CHAPTER TWO

REVIEW OF RELATED LITERATURE AND STUDIES

This chapter covers a literature review that has previously been completed in

the area of study, as well as what researchers have discovered about the topic and

what various scholars have come up [Link] chapter confirms the four main

components: conceptual review, theoretical review, theoretical framework and

empirical review. This aids in the comprehension of the subject at hand as well as the

identification of differences. This chapter illustrates the perspectives of various

authors and researchers on marketing techniques and their impact on business

expansion in order to arrive at the study's conceptual framework. It sets out to

discover their findings, arguments, thoughts, and observations, all of which are

relevant to this research.

Conceptual Review

Briefly this section comprises with of definitions of marketing strategies as an

independent variable in my research which has brand awareness and visibility as sub-

variables and also the definition of business expansion as my dependent variable

which has sales growth, customer increase, market share growth as the sub-variables

used in this study, generally each variable can be understood by several authors in

different ways.

Social Media Platforms

Social media technology plays a crucial role in boosting productivity and competitiveness
within

Various industries. It has made a substantial impact on the growth and vitality of small and
medium-
Sized enterprises (SMEs) in the global economy. Through the utilization of social media

Technologies, SMEs can efficiently reach markets and interact with stakeholders while
keeping( Kumar & Mishra,2024)

Costs to a minimum

Definition describes it as “a collection of internet-

Based applications that use the principles and

Technology of Web 2.0, allowing for the creation

And sharing of User Generated Content.

The rapid growth and widespread adoption of social media platforms have

transformed the business landscape, offering new opportunities and challenges for

various industries (Smith & Jones, 2020). In the Small business sector, the integration

of social media has become increasingly crucial for companies seeking to expand

their reach, enhance customer engagement, and maintain a competitive edge (Nguyen

& Lee, 2022). Rwanda, with its evolving telecommunication industry, presents an

intriguing context to explore the dynamics between social media platforms and

business expansion in this sector.

Small and medium entreprises (SMEs) in Rwanda have recognized the potential of

social media in driving their growth and diversification strategies (Rwigema &

Uwilingiye, 2021). These platforms provide a versatile medium for enhancing brand

visibility, fostering customer relationships, and exploring new market segments

(Karamuka & Ndahimana, 2019). However, the extent to which social media

platforms have influenced the business expansion of small and medium entreprises

(SMEs) in Rwanda remains an area that requires further investigation (Munyentwali

& Nkurunziza, 2020).

By exploring the various ways in which social media integration has shaped the

growth and diversification strategies of these companies, this research will contribute

to the understanding of the interplay between digital technologies and the evolving

telecommunication landscape in the Rwandan context (Uzabakiriho & Nkurunziza,

2022).

Brand awareness and visibility

Academic research consistently emphasizes the importance of brand awareness and

visibility as indicators of social media's impact on business expansion. Social media

platforms provide businesses with opportunities to reach a vast audience and increase

brand recognition. Studies by Jones and Smith (2018) have shown that businesses

actively engaging on social media experience higher levels of brand awareness,

leading to increased customer interest and expanded market reach. Improved brand

visibility contributes significantly to business expansion by attracting new customers

and enhancing brand recall, ultimately supporting expansion into new markets and

customer segments.

Brand awareness and visibility are critical factors for success in the highly

competitive telecommunication industry. Several studies have examined the role of

brand equity and awareness in influencing customer perceptions and loyalty in this

sector(Tsai, Cheung, & Lo, 2010).

Tsai et al.(2010), investigated the impact of brand awareness on customer loyalty

among mobile telecommunication service subscribers in Taiwan. Their findings

suggest that brand awareness significantly influences customer loyalty, both directly

and indirectly through perceived value and brand equity.

In the context of the Indian telecommunication market, Karani and Ganesh (2016),

explored the antecedents and consequences of brand equity. Their study revealed that
brand awareness, along with perceived quality and brand associations, significantly

contributed to overall brand equity, which in turn positively influenced customer

satisfaction and loyalty intentions.

Yoganathan et al(2015), examined the role of brand awareness and brand personality

in shaping customer loyalty in the telecommunication industry of Sri Lanka. Their

results indicated that brand awareness and brand personality dimensions, such as

competence, excitement, and ruggedness, were significant predictors of customer

loyalty.

