CHINHOYI UNIVERSITY OF TECHNOLOGY

OBSTICLES THAT ARE HINDERING THE GROWTH OF THE

ADVERTISING INDUSTRY IN HARARE
BY
TAUZEN FARAI MAPULANGA
C17130487V
SUPERVISOR DR T MAJONI
A RESEARCH PROPOSAL SUBMITTED IN PARTIAL FULFILMENT
OF THE REQUIREMENTS FOR THE
BACHELOR OF SCIENCE HONOURS DEGREE IN BUSINESS
MANAGEMENT AND ENTREPRENEURSHIP DEPARTMENT OF
ENTREPRENEURSHIP

AUGUST 2021
RELEASE FORM

Name of student: Tauzeni Farai Mapulanga

Tittle of research project: Obstacles hindering the growth of the

Advertising Industry in Harare.

Program: Bachelors of Science Honors Degree in

Business Management and
Entrepreneurship

Year August 2021

Permission is hereby granted to the Chinhoyi University of Technology to produce

single copies of this project and to lend or sell copies for private, scholarly or scientific
research purposes only. The author reserves other publication rights and neither the
project nor extensive contracts from it may be printed or otherwise reproduced without
the author has written permission.

Permanent address 11336 Kuwadzana Extension

Harare

Student’s signature ………………………………….

Date ………………………………….

i
DECLARATION

I, Tauzen Farai Mapulanga do hereby declare that this research report is the result of my
own work, except to the extent indicated in the acknowledgements, references and by
comments included in the body of the report, and that it has not been submitted in part
or in full for any other degree to any other university.

………………………………………………………………
Name of Student

……………………………………………………………..
Date

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ACKNOWLEDGEMENTS

Firstly, my bona fide gratitude goes to the God Almighty who has taken me through all
and made this project a success. If it were not for him, l would not have gone this far.
To my family, (Doreen Jim) my wife and son (Dwayne Tanaka Mapulanga) in
particular, thank you for all the love and support you gave me. Not forgeting my closest
friend who have stood by my side Aaron, Zivanai, Evidence, Ntando, Tanaka Gosho,
Munashe and my little brother. I want to thank you my dear departed father (I want you
to know that I have made it as promised). Special thanks to my supervisor Dr Majoni
for assisting me through his supervision and advice on how to carry out this research.
Your contribution played a big role in the success of this research.

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ABSTRACT
This research was aimed at founding the obstacles that are hindering the growth of this
industry in Harare. The variables of interest under study were the effects of Politics,
economic, technology, legal and government on growth of the advertising industry in
Harare, the applicability of the models being used by agencies, the relevance of the
advertising industry in todays’ business environment and new media. There is little
research on the success and growth of the advertising industry in Harare that was done
of late. Thus, prompting the researcher to undertake this research. A cross sectional
survey was done in which pre-coded designed questionnaires were distributed to
respondents that include workers from five main advertising agencies in Harare, and
clients and suppliers (these include publishing houses like herald, Daily News, Print
houses for example Askeland Media, and broadcasting houses). A pilot research was
conducted using 10 workmates for the questionnaires. 235 questionnaire were
distributed, 229 were returned. Consequently, the response rate of questionnaire
returned were 99. Out of the 229 questionnaires returned 7 questionnaires were screened
out they were not completed and some were spoiled. The validated response rate
expressed as a percentage was 93%. The data from the 222 questionnaires collected was
entered into IBM SPSS statistic version 26.0.0.0 for analysis and interpretations. To test
for the reliability of the data entered Cronbach alpha was used. More so, the adequacy
of the data was tested using (Kaiser-Meyer-Olkin) KMO Measure of Sampling
Adequacy and Bertlett’s Test of Sphericity was also used. Principal component analysis,
Total Variance Explained, Scree Plots, Rotated Component Matrix, and one sample test
were used for the analysis of the main data. The research findings showed that Political,
Economical, Legal, and Government environments have an advice effect on the growth
of the advertising agency in Harare. The results from the research also showed that
advertising agencies are still the relevant in today’s business environment.. When the
applicability of the models being used by agencies was tested, the outcome showed that
the models being used by advertising agencies are borrowed from other countries and
that there is need to fine tune the model every now and then. The results also showed
that the new media have contributed to the growth of the advertising industry in Harare.
Overall, the outcome of this research showed that the growth of the advertising industry
is affected by Political environment, Economic, Technological, Legal and Government,
the models and the new media. The study recommended that to achieve expand the or to
grow your advertising agency in Harare one should be aware of the political, economic,
iv
and legal environment and engage on a strategy that will help the grow. There is also
need to constantly change the models so that they remain relevant and ride on the
benefits of the new media. Limitations brought about by the Covid-19 related lockdown
and a smaller sample size affected this research study. However, for future research a
related study can be done using a broader location (for example, looking at Zimbabwe)
to have an understanding of the bigger picture.

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 TABLE OF CONTENTS

RELEASE FORM.......................................................................................................................i
DECLARATION........................................................................................................................ii
ACKNOWLEDGEMENTS.......................................................................................................ii
ABSTRACT...........................................................................................................................iv
TABLE OF CONTENTS..........................................................................................................vi
TABLE OF FIGURES..............................................................................................................ix
LIST OF TABLES......................................................................................................................x
ABBREVIATIONS..................................................................................................................xii
LIST OF APPENDICES.........................................................................................................xiii
CHAPTER ONE: INTRODUCTION.......................................................................................1
1.1 Introduction........................................................................................................................1
1.2 Background of the study.....................................................................................................1
1.3 Statement of the problem....................................................................................................3
1.4 Research Objectives...........................................................................................................4
1.4.1 Main research objectives.............................................................................................4
1.4.2 Sub Research objectives..............................................................................................5
1.5 Research question...............................................................................................................5
1.6 Research Hypothesis...........................................................................................................5
1.8 Significance of the study....................................................................................................6
1.8.1 Advertising agencies....................................................................................................6
1.8.2 Entrepreneur and Investors..........................................................................................7
1.8.3 Government and other regulatory authorities...............................................................7
1.9 Scope of the study..............................................................................................................7
1.10 Delimitations of the study.................................................................................................8
1.11 Limitations of the study....................................................................................................8
1.12 Assumptions of the study..................................................................................................8
1.13 Summary of the study.......................................................................................................9
CHAPTER 2: LITERATURE REVIEW................................................................................10
2.0 Introduction......................................................................................................................10
2.1 Definition of terms............................................................................................................10
2.1.1 Advertising................................................................................................................10
2.1.2 Advertising Agency...................................................................................................12
2.1.3 Creativity...................................................................................................................13
2.1.4 Marketing Innovation................................................................................................13
2.1.6 New media utilities....................................................................................................13
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 2.1.7 Marketing Campaign.................................................................................................14
2.2 Theoretical Framework.....................................................................................................14
2.2.1 The Applicability of the Marketing Communication Model being used by Advertising
Agencies in Harare.............................................................................................................14
2.2.1.1 Marketing Communication Model..........................................................................15
2.2.1.2 Integrated Marketing Communications Model.......................................................17
2.2.1.3 Attitude Model........................................................................................................17
2.2.1.4 The Hierarchy of effects model..............................................................................18
2.2.1.4 Criticism of the hierarchy of effects model.............................................................20
2.2.2 Empirical Evidence....................................................................................................21
2.4 Challenges that new media have posed in the advertising industry in Harare...................22
2.4.1 Empirical Evidence....................................................................................................24
2.5 The Relevancy of the advertising agencies in today’s business environment...................25
2.5.1 Empirical Evidence....................................................................................................26
2.6 The effect of Political, Economical, Legal, Technological and Government on the growth
of the advertising agency in Harare........................................................................................26
2.6.1 Effect of the political environment on the growth of the advertising industry in
Harare.................................................................................................................................27
2.6.2 Effects of economic environment on the growth of the advertising industry.............27
2.6.3 Effects of Government policies on the growth of the advertising industry................28
2.6.4 Effects of the legal system on the growth of the advertising industry........................29
2.6.4 The effect of technology on the growth of the advertising industry in Zimbabwe.....30
2.6.5 Empirical Evidence....................................................................................................30
2.7 Other challenges affecting the growth of advertising industry in Harare..........................31
2.7.1 Failure by agencies to merge with international agencies..........................................31
2.7.2 Lack of marketing skills and market knowledge........................................................31
2.7.3 Lack Entrepreneurial Acumen...................................................................................31
2.7.4 Commission Method from Media..............................................................................32
2.7.5 Resistance to change..................................................................................................33
2.7.6 Succession plan.........................................................................................................34
2.7.7 In-house designing and production............................................................................34
Chapter Summary...................................................................................................................36
Chapter 3: Research Methodology..........................................................................................37
3.1 Introduction......................................................................................................................37
3.2 Research design................................................................................................................37
3.3 Population and sample......................................................................................................37
3.4 Sampling technique..........................................................................................................39

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 3.5 Research instruments........................................................................................................40
3.6 Data collection procedures................................................................................................41
3.7 Data analysis and presentation procedures........................................................................41
3.8 Validity and reliability......................................................................................................42
3.9 Ethical considerations.......................................................................................................42
3.10 Chapter summary............................................................................................................42
CHAPTER 4: DATA PRESENTATION, ANALYSIS AND DISCUSSION .......................43
4.1 Introduction......................................................................................................................43
4.2 Response rate....................................................................................................................43
4.5 Testing for sample adequacy............................................................................................46
4.6 Descriptive data analysis..................................................................................................46
4.6.1 Gender.......................................................................................................................46
4.6.2 Age of respondents....................................................................................................47
4.7 Inferential Data Analysis..................................................................................................48
4.7.1 The effect of PESTLEG on the growth of the advertising industry in Harare............48
4.7.2 The relevance of the advertising industry in today’s Business Environment.............51
4.7.3 The applicability of the models being used by advertising agencies in Harare..........54
4.7.4 New Media have a positive effect on the growth of the Advertising Industry...........56
4.8 Chapter Summary.............................................................................................................62
CHAPTER FIVE: SUMMARY, CONCLUSIONS AND RECOMMENDATIONS...........63
5.1 Summary..........................................................................................................................63
5.2 Conclusions......................................................................................................................64
5.2.1 The relevance of the advertising industry in Harare...................................................64
5.2.2 The applicability of the models being used by agencies in Harare.............................64
5.2.3 The effects of the new media on the growth of the advertising industry....................64
5.3 Limitations of the study....................................................................................................65
5.4 Implications of the study..................................................................................................65
5.4.1 The relevance of the advertising industry in Harare...................................................65
5.4.2 The applicability of the models being used by agencies in Harare.............................65
5.4.3 The effects of the new media on the growth of the advertising industry....................66
5.4.4 The effect of Political, Economic, Technology, legal and government on growth of
the advertising industry in Harare.......................................................................................66
5.5 Implications of the areas of further research.................................................................66
Reference list.............................................................................................................................67
Appendix I: Questionnaire......................................................................................................77
Appendix II: Research authorization letter............................................................................81
Appendix III: Plagiarism report.............................................................................................82

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ix
TABLE OF FIGURES
Figure 1.7 Conceptual framework.....................................................................................6
Figure 2.2: Integrated Marketing Communication Process.............................................17
Figure 2.3: The Hierarchy of effects model.....................................................................19
Figure 2.4: The Communication effects pyramid Model................................................21
Figure 2.6: Commission Method from Media.................................................................31
Figure 2.5: In-house Designing Model............................................................................33
Figure 2.1: Gender of respondents..................................................................................45
Figure 2.2: Age of respondents........................................................................................46
Figure 4.1 Scree Plot of the effects of Political, Economical, Legal, Technological and
Government.....................................................................................................................48
Figure 4.2: Scree Plot of the relevance of the advertising agencies in today’s Business
Environment....................................................................................................................51
Figure 4.3: Scree plot of the applicability of the models used by advertising agencies in
Harare..............................................................................................................................53
Figure 4.4: Scree Plot of the effects of the new media on the growth of the Advertising
Industry............................................................................................................................56
LIST OF TABLES

Table 3.1 Advertising Agency’ clientele base.................................................................36

Table 3.2 Distribution of the sample size........................................................................37
Table 4.1 Rate of response..............................................................................................41
Table 4.2 Reliability Test: Case-processing summary....................................................42
Table 4.3 Reliability statistics Reliability Statistics........................................................42
Table 4.4: Normality Test................................................................................................43
Table 4.5: KMO and Bartlett's Test.................................................................................44
Table 4.6: Gender............................................................................................................45
Table 4.7: Age.................................................................................................................46
Table 4.8: Communalities of the effects of Political, Economical, Legal, Technological
and Government on the growth of the advertising industry in Harare............................47
Table 4.9: Total Variance explained on the effects of Political, Economical, Legal,
Technological and Government.......................................................................................48
Table 4.10: Rotated Component Matrix of the effect of Political, Economical, Legal,
Technological and Government on the growth of the advertising agency in Harare......49
Table 4.11: Communalities of the relevance of the advertising agencies in today’s
Business Environment.....................................................................................................50
Table 4.12: Total variance explained on the relevance of the advertising agencies in
today’s Business Environment........................................................................................50
Table 4.13: Rotated Component Matrix for the relevance of the advertising industry in
today’s business environment..........................................................................................51
Table 4.14: Communalities of the applicability of the models used by advertising
agencies in Harare...........................................................................................................52
Table 4.15 Total variance explained on the applicability of the models used by
advertising agencies in Harare.........................................................................................53
Table 4.16: Pattern Matrix on the applicability of the models used by advertising
agencies in Harare...........................................................................................................54
Table 4.16: Communalities on the effects of the new media on the growth of the
Advertising Industry........................................................................................................55
Table 4.18: Total Variance Explained on the effects of the new media on the growth of
the Advertising Industry..................................................................................................56
Table 4.19: Rotated Matrix on the effects of the new media on the growth of the
Advertising Industry........................................................................................................57
Table 4.20: One sample test on the obstacle hindering the growth of the Advertising
Industry in Harare............................................................................................................57
Table 4.21: Hypothesis Test Summary............................................................................59

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ABBREVIATIONS

Ad Advertising
ADMA Association for Data-driven Marketing and
Advertising
Ads Adverts
Ad agency Advertising agency
MAZ Marketers Association of Zimbabwe
ZAMPS Zimbabwe All Media Product Survey
ZARF Zimbabwe Advertising Research Foundation
LIST OF APPENDICES

Appendix I: Questionnaire
Appendix II: CUT authorization letter
Appendix III: Plagiarism report
 CHAPTER ONE: INTRODUCTION

1.1 Introduction
The obstacles being faced by advertising agencies that are hindering the growth of this industry
in Harare have prompted this research. This chapter will focuses on the background of the study,
the statement of the problem that acknowledges the existence of the problems being faced by
advertising agencies in Harare. It will also highlights the consequences of these challenges on the
growth of the whole sector, research objectives, research questions, research hypothesis,
significance of the study, limitations, delimitations, assumptions of the study and the chapter of
the summary.

