Promotional Activity Assessment

ASSESSMENT OF PROMOTIONAL ACTIVITY
(In the Case of Commercial Bank of Ethiopia Assela Branch)
ARBA MINCH UNIVERSITY
COLLEGE OF BUSINESS AND ECONOMICS
DEPARTMENT OF MANAGEMENT
BY: YORDANOS ASSEFA
A RESEARCH PAPER SUBMITTED TO THE DEPARTMENT OF MANAGEMENT IN
PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE BACHELOR OF
ARTS DEGREE IN MANAGEMENT
ADVISOR: TEZANA B. (MBA)
JUNE, 2022
ARBA MINCH, ETHIOPIA

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DECLARATION
I declare that this study is my own original work and no one involved without me and my
advisor. I have undertaken the research work independently with the guidance and support of my
research advisor. This study has not been submitted for any degree or diploma program in this or
any other institutions and that all sources of materials used for this study have been duly
acknowledged.
Declared by:-
Name: Yordanos Assefa
Signature: ___________
Date: _____________
Place: Arba Minch Ethiopia

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CERTIFICATION
This research work is conducted under my supervision and fulfills all requirements of research
standard of the program. I hereby approve the submission of the senior research project for
examination.
Certified By:-
Advisor Name: Tezana Bekele (MBA)
Signature: _____________
Date: _____________

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BOARD OF EXAMINERS APPROVAL SHEET
This is to certify that the senior research project prepared by Yordanos Assefa, entitled;
“Assessment of Promotional Activity in the case of Commercial Bank of Ethiopia (Assela
Branch)” and submitted in partial fulfillment of the requirements for the degree of Bachelor of
Art in Management complies with the regulations of the University and meets the accepted
standards with respect to originality and quality.
Approved by Board of Examiners:
Chairman, Department Signature Date
------------------------------------------- ----------------------- --------------------
Advisor Signature Date
------------------------------------------- ---------------------- ---------------------
External Examiner Signature Date
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Internal Examiner Signature Date
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ACKNOWLEDGMENT
First and foremost I would like to convey my sincere gratitude to my research advisor Mr.
Tezana Bekele (MBA) who has supplied me invaluable constructive ideas and suggestions on
my study work. I would also like to thank him for encouraging me during writing this research
and his thorough follow up of my progress. For his invaluable suggestions, constructive
criticism, motivation and guidance for carrying out research analysis. His encouragement
towards the current topic helped me a lot in this project work which also created an area of
interest for my professional career ahead.
My special thanks go to Prof. Dr. Zenebe Mekonnen, Mr Gutu D.(MBA),Miss Tizita Kebede
(M.Sc) and Manager of Commercial Bank of Ethiopia Assela Branch for their help, support and
willingness to share their experience of different constrictive idea for their special effort in this
work in different way throughout the task.
Lastly, it doesn’t mean the least I would like to say thank you to the Kanenus College IT
laboratory staffs for their collaboration, willingness and curiosity to achieve our laboratory
work in the specified schedule successfully.

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Contents Page
DECLARATION.............................................................................................................................. i
CERTIFICATION........................................................................................................................... ii
BOARD OF EXAMINERS APPROVAL SHEET........................................................................... iii
ACK NO WLEDGME NT ..................................................................................................................iv
ACRONYMS..................................................................................................................................vii
LIST OF FIGURE.........................................................................................................................viii
LIST OF TABLE.......................................................................................................................viii
ABSTRACT.......................................................................................................................................x
CHAPTER ONE...............................................................................................................................1
1. INTRODUCTION.........................................................................................................................1
1.1. Background of Study..............................................................................................................1
1.2. Statement of the problem........................................................................................................2
1.3. Research Questions.................................................................................................................3
1.4. Objectives of the Study...........................................................................................................4
1.5. Significance of the Study.........................................................................................................4
1.6. Scope of the Study ..................................................................................................................4
1.7. Limitation of the Study...........................................................................................................5
CHAPTER TWO..............................................................................................................................6
2. LITERATURE REVIEW .............................................................................................................6
2.1. Target Promotion...................................................................................................................6
2.2. Advertising.............................................................................................................................6
2.3. Sales Promotions ..................................................................................................................10
2.4. Publicity and Public Relation ...............................................................................................12
2.5. Personal Selling ....................................................................................................................12
2.6. Sponsorship..........................................................................................................................13
2.7. DirectMarketing..................................................................................................................13
2.8. Setting Promotional Budget..................................................................................................13
2.9. Promotion of Service ............................................................................................................14
2.10. The Role ofPromotion on Customer awareness, Changing attitudes,Perception and beliefs
and Reinforcing and attitudes .....................................................................................................15
2.11. Communication Process in Promotion (With Dimensions)..................................................16

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1. Non-Verbal Communication:..................................................................................................16
2. Verbal Communication:..........................................................................................................16
2.12. Developing Effective Communication.................................................................................17
2.13. Factors Affecting Effectiveness of Promotional Mix ...........................................................17
2.14. The problems of Promotion on the Society..........................................................................19
2.15. Importance and Limitations of Promotional Activity..........................................................19
CHAPTER THREEE.....................................................................................................................23
3. RESEARCH METHODOLOGY ................................................................................................23
3.1. Research Type ......................................................................................................................23
3.2. Sampling...............................................................................................................................23
3.3. Data Sources.........................................................................................................................24
3.4. Data Collection Method........................................................................................................24
3.5. Methods of Data Analysis .....................................................................................................24
3.6. Data Quality Assurance........................................................................................................24
3.7. Ethical Considerations..........................................................................................................24
CHAPTER FOUR ..........................................................................................................................26
4. RESULTS AND DISCUSSION...................................................................................................26
4.1. Background of the Respondents ...........................................................................................27
4.2. Analysis Result of Employees of Commercial Bank of Ethiopia............................................34
4.3. Analysis ofManager Interview.............................................................................................42
CHAPTER FIVE............................................................................................................................43
5. SUMMARY, CONCLUSION AND RECOMMENDATION.......................................................43
5.1. Summary of the Major Findings...........................................................................................43
5.2. Conclusion............................................................................................................................44
5.3. Recommendation..................................................................................................................45
APPENDIX A................................................................................................................................... i
APPENDIXB ...................................................................................................................................v
APPENDIX C..................................................................................................................................ix
REFERENCE...................................................................................................................................x

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ACRONYMS
CBE-(Commercial bank of Ethiopia)
IMC-(Integrated marketing communication)
IT- (Information Technology)

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LIST OF FIGURE
Figure 1: Flow sheet of promotional Activity of CBE (in case of Assela Branch)……..………25
LIST OF TABLE
Table 1. Major Media Types……………………………………………………………………....8
Table2: General characteristics of respondents (Customers)…………………………………….27
Table3: The relationship of customers and their understanding from the message ………….….28
Table4: Customer’s attitude towards the advertised message of CBE…………………………..29
Table5: Degree of satisfaction related to promotional campaign, and degree of appropriateness of
communication channel of CBE…………………………………………………………………29
Table6: Timing and continuity of promotional activity………………………………………….30
Table7: Vagueness of the CBES promotion………………………………………………..……31
Table8: Attractiveness of promotional mix for customers……………………………………....31
Table9: Consideration of audience’s interest in carrying promotion……………………….…...32
Table10: The customer’s attitude towards CBE’s brand………………………………………...33
Table 11: Intention of customers to purchase the bank service……………………………….....33
Table 12: Personal profiles of respondents………………………………………………….…...34
Table 13: Objectives of advertising ……………………………………………………………..35
Table 14: Type of informational media used……………………………………………………36
Table 15: Adequacy of company’s promotion to create awareness……………………………..36
Table 16: Profitability insinuation in promotional………………………………………………37
Table 17: Appropriateness of communication channel………………………………………….37
Table 18: The effort made by the bank to communicate with employees about promotion…….38

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Table 19: About organizations budget allocation for advertising……………………………….38
Table 20: Marketing system of the bank to attract customer’s attention………………………...39
Table 21: Remedies for the problem of promotional practice…………………………………...39
Table 22: Effect of promotional budget………………………………………………………….40
Table 23: Policies and strategies of the bank in formulation of promotional activity……….......40
Table 24: Factors affecting promotional activity of the bank (External factor) ………………...41
Table 25: Factors affecting promotional activity of the bank (Internal factor) …………………41

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ABSTRACT
The study would be conducted on the effectiveness of promotional activity in commercial bank of
Ethiopia Assela branch. The objective of the study was to evaluate the communication efforts of
the company and how large the communication tools it is using is acceptable to the society. The
source of data for the study would be both primary and secondary. The primary source of data
would be collected by questionnaire, interview and secondary data would be collected from
books and documents. The sampling technique that would be used by the researcher was
convenience sampling method that is non-probability sampling method to collect data by taking
judgmental sampling technique. As a result, the researcher able to get full and correct
information from 50 judgmentally selected individual customers and 10 employees of the bank.
Questionnaires were distributed to the respondent to get primary data while secondary data was
obtained from written document and websites. Most of the company employee and customers
were male. The data analysis and interpretation is using descriptive data analyzing method.
Finally based on the major finding of the study logical conclusion will draw along with feasible
recommendations instrumental alleviating problems.

