MARKETING STRATEGY AND CUSTOMER SATISFACTION IN SMALL AND MEDIUM ENTERPREISES (SMEs): A CASE STUDY OF AIRTEL TELECOMMUNICATION COMPANY, IN DIVISION

BY:

NANKAAMI DOROTHY

BBA/35274/113/DU

' .

A RESEARCH REPORT SUBMITTED TO THE COLLEGE OF ECONOMICS AND

MANAGEMENT IN PARTIAL FULFILMENT OF THE REQUIREMENTS

FOR THE AWARD OF THE DEGREE OF BACHELOR

OF BUSINESS ADMNISTRATION OF

KAMPALA INTERNATIONAL

UNIVERSITY

JUNE, 2014 DECLARATION

The material in this research has never been submitted to any University or institutions of higher learning for any academic qualifications. This research is a result of my own independent research effort and investigations. Were it is indebted to the work of others, the acknowledgment has been made.

Signature Date ...... o:::i. I 01 Ia o , l..f . Nankaami Dorothy APPROVAL

This is to certify that this work has been supervised and is now ready to be submitted to International University College of economics and Management with my approval as a ::::~~ su~e~is¼ ......

Date ...... ~ .(!!

ii DEDICATION I, dedicate this research report to my father Mr. Kasumba Gestefasi for his humbled contribution through my life including my academic life, may God bless you for your support.

iii ACKNOWLEDGEMENT Several people have contributed to my study including the life I have under gone. It is hard to mention every individual who contributed to my study but key emphasis be placed on the following persons

My supervisor Dr. Ssekajugo Derrick for his willingness to supervise my report. It is your dedication and focus that improved and accounts for the quality of my work.

I also extend my gratitude to my parents': my mother Nambule and my brothers Stephen, Moses and Patiick and sisters.

Last but not least, I am grateful to all persons whose efforts have fundamentally contributed to my academic pursuit.

iv TABLE OF CONTENTS

DECLARATION ...... i APPROVAL ...... ii DEDICATION ...... iii ACKNOWLEDGEMENT ...... iv TABLE OF CONTENTS ...... v CHAPTER ONE ...... ! INTRODUCTION ...... 1 I. I Background to the Study ...... 1 1.2 Statement of the Problem ...... 3 1.3 Pmpose of the Study ...... 4 1.4 Objectives of the Study ...... 4 1.5 Research Questions ...... 4 1.6 Scope of the Study ...... 4 1.6.1 Conceptual Scope ...... 4 1.6.2 Geographical Scope ...... 4 1.6.3 Time Scope ...... 4 1.7 Significance of the Study ...... 5 1.8 Definition of Terms ...... 5 CHAPTER TWO ...... 6 LITERATURE REVIEW ...... 6 2.1 Introduction ...... 6 2.2 Marketing Strategies adopted by Airtel ...... 6 2.3 Customer Satisfaction ...... 9 2.4 Relationship between marketing strategies and customer satisfaction ...... I 0 CHAPTER THREE ...... 12 METHODOLOGY ...... 12 3. I Introduction ...... 12 3.2 Research Design ...... 12

V 3.3 Area and Study Population ...... 12 3.4 Sampling Size and Sample Technique ...... 12 3.4.1 Sampling Size ...... 12 3.4.2 Sample Technique ...... 13 3.5 Type and Source of Data ...... 14 3.5.1 Primary Sources ...... 14 3.5.3 Secondary Source ...... 14 3.6 Research Instruments ...... 14 3.7 Data Collection Procedures ...... 15 3.8 Data Analysis ...... 15 3.9 Ethical Considerations ...... 15 CHAPTER FOUR ...... 16 DATA PRESENTATION ANALYSIS AND INTERPRETATION ...... 16 4.1 Profile ofrespondents ...... 16 4.2 Description of the independent variable ...... 18 4.3 Description of the dependent variable ...... 19 4.4 Relationship marketing strategies and customer satisfaction at airtel in ..... 22 CHAPTER FIVE ...... 24 SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS ...... 24 5.0 Introduction ...... 24 5.1 Summary of findings ...... 24 5.2 Conclusions ...... 25 5.3 Recommendations ...... 25 5.4 Areas for Further Research ...... 26 REFERENCES ...... 27 APPENDIX A: RESEARCH QUESTIONNAIRE ...... 30 APPENDIX B: RESEARCH BUDGET...... 34 APPENDIX C: RESEARCH TIME FRAME ...... 35

vi CHAPTER ONE

INTRODUCTION

1.1 Background to the Study

Liberalization of the telecommunications sector in Uganda saw the emergence oflarge and small telecom companies in Uganda (ICT Ministerial Policy, Angust 2006). According to Uganda Communications Commission (UCC) repmi (2009), there were 38 licensed operators with five of those holding major licences for infrastrncture and service provision allowing them to deliver mobile telecommunication services. The major license holders are MTN Uganda, , Airtel Uganda, Warid Telecom and Orange Telecom. The market has become increasingly competitive with tariffs and connection costs significantly dropping to 3/= per Second across all networks (, Wednesday, 29th.September.2010) while 1/= per second is being charged for calls within the same network (The , Tuesday, 10th, November, 2010). This price war has led to a significant increase in the promotional expenditure for these companies since it is the most available tactical strategy to compete in the already volatile market.