Several small and medium entreprises (SMEs) have employed various strategies to

enhance their brand awareness and visibility.

Advertising campaigns, sponsorships, and strategic partnerships have been commonly

used to increase brand exposure and familiarity among consumers (Onyango, 2019).

In addition to traditional marketing efforts, small and medium entreprises (SMEs)

have increasingly focused on building brand awareness and engagement through

digital channels, including social media platforms and online communities (Yadav &

Rahman, 2017). These digital strategies aim to enhance brand visibility, foster

customer interactions, and cultivate brand loyalty.

However, the effectiveness of brand awareness strategies may be influenced by

factors such as market saturation, competitive intensity, and consumer perceptions of

service quality and value (Sasmita & Suki, 2015). In highly saturated markets,

differentiating a brand and maintaining awareness can be particularly challenging.

Furthermore, the rapid pace of technological advancements and changing consumer

preferences in the telecommunication industry necessitates continuous adaptation and

innovation in brand awareness strategies (Nair, Vinith, & Babu, 2020).

of .
 Business growth

Business Growth is defined as the process by which a company expands its

operations, increases its revenue, and enhances its market share over time. It

encompasses a variety of dimensions, including financial performance, customer base,

product offerings, and geographic reach. Business growth is not only about expanding

in size but also about becoming more competitive and resilient in the marketplace.

Each business may approach growth differently, depending on its goals, industry, and

resources.

Growth in a business means it is expanding its activities and scope over a period of

time. This growth is visible in various metrics, including increased income, higher

profits, a larger share of the market, or more employees. Because every business has

unique goals and strategies, there is no single, universal approach to growth

(Firestarter Solutions, 2023).

Business growth is a complex concept because different metrics can move in opposite

directions simultaneously. For instance, a firm might see increased profits from

existing customers’ loyalty and higher purchase volumes, even if its total number of

clients is shrinking. However, for smaller companies, expanding the customer base is

vital for increasing overall revenue and remaining competitive. Consequently,

business owners should align their growth goals with their specific circumstances to

identify the most effective strategies for expansion and profitability (Kushnir, 2024.)

Sales growth

In the business world, sales growth is an important indicator of business growth that

shows the company’s progress over time. Sales growth refers to the increase or

decrease in business revenue within a specific period compared to the previous

period(SOS2025).
Kaplan and Norton (2017)believe that in order to achieve their performance targets,

businesses must use a variety of objectives, particularly the growth of sales. Other

research looks into the link between market share increase and profitability.

Sales Growth is the percentage increase in a company’s sales revenue over a specific

period, typically measured monthly, quarterly, or annually. It is used to assess how well a

business is performing and how effective its marketing and sales strategies are in driving

revenue.

Sales growth is a key performance indicator that helps businesses understand the

effectiveness of their marketing efforts. A positive sales growth suggests that marketing

campaigns, product offerings, or overall strategies are successfully attracting more customers

or increasing sales from existing ones. A decline in sales growth can signal the need for

adjustments in strategies or a deeper analysis of market trends

Customer increase

Santouridis and Trivellas (2010) examined the impact of service quality on customer

retention in the Greek mobile telecommunication market and found that reliability,

responsiveness, and assurance dimensions of service quality significantly influence

customer loyalty and retention.

In the context of the Indian telecommunication market, Sharma and Kurien (2017),

investigated the influence of service quality, perceived value, and customer

satisfaction on customer loyalty. Their findings suggest that delivering high-quality

services and creating perceptions of value are crucial for building customer loyalty

and reducing churn rates.

Pricing strategies and value-added services have also been identified as important

factors in attracting and retaining customers in the telecommunication industry. Riaz

and Ramay (2017), studied the impact of value-added services on customer loyalty
and found that offering innovative and attractive value-added services can

significantly contribute to customer satisfaction and retention.

Marketing and promotional activities play a vital role in customer acquisition and

brand awareness in the telecommunication sector. Onyango(2019), examined the

influence of branding strategies on competitive advantage among small and medium

entreprises (SMEs) in Kenya and found that effective branding, advertising, and

promotional campaigns can significantly enhance brand awareness, attracting new

customers and strengthening market position.