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CHAPTER ONE
1. INTRODUCTION
1.1. Background of Study
Today, most business organizations competing in continuous dynamic environment because
everything is changing fast. They are competing for better quality, marketing, position, and
good-will to get positive customer awareness for their product and service. To win his
competition as well as in business, the business will communicate effectually to its customer.
This can be made through the Company’s communicate affectively its goods and services by
using the right media and spokesperson in order to influence the attitude and behavior of the
target audience. Promotion plays a vital role in communicating of between seller and potential
buyer in the channel to influence the attitude and behavior in order to active marketing objective.
The term 'Promotion ' is originated from the Latin word 'promovere' which means to move
forward. Marketers use the word 'promotion' as a communicative activity, the purpose of which
is to move forward a product, service or idea in a channel of distribution. Promotion is concerned
with effectively communicating the results of the marketing strategy to target audiences.
Promotion is an active explicit form of marketing communication.
Promotion highlights the marketing elements in order to increase the odds that consumers will
buy and become committed to a product. Thus promotion can be defined as the marketing
function concerned with persuasively communicating to target audiences the components of the
marketing program in order to facilitate exchange between the marketer and the consumer and to
help satisfy the objectives of both. The basic purpose of promotion is to facilitate the movement
of products and product-related information through the marketing network [1].
Promotion is the communication of information between sellers and potential buyers or other
channels of influence attitudes and behaviors. The marketing manager’s main promotion jobs to
tell the target customer that the right product is available at the right place, at the right price [2].
The promotional function of any service giving for the company involves the transmission of
message to the customers. If the product is new, the promotion effort will probably rely heavily

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on advertising, sale promotion, personal selling and public relation, in order to; make potential
buyers aware of the product; information of these buyers about the benefit associated with the
product; buyers to purchase the product is the product is more established, but the objective is
stabilize sales during a weak season, the promotion activities will most likely contain short term
incentive for people to buy the product immediately. If the product is the high technical and
needs a lot explanation, the promotional activities will probably contain more personal selling, so
that potential buyers can ask questions of a sales person [3].
Promotional activities include those activities which are aimed for creating the coordination or
stimulating demand. It has been defined as “creating the coordination of all sells initiated effort
to set up channels of information persuasion to facilitate a sale of goods or services” The
promotion objectives are to informing, persuading and reminding customer about company
product or services Promotion is also asset of channel information and persuasion to sell goods
and services or promote idea assessing the effectiveness of advertising and promotion dollars is
an important understanding for the producer groups that find such programs [4].
Commercial Bank of Ethiopia, also attempt to create awareness and position itself in the minds
of its target customer through using various promotional practices and the bank using
promotional activities which inform about its services and performances. The study will try to
assess the promotional activities that the Bank currently uses. Promotional tools or elements the
bank uses to increase its recognition of service provide. Promotional activities will help the bank
by attracting customers to its service and create strong relationship, as well as it will create good
brand image.
1.2. Statement of the problem
Developing controlled and integrated programs of effective marketing communication involves
the process of coordinating the promotional mix elements-advertising, personal selling, public
relation, sales promotion, sponsorship, direct marketing and interactive marketing. However,
determining the most effective promotion mix element is difficult knowing the exact effect of
advertising, personal selling or any other promotional tools on sales volume and profit will help
marketer to achieve the overall goals of the marketing program. But without knowing or
measuring the effect or outcome of any marketing mix elements employed fact that sustaining
market would be difficult. This study therefore was focused on examining the current practice,

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problems current promotional mix and factors that affect the effectiveness of promotion and
effectiveness of current promotion mix elements. Nowadays, competition is increasing in a
higher rate in the business world. To win this competition as well as to stay in a business, the
businesses was communicate effectively to its customers. This can be made through the
company’s communicating effectively its goods and services by using the right media and
spokesperson in order to influence the attitude and behavior of the target audiences. Promotion
plays a vital role in communicating of between seller and potential buyer or other in the channel
to influence the attitude and behavior in order to achieve marketing objective. To produce a
unified customer focused promotional message, successful marketer use the marketing concept
and the relationship marketing to develop customer oriented program. Now, the researcher has
assessed whether the commercial bank of Ethiopia is communicating to its customer effectively
or not; whether the promotional mix of the company using currently is compatible with its
mission and objectives and which promotional mix will be more useful to achieve their
objectives and long term relationship with customers, factors that affect the effectiveness of
promotional activity was discovered in this study.
1.3. Research Questions
1. Which type of promotional strategy is used by the bank?
2. What are the factors that affect the bank promotional activities?
3. Which kind of media is used by the bank?
4. What are all the promotional activities that company can use with minimum cost to create
good image in their customers’ mind?

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1.4. Objectives of the Study
1.4.1. General Objectives Study
The general objective of the study was to assess the effectiveness of promotional activities
(practices) of commercial bank of Ethiopia (Assela branch).
1.4.2. Specific Objectives
 To assess kind of promotional activities of commercial bank currently use.
 To assess whether the organization is communicating to its customers effectively.
 To discover the problems that the organization face with current promotional method.
 To evaluate the factors affecting effectiveness of promotion.
1.5. Significance of the Study
This study is aimed to assess the promotional activities of commercial bank of Ethiopia (Assela
branch). This is to help the company get high acceptance by customers by communicating
effectively.
 To inform the organization good communication system to its customers.
 To let the organization know which promotion mix is effective.
1.6. Scope of the Study
Even though the commercial bank of Ethiopia operates all over Ethiopia, this study was limited
its scope only on the Assela town (Assela branch).Whereas other branches wouldn’t be included
because of time and financial limitation.

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1.7. Limitationof the Study
The researcher while conducting this research was limited by some factors like
lack of experiences
the unwillingness of the organization’s to accept the researcher
un willingness of customers to fill the questionnaires
un willingness of employees to fill questionnaires
geographic limitation of research

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CHAPTER TWO
2. LITERATURE REVIEW
Promotion is defined as the coordination of all sell initiated effort to set up channel information
and persuasion to sell goods and services or promote an idea while implicit communication
occurs through the various mix of marketing. Most of an organization communications with the
market place as part of carefully planned and controlled promotional program. The basic tools
used to accomplish an organization communications are often referred as the promotional mix.
Promotion is the marketing function concerned with persuasively communicating the target
audience [4]. The components of marketing
2.1. Target Promotion
Sales promotion activities are directly towards four different target groups. These are final
consumers, retailers, whole sellers and industrial customers. The size of each group and their
respective need condition type of promotion blend to be used by the marketer for mass selling
and personal communication is the only way to consumer the information they required is
compared with the final consumers. The numbers of retailers are less and the whole numbers are
also less than retailers. The promotions to retailers are considered as the idea of the extra service
such as promotional and advertising allowance.
2.2. Advertising
Advertising is a non-personal sales presentation communicated through media or non-media
forms to influence a large number of consumers. Advertising is one of the promotional mixes
which are considered prominently in the overall marketing mix. This attribute a result its
visibility and pervasiveness in all other marketing communication element. Advertising as social
event results in key changes in value, belief, behavior and buying pattern of a person is economic
transformation and certain marketing opportunity. Advertising involves making decisions on the
five M’S; mission, message, media, money and measurement. An advertising program can be
measured in terms of both communication and sales effect. Measuring communication effect can
be done before or after advertising is printed or broadcast. Measuring advertising after broad cast
evaluate how it affected consumer and product awareness, knowledge, preference. In the same
manner, sales persons’ performance can also can be measured by gathering information from

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different sources. This sources includes sales reports, personal observation, customer services
and talk with other sales person services found that the importance of advertising is an
information provider leads to greater marketing share and positive image in market as it is better
able to much consumer needs and wants against the product offering.
2.2.1. Advertising Objectives
Advertising objectives can be classified as according to weather to inform, persuade and remind.
Informative advertising:-communicating customer dealing the market about new product
explaining how to the product works suggesting new using for the product. It informs the
marketing of price change, describing available services.
Reminder advertising:-maintain customer relationship through reminding product may be
needed into near future. It reminding customer to buy the product, keeping brand in customers
mind during offseason.
Persuasive advertising:-Building brand preference, encouraging, switching to your brand.
Changing customer’s perception of product attributes. It persuades customer through telling
about the brand.
2.2.2. Developing Advertising Strategy
Advertising strategy consists of two major elements: creating advertising messages and selecting
advertising media. Good advertising messages are important into day’s costly advertising
message and cultured advertising environment. Advertising strategy is what the advertiser says
about the brand being advertised. To develop a message strategy, advertisers go through three
steeps:
 Message generation and evaluation
 Creative development and execution
 Social responsibility review.

