Admass University

Master of Business Administration Program

(MBA)

Effectiveness of Banks’ Promotion Strategies on Profit

A case study on Bank of Abyssinia S.C

A research proposal in the partial fulfillment of the course

“Research Methods”

By: meseret Yohannes

Submitted to:Reta megerssa (PhD)

Feburary17,2020

Addis Ababa, Ethiopia

 Chapter One

Introduction

1.1 Background of the Study

Any institution comes into existence in order to provide a product/service to the

market or community that could be for profit or not. Be it the institution is a
business for profit or not, it is requires to communicate what it is providing for.
Imagine, the institution has an Excellent Product, Best Price and Located in
convenient location but as long as it could not be able to communicate what it has
almost no user or consumer would be affiliated to the institution’s product.

Hence, as many institutions do care about other mixes of marketing, they should
also give proper emphasis to the Promotion Mix.

Service is any activity or performance that one party can offer to another that is
essentially intangible and does not result in the ownership of anything. Its
production may not be tied to a physical product. An example includes Banking,
Hotel, Airline, Library and Home repair service, Armstrong and Kotler (2003)

Per the definition provided above, financial services are classified under service
product and a service has additional three marketing mix elements than the goods
product. These elements are People, Physical Evidence and Process. Hence,
effective promotion of financial service is crucial and should incorporate and
consider all the seven marketing mix elements. Specially, the fact services’ had
distinctive feature of being intangible, Inseparable/perishable, Heterogeneous,
Fiduciary Responsibility and the Long-term nature and uncertainty of products and
specific to all banks offer of similar products makes promotion in banking
becomes difficult. Median (1996)

A promotion that takes in to consideration all the marketing mixes of promotion

shall be conducted and addressed to the audience. These audiences, primarily
refers to the prospective and actual customers and may additionally address to
other stakeholders.

Customers may be individuals, households or organizations are increasingly aware

of alternative on offer, in relation to products or services and providing
organizations and rising standards of service. Consequently, expectations rise and
customers become more critical of service received and so companies can never be
complacent. Kotler (1989)

Bank services are seldom unique and they are easy for competitors to copy.
Marquardt (1994).Additionally, many people cannot make a distinction between
different banks’ services, and they are often not aware of the wide range of
different financial services available. Median (1996) Same fact is applicable in the
Ethiopian banking sector too. Till recently, the banking sector in Ethiopia remains
dormant to the shift of business paradigm from product/service-centric to
customer-centric. The dominance of public banks before the liberalization of the
economy in the 1990`s hinders the development of the private sector and the
associated sense of competitiveness in the market that would have benefit the
customers and the growth of the banks therein.

By now there are around 16 commercial banks in Ethiopia; three government

owned and the rest private banks. Still, there are banks that are under pipeline to
join the banking sector like Enat, Noah, Zemzem, Debub Global and Awassa
Bank, (www.nbe.gov.et)

Among the private banks, United Bank SC is the one, which is established on
September 10, 1998. The bank has built itself into a progressive and modern
banking institution, endowed with a strong financial structure and strong
management, as well as a large and ever-increasing customers and correspondent
base.
Since establishment of the bank, a department called Marketing and Corporate
Planning has been performing all duties with respect to marketing and planning.
This department, as part of marketing, also does promotion. Literatures evidence
that effective promotion leads to creating lasting relationship with customers and
which in turn secures the aim of business institutions, maximizing profit.

Therefore, this Research Paper intends to address what are the theoretically
suggested promotion mix elements for a financial sector/service promotion
strategy and United Bank SC’s promotion strategy alignment towards the
theoretically suggested promotion mix elements and so its compliment in the
bank’s profit .

1.2 Statement of the Problem

Let alone in Ethiopia, even in other advanced countries the Promotion of financial
services is understudied area. Much of the bank marketing literature has
concentrated on marketing theory more than promotion practice. Unfortunately,
the issues of marketing are becoming more complicated as internationalization of
financial services continues to increase. Miller and Straughan (2000). Effective
promotion of financial services is crucial since services are intangible products,
and it is hard to stand out, considering the fact that all banks offer similar products
Meidan (1996). In order to surpass the identical feature of the financial service and
get a better market share, sales volume and ultimately Profit, effective promotion
is required. Failing to have proper promotion strategy which incorporates
segmenting, targeting, positioning and integrated promotion mix elements entails
various adverse effects on the institution’s profit. Hence statement of the problem
of this research paper is to assess United Bank SC’s Promotion Strategy and its
effectiveness in terms of profit.

1.3 Research Objectives

The general objective of this research paper is to assess effectiveness of United

Bank’s promotion strategy in complimenting on profit of the bank.
Specific Objective

To identify the core problem that exists in the United Bank’s promotion
strategy development
To evaluate the available promotion mix of United Bank in accordance with
various theoretically suggested dimensions/variables in promotion of
financial service
To assess the level of United Bank’s promotion mix tribute to its profit.
To Identify which promotional mix of the bank attracts and/or retains
customers of United Bank
1.4 Purpose and Research Question

The purpose of this Research Paper is to gain a better understanding about

promotion strategy by considering the case of United Bank SC.

The following research questions are used as baseline for understanding promotion
strategy of the Ethiopian Commercial Banks considering United Bank SC as a
case.

What are the appropriate Promotion mixes which shall be incorporated in

promotion strategy development

What are the consumer behavior factors to consider while developing

promotion strategy?

What is the general guideline for promotion in line with promotion

management?

1.5 Significance to Knowledge or Practice

This study is one of the very few studies that have examined the promotion
strategy in the Ethiopian banking sector. Hence, it would have significant
importance to the financial sector.

More specifically, the study will compliment at least the following:

 It would give material understanding about strategy formulation, in general
terms
It would indicate what are the least variables to consider while formulating a
promotion strategy
Providing this study as a basis for further studies of the United Bank, it
provided basis for future studies of the bank or other related sectors too.
1.6 Definition of Terms

Product- in this research paper product refers to services provided by the bank

1.7 Limitations

The outcome of the study entirely depends on responses of the respondents

included in the study. Moreover, as the sample is small considering the vast
number of branches of United Bank in the country, the results might not be
generalizable beyond the specific population from which the sample is drawn.

1.8 Delimitations

This case study is conducted on United Bank SC’s few branches only that are
found in Addis Ababa. In addition, discovering the whole variables, which had
impact on profit of United Bank, is beyond the scope of this study and so, it is
limited to the Promotion only.