1.2 Background of the study

In the beginning of the 20th century, corporates across the world started to spend numerous
millions budgets on advertising. With all of these monies, advertising began spreading the gospel
of consumption beyond the boundaries of language and nationality with advertising agency
acting as the catalyst. In 2007, spending on advertising was estimated to be over $ 150 billion in
the US and $ 385 billion worldwide, and the later to exceed $ 450 billion by 2010 (Huma
Z.Mujeeb, 2014). This have ultimately increased the reliance and significance of advertising
agencies in Zimbabwe and any other countries around the globe. Robert W. Bly (2010)
delineated that the core reason for the surge in expenditure on advertising material was due to
lower cost of selling, effective communication, the ability to reach hidden and untapped
purchasing influences, creation of a primary attractiveness, searching unimaginable prospects,
and the ability to open up new markets. Throughout the history of the art of selling according to
an advertising oracle Leo Bennet, the advertising highway has been littered with success and
failures (Provost, et. al, 2014). The growth has been affected by the dynamics that have evolved
overtime

In the beginning of new millennium, the advertising industry also experienced revolutionary
changes of any era in the history of the advertising and marketing communication in the World
and in Zimbabwe to be particular. These vicissitudes are motivated by encroachments of
technology and developments that have steered the swift growth of communication through

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interactive media platforms, predominantly the Internet. Although this was a breakthrough, many
agencies in Harare were forced to shut down in the event of this revolutionary transition period.

The idea that companies do not advertise because they are big and not because of the fact that big
companies get big or grows due to advertising, have affected active up take and the degree at
which small companies are willing to advertise. This have affected the growth of the advertising
industry because in Harare they are more MSME’s than well-established or big companies are.
The failure of these Micro Small and Medium Enterprises to utilize or to invest in corporate
communications have end up affecting the growth of the advertising industry.

There is still hope in terms of the growth of the advertising industry in Harare, despite the
strenuous changes being faced by companies in the advertising industry. Still, the splendid
promotional mix is undoubtedly in misfortune because of the political, economic, social,
technological and internal forces that are posing tensions that are impeding the growth of the
advertising industry as a whole. Although the crisis may seem as if it is temporary, nevertheless
they are flawless symptoms that shows a firm structural change that is happening in the industry.

Typically in Zimbabwe, mass marketing (advertising) has been weakening for quite some time
now mainly because companies are not willing to strain their budgets. Furthermore, they are
woes in the media houses and broadcasting industry that produces newspapers, magazines and
other print communication, and the local television is falling in the same tarn. Television
advertising is no longer influential and does not have the same impact like what it used to when
the local television channel/s (ZTV, Joy TV, and Channels 2) were vibrant, glittery, and well
thought out television commercials attested to be the prevalent sales vehicle that humanity had
ever designed. Shoaib (2007) mentioned about Media inflation stating that ‘the more the
channels, the Less the viewers’. The average number of Media inflation in Zimbabwe is sitting at
21 % according to ZAMPS publication of 2019, and industry estimation were 31 % in 2019. The
three older TV channels (ZTV, JOY TV, and Channels 2) tremendously increased the rate of
advertising up take by a significant amount. Advertising industry started flourishing with the
advancement of technology like the advent of Radio, TV Internet and advancement in printing
technology (Wang, et. al. 2019).

The invent of internet did not only snip the eyeballs away from the traditional media as well as
fragment media consumption, but it also made us smarter. While it has always played an
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important role, word of mouth has now become our most trusted source of information and
online review production and use is at an all-time high. People trust their peers more than brands
or business spokespersons. The abuse at the hands of advertisers has made people in Harare
perceptive and less permeable to shiny, corporate messages. In an era of transparency, selling
snake oil has become an impossible feat. Of course, human beings can still be manipulated by
fake news and misleading advertorials, as the post truth era might reveal -but brands are less able
to induce us to buy with ads.

Advertising heydays are vanished and digital advertising, despite their ability to personalize
content through big or small data, will never bring it back. The rise of adverts blockers website
browsers, put in order to create resistance to colonization of hyperactive personal spaces, and
people paying for streaming content platforms like Spotify or Netflix, are all clear signs and
indications that people do not really like adverts. Syed Amir, et al (2011) cited that the digital
revolution is readily reshaping the advertising industry by altering consumer interaction with the
media and advertising. He also contends that bold language and ever-bolder challenge of driving
a new future of advertising industry.

The business environment that is not friendly for business to operate in is hindering the growth
of the advertising industry. In the early 2000s during the hyper-inflationary period, the
advertising industry suffered the heaviest blow in the face as the companies were cutting their
marketing budgets. This was not only the case, Accounts payable payment period were shortened
or reduced as suppliers wanted to maintain the time value of money and to avoid their money
from losing value, this was also the case with the real estate agency. The receivable collection
period increased as customers or clients took time to make payments because of inflation. This
volatile environment did was not conducive for many agencies to operate in thus many were
forced to shutdown. Kohler, S. (2013) agreed that, the dollarisation crisis penalized cases of
economic mismanagement, brought disciplining effects on government of Zimbabwe although in
a limited way and cleared the way for necessary reforms.

1.3 Statement of the problem

The advertising industry’s story over the years has not been quite auspicious. The new small
creative advertising agencies not being given the opportunity to showcase their works, inflation,

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firms (clients) not willing to spend more on advertising (the expenditure being made by
advertising is income to the advertising industry or agencies). The currency reforms that are not
creating a favorable business environment to operate. The use of power and politics and
corruption has also choked the growth of the advertising industry. There is no colossal industrial
base in Harare. Most of the industries if not all are either on the sick bed or closed. The
operational units are considering short cuts in a bid to save advertising costs and for this reason
alone, the advertising quality is heavily affected. The major problems that are affecting the
advertising industry in Harare include the following bad debts, inflation, currency reforms, and
corrupt tender selection process, employing of non-professional personnel in advertising
agencies, brain drain and late payments by clients. These problems have ultimately restricted the
success and growth of the advertising industry in Harare. Advertising agencies in Harare are also
facing problems from the various associations, and regulatory bodies, which include ADMA and
MAZ. Apart from inflation and corruption, the advertising agencies are also facing stresses from
their own clients or media houses who expects other services to be free of charge for example
marketing or public relations consultancy, market research and competitor analysis, website
developments and hosting, and assisting the distribution, this however increases the cost incurred
by the advertising agency. Although these issues cannot be resolved with one go in a bid to
ensure the growth of the advertising industry, efforts ought to be made to address these
problems. For starters, there is need to moderate the possibilities of bad debts, and to resolve the
problematic consequences of late payments predominantly from clients. Furthermore, there is
need to increase in the agency commission rate on media and other publications. Growth of the
adverting agencies and expertise development of professionals in the field will absolutely
contribute significantly to the growth of industry in Harare.

1.4 Research Objectives

1.4.1 Main research objectives
1. To examine the factors affecting the success of the advertising agencies in Harare.

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1.4.2 Sub Research objectives
1. To examine whether the advertising agencies are relevant in today's business
environment.To also examine the applicability of the models being used by advertising
agencies in Harare.
2. To look at how the new media have affected the growth of the Advertising industry in
Harare.

1.5 Research question

1) Are advertising agencies doing enough so that they remain in existence for a foreseeable
future
2) Is the government instigating policies to ensure growth of the advertising?
3) How well equipped are the advertising agencies?
4) Are advertising agencies still relevant in Harare?
5) Are the marketing models viable Harare?
6) Is the tendering process being done with due diligence and transparency to ensure that those
who are well equipped are getting the jobs?
7) Are startup agencies actuality given the opportunity or the platform?
8) How significant is the advertising industry in today's business setup?
9) What can be done to guarantee the growth industries grow in Harare?

1.6 Research Hypothesis

H1: New Media have a positive effect on the growth of the Advertising Industry.

H2: Advertising Models have a positive effect on the growth of the Advertising Industry.

H3: Political environment, Economic environment, Social environment, Legal environment

and Government intrusion have a positive effect on the growth of the Advertising Industry.

H4: In-house designing have a positive effect on the growth of the Advertising Industry.

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Figure 1.7 Conceptual framework

PESTLEG
H1

Advertising
Models
H2
Advertising
Industry
H3
New Media or
Digital systems
H4

Relevancy

Of Ad Agencies

Source: Raw data

1.8 Significance of the study

This research focuses on the factors that are hindering the growth of the advertising industry in
Harare. The study will help the readers understand the factors impeding the growth of the
advertising industry in Harare. This research will benefit the researcher, advertising agencies
(both startups and the ones which are already in the industry), Aspiring entrepreneurs, investors,
government and learners and other learning institutions (a copy of this study will be submitted to
the CUT library, the college authorities, students and other stakeholders can use the results for
reference to their research or studies).

1.8.1 Advertising agencies

This research will help both startups and already established the advertising agencies with the
information on the sources of the challenges that are affect the industry as a whole and the
possible solutions that they can adopt in order to remain in business. It will help the advertising
agencies in planning process, decision-making and to come up with effect strategies that will
guarantee their success in the industry.

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1.8.2 Entrepreneur and Investors
More so, this research will also benefit other aspiring entrepreneurs and investors. This is
because when entrepreneurs are going through the thought process they need to have a full
appreciation of the challenges or problems in a business before they can venture in. Not only
that, this research will also help investor with information on whether to invest their monies in
this industry or not. Furthermore, for some of the companies that have been forced to shut down
and are considering coming back in business they can use this research to have an understanding
on the challenges and opportunities that are there and how to go about the challenges in the
industry.

1.8.3 Government and other regulatory authorities

This research can be used by the government and other regulatory bodies as a yard stick when
they are making industrialisation policies not only for the advertising industry, but also many
other industries which are suffering the same fate. This will enables the state to effectively plan
and come up with turnaround strategies that encourages industrialisation and even foreign direct
investments. All people will definitely benefit through the creation of employment from the then
stimulated industry.

1.9 Scope of the study

This study aims at reconnoitering the relapses and problems being faced by advertising agencies
in Harare, which are disturbing success and growth of the industry as a whole. Advertising
industry is not somewhat new in Zimbabwe but a dawdling growing industry in the private
sector. There are massive opportunities for growth in this industry as companies are now relying
on creative works more than ever, and for advertising agencies to handle their marketing and
advertising. Technological progression has created oodles of opportunity for expanding
advertising business in Zimbabwe but it there is stagnant growth of this industry in Harare.

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1.10 Delimitations of the study
The Advertising agencies are entirely the researcher’s area of study in trying to determine the
factors affecting the growth of the Advertising Industry in Harare. For correct and more accurate
results, there is need for a synergy between all the key stakeholders in the Communication
Industry under study. This study only concentrated in Harare and not focusing in other areas like
Bulawayo, Gweru and Mutare amongst many other cities. Only agencies in the northern part of
Harare were selected, as they were conveniently located near researcher. This research was done
over a period of five months from March 2021 to July 2021.

1.11 Limitations of the study

This research focuses on Harare simply because the distribution of advertising agencies is mainly
centered in Harare. Thus, agencies understudy are located in Harare.

1. The main limitation of the study is the novel corona virus that is actually making it quite
difficult for me to move around doing my research. Due to the restrictions put in place
most companies have consider working remotely, and in some instances for those who
are going to their offices, they do not want any visitors.
2. In light of the latter, some of the information will be collected from textbooks, Internet,
and articles. Therefore, there is a possibility to get some controversial information, which
could affect the output and quality of this research.
3. In pursuant of the above, assumptions will be made in certain scenario.

1.12 Assumptions of the study

 The researcher assumed that the sample size selected represents the entire population and
all the respondents were given an equal chance by the researcher.
 The researcher also assumed that the theoretical foundation of this research is complete
and it reflects the true phenomena under study. This can be obtained by referring a
variety of articles and texts.
 The topic understudy and all the variables are realistic, stated clearly and they are
measurable.

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  All the participants were volunteers and they were permitted to withdraw from the
research at any time without any no ramifications. The participants are not forced to
identify themselves and they should provide reliable and honest information.
 All the instruments that were designated to use in this research were appropriate to gather
the data from the main problem and to be unquestionable certain a pilot survey was
carried out.

1.13 Summary of the study

This chapter introduced the topic and gave a background of the study, stated the problem
statement and presented the conceptual framework. It also delineated the research objectives,
research questions, research hypothesis and the significance of the study. The next chapter is
going to focus at the literature review.

Page 9
 CHAPTER 2: LITERATURE REVIEW

2.0 Introduction
The advertising industry is increasing at a decreasing rate owing to the socio-economic
challenges in the country. Despite the socio economic challenges in Zimbabwe, the advertising
industry with the current socio technological it should be growing but the opposite is true. Over
the years, advertising agencies has been the fuel that was fueling all the successful marketing or
advertising campaigns in Zimbabwe. This has contributed marginally to the success of big
brands like NetOne, TelOne, Econet and many other well-established organisations in
Zimbabwe.

2.1 Definition of terms

2.1.1 Advertising
An Advertising Agency is a services professional that is devoted to producing, planning and
managing any form of advertising. Advertising Agencies are independent from their clients
(Advertisers) thus, they provides an external opinion to sell their clients’ products or services.
This is done with a robust marketing, rebranding or branding, and sales promotion strategies for
their clients. These Agencies come in varying sizes with the minimum one being freelancers
agencies. Tasnim, R., & Yahya, S. (2013), stated that advertising as any paid form of non-
personal communication around a business, service, product or an idea by a recognized
benefactor. Sands, S. et. al (2010) also supported the notion that advertising is somewhat paid
communication offered through diverse media vehicles, which comprise of television, radio,
magazines, newspaper, or billboards. Akanbi, P. A., & Adeyeye, T. C. (2011) suggested that, the
main role of corporate communications is to make known the availability of a product or science
to sell. In addition to this however, advertising achieves some other worthwhile and significant
roles in any country. Brierley, S. (2015) recommended that, whether we stressed the art or
discipline of advertising, we concede the fact that like many other fields of social endeavor,
advertising is becoming measurable and technical. Advertising is a non-personal presentation of
information, promotion of ideas goods or service, through media vehicles (Social Media, Wired
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transmissions through radio or television) in a persuasive or informative way that stimulates the
choices that people makes or consumer behavior. Nonetheless, advertising deals with individuals
and its main products are artistic expressions of human creativity.

Taylor, C. R. (2010) highlighted the participants in Integrated Marketing Communication

process.

Figure 2.1 Integrated Marketing Communication Process

Client

Advertising Agency

Marketing Communication Specialist

Organization

Direct Response Sales Promotion Public Relations Interactive

Agencies Agencies
Agencies Agencies

Source: Syed Amir, et al (2011)

Figure 2.1 Integrated Marketing Communication Process

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2.1.2 Advertising Agency
In this research study, the term “Advertising industry” refer to a bionetwork of advertising,
public relations, marketing, and communication agencies in Harare. Therefore, the advertising
industry is deals with the corporate communications used on all media platforms. When defining
an Advertising Agency in house communication departments are excluded in this research.
Mohanty, S., & Routray, S. K. (2016) described advertising industry as an industry that
encompasses all the activities in which companies engages in a bid to reinforce their relationship
with their stakeholder. The studies done by Oksiutycz, A., & Azionya, C. (2017) supported the
tendency around the convergence of the marketing communication, public relations, and
corporate communication.