The adoption of new technologies and innovation has become increasingly important

for small and medium entreprises (SMEs) to retain existing customers and attract new

ones. Nair et al.(2020), explored the impact of technological innovations, such as 5G

networks and Internet of Things (IoT) services, on customer acquisition and retention,

highlighting the need for companies to continually invest in technological

advancements to meet evolving customer demands.

Furthermore, customer relationship management (CRM) strategies and personalized

experiences have been recognized as crucial factors in customer acquisition and

retention. Keränen et al. (2012)emphasized the importance of value co-creation and

involving customers in the development and delivery of solutions, leading to stronger

relationships and increased customer loyalty.

It is important to note that customer acquisition and retention strategies should be

tailored to the specific target market segments and their preferences. Continuous

monitoring of customer needs, market trends, and competitive landscape is essential

for small and medium entreprises (SMEs) to adapt their strategies and maintain a

competitive edge (Sharma & Kurien, 2017).

Market Share growth
The importance of monitoring market share movements is highlighted by the

sobering fact that whilst all the internal marketing ratios of a firm are favorable, a

company could still be losing ground when compared to the competitors, due to the

market as a whole growing faster than the firm. A company may in these

circumstances see its market share falling in spite of a high performance against

standard. Therefore, in order to adjust performance standards taking into account the

influences of the external environment, a controller must track the company’s market

share(Halligan & Shah, 2009).

The very first stage in adopting overall market analysis is to determine which market

share measurement should be used. Listed below are the four different measures

which are available (Kotler, 2016)

Monitoring market share movements is very important to proper marketing

control, because a company may well find that it has performed badly relative to

competitors even though all its internal ratios are favorable. Further, the work of the

Boston Consulting Group (2011) and the results of the ‘PIMS study’ (Buzzel, 2018)

have emphasized the importance of achieving market share goals(using the key

parameters of market size and growth rate) in marketing strategy.

Once a market share measure is determined, a framework of control is

necessary to assess performance against a model that combines the main factors listed

above. Such a framework is presented in this section. However, because the plan may

contain insufficient criteria for evaluating success, particularly if there seem to be a

number of unplanned events during the intended period, a second step of review is

recommended. This step incorporates ex post data to adjust for planning variations,

resulting in a more acceptable set of performance evaluation criteria. The external

marketing environment was the focus of the previous two sections. The internal

marketing environment will be discussed in the following section. (Chaston, 2014).

The PIMS data set shown that an organization with a 40% market share will

make twice as much money as a competition with a 10% market share. (Simon,

2010). As a result, the strategic relevance of these results is that companies should

seek a bigger market share in order to sustain a competitive advantage and

expertise. The concept of economies and productivity improvements is based on the

fact that a company's current position is determined by its market share. The lower

the company's unit expenses are and the better the profitability are, the greater the

proportion market share (Simon, 2010).

Other research has not identified a beneficial relationship between market

share and profitability. When company factors are added to in the profit system,

researchers demonstrate that now the share of the market effect on profits is

reduced and approaches near zero on overall. Incorrect modeling selections, they

believe, can have a significant biasing influence on estimates of the share of the

market effect. Simon (2010)Relative and absolute market share was used to test this

connection. He discovered no meaningful connection between these two variables.

In the long run, these increases are fully absorbed. Small business success is heavily

influenced by strategy selection, emphasizing the necessity of selecting the right

strategy. The selection of a specific strategy will rely on the company existing and

predicted surroundings and the competencies, assets, ambition, goal,

experience, and strategic alignment of management. Profitability is unaffected by

short-term increases in growth. Profits are unlikely to increase as a result of growth

promotion effects (Smith, 2015)

 Market share, according to the efficiency hypothesis, is a result of

effectiveness rather than a cause. Higher efficiency accounts for differences in

profit among businesses. A causal relationship between size and profitability is

created when efficient enterprises get a significant market share and make high

profits. Companies that provide items that are more valuable to customers earn

market share. Companies that are better handled and have a competitive edge

expand faster than their competitors. Market share is gained by companies with

superior expertise and foresight through cheaper prices or better products. (Balance,

2016).

