Vision website and Daily Monitor website.
More recently, MTN set up a facebook page and it also has an account with twitter. The
facebook page has 950 members and has managed to influence a few successful campaigns
for example, the Uganda cranes chant, “we go, we go” has been successful and has attracted
over 5000 people. Though MTN has utilized the social network platform, it has not fully
exploited it. MTN also uses email marketing mainly when addressing corporate clients. When
MTN needs to inform its corporate clients about new products and services that have been
developed, it sends them emails. Mobile phone marketing has been used on many levels,
sometimes MTN sends its customers sms of current promotional activities, it also provides
mobile internet and advertises through this forum. Recently, MTN partnered with Google to
33
provide its customers with a virtual market place where they can buy and sell amongst
themselves.
4.5.4 How customer adaptation/response rate to e marketing services has been.
The respondent explained that the figure is not easily quantifiable but when MTN realized its
customers were really complaining about MTN services either because they were
misinformed or the information about products and services did not trickle down to the
market, then MTN used e marketing to reverse this effect and pull back its customers.
4.5.5 Whether e marketing communications have proven to be beneficial to MTN
The respondent agreed that e marketing services have been very beneficial to MTN because
communication via e marketing platforms is much cheaper than other platforms. Through e
marketing, MTN has been able to target those people who do not access the other media like
TV, radio, newspapers and billboards. E marketing communications have a longer shelf life
than information from other media, for example an email or a text message can last longer
than an advertisement in the newspaper that runs for one day.
4.5.6 Whether introduction of e marketing services has led to an increase in sales
volume
The respondent explained that no exact figures can be ascertained but e marketing has
contributed positively by changing negative attitudes of customers and closing the
information gap which had developed between the company and its customers. This therefore
means that customers are retained which in turn generates revenue for the company.
34
4.5.7 Challenges experienced in offering e marketing services to consumers
The respondent expounded on the challenges MTN faces when offering e marketing services
to its customers. Infrastructure is a big a problem, for instance electricity is not well
distributed through out the country; this also means that customer accessibility to internet
may also be limited. MTN competitors also replicate some of the products and services that
MTN innovates. Some individuals also manipulate some communications from MTN and
thus give MTN bad publicity. The target customers who may be able to access or who are
interested in e marketing services are limited, for example a farmer in the village may not be
able to exploit e marketing services.
4.5.9 How e marketing works with forms of marketing and communication that MTN
uses
The respondent explained that communications are placed on the e marketing platform after
they have already been communicated through other media like newspapers, TV and radio.
Thus e marketing serves to reach those people who have not been able to access the
traditional media.
4.6 Whether there is a relationship between e marketing and sales volume
The respondent agreed that there is a relationship between e marketing and sales volume
though not directly quantifiable, it is more qualitative, for example it has helped facilitate a
change in negative attitudes where people who were about to leave MTN change their mind
after receiving feedback from MTN. The e marketing platform has also helped MTN to close
the information gap that had developed between itself and its customers. This therefore
means that current customers are retained and new ones are attracted leading to improved
revenue streams for the company.
35
4.7 findings on the relationship between e marketing and sales volume using Pearson
correlation
This section focuses on establishing the relationship that exists between e marketing and sales
volume. It looks at e marketing as an independent variable and sales volume as a dependent
variable. The sections selected to test the relationship are; whether respondents encounter e
marketing in their day to day interaction with MTN (table 5) and whether e marketing
services influence the number of times they access MTN services (table 7). The findings are
summarized below.
The Pearson’s Rank Correlation Coefficient is provided in the following formula
r = n∑xy - ∑x.∑y
√ [n∑x2 – (∑x)2] [n∑y2 –(∑y)2]
Where;
r – Pearson Correlation Coefficient
n – Frequency
Table 15: showing the analysis of the relationship between e marketing and sales volume
E marketing (x) Sales volume (y) xy x2 y2
34 30 1020 1156 900
05 09 45 25 81
∑x = 39 ∑y = 39 ∑xy = 1065 ∑x2 =1181 ∑y2= 981
Source: primary data
r = 39 ×1065 -39 ×39
√[ (39× 1181) –(39)2] [(39×981) –(39)2]
36
r = 4135 – 1521
√ [46059 -1521] [38259 -1521]
r = 40014
√ (44538) (36738)
r = 40014
√ 1636237044
r = 40014
40450.43
= 0.98
The above numerical expression indicates that there is a very strong relationship (0.98)
between e marketing and sales volume.