1.9 Research Approach

1.9.1 Design of the Study/Approach

This Research Paper is a Case Study conducted on United Bank SC and both
qualitative and quantitative data are used. The data is collected through
In-depth interviews: in order to maximize the richness of the discussion and
data collection in-depth interview is used. Alam (2005). This in-depth qualitative
interview method is interpretive Szmigin and Foxall (2000), and is often used in
case study research, according to Cooper and Schindler (1998).
 Questionnaire

1.9.2 Sample of the Study and Instrument

This paper is a Case Study. The population of the study encompasses all customers
and employees of United Bank SC found in Addis Ababa expressed in number as
190,287 and 1,314 respectively (Weekly report of Nov 2011). However, it is
impractical to conduct all. Hence, simple random sampling is used and so, only
384 and 322 shall be taken respectively from the customers and employees per
suggestion of (Krejcie and Morgan 1970) for considering sample size respective to
the population size. Accordingly, the response rate of questionnaires distributed to
employees and customers is 93.79% and 83.07% respectively.

The primary data are collected through questionnaire and the secondary is
collected from various journals, broachers, and other sources which are primarily
done by others.

1.9.3 Data Collection and Method of Analysis

1.9.3.1 Data Collection

Before distribution of the questionnaire at full scale, a pilot test had been
conducted and per the pilot test certain amendments have been made to the
questionnaire and then distributed at full scale.

The responses to the questionnaires, which are distributed to both employees and
customers, are duly collected by staffs of the bank. With respect to the interview,
the researcher himself has administered it.

1.9.3.2 Method of Data Analysis

Descriptive statistical methods were used to analyze the data and Statistical
Package for Social Science (SPSS) V.19 has been used in order for automated
analysis of the data. This software has been widely used by researchers as a data
analysis technique.Zikmund (2003).

Chapter Two

Review of Related Literature

2.1 Marketing Strategies

It is generally thought that organizations in financial service sector have been

slow to adopt a strategic approach to their marketing activities. For a long time,
the marketing of financial services was largely concerned with how best to
advertise and sell an existing set of products in a given market; indeed, many
people think that this is what marketing is all about. However, there is more to
marketing. A strategic approach to marketing in the financial services sector
needs to concern itself with understanding consumers and deciding how best to
respond to their needs. It must also focus attention on the competition and try to
identify how to outperform key competitors. Ennew and Waite (2007)

The adoption and implementation of a strategic approach to marketing had impact

positively on organizational performance. An understanding of customer and
competitors would enable an organization to deliver superior customer value to
the market. In turn, superior customer value would facilitate both customer
acquisition and customer retention. Successfully growing new business and
keeping existing customers would have a positive impact on organizational
performance, and particularly on profit and cash flow. Ennew and Waite (2007)

In accordance to Doyle (2000) investment in strategic marketing, in order to

increase revenues, is a far more effective way of improving shareholder value
than trying to reduce costs. The degree to which costs could be reduced is limited
and, while cost control would be important, the best opportunities for enhancing
financial performance arise from growing the volume and/or the value of sales.
Strategic marketing is essential to revenue growth because it focuses the
organization on customers, competitors and the challenges of a constantly
changing marketplace. Central to Doyle’s view is the argument that marketing
expenditure should be viewed as an investment (rather than an annual cost) and
its impact monitored over a longer time period. Investment in activities such as
brand-building, establishing new distribution networks or moving into new
markets are all long-term activities. Their initial impact on sales may actually be
quite limited; their longer-term impact could be quite considerable.

Within any financial services provider, strategies develop at several levels. A

corporate strategy is concerned with the overall development of the business and
would include specific strategies for different areas (e.g. an IT strategy, a human
resource strategy, a marketing strategy). The marketing strategy focuses
specifically on the organization’s activities in relation to its markets.

Delivering superior value to customers lies at the heart of strategic marketing and
the development of a competitive marketing strategy. The notion of ‘superior
value’ highlights the importance of outperforming the competition. Indeed, when
talking more broadly about competitive strategy, Porter (2002) notes that:
Competitive strategy is about being different. It means deliberately choosing a
different set of activities to deliver a unique mix of value.
It is recalled that in order to conduct any marketing as well as promotion, a firm
should have a specific strategy in line with its product/service at corporate level
and then all other business units of the firm shall cascade their specific strategy.
This corporate level strategy could either be of the types stated below and after
selection of one, the market segmentation, targeting and positions follows. Then
after, the promotion shall be tuned in accordance with the selected and targeted
customers in order to position the brand.

2.1.1 Corporate Strategy Development Methods

According to Ennew and Waite (2007), corporate strategies can be developed
through either or application of more than one of the following tools of strategy
development

2.1.1.1 Growth Strategy: as indicated by Ennew and Waite (2007), this strategy
consists of four options, Market Penetration, Market Development, Product
Development and Diversification. Each strategy demands different scenario to be
applied for.

2.1.1.2 The Product Portfolio: it considers Matrix (the BCG and GE) and the
Product Life Cycle. Best (2005) stated that the BCG matrix is potentially useful,
but its recommendations must be interpreted with care. In particular, it is
important to recognize that it focuses only on one aspect of the organization
(market share) and one aspect of the market (sales growth). The GE matrix works
on similar principles, but concentrates more generally on trying to measure the
attractiveness of the market (rather than just measuring market growth) and
competitive strength (rather than just market share). This means that the GE
matrix gives a broader picture of the strengths and weaknesses of the product
portfolio, although it is often more difficult to construct, suggests using the GE
matrix to guide the choice of offensive versus defensive strategies. In line with the
product life cycle tool of strategy development it is essential not to think only of a
product’s position in the lifecycle. As Hooley (1995) has shown, strategy and
performance may be driven as much by market position (specifically, market
share) as by lifecycle stage.

2.1.1.3 Competitive Advantage: Porter (2002) explicitly discusses and known for
its five force model and accordingly, on the basis of the forces, Porter (2002)
suggests for Cost Leadership, Differentiation or Niche Marketing strategies.
Traditionally, banks have tried to reach out everyone in the community, but recent
researcher proposes that banks should aim to identify and serve
microsegments/Niche marketing/ Dawes & Brown (2000). The role of promotion
has been redefined in to managing long-term relationship with carefully selected
customers, including construction of a learning relationship where the marketer
maintains a dialogue with an individual customer Dawes & Brown (2000)

In addition, Jagersma P.K. (2003) argues for focused strategy stating the fact that
most banks are still focused on professionalizing their basic product-tailoring and
their customer classification skills. Their aim is to become excellent sellers of
excellent financial products and services. Most banks are product-oriented instead
of customer-oriented: they focus on their own needs, the needs of the seller. Thus,
banks have to develop focused strategies to identify, segment and exploit customer
needs that could offer promising potential. Formulating such strategies is a tough
job, implementing them may be even tougher. Implementing a focused strategy
means choosing between different alternatives that are often all attractive.

Hence, after developing a given strategy, a customer which is compatible and

embraced in the strategy has to be identified (Segmentation), Targeted and finally
the brand should be positioned.