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2.2.3. Selecting Advertising Media
The steps in media selection are:
 Deciding on reach, frequency and impact
 Choosing among major media types
 Selecting specific media vehicle
 Deciding media timing
When selecting advertising media, the marketing management needs to be media planning.
Media planning is a serious of decisions involved in delivering the promotional message to the
prospective purchaser and users of the product or brand. It is a process, which means a number
of decision are made, each of which may be already or abundant or specific media objectives and
media strategies designed to attain these objectives. There are problem in media planning
insufficient information, consistent terminologies, time pressure and difficulty to measure
effectiveness.
Table 1. Major Media Types
Media Advantages Disadvantages
News papers Flexibility, Timelines, Good local market
coverage, brand acceptability, high and
believability
Short life, poor reproduction
quality, small pass along
audience.
Television Good mass market coverage, low cost per
exposure combines site, sound and motion,
appealing to the senses.
High absolute cost, high
clutter, fleeting exposure cell
audience selectivity.
Direct mail High audience selectivity flexibility, no
competition with same medium, allows
personalization.
Relatively high cost per
exposure “junk mail”
message.
Radio Good local acceptance, high geographic and
demographic selectivity, low cost.
Audio only, fleeting exposure,
low attention fragmented
audience.

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Magazines High geographic and demographic
selectivity, credibility and prestige, high
quality reproduction, long life and good
pass along readership.
Long as purchase lead time,
high cost, no guarantee of
position.
Outdoor Flexibility, high repeat exposure, low cost,
low message, competition good positional
selectivity.
Little audience selectivity,
creative limitations.
Internet High selectivity, low cost, immediately
interactive capabilities.
Small demographically
skewed audience, relativity
low impact, and audience
controls exposure
[3][7].
2.2.4. Advertising on the Internet
Banners: The most familiar form of advertising on web is banner ads. Banner ads generally used
for creating awareness, entering viewers into contests and sweepstakes.
Sponsorships: Sponsorship are divided in regular sponsorships where a company pays to
sponsor a section of a site and another is the content sponsorship, in which sponsor not only
provides money in return for name association but participates in providing the content itself.
Pop-Ups/Pop-Under: This ad is almost similar to banner ads but here user will see some ads
when he/she access some sites. Pop-Under are ads appear underneath the web page and visible
when user leaves the sites.
Interstitials: Interstitials are ads that appear on screen while user waiting for site´s content to
download.
Push Technologies: Marketers use web casting or push technologies for dispatch web pages
and news updates and video geared to specific audiences or individuals.
Links: Links appears when users search specific links then automatically provide users
additional links or related topics.

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Paid Search: Marketers paid for each consumer’s clicks on their ads or links from a search
engine page.
Behavioral Targeting: Marketers use behavioral targeting advertising for target consumers
through their web site surfing behaviors.
Contextual Ads: Advertisers who target their ads based on the content of the web page are
using.
Rich Media: A broad range of interactive digital that exhibit dynamic motion, taking advantage
of enhanced sensory features such as video, audio and animation. Online commercials, video on
demand and episodes are the main types of rich media. The increased penetration of broadband
into households has increased the attention given to streaming video [4].
2.3. Sales Promotions
Sales promotion is the set of activities that is intended to influence consumers. It can be an
effective means of encouraging consumers to purchase a specific product.
Sales promotions are short term incentives to encourage purchase or sale of products. It is any
activities intended to generate a temporary boost in sales. Includes, communicational activities
persuade in attempts providing added value or incentives to customers, whole sellers, retailers,
and other organizational customers to stimulate immediate sales. Such efforts are usually geared
towards stimulating product interest, trials or purchases. It is specifically designed to boost quick
sales and ultimately create loyalty.
2.3.1. Sales Promotion Objectives
Sales promotion objectives vary widely. Sellers may use consumers’ promotions to increase
short term sales or to help building long market share. Objectives for trade promotional include
getting retailers to carry new items and more inventories getting them to advertising, the product
and give it more shelf space, and getting them buy’s a head. For the sale force, objectives include
getting more sales force support for current or new product or getting sales people to sign up new
accounts. Sales promotion is usually used together with advertising, personal selling, or other
mix elements. Consumer promotion must usually be advertised and can excitement and pooling
power to advertising trade and sales force promotions support the firm’s personal selling process.

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Also there different objectives such as, Product Differentiation, Attract Customers and Push up
Sales, New Product Introduction, Phasing Out a Product, Increase Off-Season Sales etc.
2.3.2. Sales promotion Tools
Sales may be consumers’ sales promotion tools or trade sales promotion tools. Consumers sales
promotion is targeted to the ultimate user of the product or service and including company
sampling, coupon, premiums, contests, sweepstakes, cash returned offer(rebate), price pack(cent
of ideal), advertising specialty, patronage reward, point of purchase(pop) promotion contests,
sweepstakes, games and other materials. Thus promotional tools encourage consumers to make
an immediate purchase and these can stimulate short term sales, trade sales promotion tools are
targeted towards markets intermediaries such as: wholesalers, retailers and distributors. Trade
sales promotion tools include promotional and merchandise allowance, price deals, and sales
contest and trade shows of the promotional tools used to encourage the trade to stock and
promote a company’s product. Companies can use sales promotion in conjunction with other
promotional mix elements to overcome the competitors’ promotional activity.
It can advertise its incentive types by using radio, television, newspaper and other media types
to the customers. Companies use sales promotion rapidly. There are several factors contributing
to the rapid growth of sales promotion particularly in the consumer market. Inside the company
product manager face greater pressure to increase their current sales and sales promotion is
viewed as an effective short run sales tool. Extremely the company faces more competition and
competing brands are less differentiate consumers has become more deal oriented and ever larger
retailer are demanding more deal from manufacturers.
Sales promotion profitability is depending on consumer deal responsiveness within particular
product category. It is used to create consumer loyalty. Loyalists are consumers who are
purchase patterns reflect that they buy the same brand over and over when no brands are on deal.
Satisfaction is the base to keep and create loyal customers. These satisfactions made by the
company by giving incentives and serve the customer what they want [5].

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2.4. Publicityand Public Relation
The term public relations refers to actions taken with the goal of creating or maintaining a
favorable public image. Publicity is the dissemination of information by personal means which is
not directly paid by the organization, nor is the organization the source. Unlike advertising that
relays on purchasing power to get message across, publicity relay solely on the quality of
contents to persuade others to get the message out. Public relations can be used to enhance the
image of a product or of the firm itself. There are three major roles first public relation play with
in the communications program of an organization and its various key stock holders. Second is to
support the marketing of the organizations product and its task is to integrate with the other
elements of promotional mixes. Third is to provide the means by which relationships can be
developed. However, the objectives of public relation tend to be broader than those of the other
components of promotional strategy. It is concerned with the prestige and image of organization
as whole among groups whose attitude and behavior impact up on the performance of the
organization [7].
2.5. Personal Selling
Personal selling is a personal sales presentation used to influence one or more consumers. It
requires a personal effort to influence a consumer’s demand for a product. This can be described
as an interpersonal influence process involving business promotional presentation conducted on
a person basis with prospective buyer. Personal selling as face to face interaction with one or
more prospective purchaser for the purpose of presentations, answering question and procuring
orders [3]. Also personal selling as marketing task that involves face to face contact with
customer. Unlike the others tools with in the communication mix, Personal selling permitted a
direct interaction between buyers and sellers. Thus communicating and convincing customers to
buy service or product is by far more challenging than selling in turn, has the potential and
opportunity to persuade those who can come to the companies office with the back ground
information about the service from the company advertisement by responding to the customers
questions and doubts about the services. The interaction nature of personal selling also make it
the most successful promotional method for building relationship with the customers, personal
selling is the most communications tools at certain stage of buying process, particularly in
building buyers first choices, certainty and proceedings [10].

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2.6. Sponsorship
Sponsorship is a cash or any kind of fee pay to a property (which may be sport, entertainment, or
nonprofit evens of the organization) in turn for access to the exploitable commercial potential
associated with the property. It is getting involved in events in order that an organization can be
achieve objective such as increased awareness levels, enhanced reputation and thus build
company’s brand image [11].
2.7. Direct Marketing
Direct marketing has defined as interaction system of marketing that uses on more advertising
media in acquiring measurable response and transaction at any location. Similarly, direct
marketing is described as the use of mail, fax, e-mail to communicate directly with or solicit
response from specific customer and prospects. It is aimed at creating and exploiting direct
relationship between producers or sellers as well as buyers. Direct is much more than direct mail,
internet and order catalogue. It involves variety of activity including: data base management,
direct selling, telemarketing and direct response advertising, through direct mail, internet, and
various broadcast and print media. So direct marketing one of the promotional mix elements
which organizations communicate directly with target customers to generate a response [7].
2.8. Setting Promotional Budget
A promotional budget is a specified amount of money set aside to promote the products or
beliefs of a business or organization. One of the hardest marketing decisions taking accompany
is how much to spend on promotion. It is not surprising that industries and companies vary
widely in how much they spend on promotion. How does accompany decide on its promotion
budget? There are four common method used to set budget for advertising. These are:
i. Affordable method: In this method the company set promotion budget as the level they think
the company can afford. Because of that, the company cannot spend on advertising, small
business are used. This method helps to achieve marketing objectives.
ii. Percentage of sales method: setting promotional budge as the level at certain percentage of
units of sales price. This approach is based on fixed percentage of previous year of an anticipated
year. One advantages of this method is that expenditure are directly related to fund available the
more the company sold last year, the presumably has available for promotion this year.

