Master of Business Administration: Factors contributing to poor quality marketing in Malawi-a case study of TNM mobile company.

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, do 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 .................................................................................................................................. 1
Introduction .................................................................................................................................... 1
1.1

Background to the Problem......................................................................................... 1

1.1.1 TNM and Airtel in Malawi. .......................................................................................... 6
1.2

Problem Statement ....................................................................................................... 7

1.3

Aim of the Study ............................................................................................................ 8

1.4

Objectives ...................................................................................................................... 8

1.5

Research Questions ..................................................................................................... 9

1.6

Significance of the Study ............................................................................................. 9

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 6 ..................................................................................................................................... 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 Conclusion....................................................................................................................... 105
6.7 Areas Requiring Further Research.............................................................................. 106
Bibliography ............................................................................................................................... 107
ix


Annexures .................................................................................................................................. 122
Annex 1 ...................................................................................................................................... 122
Consent Email from TNM .................................................................................................... 122

Annex 2 ...................................................................................................................................... 123
Consent Form (English) ....................................................................................................... 123
Annex 3 ...................................................................................................................................... 125
Key Informant Check-list ..................................................................................................... 125
Annex 4 ...................................................................................................................................... 130
Summary of Interview Schedules ....................................................................................... 130

x


List of Acronyms and Abbreviations

ROI-Return on Investment
TNM- Telekom Network Malawi
SPSS-Statistical Package for Social Scientists
Airtel-A mobile company operating in Africa, Middle East and Asia and rebranded from Zain.
CRM-Customer Relationship Management
MANCOSA-Management College of Southern Africa
RM-Relationship Marketing
4 Ps-These are marketing mixes which include; Promotion, place, product and
price
SCA-Sustainable Competitive Advantage
KSFs-Key Success Factors
SERVQUAL-Service Quality
Zain-The name of one of Malawi mobile company before rebranding to Airtel.
Celtel-Airtel Company‟s name before rebranding to Zain
TQM-Total Quality Management
TQMk-Total Quality Marketing
SS-Sample size

xi


List of Tables
Table 1: Determining Minimum Returned Sample Size for a Given Population Size for
Continuous and Categorical Data. ........................................................................................... 36
Table 2: The quality of Marketing in Malawi. ......................................................................... 48
Table 3: Quality of marketing at TNM .................................................................................. 50
Table 4: Correlation between Quality in Malawi and TNM ................................................... 52
Table 5: Comparison of quality of marketing in Malawi and at TNM ........................... 52
Table 6: Chi-Square Tests....................................................................................................... 52
Table 7: Symmetric Measures................................................................................................ 53
Table 8: Symmetric Measures................................................................................................ 54
Table 9: Factors leading to poor quality marketing in Malawi .............................................. 55
Table 10: Factors Contributing to Poor Quality Marketing at TNM ..................................... 56
Table 11: Statistics .................................................................................................................... 59
Table 12: Statistics ................................................................................................................... 60
Table 13: Relationship between poor quality marketing and ROI and Effects on TNM .. 62
Table 14: Chi-Square Tests ................................................................................................... 67
Table 155: Symmetric Measures ........................................................................................... 67
Table 166: Effects of poor quality marketing ROI............................................................. 68
Table 17: Effects of poor quality marketing and ROI....................................................... 69
Table 18: Impact on TNM Market Share .............................................................................. 71
Table 19: Impact on TNM Market share.................................................................................. 72
Table 20: Statistics ................................................................................................................... 74
Table 21: Challenges Facing TNM .......................................................................................... 75
Table 22: Complementary Challenges .................................................................................... 77
Table 23: Overcoming Challenges........................................................................................ 79
Table 24: Executing Quality at TNM ..................................................................................... 82
xii

Table 25: Strategies to increase ROI.................................................................................... 84
Table 26: TNM Financial highlights for the Year ending June 31st 2010. .......................... 91
Table 27: Company Performance Trading on Malawi stock Exchange ............................. 92
Table 28: Declared dividends for years 2008 to 2010. ......................................................... 93
Table 29: Traded Stocks by Volume and Value .................................................................... 94
Table 30: Malawi companies trading Statistics (Jan-March 2011). .................................... 95
Table 31: A low–cost competitor optimizes its value chain across multiple dimensions. 97

xiii


List of Figures

Figure 1: Measure of market performance ............................................................................. 13
Figure 2: TQMk-A symbiosis ..................................................................................................... 18
Figure 3: Customer focused exchange ................................................................................... 19
Figure 4: Graph showing the quality of marketing in Malawi. .............................................. 48
Figure 5: Pie chart showing the quality of marketing at TNM ............................................. 50
Figure 6: Bar Chart ..................................................................................................................... 54
Figure 7: Chart showing Factors Contributing to Poor Quality Marketing at TNM ........... 58
Figure 8: Bar Chart ..................................................................................................................... 60
Figure 9: Poor Quality marketing, ROI and effects on TNM ................................................ 61
Figure 10: Poor Quality Marketing and ROI ........................................................................... 70
Figure 11: Bar Chart ................................................................................................................... 73
Figure 12: Bar chart showing challenges at TNM.................................................................. 76
Figure 13: Complementary challenges.................................................................................... 78
Figure 14: Overcoming Challenges at TNM ........................................................................... 81
Figure 15: Quality Assurance at TNM ..................................................................................... 83

