Effects Of Promotional Activities On The Market Share Of Broadcast And Pay Television Industry In Kenya: A Case Of Multichoice Africa

ABSTRACT

A company's sales quantities are important in the overall profit of the company due to the possibility of increased revenues from the unit profit margins of every product sold. Therefore, there is need for companies to promote their sales and capture a large market share in order to sustain and grow the profits. The main objective of the study was to determine the effects of promotional activities on the market share of broadcast and pay television industry with a focus on Multichoice Kenya. The specific objectives were to find out the effects of advertising on the market share of Multichoice Kenya, to determine the effect of personal selling on the market share of Multichoice Kenya, to investigate the effects of public relations on the market share of Multichoice Kenya and to determine the effects of direct marketing on the market share of Multichoice Kenya. The literature review addressed the theories of promotional activities and market share. Empirical literature focused on findings from past studies on related topics in Kenya and other parts of the world. The researcher employed descriptive survey design to collect the views, opinions and attitudes of the respondents on the variables of promotional mix : Advertisement, personal selling, direct marketing and public relations. The target population included 72 managers located at the headquarters of Multichoice Africa in Nairobi City, Kenya. Stratified random sampling technique was used to select a sample of at least 50% of the target population. This resulted in a sample of 36 managers made of 4 territorial managers, 8 middle level managers and 24 line managers. Semi-structured questionnaires was administered on the sample size and the collected data was analyzed using the SPSS computer programme. Descriptive statistics such as the mean, percentages and standard deviations were used to describe the findings while inferential statistics of correlation analysis and regression analysis were used to establish relationships between the variables. The findings was presented in charts, graphs and frequency tables. From the research findings, advertising helps to keep customers informed of what the company offereing , adversting craete awareness of the exisyting comapny products and attarct new customers , therefore the study concludes that advertising had a positive effect on the market share of Multichoice Kenya. The findings revealed that personal selling enhances customer loyalty, increases sales, and enhances performance thus the study concludes that personal selling had a positive effect on the market share of Multichoice Kenya. Kenya. Public relations was found to significantly build company image, enhances sales volumes, averagely builds customer loyalty, attracts new customers.The study also established that direct marketing enhances customer loyalty, helps to attract new customers which led to increase in sales, it also led to growth. The research recommends further studies to be done on the remaining promotional activities.