Advertising and the growth of telecommunication industry in selected districts in Central Kenya

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Kampala International University, College of Economics and Management
Before the 2000 liberalization by the government of Kenya, there was only one telecom provider in Kenya, Kenya Post and Telecommunications, which was supposed to serve the entire population in Kenya. This led to many people being denied quality telecom services because of the monopoly Kenya Post and Telecommunications had by then. However the industry experienced slow growth registering a 2O% market growth due to lack of product awareness in the region. This study was set out to establish the extent to which advertising affects growth of telecommunications in selected districts in Central Kenya namely Gatanga, Gatundu, Githunguri, Kandara and Kabete, Specifically the study wanted to establish the effect of (i) level of advertising and (ii) level of growth, on telecommunication firms in selected districts in Central Kenya. The study was done by developing a conceptual frame relating advertising and growth. The study employed a descriptive correlation design; data was collected from 155 respondents using self-administered questionnaires as the key data collection instruments. Data was analyzed at univariate level using frequency counts and summary statistics and Pearson Linear Correlation coefficient at bi-variate level. The study revealed that advertising affects organization’s growth. From the above findings, appropriate conclusions and recommendations including those for further research were made. Findings established that advertising influences the change of growth in a firm and the Recommendations from the study were (i) the government should enhance and encourage telecommunication by adopting communication levels in consultation with stake holders in the industry, (ii) telecommunication firms need to prioritize advertising as remedy to success, (iii) telecommunication firms should invest reasonably in advertising to create brand awareness, (iv) government should introduce tax incentives to allow telecommunication firms have sufficient reservations for advertising for industry growth (v) telecommunication companies should train marketing students in order to equip them with the expertise in advertising to enable them grow the industry
A thesis presented to the School of Postgraduate Studies and Research in partial fulfillment of the requirement for the award of a degree of Masters in Business Administration (management option)
Advertising, Growth of telecommunication industry, Central Kenya