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iii. Competitive party method: This technique has the advantage in recognizing the importance
of competition in the promotion and helps to minimize market welfare. It is also simple to use
since the only information required the dollar amount expanded by the competitor.
iv. Objective and task method: it is a method for budgeting accompany based on what it want
to accomplish with promotion. This budgeting method defining specific promotion objective
determining the task needed to achieve that objective and estimate the cost performing the task.
The sum of this cost is the proposed promotion budget [8] [12].
2.9. Promotionof Service
Promotion of service is different from product advertising. Intangibility makes services
advertising difficult for marketers. In service promotion it may be hard to represent courtesy,
hard work, and customer care in and advertising. For service, advertising can be applied to
communicate and strengthen the image of a service. Some specific effective media can be used
to promote services like; personal selling, word of mouth and viral communications. Personal
selling can be effective more in service marketing. Promotion must acknowledge the dominant
role of personal in the choice process and stimulate word of mouth communication. There are
four approaches can be applied in word of mouth communication, as follows;
1. Persuading satisfied customers to inform others of theirs of their satisfaction.
2. Developing materials that customers can pass on to others.
3. Targeting opinion leaders in advertising campaigns and
4. Encouraging potential customers to talk to current customers.
Viral communications- It also called electronic word of mouth and being used to promote
services. Through this electronic word of mouth may take the form of an e-mail sent to a target
audience and potential customers, who are encouraged to spread the word among their friends by
passing the message on electronically [14][15].

15
2.10. The Role of Promotionon Customer awareness, Changing attitudes,
Perceptionand beliefs and Reinforcing and attitudes
At various times in the life of brand, it is important to raise the level of awareness among target
customers, in inevitability; this is most often associated with the introduction of new product.
However, either because of competitive or other pressures (perhaps the reduction in the level of
advertising support), the level of awareness of a particular brand may fall and advertising will
seek to improve the levels. In some instances, although the consumer aware of the products it
self, he or she will need information as to where to purchase it (particularly if it is in limited
distribution). Advertising will seek to identify stockiest or the product. Advertising affects
consumer’s daily lives informing them about the products and services, and influencing their
attitudes, belief and ultimately their purchase while advertising cannot change consumers deeply
rooted value and attitude, advertising may succeed in transforming person’s negative attitude
toward a product in to a positive one. For instance, serious or dramatic advertisements are more
effective at shaping attitude when consumers already have a positive image of the advertised
brand. For this reason beer markets uses humorous advertising to communicate with their core
market.
Advertising also reinforce the positive attitudes toward brand. When consumers have a neutral or
favorable form of reference toward a product or brand advertising often positively influences
them when consumers are already highly loyal to a brand. Advertising also reinforce positive
attitude towards a brand. When customers have a neutral or favorable form of reinforce toward
products of brand advertising often positively influences them. These are why leaders spend
billions of dollars annually to reinforce and remind their loyal customer about the benefits of
their company products. Furthermore, advertising can affect the way consumers rank a brand
attribute, such as color, test, smell and texture. Business advertising often creates awareness of
the supplier and the supplies of product. From a communication stand point, the buying process
can be viewed as taking potential buyers sequentially from awareness of product or supplier
awareness, to brand preference, to conviction that a particular purchase will fulfill the
requirement and ultimately to the actual purchaser of business advertising and make some
contribution to create preference for the product of that cost effective. In addition advertising can

16
create a corporate identity or image. Sell promotion is usually work best in affecting behavior
rather than attitude [13] [14].
2.11. Communication Process inPromotion(With Dimensions)
The word communication has been derived from Latin word communicare, which means “to
share”.
1. Non-Verbal Communication:
Non-verbal communication describes the process of conveying meaning in the form of non-
word messages. Examples of nonverbal communication gestures, body language, facial
expression, eye contact, and how one dresses.
2. Verbal Communication:
Effective verbal or spoken communication is dependent on a number of factors such as words
and, listening skills and clarification. Communication plays a very significant role in promotion
of a product. It is a fact that nothing can succeed without communication. Particularly, in case of
promotion, it is a message which must reach the masses for creating awareness; therefore,
communication has to be very effective.
Communication in promotion has five dimensions:
i. Message – success of promotion is dependent on the appropriateness of the message, Chosen
for this purpose.
ii. Channels – which is selected for the purpose of promotion. Channel are innumerable such as
Voice, Print, Busses, Mail, post, SMS, what’s app etc.
iii. Level of Recipient – it is very important to carry out a research on the type of target audience
the company is aiming to reach. Therefore, the customer’s interests, educational background, IQ,
level of knowledge & Capability must be kept in mind before deciding on a promotion strategy
iv. Objective – it is equally important to keep the main objective in mind while promoting the
product. It is necessary that the objective and the actual promotion must be in sync for best
results
v. Measure – measure as a dimension relates to the Feedback obtained from the customers after
the promotion and then evaluating the Results with the targeted result [17].

17
2.12. Developing Effective Communication
Now days, for many business organizations play a very important role for the means of
facilitating their all over activities and to attract many customers, because of effectiveness the
companies of promotion, it is the return on investment also increase a short period of time with
In high market share of the company resulting from creating good relation with respect
customers. There are eight steps in developing effective total communication and promotion
program.
1. Identify the target audience.
2. Determining communication objectives.
3. Designing the message.
4. Selecting communication channel.
5. Establishing total promotional budget.
6. Deciding on promotional mix.
7. Measuring the promotional results.
8. Managing and coordinating integrated marketing communication [9].
2.13. Factors Affecting Effectiveness of Promotional Mix
i. Availability of funds: - The funds available for promotion are the basic determinant of the
promotional mix. In the absence of adequate finance, company cannot afford a costly
promotional strategy even if it effective one. It has to rely most on personal selling, dealer
displays and cooperative advertising. Thus, lack of adequate funds disturbs the efficiency of
promotional program of an organization.
ii. Nature of the market:-Nature of the market is directly associated with the promotional
decisions. It can influence the decision process in number of ways. Under this situation a
company has no alternative except to rely on personal selling. The particular area or group can
be served effectively by employing the services of official sales men.

18
iii. Company policies:-Sometimes marketing executives have to strictly follow the company
policies while designing the promotional mix of the company. As such sometimes they show
inability to formulate an appropriate promotional strategy if it goes against company’s traditional
policies built over the years. Thus, some firms take pride in advertising their products through
some particular media, even though advertising results of such media are pool as compared to
others.
iv. Stages in product life cycle:-Each stage of product life cycle requires a different promotional
strategy to suit the respective features (condition) of each stage. In the introduction target,
promotion aims to create awareness of the product among the customers which can be
sufficiently done through advertising. In the last stage when sales are declining, the promotional
activities may become less effective and as such should be slowed.
v. Push and pull strategy:-
Push strategy: it describes the work of a manufacturer of a product needs to perform to get the
product to the customer.
Pull strategy: it refers to the customer actively seeking out you product and retailers placing
orders for stock due to direct consumer demand.
vi. Corporate Objectives: - A firm may have different objectives in different foreign markets or
different firms may have different strategy in the same market.
vii. Nature of the Product or Services Offered: - The nature of the product or the services
offered by the firm is another factor that will determine the promotion strategy of a firm. Certain
products are standardized and their promotional themes are also standardized.
viii. Environmental Constraints: - The firm should evaluate the environmental factors like the
level of economic development of a country, the disposable income of the people, consumer’s
preferences and attitudes towards advertising and sales presentation, competitor’s promotion
strategies and the legal requirements in a given foreign market [16][17].

19
2.14. The problems of Promotionon the Society
Promotion is one of the most often criticized areas of marketing and many of the criticisms focus
on whether communications are honest and fair. Markets must sometimes make ethical
judgments in considering these changes and in planning their promotion. Critics raise similar
concerns about the use of celebrates in advertisement, a person who play role of an honest and
trustworthy person on popularly serious may be a person accordable message source in
advertising, but is using such a person means leading to consumers? Some creates believe it is
others argue that consumers recognize advertising when they face it and no the celebration are
paid for their. The most inducement, common criticizes of promotion that relate to promotional
message that makes exaggerated claims for some promotional message due misrepresent the
benefit of the product. However most marketing managers want to develop ongoing relationships
with and repeat purchase form to their customers. Further consumers are becoming more
skeptical about all claims they hear and see. As a result, most marketing managers work to make
promotion claims specific and believable. By law, companies must avoid false or deceptive
advertising must not make false claims, such as thing that a product cures something when it
does not. They must avoid advertising that have the capacity to deceive even though no one
actually may be deceived. Sellers must avoid bait and switch advertising that attract buyers under
false pretenses. Beyond simply avoiding legal pit fails such as deceptive or bait and a switch
advertising. Companies can use advertising to encourage and promote socially responsible
programs and actions. A company sells people must follow their rule of “Fair competition” most
states have enacted deceptive saves act that spell out what is not allowed for example, sells
people may not lie to consumers may led to them about the advantage of buying a product. To
avoid bait and switch practices, sells people statements must match advertising claims [12] [13].
2.15. Importance and Limitations of Promotional Activity
Product promotion is one of the techniques that are used to promote services or goods with the
short term and long term goals of increasing the sales. There are many companies which use
various types of techniques to promote their products and services. The main factor for the
growth of any type of business is product promotions. These days, it is difficult to imagine any
business without promotion.