A case in particular is MTN Uganda which boasts of a record 6,215,000 subscriber by the end of October 2010, the UCC Market Survey October 2010 indicates that, less than half the number has used the network for the past five years. While Airtel Uganda recorded 2,250,000 Customers by the end of October 2010 while an internal record from their marketing department shows that the retention and loyalty drive which closed in August 2010 registered 750,000 loyal customers. In such expanding and rapidly changing environment, companies cannot maintain attitudes characterized by attracting customers or expanding in new markets. The key success factor to survive in mature markets relies on sustaining long-term relationships with stakeholders (De madariaga and Valor, 2007). The challenge all marketers face today is in finding ways of increasing customer loyalty and retention. Transforming indifferent customers into loyal ones and establishing a long term relationship with customers is critical for organizational success (Bhardwaj, 2007). To compete in such overcrowded and interactive market place; marketers are forced to look beyond the traditional 4Ps of marketing strategy, which are no longer enough to be implemented for achieving competitive advantage

1 Marketing strategy is defined as a process that can allow an organization to concentrate its resources on the optimal opportunities with the goals of increasing sales and achieving a sustainable competitive advantage (Baker, 2008). Marketing strategies serve as the fundamental underpinning of marketing plan designed to fill market needs and reach marketing objectives of which is to match customer expectation. It combines all of its organization's marketing goals into one comprehensive plan (Homburg, 2009). A good marketing strategy is drawn from market research and focus on the right product mix in order to achieve the maximum profit potential and sustain the business. As Baker (2008) stated that, marketing strategies consist of all basic and long-term activities in the field of marketing that deal with the analysis of the strategic initial situation of a company and the formulation, evaluation and selection of market-oriented strategies and therefore contribute to the goals of the company and its marketing objectives.

On the other hand, customer satisfaction is a term frequently used in marketing. It is a measure of how products and services supplied by a company meet or surpass customer expectation. Customer satisfaction is defined as "the number of customers, or percentage of total customers, whose repmied experience with a finn, its products, or its services (ratings) exceeds specified satisfaction goals (Farris et al., 2010). It is seen as a key performance indicator within business and is often part of a balanced scorecard. In a competitive marketplace where businesses compete for customers, customer satisfaction is seen as a key differentiator and increasingly has become a key element of business strategy (Gitman, 2005). When customers have high expectations and the reality falls short, they will be disappointed and will likely rate their experience as less than satisfying. Organizations need to retain existing customers while targeting non-customers (John, 2003). Measuring customer satisfaction provides an indication of how successful the organization is at providing products and/or services to the marketplace. Meanwhile, Wills (2009) states that it costs more than five times as much to obtain a new customer than to keep an existing one.

Customers of any organization need to be assured that their needs are fully being catered for. This is ve1y crucial in ensming that the customers feel appreciated thus, organizations' marketing strategies is therefore very important. Each company normally chooses the best marketing strategy for achieving its objectives depending on the environment in which it operates. Marketing strategies are the procedures and practices that allow a company to focus its limited 2 resources on the greatest opportunities on order to increase sales, enhance its profits and accomplish a sustainable competitive advantage. Actually, the main goal of various marketing strategies used by an organization it to ensure maximization of profits and enhance customer satisfaction levels. The customer satisfaction level which the company reaches usually determines its success level. This is due to the importance of customer satisfaction as it is one of main goals of any company (McGrath, 2003).

Ai1tel Uganda telecom happens to be the first telecommunication company in Uganda since 2005. By principle, this telecom company strives to offer high quality services, respond to customer demands in the shortest time as well as guarantee reliability of its services to the best of customer expectations. Besides telecommunication and internet services, Airtel telecom is involved in procuring of products such as modems, laptops and phones among others. What is clear is L'iat, Airtel telecom doesn't manufacture any of these products; and so, the company has to ensure that it has the right stock to ensure that there is right level at any given time. Its performance is dependent on its customer behaviors; the ability to influence customer attitudes and behaviours positives results into organizational efficiency.

1.2 Statement of the Problem Today's telecom sector is confronted with the fierce competition given the a good number of similar service providers, a number of marketing strategies ranging from aggressive sales tactics, telemarketing, direct mail, doorstep selling, radio advertisements, Television advertisements and sales promotions have been implemented to achieve a competitive edge (Peng and Wang, 2006). Despite the use of these market-led strategies, telecommunication companies have only attracted customers on their networks, with little or no attention on retaining and maintaining consumer loyalty. This is explained by the small numbers of loyal customers on each individual network, a situation attributed mostly on lack of relationship marketing, coupled with the inability to identify the most effective marketing strategy. Whereas the company's market share in the telecom sector can increase by I 0% when most suitable marketing strategies, there is a substantial 20% reduction in the market share if these are not catered for (Makinsey Quarterly report, April 2010).Therefore, without a more systematic and analytical investigation into

3 marketing strategy, Airtel company is unable to gain and maintain a competitive advantage through customer satisfaction.

1.3 Purpose of the Study The study was aim at examining the impact of marketing strategy on customer satisfaction in an organization.

1.4 Objectives of the Study The following are the specific objectives that will serve as a guide in this study;

1. To establish the marketing strategies adopted by airtel Uganda

11. To examine the level of customer satisfaction in airtel Uganda

111. To establish the relationship between marketing strategies and customer satisfaction

1.5 Research Questions 1. What marketing strategies have been adopted by aiiiel Uganda?

11. What is the level of customer satisfaction in Airtel Uganda?

111. What is the relationship between marketing strategies and customer satisfaction in Ai1iel Uganda?

1.6 Scope of the Study

1.6.1 Conceptual Scope Conceptually, the study was limited to the study of two vmiables nmnely, marketing strategy (as independent vmiable) and customer satisfaction (dependent variable) respectively.

