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The aim of the study was to investigate factors leading to poor quality marketing, reduced, constant or minute increases in market share and low return on investment for TNM in Malawi. The outputs of this study were significantly important as basic application models that would enhance existing theoretical models and strategic practices to improve the quality of marketing, increase market shares and profitability for companies to address challenges that contribute to poor or low quality marketing. To consult more MBA essays, please see at: Bộ Luận Văn Thạc Sĩ Quản Trị Kinh Doanh MBA
FACTORS CONTRIBUTING TO POOR QUALITY MARKETING IN MALAWI-A CASE STUDY OF TNM MOBILE COMPANY BY RICHMOND ELIJAH MKOPA MSOWOYA DISSERTATION SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION IN THE DEPARTMENT OF BUSINESS STUDIES MANAGEMENT COLLEGE OF SOUTHERN AFRICA (MANCOSA) SUPERVISOR: ALEX CHANZA 2010 i Declaration I, Richmond Elijah Mkopa Msowoya, hereby declare that this dissertation is a product of my own research work and all other sources of material used herein are duly acknowledged This work has not been submitted to any institution for an award of any academic degree …………………………………………… Richmond Elijah Mkopa Msowoya December 2010-:- Johannesburg, South Africa ii Dedication This dissertation is dedicated to God the almighty father, his son Jesus Christ and the Holy Spirit for making me what I am today iii Acknowledgements I recognize with great honor, the suitable and insightful comments given by my supervisor Alex Chanza, who made this report affluent and absolute Many thanks also go to Dr Adolf Lowies and Mr Indrasen Moodley who aptly guided me put the ideas together in the initial stages of this work Special thanks go to Dr Adolf Lowies and Tracey Naidu for their guidance and corrections during the final stage of dissertation writing In addition, I am thankful to the entire Department of Business Studies staff of Management College of Southern Africa I am sincerely indebted to the following for their support, encouragement and inputs, which facilitated this work: My wife Danily and daughter, Lusubilo for their support, perseverance and understanding my intermittent presence at home during study periods Let the Lord almighty father and the Holy Ghost be in their midst Sam Donald Mhango and Eliza Mhango for their unwavering support during my entire period of study May the good lord continue to enrich you with never ending blessings Research assistants, Isabel Chirambo, Hagira Gelo, Anthony Njima and Chisomo Maimba and all research participants for their understanding and co-operation God almighty, for his abundant mercies and grace and for elevating me to this level Shellie Texen Elijah Msowoya, my father and Judith Esnayi Nyalilino, my mother, for raising me up despite the hardships of raising children May the Lord almighty continue to give them strength and success each and every day iv Abstract In Malawi, TNM (a mobile telecommunication) company strived to remain competitive on the market with the first mover advantage by retaining a larger market share in order to increase return on investment However, it failed to achieve that by constantly experiencing reduced, constant, or minute increases in market share and profitability to shareholders The aim of the study was to investigate factors leading to poor quality marketing, reduced, constant or minute increases in market share and low return on investment for TNM in Malawi The outputs of this study were significantly important as basic application models that would enhance existing theoretical models and strategic practices to improve the quality of marketing, increase market shares and profitability for companies to address challenges that contribute to poor or low quality marketing This was a case study that adopted quantitative techniques and used interviews based on semi-structured questionnaires, and desk literature The population for the study was obtained from staff of TNM Malawi The findings revealed that there was a very strong correlation (35.7%, with a standard deviation of 1.2 and frequency of 81) between poor quality marketing and return on investment This suggested that poor quality marketing had significant negative impact on return on investment at TNM From empirical study results, it was recommended that that TNM needed to improve its technological innovations, marketing strategies, recruit talented pool of markers, improve on customer relationship management, continued its v investment efforts in infrastructure development The company needed to devise proactive strategies for external forces that were beyond its control vi Table of Contents Title Page ……………………………………………………………………………….i Declaration ii Dedication iii Acknowledgements iv Abstract v List of Acronyms and Abbreviations xi List of Tables xii List of Figures xiv Chapter One Introduction 1.1 Background to the Problem 1.1.1 TNM and Airtel in Malawi 1.2 Problem Statement 1.3 Aim of the Study 1.4 Objectives 1.5 Research Questions 1.6 Significance of the Study 1.7 Conclusion 10 Chapter Two 11 Literature Review 11 2.1 Introduction 11 2.2 Definition of Marketing 11 2.2.1 Achieving a Balance 16 2.3 Marketing and Quality 17 2.3.1 Service Quality (SERVQUAL) 20 2.4 