20
The promotion of the product attracts the customer to avail the benefits of the product as well as
services. Therefore, for a small or big business, product promotion is very important for
achieving success.
Importance of Promotional Activity
a. Sales of the goods in imperfect market: Promotion helps in the sales of the goods in
imperfect market. In the imperfect market conditions, the product cannot be sold easily only on
the basis of price differentiation. It is the promotional activity that provides information about
the differences, characteristics and the multi-use of the products of various competition in the
market. The customer is attracted to purchase the goods on the basis of such information
successfully.
b. Filling the gap between producers and consumers: Promotion helps in filling the gap
between producers and consumers. Due to the tough market condition, mass selling is quite
impossible without promotional activities.
c. Facing intense competition: Promotion helps in facing intense competition in the market.
When a manufacturer increases his promotional spending and adopts an aggressive strategy in
creating a brand image, others are also forced to follow the suit. Without promoting the goods,
the competition is not possible in the market. So, it is necessary to face the competition in the
market with the help of promotional activities.
d. Large scales selling: Promotion helps in the large selling of goods and services. Sales
promotion is the result of large-scale production. Large scale selling is possible with the help of
promotional activity. Due to the large selling of goods, there will be more chance of promotion
of goods. So, it is necessary to sell lot of goods in the market for promotional activities.
e. Higher standard of living: Promotion helps in the rising standard of the people. The
promotional activities increase the standard of living by providing the better goods at a lower
rate due to large scale production and selling. People can raise their standard of living with the
help of promotional activity. As the promotional activities increases, the standard of living of
people also increases. So, the promotional activity has a great role in the increment of a standard
of people so that they can live a good and happy life.
f. More employment: Promotion helps to create more employment opportunities. People can
gain employment opportunity with the help of promotional activities. With the help of
promotional activity, many workers get motivated towards the work. Promotional activity helps

21
to increase more employment opportunities to the people who are unemployed, as the
promotional activities cannot be performed without the help of an effective sales force and the
specialists in various fields.
g. Increased trade pressure: Promotion helps to increase trade pressure in the market. The
growth of large scales retailer, such as supermarkets, chain stores, etc. has brought
greater pressure on manufacturers for support and allowance. Promotional activities help to
decrease the trade pressure. There is need for promotional activities to decrease the
trade pressure.
h. Effective sales support: Promotion helps in the sales support of the product. Sales of
different types of goods in the market are very necessary to increase the market economy.
i. Increased speed of product acceptance: Promotion helps to increase the speed of the
products acceptance. Most of the sales promotion devices such as contests, premium coupons,
etc. can be used faster than other promotion methods such as advertising. As the promotional
activities are done, there will be direct effect in the increment of a speed of the product.
It is helps to increase the customer base as well as increases sales of the products.
Product promotion creates a long-lasting impression on customers mind.
j. It is simple for the Company to promote business through corporate gifts.
k. Free samples can be used as a promotional product. These are greatly helpful in creating
demand for the new product in particular.
l. Promotional products are not only useful for customers but also offer incentives for the
employees and boost their morale.
m. Promotion helps in allowing the organization to penetrate the market.
n. It helps in sustaining the existing market.
o. Promotion keeps the product alive in the memory of the consumer.
p. It also helps in creating and expanding the market.
q. It is Helpful in the wider exposure of new services or products [17] [18] [19].
Limitations of Promotional Activity
i. Temporary nature – The effect of promotion is very temporary. Therefore one has to keep
repeating the promotional activities.

22
ii. Only a supplementary activity – Promotion as a stand-alone activity is not effective.
Therefore it has to be done with other activities.
iii. Highly perishable – The effect of a particular promotional activity is very perishable.
iv. Clutter – Too much of promotional activities result in clutter and cause confusion in the
minds of customers.
V. Expensive – All promotion activities require huge amounts of expenses [17].

23
CHAPTER THREEE
3. RESEARCHMETHODOLOGY
3.1. Research Type
The researcher would use the descriptive research design because it is designed to obtain
information about the current status of phenomena and to draw conclusion from the fact
discoveries.
3.2. Sampling
From the population of 65000, the researcher would use 50 customers through convenience
sampling and 10 employees from 97 randomly.
3.2.1. Population of the study
The commercial bank of Ethiopia (Assela branch) have around 65000 customers who have
account such as current and fixed account. And the bank has also around 97 employees. From
this the researcher would 60 samples from customers and employees from the 597 population
who have only current account. This is because the population is very large to take sample.
3.2.2. Sampling Method
In this research, researcher would use convenience sampling which is non-probability sampling
technique. This is because the probability of selection of each sampling unit is not known and it
is impossible to get all customers at one time. In all forms of research, it would be ideal to test
the entire population, but in most cases, the population is just too large that it is impossible to
include every individual. This is the reason why most researchers rely on sampling techniques
like convenience sampling, the most common of all sampling techniques. Many researchers
prefer this sampling technique because it is fast inexpensive, easy and the subjects are readily
available. It is also useful in documenting that a particular quality of substance or phenomenon
occurs within a given sample.

24
3.3. Data Sources
In the process of collection of relevant data, the researcher would use both primary and
secondary data sources. Primary data source include;-questionnaire, interviews, and observation
would be used. Secondary data source include;-like books, literatures, web pages and different
documents will be used.
3.4. Data CollectionMethod
The major data collection methods that would be used in this research are;-
 Questionnaires to the employees as well as for the customers.
 Interviews to the company’s manager and the observation to assess the service giving
environment.
3.5. Methods of Data Analysis
The collected data would be processed manually and the data would be analyzed by using simple
analytical tools such as;-tabulation and percentage to represent the analyzed data.
3.6. Data Quality Assurance
The researcher was under taken pilot study in some individual in order to check to what extent
the instrument administrated for the main study target population. The researcher was
administrated the instrument to those participates first the researcher was given or intention
about the objective and how to response the question according the instruction given then select
those subject and administered question paper and would collect the question paper.
Finally the researcher was scored the previously administered instrument first check the item that
participant respond and not responded in each part then coding and totaling those item that are
similar.
3.7. Ethical Considerations
The study was done by respecting the respondent’s dignity and maintaining their privacy. It
valued objective and confidentiality personal information. In the meantime the purpose of the
study was explained to the customer and the provision of the questionnaire was taken please after
insuring.

25
Relevant data
From Customers &Employees
Finally
Figure 1: Flow sheet of promotional Activity of CBE (in case of Assela Branch)
Primary
data
Secondary
data
Population
study
Sampling
method
Interviews
Questionnaire
Samples
Data
resource
Descriptive
research
Data
collection
Data analysis
Tabulation Percentage
50 Customers
and 10
Employees
50(100%) respondent heard promotional
message of CBE

26
CHAPTER FOUR
4. RESULTS AND DISCUSSION
In the previous section the theoretical part of the communication process has been discussed. It
was underlined that success in marketing could occur through properly operating communication
activity. Analysis of communication mix element effort enable a company to do fine and support
the competitive position is, seeks to occupy, in the get marked. The analysis also helps the
organization to assess the strength and weakness of its communication activities. This chapter is
concentrated more an assessment and analysis of primetime efforts of commercial bank of
Ethiopia. In order to conduct this research the researcher prepared and distributed 60
questionnaires for the customers and for the employees and all questionnaires distributed to the
employees and the customers are analyzed by using table and percentages. Also interview was
conducted from the manager of the bank.
Though the data analysis is done on data collected through questionnaires and interview to get a
preliminary outlook for communication mix element and sales activities, questionnaires were
provided and interviews were conducted and the outcome of the whole data are analyzed in the
following manner.

