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Impact of Digital Marketing Strategies on Performance of Telecommunication

Companies in Tanzania

Article in Turk Turizm Arastirmalari Dergisi · May 2022

DOI: 10.26677/TR1010.2022.997

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 Journal of Business School
2022, 5(1): 26-34
DOI: 10.26677/TR1010.2022.997
Journal Homepage: https://www.journalbusiness.org

Impact of Digital Marketing Strategies on Performance of

Telecommunication Companies in Tanzania

Aron Msonga
Student Mzumbe University, [email protected]

Omary Swallehe
Senior Lecturer-Mzumbe University Dar Es Salaam Campus College, [email protected]

Abstract
The paper assessed the impact of digital marketing strategies on performance of
telecommunication companies. The study was guided by three predictors tested on
telecommunication companies’ marketing performance as the dependent variable. The predictors
include pay per click marketing, e-mail marketing and social media marketing. Explanatory
design was used since causal relationship testing was conducted based on the relationship testing
between study variables. The information were gathered from Tanzania Telecommunication
Corporation (TTCL) through the employees and customers from the sample of 80 respondents
using structured questionnaire. The collected facts from the field were computed in SPSS data
sheet version 24.0 to generate statistical measurements to describe the results. Findings indicated
that all three predicting variables tested on the dependent variable including pay per click
marketing, e-mail marketing and social media marketing were generated positive with
significant effect statically on the marketing performance of telecommunication companies. The
implication of the results is that performance of telecommunication companies through digital
marketing is influenced using pay per click marketing, e-mail marketing and social media.
Keywords: Digital Marketing, Telecommunication Companies, Performance, Marketing, E-mail
and Social Media

1. Introduction
The transformation effect of digital marketing keeps on driving telecommunications services
essential fundamental and functional decisions. These patterns oversee how telecom associations
endeavor to adjust their framework speculation and take advantage of data traffic, boost recently
required capacities, justify their product and provider contributions, further improving the
customer revel in and boost their useful resource portfolios and recreation plans (Friedrich, Hall,
and Darwiche, 2015).
Digital advertising and marketing of telecommunication carrier is a project experienced by means
of Tanzania Telecommunications Corporation whereby there's a great deal of competition and
all affiliation to assure effective and proficient techniques to carter for market share and

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 Journal of Business School, vol.5, issue.1, pp.26-34

competitive advantage (Ongache, 2015). The usage of websites in digital advertising create more
income which is essential for the performance of the entity(s). Organizations is making tries to
fabricate mindfulness on advancement to help in intensifying advantages and procuring
customer share for market improvement and endurance.
Simultaneously for web based promoting progression to be effective to the extent usage of sites,
one ought to achieve a high hit and change rate, which is clearly affected by purchaser page
clicking conduct, content, web index improvement and website page management (Murphy,
Hofacker and Racine, 2006). Application of digital marketing additionally makes it hard for some
clients to easily get to the association's service because of different components which range
between individual, social, monetary, environment, culture and information factors (Ndung'u,
Nyambura, Waema and Mitullah, 2012).
This can make it hard for the association to guarantee high customer share. Government
guideline likewise influences media transmission organizations. The Government controls the
activities of telecommunication organizations and aid detailing of laws that will administer the
organizations through the Tanzania Communications Regulatory Authority (TCRA). Part of the
guidelines do influence telecommunication organizations, for example, permitting of all
frameworks and administrations, guideline of nations recurrence range and numbering assets,
endorsement of communication equipment and guideline of correspondence duties (TCRA,
2019).
It is from this foundation where by the current examination is led to survey the effect of digital
marketing strategies on performance of telecommunication organizations in Tanzania. Many
Telecommunication Companies in Tanzania have done their investment in local advertising
strategies which are believed to be fundamentals for the performance of organizations, digital
marketing strategies has been not thought as one among the strategies that can contribute to the
organization’s performance. With this reason, the study aims to investigate the impacts of digital
marketing strategies on organizational performance of telecommunication industry.