An advertising agency is a service business dedicated to creating, planning and handling

advertising (and sometimes-other forms of promotion) for its clients (Terence, A. 2010). The
advertising agency comprises of creatives, media managers and copywriters who facilitate in the
creation and placement of advertisements in the appropriate media for the targeted audiences. In
essence, an ad agency’s staff may include artists, writers, media analysts, researchers and others
with specific skills, knowledge and experience that can help market the clients, products or
services (Fouji, M. H. 2013). Advertising agencies works within their client’s marketing or
advertising budgetary confines. Agencies are independent from the client and provide an outside
point of view to the effort of selling the client's products or services. Fuchs, C. (2015) asserted
that advertising agencies usually operate independently from their clients and sometimes handle
the overall marketing and branding strategies and sales promotions for its clients.

Modus operandi of agencies in Harare is mainly centered on providing creative advertising

services to their clients (Oksiutycz & Nhedzi, 2019), advertising agencies create, plan and handle
advertising for its customers. Corporate communications agencies also do marketing and
promotional works on behalf of its clients (O’Donohoe, S., & Kelly, A. 2010); and may
sometimes also handle overall marketing and branding strategies and classified ads for patrons
counting on the customer's needs (Hackley & Hackley, 2021).

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2.1.3 Creativity
In the marketing spectrum creativity is the generation of new ideas, (Cheng & Francis, 2017).
More so, as the ad agencies are becoming more creative they are likewise have become proactive
rather than reactive in nature. Due to creativity, advertising agencies are no longer just wait for a
brief from client to do work but they are now pitching and proposing new creative artworks to
their clients proactively. The main role for agencies is to work with clients to develop and rollout
360 advertising campaigns. .

2.1.4 Marketing Innovation

Marketing innovation is an enactment of novel or new marketing technique or method
comprising of significant alterations in the design, placement, and packaging, promotion,
positioning or pricing of a product. Syed, A. (2011) revealed that the innovative and
revolutionary digital technologies are already reshaping the advertising landscape by altering
consumer buying behaviour with the media and advertising. Yasir Riaz, (2008) argues that, the
new future of advertising projects are being fueled by the challenges emanating from bold
language and ever-bolder challenges. This type of innovation aims at improving customer needs.
More so, it also aims at creating new markets, or freshly positioning a company’s product or
service in the market, with the motive to drive the company’s sales over the roof. One of the key
differentiating attribute of this type of innovation in comparison with other type of innovations is
the application of a marketing strategy that has not been used beforehand by other firms.

2.1.6 New media utilities

Keenan, M. (2006) defined new media as a product or service that provides information by
means of various forms of electronic communication accessible to the use of computer
technology. the content that is readily available on demand on the Internet or any other digital
platforms. The new media also facilitates people to access any content on devices like television
set, computers, laptops, cell phones, tablets and smart watches amongst many other devices
known to humanity. This allows immediate interaction and likewise enabling societies to share a
lot of content or information online within a short period.

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2.1.7 Marketing Campaign
A Marketing Campaign, which is also known as a Marketing Strategy, is a longstanding tactic
that seeks to promote endorsement or active uptake of a product or a service by means of various
media vehicles. The different types of media vehicles that can be used in a marketing campaign
include television commercials, print communications (Newspapers, magazines, billboards,
flyers, corporate brochures, leaflets and poster amongst many other things), radio (Dj mentions
and radio adverts), corporate wear (t-shirts), and digital platforms (social media and any other
internet based marketing platforms). The main objective of a marketing campaign is to create
noise in the market and amplify the sales of a precise product. Nevertheless, marketing strategies
or campaigns do not necessarily resonates around a particular product; it also seeks to improve
the entire image of the whole brand.

Marketing campaigns can be classified into different categories namely

1. Traditional media campaign

2. Seasonal push campaign

3. Product launch campaign

4. Brand awareness campaign

5. Rebranding campaign

6. Brand launch campaign

7. Contest marketing campaign

8. Email marketing campaign

2.2 Theoretical Framework

2.2.1 The Applicability of the Marketing Communication Model being used by Advertising
Agencies in Harare
Marketing or corporate communications model that are used by companies inform the strategies
and the operations of the company as a whole. Most of the models that are currently in use are
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borrowed from other successful or developed countries like England, USA, and South Africa
amongst many other countries. The feasibility and applicability of the marketing models in
Harare is highly questionable. Most of the model works very well in one country and might not
work well in any other country.

2.2.1.1 Marketing Communication Model

The marketing communication model that was initiated by Shannon and Weaver in the year 1949
was based on the old mathematical communiqué theory. This theory was established to
demonstration just how electrical signals can be transmitted from one point to another. This was
then presented as a communication theory inside the human communication channels after
Weaver assumed that it could also meet people’s demands (Barlow, 2012). This theory after its
introduction, have been recognized as a useful transmission model especially in the advertising
industry and have been adapted extensively around the globe. Dwyer Mayor cited by Firth, T.
(2015) argued that, throughout the ages, this model have advanced and transformed the
communication process model. Most of the models that are being used in the advertising industry
today are all build on the bases where a encoder have to be in existence to send a message to a
decoder or receiver. According to the Balmer and Wang, W.(2016), encoder is described as, one
who creates the purpose or the need, selects an appropriate message to communicate using the
right channel to reach the targeted audience at the right time anywhere.

Effective advertisement involves a number of different components in constant contact with each
other. The seven key components in the communication or advertising model: dispatcher or
encoder, message, receiver or decoder, feedback or response, channel or passage, context and
interference or noise. These seven key components are relatively essential in the course of
communication and minus one of them, the process will not be complete (Firth, 2015). Another
vital component in the communication process is the noise or communication barriers (noise is
an all-pervading element). Noise is a consequence of misinterpretation or misunderstanding of
the message. Noise is anything that disturbs the follow of information.

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Many agencies in that advertising industry in Harare have casted a blind eye to the fact that not
all the message get through to the targeted audience. Smith, et. al, (2014) agreed that in the
corporate communication model not all information gets through. The decoder or the receiver
may just choose to just ignore the message being communicated despite the source, information
and the channels used are right. It is vital that the consumer interprets the message correctly. The
Shannon and Weaver model recognize noise as an integral part in the communication channel,
but utters not anything on how to work around disruption of noise (Taylor and Smith, 2012).

Another huge obstacle outside the advertising process nowadays is how clients or customers are
engaged. Even though several claims originating from the external communication process views
advertising as a two-way procedure, there are individuals who views it as purely one-way
communication process. Feedback in mass communications is sometimes hard to get and
measure, and in such instances, the sender might not have info on how the message was received
(Taylor and Osland, 2012). In a bid to avoid noise in the communication process, it is vital for
the sender or advertiser to be in a position to understand wholly the target audience well enough
so that they will be able to encode preferred communications that will guarantees little or no
noise in the communication channel (Copley, 2014, p. 29). Advertising agencies in Harare are
rolling out adverts without taking into consideration the perceptions and preferences of the
market, thus customers will end up reacting positively to the message. Advertising sector or
industry probably have the utmost challenging task to avoid noise in the marketing process
(Taylor and Osland, 2012). Effective advertising can be achieved when advertisers are fully
aware of how to convey the message to the targeted market. In simple terms, researchers and
specialists throughout the years were trying to derive models and theories that demonstrates how
customers react to the any advertising they are exposed to using any media platform. Rosenberry
and Vicker, (2017) established that, understanding different behavioral patterns that are exhibited
by customers at different levels helps the advertiser to construct a communication or advert that
will be acceptable by the market.

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2.2.1.2 Integrated Marketing Communications Model
The Integrated marketing Communication is a strategic business model that is generally used by
Advertising Agencies to come up with a plan on how to develop, execute and assess coordinated
brand communications initiatives over time. This model also takes into account the contribution
made by consumers and their prospects, workforce, connections ad partnerships and other key
pertinent internal and external stakeholders. The main objective of this model is to create both
short-term and build long-term financial returns for a brand and more so shareholder value.
There are a number of imperative facets braided in the definition of Integrated Marketing
Communication. The Integrated marketing Communication model is a continuous business
procedure rather than just a strategic integration of numerous communication undertakings. This
model is being adopted by micro, small, medium and large agencies in Harare and is popular for
marketing consumables and other Business-to-Business marketing services.

Figure 2.2: Integrated Marketing Communication Process

Advertising Sales Brand

Promotion Awareness

Direct
Marketing Brand
Marketing Brand Image
Communications Equity
Program

Personal Brand
Selling Responses

Event
Management Brand
Public relations Relationship
and Publicity

Source: Tuckwell, (2013)

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2.2.1.3 Attitude Model
Companies have postulated numerous methods to quantifiable assess the efficacy of advertising
and advertising agency. Little et al. (2009) argued that advertising is seen to be effective once it
yields purchases, while others scholars like(Abu Dabrh, Waller, Bonacci, et al., 2020) suggested
that there is a hierarchy with stages, which encompass knowledge, awareness, preference,
interest, conviction, purchase intent and eventually the purchase. This research is in harmony
with the additional perspective, as clients or purchasers do not at all times respond immediately,
but they receive relevant information, advantageous attitudes towards the corporates and their
brands are molded prior to acquisition (Todorova, 2015). Various scholars have constantly
researched for attitudes towards advertising agency over time, as it was initially hypothesized
that clients go through a hierarchical attitude stages in retort to any advertisement. Conversely,
this was only in the current development era.

2.2.1.4 The Hierarchy of effects model

The hierarchy of effects model is an attitude model that was established by Steiner and Lavadge.
This model is used to measure how effective advertising is. Conferring to the model a consumer
do not change from being entirely dispassionate to become a converted to purchase the good or
service in one stage. The Hierarchy-of-effects model was formulated to illustrate the stages or
phases that a marketer or an advertiser presumes that very customers goes through before they
make the real or final purchase (Weng and Huang, 2018). This model is established on the bases
of six stages, that must are supposed to be completed in a chronological way (See Figure 2.3).
The huge variance between other models and this one is about not only the phases, but also then
the opinion on the manner to pass them.

Hierarchy of Effects model six phases in the following order:

1. Nearby to buying, yet still far from parting ways with their monies, these customers are
simply aware of the existence of the brand or product.
2. The next phase are potential customers who knows about the product or brand and what it
has to offer.

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 3. Once a customer is aware and possesses the knowledge of the product or brand, they start
to develop an attitude toward the brand or product.
4. Those who have a favorable attitude towards the brand or the product will start to like the
brand or product, but still not willing to pay for it.
5. It is at this phase were the customer develops the desire to purchase the product because
the customer prefers our product to other and they are highly convinced.
6. Finally, at this phase the attitude towards the product translates into real purchase.

Figure 2.3: The Hierarchy of effects model

Cognitive Awareness
Phase
Knowledge

Liking

Preferences

Conviction
Affective
Phase
Purchase

Behavioral
Phase

Source: Wijaya, (2015) The development of hierarchy of effects model in advertising.

The model comprises of three phase of attitudes as highlighted above. These three main
components of attitudes are cognitive affective and behavioral (connotative). Cognitive affective
is the philosophies about an object or a brand where possible consumers become aware and gain
knowledge, a typical example is an advertised brand. Affective is the optimistic or pessimistic
feelings about a specific brand, for example, endorsement as an outcome of a promoted brand.
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The last component is the behavioral or connotative attitude that is a behavioral response towards
a particular brand, for example, when a consumer take an action by purchasing a brand.

The Hierarchy of Effect also takes into consideration impulse buying that customer makes, not
ignoring the fact that impulse buying is done on inexpensive goods these phases are vital for the
advertising agencies to include. This model operates under the proposition that advertising
happens over time, and might not lead to instant response or purchase. In support of this notion,
Nangoy and Tumbuan, (2018) attested that, the idea that the effects of advertising are noticeable
over a long period and adverts might not contribute to instant behavioral response. Customers
need to fulfil each phase before (s) he be able to move to the following phase in the hierarchy
(Taylor, 2021 p. 146).

2.2.1.4 Criticism of the hierarchy of effects model

MacKay, (2019) cited that, models that are built on the bases of the hierarchy of effects are very
useful but not conclusive. This is mainly because are of the fact that they do not take into
account the following (Russell-Bennett, Rundle-Thiele, and Drennan, 2016):
1. Not all consumers go through all phases,
2. The phases do not occur in sequential hierarchy,
3. Impulse buying contract the procedure.

This model assists advertising agency to identify the phases that consumers commonly went
through before they purchase, nonetheless cannot necessarily be used as an apparent guideline
(Taylor, 2021). Consumers do not follow a linear process when buying a product. Not all
consumers went through all the phases prior to purchasing a product, some might stop at a single
phase, while others might go back numerous phases before purchasing the product. This model is
missing a loop from top to the last phase. A loop exhibits that a buying is not the last step, but a
point in the continuing relationship with the consumer (Taylor, 2021). How an advert is designed
has a massive consequence on the outcome of the campaign. Advertising campaigns sets the
demand high on the creative, thus to put it all into the perspective of model will destroy the
creativity (Mbuba, 2015).

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Figure 2.4: The Communication effects pyramid Model

Increasing Audience

Introductory Adverts
Example Brochures or
Flyers

Summary Materials
bearing the key message

Detailed and tailored

information

Original research material

Source: Zhang, (2006): The Pyramid Model of Communication Interpretation.

The hypothetical attitudinal model that was established through the studies on the traditional
advertising. According to Safko (2010) and Mihaela (2015) agreed on the notion that most
researches do not conform to the standards requisites of the Integrated Marketing and
Advertising. The traditional advertising are basically one-way communication, on the other hand
with the dawn of the social media platforms which give room for interactions, the traditional
tactic is an incomplete way of communicating with customers (Lin, Jung,McCloud et al., 2014).
Consequently, if this model is used together with the hierarchy of effects model to cover the
research cracks.

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2.2.2 Empirical Evidence
A similar study on the applicability and relevance of the models being used by advertising
agency was carried Karlson. Karlson, (2007) carried an investigation on how well do advertising
models and theories can be transferred from text into reality. Her finds showed that there is a
greater need to adjust the advertising model and create so that they can be applicable in today's
market environment. Authors Jobber, (2005) and Hackley, (2005) uttered that advertising can not
be put in a confined frame of models. According to the these authors it is not right due to the
fact that advertising is creative thought process which does not follow procedural steps stated by
models. However, Munoz, (2002) stated in his article that there is no definite way that state how
advertising should work but the hierarchy of effects offers some sort of direction.

2.4 Challenges that new media have posed in the advertising industry in Harare
The advertising industry in Harare was steadily improving as a result of the introduction of
newly innovative media communication systems. Mano, (2017) articulated that in 2016, Harare
recorded significant growth in the number of internet penetration and mobile subscriptions. The
new media communication systems has transformed the advertising industry’s landscape and
how the world works significantly (Grainge and Johnson, 2015). Despite all the amusing benefits
that were brought about by the new media, numerous challenges have surfaced which threatens
the existence of advertising industry in Harare. Lee and Lau (2018) point out that new media has
posed hurdles to the traditional or old-fashioned advertising agencies due to the evolution of the
Internet and mobile technologies. Lewis and Porter, (2010) also agreed by mentioning that the
new and innovative media systems has brought with it significant implications that have
threatens the growth of the advertising industry, predominantly because the new media
communications systems are easy to use and cost effective. This is the reason why they are an
ideal platform for advertising, marketing or publication thus grabbing advertising agencies’
business as clients can now do it themselves.