1.6.2 Geographical Scope Geographically, the study was conducted at Ai1iel telecom located at plot 40 Wampewo Avenue m1d among several Ai1iel outlets in Central Kampala.

1.6.3 Time Scope

The study covered a period of 3 months that is from March to June 20 I 4.

4 1.7 Significance of the Stndy

Going by the continued complication and competition in the telecommunication industry, it is very crucial that the marketing strategies being used by Airtel company be analyzed so that any loopholes that do exist in the employed strategies be identified and possible changes that need to be made be identified and proposals submitted to the management. This report would indeed benefit not just the Aiitel Company, but would also benefit other potential investors into the telecommunication industry and stakeholders and shareholders of the telecommunication in ensuring that they accrue maximum benefits from the company.

Moreover, the research would also give an insight into some of the impact of the different marketing strategies to the performance of the related industJies. The generated data will serve as a basis for fmther studies, in other words, the findings of this study will be a point of reference; since it aims at adding up to date knowledge on marketing strategies and customer satisfaction.

1.8 Definition of Terms Customer satisfaction is the measure of how products and services supplied by a company meet a customer expectation.

Marketing strategy is defined by David Aaker as a process that can allow an organization to concentrate its resources on the optimal opportunities with goals of increasing sales and achieving sustainable competitive advantages.

Small and medium enterprises are defined as companies whose personnel numbers fall below certain liini ts.

5 CHAPTER TWO

LITERATURE REVIEW

2.1 Introduction This chapter deals with the assessment of literatures which relate to the topic the recruitment and selection practices of organization. Several literatures would be selected and relevant areas would be reviewed and evaluated. This chapter provides infonnation about aspect of previous works which relate to this study. In view of this, a number of presentations culled from various sources are under review here

2.2 Marketing Strategies Adopted by Airtel Uganda

Terence (200 I) referred to marketing strategy as a number of interrelated activities which if well integrated leads to attaimnent of company goals that always outlined in the company mission and vision of the company. From the production or initiation of production process of certain goods and services, there need to exist a strategic procedure through which the business organization intend to place its goods and services to the market. It serves as the fundamental underpinning of marketing plans designed to fill market needs and reach marketing objectives (Homburg et al., 2009). Marketing strategy involves careful and precise scanning of the internal and external environments. Internal enviromnental factors include the marketing mix and marketing mix modeling, plus perfonnance analysis and strategic constraints (ibid)

Marketing strategy literature indicates that market segmentation, positioning and, fully­ integrated marketing mix strategies are major components of a successful marketing strategy for today's businesses (McDonald, 2002).

Social Marketing Strategy

Social marketing Strategy is defined as an application of connnercial marketing concept, knowledge and techniques to non commercial ends such as campaigns against smoking and drnnken dtiving for society's welfare (International Social Marketing Association, 2013). It is the use of commercial marketing in promotion of goods and service in a way that helps in promoting the consumers' and by extension, the society's well being.

6 Moreover, MacFadyen et al. (2002) observed that, the end goal of social marketing is to improve individual welfare and society, not to benefit the organisation doing the social marketing; this is what distinguishes social marketing from other forms of marketing. In fact, Schwaiger (2004) clearly asserted that, what is usually called brand equity or corporate equity is determined by corporate reputation. Additionally, Schwaiger notes that in marketing reputation is seen as the result of a corporate branding; in accounting it is seen as a kind of goodwill; One of the most critical strategic and enduring assets that a corporation, and indeed people that comprise it may possess is good reputation.

Consumer Oriented Market Research

McEachern and Warnaby (2005) defined customer orientation market research as a component of market orientation that focuses on putting the customers at the centre of strategic focus. Kotler (2004) emphasized the need for organizations to move from the level of studying customer segments to shaping separate offers, services and messages to individual customers. Hence such firms may need to collect information on each customer's past transactions, demographics, psychographics, and media and distiibution preferences. Such data is utilized to achieve profitable growth through expenditures by building high customer lifetime value. He further asserts that the ability of a company to deal with customers, one at a time has become practical as a result of advances in factory customization, computers, the internet and database marketing software.

Hooley et al. (2005) indicated that, the fact that, the business environment has thus become filled with service and manufacturing firms in search of excellent practices to achieve competitive advantage, which must be seen by their customers as benefit by delivering superior value, which enhances repeat patronage and sales growth. So, customer orientation encompasses the analysis of customers' needs, and responsiveness of organization to such needs (Nakata and Zhu, 2006). But some salient questions have been raised concerning whether customer orientation actually translates to better perfonnance (Ang and Buttle, 2006; Avnet and Higgins, 2006).

7 Segmentation and targeting Marketing Strategy

Market segmentation, in its tactical sense, often refers to such things as the use of particular statistical techniques for identifying groups of potential customers who have different needs, wants, tastes, and preferences. In contrast, market segmentation strategy, as used here, is a broad concept that refers to the strategic process that includes identifying bases for segmentation, using the bases to identify potential market segments, developing combinations (portfolios) of segments that are strategic alternatives, ascertaining the resources necessary for each strategic alternative, assessing existing resources, selecting an alternative that targets a particular market segment or segments, securing the resources necessary for the target(s), adopting positioning plans for the market offerings for the segments, and developing marketing mixes appropriate for each segment (Sternthal and Tybout, 2001). Similarly, Hunt (2002b) stated that, market segmentation strategy is applied by firms for the achievement of competitive advantage and, thereby, superior financial performance results from firms identifying segments of demand, targeting specific segments, and developing specific marketing "mixes" for each targeted market segment.