2.2 Segmentation, Targeting and Positioning

2.2.1 Segmentation

The process of segmentation, targeting and positioning is central to effective

strategic marketing. Segmentation is concerned with the process of identifying
different groups of customers who are similar in ways that are relevant to
marketing. In order to segment a market, it is important to understand who
customers are, why they behave in particular ways and how they may be grouped
together. Targeting decisions can then be made based on the range of identified
segments. In order to choose the most appropriate target markets, it is necessary to
understand what different segments want and the extent to which the organization
can supply those wants. Finally, having identified target markets, the organization
must then consider how to position itself in those markets. Positioning refers to the
way in which an organization tries to communicate its value proposition to its
target market in order to convince customers that it has a distinct offer. In effect,
positioning is about the way in which the organization tries to build and
communicate its competitive advantage.

Meidan (1996), states that financial services are thought to be similar and this
entails the disregard of segmentation due to the homogeneous nature of products.
However, Ennew and Waite (2007) argue that traditionally, banks have treated the
personal banking market as homogenous and provided a single standard current
account to all customers. Increasingly, however, there is recognition that
customers do have differing banking needs and that there is still the potential to
develop specific products for specific segments. These, specific products for
specific segments, benefits both the service provider and receiver. Hence, despite
Median (1996) proposition that financial services are homogeneous, Ennew and
Waite (2007) argument outweighs need for segmentation and they state that
segmentation benefits as it facilitates Efficient Resource Utilization, effective
targeting of customers, facilitate competitive advantage, Directs the marketing
Mix and enhance customer satisfaction. In order to benefit all or most of the above
mentioned benefits, the segmentation should be, Measurable, Profitable,
Accessible and also be relevant. According to Kotler (2000) and Ennew& Waite
(2007), segmentation can be done in any of the following basis
1. Demographic 2. Socio-economic 3. Geographic 4. Psychographic
● age ● income ●country of ● attitudes
● gender ● financial assets domicile ● lifestyle
● family ● social class ● region or choices
relationships ●occupational locality ● beliefs
status ● metropolitan ● motives
●Personality type.
● ethnic group ● urban Vs. rural
● religious
affiliations
● life stage
●educational
attainment

Ennew and Waite (2007), explicitly deal the Life Stage basis of segmentation,
among the demographic elements, as it is not dealt in depth yet.

Basically, there is no single basis of segmentation method identified to

financial/banking services and so, each segmentation tool should be adopted in
accordance with its specific relevance to the institution/bank.

2.2.2 Targeting

After a given market is segmented, then of the various homogeneous segments one
or more than one segment shall be targeted. The targeting can be done in any of
the following methods suggested by Ennew and Waite (2007).

● Undifferentiated – serves an entire marketplace with a single marketing mix

which does not distinguish between sub-segments of the market

● Differentiated – an aggregate marketplace, such as banking, is organized

into a number of segments, each of which is targeted with a tailored marketing
mix
● Focused – a choice is made to target a small subset of the segments of a
multi-segment marketplace with a single marketing mix that best suits the needs of
that segment.

Focused targeting incorporates the following

1. Single segment concentration. In this approach, the organization

concentrates only on a single segment in the market and supplies products tailored
specifically to the needs of those customer groups. This approach is often
described as niche marketing. It is potentially highly profitable, because the
organization focuses all its efforts on a particular segment of the market where it
has a strong differential advantage. At the same time there are risks associated
with this approach, because if the segments were to disappear or a new competitor
enters in to the market, the organization could be vulnerable to a significant loss of
business. The general insurer Hiscox focuses on high net-worth clients, whereas
the Ecclesiastical Insurance Company focuses upon providing general insurance to
churches and allied organizations. Endsleigh Insurance has carved out a niche for
itself by focusing on the student segment.

2. Selective specialization. Selective specialization is another type of niche

marketing. However, rather than concentrating only on one segment the
organization chooses to operate in several (possibly unrelated) segments. This
approach targeting is less focused than single segment specialization, but probably
less risky.

3. Product specialization. Most markets can be seen as comprising a number of

different customer groups and a number of different but related products. The
organization 158 Financial Services Marketing that concentrates on supplying a
particular product type to a range of customer groups is pursuing a product
specialization strategy. This approach to market targeting may be particularly
appropriate to organizations with particular strengths or knowledge in relation to a
given technology or product. Thus, Al Baraka Islamic Bank in Bahrain, Bank
Islam in Malaysia and the Islamic Bank of Britain can be seen to be pursuing a
product specialization strategy by offering Islamic financial services (a particular
product type) to a range of different customer groups (segments) which range from
retail customers needing very simple banking products through to businesses
requiring very complex financing arrangements.

4. Market specialization. This approach is the opposite of product

specialization. Rather than concentrating on a particular product, the organization
chooses to specialize in meeting the needs of a particular customer group. This
strategy may be most suitable where knowledge of the customer group’s particular
needs is a particularly important basis for establishing a competitive advantage.
Private Banks pursue this type of approach in relation to high net-worth
individuals – they seek to provide a range of different financial products to meet
the needs of the high net-worth customers.

● Customized – each individual that comprises the target market is the subject of a
marketing mix that is tailored in some way to the individual’s specific needs.

Any of the above mentioned targeting methods can be applied to the banking
services but what matters is the context and state of the bank as well as the
market/customer.

2.3 What is Promotion?,

Generally, marketing consists of four elements, Product, Pricing, Placing and

Promotion. When we are referring to service marketing it adds three more
elements. In relation to this study’s subject matter, it is not enough for a business
to have good products sold at attractive prices. To generate sales and profits, the
benefits of products have to be communicated to customers. In marketing, this is
commonly known as “Promotion”. Promotion is all about companies
communicating with customers. And be it in goods or service products,
promotion still exists in any marketing mix. Then what is promotion?
 In short and precise manner, a promotion is defined as

It is a marketing function concerned with persuasively communicating to target

audiences about the component of the marketing program in order to facilitate and
exchange between the marketer and the consumer and to help satisfy the
objectives of both.

Promotion is primarily concerned with persuasive communication. That is,

promotion involves an attempt to persuade the target audience to embrace a
new attitude or to engage in a new behavior .Hall Mark wants the purchaser
to think of its cards “when you care enough to send the very best.”
The second concept in promotion is target audiences. For example, the target
market for Diet Coke consists of all consumers who are diet conscious.
The third component of the definition is that promotion is goal directed. For
the marketer, the objectives of promotion are to create brand awareness, to
deliver information, to educate, and to advance a positive image.
The aforementioned definition refers to the general promotion with respect to both
goods and services.

2.4 Promotion Mix

A business’ total marketing communications program is called the “Promotional

Mix” and consists of a blend of advertising, personal selling, sales promotion and
public relation tools. In this part, the seven promotional mix elements shall be
discussed and the 1st four elements shall be discussed along with advantages and
disadvantages.