2. Literature Survey
The study is guided with innovations diffusion theory developed with Everett Rodgers in 1962
asserting that improvement is streams down to the social framework individuals through certain
channels after some time (Jen & Annette (2002). According to Dearing, 2009 said that
advancement appropriation happens when an association changes into a real practice. The
acceptance rate is the speed at which individuals having a place with a specific social game plan
acquire up and accept a modernization. It is shown up at as a capacity of the timeframe needed
for a specific extent of individuals to uphold an advancement as recommended adopter class the
individual has a place with.
At a point in the reception bend, the development will undoubtedly arrive at the minimum
amount. This diffusion of advancements model guides organization in understanding purchaser
selection and commitment with new contributions over the long run. The model is particularly
valuable to organizations when launching new service. Technological adoption happens when
an association changes an idea into a real practice (Dearing, 2009). According to Rogers, 2004
reveals that successful firms take on innovations for varied reasons including requirement,
competition, and the exceptionality of an idea.
Diffusion of Innovations Theory (DIT) clarifies the interaction by which developments are
embraced by clients. As indicated by Rogers (1995), diffusion is the process by which new ideas
are conveyed to individuals from a social framework throughout some stretch of time through
various channels. Schiffman and Kanuk (2010) place that developments don't generally have

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 Journal of Business School, vol.5, issue.1, pp.26-34

equivalent potential for purchaser acknowledgment; a few advancements are promptly

acknowledged; others take longer while yet still some are dismissed by and large accordingly get
no opportunity of reception.
Dispersion measure presents five attributes that assistance in shopper endorsement of
developments including relative benefit, similarity, intricacy, trialability and recognizability
(Rogers, 1995; Schiffman and Kanuk, 2010; Armstrong and Kotler, 2003). Relative benefit
identifies with how forthcoming clients feel a development is exceptional contrasted with
choices. Similarity identifies with how forthcoming purchasers perceive a development as
intelligible with their cravings, convictions and standards. Intricacy is the means by which a
development is hard to comprehend or utilize.
Trial ability identifies with how advancement can be tried in little pieces while discernibleness is
the ease with which an item's qualities and attributes can be seen, envisioned or communicated
to forthcoming shoppers. Adopter classes illustrated by the DIT give valuable structure equipped
for directing administration in understanding the reasonable pace of reception of the frameworks
and practices carried out by an association. Thusly, the dissemination interaction turns out to be
generally suitable in execution of systems that empower compelling monitoring of the
environment for competitiveness.
In that regard, still several studies have been conducted in the issue under inquiry including
Stelzner, (2012) conducted a study on viability of online media in introducing new items on the
market. Both primary and secondary strategies for information assortment were utilized to gather
the significant data of the examination. Discoveries from the examination uncovered that social
media platforms are used to give an identity about organizations and or companies and the
services or products they provide. The study further observed that this always happen after
joining the social media platforms such as Facebook. Furthermore, the study observed that social
media platforms can help to create relationship with individuals who may not in any case thought
about the items or administrations or what the organizations address in the wake of placing the
items in any online media stage devotees who can prescribe to others to like and consequently
points of interest of the item. The current study intends to discuss on examples on how a certain
social media platform can be used to marketing of the product in particular of the
telecommunication industry which was not discussed in the previous study and thus necessary
for the current study to fill a gap.
Stokes (2011) directed an examination on the pretended by the online media stages in presenting
new items on the market. Finding from the study revealed that for the organization to be made
alive to customers/client’s social media platforms played a great role. Furthermore, the study
observed that if the company need individuals to follow them, they need not exclusively to
discuss with regards to their most recent items news yet additionally imparting to them through
google or some times by searching a company profile or page in any of the online media stages
on which the organization is accessible. This investigation were discussed on the setting of inn
industry however, the current study intends to be discussed on the setting of media
telecommunication industry.
Watkins (2013) highlighted that products promotion through well-known beauty bloggers
reaches a larger base of customers and also it is aimed at the desired target audience.
Furthermore, the study found that customers who always following particular blogs are the
customers who are interested in the products and therefore the products can be marketed directly
to them. Finally, the study concluded that the introduction of social media platforms allows and
enable the customers to review the recommendations provided by other customers and thereafter
purchase directly the product from the sites of the products.

