INFLUENCE OF INTERNET MARKETING STRATEGIES ON THE MARKET SHARE OF ONLINE SHOPS IN NAIROBI COUNTY IN KENYA.
DOI:
https://doi.org/10.47941/jms.848Keywords:
Website Design, Content Marketing, Affiliate Marketing, Social Media Marketing, Market ShareAbstract
Purpose: The online shopping sector in Kenya is still not well developed and online commercial activities contribute to just over 1% of Kenya's GDP. Kenya's rate of online shopping is 23% and currently lags behind the global rate of online shopping which is 59%. The different level of development in online shopping between Kenya and other developed economies shows that the sector still has a long way to go in Kenya. Online shops face competition from the conventional "˜brick-and-mortar' stores and supermarkets. In order to deal with the competition most online shops market their products using internet marketing, which is defined as advertising of a company's products or services over the internet with the view of increasing profits or market share. Market share is the percentage of an industry acquired by a company during a certain period of time. This study aimed to establish the influence of internet marketing strategies on the market share of online shops in Kenya. The specific objectives of the study were: to determine the influence of website design strategies on the market share of online shops in Nairobi County in Kenya; to establish the influence of content marketing strategies on the market share of online shops in Nairobi County in Kenya; to assess the influence of affiliate marketing strategies on the market share of online shops in Nairobi County in Kenya and to establish the influence of social media marketing strategies on the market share of online shops in Nairobi County in Kenya.
Methodology: This study adopted descriptive research design. The study covered 68 respondents drawn from a population of 34 online shops operating within Nairobi County, with an average of 2 respondents selected per organization. The study relied on data collected using a questionnaire comprising of both open-ended and close-ended questions, structured to meet the objectives of the study. The data was analyzed using inferential statistics by means of Statistical Packages for Social Sciences version 20.
Results: The results indicated a P-value of 0.0002, which is less than 0.05 against all the variables in the study. This indicated that website design marketing strategies, content marketing strategies, affiliate marketing strategies and social media marketing strategies had a significant influence on the market share of online shops in Nairobi County. The study revealed a positive correlation between website design and market share with a correlation coefficient of 0.015, a positive correlation between content marketing and market share with a correlation coefficient of 0.163, a positive correlation between affiliate marketing and market share with a correlation coefficient of 0.057, and a positive correlation between social media marketing and market share with a correlation coefficient of 0.923. The study concluded that social media marketing strategies contributed the most to the overall market share of online shops in Nairobi, followed by content marketing strategies, affiliate marketing strategies and finally website design marketing strategies.
Unique Contribution to Theory and Practice: The study recommended that online shops needed to come up with an internet marketing mix that incorporated all the different strategies given that the respondents gave varied views on which internet marketing strategies were more influential. The County governments were encouraged to look into ways of making internet connectivity more affordable since most online shops indicated unreliable and expensive internet as a challenge when trying to conduct internet marketing. The "˜brick-and-mortar' shops that were not making a profit were also urged to consider the online business model. Retail customers were advised to be willing to accept change and embrace online shopping.
Keywords: Website design strategies Content marketing strategies, Affiliate marketing strategies, Social media marketing strategies and Market share.
Downloads
References
Amadeo, K. (2018). Cyber Monday, When It Starts, and Current Trends. Retrieved June 26, 2018, from the balance: https://www.thebalance.com/cyber-monday-what-it-is-when-itstartsand-current-trends-3305715
Audretsch, D. B., Prince, Y. M., & Thurik, A. R. (1998). Do Small Firms Compete with Large Firms? Tinbergen Institute of Rotterdam, Centre for Economic Policy Research.
Benediktova, B., & Nevosad, L. (2008). Affiliate Marketing: Perspective of Content Providers. Lulea University of Technology, Business Administration and Social Sciences.
Branding Voice. (2017). Kenya's online shopping space gets more competitive. Retrieved from Standard Digital: https://www.standardmedia.co.ke/brandingvoice/kcb/article/54/kenyasonline-shopping-space-gets-more-competitive
CAK. (2017). White Paper on Adoption and Facilitation of E-commerce via the Postal/Courier
Networks. Communications Authority of Kenya. Retrieved January 22, 2019
Cameron, R., Ginsburg, H., Westhoff, M., & Mendez, R. (2012). Ajzen's Theory of Planned Behavior and Social Media. American Journal of Psychological Research, 8(1), 1-20.
Chintagunta, P. K., & Vilcassim, N. J. (1992). A Two-Period Repeated Game Advertising Investment Model for Oligopolistic Markets: An Application to the Beer Industry. A Journal of the Decision Sciences, 26(4), 531-559.
Coate, M. B. (1983). Market Share and Profitability: A new approach. Washington DC: Bureau of Economics.
