EFFECTS OF IT IN MARKETING OF COMMUNICATION SERVICE (CASE: SAFARICOM KENYA LTD)

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ABSTRACT

The use of information technology on marketing of communication services is a major prob-lem faced by most communication companies. Many organizations are still striving in integrat-ing marketing functions with information technology, hindering effective marketing of com-munication services. The main purpose of this study was therefore to determine the effects of information technology on marketing of communication services with a specific reference, Safaricom Limited. The study narrowed its research undertaking on the major effects such as promotion, product development, distribution, price and competition.


Data was obtained using questionnaires and analyzed using a qualitative method. Tables and charts were used to present the study findings.The study established that promotion was a major factor that greatly affected marketing of communication services. The use of informa-tion technology influenced introduction and application of effective promotion methods that eased marketing of organization services in the target market. The study concluded that the effects of information technology have eased acquiring products information and conducting communications globally. Applications of effective promotion methods have been made better and this has contributed towards achievement of increased sales revenue. The study finally recommended that the company should incorporate updated and most effective infor-mation technology in all its departments especially marketing.


TABLE OF CONTENTS

1          Introduction
            1.1       Purpose of the study
            1.2       Research limitations
            1.3       Statement of the problem
            1.4       Choice of the context
            1.5       Structure of the study

2          Theoretical discussions
            2.1       Introduction
            2.2       Marketing
            2.3       Marketing mix
                        2.1.1    Product
                        2.3.2    Place
                        2.3.3    Promotion
                        2.3.4    Price
                        2.1.2    Competition
            2.2       Information management
            2.3       Benefits of information management
                        2.3.1    Customer information management
                        2.3.2    Demand focusing
                        2.3.3    New service development
                        2.3.4    Performance monitoring
            2.4       Internet as a marketing tool
            2.5       E-Marketing
                        2.5.1    Products
                        2.5.2    Process
            2.6       Marketing communication
            2.7       Communication process
                        2.7.1    Elements in the communication process
                        2.7.2    Developing effective communications
            2.8       Effects of IT on business processes

3          Research and methodology
            3.1       Introduction
            3.2       Research design
            3.3       Target population
            3.4       Sampling design
                        3.4.1    Sampling method and techniques
                        3.4.2    Sampling procedures
                        3.4.3    Data collection method and techniques
                        3.4.4    Data collection procedures
            3.5       Data reporting
            3.6       Ethical issues
            3.7       Data analysis, presentation and interpretation
                        3.7.1    Qualitative analysis

4          Empirical section
                        4.1.1    Case company-Safaricom
                        4.1.2    Company background
                        4.1.3    Financial situation analysis
                        4.1.4    SWOT analysis
                        4.1.5    Marketing mix analysis
            4.2       Kenya
                        4.2.1    Economy
                        4.2.2    Level of technology
                        4.2.3    Demography

5          Conclusions
            5.1       Purpose of the study
            5.2       Summary of the study
            5.3       Recommendations
            5.4       Suggestions for further studies
List of references
List of figures
List of tables
Appendix 1: Questionnaire


1        Introduction
Marketing strategies and improvement have been advancing. As defined by Kotler, marketing is a societal process by which individuals and groups obtain what they need and want through creating, offering, and freely exchanging products and services of value with others.

Marketing is a business section that focuses on the practical application of marketing tech-niques and the management of a company’s marketing resources and activities. Marketing managers are often responsible for influencing the level, timing, and composition of cus-tomer demand in a way that will achieve the company's objectives (Kotler 2000, 8)

Marketing management involves choosing the target market, which has to be maintained through creating, delivering and communicating customer value.In this regard marketing management is quite broad and defines all the activities a company uses to acquire custom-ers and manage relationship with them.Additionally, the Kotler definition involves both the development of new products and services and their delivery to customers. (Kotler & Keller 2005, 45).

The developing and use of the internet on a global scale has created opportunities for end users, sellers and producers to communicate online and hence no physical movement re-quired. Internet marketing combines creative and technical aspects of the Internet, includ-ing design, development, advertising, and sales. Internet marketing does not simply entail building or promoting a website, nor does it mean placing a banner advertisement on an-other website. Effective Internet marketing requires a comprehensive strategy that syner-gizes a given company's business model and sales objectives with its website function and appearance, focusing on its target market through proper choice of advertising type, media, and design (Combe 2006, 118).


Information technology has been a key contributor to the major transformations on how companies market their products and services. Anticipating the impact of information tech-nology is becoming more difficult. Businesses are experiencing fundamental transformation due to the impact of information technology. When utilized appropriately, technology can affect how business processes are planned, implemented and evaluated. Technology can af-fect information processes and the information made available to decision makers, as well as the roles and responsibilities of organization personnel. Due to its potential impact, under-standing the nature and use of information technology in solving problems is becoming in-creasingly important to professionals. (Hollander, Denna & Cherrington 1996, 46).

All new information technology (IT) systems bring a range of associated changes with them. These may be changes to the business process and procedures, new roles and responsibilities, organizational restructuring, new equipment or facilities, or new skills to learn. All these issues involve people and it is they within organizations that are the key to success of any IT implementation. Failure of new IT systems in an organization might be due to lack of training and communication or failure to obtain support and commitment from the users. These prob-lems can be eliminated by proper planning, training and implementation of information tech-nology programmes in the company. Many companies are also attempting to use information systems to form closer relationships with the customers and their suppliers through sophisti-cated extranets (Wheelen & Hunger 2004 176).

1.1     Purpose of the study

The main objective of the study was to determine the effects of information technology on marketing of communication services in relation to Safaricom Company. However the specific objectives of the study were;

·                To determine the effect of promotion on marketing of communication services

·                To establish the effect of product development on marketing of communication ser-vices

·                To determine the effect of distribution on marketing of communication services

·                To evaluate the effect of price on marketing of communication services

·                To assess the effect of competition on marketing of communication services


The research study will be of great significance to the marketing management staff at Sa-faricom Limited.This is because the study report highlighted and explained the effects of IT on marketing of communication services, which will be of importance towards guiding the marketing staff on how to integrate marketing strategies with information technology and contribute towards realization of high sales turnover.

The study will be of significance to the board of directors and other senior organization management staffs who are involved in formulation of key management decisions. The re-search study will provide information and explain the problems that affect marketing of communication services. The board of directors and management staff will thus be in posi-tion to make decisions pertaining the staff recruitment and the best appropriate strategies that should be implemented by the organization in order to effectively implement informa-tion technology in all marketing functions.


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