Advertising agencies in Harare also faced hurdles that were brought about by the innovative
media and delivery systems that delivered financial outcomes for clients to see. Using integrated
media delivery systems such as Twitter, Facebook, and Instagram, Advertising Agencies that are
quick to response to change have integrate the social media in their 360 campaigns and use these

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to convince clients that believes in social media can effectively deliver better results than use
press. Deuze, (2015) mentioned that changes in consumer behavior and technologies have
steered substantial implications in the advertising industry. The new media has stimulated to the
need to re-look at the strategies that agencies are using and come up with better ways to
stimulate customer engagement and effect communication. In tandem with view Deuze, (2015)
point out that the new media systems have forced agencies to go back the drawing board an
reconsideration new means of operating business and deviate from ancient ways of advertising
that worked very well without considering consumer’s views. Agencies in Harare are facing a
swamp of opportunities and threats. This is mainly because agencies are trying to upswing or
address the challenges of the new systems by operating in a manner that matches or surpasses the
threats.

Hensel and Deis, (2009) stated that advertising agencies are should try to figure out how the
social media can be used to offer clients with numerous marketing services. This tend to the
issue with agencies in Harare as only a few are modifying their way of doing business by
employing younger and smarter media thinkers however, many of these agencies in Harare are
still stuck in the same old ways which they used before. In one of his publications Levin and
Milgrom, (2010) further specified that several agencies in developing countries have not figured
how to use Interactive advertising. For instance, Web 2.0 precedes Web 1.0 yet many agencies in
Harare and their corresponding creatives and clients’ services groups are yet to be trained to
ponder about digital execution (Nhedzi, 2019). The main problem is the tactical and
philosophical culture rattle that exist between new media and advertising agencies in Harare.
Logically, De Run, Butt, Fam et al., (2010) advised that marketing agencies practices one-way
channel of communication targeted at outsized groups of customers that is different from the
digital delivery systems that offers an interactive or two-way communication platform. The new
media is considered as a multi-way communication that allows brands to speak and also listen to
their customers and observe how they are interacting with each other. Rehmani, and Khan (2011)
mentioned that strategic planning and creatives should try to include related communication
systems though, this can be achieved in a longer time. He further urges that the whole process is
costly since it may require the company to either engage new staff that are familiar with this
media or teach the already existing workforce on how the media is operated this initiative is not
cost effective. It can be debated upon that new technologies are customer centered on that it
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focuses in providing value for money to consumers while advertising agencies are focused more
on the business side and not on constructing a perpetual relationship with the consumer
(Coghlan, 2017). Agencies in Harare are asking their creative staff to all of a sudden undertake
and master new means of communications or advertising that is in contrast to all they have learnt
over the years. The staff’s morale is directly affected by the initiative that is counter effective.
Observing from a tactical point of view, according to Rehmani, and Khan (2011) indicated that,
advertising creatives in Africa traditional media is their primary focus and thus are not fused and
smart. Traditional advertising basis more on storytelling while internet shrewdness specialists
originate from a high-technological era therefore they are knowledgeable at work production and
interactive communication. Frith and Mueller, (2010) added that inside the traditional advertising
agencies, the creative teams that do the brainstorm sessions to come up with the creative
concepts for adverts are commonly not part of the wholly creative process. Most creatives in
advertising agency that are in Harare are basically told what to put in their artworks by one
decision maker whereas the new norm of the agencies across the world is that the designer and
involved in the creative process and for that reason they are part and parcel of the decision
making procedure.

Another reason why the growth of the advertising industry in Harare is restrained is simply their
state of inability and ill readiness of the agencies to create or produce the volume and quality of
content that is necessary for platforms like LinkedIn, Twitter, Facebook, logs, Instagram, and
YouTube.

2.4.1 Empirical Evidence

A similar study was also carried by the Syed Amir, (2017) on the effects of new media on the
growth of the communication industry in Peshawar. This research showed that the new media is
the fuel that has amplified the growth of the advertising industry in developing. Tandon, (2018)
also carried a similar study when he was looking at the growth of the advertising industry in
India. His research concluded that, the speedy development of social media (New Media) and the
mobile Internet has changed the way that businesses interact with their clientele and more
significantly how clients are shaping and influencing organisations and their brands.

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2.5 The Relevancy of the advertising agencies in today’s business environment
Advertising agencies are the lifeblood of the communication industry worldwide. In light of the
description of an advertising agency propounded by Marketing Advertising and Communication
South Africa (2016:4), Advertising agencies are enterprises whose main trade is conceptualism,
creativity and producing communication that fosters the marriage amongst organisations and all
the stakeholders. The advertising industry’s structure comprises of full time service agencies,
digital agencies, creative boutique or freelancers, in-house and media specialists. The list as
endless as it maybe, it also include database agencies, electronic-commerce, sales and promotion,
event planning, public relations and designing agencies (O’Guinn, Semenik et al., 2014). There
are contradictory suggestion about the prospects and the growth of the adverting industry Harare.
The Seo and Cho, (2016) predicted a 30% growth rate in advertising agency’s business and
forecasted the growth of the industry. Conversely, Quebra, et al., (2013) suggested that the
growth of the social media possess a nightmare to the traditional advertising agencies that has
affected the growth of this industry. The traditional mass media are suffering as clients are now
interrogating the role played by advertising agencies, the package of benefits they offer and the
costs associated (O’Guinn et al., 2014). The new media have allowed swift connectivity for
consumers. King and Reicher cited by Oksiutycz and Nhedzi, (2018) suggested that the new
media his has helped the consumer to have more powers that allowed them to be able to have
control over commercials or advertisements against the marketers’ interests. Even if agencies
have reacted by reinventing their will by changing their roles and services that they are offering
to their clients, these efforts have not produced the intended accomplishment (O’Guinn et al.,
2015).

The main thrust of the advertising agencies.have shifted focus from concentrating at increasing
sales and media coverage to become strategic agencies. The strategic process will include
building a strong brand with a reputable competitive image that is well positioned in the market
by means of a well thought out communication strategy. According to Wijaya, (2015) suggested
that, supporting cause related marketing that is able to influence the company policies and
decision making, will establish an engaging relationship with multiple stakeholders thus making
an agency more desirable. Lodge (2011) indicated that the South African advertising industry has
experienced a major revolution that transpired over the past years, which caused full-service
Page 25
agencies to fractioning into smaller specialist agencies. This have also happened to agencies in
Harare were one full service agency became a small “jack of all trade”.

The focus of the agencies has expanded from a concentration on increasing sales and media
coverage to a more strategic process that includes building the image, reputation, and brand of an
organisation; developing an integrated communication strategy; supporting cause-related
marketing; influencing policy and decision-making; and establishing engaging relationships with
multiple. Lodge (2011) noted that in South Africa, the industry has experienced the biggest
change seen over the last decade, where full-service agencies are fractioning into smaller
specialist agencies. The small agencies in Harare that are also known as “jack of all trades
agencies” are quick react to the changes in the environment unlike big specialist agencies or
larger full-service agencies who often succumbs to the global challenges because they cannot
react quickly to the dynamic needs of clients.

2.5.1 Empirical Evidence

Nhedza (2018) carried a similar study on the relevancy of the communication industry in
Zimbabwe. His findings showed that advertising agencies are still relevant in today's business
environment because they are still capable of providing strategies that are proving to be effect.
Tandon, (2018) in India the advertising industry is growing rapidly and steadily. According to
Tandon, (2018) this proves the fact that the advertising industry is still relevant in today’s
market.

2.6 The effect of Political, Economical, Legal, Technological and Government on the
growth of the advertising agency in Harare
Entrepreneurs who are heading agencies or even start-ups in Harare they are wholly aware of the
challenges in the advertising agency industry. Over the years, this has become the reason why
entrepreneurs are always thinking of creating thriving business organizations where they are
creating beautiful artwork and come up with strategies that avail client’s growth in their line of
businesses.

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2.6.1 Effect of the political environment on the growth of the advertising industry in
Harare
Verčič and Sriramesh (2009) suggested that the advertising industry is shaped or molded by the
country’s political system, legal system and the degree of social activism. He also supplemented
the significance of the country’s chronological legacy to this matrix. During the period of 1997
to 2008, there were deep political crises and the country lost more investor than ever before
(Mawoyo et al., 2012:115). Due to these series of political unrest the country was facing many
advertising agencies could not operate smoothly as most of them were run and controlled by
whites. In order to survive some of the agency were forced to employ citizens into their
companies (Hogg, 2019). The economy of Zimbabwe shrank by 40% owing to the political
unrest during period of 2000 to2008, which resulted from the chain of flawed elections (Kriger,
2012). In addition, Bertelsmann Stiftung’s Index (2016) showed that post-2008 the political
changes brought about some certain level of political stability as a result of the inclusive
government (GNU). In contrast Miller, (2010) sited that, there is still political instability
Zimbabwe that is fueling corruption that is affecting the advertising industry. Mamoyo (2012)
mentioned that the civil society is repressed, and media is under the control of the political elites,
thus, this has deleterious consequences to the advertising industry. Agencies are also forced to
put adverts in the state owned newspaper to support the government and to remain in business.
The government of Zimbabwe dominates the media space using its state-owned Zimbabwe
Newspapers, which controls seven other national and provincial newspapers (Oksiutycz &
Nhedzi, 2019). More so, the broadcasting landscape is tilted as the government also controls the
Zimbabwe Broadcasting Corporation (Mudavanhu, 2014).

2.6.2 Effects of economic environment on the growth of the advertising industry

Mbeke, (2009) sited that while many countries were affected by the market crush of 2008,
Zimbabwe was hit hard particularly because of the weak currency and lack of aptitude to engross
external tremors. Love et al. (2007), less economically developed countries were susceptible,
defenseless and fragile owing to their frail economic structure. This tough economic climate pose
a danger to the growth of the advertising industry. In addition, (Oksiutycz & Nhedzi, 2019),
mentioned that irrepressible dynamics of the Zimbabwean economic make it is hard for

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advertising agencies to control all that is in the external atmosphere. In light of the above many
agencies have succumb to these economic hardships. Due to these economic challenges, most
agencies in Harare have become multipurpose in nature as they are now providing a wide variety
of creative services to their clients.

Kroszner et al. (2007) pointed out that financial stability guarantees the success or failure of any
business in the near future. This assertion implies that if a business is not financially stable it
will not be able to do its day-to-day operations or in other words grow due to lack of funds to
finance themselves. Klapper and Love, (2011) observe the effect of banking calamities on the
growth of industries with diverse levels of reliance on external funding over the previous crisis
period of 2000–2010. This is one of the reason that is obscuring the success and growth of
advertising agencies in the country. Funds are required to ensure that small advertising agencies
or startup agencies are operating smoothly and expand their operations as well. The
infrastructure that is required to run a success advertising agencies is quite expansive, that is,
making it hard for small agencies to operate and to grow.

2.6.3 Effects of Government policies on the growth of the advertising industry

The government of Zimbabwe has tried to come up with policies that will enable companies to
run smoothly. Industrialisation policies should be structured in such a way the will influence the
industrial developments trajectories and performances. The policies that have put in place by the
government of Zimbabwe has proven to work for a very short period but not able to resuscitate
the industries (Kangira, 2007). The indigenization and empowerment policy was a necessary
move by the government to help infant or startups and protect the industries. Likewise, the 51-49
percent share ownership scared away many investors who had the ability and the potential to
setup their organisations in the country. Zimbabwean government have come up with economic
policies that have attested to be an encumbrance to numerous industries (Biti, 2017). Resultantly,
companies have shut down, numerous investors have shunned Harare and moved to their
countries, and some have relocated to other countries. The government of Zimbabwe introduced
the Indigenization Policy that was condemned by various economists. This policy was meant to
reduce poverty and anguish troubling most Zimbabweans, but it end up brought more harm than
joy. Shafaeddin (2010) mentioned that the infant industry theory is the dictating theoretical
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footing for industrial policy makers in developing countries in a bid to foster and protect
immature industries. Conversely, the successful use of the infant industry theory is subjective to
various circumstances, such as the political and the economic atmosphere in a specific country
(Shi et al., 2015).

During the Rhodesian regime and up to the early 2000 the people of colour popularized the
advertising industry that is no native Zimbabweans were allowed to run their own agencies
(Hogg, 2019). This affected the growth of not only the advertising industry but also many other
industries in Harare. The ones who managed to start up their own agencies faced the challenge of
getting clients and business. The Zimbabwean Airways at one point publicized that their
prominent advertising account was going to be managed by an advertising agency who has an
empowerment shareholding of at least 20% (Swarts, 2001). The advertising industry was
perceived as a white industry with agencies like TBWA, Bakers, Jupiter Drawing Room, and
Michael Hogg amongst many other agencies.

2.6.4 Effects of the legal system on the growth of the advertising industry.
The government of Zimbabwe in 2002 straight off the 2002 election signed into law the
Protection of Privacy Act and Access to Information Act. This law among many other thing,
brought about the Media and Information Commission. This commissions’ responsibility was to
accredit journalist, monitoring the media space, regulation, advise the Minister of information on
codes of standards, and registration of the mass media owners. According to a study carried out
by Moyo, (2003) showed that the Security Act, Public Order Act and the Broadcasting Services
Act, have played a pivotal role in reshaping the advertising industry. In addition to the above
Moyo, (2003) stated that foreigners are not allowed to own a media or adverting agency in
Zimbabwe. This have affected the growth of the advertising Industry in Harare.

Government plays a momentous part in keeping indigenous economy and indorsing industrial
growth (Jiangxi et al., 2004). According to Pfeil-McCullough, (2017), stated that industrial
regulation policies are basic mechanisms for the government to arbitrate and influence industrial
growth. Zimbabwe’s policy makers are failing to recognize the advertising industry as one of the
key industry that can contribute significantly in pulling up the development of the country’s
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economy (Hogg, 2019). Contrariwise, the government of South Africa introduced a key body
that performs on behalf of the advertising industry. This body is known as the Association of
Advertising Agencies and it represents over 90% of advertising spending by agencies in South
Africa. According to Hawkins et al., (2012) compelled that, policymakers in Zimbabwe needs to
shift their focus from focusing on consumption to start focusing on investment policy.

2.6.4 The effect of technology on the growth of the advertising industry in Zimbabwe
Syed Amir, et al (2011) cited that the digital revolution is readily reshaping the advertising
industry by altering consumer interaction with the media and advertising. He also contends that
bold language and ever-bolder challenge of driving a new future of advertising industry. The
technological improvements over the years have made smooth operations of the advertising
industry in Harare. According to Homwe cited by Mhandu, (2020) acuate that before the internet
was widely used in Harare, agencies would have to travel to clients, media house (Herald House
with material) and production houses to get and submit jobs. With the invent of technology,
agencies in Harare are now enjoying the flexibility brought about by technology. Improvements
in technology have rejuvenated service delivery in agencies in the past years, with an enormous
impact on the advertising industry. Nowadays, clients can be selected between an assortment of
technological alternatives to execute services for (Tulloch and Zinn, 2011). Concurrently,
agencies are employing new technologies at different stages on the service offering spectrum,
and service assist operations are aimed at ameliorating the productivity and quality of their
service delivery (Blumberg et al., 2015). In tandem with this view, Dabholkar, P. A. (2016)
mentioned that these technological evolution have transformed the way agencies and clients
interact with each other. This is possible because technology has opened up other new facets of
research aboutissements for investigating the markets (Dabholkar and Bagozzi, 2012).