Marketing Mix Strategy

Fully-integrated and coherent marketing mix strategies form the major part of a successful marketing strategy. Goi (2005) defined marketing mix as the set of the marketing tools that firms use to pursue their marketing objectives in the target market. While Hutchison (2009) referred to marketing mix as a blend of product, pricing, promotion distribution strategies made to produce a mutual satisfying exchange with the target market. The marketing mix is a synonym of 4ps, which is made of the four relevant components of all product strategy. These are Product, Promotion, Price and Place. They hold the opportunity for the company to differentiate (Borden, 1964). The four "P"s of product, plice, promotion and place constitute the offer that an organization offers to the business. If this offers suits well the consumers' needs, it leads to sales increment. In addition, if it's sufficiently managed, these sales enhance profit to the business (McDonald, 2013). Market strategy therefore, in intended to never to miss the set shot, suppliers need to understand the attributes and benefits the buyers' value so that they customize each "P" to their needs, and the mix of the elements that will be appealing to the buyers (Young, 2011).

8 2.3 Customer Satisfaction Satisfaction is an overall customer attitude towards a service provider (Strauss et al., 2001) or according to Zineldin (2000) an emotional reaction to the difference between what customers anticipate and what they receive. When customers are satis? ed, they are more likely to return, while dissatis? ed customers are more likely to go elsewhere (Zairi, 2000). Customer satisfaction is defined as the consumer's fulfillment response. It is a judgment that a product/service feature, or the product or service itself, provided (or is providing) a pleasurable level of consumption­ related fulfillment, including levels of under-or over fulfillment" (Oliver, 2010:8). Customer satisfaction has been the focal point of many marketing studies (Szymanski and Henard, 2001). The dominant framework for explaining customer satisfaction is the expectancy­ disconfirmation framework (Oliver, 2010). In this framework satisfaction is determined by the difference between expected perfo1mance and actual performance. When expectations are met or exceeded the customer experiences positive disconfirmation. If performance is worse than expected, the customer is dissatisfied and experience negative disconfinnation. In connection with the previons definition of satisfaction where satisfaction is a pleasurable level of fulfillment, it means that this is reached when expectations are met or exceeded. This fran1ework is widely accepted and tested (Yi and La, 2004), but it does not explain the entire concept of the customer's satisfaction formation (Oliver, 2010).

Other related antecedents of satisfaction like need fulfillment, perceived quality, perceived value, equity and regret (Anderson and Fornell: 2000, Oliver, 2010) are all viable antecedents of satisfaction formation. Several books have been written on the subject, and the discnssion is too exhaustive to be addressed in this study. Focus will therefore be narrowed down to testing the framework in a new context. Disconfirmation of expectations and expectancy-disconfirmation will be used interchangeably as it is common in the literature (Oliver, 2010).

Overall customer satisfaction is said to be enhanced by seven different variables such as reliability, quality, and overall satisfaction with product and technical service. Reliability and quality is commonly used to measure satisfaction (Lam et al., 2004), and flexibility has also been found positively related to customer satisfaction (Cater and Cater, 2009). User-friendliness and solution provider are features believed to be important in customer satisfaction stimulation.

9 Overall satisfaction with product performance and technical service is found positively related to customer satisfaction in different studies ( e.g. Homburg and Rudolph, 2001 ).

2.4 Relationship between marketing strategies and customer satisfaction To survive in highly competitive markets, organisations need to provide services that yield highly satis?ed and loyal customers (Westbrook and Oliver, 1991). As Lytle and Timmerman (2006) claimed, customer satisfaction is currently "the new standard by which customers are measuring business performance. Satis? ed customers are more inclined to be loyal, producing several bene?ts for organisations (Asif and Sargeant, 2000). First, repeat business generates income. Second, it limits costs related to acquiring new customers, such as advertising, promotion and start-up activities. Third, satis? ed customers often "spread the good news" and recommend products and services to others. Consequently, customer satisfaction is considered to be a key to organisational survival (Jones and Sasser, 1995), as well as increased market share and pro?tability (Hansemark and Albinsson, 2004).

Customer satisfaction related to profitability since it enhances customer loyalty (Rauyruen and Miller, 2007). More specifically the cost of customer retention is lower than the cost of acquiring new customers (Oliver, 2000). It is also considered an important source of competitive advantage (Lam et al., 2004). Indeed, the very idea of a customer satisfaction involves some sort of relationship, meaning that the customers must experience the brand over time (Oliver, 2010), most likely by purchasing a product or service several times.

Das Prasun (2009) stressed that, ensuring customer satisfaction in delivering the right product and service to the end-users is the major concern for the future growth of the organization. In the present study an attempt is made to find out the customer satisfaction through marketing strategy is intended to determine the most effective strategy.

Additionally, Anderson et al. (2004) found a positive association between customer satisfaction at the company level and Tobin's q (a long-nm measure of financial perfonnance) for department stores and supermarkets. Babakus et al. (2004) link customer satisfaction to product and service quality within retail stores and find that product quality has a six significant impact on store-level profits. Research on customer satisfaction usually views employees as facilitators

10 of the sales process who are critical to improving the conversion ratio, by providing information to the customers on prices, brands, and product features and by helping customers to navigate services, finding the product and even cross-selling other products. The unique feature of the business execution problem is that it combines the factory and the sales components.