Any particular industry is predicted to grow toward an ideal structure in the

lack of unfair competitive behaviors or legal restraints, where there are three full-

line generalists and several tiny specialists who represent little slots. Medium-sized

businesses, on the other hand, are at a loss and are less productive as a result of

being trapped in the center and not achieving any comparative edge. Can, Ayca

andWinsor ((2010) suggest thatthe U-shaped idea is supported by evidence. These

findings point to a non-monotonic link between market share and profitability.

Theoretical Review

According to Gabriel (2019) The theoretical review is the framework that can

maintain or sustain a research study's theory. The theoretical review clarifies and

introduces the concept that explains why the research problem under investigation

occurs.

Marketing Theory

Chaston (2014) argues that marketing has both social and managerial

definitions. Armstrong has adopted a social definition of marketing: "Marketing as an

interpersonal and commitment to delivering whereby people select what they want and
need through sharing and delivering value with others, and marketing includes of

measures undertaken to create and maintain recognition of the value relationship with

consumers," according to the American Marketing Association. This definition reaches

the human mind's most basic mental exchange for "needs," and thus serves as a

foundation for this study (Kotler, 2011).

In terms of the managerial definition, marketing was defined as "the art of

selling items" in the 1960s. Until 1985, the American Marketing Association (AMA)

suggested the now globally acknowledged managerial definition: "Marketing is the

process of developing and implementing the real concept, selling prices, advertising,

and distribution of thoughts, products, and services to achieve goals and objectives."

However, the definition has been changed on the American Marketing Association's

website to "Marketing is an essential part of an organization and a series of processes

for generating, interacting, and providing customer value, as well as handle customer

relationships in ways that benefit the organization and its stakeholders." (Kotler, 2011).

Transaction Cost Analysis theory

According to Bagozzi(2015)The purpose of marketing is to address difficulties that

arise throughout a transaction. There are two types of questions that come to mind: (1)

why should people and businesses participate in exchange relationships? And, more

importantly, how are exchanges formed, handled, or prevented There has been a great

deal of research on this topic, such as consumer motivations and commitment. He does,

however, present the most important concept: The transaction cost is the price that must

be paid in order for the exchange to take place. Following that, Williamson (2015)has

created the very first major transaction cost analysis structure. He pointed out that the

transaction cost is determined by the interaction of people and the

 environmental elements, both of which have a significant impact on the effectiveness of

a transaction.

Empirical Review

Strategy for marketing, rapid penetration of new markets and rising levels of

competitiveness in the worldwide market are among the causes encouraging

institutions to seek greater effect, i.e., strategies to dominate the international market

as well as strengthen the internal market. It is advantageous for businesses seeking

viable and lengthy access to markets to arrange their marketing efforts; therefore, they

must choose a straightforward marketing strategy. This process does not end with the

business, as it is necessary to constantly plan and assess the marketing strategies

chosen (Rugamba, 2016).

Marketing is the managerial function in charge of finding, predicting, and

economically addressing client needs. Strategic marketing is a theory and set of

tactics that address issues like product design and development, price, public

relations, distribution, and after-sales support. (Hambrick&Fredrickson, 2015).

Electronic Summary Table of Literature (ESTOL) and Gap Analysis

This section concerns the summary of the empirical review done from different

articles that are published in the area of variables with the main aim of investigating the

relevant GAPS that are left behind so that this study's justification may be situated in the

literature.

Table 1.
Electronic Summary Table of Literature (ESTOL) and Gap Highlights
S/N Name of authors, The title of article Methodology Findings & Gap Highlight
Years & country Conclusion

1 (Aksum, 2006), An internal customer Exploratory research The level of The use of primary
service quality data design and case study Consumer buying data only and no
USA envelope analysis model behavior is still at empirical review
for bank branches a very low level
2 (Ash, Ginty, & Landing Page Exploratory research Organization are Lack of scientific
Page, 2012), Optimization:The design and case study more analysis.
Definitive Guide to
USA Testing and Tuning for proportionally to
Conversions. Consumer buying
behavior by
customers.

3 (Audretsch, 2018) Non-Financial Goals a Exploratory research Banks were There was no
, Business Wants to design and case study struggling to supporting
Achieve in the First evidence for
USA Years of Business meet their empirical analysis.
commitments to
depositors and
were in financial
difficulty.