2.6.5 Empirical Evidence

Mamoyo, (2012) carried out a similar research study where by he concluded that the use of
power and politics by political elites have affect the growth prospects of the advertising industry
in Harare. In a similar study carried by Paredes, (2017) where is was trying to establish the

Page 30
influence of theoretical approaches and technologies on advertising in Ecuador. His study
showed that the evolution of technology have contributed to growth of the advertising industry

2.7 Other challenges affecting the growth of advertising industry in Harare

2.7.1 Failure by agencies to merge with international agencies

Small agencies and unaccredited agencies are finding life difficult to operate in the Harare. Most
of the clients requires agencies that have experience and have strong financial backups, thus
startup agencies and unaccredited agencies are not getting the opportunity to display their talents
and works. More so another thing that have knotted the growth of the Advertising Industry
Harare is the fact that well established agencies merges or acquires the startup agencies, thus the
industry will on have few big agencies. Many credited agencies in Harare have collaborate and
merge with very big agencies from overseas. For example, Barker MacKommack merged with
Ogilvy and Mather to form what is now known as Bakers Ogilvy, Columbus merged with DDB
from South Africa and Jericho merged with Jupiter Drawing Room. Michael Hogg Young and
Rubicam that shut down about 10 years ago was a collaboration of Michael Hogg and the
American- based agency Young and Rubicam. In addition, Linsel merged with the British based
agency Satchi and Satchi.

2.7.2 Lack of marketing skills and market knowledge

It takes more than creativity to run a successful advertising company in Harare. The creative
artworks and execution are not all it takes, it require a well thought out full-on marketing
strategy that will be breakdown into a series of adverts for a campaign or a promotion and any
other communications. For example if a client wants a logo, the visual execution of the logo is
no going to convince the client but the rationale behind the logo and the visual will definitely
convince. This is mainly because the rationale provide the much-needed clarity know the
meaning of the logo.

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2.7.3 Lack Entrepreneurial Acumen
The success and growth of the advertising industry in Zimbabwe is mainly being affected by lack
of entrepreneurial and management acumen in the people who are starting and running the
advertising agencies. Lack of entrepreneurial acumen and management skills has caused many
agencies in Zimbabwe shutdown simply because of lack of entrepreneurial aptitude. The growth
of advertising industry and the survival of agencies requires entrepreneurs to posses certain level
of indefinite quantity of entrepreneurial acumen to be embedded in them (Ligthelm, 2013).
Pioneers of the advertising in Zimbabwe such as GTA (Garry Thompson and Associate),
Micheal Hogg Young and Rubicund, Such n Such and Lintus shutdown due to lack of
entrepreneurial ambitions and poor management techniques that is required to grow their
business. It is of utmost importance for entrepreneurs and managers of ad agencies to appreciate
management course to enhance their skills.

2.7.4 Commission Method from Media

In order for an Advertising Agency to have, an account with a publication house (for example
Zimpapers or Alpha Media) and get commission from media houses an Advertising agency has
to be accredited (Chisango et al., 2020). According to Mare, (2016), for an agency to be
accredited, it is required to satisfy or conform certain standards.

An Agency should have employees with adequate experience and expertise for advertising.

1. The agency should have a strong financial muscle.

2. The Agency’s sole business should be advertising.
3. The agency should not be controlled by other advertisers and media houses.
4. The agency should do several placements every week.
5. The agency’s media commission should not be passed on to client.

For a new agency to be accredited it should apply for accreditation by providing all the
appropriate documentations.

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Figure 2.6: Commission Method from Media

Commission Based Method

Cost plus Agreements

Compensation of Advertising Agencies

Percentage Charge

Fee arrangements

Incentive based payments

Source: Pickard, (2010): Revisiting the Hutchins Commission and the role of media in a democratic society.

Not many agencies are able to satisfy the media house’s requirements for accreditation and this
comes as a heavy blow at the growth of the advertising industry. Mare, (2016) cited that many
agencies in Harare are failing to put adverts in the newspapers because they are not accredited by
the Media Houses. More so, the agencies who are not accredited will use an accredited agency to
flight adverts on their behalf thus, they will not get their commission for the papers but the
accredited one will. According to Matura, (2018) ascertained that, unaccredited agency are not
earning money from their flightings because another agency is fighting on their behalf. Neff and
fry (2019) suggested that unaccredited agencies that do not generate revenues from flightings
adverts in the press might preclude the practice of billings as a measure of agency’s success.

2.7.5 Resistance to change

Failure to adopt to the dynamic business environment and the drastic shifts business trends has
affected the success of the advertising agencies in Harare. This have also contributed immensely
to the staggering growth of the industry and most painful the untimely closure of many
advertising agencies in Zimbabwe. Fletcher, (2019) cited that change is inevitable and if one fails
to change, change will eventually change you in either ways. Resistance to change within the
advertising industry is something that is unfamiliar and it is not each time a bad thing (Kunze,
Boehm, and Bruch, 2013). Conversely, Bekki et al., (2018) mentioned that when the agency's
culture is unwilling to acclimatize to the shifting environments, the agency is heading for
anguishes. When people are resisting change in an organisation, there is loss of employee
morale, poor quality work, and increase in a number of senseless mistakes or errors and the
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deteriorating industry power causes permanent harm to an agency. Once an advertising agency
fails to adapt to changes, instantly it loses its influence in its industry, this does not only harms
the brand image (how the brand is perceived) in the industry, but also led to a negative brand
image. According to Chigona et al. (2009), loss of power in the industry causes, the company to
lose its revenue and it obstruct the company’s ability to entice superiority talent and attract
funding.

2.7.6 Succession plan

Planning is the best ingredient and the lifeblood of any organizational setup. Failing to plan is
ultimately planning to fail. It is of utmost importance for entrepreneurs to groom their successor
so that when the unthoughtful of events occurs the company can continue smoothly without any
challenges (Berly et al., 2016). This has been the case with most of the agencies in Harare and
also family owed agencies; they have ceased operations over the few decades of operations, for
example Lintus. When the owner of Lintus passed away due to injuries sustained during a car
crash, there was no one left to pick up the button and head the company and it only took twelve
months after his death, the company cease to operate. Desamo et al., (2021) defined succession
planning as a procedure of identifying the vital needs for intelligent endowment and equipping
individuals for both forthcoming and current work responsibilities required by the company. The
core essence of the strategic management process is to achieve the performance results that
allows companies or industries to be highly competitive ultimately (Zehir et al., 2011). Excellent
performance obliges better and flexible leaders, yet flexibility stems from experience (Casprini et
al., 2020). Companies that do not have a succession plan or policy, they have a substantial risk of
agitated changeovers or takeover. According to Ramadani et al., (2017) elucidated that a swift
transition process helps to verify that vital business processes are not clogged by an
unanticipated event that takes essential systems down. Agencies must keep running or operating
in spite of the probable risk it may be faced with (Mosteanu, 2019). Conversely, leaders in
advertising agencies in Harare finds it slightly difficult to endure in difficult times. Norman
(2015) mentioned that, some of the main challenges in the advertising industry today is that
various leaders need to fine-tune their actions to suit the dynamic international business
landscape.

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2.7.7 In-house designing and production
In trying to reduce marketing and advertising cost, some companies are now considering doing
in house design and production. Institution like SIRDC, Gain Cash and Carry employees’ they
design create their artworks in house. The swelling number of clients who are considering
employing in house designers have contributed immensely to the downfall of the advertising
industry. Saeed (2011) pointed out the hitches of in house designing and the harms that upsets
the growth of the advertising industry that led to lose of clients. The model presented by the
researcher showing positive and negative impacts of In house designing.

Figure 2.5: In-house Designing Model

Cost Saving In-house Less Experience
designing
Better Coordination and Less Objectives

production
More Control Less Objectives

Source: Syed Amir, et al (2011)

There is an incessant argument amongst the researchers across the globe concerning acquiring
services of agencies. With some, choosing to hire the services of specialised personnel in the
organisation rather than hiring an advertising agency services. Whereas others disputes that, it
much easier to use an agency. Persons who favours employing specialised services their line of
arguments is based on the fact that there is on loss of control, bigger clients are favoured over the
medium or smaller clients, and glitches in media related issues (media booking and agency
commission), absence of rate accountability, and unpredictability of the small firms (Matthee,
2011). The clients that are in favour of the traditional ways of hiring the services of an
advertising agencies contend that, agencies have comprehensive knowledge, knowhow and a set
of skills to implement a cost effective and profitable marketing or advertising strategy (Kichatov
and Mihajlovski, 2010). More so, agencies are highly flexible to organize different marketing
and distribution errands with advertising, able to buy time (for example, Herald can delay
printing their publication to give agency time to submit their adverts) and advertising space
cheaply for the clients advertising. For example, guaranteed pages Herald, Daily News are page

Page 35
3, 5, 7 and sometimes 9 and 11 depending on the print run, and the ability of hirer calibre people
and cost effectiveness.

Chapter Summary
This chapter provided a comprehensive literature review, which took into account the research
objectives. It also scrutinize the advertising models and their applicability, and looked at how
they are hindering the growth of the advertising industry in Harare. Chapter 3 is going to
concentrate on the research methodology.

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 Chapter 3: Research Methodology

3.1 Introduction
The topics that are going to the covered in this chapter include the research design, population
and sample, sampling procedure, the research instruments, data collection procedures, data
analysis and presentation, validity and reliability and the ethical considerations.

3.2 Research design

Research design is cross sectional survey, design was implemented in this research. Durrheim,
K. (2006) sited that, research design is a plan of action framework that serves as a link between
the research questions and the implementation or execution of the research. Research designs are
plans that models the structure of conditions for analysis and collection of data in a way that
aims at combining relevance research intention with economy in operation (Coolican, 2017)

Research design cut costs associated with gathering data, Covid 19 restrictions and to utilize the
minimum time that the researcher had. This particular design was necessary because it allowed
the researchers to document the pervasiveness of particular features in the population of interest.
It also offers an opportunity for the researcher to assess associations between certain variables of
interest and the differences amongst subgroups in the population, advertising agencies.

3.3 Population and sample

Donegan et al., (2008) defines targeted population as a group which the researcher is interested
in obtaining or gaining information from and drawing a conclusion.The target population
encompassed advertising agencies in the advertising industry in Harare both registered and
unregistered, media houses and printing houses, and clients or companies who uses advertising
agencies. There are more 10 agencies in Harare that are operating in the advertising industry.
The sample frame was taken from advertising agencies that are listed on the ZARF (Zimbabwe
Advertising Research Foundation). However, for the purposes of this research, only five
registered and well-established agencies selected based on their accreditation, activeness, and
they also have the biggest companies in Zimbabwe as their clients. The table below shows the

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five agencies and their clientele base that in total gives us a total number of 121 clients being
served by the five agencies.

Table 3.1 Advertising Agency’ clientele base

Name of the Agency Number of Clients/Accounts
Columbus DDB 126
Jericho Communications 133
Bakers Ogilvy 122
Dicomm 123
Spidex 116
Total 620
Source: Raw data

The researcher computed the sample size by means of coefficient variance. Whereby, he used
coefficient variation of 25% and a standard or margin of error of 2%. The coefficient of
variation, standard error, and a limit was selected to guarantee low variability in the sample and
to lessen the margin of error. The formula propounded by Tromp (2009) was used.
N C2
n=
C 2 + ( N − 1 ) ⅇ2

To compute the sample size the researcher adopted the formula:

Where: n – is the sample size
C – is the covariance
N –is the population size
e – is the standard or margin of error
Computation of the sample size
620 ( 0.25 ) 2
n= 2 2
0.25 + ( 620− 1 ) 0.02
n=124.9596904
Therefore the sample size n = 125

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The sample is proportionately dispersed and selected between five agencies according to the total
number of clients they have.

Table 3.2 Distribution of the sample size

Name of the Agency Computations Sample distribution
Columbus DDB 126 = 15
*125
620
Jericho Communications 133 = 19
*125
620
Bakers Ogilvy 122 = 12
*125
620
Dicomm 123 = 13
*125
620
Spidex 116 =9
*125
620
Source: Raw Data

3.4 Sampling technique

The researcher will use questionnaires and personal interviews as they were used by Buonanno
et al (2005), in their study “factors affecting growth of the advertising industry in India.”

(i) Questionnaires
(ii) Personal interviews

The researcher will use this tool to clarify the problem as it gives respondents the chance to say
and express their views and the researcher will explain questions that the responded has not
understood. Interviews do provide the chance of prompt feedback and enabled explanation of
complicated responses from the respondents. Though interviews are time consuming, the
interviews will be conducted because they give a full and detailed purpose and explanation of the
purpose of the study to the respondent and to ensure that the respondent fully understands what is
required of them.

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The researcher used convenience-sampling technique that involves selecting the participants that
are conveniently located near the researcher. The participants selected were within the proximity
or vicinity to the researcher. Due to the lockdown restrictions the researcher also took advantage
of using phone calls, website, social media platforms (for example, Facebook and LinkedIn), and
through the use of emails, to gather data from agencies or client and other stakeholders who
affect or are affected by the advertising industry. This sampling procedure was advantageous as
it fueled the data collection procedure; it was also less risky, and economical when visa-vi other
sampling techniques. It also suffocates countless confines related with research such as
approaching unfamiliar people. The entire population of interest had an equal respondent
suitability for the research and thus this justified the use of this particular sampling technique in
this research.

3.5 Research instruments

Data collection was done with questionnaires. The researcher used quantitative data to gather
data, this also include the use of both open-ended and close-ended questions. The questionnaires
were distributed as both hard copies and soft copies, simply because the research data can be
gathered in the researcher absence. Consequently, it helped to save time and cover a lot bigger
ground in a very short period. The questionnaire was designed in such a way that it had five
sections A, B, C, D and E. Section A contained questions which were lead-in questions, that
tries to understand the demographics of the respondents (for example, questions that about age
and gender). Section B questions in the section of the questionnaire were derived from the core
research objective whereas, sections C, D and E were taking into considered the questions arising
from the factors that affects the advertising industry. The Likert scale was also adopted in this
research questionnaire to measure the responses. The Likert scale of 1 to 5, Where 1 = strongly
agree; 2 = Agree; 3 = fair; 4 = Disagree and 5 = Strongly disagree. This questionnaire also
adopted the psychometric measure. The Likert scale was used previously for example in a
research by Roux (2014) on the “The growth of the communication industry in India.”

3.6 Data collection procedures

The initial step taken was to give a call to the certain agencies and ask for information
concerning their clientele base such that the researcher could derive samples. The questionnaire
was conscripted and then experimentally tested using a sample of 10 people. This is because the
Page 40
researcher wanted to test the viability and suitability of the questionnaires to eradicating
elements of vagueness in the questions before the rollout. Alterations were also done to the
questionnaires after the pilot test and they were issued thereafter. The researcher then requested
permission from the five agencies understudy to leave questionnaires at the receptions or emails
so anyone can feel free to answer. The questionnaires were collected 5 days after they were
issued and follow up email we also sent to remand respondents to send through their
questionnaires.