Cytonn. (2018). Lessons for the Kenyan Retail Sector. Retrieved from Cytonn:
https://cytonn.com/topicals/lessons-for-the-kenyan-retail-sector
Edelman, B., & Brand, W. (2014). Information and Incentives in Online Affiliate Marketing. Boston: Harvard Business School.
Fadeyev, D. (2008). Strategic Design: 6 Steps for Building Successful Websites. Retrieved June
, 2016, from Smashing Magazine:
https://www.smashingmagazine.com/2008/11/strategic-design-6-steps-forbuildingsuccessful-websites/.
Gale, B. T., & Branch, B. S. (1982). Concentrations versus Market share: Which determines performance and why does it matter. The Antitrust Bulletin, pp. 83-103.
Gensler, L. (2017). The World's Largest Retailers 2017: Amazon & Alibaba Are Closing In On
Wal-Mart. Retrieved June 26, 2018, from Forbes:
https://www.forbes.com/sites/laurengensler/2017/05/24/the-worlds-largest-retailers-
walmart-cvs-amazon/#1b3f744820b5
George, J. F. (2004). The theory of planned behavior and internet purchasing. Internet Research Journal, 14(4), 198-212.
Hall, S. (2017). Youth Employment in Kenya. British Council.
Hall, S. H. (2019). 15 Smart Ecommerce Personalization Examples That Boost Sales. Retrieved from Optinmonster: https://optinmonster.com/ecommerce-personalization-examples/.
Howe, N., & Strauss, W. (2000). Millennials Rising: The Next Great Generation. New York: Vintage Books.
Human, G., Hirschfelder, B., & Nel, J. (2018). The Effect of Content Marketing on Sponsorship Favorability. International Journal of Emerging Markets, 13(5), 1233-1250.
Imenda, S. (2014). Is There a Conceptual Difference between Theoretical and Conceptual Frameworks? Journal of Social Sciences, 38(2), 185-95.
ITC. (2015). International E-commerce in Africa: The Way Forward. International Trade Centre.
Javadi, M. H., Dolatabadi, H. R., Nourbakhsh, M., Poursaeedi, A., & Asadollahi, A. (2012). An Analysis of Factors Affecting Online Shopping Behavior of Consumers. International Journal of Marketing Studies, 4(5), 81-98.
Kabuba, P. (2014). Ecommerce and performance of online businesses in Kenya. MBA Research Project, University of Nairobi, Nairobi.
Kirui, A. K. (2016). A Study of Consumer Behavior Towards Online Shopping in Kenya: Case of Nairobi County. University of Nairobi, Computing and Informatics.
KPMG. (2017). Online Global Consumer Report: The truth about online consumers.
Malenya, M. Z. (2017). Factors that influence the growth of ecommerce in Nairobi Kenya.
McPheat, S. (2011). Developing an internet marketing strategy. Internet Marketing Academy and Venus Publishing APS.
Money&Markets. (2017). Jumia’s Black Friday sale now becomes Kenya’s biggest shopping event. Retrieved June 26, 2018, from Money&Markets: https://moneyandmarkets.co.ke/jumias-black-friday-sale-now-becomes-kenyas-
biggestshopping-event/
Moore, B. (2019). What is a Website Design Strategy? Retrieved January 23, 2019, from
Square2: https://www.saleshub.ca/blog/what-is-a-website-design-strategy
Mota, D., Grilo, A., & Faias, M. (2016). A Game-Theoretic Approach to Digital Marketing and Lead Generation for Duopoly Markets. IEOM Society International, 133-142.
Mugenda, O. M. (1999). Research Methods, Quantitative and Qualitative Approaches. Nairobi: African Centre for Technological Studies.
Mung'ei, B. M., Ombui, K., & Iravo, M. (2017). Determinants of the Implementation of Social Media Strategies in Devolved Governments: A Case of Nairobi City County. International Journal of Management and Commerce Innovations, 5(2), 219-232.
Ng'ang'a, C. M. (2015). Effectiveness of Digital Marketing Strategies on Performance of Commercial Banks in Kenya. University of Nairobi.
Ngugi, E. W. (2013). Influence of electronic marketing strategies on the performance of commercial banks in Kenya. Masters Report, University of Nairobi, School of Business.
Omondi, D. (2018). Smartphone Usage Drives Kenya's Internet Penetration. Retrieved from Standard Digital: https://www.standardmedia.co.ke/article/2001273507/smartphoneusagedrives-kenya-s-internet-penetration
Onyango, K. (2016). Influence of Digital Marketing Strategies on the Performance cutflowers exporting firms in Kenya. MBA Research Project, University of Nairobi, Nairobi.
SoftKenya. (2018). Online Shopping in Kenya. Retrieved July 27, 2018, from SoftKenya:
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2022 Gregory Abraham Orare , Dr. Severina Nkirina
This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution (CC-BY) 4.0 License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