11 CHAPTER THREE

METHODOLOGY 3.1 Introduction

This chapter embraces the following: research design, study area and population, sample size and sample techniques, sampling strategies, types and sources of data, data collection methods and instruments, data collection procedure, data management, data analysis, ethical considerations and limitations of the study. 3.2 Research Design

The study adopted the descriptive correlation research design; this means questioning the respondents in data collection to establish the statistical evidence between marketing strategy and customer satisfaction. As Cooper and Schindler (2001) stated that, a structured questionnaire is therefore designed to collect the data for descriptive statistics. Secondiy, the study wiil adopt a correlation research design with the attempt to establish the relationship between the study variables. 3.3 Area and Study Population

According to Istijanto (2005) population is a collection of items that work together to achieve a common purpose. The study was conducted within 10 Airtel Company outlets in Nakawa division. These employ about 3 people each, therefore a target population of 30 staff and 30 customers will constitute the respondents of the study.

3.4 Sampling Size and Sample Technique

3.4.1 Sampling Size

A sample is a segment of the population with the same characteristics as the population on whom the study is conducted (Bums & Grove 2003). Since it is difficult to conduct a study on the whole population as the sample would be too large to control; therefore, the study involved a sample size of 52 respondents from the sampled outlets. This was done because of time constraints and the purposefulness of the study.

12 This was arrived at or dete1mined using Slovene's formula as shown below

N n l+N(a)'

Where;n = the sample size

N = total population of respondents.

a = the level of significance, that is 0.05

N n=---- l+N(a)2

n= 60

I + 60 (0.05) (0.05)

N= 60

I +60 * 0.0025

n= 60

1.15

n= 52.17

Therefore the sample population of 52 was employed for this study

3.4.2 Sample Technique

The researcher employed a combination of sampling techniques such as purposive sampling and simple random techniques;

Purposive sampling techniques: This used majorly target the management staff of the outlets. This technique is selected because it is time effective and cost effective and also helps in selection of typical and relevant cases necessary to equip the study with the required infonnation.

13 Simple random sampling technique: This technique was useful in selecting the large population of participants, this sampling method is chosen because it avoids any sort of bias from the accessible population; each party of the target population has equal chances to participate. The respondents were randomly selected by allocating numbers to them where the researcher detennined numbers for choice of study. The numbers were given to respondents to choose randomly after which those with suitably determined numbers are chosen.

3.5 Type and Source of Data

The researcher obtained data from two primary and secondary sources.

3.5.1 Primary Sources

This data is firsthand data from respondents that has never been published directly from selected respondents. The researcher used a self administered questionnaire to gather information. (Amin, 2006)

3.5.3 Secondary Source

This researcher obtained secondary data from libraries, text books, internet and review of the documents published by the unit of analysis. Secondary data is that type of information that has ever been published by different authors.

3.6 Research Instruments

The research instrument is a method used to observe or measure the research variables as accurately as possible (Polit and Beck 2004).The researcher designed a questionnaire on marketing strategies and customer satisfaction based on 4 point scale rating. Therefore, a 4 point likert scale self-administered questionnaire comprising of statements and responses ranging from 1=Strongly Disagree to 4=Strongly Agree was formulated. Questionnaires were designed to capture all the aspects of the objectives of the study. A questionnaire was employed in this study because it is a good tool for data collection in respect to the study; it gives respondents opportunity to express themselves without being influenced by the investigator.

14 3.7 Data Collection Procedures

An introductory letter was obtained from the Kampala International University to introduce the researcher to the authorities in the selected area of study. Once the introductory letter was obtained, the researcher then proceeded to the study area and seeks permission from auth01ities therein, once permission is granted the researcher sought the consent from respondents. Upon agreeing, the researcher then administered questionnaires to the selected respondents.

3.8 Data Analysis Collected data was processed or prepared for analysis by editing, categorizing or coding and then entered in the computer using SPSS for generation of summary frequency tables. The analysis was quantitative. Further, the analysis was computerized using SPSS to correlate the variables and Pearson's Coefficient (available in the SPSS program) techniques was used to predict and describe the association between. variables in terms of magnitude and direction (Oso and Onen, 2008).

3.9 Ethical Considerations

The researcher obtained consent from all the respondents. Given the nature of the study, anonymity was observed. The researcher observed extreme confidentiality while handling the respondents.

15 CHAPTER FOUR

DATA PRESENTATION ANALYSIS AND INTERPRETATION This chapter shows the background information of respondents, in tenns of profile, the description of independent variable and dependent variable and testing the relationship between marketing strategy and customer satisfaction at Airtel Uganda. 4.1 Profile of respondents TABLE 1 - A Profile of Respondents - Main category Sub category Frequency Percentage Gender Male 32 61.5 Female 20 38.5 Total 52 100 APe 18- 27 12 23.0 28 - 37 21 40.4 38-47 14 27.0 48+ 5 9.6 Total 52 100

Level of education Certificate 8 15.4 Diploma 11 21.2 Degree 17 32.7 Post graduate 6 11.5 Others 10 19.2 Total 52 100

Desionation Customer 26 50 Airtel employee 26 50 Total 52 100 Time of service at Airtel I year and below 4 7.8 2-4 vears 19 36.5 5 -7 Years 23 44.2 8 - 10 Years 6 11.5 11 and above 0 0 Total 52 100 Source: Primary Data, 2014 16 Table 1 present information on the profile of respondents, the responses. Findings on the gender of respondents reveal that majority of respondents were male constituting 61.5% of the total respondents while the male counterpaiis were 38.5%. The responses imply that the study took into consideration both genders hence infmmation attained can't be doubted on gender grounds, it further imply that mai·keting strategies involve both male and female.