3.7 Data analysis and presentation procedures

Resnink (2013) defined data analysis a systematical process of applying logical and statistical
techniques to illustrate, describe and evaluate data collected. In accordance to Shamoo and
Resnik (2003) view, there are several procedure to analyse, drafting inductive inferences from
data and differentiation of the phenomenon of interest from interference in the present data. The
researcher analysed the data collected from the phone call interviews, face to face, emails, and
questionnaires. The researcher used IBM SPSS Statistics version 26.0.0.0 the Social Sciences
(SPSS) software to analyze descriptive statistics. Chi-square tests were done for “use of all
media tools, platforms and Channels, perspective on advertising industry, and amenities driving
the advertising industry. The researcher also used the Bartlett’s sphericity test and the KMO
index (Kaiser-Mayer-Olkin) analysis and presentation of the data. The researcher also conducted
a T-test analysis. The data was then presented in the form of figures and tables, for instance scree
plot. Mean, frequencies and mode (central tendency) were used to analyse descriptive statistics
in this research.

3.8 Validity and reliability

According to Shamoo and Resnik (2003) defined validity as the degree of accuracy and
trustworthiness of instruments, data and findings in the research. It is closely impossible for an
instrument to be 100% valid (Savenye, Robinson, 2004). Shamoo and Resnik (2003) further
defined external validity as the extent at which the research findings are generalized to a
population from a sample. Content validity is the suitability of the contests of an instrument
(Shephard 2002). In order to satisfy issues relating to validity in this research, the researcher will
establish the degree to which the findings reflect the empirical reality of human experiences.

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Kirk and Miller (2016) argued that reliability is impaired if the data are not independent of
accidental circumstances under which they are gathered. To insure reliability, the researcher
conducted a test pretest pilot survey to the questionnaire. The Cronbach’s alpha index used to
test for the reliability of the questionnaire. The validation of instrument was done through
looking for colleagues and researching literature review from previous studies and then through
the help of the supervisor, thereafter alterations or corrections were made.

3.9 Ethical considerations

Ethics are standard and norms of conduct, that distinguish between right and wrong.  They help
to determine the difference between acceptable and unacceptable behaviors (Kakava, 2018).
Ethical standards acts against the fabrication or falsifying of data and therefore, promote the
pursuit of knowledge and truth which is the primary goal of this research.

The respondents were given a document to sign to ensure privacy and confidentiality. They were
also assured that their identity (names or contact) will not be disclosed to anyone and this was
just an academic exercise. Responses obtained were based on the respondent’s willingness to
participate, even if the respondent’s retained unfilled in questionnaires, the researcher considered
it as a response.

3.10 Chapter summary

This chapter was focusing on the research methodology. It has explained the research design
used by giving details on the population of interest, how it was sampled and the research
instruments employed. It also defined the data collections processes as well as the data analysis
and presentation. It also justifies the use of all the techniques employed in the data collection
process.

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 CHAPTER 4: DATA PRESENTATION, ANALYSIS AND DISCUSSION

4.1 Introduction
This chapter presents the findings obtained, analyzed and interpreted. Data has been presented
through use pf tables and scree plots drafted using IBM SPSS Statistics version 26.0.0.0.

4.2 Response rate

It looks at the measurement of the percentage of responded questionnaires out of the total
questionnaires distributed.

Table 4.1 Rate of response

Description Total
Distributed Questionnaires 235
Returned Questionnaires 229
Screened Questionnaires 7
Answered Questionnaires 222
Valid responded Questionnaires 97%
Response rate (%) of the Valid Questionnaires 94%
Source: Raw data

Table 4.1 above show the rate of response for the survey. From the 235 questionnaire distributed,
229 were returned. Consequently, the response rate of questionnaire returned is 97% as given in
the table above. 7 questionnaires were screened out because of not being completed. To compute
the response rate expressed as a percentage of the Valid Questionnaires 222 was used to give us
94%. Hence, the response rate was high.

4.3 Reliability test

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The reliability test (Cronbach's alpha) is generally used to test for reliability of the instruments
used (internal consistency). This was used because there were multiple Likert questions in the
questionnaire and the researcher wanted determine whether the scale is reliable.

Table 4.2 Reliability Test: Case-processing summary

N %
Cases Valid 222 100.0

Excludeda 0 .0

Total 222 100.0

Listwise deletion based on all variables in the procedure.

The table 4.2 above shows that 222 questionnaires were entered into the SPSS software for
analyzing data as well as the reliability test presented on the table below in table 4.3.

Table 4.3 Reliability statistics Reliability Statistics

Cronbach's Alpha Cronbach's Alpha Based on Standardized Items N of Items

.805 .803 18

Table 4.3 above is presenting that the reliability index is at 0.805 based on Cronbach’s alpha
index that accepts a reliability index ranging from 0.7 up to 1. Cronbach's alpha index of 0.805
shows a high level of internal consistency that is the instruments were reliable in the collection of
data for our scale given this exact sample.

4.4 Testing for normality

Shapiro Wilk and Kolomogrov-Smirnov normality test were used to determine whether the data
was drawn from a normally distributed population. The reason why the researcher did the
normality test were many because of the fact that, many statistical tests that the researcher used
requires a normally distributed sample. Andrew Garth (2008), stated that Kolomogrov-Smirnov
test and Shapiro-Wilk tests provides an oversite view on the normality of the data

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Table 4.4: Normality Test

Kolmogorov-
Smirnova Shapiro-Wilk
Stati Stati
stic df Sig. stic df Sig.
The Political landscape is favorable for growth and success of the .303 222 .000 .842 222 .000
Advertising Industry in Harare
The economic environment is conducive for MSMEs and well .197 222 .000 .864 222 .000
established agencies to operate in
Government's efforts are ensuring that industries like advertising .245 222 .000 .868 222 .000
industry works at their full capacity
Agencies are able to use the New Technologies to their advantage .197 222 .000 .864 222 .000
They are no barriers to entry and exist .241 222 .000 .865 222 .000
Companies should hire agencies .270 222 .000 .812 222 .000
Freelance agencies are more appropriate than full time agencies .252 222 .000 .864 222 .000
Advertising agencies are more useful when companies wants to .211 222 .000 .861 222 .000
advertise in the press, radio and television
Advertising agencies are no longer appropriate in today's business .197 222 .000 .864 222 .000
environment
Few agencies are able to service all the clients in Harare, and they is no .197 222 .000 .864 222 .000
need for more new agencies
Models that are being used by many agencies are Eurocentric. .249 222 .000 .866 222 .000
Agencies should copy and paste business models from other countries .306 222 .000 .843 222 .000
and implement them without fine tuning
If a model produces results, it should be used for many year to come .197 222 .000 .864 222 .000
without altering it.
Agencies should take models from different countries and use them. .201 222 .000 .877 222 .000
Social Media have contributed to the growth of the advertising Industry .224 222 .000 .890 222 .000
in Harare e.g. Facebook, Instagram and Twitter
Website Marketing or advertising have contributed to the growth of the .227 222 .000 .889 222 .000
advertising Industry in Harare e.g. electronic banners
Google adverts have contributed to the growth of the advertising .190 222 .000 .908 222 .000
Industry in Harare e.g. pop up ads

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Email advertising or emailers have contributed to the growth of the .197 222 .000 .864 222 .000
advertising Industry in Harare e.g. email signatures with an advert
a. Lilliefors Significance Correction

The table 4.4 above is showing the Shapiro Wilk and Kolomogrov-Smirnov normality test. The
data presented above is normally distributed within the questionnaire. The Shapiro Wilk values
are ranging from 0.812 to 0.908 and Kolmogrov-Smirnov is ranging from 0.190 to 0.306.

4.5 Testing for sample adequacy

The Kaiser-Meyer-Olkin (KMO) measure of sampling adequacy was used to see whether see
how suited the data is for Factor Analysis.

Table 4.5: KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .677

Bartlett's Test of Approx. Chi-Square 4024.351
Sphericity df 814
Sig. .000
Source: Extracted from spss

The range for testing sample adequacy is from zero to one. According to 2011 stated that if the
KMO value is less than 0.6, it indicates that the sampling inadequate and there is need for
remedial action. Table 4.5 above is shows a figure of 0.677, which is greater than 0.6. This
signifies that, the factor analysis can be conducted on the data, as the sample is adequate. A
significant value of p<0.001 shown by Bartlett’s test of sphericity indicates that conduction of
further tests using factor analysis can be proceeded.

4.6 Descriptive data analysis on demographic of the respondents

This section looks at two aspects collected by the questionnaire on the background of the
respondents that are gender and age. The data was presented through the use of tables.

4.6.1 Gender
Table 4.6: Gender

Frequency Percent Valid Percent Cumulative Percent

Page 46
Valid Male 157 70.7 70.7 70.7
Female 65 29.3 29.3 100.0
Total 222 100.0 100.0

Table 4.6 showed that male population was above the female population in the research conducted.
Whereby males amounted to 70.7% and females were 29.3%. This showed that the industry is mainly
dominated by male.

Figure 2.1: Gender of respondents

Source: Raw data

The figure 2.1 above is a graphical representation of the gender respondents. It is showing that
70.7% of the respondents are male and the female constitute 29.3% of the total population. There
is a discrepancy of 41.4% percent. This shows that according to the sample collected, the
advertising industry is a male dominant industry despite it being one of the smart industry that
require little efforts.

4.6.2 Age of respondents

Table 4.7: Age

Frequency Percent Valid Percent Cumulative Percent

Valid 16-25 67 30.2 30.2 30.2
26-35 84 37.8 37.8 68.0
36-45 37 16.7 16.7 84.7
46-55 28 12.6 12.6 97.3

Page 47
 55-above 6 2.7 2.7 100.0
Total 222 100.0 100.0
Source: Extracted from spss
The outcomes from the study carried out shown in table 4.7 above were in respect of the
respondents’ age group. An analysis by the researcher from the results shown in the table 4.7
translated that the respondents from the age group of 26-35 accounted for a greater proportion
with a percentage of 37.8%. The group was followed by the 16-25 age group with 67
respondents who occupies 30.2%. The third group of respondents is the 36-45 age group who
occupied 16.7%. 46-55 and 55 and above which had percentages of 12.6% and 2.7% respectively
are the two groups that have the least proportion.

Figure 2.2: Age of respondents

Age
3%
of respondents
13%

30%

17%
16-25
26-35
36-45
46-55
55 and above

38%

Source: Raw data

The pie chart in figure 2.2 show the age of respondents.

4.7 Inferential Data Analysis

It looks at factor analysis by hypotheses since the data is adequate as shown by the KMO test.

Page 48
4.7.1 The effect of PESTLEG on the growth of the advertising industry in Harare
In trying to understand how Political, Economical, Legal, Technological and Government affects
the growth of the advertising industry in Harare.

Table 4.8: Communalities of the effects of Political, Economical, Legal, Technological and
Government on the growth of the advertising industry in Harare.

Initial Extraction
The Political landscape is favorable for growth and success of the 1.000 .849
Advertising Industry in Harare
The economic environment is conducive for MSMEs and well established 1.000 .940
agencies to operate in
Government's efforts are ensuring that industries like advertising industry 1.000 .852
works at their full capacity
They are no barriers to entry and exist 1.000 .342
Agencies are able to use the New Technologies to their advantage 1.000 .940
Extraction Method: Principal Component Analysis

The values shown in the communalities on table 4.8 above are generally high which shows that
the extracted components represent well the variables.

Table 4.9: Total Variance explained on the effects of Political, Economical, Legal, Technological
and Government

Initial Eigenvalues Extraction Sums of Squared Loadings

Component Total % of Variance Cumulative % Total % of Variance Cumulative %
1 2.221 44.427 44.427 2.221 44.427 44.427
2 1.703 34.057 78.484 1.703 34.057 78.484
3 .781 15.612 94.096
4 .295 5.904 100.000
Extraction Method: Principal Component Analysis

Table 4.9 shows there are two main components extracted out of the data by the factor analysis
that measured the effects of Political, Economical, Legal, Technological and Government on the
growth of the advertising agency in Harare. Results from the factor analysis reveals that there are
two components, by this means explaining 78.484% of the cumulative variance. This deciphers

Page 49
that the two components show above have a significant contribution of 78.484% the cumulative
variance. Figure 4.1 below further shows the evidence of the results.

Figure 4.1 Scree Plot of the effects of Political, Economical, Legal, Technological and
Government

2.5

1.5
Eigenvalue

0.5

0
1 2 3 4 5
Component Number
Source: Extracted from spss software

The Scree Plot on figure 4.1 above show that there are two components with an Eigenvalue that
are greater than 1. Consequently, showing that there are two discrete constructs out of the 5 items
under the effect of the Political, Economical, Legal, Technological and Government on the
growth of the advertising agency in Harare. As shown on figure 4.1 and table 4.9, the
Eigenvalues of the two main components are 2.221 and 1.703 respectively.

Page 50
Table 4.10: Rotated Component Matrix of the effect of Political, Economical, Legal, Technological
and Government on the growth of the advertising agency in Harare

Component
1 2
The Political landscape is favorable for growth and success of the Advertising -.004 .922
Industry in Harare
The economic environment is conducive for MSMEs and well established agencies .969 -.027
to operate in
Government's efforts are ensuring that industries like advertising industry works at .007 .923
their full capacity
They are no barriers to entry and exist .584 .036
Agencies are able to use the New Technologies to their advantage .969 -.027
Extraction Method: Principal Component Analysis.

The table 4.10 above shows the rotated component matrix of the effects of Political, Economical,
Legal, Technological and Government on the growth of the advertising agency in Harare and the
factor loading for each of the variable of interest (the two components). For example, the
component on which each variable was most strongly loaded on. What the components represent
is determined by the rotated component matrix. Under the effects of Political, Economical,
Legal, Technological and Government on the growth of the advertising agency in Harare
question, two sub variables have loaded strongly with a factor loading of 0.969 on component 1.
This shows that respondents agreed that Agencies are able to use the new technologies to their
advantage and they also agreed that the economic environment is conducive for MSMEs and
well established agencies to operate. On component 2, there was a loading of 0.923, which
implies that the respondents understand that Government's efforts are ensuring that industries
like advertising industry works at their full capacity.

Stemming from the table 4.9, the results are that two variables contributed to 78.484 which
clearly shows that the effects of Political, Economical, Legal, Technological and Government on
the growth of the advertising agencies. The two variables are the economic environment is
conducive for MSMEs and well established agencies to operate or Agencies are able to use the
New Technologies to their advantage (the first component have two sub variable that yield the
same loading) and Government's efforts are ensuring that industries like advertising industry
works at their full capacity. Literature backs these research findings as follows: According to

Page 51
Nhedza (2019), conducted a research, which showed that the Zimbabwean advertising industry is
vivacious despite the economic, technological and political defies facing the country.

4.7.2 The relevance of the advertising industry in today’s Business Environment.

An analysis to show the relevance of the advertising industry in today’s Business Environment.

Table 4.11: Communalities of the relevance of the advertising agencies in today’s Business
Environment.