Personal Selling: - according to Ennew and Waite (2007), personal selling is an

effective way to manage personal customer relationships. The sales person acts on
behalf of the organization. They tend to be well trained in the approaches and
techniques of personal selling. However sales people are very expensive and
should only be used where there is a genuine return on investment. In addition,
due to its expensiveness the bank should only/may apply personal selling in order
to approach and grasp potential customers who had the ability to attract others
through word-of-mouth and the like means. For example salesman are often used
to sell cars or home improvements where other service products where the margin
is high.

Sales Promotion: - Kotler (2000) states that sales promotion tends to be thought
as being different than other all promotions, apart from advertising, personal
selling and public relations. For example Buy One Get One Free. Others include
couponing, money-off promotions, competition, free accessories (Such as free
blades with new razors), introductory offers (Such as buying digital TV and get
free installation), and so on. Each sales promotion should be carefully costed and
compared with the next best alternative.

Public Relation (PR): - the Institute of Public Relation defines it as ‘the

deliberate, planned and sustained effort to establish and maintain mutual
understanding between an organization and its publics’. It is relatively cheap, but
certainly not cheap. Successful strategies tend to be long term and plan for all
eventualities. All airlines exploit Public Relation; just watch what happens when
there is a disaster. The pre-planned PR machine clicks very quickly with a very
effective rehearsed plan.

Advertising: - Advertizing is a ‘Paid form’ of communication. It is used to develop

attitudes, create awareness and transmit information in order to gain a response
from the target market, Armstrong and Kotler (2003). There are many advertizing
‘media’ such as newspapers (local, national, free trade), magazine and journals,
television (Local, national, Terrestrial, Satellite) cinema, outdoor advertizing
(Such as posters, Billboards bus sides).

Direct Mail: - Williams and Weiner (1990) states that direct mail is very highly
focused means of marketing specially up on targeting consumers based upon a
database. As with all marketing, the potential consumer is ‘defined’ based upon a
series of attributes and similarities. Creative agencies work with marketers to
design a highly focused communication in the form of a mailing. The mail is sent
out to the potential consumers and responses are carefully monitored. For
example, if you are making medical text books, you would use a database of
doctors’ surgeon as the basis of your mail shot.

Trade Fairs and Exhibitions: - Broom, Casey, and Ritchey (1997), argue that
such approaches are very good for making new contacts and renewing old ones.
Companies will seldom sell much at such events. The purpose is to increase
awareness and to encourage trial. They offer the opportunity for companies to
meet with both the trade and the consumer.

Sponsorship: - sponsorship is where an organization pays to be associated with a

particular event, or cause. Companies will sponsor sports events such as the
Olympic. The attributes of the event are then associated with the sponsoring
organization, Chang and Chen (1998)

Table A. Promotion Mixes Advantage and Disadvantage

Mix Element Advantages Disadvantages

Advertizing Good for building awareness Impersonal-

Effective at reaching a wide cannot answer all a

audience customer’s questions

Repetition of main brand and Not good at getting

product positioning helps build customers to make a
customer trust
final purchasing
decision
Personal Selling Costly: employing a
Highly interactive: - lots of
sales force has many
communication between the
hidden costs in
buyer and seller
addition to wages
Excellent for communicating
Not suitable if there are
complex/ detailed product
thousands of
information and features
important buyers
Relationships can be built up:
important if closing the sale
make take a long time

Sales Promotion Can stimulate quick increase in

If used over long term,
sales by targeting promotional
customers may get
incentives on particular
used to the effect
products.
Too much promotion
Good short term tactical tool may damage the brand
image

Mix Element Advantages Disadvantages

Public Relation Risk of losing control:

Often seen as more “credible” it cannot always
control what other
since the message seems to be people write or say
coming from a third party about your product

(Eg.TV)

Cheap way of reaching many

customers, if the publicity is
achieved through the right
media

Adopted from Kotler (2000)

2.5 Promotion in Financial Sector
The general promotion mix contains about seven elements, however all are not
applicable to the financial service sector (banking) and the following five are the
promotion mix elements which are relatively appropriate to the banking sector.

Promotion is one of the ways by which an organization tries to reach its publics.
This is performed through the five elements of the promotion mix, Advertizing,
Sales Promotion, Personal Selling, Public Relation and Direct marketing.
Czinkota&Ronkainen (2004). With the growing importance of the financial sector,
pressures are escalating for more effective marketing management of the financial
services. In spite of the major changes on the market of financial institutions, there
are indications that banks have not yet successfully embraced the marketing
philosophy or achieved levels of its implementation consistent with satisfied
customers. Financial institutions are realizing that their established promotion
practices are inadequate for new market conditions as level of customer defection
in the sector grow. Traditionally, banks have tried to reach out to everyone in the
community, but recent research proposes that banks should aim to identify and
serve micro-segments. Dawes & Brown (2000)

The role of promotion has been redefined into managing long-term relationships
with carefully selected customers, including construction of a learning relationship
where the marketer maintains a dialogue with an individual customer. Dawes &
Brown (2000). Due to the high dependency of service on the personnel who
provides the services, they are one of the most decisive resources of a bank. Their
competence will determine the quality of the bank and how well it operates.
Marquardit (1994).
Chapter Three

Data Presentation, Analysis and Interpretation

In this chapter, within case analysis will be presented, comparing the theories with
what has been found from the questionnaire, interview and other secondary
sources.

On the second chapter various promotional tools/mixes are discussed in line with
its relevance, merits and demerits. In this chapter each shall be discussed against
the finding in United Bank SC.

Baxter and Matear (2004), states that a promotion is all about communicating the
customers which in turn leads to long lasting relation with them. This long lasting
relation would result Profit.

3.1 Advertizing

Both responses from the primary and secondary sources are presented, analyzed
and interpreted.

On the questionnaire, certain questions has been forwarded specific to the

advertizing to employees and customers too. The questions are found at the
appendix A part. The responses are presented below.
Table 1 Employees informed about the bank’s service through its promotion

Cumulative
Percent Valid Percent Percent
Valid Strongly Agree 1.3 1.3 1.3
Agree 11.9 12.0 13.3
Neutral 38.6 38.8 52.1
Disagree 43.1 43.4 95.5
Strongly Disagree 4.5 4.5 100.0
Total 99.4 100.0
Total 100.0

Table 1 show that more than 86% of employees either strongly disagree or
disagree with the premise that the bank’s promotion service enables them to know
about its service. Due to this fact customer would not be interested to the bank’s
service unless and otherwise the customers test the service by themselves or else
by any other fortune than advertisement. Moreover, it has been said that promotion
is all about communication and failing to communicate entails limitation on
expansion of market share, sales volume as well as profit of the bank. According
to its annual report for the year 2010, United Bank Sc had customers who are not
more than 300,000 with a market share of only 6.45% of the financial market
(NBE 2010 annual Report). Without denying the fact that various factors comprise
its market share status, still ineffective communication/promotion is a significant
factor for such minimal market share.
Table 2 Customers informed about the bank’s service through its promotion

Cumulative
Percent Valid Percent Percent
Valid Strongly Agree 14.7 14.8 14.8
Agree 11.0 11.0 25.8
Neutral 8.2 8.2 34.0
Disagree 22.6 22.6 56.6
Strongly Disagree 43.3 43.4 100.0
Total 99.7 100.0
Total 100.0

Table 2 show that more than 74% of customers either strongly disagree or disagree
with the premise that the bank’s promotion service enables them to know about its
service. As a result, number of customers the bank secure so far becomes modest
in line with the number of years that bank had been in service (Since 1998 GC). In
banking service or even in any other business, customers are sources of income.
Even if the level of relation is not empirically set, it is very clear that number of
customers/ market share had positive relation to the profit of the institution.