27
Analysis for customers
4.1. Background of the Respondents
Table 2. General characteristics of respondents (Customers)
Sex Items Number of respondents Percentage %
Male 40 80%
Female 10 20%
Total 50 100%
Age 18-30 16 32%
31-40 25 50%
41-50 9 18%
Above 50 - -
Total 50 100%
Educational
level
Elementary 5 10%
High school 15 30%
Diploma 19 38%
1st degree 11 22%
Above - -
Total 50 100%
Source: Own survey (2022) or primary data
According to Table 2, 40(80%) of respondents are male and the remaining 10(20%) of them are
female. From this finding, it is possible to conclude that the number of male employees’ those

28
are aware about the promotion are greater than that of females. As the data shows that most
respondents are male with regard to the age 16(32%) of the respondents found in the age
between 18-30 and 25(50%) of respondents are found in the age between 31-40 and 9(18%) are
between 41-50 age and no respondents are above 50 years. The data shows that most of
respondents are young age with regard to educational background 5(10%) of the respondents are
elementary level, 15(30%) of them are high school level, 19(38%) of them are diploma and
11(22%) of them are 1st degree and more respondents are above 1st degree. the data shows that
most of respondents have college diploma. The result is well agreement with (Journal CBE
2021) by 60% and depend on this I conclude most of percent customers are male and young.
Table 3. The relationship of customers and their understanding from the message
Item Number of respondents Percentage (%)
Yes 50 100%
No 0 0
Total 50 100%
Awareness about the
bank service.
39 78%
Kind of service to be
provided.
8 16%
Its good location. 1 2%
Its convenience to you 2 4%
Total 50 100%
Source: Own survey (2022)
According to the Table 3, with regard to the customers relationship all of or 50(100%) of
respondents are customers of Assela, with regard to customers understanding from advertised
message, 39(78%) of the respondents said that they get awareness about the bank service from
the advertised message 8(16%) of the respondents said that they are aware about kind of service
the bank is going to provide, 1(2%) of them. (Journal Nazereth branch 2014) stated it is the
awareness of the bank and the location of the bank is side effect on customers so I disagree on
this. Because the awareness of rural and urban area different by 22% unawareness.

29
Table 4. Customer’s attitude towards the advertised message of CBE
How do you feel about
the advertised, message
of CBE?
Items Number of respondents percentage%
Good 8 16%
Bad 0 -
Like 42 84%
Dislike 0 -
Total 50 100%
As shown in the Table 4, 8(16%) of respondents said that they have good attitude towards the
advertised message, no respondents has bad attitude towards the advertised message, 42(84%) of
respondents said that they like an advertised message and no respondents dislike the message this
implies that the promotional effort of the organization has made an interest of the service
provision in the minds of customers and the message created interest to purchase the service.
Therefore, I could conclude that as the majority of the respondents give answer they have good
feeling as well as they like the advertising of CBE. (Journal CBE 2022) and more related with
this journal.
Table 5. Degree of satisfaction related to promotional campaign, and degree of
appropriateness of communication channel of CBE
What is your degree of
satisfaction related to
promotional campaign
that is taken by the
organization?
Items Number of respondents Percentage%
Very high 5 10%
High 8 16%
Medium 22 22%
Low 9 18%
Very low 6 12%
Total 50 100%
Degree of
appropriateness of
communication channel
Very high 4 8%
High 6 12%
Medium 33 66%
Low 5 10%
Very low 2 4%
Total 50 100%

30
According to Table 5, with regard to the degree of satisfaction, indicates that, 5(10%) of the
respondents are said their degree of satisfaction related to promotional campaign is very high,
8(16%) of them stated high, majority or 22(44%) of them said medium, 9(18%) stated low, and
remaining 6(12%) are said very low. This implies that most of appreciate the communication
channel as medium with regard of the degree of appropriateness of the communication channel,
4(8%) of respondents said that the appropriateness the communication channel is very high,
6(12%) of respondents said high, the majority or 33(66%) respondents said that medium, 5(10%)
of them said that said low and the remaining 2(4%) said very low. From this one can observe that
almost the appropriateness of the communication channel is medium. (Journal Nazereth
branch 2014) stated degree of satisfaction and appropriateness of communication channel was
medium above 50% good but the degree of satisfaction of customers in Nazereth branch know
greater than Assela I disagree on the satisfaction of the customer on it.
Table 6. Timing and continuity of promotional activity
Does the organization release
its promotional message in
media in appropriate time?
Item No respondents Percent (%)
Yes 30 60
No 20 40
Total 50 100
Does promotional activities
carried continuously and reach
to you?
Yes 36 72
No 14 28
Total 50 100
Source: own survey (2022)
According to Table 6, with regard to timing and promotional activity, 30(60%) of the
respondents or the majority of the respondents said that the bank release its p [promotional
message in appropriate time and the remaining 20(40%) of respondents said that the bank does
not release its message in appropriate time.
With regard to the continuity of the promotional activity, 36(72%), of respondents said that the
organization carries its promotional message continuously and that promotional message is heard
by them and the remaining 14(28%) of them opposed the idea. This implies that the majority of
the customers of CBE have an access of information continuously as well as the bank is carrying

31
its promotion continuously. (www.http//cbe.Portal new) the release of promotional activity on
time. I gained the result from respondent and the result on portal of the bank was much related
above 85%.
Table 7. Vagueness of the CBES promotion
Have you encountered any
confusion as a result of the
firm’s promotional message?
Items No of respondents Percentage %
Yes 7 14%
No 43 86%
Total 50 100%
As it is known that promotional message should be clear, understandable, reliable and free from
confusions and consider the level of customers understand easily. The Table 7, shows that 43
(86%) of respondents are not confused as a result of the firms promotional message. The
remaining 7(14%) of respondents said they are confused or there aren’t understand what the
message transfers. This implies that the advertised message is almost clear and understandable.
(Journal, Zelalem 2005 on CBE) I didn’t agree to him because this time some customers
clearly understand promotional message without vaguest feeling just he said.
Table 8. Attractiveness of promotional mix for customers
Which promotional
mix is more used full
and attractive to you?
Items Number of respondents Percentage %
Sales promotion 32 64%
Personal selling 2 4%
Public relation 4 8%
Advertising 10 20%
Publicity 2 4%
Total 50 100%

32
According to the Table 8, majority of respondents which is 32/64% respondents respond that
sales promotion is the most or the best attractive for customers of CBE and because of this
reason customers select sales promotions very necessary promotional mix element that provide
additional value or incentive to the sales force, and 2/4% of the respondents said that personal
selling is attractive, 4/8% of them said that public relation is attractive to them, 10/20%/ of the
respondents said advertising is attractive and the remaining 2/4% said publicity is attractive.
(www.http//cbe.Portal new) know this time the bank strategy focused on sales promotion I get
result matched to the portal of CBE.
Table 9. Consideration of audience’s interest in carrying promotion
Promotional campaign
are Carried in the
interest of audiences?
Strong agree 4 8%
Agree 6 12%
Partially
agree
6 12%
Disagree 34 68%
Total 50 100%
According to the Table 9, 4/8% of the respondents are strongly agreed, 6/12% of the respondents
are agreed, 6/12% of they are partially agreed and the remaining 34/68% or the majority of the
respondents are disagree. This implies that the organization’s promotions campaign have faced
the problem in considering and carrying promotional activity in the interest of audiences. (Kawo
Research promotional practice on CBE 2014) stated Promotional campaign was dislike by
audience. This one is decreased the attractive of new comer CBE customers and I Agreed to him
depend on I gained know result and until this not changed.

33
Table 10. The customer’s attitude towards CBE’s brand
What is your attitude
towards this brand?
Positive 28 56%
Negative 22 44%
Total 50 100%
According to the Table 10, the majority of or 28/56% of the respondents said that they have
positive attitude towards commercial bank of Ethiopia and the remaining 22/44% of them said
that they have negative attitude towards the commercial bank of Ethiopia. (www.http//cbe.Portal
new) customers have positive attitude by brand products introduce to the customer I conclude the
brand is a good tool for attitudes of customers.
Table 11. Intention of customers to purchase the bank service
What is your intention towards
the purchase of bank service?
Likely 41 82%
Unlikely 9 18%
Total 50 100%
According to the Table 11, 41/82% of respondents clams that there are likely to purchase bank
service and the remaining 9/18% of the respondents said they are unlikely to purchase the bank
service. This implies that most of the customer are interested or liked the bank service and eager
to purchase (Important link CBE).My result gained and the result of on this link purchase of
the bank service more related.

34
4.2. Analysis Result of Employees of Commercial Bank of Ethiopia
General characteristics of respondents
Table 12.Personal profiles of respondents
Sex
Male 7 70%
Female 3 30%
Total 10 100%
Age 18-30 6 60%
31-40 3 30%
41-50 1 10%
Total 10 100%
Educational
background
Diploma 0 -
1st
degree 7 70%
2nd
degree 3 30%
Above 0 -
Total 10 100%
Job service year 0-5 5 50%
5-10 4 40%
10 above 1 10%
Total 10 100%

35
According to the Table 12, 7/70% of respondents are males and the remaining 3/30% of them are
females. The data shows that most of respondents are males. With regard to the age, 6/60% of
respondents found in the age of 18-30, 3/30% of them found between in 41-50 and no
respondents are above the age of 50. This shows that most of respondents are adult age. With
regard to education, no respondents found diploma level, 7(70%) of respondents have 1st degree,
3(30%) of them have 2nd degree and no responds have above 2nd degree. This shows that the
bank is dominated by employees with 1st degree. With regard to job service year, 4(40%) above
10 years1 (10%). This shows that most of the employees have below 5 year or low work
experience. (Journal CBE 2021) most of CBE staff males and half of percent are young also
medium job service. I conclude in future the number of females in CBE staff must be increase
unless its productivity is not attractive.
Table 13. Objectives of advertising
What is the main
objective of the bank
to advertise its
services to customers?
To inform its services to
customers
3 30%
To convince customers to
tell others about bound
4 40%
To remind customers 2 20%
To all purpose 1 10
Total 10 100%
According to the Table 13, 3/30% of respondents said that the bank’s objective of advertising is
to inform its services to customers, 4/40% of them said that to convince customers to tell others
about brand, 2/20% of them said to remind customers and the remaining 1/10% said the
objective of advertising is to meet all purpose. This shows that the main objective of the bank to
advertise its service is to convince customers to tell others about brand. Therefore I can conclude
that the bank use advertising objectives more profitable. (www.http//cbe.Portal new)