Initial Extraction
Companies should hire agencies 1.000 .679
Freelance agencies are more appropriate than full time agencies 1.000 .889
Advertising agencies are more useful when companies wants to advertise in the press, radio 1.000 .570
and television
Advertising agencies are no longer appropriate in today's business environment 1.000 .992
Few agencies are able to service all the clients in Harare, and they is no need for more new 1.000 .991
agencies
Extraction Method: Principal Component Analysis.

Table 4.11 above shows that all the extracted component variables are high; this implies that the
extracted components represents well the variables.

Table 4.12: Total variance explained on the relevance of the advertising agencies in today’s
Business Environment.

Initial Eigenvalues Extraction Sums of Squared Loadings

Component Total % of Variance Cumulative % Total % of Variance Cumulative %
1 2.041 40.817 40.817 2.041 40.817 40.817
2 1.070 21.404 62.221 1.070 21.404 62.221
3 1.011 20.228 82.450 1.011 20.228 82.450
4 .878 17.550 100.000
Extraction Method: Principal Component Analysis

Table 4.12 above shows that there are three main components extracted out of the data by the
factor analysis that measured the relevance of the advertising industry in today’s Business
Environment. The outcome from the factor analysis clears shows that there are three
components, therefore elucidating 82.450% of the cumulative variance. This explains that the
three components shown above have significantly contributed to 82.450% the cumulative
variance. Figure 4.2 underneath supplementary displays the evidence of the findings.
Page 52
Figure 4.2: Scree Plot of the relevance of the advertising agencies in today’s Business
Environment.
2.5

1.5
Eigenvalue

0.5

0
1 2 3 4 5

Component Number

Source: Extracted from spss software

The Scree Plot on figure 4.2 above is displaying that there are three components with an
Eigenvalue that are greater than 1. Subsequently, showing that there are three discrete constructs
out of the five items under the relevance of the advertising industry in today’s business
Environment. As revealed on figure 4.2 and table 4.12, the Eigenvalues of the three main
components 2.041, 1.070 and 1.011 respectively.

Table 4.13: Rotated Component Matrix for the relevance of the advertising industry in today’s
business environment

Component
1 2 3
Companies should hire agencies .086 .783 .242
Freelance agencies are more appropriate than full time agencies -.034 .008 .942
Advertising agencies are more useful when companies wants to advertise in the .176 -.684 .267
press, radio and television
Advertising agencies are no longer appropriate in today's business environment .995 -.044 -.009
Few agencies are able to service all the clients in Harare, and they is no need for .994 -.043 -.009
more new agencies
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 3 iterations.
Page 53
The rotated component matrix on Table 4.13 above shows the rotated component matrix of the
relevance of the advertising industry in today’s business environment. Under the relevance of the
advertising industry on component 1. The sub variable that loaded intensely had a factor loading
of 0.995. This demonstrates that respondents agreed that Advertising agencies are no longer
appropriate in today's business environment. On component 2, there was a loading of 0.783,
which implies that the respondents agreed that companies should hire agencies. On component 3,
the sub variable have a highest loading had a factor loading of 0.942 to demonstrate that
respondents agreed that Freelance agencies are more appropriate than full time agencies.

Deducing from the table 4.12 above, the outcomes are that three variables that contributed to
82.450% which relevance of the advertising industry. These three variables are advertising
agencies are no longer appropriate in today's business environment, Companies should hire
agencies and Freelance agencies are more appropriate than full time agencies. Literature backs
these research findings as follows: Correales Rivas (2017), one of the pioneers of advertising
agencies Colombia viewed agencies as press agents. In a contrasting view, Preciado-Hoyosa et
al., (2017) suggested that advertising agencies’ service should be strategic in nature as they focus
on serving their clients to expand performance of their responsibilities, to antedate the future, and
to respond quickly and efficaciously to the demands of the environment.

4.7.3 The applicability of the models being used by advertising agencies in Harare.
An analysis of the applicability of the models being used by advertising agencies operating in
Harare

Table 4.14: Communalities of the applicability of the models used by advertising agencies in Harare

Communalities
Initial Extraction
Models that are being used by many agencies are Eurocentric. 1.000 .643
Agencies should copy and paste business models from other countries and 1.000 .741
implement them without fine tuning
If a model produces results, it should be used for many year to come 1.000 .517
without altering it.
Agencies should take models from different countries and use them. 1.000 .610
Extraction Method: Principal Component Analysis.

Page 54
The extracted components variables in the Table 4.11 above are high. This explains that all the
extracted components are well represented. These initial communalities signify the relation
amongst the variable and other variables before rotation

Table 4.15 Total variance explained on the applicability of the models used by advertising agencies
in Harare

Initial Eigenvalues Extraction Sums of Squared Loadings

Component Total % of Variance Cumulative % Total % of Variance Cumulative %
1 1.364 34.102 34.102 1.364 34.102 34.102
2 1.147 28.676 62.778 1.147 28.676 62.778
3 .802 20.061 82.839
4 .686 17.161 100.000

Table 4.15 above shows two components extracted out of the data by the factor analysis that
measured the applicability of the models used by advertising agencies in Harare. The outcome
from this analysis undoubtedly shows the two components that explains the 62.778% of the
cumulative variance. This explains that the two components shown above have significantly
contributed to 62.778% the cumulative variance. Figure 4.3 underneath additionally exhibitions
the evidence of the results.

Scree plot of the applicability of the models used by advertising agencies in Harare
The Scree Plot on figure 4.3 below is shows that there are two components that have an
Eigenvalue greater than 1. Consequently, showing that there are two discrete variables out of the
four items under the applicability of the models used by advertising agencies in Harare. As
shown in figure 4.3 and table 4.15, the Eigenvalues of the three main components 1.364 and
1.147 respectively.

Page 55
Figure 4.3: Scree plot of the applicability of the models used by advertising agencies in
Harare

1.6

1.4

1.2

1
Eigenvalue

0.8

0.6

0.4

0.2

0
1 2 3 4
Component Number

Source: Extracted from spss software

Table 4.16: Pattern Matrix on the applicability of the models used by advertising agencies in
Harare

Rotated Matrixa
Component
1 2
Models that are being used by many agencies are Eurocentric. .803 .113
Agencies should copy and paste business models from other countries and .230 .849
implement them without fine tuning
If a model produces results, it should be used for many year to come without .706 -.092
altering it.
Agencies should take models from different countries and use them. -.315 .689

Extraction Method: Principal Component Analysis.

Rotation Method: Varimax with Kaiser Normalization.

a. Rotation converged in 3 iterations.

Page 56
The rotated component matrix on Table 4.16 above displays the rotated component matrix of the
applicability of the models used by advertising agencies in Harare. Under applicability of the
models used by advertising agencies in Harare on component 1, the sub variable that loaded
strongly had a factor loading of 0.803. This shows that respondents agreed that Models that are
being used by many agencies are Eurocentric. On component 2, the variable with the strongest
loading has 0.849; this implies that the respondents agreed that Agencies should copy and paste
business models from other countries and implement them without fine-tuning.

Deriving from the table 4.12 above, the outcomes are that three variables that contributed to
62.778% cumulative. These two variables are Models that are being used by many agencies are
Eurocentric, Agencies should copy, and paste business models from other countries and
implement them without fine-tuning. Companies should hire agencies and Freelance agencies are
more appropriate than full time agencies. Literature backs these research findings as follows:
Correales Rivas (2017), one of the pioneers of advertising agencies Colombia viewed agencies as
press agents. In a contrasting view, Preciado-Hoyosa et al., (2017) suggested that advertising
agencies’ service should be strategic in nature as they focus on serving their clients to expand
performance of their responsibilities, to antedate the future, and to respond quickly and
efficaciously to the demands of the environment. Researchers Jobber, (2005) and Hackley,
(2005) suggested that advertising can not be put in a confined frame of models. According to the
these their finding they find that it is not right due to the fact that advertising is creative thought
process which does not follow procedural steps stated by models. However, Munoz, (2002)
stated in his article that there is no definite way that state how advertising should work but the a
model offers some sort of direction.

4.7.4 New Media have a positive effect on the growth of the Advertising Industry.
An analysis to determine the effect that the new media have on the growth of the advertising
industry in Harare.

Page 57
Table 4.16: Communalities on the effects of the new media on the growth of the Advertising
Industry

Initial Extraction
Social Media have contributed to the growth of the advertising Industry in Harare e.g. 1.000 .715
Facebook, Instagram and Twitter
Website Marketing or advertising have contributed to the growth of the advertising 1.000 .799
Industry in Harare e.g. electronic banners
Google adverts have contributed to the growth of the advertising Industry in Harare e.g. 1.000 .653
pop up ads
Email advertising or emailers have contributed to the growth of the advertising Industry in 1.000 .387
Harare e.g. email signatures with an advert

Extraction Method: Principal Component Analysis.

The extracted components variables in the Table 4.16 above are high. This explains that the
extracted components are well represented. These initial communalities signify the relation
amongst the variable and other variables before rotation.

Table 4.18: Total Variance Explained on the effects of the new media on the growth of the
Advertising Industry

Initial Eigenvalues Extraction Sums of Squared Loadings

Component Total % of Variance Cumulative % Total % of Variance Cumulative %
1 2.554 63.860 63.860 2.554 63.860 63.860
2 .823 20.564 84.424
3 .468 11.710 96.134
4 .155 3.866 100.000
Extraction Method: Principal Component Analysis.

Table 4.15 above shows one component extracted out of the data by the factor analysis that
measured the effects of the new media on the growth of the Advertising Industry. The outcome
from this analysis shows that one component with 63.860% of the cumulative variance. This
explains that one component shown above have significantly contributed to 63.860% of the
cumulative variance. Figure 4.4 underneath additionally exhibitions the evidence of the results.

Page 58
Figure 4.4: Scree Plot on the effects of the new media on the growth of the Advertising
Industry
3

2.5

2
Eigenvalue

1.5

0.5

0
1 2 3 4

Component Number

Source: Extracted from spss software

The Scree Plot on figure 4.4 above is illustrates that there is one component that have an
Eigenvalue greater than 1. Thus, showing that there is only one discrete variable out of the four
items under the effects of the new media on the growth of the Advertising Industry. As shown in
figure 4.4 and table 4.15 above, the Eigenvalue of the one main component is 2.554.

Table 4.19: Rotated Matrix on the effects of the new media on the growth of the Advertising
Industry

Rotated Matrixa
Component
1
Social Media have contributed to the growth of the advertising Industry in Harare e.g. Facebook, .846
Instagram and Twitter
Website Marketing or advertising have contributed to the growth of the advertising Industry in .894
Harare e.g. electronic banners
Google adverts have contributed to the growth of the advertising Industry in Harare e.g. pop up ads .808
Email advertising or emailers have contributed to the growth of the advertising Industry in Harare .622
e.g. email signatures with an advert
Extraction Method: Principal Component Analysis.

Page 59
The rotated component matrix on Table 4.16 above displays the rotated component matrix of the
effects of the new media on the growth of the Advertising Industry. Under effects of new media
on component 1, the sub variable that loaded strongly had a factor loading of 0.894. This shows
that respondents agreed that web marketing or advertising have contributed to the growth of the
advertising Industry in Harare.

The table 4.12 above shows the outcomes that one variable constitute 63.860% cumulative. This
one variable Website Marketing or advertising have contributed to the growth of the advertising
Industry in Harare. A similar study was also carried by the Syed Amir, (2017) on the effects of
new media on the growth of the communication industry in Peshawar. This research showed that
the new media is the fuel that has amplified the growth of the advertising industry in developing.
Tandon, (2018) also carried a similar study when he was looking at the growth of the advertising
industry in India. His research concluded that, the speedy development of social media (New
Media) and the mobile Internet has changed the way that businesses interact with their clientele
and more significantly how clients are shaping and influencing organisations and their brands.

Table 4.20: One sample test on the obstacle hindering the growth of the Advertising Industry in
Harare

Test Value = 0
95% Confidence
Sig. Mean Interval of the
(2- Differen Difference
t df tailed) ce Lower Upper
Email advertising or emailers have contributed to the growth of the 59.653 221 .000 3.80180 3.6762 3.9274
advertising Industry in Harare e.g. email signatures with an advert

The Political landscape is favorable for growth and success of the 70.702 221 .000 3.77928 3.6739 3.8846
Advertising Industry in Harare
The economic environment is conducive for MSMEs and well 59.653 221 .000 3.80180 3.6762 3.9274
established agencies to operate in
Government's efforts are ensuring that industries like advertising 65.424 221 .000 3.64865 3.5387 3.7586
industry works at their full capacity
Agencies are able to use the New Technologies to their advantage 59.653 221 .000 3.80180 3.6762 3.9274

Page 60
They are no barriers to entry and exist 64.440 221 .000 3.50901 3.4017 3.6163
Companies should hire agencies 53.340 221 .000 3.90541 3.7611 4.0497
Freelance agencies are more appropriate than full time agencies 62.489 221 .000 3.40090 3.2936 3.5082
Advertising agencies are more useful when companies wants to 55.348 221 .000 3.09910 2.9888 3.2094
advertise in the press, radio and television
Advertising agencies are no longer appropriate in today's business 59.653 221 .000 3.80180 3.6762 3.9274
environment
Few agencies are able to service all the clients in Harare, and they 59.653 221 .000 3.80180 3.6762 3.9274
is no need for more new agencies
Models that are being used by many agencies are Eurocentric. 43.584 221 .000 2.91441 2.7826 3.0462
Agencies should copy and paste business models from other 56.511 221 .000 3.72072 3.5910 3.8505
countries and implement them without fine tuning
If a model produces results, it should be used for many year to 59.653 221 .000 3.80180 3.6762 3.9274
come without altering it.
Agencies should take models from different countries and use 43.082 221 .000 3.25676 3.1078 3.4057
them.
Social Media have contributed to the growth of the advertising 35.722 221 .000 2.99550 2.8302 3.1608
Industry in Harare e.g. Facebook, Instagram and Twitter
Website Marketing or advertising have contributed to the growth of 35.617 221 .000 2.99099 2.8255 3.1565
the advertising Industry in Harare e.g. electronic banners
Google adverts have contributed to the growth of the advertising 37.968 221 .000 3.03153 2.8742 3.1889
Industry in Harare e.g. pop up ads

The table 4.20 presenting the whole outcome on obstacles hindering the growth of the
advertising industry in Harare. The confidence interval level of 95% was used for the T-test. A 2-
tailed significance test, the degree of freedom used was 221 and a test value set at zero. All the t
values are above zero (ranging from 35.617 to 70.702) and all mean differences are between the
lower and the upper intervals. Consequently, the above question have an effect on the growth of
the advertising industry. Literature backs this assertion as follows: The growth of the advertising
industry is also affected by the use of power and politics, the degree of adaptation to technology,
and the economic stability (Global Communication Report, 2016).

