CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

Changes in technology have reshaped the means and approach of doing business. This is the business mode, which swings the world of sharing thoughts and ideas as communication, which requires attention and feedback or responses. The ideology, coupled with the keen interest of today’s generation of youth with more interest in information sourcing and effective communication of ideas through the Internet. However, businesses are increasingly turning to digital marketing as a powerful lever for enhancing their performance (Binbasioglu & Turk, 2020). In this context, digital marketing has emerged as a critical tool for businesses to reach and engage their target audience, improve brand awareness, and drive sales revenue.

Digital marketing innovation has the potential to positively impact firm performance by allowing companies to reach wider audiences, enhance customer engagement, and gather valuable data for targeted advertising. By embracing new technologies, companies can increase brand awareness, drive sales, and improve customer experience (Jung & Shega, 2023). Digital marketing encompasses a multifaceted array of online strategies and tools designed to connect businesses with their target audiences in the digital realm. It encompasses various channels such as social media, search engines, email, content marketing, and paid advertising, allowing SMEs to craft tailored approaches that resonate with their specific clientele (Chaffey & Ellis, 2019). In an era where consumers are progressively migrating to the digital sphere for information, shopping, and social interaction, harnessing the potential of digital marketing is not merely an option; it is an imperative for SMEs seeking sustainable growth and competitiveness.

Digital marketing which was a relatively new practice in the early 2000s has become increasingly smart and sophisticated in recent years. Digital advertising platforms such as social media refer to websites and applications that allow users to create and share contents or participate in social networking. Digital marketing extends to non-internets channels that provide media such as radio, television, mobile phones. The extension to non-internet channels help to differentiate digital marketing from online marketing platforms in advertising products or services in the market or to target customers. Since the beginning of time Small and Medium Size Enterprises (SMEs) have been vital source of job and economic development worldwide according to Zheng et al. (2021). Small and medium size companies make 60 to 70 percent of employment in most countries. US for instance got her manufacturing employment produced by small and size enterprise between 1976 and 1986 70% of Sub-Saharan Africans rely on small firms for their existence.

The rise of digital application of technologies particularly in the area of internet has transformed every aspect of marketing in business. The digital usage has seen remarkable advancement to arrive at significant inference in business such as transmission of information, brand management, trade and product evolution .The outstanding progress of digital tools, hardware and marketing techniques lead to the substantial influence on business communication. Digital media and technologies are used to set up a linear linkage among business and customer to convey information digitally (Dahiya & Gayatri, 2018). Past 10 years it has been seen fast proliferation of digital media application between the people as clients. Since year 2010 there is fast expansion in user of internet stated as surpassing over 2 billion users and it anticipated to be twice. Consequently, the target groups are closed in by companies by using methods of digital marketing.it has stated that companies are paying 60 billion US $ for online advertisement to convey information towards potential customers by using digital marketing lately (Nuseir & Aljumah, 2020).

Through digital media, consumers can access information anytime and anyplace where they want. With the presence of digital media, consumers do not just rely on what the company says about their brand but also follow what media friends, associations and peers say. Digital marketing is a broad term that refers to various channels; mobile/wireless and digital, that is use to contribute to marketing activities aimed at achieving profit acquisition and customers’ retention (within a multi- channel by process and customer ‘life cycle’). Digital marketing, electronic marketing, and internet marketing are similar terms which refer to doing marketing online whether through websites, opt-in emails, interactive kiosk, interactive television and mobiles (Chaffey & Smith, 2018).

Digital transfiguration in companies is a continuous series of action, operation conducting to an end result to bring into existence something new or to make basic, fundamental changes in often to give a new orientation or to serve a new end to values, goals, practices, approach and operation of companies to satisfy the changing demands of markets and consumers. Digital technologies being combined into a cohesive whole in all fields of businesses can provide influential modifications of companies functioning which impact the growth of companies (Kotane, Snotina, & Hushko, 2019).

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

1.2 Statement of the Problem

In recent times, the use of electronic media to advertise items or services on the market with the main objective of attracting customers and allowing them connect with brands through digital media has become an important digital method. Innovative and imaginative advertising have become increasingly popular and include web-based advertising and opt-in e-mail newsletters, interactive kiosks and a lot more. Most fields of life such as education, health, agriculture, not forgetting business have all embraced digitalization. The marketing aspect of small companies are different to that of large corporations, therefore making the adoption of digital marketing to be a greater challenge for them (Lipiainen and Karjaluoto, 2013). In this digital age, businesses in Cameroon in general and Bamenda in particular have incorporated digital media in their day- to-day activities in order to boost sales or achieve better turnover. Social media platforms such as Whatsapp, Facebook, Instagram, help telecommunication companies in Bamenda for instance, use digital strategy to interact and exchange values with customers.

Past studies on the on the role of digital marketing on the performance of business enterprises focused on the 4Ps of marketing (Janet & Ngugi, 2014), ignoring the forms of marketing adopted by such enterprises. Other studies (Njau & Karugu, 2014; Njau & Njuga, 2015) focused on single industry or variables thus affecting the generalisability of the findings of such studies to other such MSMEs. Further, there has been limited research among the Cameroonian SMEs and more specifically within the rural context of Bamenda that has managed to address the effect of digital advertising on turnover in telecommunication companies. This study aimed to fill this missing knowledge gap by examining the effect of digital advertising on turnover in telecommunication companies in Bamenda.

1.3 Research Questions

1.3.1 Main Research Question

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

1.3.2 Specific Research Question

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

1.4. Research Objectives 

1.4.1 Main Research Objectives

To examine the effect of digital advertising on turnover in telecommunication companies in Bamenda

1.4.2. Specific Research Objectives

1. To analyze the effect of email marketing on turnover in telecommunication companies in Bamenda
2. To evaluate the influence of social media marketing on turnover in telecommunication companies in Bamenda
3. To assess the effect of website marketing on turnover in telecommunication companies in Bamenda

1.5. Research Hypotheses

  The study is guided by the following null hypotheses;

  H₀₁: Email marketing has no significant effect on turnover in telecommunication companies.

  H₀₂:   Social media marketing has no significant influence on turnover in telecommunication companies

  H₀₃: Website marketing has no significant effect on turnover in telecommunication