Relationship Marketing (RM) 21 2.5 Customer Relationship Management (CRM) 22 2.6 Marketing and Research 24 2.6.1 Understanding Marketing Intelligence and Research 25 2.7 Economic Theories on Increasing Return on Investment 27 vii 2.8 Existing Gaps in Literature 28 2.9 Conclusion 29 Chapter Three 31 Research Methodology 31 Introduction 31 3.1 3.2 Research Aims and Philosophy 31 3.3 Research Approach or design 32 3.4 Study population 34 3.5 Sampling and sampling procedures 34 3.5.1 Sample size determination 34 3.5.2 Sampling criteria 39 3.5.3 Sampling design 39 3.5.4 Sample selection 40 3.6 Instruments for Data collection 41 3.6.1 Questionnaire design 41 3.6.2 Validity of instruments 41 3.6.3 Reliability of Instruments 42 3.6.4 Pre-testing of the data collection instruments 42 3.7 Data Collection 43 3.8 Data management and Analysis 43 3.8.1 Data Management 43 3.8.2 Data analysis 44 3.9 Ethical considerations 44 3.10 Dissemination of the study results 45 3.11 Limitation of the study 45 3.12 Conclusion 45 Chapter Four 47 Statement of Findings and Analysis of Data 47 4.1 Introduction 47 4.2 Sample Description: 47 4.3 Quality of Marketing 48 4.3.1 Quality of Marketing in Malawi 48 viii 4.3.2 Quality of Marketing at TNM 49 4.3.3 Correlation between Quality in Malawi and at TNM 52 4.3.4 Factors leading to poor quality marketing in Malawi 55 4.3.5 Factors Contributing to Poor Quality Marketing at TNM 56 4.4 Return on Investment 59 4.5 Impact of Poor Quality Marketing On Market Share 71 4.6 Challenges Facing TNM 74 4.7 Overcoming Challenges 79 4.8 Executing Quality Marketing at TNM 82 4.9 Strategies to increase ROI at TNM 84 4.10 Summary of Research Findings 85 4.11 Conclusion 86 Chapter Five 87 Discussion of Findings and Linking to Literature Review 87 5.1 Introduction 87 5.2 Quality of Marketing 87 5.2.1 Quality of Marketing in Malawi and at TNM 87 5.3 Factors Leading to Poor Quality marketing in Malawi and at TNM 88 5.4 Return on Investment and Market Share 90 5.6 Strategies to Increase ROI 95 5.7 Conclusion 98 Chapter 99 Conclusions and Recommendations 99 6.1 Introduction 99 6.2 Findings from the study 99 6.2.1 Findings from Literature Review 99 6.2.2 Findings from Primary Research 101 6.3 Conclusions 102 6.4 Recommendations 103 6.5 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Beverly Hills, CA: Sage Publishing 120 Zablah A., Bellenger D., and Johnston W.(2004) Customer Relationship Management (CRM) Implementation Gaps, Journal of Personal Selling and Sales Management, 24(1), pp 279-295 Zeithaml, V.A (1988), “Consumer perceptions of price, quality and value: a means-end model and synthesis of evidence”, Journal of Marketing, 52(3), pp 222 Zineldin M.(1999) Exploring the common ground of total relationship management (TRM) and total quality management (TQM) Management Decision, 37(9), pp 719-728, Available from: http://www.emerald-library.com, Accessed on [ March 23, 2011] 121 Annexures Annex Consent Email from TNM 122 Annex Consent Form (English) Welcome to the study! You have expressed an interest in participating in this study Before we start I would like you to know the following: Purpose of the Study: I am a student of Management College of Southern Africa (MANCOSA), completing my dissertation towards the award of a Master of Business Administration The purpose of the study is to identify factors contributing to poor quality marketing in Malawi Procedures: If you consent, you will be asked some questions about factors leading to poor quality marketing with a key focus on TNM and Airtel This will take about 20 minutes Risks and benefits: You may feel uncomfortable answering questions perceived to be personal; you are at liberty to decline to answer such questions without giving your reasons It has, however, to be noted that the information given would help in coming up with practical recommendations for increased market share and return on investment Confidentiality: All information given here will be kept confidential and only used for research purposes Your name will not appear in any report of the research Participation is voluntary: Participation is entirely voluntary and you have the choice to participate or withdraw at any time from the study without giving your reasons for doing so nor detriment to yourself nor affecting your job or any other relationship If you have any questions please not hesitate to contact the team leader as follows: 123 Richmond Msowoya, C/O D.Msowoya, First Merchant Bank, P/Bag 158, Mzuzu, Malawi Mobile: +265888869734/0991850718 E-mail:richmondmsowoya@gmail.com CONSENT STATEMENT: ………………………………… has explained to me the nature and procedures involved in this study above and I agree to participate voluntarily Signature of participant………………………….Date…………………………… Signature of Interviewer…………………………Date…………………………… 124 Annex Key Informant Check-list TNM Staff Members Socio-Demographic Information Name of Respondent: _ Sex: Male [ ] Female [ ] Date of Interview: _/ _/ Enumerator Name: _ Checked by/Name of Supervisor: Please Get Consent before You Start Filling In the Questionnaire 125 Hello, my name is I am currently conducting a research study on factors contributing to Poor Quality Marketing in Malawi However, the study has specific emphasis on TNM You have been randomly chosen to participate in