On the age of respondents, the findings were that majority responses were recorded for the age bracket of 29- 38 with 40.4%, followed by 38-47 with the 27% of the total respondents, next were 18-27 with 23% of the respondents and finally 48+ with 9.6%. The responses imply that the respondents were mature hence understand the concepts of study therefore information collected can be employed for decision making.

The table furiher presents data regai·ding the education level of respondents. The findings on this perspective gathered were that majority respondents were recorded for degree with 32.7% followed by diploma with 21.1 % of the respondents, next in the sequence were others who included the uneducated with 19.2% of the respondents, then certificate was recorded at 15.4% and finally post graduate with 11.5%. The array of data signal the positive implication of results with this meaning that information was attained from the elite who therefore understand the concepts of mai·keting ai1d customer satisfaction.

The presentation on the designation of respondents who were interacted with at Airtel were that the research constituted the airtel staff ai1d their customers who included 50 % of staff and 50% of the airtel customers at Nakawa division. This implies the study provided a balanced argument on the mai·keting and customer satisfaction levels at ailiel points in Nakawa division.

Final verdict of the tabulation in table 1 provides an apex of the time the airtel staff ai1d customers have been part of airtel Uganda especially those in Nakawa division. The responses presented that majority of respondents were had interacted with airtel for a period of 5-7years with 36.5% respondents, 2-4 yeai·s had 36.5% of respondents while 8-10 years had 11.5%, 1 year and below had 7.8% and finally no respondent was recorded for 11 and above years. The prevalence of a high though moderate time of stay and interaction at Airtel meai1s that data

17 acquired is dependable since information was attained from respondents with more information on the operation of airtel.

4.2 Description of the independent variable

The independent variable in the study was marketing strategy. It was measured by five quantitative questions in the research questionnaire, each of which was scaled among one to four, where I= strongly disagree, 2 = disagree 3=agree 4=strongly agree. Respondents were required to rate controlling on each of the items of marketing strategy by ticking the relevant numbers in the table. Their responses were analyzed using SPSS 's summary statistics showing the meru, and standard deviations as shown in Table 2.

Table 2: Mean and Standard deviation on the level of Marketing strategies adopted by airtel (n=26)

Level of marketing strategies at Airtel MEAN STANDARD INTERPRETA TION DEVIATION

Airtel employ target mru·keting strategy 3.50 0.89 Very High

We conduct a market mJX analysis to 2.80 1.13 High strategies for customers

We use social mru·keting strategy in our 2.00 0.96 Low marketing

There is consumer oriented market 2.62 0.78 High research

We conduct market segmentation in 3.00 0.89 High identifying consumer needs

Average Mean 2.78 0.95 High

Source: Primary data, 2014

18 Results in table 2 Present an average mean of2.78 (High) on the level of marketing strategies employed by Airtel Uganda from the respondents who were employees of airtel service points located in Nakawa division. The responses were because of agreement on airtel employing the marketing strategies of:

Airtel employ target marketing strategy. The presentation with mean of 3.50 (Very High) imply that the company (Airtel uses the target marketing strategy in marketing its products. This could also imply that airtel target customer groups in the goods and services produced.

We conduct a market mix analysis to strategies for customers as a marketing strategy had a mean of 2.80) implying high responses, the responses which correspond to agreement denote a prevailing market mix analysis by airtel Uganda.

On the strategy of using social marketing strategy at airtel, the respondents argued with.mean of 2.00 (implying low fmiher indicating limited use social marketing to market the products and services of airtel. This could be due to the limited growth of social sites and use by consumers

There is consumer 01iented market research had a mean of 2.62 (implying high meaning that consumer 01iented market search is conducted as a marketing strategy at Airtel in Nakawa division, this could imply that airtel easily identify customer needs through research.

On the marketing strategy of market segmentation in identifying consumer needs, the researcher found out a mean of 3.00 (high) meaning that the respondents agreed that marketing segmentation is conducted at airtel to enable efficient and effective reach of customers.

The average mean on the level of marketing strategies used at airtel presented by an average mean of 2. 78 implying high means that the level of marketing strategies at airtel is good. It is possible to deduct that employee at ai1iel target to improve operations of the company. 4.3 Description of the dependent variable

The dependent variable in the study was level of customer satisfaction at airtel. It was measured by twelve quantitative questions in the research questionnaire, each of which was scaled among one to four, where 1= strongly disagree, 2 = disagree 3=agree 4=strongly agree. Respondents were required to rate controlling on each of the measures of customer satisfaction at airtel by

19 ticking the relevant numbers in the table. Their responses were analyzed using SPSS' s summary statistics showing the mean and standard deviations as shown in Table 3.

Table 3: Mean and Standard deviation on the level of Customer satisfaction at airtel (u=26)

Level customer satisfaction MEAN STANDARD INTERPRETA TION DEVIATION

I want to remain a customer of this 2.40 0.89 Low telecom company because I genuinely enjoy my relationship with them

I would feel unhappy if for some reasons 1.37 0.56 Very low I had to switch to another service provider I feel the staff of the telecom company 1.87 1.00 Low believe in bettennent of their customers Telecom company staff are always 2.45 1.18 Low willing to help me My service provider consistently meets 2.30 1.03 Low my expectations. I am satisfied with the products/services 2.60 1.11 High from my service provider. My service provider emphasizes 1.97 1.06 Low customer satisfaction as opposed to rules and procedures My service provider has always 3.00 0.65 High responded to my needs The service provider and all its service 2.60 I.IO High centers are easily accessible Considering eve1ything am extremely 2.10 0.87 Low satisfied with the service provider The service provider employees make 3.10 0.78 High sure that problems do not 1ise in our business relationship Average Mean 2.342 0.96 Low

Source: Primary data, 2014

20 Table 3 present responses on the information gathered from the respondents of airtel Uganda in Nakawa division on the level of customer satisfaction in Airtel Uganda. Responses were collected from respondents (Customers) of airtel branches located in Nakawa division.