36
Table 14. Type of informational media used
Which type of
information media used
by CBE?
Television 1 10%
Radio 1 10%
News paper 1 10%
Others 0 -
All 7 70%
Total 10 100%
According to the Table 14, 1/10% of respondents respond that the bank use Television to inform
customers, 1/10% of them respond that the bank use Radio, 1/10% of them respond that he bank
use newspapers and, the remaining 7/70% or the majority of respondents stated that the bank
uses all kinds of information media. This shows that the bank has made one effort to advertise its
service trough different Medias. (Journal CBE 2021) introduce its program on this page. The
finding show that the majority of the respondents said different the customer comes from rural
area used radio and the urban one is television used. So the bank add another culture of
information media without this, like introduce itself on different meetings.
Table 15. Adequacy of company’s promotion to create awareness
Does company’s
promotion effective
enough to create
awareness in
customers mid?
Yes 8 80%
No 2 20%
Total 10 100%

37
According to the Table 15, shown that 8/80% of respondents said “yes” and the remaining 2/20%
of them stated “No”. From this one can understand that the institution’s promotion is effective
enough to create awareness in customers mind. The respondents who said “yes” also suggested
the following. 4/40% of then suggest that the bank uses pre- testing methods to evaluate
effectiveness of advertising, 2/20% of tem stated that the bank conducts research and the
remaining 2/20% of them are refrained from giving a response. (Journal CBE 2021) From this
one can understand that the bank is using pre-testing activities before releasing its message to
audiences.
Table 16. Profitability insinuation in promotional
Do you think that the
company is portable in its
promotional investment?
Yes 10 100%
No 0 -
Total 10 100%
According to the Table of 16, 10/100% of respondents said ‘yes’. And no respondents said ‘no’.
This implies that the organization is profitable its promotional investments. (Journal CBE 2021)
Table 17.Appropriateness of communication channel
Degree of
appropriateness of
communication channel
Very high 2 20%
High 3 30%
Medium 5 50%
Low 0 -
Very low 0 -
Total 10 100%

38
As the above Table 17,shows us 2/20% of respondents said that the appropriateness of
communication channel is very high, 3/30% of them said high, 5/50% or half of them said that
appropriateness of communication channel is medium and no respondents respond low, and very
low. This implies that almost appropriates of communication channel is medium. (File C5-43,
August 2018, www.extension.iastate.edu/agdm)I agree with this by the effectiveness or degree
of select appropriate communication channel. Because it adds attraction of new customer and
employees for the company
Table 18. The effort made by the bank to communicate with employees about promotion
Does the bank made any
effort to communicate or
introduce about its
promotional practice to
the employees?
Yes 7 70%
No 3 30%
Total 10 100%
As shown in Table 18, 7/70% of the respondents are replied as “Yes” and the rest 3/30% of them are
replied as “No”. From this one can understand that the bank mostly communicate introduce the
promotional practices to the employees. (www.http//cbe.Portal new) 95% of my result was the same
as within this website that was the CBE company most of time introduce its promotional activity
or practice.
Table 19. About organizations budget allocation for advertising
Does the organization
provide enough budgets
to advertise its service?
Yes 7 70%
No 3 30%
Total 10 100%

39
As shown in the Table of 19, 7/70% of respondents are replied as ‘yes’ and the remaining 3/30%
are replied as ‘No’ This implies that the bank mostly allocates enough budget for advertisement.
(Journal CBE 2021)The bank year to year to provide high budget for advertise service I agreed
by this action because at this time completion between banks are increase.
Table 20. Marketing system of the bank to attract customer’s attention
As shown in the Table of 20, 8/80% or majority of respondents replied as ‘yes’ and the
remaining 2/20%are replied as ‘No’. This implies that the marketing system of the bank is
conductive to attract customer’s attention. (www.http//cbe.Portal new)The marketing system
know online this one is used the bank mostly to transact money online system.
Table 21. Remedies for the problem of promotional practice
Does the bank immediately
readies for the problem
occurred?
Yes 8 80%
No 2 20%
Total 10 100%
As shown in the Table.21, 8/80% of respondents replied as ‘yes’ and the rest 2/0% of them
replied as ‘No’. From this one can understand that the bank takes immediate solution or measure
for the problem occurred regarding promotional activity. (www.http//cbe.Portal new
Is the marketing
system conductive
to attract customer’s
attention?
Yes 8 80%
No 2 20%
Total 10 100%

40
Table 22. Effect of promotional budget
According to Table 22, 10/100% of respondents replied as ‘yes’ and no respondents replied
“No”, this impels that promotional budget have a great role promotional activity. (Journal,
Nazereth branch 2014) If not properly promote itself may be lose its customers.so I agreed to
this journal my result and the report was much related.
Table 23. Policies and strategies of the bank in formulation of promotional activities
As shown in the Table of 23, 10% of respondents replied the bank faces shortage of budget when
accomplishing promotional activity, 6/60% or majority of them replied media fragmentation,
Do you think promotional
budget have effect on
promotional activities?
Yes 10 100%
No 0 -
Total 10 100%
What type of the
problem does the bank
face in accomplishing
promotional activities?
Items Number of
respondents
Percentage %
Strategy of budget 1 10%
Media fragmentation 6 60%
Un willingness of
customer accept message
2 20%
Source of message
problem
1 10%
Total 10 100%

41
2/10% of them replied unwillingness of customers to accept message and the remaining 1/10%
replied source of message as a problem. (Journal CBE 2022) This implies that media
fragmentation is one of the major problems that may threat the bank’s promotional activity.
Table 24. Factors affecting promotional activity of the bank (External factor)
Item Number of Responses Percentage%
Economic factor 2 20%
Technological factor 5 50%
cultural factor 1 10%
political factor 2 20%
Total 10 100
The above Table indicates that 2(20%), 5(50%), 1(10%) and 2(20%) of employees response.
Economic, technological, cultural and political factor respectively. Therefore as shown on the
above table 5(50%) of respondents said the technology factor affect the promotional activity of
the bank. (Journal CBE 2021) So it was possible to understand from this finding that majority
of the employees provide answer to technological factor, my result was completely related with
is journal.
Table 25.Factors affecting promotional activity of the bank (Internal factor)
Items Number of Responses Percentage%
Availability of funds 3 20%
Company policies 1 10%
Nature of the market 6 60%
Total 10 100
Observing the above Table, 3(20%), 1(10%) and 6(60%) of respondents said that internal factors
affect the banks are, Availability of the fund, company policies and Nature of the market
respectively. (Journal CBE 2021) The finding show that the majority of the employees said the
nature of the market is the most internal factor affects the bank promotional activity.

42
4.3. Analysis of Manager Interview
As the manager of CBE, Assela branch, the attitude of their customer is positive to the
organizational service. The bank is putting its effort to enhance customer satisfaction and its
profitability through attracting new customers by releasing real message in order to create
awareness for customers about its service.
 The overall evaluation of promotional activities conducted through taking the target
group of customer and ask certain question about the bank's promotional massage and
take the feedback from them.
 The bank used mainly advertising and sales promotion of promotional tools effectively.
 The bank mainly used television and radio to advertise its product or services. On other
hand the manager said the bank also use another medial such as newspaper and
magazine.
 The bank use persuasive and remind advertising objectives in order to aware the bank's
service to its customer.
 The bank used mainly incentives and coupons for reward. On other hand the bank also
used sponsor ship to various program.
 The bank affected external and internal factor. The factor that affect the bank internally
are nature of the market and service highly affect the wellbeing of the bank and the
external factors that affect the bank are technological factors.
Generally With regard to the factors affecting the organization's promotion, the manager said that
geographic factor is the main factor that affects the organization's promotional effectiveness.
This is because people who live in urban area behave differently with that of rural area. People
who live in urban area has also more access of information and they have an opportunity to hear
information but, the people who live in rural area has limited access of information. So, this is
the major factors that affect effectiveness of promotional activity.