this study The research study is a confidential exercise and your name will not be disclosed anywhere Please feel free to answer these questions Section A Quality Of Marketing Score Is the quality of marketing in Malawi good? (0=not at all 1=hardly 2=yes to a limited extent 3=yes to larger extent 4= yes as expected, 5=Excellent Is the quality of marketing at TNM good? (0=not at all 1=poor 2= Weak/Less than Satisfactory 3= Average/Satisfactory/Adequate 4= Good/More than Satisfactory, 5= Excellent If poor, what you think are factors leading to poor quality marketing in Malawi? If the quality of marketing at TNM is poor, what you think are contributing factors to poor quality marketing at TNM? What impact these factors have on TNM? 0=No Impact, 1=increased market share, 2=reduced market share, 3=Big Negative impact, 4=Big positive impact How you think can the quality of marketing be improved at TNM if appropriate? Section B Return On Investment Score 126 Is there any relationship between poor quality marketing and return on investment? 0=Not all, 1= weak relationship, 2= strong relationship, 3=Average Relationship, 4= Very strong relationship, 5= Excellent relationship Do you think TNM has been affected in one way or the other for executing poor quality marketing? 0=No, 1=To a little extent, 2= to a medium extent, 3= to an average extent, 4= strongly, 5= Highly What is the impact of executing poor quality marketing strategies? 0= No impact, 1= little impact, 2= partial impact, 3= normal impact, 4= to a major extent, 5= Very strong 10 What are the effects of poor quality marketing regarding return on investment? 0=no returns on investment, 1= little returns on investment, 2=significant return on investment, 3= poor returns on investment, 4= significantly reduced returns on investment, 5= highly reduced returns on investment 11 What other strategies you use to increase return on investment? 0= Infrastructure development, 1= Strategic Partnerships, 2= Market follower, 3= Low cost strategy, 4= Promotional Strategies, 5= Product Differentiation, 6= Enhanced Customer Relationship management Section C Challenges Score 12 What challenges does the company face in executing high quality marketing strategies? 0=none, 1= Lack of Economy of Scale, 2= Managing Competition, 3= Human Resources, 4=skills, 5=Government Bureacracy 127 13 How you think you can overcome those challenges? 0= Improve network coverage and quality, 1= Invest in Economy of Scale, 2= Invest in Research and Development, 3= Improve creativity and Innovation, 4= Adopt Product differentiation Strategy, 5= Recruit talented employees, 6= Improve on Customer Relationship Management Section D Strategies Score 14 How you think the current strategies be modified to focus towards high quality marketing? 0=Inclusion of all departments in marketing, 1= Use innovative promotional strategies, 2= Improve relationship management, 3= Improve network quality and coverage, 4= Introduce employee motivation schemes, 5= Employee empowerment, 6= Use automated and customised charges according to locations, 7= Invest in Research and development 15 List any factors hindering the execution of those strategies? 0= Financial Resources, 1= Intermittent Power interruptions, 2= High tariffs for imported products, 3= Limited pool of talented staff, 4= Limited Innovation, 5= Inadequate investment in Research and Development Section E Quality Assurance Score 16 Do you practice Marketing Quality Management (MQM)? (0=Yes, 1=not at all 2=hardly 3=yes to a limited extent 4=yes to larger extent 5= yes as expected 17 Do you practice Total Quality Management (TQM)? (1=not at all 2=where appropriate 3=sometimes 4=often times 5=Always 18 How you ensure that quality is executed in both products and service provision? 128 0=Use of six sigma, 1=Employee Empowerment, 2=Use of benchmarks, 3=Adoption of Just in Time (JIT) Approach, 4=Use of Pareto charts, 5=Not sure, 6=Use of quality control charts and diagrams 129 Annex Summary of Interview Schedules Transcript Type Date Time Location 9:00-15:00 Mzuzu 8:00-12:00 Karonga 13:00-16:30 Lilongwe 8:00-12:00 Dedza 14:00-15:30 Salima Tuesday March 1, 2011 9:00-12:00 Blantyre Key Informant Interviews Monday March 21, 2011 9:30-14:30 Zomba Key Informant Interviews Monday February 14, 2011 and FGDs Key Informant Interviews Thursday February 17, 2011 Key Informant Interviews Monday February 21, 2011 and FGDs Key Informant Interviews Wednesday February 23, 2011 Key Informant Interviews Monday February 28, 2011 and FGDs Key Informant Interviews and FGDs Key Informant Interviews Thursday March 24, 2011 11:20-15:30 Mangochi Key Informant Interviews Tuesday March 29, 2011 13:00-16:00 Machinga 130 View publication stats ... What are the factors leading to poor quality marketing in Malawi? What are the factors leading to poor quality marketing at TNM? What are the effects of poor quality marketing on ROI? ... Marketing at TNM 49 4.3.3 Correlation between Quality in Malawi and at TNM 52 4.3.4 Factors leading to poor quality marketing in Malawi 55 4.3.5 Factors Contributing to Poor Quality. .. recommendations for increased market share and return on investment 1.4 Objectives To identify factors contributing to poor quality marketing at TNM; To determine the effects of poor quality marketing on