On the interview, the following question has been forwarded to the Marketing and
Corporate Planning staff concerning advertisement
When was the last time you run an advertisement, which is other than the
occasional, have you evaluate the advertisement and have set an objective for
the advertisement?
He had answered that, the advertisement has run before 18months ago and the
result of the assessment has not yet been disclosed. As it is common to every
other promotional tool of the bank, the advertisement has no objective to
accomplish for.
United Bank uses both the under-the-line and above-the-line advertisings in
accordance with Median (1996) who states that a financial organization can use
both the under and above the line advertisements in order to address different
segments of customers. However; United Bank has not developed a promotion
strategy which is aligned with its Corporate Strategy.

In addition Median (1996) also suggests for brand as well as institutional

advertisements but still United Bank has not conducted such specific type of
advertisements. Especially as the empirical data found from the questionnaire
indicates, greater number of customer and employees confirm that they had not
been informed about the bank through the promotion of the bank.

Table 3 Products provided by the bank but not promoted

Cumulative
Frequency Percent Valid Percent Percent

Valid Strongly Agree 60 18.8 18.9 18.9

Agree 171 53.6 53.8 72.6

Neutral 74 23.2 23.3 95.9

4.1
Disagree 13 4.1 100.0

Total 318 99.7 100.0

Missing System 1 .3
319

Total 100.0

Table 3 has also evidence that less than 5% of the respondents disagree with the
proposition which claims about services provided by the bank but not promoted.
This shows that of the services that the bank provides, most of which are not
advertized. Hence, customers are not attracted to the services unless they by
themselves experience it. However, ‘how could the 1 st exposure could be created
unless the bank able to communicate itself to them’ would only properly answered
through the promotion/advertisement of the bank.
Table 4 Level of Products promoted but not provided by the Bank
Cumulative
Frequency Percent Valid Percent Percent

Valid Strongly Agree 13 4.1 4.1 4.1

Agree 29 9.1 9.1 13.2

Neutral 45 14.1 14.2 27.4

Disagree 105 32.9 33.0 60.4

Strongly Disagree 126 39.5 39.6 100.0

Total 318 99.7 100.0

Missing System 1 .3
319 100.0
Total

Table 4 also confirms that still United Bank SC has various products at hand and
provided to them (Customers) but not promoted well. Only 13.2% are positive to
the proposition that the bank unable to provide some products which are
promoted. On the other hand 72.6% of the respondents are negative to the
proposition that is stated as the bank unable to provide some products which are
promoted, This clearly shows that still the bank had various products ready for
service and already on service as well; however, the bank could not be able to
expose those service to the market through the available media. The reason why
the bank could not expose its products to the market needs further study and is
beyond the scope of this study too.

Table 5 Level of customers recommending the Bank’s service

Cumulative
Frequency Percent Valid Percent Percent
 Valid Strongly Agree 205 64.3 64.5 64.5

Agree 92 28.8 28.9 93.4

Neutral 21 6.6 6.6 100.0

Total 318 99.7 100.0

Missing System 1 .3

31
9
Total 100.0

Table 5 evidence that customers who respond to the questionnaire do recommend

others to use the services provided by the bank because of the reason that available
services of the bank are more than they heard through the promotion of the bank.
As shown on table 5, more than 93% of the respondents recommend other
prospective customers to be customers of United Bank. Here, it is better to note
that the word-of-mouth of customers is not necessarily found due to the
promotional tools applied by the Bank. According to Parasuraman and Zeithaml,
(1991), customer satisfaction is the level by which level of service provided by the
institution exceeds expectation of the customer and others raise this issue as one of
the mechanisms to win customers. However, Parasuraman and Zeithaml, (1991)
forwards from the point of service quality (SERVQUAL) instead of promotion.
Hence, it is not possible to align United Bank’s promotion case with that of
Parasuraman and Zeithaml, (1991) issues of SERVQUAL.

3.2 Sales Promotion

Sales promotion is the other mix. Both the questionnaire and interview has
addressed it. On the questionnaire customers are requested to point out which of
the promotion mix are they exposed/experienced with.
Table 6 Level of Customers exposed to the respective promotion mix bank
 Valid Cumulative
Frequency Percent Percent Percent

Valid Sales Promotion 11 3.4 3.5 3.5

Personal Selling 87 27.3 27.4 30.8

Public Relation 132 41.4 41.5 72.3

Direct marketing 88 27.6 27.7 100.0

Total 318 99.7 100.0

Missing System 1 .3

Total 319 100.0

Only 3.5% of the respondents has experienced with sales promotion of the bank.
This evidences that almost the bank has offered no promotion service at all.
Hence, the variables of the promotion which are left for the bank becomes limited
or decreased by one.
And also on the interview a question about the type of sales promotion tool that the
bank uses is forwarded too. The response of the interviewee is also same as that of
the questionnaire. He had answered that so far the bank has no sales promotion
service which is qualified for saying “This is a sales Promotion” and due the
features of sales promotion people may think that it is not applicable to services,
banking services

Basically, as Peatti and Peatti (1994) claim, coupons, special offers and other
forms of price manipulations are the dominant forms of sales promotion. In
addition, in accordance with Median (1996) sales promotion tools have the
advantage of an attention gaining quality and it provides a “Bargaining Chance”
with the customers. Though the above mentioned scholars had indicated benefit of
sales promotion, United Bank has not yet develop a promotion mix of a kind.

In accordance to (ibid) sometimes giveaways are provided, which are mostly

intended, for corporate customers and for its main private customers of the ‘Upper
Segment’ and also state that financial institution must be careful in the use of sales
promotion. However this cannot be applied to United Bank since it does not yet
conduct it widely.