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 Journal of Business School, vol.5, issue.1, pp.26-34

Smith and Zook (2011) assessed the impact of online media stages marketing on the cosmetic
business. The investigation employed both primary and secondary strategies for information
assortment. Discoveries from the examination uncovered that between the customary strategies
and web-based media marketing stages, the web-based media stages have made promoting items
a lot simpler than utilizing conventional techniques for advertising. Besides, the examination
tracked down that web-based media assists with making mindfulness and draw in clients as far
as possible however a buy and help to change possibilities to clients. Further to that it was seen
that web-based media stages empower purchasers to peruse and give input on items carries
benefits to advertisers that were unrealistic before the happening to the web. At last, the
investigation presumed that items can be advanced diversely yet what is significant is the
criticism and remarks left by the clients. This investigation was led and talked about with regards
to restorative industry; be that as it may, the current examination is tried to examine with regards
to telecommunication industry.
Blasco et al (2016) conducted a study on the strategies utilized in business by organizations
through online media. Both primary and secondary method for information assortment were
utilized to gather the significant information of the examination. Discoveries from the
investigation revealed that in order to advertise merchandize, collect information and gather
information many organizations utilize the internet. Furthermore, the study found that the
internet allows organizations to sell items online productively and quickly. Finally, the study
observe that advertising on the internet give roads to promotion, branding of product as well as
brand loyalty.
Durmaz and Efendioglu, (2016) examined the methods utilized in business by organizations
through online media stages. Discoveries from the investigation saw that web-based media
promoting has become more productive as a technique utilized by organizations through online
media stages. Moreover, the examination found that marketing advertising is the most
productive methodology as technology advances and grant small business pioneers a chance to
advance the business while exploiting the social and emerging patterns. Finally, the study
observed that internet marketing promoting strategies has been utilized as a gain competitive
edge against rivals to draw in new business partners.
Jaska and Werenowska (2014) assessed brand engagement on social media stages on impacting
brand picture of monetary establishments and following of latest trends on the market. The
investigation utilized both primary and secondary strategies for information assortment.
Discoveries from the investigation uncovered that customer are as of now turning out to be fans
of brand via web-based media and utilizing online media stages as the primary source of data
about those brands. Furthermore, the study found that any brand via online media can expect
two arrangements of correspondences that impact the perception of financial institutions about
their brands on social media platforms. The current study intends to investigate the impacts of
digital marketing technique on organizational performance of telecommunication industry.
Celine (2012) conducted a study on how social media tools, contribute to marketing performance
and found that social media platforms are the vital tools on ensuring marketing performance. It
was further revealed by the study that comparing the traditional media platforms and the
modern social media platforms and modern media platforms play a greater role on retaining
customers. This is to the effect that the more the customer is exposed to the social media platforms
the more the customer becomes loyal to the product and or services. Furthermore, the study
revealed that social media platforms are the sources of making awareness to the people on all
issues related to products and services and thus to enable customers to make their purchasing
decisions. The study finally concluded that social media platforms influence the decisions of the
customers so as to purchase because always customers seek recommendations and opinions from

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other sources before make a decision. This is only possible through the source of various social
media platforms where information on various services and products are obtained. The current
study intends to discuss much and into details on how social media tools, contribute to marketing
performance.
3. Conceptual Framework
The conceptual framework clarifies the significant inquiries under the work in both graphically
and a narrative structure. It basically describes the variables of the study both the predictors and
the dependent ones with figure 1 illustrating the results.

Figure 1 Conceptual Framework Source: Researcher (2021)

The framework describes the study on the impact of digital marketing on the performance of
telecommunication companies in Tanzania. The study is guided by the assumption that
marketing performance in telecommunication companies in Tanzania through digital marketing
is impacted by several encounters. In that note, three predictors have been developed and stated
as follows.
H1: Pay per click marketing influence marketing performance in telecommunication companies
in Tanzania.
H2: E-mail marketing influence marketing performance in telecommunication companies in
Tanzania.
H3: Social media marketing influence marketing performance in telecommunication companies
in Tanzania.