4 (Aufreiter, 2014), Analyzing customer Using both economics Major financial There was no
satisfaction with service and criminological losses are not supporting
USA quality in life insurance concepts supported by the evidence for
services empirical data empirical analysis
generated by
marketing
strategies.

5 (Ayca, 2010), Customer Loyalty - Survey design and semi Recent banking It uses only
Meaning and its structured interview crisis is due to secondary data
India Important Concepts Customer
Loyalty -
Meaning and its
Important
Concepts

6 (Balance, 2016), What Are Costomer descriptive research There is weak Lack of external
Commitment in design and inferential what Are control as
Boston Business Terms statistics embracing the Customer predators to
questionnaires Commitment in consumer
adoption for data Business Terms. behavior.

7 (Ballantyne, What Is Customer Exploratory study and Customer Rich in secondary

2014), Satisfaction case study. Satisfactionmust data but lacks of
notify Consumer empirical findings.
California buying behavior
existence and
support
management in
their actions.

88 (Baumol, 2017) The Relationship Exploratory study and The results Rich in secondary
between Customer case study indicated that data but lacks of
Satisfaction and Service banks don’t empirical findings
Quality Service sectors easily comply
in Umeå with marketing
strategies policies
developed by
regulatory
agencies.
99 (Chaston, 2014); Knowledge-Based Exploratory study The results Use of literature
Marketing: the Twenty- highlighted that review only and
U.K First Century in this day lack of empirical
Competitive Edge customers rely analysis
heavily on
digitalization and
automation

110 (BostonConsultin The influence of service Documentary review Regular customers The study has no
gGroup, 2011) failure and service study play an important methodology it
recovery on airline role in marketing was simply a
USA passengers’ strategies and literature review
relationships with they should be
domestic airline highly considered
in every step

11 (Halligan & Shah, Inbound Marketing: Get The study used a cross- This study has The study didn’t
2009), Found Using Google, sectional survey shown Inbound use descriptive
Social Media, and Blogs methodology in this Marketing: Get analysis
USA study, and the unit of Found Using
the sample was at Google, Social
Media, and Blogs
the plant levels.

12 (Christopher, Fundamentals of The number of Fortunately, the This study lacks

2014), Customer-Focused respondents were 27 findings show multiple
Management: out of 30 of those that regression
New York Competing Through invited to participate Fundamentals of analysis
Service. the questionnaire was Customer-
sent individually to all Focused
participants in the Management:
research Competing
Through Service

13 (Kaplan, 2017), Digital Marketing The survey uses Digital Marketing While substantial
Strategies That Work: A standardized survey Strategies That research has been
Virginia Complete Guide instruments and a Work: A conducted on
uniform sampling. Complete Guide digital marketing
strategies, there
. are still several
gaps and areas that
require further
exploration.

14 (Karamuka & The impact of social This study proposed a The study Limited empirical
Ndahimana, media on the mixed method study. provided a review
performance of small literature review
2019),
and medium entreprises and methodology
Kigali, Rwanda (SMEs) in Rwanda. simply as that.

15 (Audretsch, 2018) Non-Financial Goals a The necessary data are The research Limited
, Business Wants to collected from 350 descriptive
Achieve in the First managers/owners finding indicate analysis
San Fransisco Years of Business that marketing
of banking sector strategies
 banks in Selangor, elements;
Malaysia using some
questionnaire. Multiple have a positive
linear regression and significant
effects on
analysis. organization

performance.

Researcher, 2025

Gap Analysis

The gap, also known as the missing link or parts in the research literature, refers to an

area that has yet to be examined or that has been under-explored. A demographic or

sample (size, kind, location, etc.), research approach, data collecting and/or analysis,

or even other study factors or conditions are all examples of this. (Michael, 2017).

Various opinions presented by researchers on the importance of marketing strategies

to business expansion were discussed in the literature review, however, they did not

mention more about business expansion. Leenders (2015).As a researcher studying

the impact of marketing strategies on business expansion, I have come across

concepts like transaction cost, which states that the occurrence of an exchange is

required. Following that, Williamson (2015)has created the first significant

transaction cost analysis structure. He pointed out that the transaction cost is

determined by the interaction of human and environmental elements, both of which

have a significant impact on the effectiveness of an exchange.