Table 7 Level of Employees encountered the Promotion Mix of United Bank

Cumulative
Percent Valid Percent Percent
Valid Advertizing 9.6 9.7 9.7

Sales Promotion 1.3 1.3 11.0

Personal Selling 9.0 9.1 20.1
Public Relation 50.2 50.5 70.6
Direct marketing 29.3 29.4 100.0
Total 99.4 100.0

Table 7 depict that only 1.3% of the employees encountered the promotion mix
type called Sales Promotion. Basically United Bank does not have a sales
promotion package which is clearly enriched and indicated as sales promotion
activity. However, even if the bank could not identify and provide them (sales
promotion tools) to its customers in designed manner, it still provide some which
employees had identified it as ‘Sales Promotion’

3.3 Public Relation

Unlike other promotion mix of the bank, public relation is well recognized by
employees of the bank. Table 7 evidence that 50.5% of the respondents
acknowledge that they had an exposure to the public relation promotion mix of the
bank. On the other hand , referring to table 6, still 41.5% of the customers respond
that they had an exposure to the public relation of the bank. Where as a response
for the question forwarded to the interviewee does not coincide with that of the
questionnaire. The question for the interview is stated as ‘How do rate the overall
public relation of the bank?’. He replied as though it is necessary to have a public
relation officer so as to duly prepare a targeted message, the bank has not yet avail
such a person who could give a press release independently. The interviewee has
also extends that, currently due to various factors the rivalry among the financial
sector is very high and this demands a stronger communication effort. Of the
efforts to be made, promotion of products plays the greatest role and one of which
is called public relation. Public relation by itself demands for setting objective,
identifying the audience, planning the message and many other requirements.
After going through all those requirements, the press release shall be conducted by
the person in charge for it. However, so far it is only the president of the bank who
makes various press releases to the public and this consumes his precious time
which he should spend in dealing on various other issues, as a president. It is very
clear that giving a press release concerning an institution which provides complex
products (Financial Service) requires time to prepare the message (which is too
long) as well as to conduct it. Such resource should be utilized too effectively to
save it and spend it very wisely.

Basically the interviewee has also explained that the preparation of the message
for the press release is prepared by the Marketing and Corporate Planning
Department however this shall never alleviate the need for an autonomous person
who is in charge for the preparation and conduct of the message/public relation.

So far United Bank has no person who gives press release and any other issues as
a public relation/communication person.

According to Kotler (2000), Public Relation has specific objective of, assisting in
the launch of new products, assisting in repositioning a mature product, building
interest in a product category, influencing specific target groups, defending
products that have encountered public problems, and building the corporate image
in a way that reflects favorably on its products. While making an interview with
the concerned staff of United Bank, it has been understood that the bank did not
consider such facts rather; the bank makes a press release in unconditional and
untargeted manner.

The data from the questionnaire also evidence that both the employees and
customers are familiar with the bank but they could not identify the reason or
theme of the public relation.

Kotler (2000) has identified the necessity or theme for any public relation conduct.
Of those themes, the public relation of United Bank had mated none. Although the
bank’s promotion guideline allow other management bodies to give a press release
provided by the approval of the president of the bank, none has give a release yet
and it is only the president of the bank who gives the press release. Most of his
press releases are not done as representative of United Bank but as being a person
who is in charge of other corporate bodies like, chairman of the private bank’s
association or else with regard to the ATM service to be launched jointly with
Awash and Nib international banks. The public relation hardly addresses United
Bank sc alone. The reason why employees encounter the public relation more than
that of customers is due to the fact that they already had identified the president of
the bank and so in whatever forms of representation the president appears,
employees simply thought that it is on behalf of United Bank. Whereas customers
do not necessarily identify who is the president of the bank and whenever he
appears on media, they only identify him per the organ he represents for (the
association, the joint ATM venture or . . .)

Concerning the giveaway and coupons, he/interviewee/ believes that the bank does
not offer sufficient packages of a kind. The reason why the bank does not offer
such package is not explicitly discussed and off course which is beyond the scope
of this research Paper. However it is possible to say that a strategic promotion
activity has to be developed and carry out in order to add the effectiveness of the
bank’s promotion service.
Ennew and Waite (2007), incorporates sponsorship as part of public relation and
the bank do involve in sponsorship but when it is compared with other
promotional tools, it is the least utilized one.

3.4 Personal Selling

Personal selling is the 3rd most recognized means of promotion next to the public
relation and direct marketing. This is also evidenced by table 6 by the customers
response figure of 27.4%.

Responses of employees indicated under table 7 also confirms its 3 rd state among
the promotion mix of the bank. However, it is only 9.1% of the employees who are
positive unlike the customers who are 27.4%.

The interview has no evidence explicitly dealing with personal selling.

Scholars like, Kotler (2000), state that personal selling is very vital tool for
complex products such as financial products. The personal selling might be about
actively pushing products /Sales Push/ to consumers and persuading them to the
benefits of purchase. Moreover, personal selling provides an opportunity for feed
back and also addressing of targeted customers/markets.

Even though Kotler (2000) recommends that person selling is very vital tool in
addressing complex products like financial services, responses of customers and
employees indicate that only few effort has been made to advance the promotion
through personal selling. Basically Kotler (2000) also state that personal selling is
the very vital but very expensive means of promotional tools.

3.5 Direct Marketing

Next to the public relation, it is direct marketing which is well recognized by the
respondents. Table 6 show that 29.4% of customers confirm that they had response
about type of promotional tools of the bank which they are exposed with. The
other respondents, employees, response also weighs about 29% favoring direct
marketing.

‘How do you treat direct marketing?’ is the question forwarded to the interviewee
and he had answered that the direct marketing and personal selling are conducted
in combined manner. He also explained these mixes of the promotion are better
utilized than others. Especially, up on opening of new branches, the Marketing and
Corporate planning Department of the bank involves with the respective branch
managers and approach prospective customer physically without any other
intermediary. Basically it is the marketing and corporate planning department of
the bank who asses the market and proposes opening a branch. Hence, when the
branch commences providing service, it is expected to show what it had sought up
on the assessment and justifying that there is a potential market and a need for
opening a branch there.

Referring to the responses made to the questionnaire and interview, it is evident

that the responses are not alike each other. The questionnaires evidence that public
relation is most utilized type of promotion mix where as the interview state that it
is most utilized type among the promotional mixes. Hence, it is possible to say that
what the bank thought about the promotion mixes and what is on floor are very
different. This variance can be overcame through impact assessment of each
promotion tool however the one which had been made for an advertisement aired
before 18 months is still not disclosed so far.

Direct marketing is defined and explained on chapter two and it is thought that due
to technological advances, the role of direct mail is getting minimal. However,
According to its UK trade association, the Direct Marketing Association (DMA),
it is growing at an annual rate of 9% and accounts for some £13.6bln of marketing
budgets. Thus it has not suffered any decline in the face of the rapid growth of
telemarketing and the Internet. Unlike those most developed countries, Ethiopia is
not a county which is advanced in technology and so the concern for influence of
the advancement in technology over the direct marketing is minimal. However,
United Bank is not exerting its utmost effort; table 6 shows only 29.3% of the
respondents have encountered direct marketing. Direct marketing, as per to Ennew
and Waite (2007), with its ability to reach and influence named individuals while
minimizing cost, was the logical medium.