Table 4.21: Hypothesis Test Summary

Null Hypothesis Test Sig. Decision

Page 61
The categories defined by Gender = Female and Male occur One-Sample Binomial .000 Reject the null hypothesis.
with probabilities .500 and .500. Test
The categories of Age occur with equal probabilities. One-Sample Chi-Square .000 Reject the null hypothesis.
Test
The distribution of The Political landscape is favorable for One-Sample .000a Reject the null hypothesis.
growth and success of the Advertising Industry in Harare is Kolmogorov-Smirnov
normal with mean 3.78 and standard deviation .79644. Test

The distribution of The economic environment is conducive One-Sample .000a Reject the null hypothesis.
for MSMEs and well established agencies to operate in is Kolmogorov-Smirnov
normal with mean 3.80 and standard deviation .94959. Test

The distribution of Government's efforts are ensuring that One-Sample .000a Reject the null hypothesis.
industries like advertising industry works at their full capacity Kolmogorov-Smirnov
is normal with mean 3.65 and standard deviation .83095. Test

The distribution of Agencies are able to use the New One-Sample .000a Reject the null hypothesis.
Technologies to their advantage is normal with mean 3.80 and Kolmogorov-Smirnov
standard deviation .94959. Test
The distribution of They are no barriers to entry and exist is One-Sample .000a Reject the null hypothesis.
normal with mean 3.51 and standard deviation .81135. Kolmogorov-Smirnov
Test
The distribution of Companies should hire agencies is normal One-Sample .000a Reject the null hypothesis.
with mean 3.91 and standard deviation 1.09092. Kolmogorov-Smirnov
Test
The distribution of Freelance agencies are more appropriate One-Sample .000a Reject the null hypothesis.
than full time agencies is normal with mean 3.40 and standard Kolmogorov-Smirnov
deviation .81090. Test
The distribution of Advertising agencies are more useful when One-Sample .000a Reject the null hypothesis.
companies wants to advertise in the press, radio and television Kolmogorov-Smirnov
is normal with mean 3.10 and standard deviation .83428. Test

The distribution of Advertising agencies are no longer One-Sample .000a Reject the null hypothesis.
appropriate in today's business environment is normal with Kolmogorov-Smirnov
mean 3.80 and standard deviation .94959. Test

The distribution of Few agencies are able to service all the One-Sample .000a Reject the null hypothesis.
clients in Harare, and they is no need for more new agencies is Kolmogorov-Smirnov
normal with mean 3.80 and standard deviation .94959. Test

Page 62
The distribution of Models that are being used by many One-Sample .000a Reject the null hypothesis.
agencies are Eurocentric. Is normal with mean 2.91 and Kolmogorov-Smirnov
standard deviation .99631. Test
The distribution of Agencies should copy and paste business One-Sample .000a Reject the null hypothesis.
models from other countries and implement them without Kolmogorov-Smirnov
fine-tuning is normal with mean 3.72 and standard Test
deviation .98101.
The distribution of If a model produces results; it should be One-Sample .000a Reject the null hypothesis.
used for many year to come without altering it. Is normal with Kolmogorov-Smirnov
mean 3.80 and standard deviation .94959. Test

The distribution of Agencies should take models from One-Sample .000a Reject the null hypothesis.
different countries and use them. Is normal with mean 3.26 Kolmogorov-Smirnov
and standard deviation 1.12633. Test
The distribution of Social Media have contributed to the One-Sample .000a Reject the null hypothesis.
growth of the advertising Industry in Harare e.g. Facebook, Kolmogorov-Smirnov
Instagram and Twitter is normal with mean 3.00 and standard Test
deviation 1.24943.

The distribution of Website Marketing or advertising have One-Sample .000a Reject the null hypothesis.
contributed to the growth of the advertising Industry in Harare Kolmogorov-Smirnov
e.g., electronic banners is normal with mean 2.99 and standard Test
deviation 1.25121.

The distribution of Google adverts have contributed to the One-Sample .000a Reject the null hypothesis.
growth of the advertising Industry in Harare e.g. pop up ads is Kolmogorov-Smirnov
normal with mean 3.03 and standard deviation 1.18966. Test

The distribution of Email advertising or emailers have One-Sample .000a Reject the null hypothesis.
contributed to the growth of the advertising Industry in Harare Kolmogorov-Smirnov
e.g. email signatures with an advert is normal with mean 3.80 Test
and standard deviation .94959.

4.8 Chapter Summary

This chapter has deliberated the outcomes, interpreted them and presented the major findings of
the research. The next chapter is going to look at the summary of the research, drawing
conclusions and stating implications of the study.

Page 63
 CHAPTER FIVE: SUMMARY, CONCLUSIONS AND IMPLICATIONS

5.1 Summary
This research was aimed at founding the obstacles that are hindering the growth of this industry
in Harare. The variables of interest under study were the effects of Politics, economic,
technology, legal and government on growth of the advertising industry in Harare, the
applicability of the models being used by agencies, the relevance of the advertising industry in
todays’ business environment and new media. There is little research on the success and growth
of the advertising industry in Harare that was done of late. Thus, prompting the researcher to
undertake this research. A cross sectional survey was done in which pre-coded designed
questionnaires were distributed to respondents that include workers from five main advertising
agencies in Harare, and clients and suppliers (these include publishing houses like herald, Daily
News, Print houses for example Askeland Media, and broadcasting houses). A pilot research was
conducted using 10 workmates for the questionnaires. 235 questionnaire were distributed, 229
were returned. Consequently, the response rate of questionnaire returned were 99. Out of the 229
questionnaires returned 7 questionnaires were screened out they were not completed and some
were spoiled. The validated response rate expressed as a percentage was 93%. The data from the
222 questionnaires collected was entered into IBM SPSS statistic version 26.0.0.0 for analysis
and interpretations. To test for the reliability of the data entered Cronbach alpha was used. More
so, the adequacy of the data was tested using (Kaiser-Meyer-Olkin) KMO Measure of Sampling
Adequacy and Bertlett’s Test of Sphericity was also used. Principal component analysis, Total
Variance Explained, Scree Plots, Rotated Component Matrix, and one sample test were used for
the analysis of the main data. The research findings showed that Political, Economical, Legal,
and Government environments have an advice effect on the growth of the advertising agency in
Harare. The results from the research also showed that advertising agencies are still the relevant
in today’s business environment.. When the applicability of the models being used by agencies
was tested, the outcome showed that the models being used by advertising agencies are borrowed
from other countries and that there is need to fine tune the model every now and then. The results
also showed that the new media have contributed to the growth of the advertising industry in
Harare. Overall, the outcome of this research showed that the growth of the advertising industry
Page 64
is affected by Political environment, Economic, Technological, Legal and Government, the
models and the new media. The study recommended that to achieve expand the or to grow your
advertising agency in Harare one should be aware of the political, economic, and legal
environment and engage on a strategy that will help the grow. There is also need to constantly
change the models so that they remain relevant and ride on the benefits of the new media.
Limitations brought about by the Covid-19 related lockdown and a smaller sample size affected
this research study. However, for future research a related study can be done using a broader
location (for example, looking at Zimbabwe) to have an understanding of the bigger picture.

5.2 Conclusions
The main objectives was to find out the effects of Politics, economic, technology, legal and
government on growth of the advertising industry in Harare.

5.2.1 The relevance of the advertising industry in Harare

The results of the study showed that the advertising agencies are still relevant in today’s business
environment. The research also showed that advertising agencies are created to come up with
campaigns that are adrenaline-charged, solid and well thought out, which benefits clients in
reaching their potential clienteles.

5.2.2 The applicability of the models being used by agencies in Harare

From the results of this study, it is clear that the models that are being used by advertising
agencies in Harare are Eurocentric in nature. Thus, they is need to fine tune the model so that
they fit the current business environment in Harare so that they work to the advantage of the
agencies. If a model works, very well there is need for it to be constantly altered so that the
agency can keep on seeing the positive results from the model.

5.2.3 The effects of the new media on the growth of the advertising industry
The results of this research showed that the new media has contributed marginally to the growth
of the advertising industry in Harare. Although, website marketing is still an issue, agencies were
able to ride on the benefits of the new media.

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5.2.4 The effect of Political, Economic, Technology, legal and government on growth of the
Advertising industry in Harare
From the results of this research, the political, economic and legal systems are one of the key
components that have adversely affected the growth of the advertising industry in Harare. The
political environment is not conducive for the growth of the advertising industry in as much as
the government efforts is not going a long way in assisting the growth of the advertising industry
in Harare.

5.3 Limitations of the study

The research was mainly affected by covid-19 related lockdowns which made face to face
interviews to fail, despite the fact that the researcher resort to using convenience sampling. Time
was also one of the biggest changes faced by the researcher during the coarse of this study
(attributed by the fact that they were curfews so the population of interest had not much time to
spare). For future research, it could be fascinating to analyse this thoroughly.

5.4 Implications of the study

The implications herewith are based on the finds from Chapter Four.

5.4.1 The relevance of the advertising industry in Harare

Advertising agencies should consider becoming strategic rather than creatives. In as much as the
good artwork attracts the attention of the clients and their customers, they should be good
strategy that backs the visuals. If agencies are able to device strategies that helps their client
increase their market share, market size and expand their operation agencies will remain
relevant. Agencies should also consider their brand reputation and consistency, improved
internal communications, well thought out content creation, customer or public relations, digital
media analytics, research, campaign measurement and research and evaluation.

5.4.2 The applicability of the models being used by agencies in Harare

Agencies operating in Harare should consider coming up with their own model. Doing a
thorough research of the environment in which they are operating in, they should be able to come

Page 66
up with a model that they can use and a model that they can flexibly change at any given time.
They should desist from using borrowed models.

5.4.3 The effects of the new media on the growth of the advertising industry
From the finds in this research, the new media is the turbo that is amplifying the growth of the
advertising industry in Harare. Agencies should utilize the benefits brought about by the new
media. They should also propose digital management (social media placement of flighting
advert) as part of the 360 campaign. Web-Advertising, is still lagging behind, thus agencies
should also consider boosting their advert to have a greater reach, this will help them remain
relevant and also take advantage of the new media technology.

5.4.4 The effect of Political, Economic, Technology, legal and government on growth of the
advertising industry in Harare
Agencies should desist from being too much affiliated with political elites at the same time they
should not cross the path of politician, as this will compromise their work and survival.
Diversification of one of the way that agencies should consider if they are to survive in this
turbulent economic environment. The researcher also commends agencies in Harare to find
International affiliation (Merging with agencies from other countries). This will help agencies
hurdle over some obstacles like economic hardship and technological adaptation.

5.5 Implications of the areas of further research

For future research, it is ideal to examine the obstacles hindering the growth of the advertising
industry in other towns in Zimbabwe (for example, Bulawayo, Gweru, Chinhoyi Kwekwe or
Masvingo). More so, there is need to also look at the reasons why the advertising industry is only
dominant in Harare than any other major cities and towns. Furthermore, a similar study can be
done using a more broad geographical location as geographical delimitation can adversely affect
the outcome of the research. Consequently, there is need to study the obstacles hindering the
growth of the advertising industry in Zimbabwe using the same variables or more to intensify
and enhance the body of knowledge.

Page 67
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Williams, M. H., Perlich, C., Dalessandro, B., & Provost, F. (2014, August). Pleasing the advertising
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 Appendix I: Questionnaire

Questionnaire

My name is Tauzeni Farai Mapulanga a final year student at Chinhoyi University of Technology
doing Bachelors of Sciences Honors Degree in Business Management and Entrepreneurship.
This questionnaire’s main purpose is for gathering data concerning to the research which pursues
to establish the obstacles that are hindering the growth and success of the advertising industry in
Harare. The results obtained herewith will benefit the stakeholders who are directly or indirectly
linked to the advertising industry these include but not limited to Students, Aspiring
Entrepreneurs, Local and Foreign Investors, Government and also those who are currently in the
industry (all the stakeholders who affect or are affected by the operations of the Advertising
Industry).

Instructions
1. Tick were appropriate in the boxes provided.
2. Fill in were necessary on the space provided.
3. Please use BLOCK letters when writing your responses.

NB: Your responses will be kept anonymous and are going to be used for academic purposes only.

SECTION A: DEMOGRAPHICS
1. Gender
Male Female

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 2. Please indicate your age group.

16-25 26-35

36-45 46-55

56-above
SECTION B: THE EFFECTIVENESS OF PESTLEG ON THE GROWTH OF THE
ADVERTISING INDUSTRY IN HARARE

3. Political, Economic, Social, Legal, Government, Technology plays a critical role on

success and growth of the advertising industry in Harare. In the table below, please
indicate your level of agreement on a scale of 1-5.
Key: 1 = Strongly agree; 2 = Agree; 3 = Neither agree nor disagree; 4 = Disagree; 5 = strongly disagree.

Code Description 1 2 3 4 5
EPG1 The political landscape is favorable for the growth and
success of the advertising industry in Harare
EPG3 The economic environment is conducive for micro, small,
medium and well established agencies to operate in
EPG4 Government efforts are there to ensure that industries like the
advertising industry works at their full capacity
EPG5 I agree that advertising agencies are able to ride on the
benefits brought about by the new technologies (new media)
EPG6 They are no barriers to enter and exit the industry.

SECTION C: THE RELEVANCY OF THE ADVERTISING AGENCIES IN TODAY'S

BUSINESS ENVIRONMENT.

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 4. Advertising agencies are relevant in today's business environment. Do you agree? In
the table below, please indicate your level of agreement on a scale of 1-5.
Key: 1 = Strongly agree; 2 = Agree; 3 = Neither agree nor disagree; 4 = Disagree; 5 = strongly disagree.

Code Description 1 2 3 4 5
ROA1 Companies should hire an advertising agency than doing the
work in-house.
ROA2 Freelance agencies are more appropriate than full-time
agencies.
ROA3 Advertising is more useful when a company wants to publish
its adverts in the newspapers.
ROA4 Advertising agencies are no longer adequate in today's
environment
ROA5 They are few agencies that can service few clients in Harare
and they is no room for new agencies.

SECTION D: EFFECTIVENESS OF THE MODELS BEING USED BY ADVERTISING

AGENCIES IN HARARE

5. Models being used by advertising agencies in Harare have effectively contributed to the
growth of the industry. Do you agree? In the table below, please indicate your level of
agreement on a scale of 1-5.
Key: 1 = Strongly agree; 2 = Agree; 3 = Neither agree nor disagree; 4 = Disagree; 5 = strongly disagree.   

Code Description 1 2 3 4 5
EOM1 Do you think that the Models that are being used by many
advertising agencies are Eurocentric in nature.
EOM2 Should the advertising agencies copy and paste business
models from other countries without fine-tuning them.
EOM3 If a model produces results for the first time, is it Ideal for

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 one to keep using that same model for years.
EOM4 Do you think that agencies should take models from different
countries and merge them?

SECTION E: THE EFFECTIVENESS OF THE NEW MEDIA ON THE SUCCESS AND

GROWTH OF THE ADVERTING INDUSTRY IN HARARE

6. The new media have contributed significantly to the growth of the advertising industry
in Harare. Do you agree? In the table below, please indicate your level of agreement
on a scale of 1-5.
Key: 1 = Strongly agree; 2 = Agree; 3 = Neither agree nor disagree; 4 = Disagree; 5 = strongly disagree.

Code Description 1 2 3 4 5
ENM1 Social Media advertising e.g Facebook, Instagram, and
Twitter
ENM2 Website marketing e.g the use of electronic banners
ENM3 Google adverts e.g pop up adverts
ENM4 E-mail adverts

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Appendix II: Research authorization letter

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Appendix III: Plagiarism report

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