43
CHAPTER FIVE
5. SUMMARY, CONCLUSION AND RECOMMENDATION
5.1. Summary of the Major Findings
 40 (80%) of customer respondents are males and the remaining are females. With regard to
the age interval, 25(50%) of customer respondent are between in 31-40.
 7(70%) of employees are males and the remaining 3(30%) of them arte females. With regard
to work experience, 5(50%) of them has below 5 years’ experience.
 50(100%) of respondents stated that they heard the promotional message of CBE.
 25(50%) of customers follow about CBE's advertising through Television.
 39(78%) of customers replied that from the advertised message they have got awareness of
the bank service.
 42(84%) of the respondents stated that they liked an advertised message.
 43(86%) of the respondents replied that they are not confused as a result of bank's
promotional message.
 32(64%) of the customer respondents stated that sales promotion is the best attractive to
them.
 30(60%) of the respondents stated that the organization releases its message in appropriate
time.
 36(72%) of customer respondents have an access of information continuously.
 Majority of customers are disagreed the idea that promotional campaign are carried in the
interest of audiences.
 28(56%) of the respondents said that they have a positive attitude towards the bank

44
 Majority of the employees stated that the main objective of the bank's advertising is to
convince customers to tell others about brand.
 Majority of respondents stated that the bank use all kinds of informational media.
 Majority of the respondents (employees) stated that the bank allocates enough budgets for
advertisement.
 8(80%) of respondents stated that the marketing system of the bank is conducive to attract
customers attention.
 Majority of the respondents claimed that media fragmentation is the major problem that may
threat the bank's promotional activity.
 10(100%) of respondents agreed that promotional budget have a great effect on promotional
activities.
 Most of the time the bank's promotional activity is affected by geographic factor which is
agreed up on by manager of bank.
5.2. Conclusion
 CBE, Assela branch is dominated by male customers. And majority of the employees of
the bank are males.
 Majority of the employees of the bank has medium work experience.
 The promotional message of the bank is heard and seen by the customers and majority of
these customers follow promotional message through television as well as the television
advertisement attracts majority of customers this is because television really shows
message and service to be provided.
 The bank's promotion is mainly focused on convincing customers and this helps the
organization to increase market share through attracting new customers.
 The promotional effort of the bank created awareness in customers mind and also this
awareness lead customers to get intension to purchase the service.
 Majority of the respondents are attracted by sales promotion advertisement.

45
 Releasing of the message in appropriate time created favorable condition for customers to
hear the message continuously.
 Promotional campaign of the bank are failed to consider the interest of customers in
designing the message.
 Majority of customers have positive attitude towards the bank.
 Communication mix elements are practiced by the commercial bank of Ethiopia.
 Due to the great role of budget in advertising, the bank allocates enough budgets to
communicate its service and these made it profitable in its activity.
 The marketing system of the bank is conducive to attract customer’s attention.
 Majority of the respondents claimed that the bank faced the problem of media
fragmentation and also putting an effort to take measure for the problem.
 Geographic factor is the main factor that affects effectiveness of organization's
promotional activity.
5.3. Recommendation
 The bank's promotion is affected by geographical factor like sparse distribution of its
potential customers, so the organization must transmit its promotional message on the
broadcast media to reach all customers residing in different area.
 To increase its message attractiveness the bank should enhance television advertisement
because majority of customers require it. And the radio advertisement is better for the
customers residing in rural area who have access of television media.
 The bank should enhance the appropriateness of its communication channel from
medium to very high.
 The bank faced the problem of media fragmentation. In order to overcome this problem,
the bank will run with new technology. This means the customers culture of seeking
information through old media is changing with change in technology through time.
 Due to this reason, different new media’s like internet advertising, visa cards and the like
should be accessed.
 The bank should try to measure its promotional message before and after it reach to
audiences.

46
 The promotional campaign of the bank is failed to consider the customers interest when
performing advertising activity. To overcome this problem, the promotional campaign
should practice new promotional creative strategies. This means considering what new
things or information’s are the customers seeking currently.

i
APPENDIX A
Arba Minch University
College of Business and Economics
Department of Management
Questionnaires prepared for employees of the Commercial Bank of Ethiopia Assela Branch
Dear respondent;
First of all I would like to forward my deepest gratitude for your reserved co-operation in filling
this questionnaire. The purpose of this questionnaire is to gather adequate information on the
promotional activity in commercial bank of Ethiopia in Assela branch. In order to make the study
more fruitful response to the given question would be necessary. All of your response used for
writhing a senior essay in partial fulfillment of bachelor of degree in management.
Note that; the aim of this study is not to abuse the company secret rather it is only to know the
role of promotion in business organization.
 Please put “X” on the box provided
 Try to give short and precise response by writhing on the on the space provided.
Part I: Personal background.
1. Sex: Male Female
2. Age: 18—30 31—40 41—50 Above 50
3. Educational background:
Diploma 1St degree 2nd degree Above
4. Job service year: 0—5 5—10 10 and above

ii
Part II: kind of promotional tools information
1. What is the main objective of the bank to advertise its services to customers?
To inform its service to customers to convince customers to tell others about brand
To remind customers for all purpose
2. Which type of information media is used by CBE?
Television Radio Newspapers others All
3. Does Company’s promotion effective enough to create awareness in customers mind?
Yes No
3.1. If your answer for question No 3 is “Yes”, What is the mechanism that the bank used to
measure its advertising effectiveness and its appropriateness to create awareness in customers
mind? Please specify the possible reason:------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------
------------
4 .Do you think that the company is profitable in its promotional investment?
Yes No
4.1. If your answer for question No 5 is “NO”, Please specify the possible reason-------------------
--------------------------------------------------------------------------------------------------------------------
----------------------------------
5. Degree of appropriateness of communication channel
Very high High Medium Low Very low
6. Does the bank made any effort to communicate or introduce about its promotional practices to
the employees?
Yes No

iii
7. Does the organization provide enough budgets to advertise its service?
Yes No
8. Is the marketing system conducive to attract customer’s attention?
Yes No
9. Company’s policies and strategies to formulate appropriate promotional activities
Excellent Very good Good Bad
10. What type of problem does the bank face in accomplishing promotional activities?
Shortage of budget Un willingness of customers to accept message
Media fragmentation Source of message problem
11. Does the bank immediately remedies for the problem occurred?
Yes No
12. Do you think promotional budget have an effect on promotional activities?
Yes No
13. What must be taken as a measure to improve the current status of banks promotion?
---------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------.
PART III: Factors affecting the promotional activity of the bank
14. Is the bank’s promotional activity affected by the external factors?
Yes No
15. If your answer for question no. 14 is yes, which external factor mainly affects the
promotional activity of the bank?

iv
Economic factor Technological factor Cultural factor Political factor
16. .Is the bank’s promotional activity affected by the internal factors?
Yes No
17. If your answer for question no.18 is yes, which internal factor mainly affects the promotional
activity of the bank?
Availability of funds company policies Nature the market Nature of the service
18.please, write your general opinion about promotional activity of this bank if you have more--
---------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------
------------------------------------------------------
THANK YOU FOR COOPERATION!

v
APPENDIX B
Arba Minch University
College of Business and Economics
Department of Management
Questionnaires prepared for customers of the Commercial Bank of Ethiopia Assela Branch
Dear respondent;
First of all I would like to forward my deepest gratitude for your reserved co-operation in filling
this questionnaire. The purpose of this questionnaire is to gather adequate information on the
promotional activity in commercial bank of Ethiopia in Assela branch. In order to make the study
more fruitful response to the given question would be necessary. All of your response used for
writhing a senior essay in partial fulfillment of Bachelor of degree in management.
Note that; the aim of this study is not to abuse the company secret rather it is only to know the
role of promotion in business organization.
 Please put “X” on the box provided
Part I: Demographic information.
1. Sex: Male Female
2. Age: 18—30 31—40 41—50 Above 50
3. Educational level:
Elementary High school College Diploma 1St degree Above

vi
Part II:
Promotional informational question
1. Are you customer of commercial Bank of Ethiopia?
Yes No
2. What is the reason behind that initiated you to choose commercial bank of Ethiopia?
Its fast delivery of service its continuous advertising
Its convenience location to you its message reality
3. Have you heard any promotional message about commercial bank of Ethiopia?
Yes No
4. Through which media you always hear about commercial bank of Ethiopia?
Television Radio Magazine Newspapers Others
5. Which media is more attractive to you?
Television Radio Newspaper Magazine
6. What do you understand from the advertised message?
Aware about the bank service its good location
Kind of service to be provided its convenience to you
7. What is your attitude towards the advertised message of CBE?
Good Bad like Dislike
8. Have you encountered any confusion as a result of the firms’ promotional message?
Yes No

vii
9. Which promotional mix is more useful and attractive to you?
Sales promotion Public relation Publicity
Personal selling Advertising
10. What is your degree of satisfaction related to promotional campaign that is taken by the
company?
Very high high Medium Low Very Low
11. Does the organization release its promotional message in media in appropriate time?
Yes No
12. Does promotional activity carried continuously and reach to you?
Yes No
13. Degree of appropriateness of communication channel.
Very high High Medium Low Very low
14. Promotional campaign are carried in the interest of audiences?
Strongly agree Agree Partially agree Disagree
15. What is your attitude towards this brand?
Positive Negative
16. What is your intention towards the purchase of bank service?
Likely Unlikely

viii
17. The promotional information and actual service of the bank are both similar and going
together?
Strongly agree Agree
Partially agree Disagree
18. How do you see CBEs’ promotional activities compared with its competitors?
Very strong similar weak
THANK YOU FOR COOPERATION!

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