Figure 16: Strategies to increase ROI ..................................................................................... 84
Figure 17: Promotional Tunes

Figure 18: Promotional Messaging ................................. 90

xiv


Chapter One

Introduction

Many companies in developing countries face gargantuan challenges in
marketing their products and services compared to those located in developed
economies (Naresh, Malhotra, Francis, Ulgado, Agarwal, Imad, and Baalbaki,
1994:5-15). Malawian companies are no exception as they encounter problems
of reduced market shares, and low return on investment (ROI). One of the major
challenges is the failure to develop proper marketing strategies and adopt
appropriate and high quality marketing tools aimed at enticing or convincing a
large pool of new customers, retaining existing ones, commanding large market
shares and increase profitability or return on investment. In order to execute
good strategies of improving the quality of marketing there was need to explore
and understand the factors that lead companies to low profitability and reduced
market share. The study therefore investigated factors that contributed to poor
quality of marketing resulting into unanticipated poor returns on investment.

1.1

Background to the Problem

Many businesses throughout the world experience enormous challenges in
breaking through markets, satisfying customers' and commanding large market
shares for their business ventures. In achieving success, companies need to
execute strategies that make them winners against their competitors in order to
command large market shares and increased ROI. Gray, Matear, Boshoff and
Matheson (1998; 884) underscore that managers have been facing challenges
on how to implement marketing strategies because of failure to establish a
generalisable model of market orientation and also the lack of a parsimonious
measure

of market orientation

which managers can use to

pinpoint

organizational short-comings. This suggests that companies face strategic and
1


operational difficulties in developing and translating marketing concepts because
of lack of ability (requisite knowledge, skills and systems) or opportunity. Gray et
al. (1998:884) and LeClair (2000: 194) underline that although marketing
decision makers bring experience and knowledge to the development and
implementation of marketing strategy, there are always gaps in information that
can lead to lapses in judgment, unintended consequences, and strategic errors.
This refers to lack of sensitivity inside the company by management to respond
to the needs of customers using appropriate marketing tools. Menon and
Varadarajan (1992), as cited in LeClair (2000: 194) note that when an
organization is experiencing environmental instability, marketing managers will

need more knowledge-enhancing information and demonstrate a greater
utilization of that information.

Liu (1995), cited in Asikhia (2010:197) explicate that sensitivity pertains to the
fact that companies must be able to detect underlying customer concerns and
that core customer problems lie outside management purview until a shock event
occurs to highlight the inadequacy of existing approaches and, as a
consequence, management features expose the extent to which the company is
able to scan and interpret environmental signals. This indicates that customer
orientation is central to the origin of an effective customer focused marketing
strategy. Nwankwo (1995), as cited in Asikhia (2010:197) proposes a two state
scheme to categorize levels of sensitivity namely pro-active and reactive
sensitivity. Asikhia (2010:197) explains that proactive sensitivity arises from a
genuine desire to integrate customer interests into the decision mechanisms of
the company. Asikhia (2010:197) suggest ways in which organization can
demonstrate such a level of customer concerns and these include:


Emphasizing customer expectations and devising actionable programs for
meeting the expectations of each category of stakeholders;



Adopting an anticipative and preventive approach in formulating customer
programs;
2




Viewing

all

customers,

as

marketing

opportunities

not

market

opportunities;


Developing customer strategy based on perceptive marketing research;



Developing power downward, especially to front-line staffs that deal with
customers at critical moments; and



In fusing organizational members with the vitality, enthusiasm and spirit to
deliver true excellence in customer care.

He further adds that reactive sensitivity involves a more mechanical approach to
customer-orientation management. He summarizes that reactive sensitivity is
characterized by:


Passive, often confused or misguided attention to customer orientation;



Defensive attitudes in responding to customer complaints; and



Coerced management attention: that is management usually only acts for
the customer when forced to act.

Neira (2010: 48) argues that customers believe they are “just as good as the next
person” and usually compare themselves to other similar customers. Neira
(2010:49) further maintain that academic evidence has shown that consumers
react negatively when they are treated less well than some other group and that
there is widespread agreement on the relevance of maintaining a perception of
equity among different customers. He further cites that prior research on equity
has established that a consumer‟s utility for an option depends not just on its
absolute characteristics but also on whether the customer is getting a better or
worse deal than some other group of customers, so that the customer is repelled
when the provider offers another group of customers a better deal.