37
CHAPTER 5
SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.0 Introduction
This chapter presents the summary discussion, conclusion and recommendations of the
findings. The summary focuses on the findings in relation to the objectives of the study. The
summary is followed by the conclusion, which is also based on the findings of the study and
lastly the recommendations.
5.1 Summary of major findings
5.1.1 E marketing services
Findings indicated that majority of MTN customers encounter and use e marketing services
regularly. They also find the services beneficial and most of them agreed e marketing
services make MTN competitive.MTN uses e marketing services to communicate and interact
with its customers though it has not fully exploited some platforms like social network
marketing and e mail marketing.
The findings suggest there is a major information gap between MTN and its customers. Most
MTN customers perceive that they can only communicate with MTN through calling
customer care centers and submitting their complaints. There are other platforms which the
customers have not made use of, for example, they can leave complaints or comments on
MTN’s facebook page or send an email in regard to their complaints and get feedback from
MTN through these platforms.
38
5.1.2 Sales volume
E marketing services have had a profound impact on MTN’s sales volume. E marketing has
helped to change customers’ negative attitudes and perception thus retaining them as MTN
customers which has in turn contributed to improved revenue streams. The findings indicated
that e marketing services lead to most customers accessing MTN services more often.
5.1.3 Relationship between e marketing and sales volume
Findings indicated that there is a strong positive relationship between e marketing and sales
volume. The Pearson correlation coefficient indicated this to be 0.98. This implies that e
marketing services greatly affect sales volume.
5.2 Conclusion
Most MTN customers are familiar with e marketing services but the most popular platforms
are social network marketing and mobile phone marketing. This tends to suggest that the
market is open to e marketing services but most companies have not exploited them yet they
seem to be very effective means of communicating and interacting with customers. The
company’s task is to try and optimize these platforms that customers enjoy and seem to be
interested in and at the same time maximize the revenue streams from these platforms.
5.3 Recommendations
MTN should reduce the information gap between the company and its customers. They
should educate their customers on how to effectively harness e marketing services so as to
enable customers to easily communicate their opinions or comments and complaints. This
will ensure there is two way communication between the company and its customers thus
improving the relationship between MTN and its customers.
39
Since most customers use or encounter mobile phone marketing and social network
marketing a lot than the other platforms, MTN should fully exploit these two platforms. They
should focus on generating mobile phone content that will attract customers and at the same
time maximize the social network platform because this is where most customers seem to be
active.
5.4 Areas for further study
Further research should be carried out on the following:
-To examine the impact of branding on e marketing.
-To examine the impact of mobile phone marketing on sales volume.
-To examine the performance of click companies/internet companies as opposed to brick and
mortar companies in Uganda.
40
REFERENCES
Hughes and Fill, Marketing Communication, CIM, Butterworth Heinemann
Beamish and Ashford, Marketing Planning, CIM, Butterworth Heinemann
Geoff Lancaster and Frank Withey (2006-2007), Marketing Fundamentals, CIM, Butterworth
Heinemann
David Jobber (1997), The CIM Handbook of selling and sales strategy, Butterworth
Heinemann
William C. Monarief and Shannon H. Shipp (1997), Sales Management, Addison Wesley.
PR Smith (1995), Marketing communication an integrated approach, Clays LTD, St. Ives
PLC.
Angella Hatton and Mike Adroyd (1995), Economic Theory and Marketing Practice,
Butterworth Heinemann.
Liz Hill and Terry O Sullivan (2004), foundation Marketing, prentice Hall.
Kotler Phillip and Gary Armstrong (2010), Principles of Marketing, Pearson Prentice Hall.
Richard Mukoma, July 13th 2010, The pitch, Daily Nation
Kui Kinyanjui, Tuesday July 27th 2010, “kenya’s techpreneurs take on the world with mobile
software apps”, Business Daily
ICT statistics news log, July 15th 2010
www.wikipedia.com/sales/2008
www.wikipedia.org/may 2008/internet marketing.
41
Kim Dushinski 2010, the mobile marketing handbook.
Greco September 2007, Adobe magazine for creative professionals, volume 1 issue 3.