4. Methodology
The study was conducted in Tanzania Telecommunications Corporation (TTCL) using causal
relationship testing between study variables. The study comprised of three predicting variables
namely pay per click marketing, e-mail marketing and social media marketing tested on the
marketing performance in telecommunication companies as the dependent variable. The study
was guided by the assumption that marketing performance in telecommunication companies in
Tanzania through digital marketing is impacted by several encounters. The study employed
primary data which were gathered from employees and customers in the selected entity using
structured questionnaires. The study collected facts from the sample of 8 respondents. The
collected results were computed in SPSS data sheet version 24.0 to generate statistical
measurements to present the findings. Multiple regression analysis was used to describe the
existing relationship between study variables. In that regard, the study was guided by the model
that;
Marketing Performance =β0+β1xi1+β2xi2+β3xi3+ϵ

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Whereas;
β0 = constant coefficient when other factor remain constant
β1, β2, β3 = slope coefficient of the regression when other factor remain constant
xi1 = Pay per click marketing
xi2 = E-mail marketing
xi3 = Social media marketing
ϵ = is the error term which accounts for other unobserved factor that may have an effect

5. Findings and Discussions

The findings are illustrated to show the contribution of each predicting variable to the dependent
variable. Hence, table 1 describes the findings.
Table 1 Multiple Regression

Model Unstandardized Standardized T Sig.

Coefficients Coefficients

B Std. Beta
Error

1 (Constant) 1.022 .283 3.607 .001

Pay per click .546 .129 .602 4.233 .000

Email marketing .123 .055 .072 3.107 .025

Social media marketing .181 .120 .183 3.684 .009

a. Dependent Variable: Marketing performance

Source: Field data 2021

The study indicate findings on multiple regression analysis which provide that all three
predicting variables tested on the dependent variable including pay per click marketing, e-mail
marketing and social media marketing were generated positive with significant effect statically
on the performance of telecommunication companies. The implication of the results is that
performance of telecommunication companies through digital marketing is influenced using pay
per click marketing, e-mail marketing and social media.
The findings are in line with Clark (2010) revealing that pay per click have been contributing on
marketing performance. The findings are further supported by Oyza and Edwin (2016) who also
argued that pay per click influence much on marketing performance. This is the reality because
the compositions within pay per click marketing constitute significant influence in the practical
sense with regard to the marketing performance in the organizations regardless of the sector
provided that the implementation corresponds the reality on the ground.
Apart from that, findings are also in line with Mayfield (2008) who argued that email marketing
contributes to marketing performance. The findings are further supported by Drury (2008) who
argued that email marketing influences much performance of marketing. Furthermore, social

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media the results correspond with Tremblay (2010) who argued that social media contributes to
marketing performance. The findings are further supported by Smith and Zook (2011) who also
argued that social media contributes to marketing performance.

6. Conclusion
It is certain that digital marketing is essential in facilitating marketing performance in
telecommunication companies in Tanzania. This is the case because operations in
telecommunication companies especially in the marketing practices comprise several digital
practices which requires efficiency based on the utilization of digital marketing. This is facilitated
by among other components being pay per click marketing, e-mail marketing and social media
marketing since as variables tested have been generated significant as they possess influence
towards marketing performance of the organizations.

7. Recommendations
With the outcome in that manner, the study recommend that in order to ensure proper marketing
performance Telecommunication industry, the government should focus more on enhancing the
use of pay per click advertising on marketing performance. This may include the introduction of
trainings and seminars on the use of pay per click advertising and marketing performance. Also,
it is recommended that Tanzania Telecommunication industry should focus much on email
marketing towards marketing performance. This should include investing much on improving
technology platforms that ensures marketing performance. Moreover, the study recommend that
the government should impose sanctions to the users who abuse the use of social media platforms
so as to ensure that the bank operate smoothly through the use of social media platforms in
marketing purposes to increase the market base of the Tanzania telecommunication industry.

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