The findings in table 3 showed that respondents agreed upon the factors raised on levels of customer satisfaction at airtel. Respondents were "I want to remain a customer of this telecom company because I genuinely enjoy my relationship with them" with the mean of 2.40 implying high meaning that a reasonable number of respondents agreed with being genuine customers of airtel.

I would feel unhappy if for some reasons I had to switch to another service provider had a mean of 1.37 (implying very low) this implying that most respondents were in disagreement with the point stated meaning that customers can easily switch to other telecom service providers.

I feel the staff of the telecom company believe in betterment of their customers was presented with a mean of 1.87 (Low) meaning that most responses were recorded for disagreeing with the statement. This implies that respondents don't believe in better service delivery from the respondents.

Telecom company staff is always willing to help me (2.45 High) meaning that moderately the respondents agreed with the notion of staff always being will to help. This could mean that Airtel in need to improve their care for customers.

My service provider consistently meets my expectations as responded to by an average of 2.30 mean (Low) meaning that the ai1tel provider does not constantly meet the expectations of the customers hence the need.

I am satisfied with the products/services from my service provider as a measure of customer satisfaction was recorded for 2.60 mean (high) implying that the respondents are satisfied with the products of the service provider.

My service provider emphasizes customer satisfaction as opposed to rules and procedures was recorded with 1.97 meaning low implying that to a small extent Airtel emphasize customer satisfaction according to the respondents.

21 My service provider has always responded to my needs was recorded with a mean of 3.00 ( high) the mean implies that airtel has to a large extent responded to the customer's needs. This implies that airtel has responded to most needs of customers.

The service provider and all its service centers are easily accessible had 2.60 (High implying that most respondents were recorded for accessing service centers of airtel whereas it was low response.

Considering everything am extremely satisfied with the service provider. This aspect presented had a mean of 2.10 (Low) implying that most respondent disagreed with the notion that they are being extremely satisfied presenting the loopholes.

The service provider employees make sure that problems do not rise in our business relationship had a mean of 3. IO indicating that airtel staff try to fix the problems for the customers hence improving customer satisfaction.

The average mean of 2.34 (Low) implies that the level of customer satisfaction at airtel is low given that the average mean is slightly above the average. The average mean generated from the respondents who were customer mean that airtel customer trends are low hence the need for focus on customer satisfaction if airtel perfonnance is to be intensified.

4.4 Relationship marketing strategies and customer satisfaction at airtel in Nakawa division In order to find the relationship between marketing strategies and customer satisfaction at airtel Nakawa division centers: Pearson's product moment C0!1"elation was used to test cmTelation between marketing strategies and customer satisfaction. The relationship was generated from a combination of market strategies and customer satisfaction. Table 4 Pearson's correlations (n=52)

Variable correlated R-value P-Value Interpretation Marketing strategies Vs 0.678** 0.013 Positive co11"elation Customer satisfaction

Source: Primary Data, 2014

22 Using Pearson correlation it was observed that marketing strategies are positively correlated with customer satisfaction (correlation .coefficient .678 p =0.0132. The r value in the table indicates a positive correlation between the two variables (r=.678). the sig. values indicate that the two variables market strategy and customer satisfaction are significantly correlated (the significance is less than 0.05, which is the maximum significance . The assumptions of are confinned leading to the conclusion that marketing strategies are significantly correlated sig.= 0.0132 are significantly correlated at 0.05 level of significance.

23 CHAPTER FIVE

SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS

5.0 Introduction This chapter focused on the findings, conclusion and recommendation of the study that were presented in chapter four. Firstly, it presents the major finding as expressed in objectives and research question. Secondly, conclusions were drawn to the findings of the study and lastly, reconunendations were given, and areas for further research were made.

5.1 Summary of findings

The findings were based on the objectives of the study which included, establishing the level of market strategies, level of customer satisfaction and relationship between marketing strategies and customer satisfaction at in airtel.

The average mean on the level of marketing strategies used at ai1tel presented by an average mean of 2.78 implying high means that the level of marketing strategies at airtel is good. It is possible to deduct those employees at ai1tel target to improve operations of the company. Whereas the responses imply the prevalence of marketing strategies, inefficiencies in some aspects occur occasioning the fact that there is need for redress.

On the level of customer satisfaction at ailtel, the average mean of 2.34 (Low) implies the prevalence of low level of customer satisfaction at airtel given that the average mean is slightly above the average. The average mean generated from the respondents who were customers mean that airtel customer trends are low hence the need for focus on customer satisfaction if ai1tel performance is to be intensified.

Using Pearson correlation of Marketing strategies and customer satisfaction for the single tailed test presented a significance level of 0.013.The r-value indicated that the two variables market strategy and customer satisfaction were positively significantly correlated (r =0.682: P-value 0.013.

24 5.2 Conclusions

The study was set to investigate the marketing strategies and their influence on customer satisfaction in Small and medium enterprises (SMEs) with specific to airtel centers located in Nakawa division. The study based on three research objectives which included establishing the marketing strategies adopted by airtel Uganda, examining the level of customer satisfaction and finally establishing the relationship between marketing strategies and customer satisfaction. The study findings were that the average mean on the level of marketing strategies used at airtel presented by an average mean of 2.785 implying high means that the level of marketing strategies at airtel is good. It is possible to deduct those employees at ai1tel target to improve operations of the company. It was fmther found that average mean of 2.342 (Low) implies the prevalence of low level of customer satisfaction at aiitel given that the average mean is slightly above the average. The final a.rialysis presented a significance level cf 0.0132 indicating that the two variables market strategy and customer satisfaction are significantly correlated since the significance is less than 0.05.