Dejan Petrovic, November 24th 2010, “e marketing”.
Kenneth Deighton 1996, marketing, Macmillan.
Tony Curtis 2007, Marketing in practice, CIM, Butterworth Heinemann.
Chris Fill 2006, marketing communication, CIM, Butterworth Heinemann.
David Jobber and Geoff Lancaster 2000, Selling and Sales Management, Prentice Hall.
Cavusgil Henry 1996, marketing in practice, prentice hall.
Nobilis 2010, e marketing today.
Mobile marketer 2010, branding and mobile phone marketing.
MTN website
MTN facebook page.
42
APPENDICES
APPENDIX I: QUESTIONNARE FOR MTN CUSTOMERS
Dear respondent, the researcher is a Bcom student in Makerere University conducting
research on e marketing and its impact on sales volume. The questions below are intended to
facilitate this study and thus I humbly request you to answer the questions herein as honestly
as possible. The information provided will be used for academic purposes only and outmost
confidentiality will be exercised in the fulfillment of the research project.
THANKYOU
(Please tick in the most appropriate or fill in the blank space where necessary)
SECTION A: background information
1. What is your gender?
Male Female
2. What is your education background?
Primary Secondary
Diploma Degree
Other,specify …………………………
3. What is your occupation?
……………………………………………………………………………………….
4. What is your age?
10-20 21-30
31-40 41-50
Above 60
5. What is your marital status? …………………………………………………………..
43
6. How long have you been an MTN customer? …………………………………………
SECTION B: services offered through e marketing
1. Please tick the e marketing services you are familiar with.
Social network marketing mobile phone marketing
E mail marketing websites
Do you know of any other? ……………………………………………………
2. Do you encounter e marketing services in your day to day interactions with MTN?
Yes No
3. Please tick the e marketing services that you access/ encounter in your day to day
interactions with MTN.
Social network marketing mobile phone marketing
E mail marketing MTN website
4. How often do you use/ encounter e marketing services?
Always sometimes
Never Not sure
5. Do you think the current e marketing services offered by MTN make it
competitive?
………………………………………………………………………………………
………………………………………………………………………………………
SECTION C: customer adaptation to e marketing
1. Does accessing e marketing services influence the number of times you use MTN
services?
Yes No
44
2. Give reasons for your answer above.
………………………………………………………………………………………
………………………………………………………………………………………
…..
3. Which media do you use to access e marketing services?
Computer mobile phone
Both other (specify) ………………
4. How do you use e marketing services offered?
Interaction work/ education
Accessing information other (specify) ……………….
5. Would you like to access e marketing services from other companies?
Yes No
6. Why would you like to experience/ not experience e marketing services from
other companies?
………………………………………………………………………………………
….…………………………………………………………………………………..
7. Through the e marketing services offered by MTN has it become easier to
communicate with MTN in regard to complaints about services or expression of
satisfaction?
Yes No
8. Give reasons for you answers above.
………………………………………………………………………………………
..…………………………………………………………………………………….
SECTION D: challenges associated with e marketing
1. Is it costly to access/ encounter e marketing services?
45
Yes No
2. Do you experience any difficulties in accessing e marketing services?
Yes No
3. If yes, what difficulties have your encountered when accessing e marketing
services?
………………………………………………………………………………………
..……………………………………………………………………………………
4. Have some e marketing communications from MTN been a nuisance/
bothersome?
Yes No
5. If yes, in what ways have the communications been bothersome?
………………………………………………………………………………………
.……………………………………………………………………………………
Thank you for your cooperation and time.
46
APPENDIX II: INTERVIEW GUIDE FOR MTN STAFF
1. Which e marketing services does MTN offer?
Websites social network marketing
E mail marketing mobile phone marketing
2. When did MTN introduce e marketing services to Uganda?
3. How has MTN been using e marketing in its operations?
4. How has customer adaptation/response rate been to e marketing services?
5. Has introduction of e marketing services proven to be beneficial to MTN?
6. What is the current sales volume of MTN?
7. Since the introduction of e marketing services, has there been a noticeable increase in
the sales volume?
8. What challenges do you experience in offering e marketing services to consumers?
47
9. How does e marketing work with other forms of marketing and communication that
MTN uses?
10. Do you see any relationship between e marketing and sales volume?
48