The above mentioned discussion refers to addressing the 3rd research question
which is based on the responses of the questionnaires, interview and related
literatures. The research question is stated as “What are the appropriate Promotion
mixes which shall be incorporated in promotion strategy development”

The other data gathered is from a secondary source, financial report of the bank.

Table 7 Promotion Expense Vs profit of the bank from 2007 till 2011
Promotion
Fiscal Year Profit Promotion Exp./Profit
Expense

2007 1.7Mln 86Mln 1.98%

125.8Ml
2008 2Mln 1.59%
n
2009 1.5Mln 133Mln 1.13%
247Mln
2010 2.8Mln 1.13%
*
2011 3.5Mln 322Mln 1.09%
*After declaration of the profit, the National Bank of Ethiopia has claimed that
due the devaluation, banks had reported ‘windfall’ profit and so it claims 75% of
the profit generated from the devaluation. (www.reporter.com).

The researcher has gone through audited financial reports of the bank reported for
the year 2007 till 2011 and observed that:

On the financial statement, all promotion expenses are squeezed and

debited to an account called ‘Advertizing and Publicity’. This account is used to
debit for expense of every promotion mix elements. However, this brings about
difficulty when there is a need to assess each promotion element in terms of it
expenditure.

The account tile only consists of two promotion mix elements and the others
are not incorporated on the account title. This definitely creates confusion when
some stranger is assigned as employee of the bank or else observes the
statement.

Referring to the percentage of the promotion expense against the profit, the
promotion expense ranges only from 1.09 up to 1.98%. On chapter two it has
been said that promotion expense is not a cost rather an investment. Hence,
spending more in the notion of investment should be commenced. Table 8 shows
that both employees and customers confirm that ,in comparison to other banks,
the overall promotion of the bank weaker. More than 90% of employees and
94.7% of customers confirm that the bank’s promotion service is not better than
that of other banks.

Table 8 Betterment of United Bank’s promotion service than other banks

Cumulative
Frequency Percent Valid Percent Percent

Valid Strongly Agree 16 5.0 5.0 5.0

Neutral 15 4.7 4.7 9.7

Disagree 246 77.1 77.4 87.1

Strongly Disagree 41 12.9 12.9 100.0

100.0
Total 318 99.7 .
Missing 3
System 1 100.0

Total 319
 In conclusion of this chapter, Promotional strategy deals with all aspects of
communication between an organization and its customers, its employees and
other interested parties. Five main promotional tools are available to an
organization – advertising, publicity, sales promotion, direct marketing and
personal selling. The balance between these tools will vary according to the nature
of the overall marketing strategy, the characteristics of the product, the resources
of the organization and the nature of the target market. Whatever promotional mix
is chosen, the effectiveness of the communications process depends on the
development of a clear and unambiguous message that is presented to the right
target audience, at the right time and through the most appropriate medium.

Promotion has always been important in financial services, but if anything its
importance is increasing. The market for financial services is going through a
period of rapid change, and levels of competition are increasing. Deregulation,
increased consumer sophistication and technological developments have
encouraged a rapid growth in marketing, and particularly in promotional activity.
Financial services institutions now spend significant amounts on communicating a
variety of product and brand messages to a range of target audiences. With
promotion attracting a significant level of marketing expenditure, it is important
that promotional activity is careful planned and implemented and that it is
consistent with the rest of the organization’s marketing activities.
 Chapter Four

Summary of Major Findings, Conclusions and Recommendations

On the preceding chapter, various data are presented and discussed briefly.
These data reflects what is available on the floor and per those facts and based on
the sound literatures presented on the 2nd chapter, the possible conclusions and
recommendations are drawn.

4.1 Summary of Findings

Before forwarding the conclusion and recommendation, it is necessary to state

what have been found from the research in precise manner.

In premier state, the bank does not develop any promotion strategy document
yet. Due to this fact, what ever things done under the title of promotion shall be
considered as something without objective, no segmentation as well as targeting
and with out an image to position in the mind of the prospective and actual
customer.

With regard to the promotion expense; the promotion expense is in

minimum ration against the profit. This means that the amount of expenditure
spent and allotted for the promotion is minimum due to this fact the number of
both customers and employees of the bank who are informed about the services
provided by the bank becomes limited.

The other is about the title of the account designated for expenses of
promotion. Shortly, the description of the account does not express for what it is
intended for.

4.2 Conclusions
I. In the first place, it has been understood that the bank has never developed
a promotion strategy. The reason behind not developing such necessary
document, Promotion Strategy, is not the subject matter of this Research
Paper and this Research Paper only finds out that United Bank SC does not
have a Promotion Strategy Document

II. Basically Segmenting, Targeting and Positioning are items to follow the
promotion strategy however; there is no promotion strategy and so no
Segmented Market where the bank aims to target further from those
segmented markets. The positioning, in principle, is done on the targeted
market however as long as there is no targeted market, there would not also
be no positioning.

III. The bank does not have properly integrated promotion mix. This
conclusion is also drawn from the above mentioned conclusion. As
discussed on chapter two, each promotion mix has its own characteristics
and had an aim of addressing different audience. Hence, using/applying
any of the promotion mix entirely depends on identification of who the
target audiences are. And in order to identify the targeted
audience/customer, it requires segmentation of the total market/customer in
to homogeneous groups. Of those homogeneous groups, the one which can
be addressed through the capabilities of the bank shall be targeted. This
targeted market / customers shall be the one where the bank intends them to
think the bank in the way the bank does to itself which is called
Positioning.

Then the promotion mix elements are tuned in order to accomplish the fact
discussed in the previous paragraph.

IV. Since the promotion of United Bank SC is NOT performed in accordance

to the principles stated on literatures discussed so far, it cannot be able to
form a long lasting relation. As long as the bank could not form a long
 lasting relation with customers, compliment of the promotion on the bank’s
profit become minimal. In other words, since the promotion of the United
Bank SC is not tuned in accordance with the sound principles, it could not
become effective. Hence, compliment of such promotion service on profit
becomes ineffective.

V. The promotion expense of the bank is too minimum to make a difference

on the communication of the bank with the public. In addition, the account
title also creates some confusion on perception.

VI. Though there is no promotion strategy in the bank, there is some guideline
on promotion of the bank. However, even the guideline is not fully enacted.
The guideline by itself dictates for promotion strategy, yet unavailable.
Most of the articles limits the autonomy of the department and/or the
departments manager. On the other hand the press release issue and other
promotion mix management are in critical condition.

The above mentioned conclusions are precisely stated and the next thing to
forward becomes the recommendation.

