Effects of Digital Media Strategies on Competitive Advantage in Kenyan Firms: A Case of Scangroup Limited

Abstract

The general objective of the study was to determine the effects of digital media strategies on competitive advantage of digital media firms. The following specific objectives guided the research: to determine the effects of social media marketing strategy on competitive advantage at Scangroup Limited, to identify the effects of e-mail marketing strategy on competitive advantage at Scangroup Limited, and to examine the effects content marketing strategy on competitive advantage at Scangroup Limited. The literature review focused on the concepts of digital media strategies on competitive advantage. A correlational research design was applied in this study. A population of 80 digital media personnel staff working in Scangroup Limited was used in this study which included of Group M, Scanad, Squad Digital and Ogilvy managers. The sample frame of this study was a list of employees of Scangroup Limited which was obtained from the company human resource management. In this study, the census was adopted. A census was appropriate since the target population was small and manageable. The study made use of primary data. Primary data was collected using a structured questionnaire. Statistical Package for the Social Sciences (SPSS) Version 24 program statistical software was used in analysis. The data collected was analyzed using descriptive statistics comprising of mean, standard deviations, frequency distribution, percentages, factor analysis, correlation analysis, structural equation modeling and regression analysis. The results were presented in the form of tables and figures. The study showed that the firms used social media marketing for their marketing communication and to gather information about their customers and markets. Facebook was used by the firms as an accurate targeting platform for advertising that was used to go directly to their customers using selected content. They used Twitter to share ideas and news with their wider audience as their online marketing strategy. LinkedIn was used by the firms to source for professional employees as well as create and generate company leads. While Instagram was used to market their brands and increase their content visibility of their brand. The study revealed that the firms used email marketing software to connect with its customers who had subscribed to receive them. Opt-in email marketing services were used by the firms to provide their consumers with needed information and they did not automatically add consumers who had opted out of their emails. These digital media firms did not use strong marketing emails to gain competitive advantage, but rather used direct emails to communicate their promotional messages with customers that had opted in. This use of direct emails had encouraged new customers to purchase from them thus enabling the firms to gain competitive advantage in the market. Email newsletters were also used to communicate with customers in a personalized manner which facilitated the firms in gaining competitive advantage in the market. The study showed that the firms used content marketing to build their brand, create leads and increase their profitability through durable customer communication, thus, gaining competitive advantage. The firms used marketing blogs to describe or provide information to their audiences, engage with their key stakeholders, increase the traffic towards their corporate website and gain customer loyalty through constant engagement with them. These firms did not use YouTube to provide information about their business purpose, but rather to gain competitive advantage. The study concludes that the firms used social media marketing for their marketing communication and to gather information about their customers and markets. The firms used email marketing software to connect with its customers who had subscribed to receive them. This use of direct emails had encouraged new customers to purchase from them thus enabling the firms to gain competitive advantage in the market. Content marketing was used by the firms to build their brand, create leads and increase their profitability through durable customer communication, thus, gaining competitive advantage. The study recommends the managers of Scangroup Limited to take advantage of the opportunity presented by social media marketing strategies to learn more about the needs of their users. They also need to make use of strong marketing emails to visually engage their audience to tell a story instead of using plain-text emails as well as take advantage of YouTube and provide its customers with information about their business purpose. This may open up the firm to a wider generation and clients that use the platform, thus increase the firm’s competitive advantage.