Similarly, Parasuraman, Zeithaml and Berry (1985), cited in Sargeant and Asif
(1998: 67) identified four gaps, which were responsible for the difference

between expected and perceived quality namely:

3




Not knowing what customers expect-the difference between
consumer needs and management‟s perceptions of these needs;



Not selecting the right service design-the difference between
management perceptions of customer needs and the service
standards set;



Not delivering to service standards -the difference between service
specifications and actual service delivery; and



Not matching performance to promises-the difference between the
standards conveyed in external communications and the actual
delivered service.

Denison and McDonald (1995: 58) summarize some of the business challenges
leading to poor levels of marketing, leading to reduced market share and reduced
return on investment as:



Garda (1988) and Lazer (1993), in Denison and McDonald (1995: 58)
argue that buyers and suppliers of products and services are becoming
more global in their approach to business. Hence, the challenge is
restructuring domestic marketing operations to compete internationally
in larger, disparate markets;



Customer expertise, sophistication, and power-Customers, generally,
are becoming more demanding as their expectations of quality,
reliability, and durability grow constantly. The marketing challenge is
twofold: first, of exploring ways to become closer to the consumer;
second, of developing a means and experience base to cope with the
complexity presented by multiple market channels;



Lack of market growth. In many sectors, market maturity has been
reached, characterized by overcapacity, and exacerbated by current

4


recessionary forces.. It also presents a new challenge to marketing,
namely, how to create and stimulate new-to-the-marketplace demand,
rather than being satisfied simply by competing purely on a marketshare basis. McKenna (1991) as cited in Denison and Macdonald
(1995:59) caution that the latter approach simply “turns marketing into
an expensive fight over crumbs, rather than a smart effort to own the

whole pie”;



Process thinking. A direct outgrowth of the technology explosion in
information handling and communications has been the switch out of a
single-product approach to business to systems thinking;



Time-based competition. Time horizons continue to become more
compressed and the pace of change is still accelerating. The need to
hit the market early and recover the investment fast is very apparent.
In this context, price setting becomes vital. These challenges present
industry with the need to restructure and re-evaluate the way in which
it undertakes marketing, in a functional sense, as well as to reexamine
the ways in which marketing can be introduced and accepted as a
business philosophy; and



Changing the marketing mindset-some recent empirical studies have
contributed by identifying the criteria associated with the better
performers over the last decade.

However, Doyle (1992), cited in Denison and Macdonald (1995: 60) observe that
many of the leading companies of an age do not manage to continue there for
very long. One of the reasons cited was that if they remained market leaders,
they have stake in maintaining the status quo and become guilty of not moving
forward, only to be overtaken by competition.

5


1.1.1 TNM and Airtel in Malawi.

There are several telecommunications operators in Malawi but this study
concentrated on TNM in comparison to Airtel. Anonymous 1 (2010: 2) and
Anonymous

2(2010:3),

highlight

that

Telekom

Networks

Limited,

was

incorporated as a private limited company on 24 March 1995 and the name of
the company was subsequently changed to Telekom Networks (Malawi) Limited.
On the other hand, Airtel Malawi Limited was incorporated on 3 September 1998
as Celtel and launched operations in 1999. On 1st August 2008, Celtel Malawi
joined other operations across 14 countries in Africa and rebranded to Zain
Malawi. Subsequently, in September 2010, it rebranded to Airtel. However, as at
31st August 2008, the number of subscribers for TNM stood at 461,814 and

695,224 in 2009 (TNM, 2009:3) compared to 964,000 for Airtel (Anonymous 1,
2010: 5). Ironically, Zain Malawi was the second cellular phone company to
grace the Malawi market but it soon overtook the competitor to become the
market leader, a position it still currently holds. A testimony of how strong the
brand is in the Malawian Market was how Zain Malawi managed to reclaim its top
position after a fire disaster incapacitated the network for a period of two weeks
in March 2007. A few months later in August 2007, Zain Malawi's customer base
increased astronomically from 376,000 subscribers to 500,000, representing a
market share of 68%, emerging once again as the Market Leader. Airtel Malawi
made history once more in July 2008, by attaining a subscriber base of over 1
Million Customers, a first in the Malawi Telecommunications Industry
(Anonymous 2, 2010: 4) the number which TNM managed to attain in 2010 (1,
140, 000) with a market share of 32%(TNM, 2010:7) when Airtel had already
attained 1, 958, 000 subscribers in the same year. In 2008, the number of TNM
subscribers reduced drastically from 540 510 to 461 814(TNM News, 2009:1)
representing a 14.5% loss. The major constraints attributed to slow growth of
TNM was poor marketing strategies including poor service delivery. Fortunately,
the government of Malawi through its economic liberalization policy created a

6


conducive environment for telecommunications to compete freely as it plays no
role in the competitive market, beyond that of neutral arbiter.
Government

removed

telecommunications

import

equipment

duties
in

on
May

mobile
2008.

phone

handsets

However,

and

Government

subsequently introduced an excise tax of 10% on all airtime usage in June 2008
and value added tax was reduced from 17.5% to 16.5% (Anonymous 1, 2010:
10).