5.3 Recommendations • Product Positioning, a common market strategy need to be used to create a unique position for a company and its brand in the marketplace, relative to competition. Product differentiation is another impo1tant element of this as company's typically position themselves based on distinct product features or as a low-cost or premium brand provider. • Management at airtel need to understand that company's image is based upon a customer's unique experience. And the customers' experience, in tum, drives his or her recommendations: both positive and negative. So, a company literally lives or dies based upon how well it treats customers. And that is as it should be. Your existing customers are among the most important assets of yom· business - they have already chosen you instead of your competitors. Keeping their customer costs far less than attracting new business, so it's worth taking steps to make sure that they are satisfied with the service they receive. In one way or another, this will boost the corporate image and customer satisfaction of your business.

25 • Management at the airtel needs to understand that excellent customer service is not just about satisfying customer needs but going the extra mile to exceed expectations. In highly competitive markets such as telecommunication, failure to provide service to a high standard can lead to reputational damage and loss of business. Therefore, there is need for consistency and quality of services offered. • There is need to notify present to old and new customers of airtel's continued commitment to helping with any service concerns by posting signs, drive-through areas and in on-hold phone messages. The signs can be as simple as a short slogan thanking the customer for their business and a telephone number for customer service assistance, the customers will be more amenable to coming to the company with their service concerns instead of switching to other customers, happy customers are usually loyal customers.

5.4 Areas for Further Research

The results presented in this report may not be conclusive and should be treated as being preliminary. Further analysis of the survey data marketing strategies and customer satisfaction needs to be done to validate these findings and provide greater confidence in explaining the relationship between the variables. Therefore based on these there is need for further study to be conducted on the following.

• Branding and customer satisfaction in telecommunication companies • Market segmentation and customer satisfaction in telecommunication companies

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29 APPENDIX I:

QUESTIONNAIRE FOR THE RESPONDENTS

Dear Respondent,

I am a student of Kampala International University conducting a study on the impact of marketing strategy and customer satisfaction in Airtel Telecommunication Company. A case stiff~)' of Nakmrn dil'ision. This research is a partial fulfillment for the award of a bachelor's degree of business administration.

I guarantee you 100% absolute confidentiality on the information that will be given this will purely be for academic pmposes.

SECTION A: Demographic Information

I. Gender

Male D

Female D

2. Which age bracket do you fall? 18-27 D 38-47 D

28- 37 D 48+ D 3. Highest level of education

Certificate D

Diploma D

Degree D

Post-Graduate D

30 Others Specify ______

4. What is your Designation?

5. For how long have you been part of Airtel Company?

1 year & below D

2-4 Years D

5-7 years D

8-10 years D

11 & above D

31 PART B: Marketing strategies adopted by Airtel Uganda

This objective of the study seeks to ascertain the marketing strategies adopted by Airtel Uganda on the scale from 1 to 4. Therefore, the following items/statements/questions are intended to ascertain your degree of agreement and so, carefully read and tick the appropriate number that indicates how much you agree or disagree with each statement. Scale: 1 = Strongly Disagree 2= Disagree 3 =Agree 4= Strongly Agree. NB: There is no right or wrong answers. Please circle the most appropriate number.

Item 1 2 3 4

1 Airtel employ target marketing strategy 2 We conduct a market mix analysis to strategies for customers

3 We use social marketing strategy in our marketing 4 There is consumer oriented market research 5 We conduct market segmentation in identifying consumer needs

PART C: Level of customer satisfaction in airtel Uganda

This objective of the study seeks to ascertain the level of customer satisfaction of airtel Uganda on the scale from 1 to 4. Therefore, the following items/statements/questions are intended to ascertain your degree of agreement and so, carefully read and tick the appropriate number that indicates how much you agree or disagree with each statement. Scale: 1 = Strongly Disagree 2= Disagree 3 = Agree 4 = Strongly Agree. NB: There is no right or wrong answers. Please circle the most appropriate number.

lfellll 1 2 3 4

1 I would feel unhappy if for some reasons I had to switch to another service provider 2 I feel the staff of the telecom company believe in betterment of their customers

3 I want to remain a customer of this telecom company because I genuinely

32 enjoy my relationship with them 4 Telecom company staff are always willing to help me 5 My service provider consistently meets my expectations. 6 I am satisfied with the products/services from my service provider. 7 My service provider emphasizes customer satisfaction as opposed to rules and procedures 8 My service provider has always responded to my needs 9 The service provider and all its service centres are easily accessible IO Considering everything am extremely satisfied with the service provider 11 The service provider employees make sure that problems do not rise in our business relationship

33 APPENDIX:B

RESEARCH BUDGET

No Item Qty Unit cost Total cost

I Study analysis 100,000

2 Printing 700 pages 200 140,000

3 Binding 4 copies 20,000 80,000

4 Data collection 50,000

5 Meals 10 5,000 50,000

6 Miscellaneous 130,000

Grand total 550,000

34 APPENDIX: C

RESEARCH TIME FRAME

TIME (Months)

ACTIVITIES Early April Mid April May Early June

2014 2014 2014 2014

Study analysis

Proposal design

Proposal submission

Cotlection of data

Data analysis

Final report

35