4.3 Recommendations

The recommendations are possibly stated in general terms and are expressed in
subtle form under the conclusion part. It is concisely forwarded in the following
terms.
In the first place United Bank should develop a Corporate Strategy at
corporate/overall level strategy, if it already has it well and good then proceed to
the next. It is identified that the bank does not have a promotion strategy ever
and yet. Hence, the bank must develop a promotion strategy so as to maximize
its profit, which the common goal of any firm established for profit. Developing
such strategy requires professionals who are well experienced and qualified for
discharging such duty. Otherwise, a “Strategy” that is just written but does not
assess the scenarios, variables and the likes would rather become a hassle for the
Bank itself. Following the proper development of the promotion strategy, the
Segmentation, targeting as well the positioning issues shall be performed and
finally the promotion mix shall be made in alignment with all other strategies of
the bank.

Those aligned promotion mix elements should also have an indicator in order to
evaluate each of the promotion mix’s performance. Marketing Education
Resource Center, Columbus, OH (2000) indicates various s variables which
enable to weigh out every promotion mixes. Such indicators helps to properly
identify the gap and fill it with proper way of closing the gap. These indicators
would help the bank to evaluate the currently running promotions and discover
where the bank’s promotion lays. Conducting such evaluations could cost the
bank various things however whatever the costs are evaluating is very vital.

Finally, this Research Paper intends to address issues raised under statement of
the problem and the research question and is never been intended to totally
disregard what United Bank is doing so far. Rather, it is only to bring another
view point/dimension about the Promotion of Commercial Banks specific to
United Bank.
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 Appendix-A

Addis Ababa University

School of Commerce

Postgraduate Study in Marketing Management

Questionnaire To Customers

Dear respondent,

This questionnaire is developed by a post graduate student of the Addis Ababa

University-School of Commerce in order to assess Effectiveness of Commercial Banks’

Promotion Strategies on their Profit: A case study on United Bank S.C.

Since none of your response is forwarded to any other 3rd party and is kept confidential,

please answer each questionnaire with no fear of repercussion. Moreover, the success or

failure of this case study entirely depends on your responses; hence please respond each

question as appropriately as possible.

Thank you in advance for your utmost cooperation.

 1. For how many years have you work with United Bank S.C.?
Less Than one Year Between Seven and Nine

Between one and three More than Nine

Between Four and Six

2. How did you become one of the customers of the bank?

By the promotion of the bank By Recommendation of other customers

By recommendation of employees Due to location convenience

Others, please state_____________________________________________

3. Which of the following promotion mix have you encountered with in United
Bank?
Advertizing
Public Relation

Sales Promotion Direct marketing

Personal Selling

4. Please rate the following promotion mixes of United Bank as 1 for most
preferred through 5 for least rated

Advertizing
Public Relation

Sales Promotion Direct marketing

Personal Selling

5. How do you rate the overall promotion of the bank

Excellent Very Good

Good Fair

Poor
The Following are the basic services provided by the bank:

Deposit: Saving, Special Saving, Current, and/or Time Deposit

Loan: Short Term Loan, Medium Term and/or Long Term
 International Banking/Foreign: TT, CAD and/or LC
Money Transfer: International and/or Domestic
Others: Telephone Banking, Internet Banking, and SMS Banking

6. Have you been already informed about the services of the bank, which are listed
above, by the bank’s promotion?
Strongly Agree Agree

Neutral Disagree

Strongly Disagree

7. Do you believe that the services provided are to the level of the promotion?
Exceeds the Promotion As to the promotion

More or less, as to the promotion Less than the promotion

8. There are products which are promoted by the bank but not provided

Strongly Agree
Agree

Neutral Disagree
Strongly Disagree

9. There are products which are provided by the bank but not promoted
Agree Strongly Agree
Neutral Disagree

Strongly Disagree

10. Employees of the bank help you in knowing the services provided by the bank.
Agree Strongly Agree
Neutral Disagree
Strongly Disagree

11. I recommend others to use services provided by the bank

Strongly Agree
Agree

Neutral Disagree

Strongly Disagree
12. I forward suggestions with respect to services of the bank and the bank enacts
accordingly
Strongly Agree Agree

Neutral Disagree
Strongly Disagree

13. The Promotion of the bank is better than that of other banks

Strongly Agree
Agree

Neutral Disagree
Strongly Disagree

14. Any strong or weak point about the promotion mix of the bank Appendix-A

Addis Ababa University

School of Commerce

Postgraduate Study in Marketing Management

Questionnaire To Employees

Dear respondent,

This questionnaire is developed by a post graduate student of the Addis Ababa

University-School of Commerce in order to assess Effectiveness of Commercial Banks’

Promotion Strategies on their Profit: A case study on United Bank S.C.

Since none of your response is forwarded to any other 3rd party and is kept confidential,

please answer each questionnaire with no fear of repercussion. Moreover, the success or

failure of this case study entirely depends on your responses; hence please respond each

question as appropriately as possible.

Thank you in advance for your utmost cooperation.

1. How many years have you work in United Bank S.C.?

Less Than one Year Between Seven and Nine

Between one and three More than Nine

Between Four and Six

2. What is your Position in the bank?
3. Which of the following promotion mix have you been encountered with in
United Bank?

Advertising
Public Relation

Sales Promotion Direct marketing

Personal Selling

4. Please rate the following promotion mixes of United Bank as 1 for most
preferred through 5 for least rated

Advertizing
Public Relation

Sales Promotion Direct marketing

Personal Selling

5. How do you rate the overall promotion of the bank

Excellent Very Good

Good Fair

Poor
6. Please list the basic/Usual/ and unique services provided by the bank
 7. Have you been already informed about the services of the bank, which you
listed above, by the bank’s promotion?
Strongly Agree Agree

Neutral Disagree
Strongly Disagree

8. Do you believe that the services provided are to the level of the promotion
Exceeds the Promotion As to the promotion

More or less, as to the promotion Less than the promotion

9. There are products which are promoted by the bank but not provided
Strongly Agree Agree

Neutral Disagree
Strongly Disagree

10. There are products which are provided by the bank but not promoted
Strongly Agree Agree

Neutral Disagree

Strongly Disagree 11.I recommend others to use

services provided by the bank
Strongly Agree Agree

Neutral Disagree

Strongly Disagree
12.I forward suggestions with respect to services of the bank and the bank
Enacts/comprehends

Strongly Agree
Agree

Neutral Disagree

Strongly Disagree 13.The Promotion of the bank is

better than that of other banks
Strongly Agree Agree

Neutral Disagree
Strongly Disagree

14.Any strong or weak point about the promotion mix of the bank
/

.
 1. ?

2. ?

3. ?

/Advertizing

/Public Relation

/Sales Promotion /Direct marketing

/Personal Selling

4. 1
5

/Advertizing

/Public Relation

/Sales Promotion /Direct marketing

/Personal Selling

5.
 :

: , , ,/
: ,
: TT, CAD /LC
:
: , ,,

6.
?

7. ?

8.

9.
10.

11. / /

12.

13.

14.
 Declaration

The Project Paper is, my original work, has not been presented for a

degree in any other university and that all sources of material used for the

thesis have been duly acknowledged

YosefBerhanu Dr. GetachewTeka

Researcher Advisor