1.2

Problem Statement

TNM strives to remain competitive on the market by retaining a larger market
share in order to increase return on investment. However, it fails to achieve that
by constantly experiencing reduced, constant or a minute increase in market
share and profitability to shareholders as it “posted a net loss in 2010”(Malawi
Voice, 2010:2). On the other hand, Mansfield (2010: 2) reported that Airtel
registered 1.65million customers by June 2010 with 66% market share, beating
TNM which registered an increase in the number of customers from “517000 to
828000” representing an increase of 60% during the year (Malawi Voice 2010;4).
Despite the tight race, Airtel remained a market leader with a market share of
72% against 32% for TNM (Anonymous 3, 2009:2). Anonymous 2(2010:4)
highlight that Zain Malawi (rebranded to Airtel) was the second cellular phone
company to grace the Malawi market but it soon overtook the competitor to
become the market leader, a position it still currently holds. A testimony of how
strong the brand is in the Malawian Market was how Airtel Malawi managed to
reclaim its top position after a fire disaster incapacitated the network for a period
of two weeks in March 2007. A few months later in August 2007, Airtel Malawi's
customer base increased astronomically from 376,000 subscribers to 500,000,
representing a market share of 68%, emerging once again as the Market Leader.
Airtel Malawi made history once more in July 2008, by attaining a subscriber
7


base of over one Million Customers, a first in the Malawi Telecommunications
Industry.
However, poor retention and loyalty of customers through execution of poor
quality marketing has been identified as one of the problems that contribute to
commanding a smaller market share and reduced profitability for TNM. The
purpose of this study is therefore to investigate factors leading to poor quality
marketing, reduced, constant or minute increases in market share and low return

on investment in order to come up with practical recommendations for increased
market share and return on investment.

1.3

Aim of the Study

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 in order to come up with practical 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 ROI;



To examine factors leading to customer dissatisfaction with companies;
and



To make recommendations to management to improve the effectiveness
of marketing at TNM.

8


1.5

Research Questions


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?



What strategies can TNM execute to overcome challenges leading to poor
quality marketing?

1.6

Significance of the Study

This research emanated because of the rapid pace at which Airtel Malawi
(established in 1999) grew and increased the number of customers on the
market despite its late establishment on the market as compared to TNM, which
was established four years earlier.
It is envisaged that this study will make major contributions to the theoretical
models and framework for marketing strategies especially in establishing
challenges and linkages in the areas of customer retention, loyalty, increased
market share, and return on investment.
Empirically there was worthiness in examining factors that accounted for poor
quality marketing and its application to customer retention, loyalty, increased
market share and reduced returns on company‟s investment. The study therefore
provided documentation of factors responsible for poor marketing strategy
execution and made practical recommendations to companies especially TNM
with a view of influencing corporate policies, planning and implementation.

9


1.7

Conclusion

This chapter highlighted a summary of why companies remain either competitive
or are outpaced through the execution of poor quality of marketing resulting in
low market share, and reduced returns on investment. The problem statement,
study aim, objectives, research questions and the significance of the study have
been stated. The next chapter focuses on review of the existing literature.

10


Chapter Two

Literature Review

2.1

Introduction

This section presents a review of the existing literature relevant to this study as
follows: definition of marketing; marketing and quality, relationship marketing;
customer relationship management, marketing research and Economic theories
on increasing return on investment.

2.2

Definition of Marketing

Anonymous 7(2011: 5) uses the Chartered Institute of Marketing definition as
“the process that identifies, anticipates and satisfies customer requirements
profitably”; Kotler (1999:10) as “a nodal and managerial process by which
individuals and groups obtain what they need and want through creating and
exchanging products and value with others''; and Drucker (1985), cited in
Anonymous 7 (2011; 12) as; “encompassing the entire business from the point of
view of the final result, that is, from the customer's point of view”. Ries and Trout
(1986) cited in Brooksbank (1994: 14) sum it as a “totally intellectual war in which
you try to outmaneuver your competitors on a battleground that no one has ever
seen.”

All the above definitions underscore the need to emphasize on customers‟ needs
and wants, value and satisfaction; exchange, transactions and relationships; and
markets. Anonymous 7(2011: 5), Kotler(1999: 10), Anonymous 7(2011:12), Ries
and Trout(1986) definitions point to the need for a continuous research spirit,
11