WOLAITA SODO UNIVERSITY

COLLAGE oF BUSINES ECONOMICS

DEPARTMENT OF MANAGEMENT

ASSESSMENT OF MARKETING STRATEGY

IN CASE OF COMMERCIAL BANK OF ETHIOPIA WOLAITA SODO MAIN(
)BRANCH

A Research seiner essay Submitted to the department of management in partial

fulfillment of the requirement for bachelor Arts Degree in Management.

By: Netsanet Temesgen

ID No : CBE/R/301/07

Adviser name: Temesgen Tera (MBA)

May, 2017

Wolaita Sodo, Ethiopia

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 Acknowledgement

First and for most, I would like to give my gratitude and praise to the almighty god for his invaluable
cares and supports throughout the course of my life and helped me since the inception of my education to
its completion and enable me to achieve my career.

Next I am grateful to appreciate my advisor MBA, Temesgen Tera who has taken my trouble with me
while I was preparing the paper specially his valuable and prompt advice, his tolerance guidance and
useful criticism throughout the course in preparing the paper, constructive correction and insightful
comments, suggestions and encouragements are highly appreciated. Special word of mouth is his credit
point. My sincere and heartfelt gratitude goes to marketing manager and employees of the marketing
department of the CBE for their frank response to my interview question and questionnaires without
which this paper would come to life.

Finally, I am greatly indebted to my family and friends for their encouragements, moral support and
suggestions. Thank you.

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 Abstract

This study was conducted with general objective of assessing the marketing strategies used by
commercial bank of Ethiopia and to evaluate them in the light of modern banking. In fulfilling the
organizations objective, the study was designed to analyze the banks problems of keeping satisfied
customers, to suggest how the bank can win higher percentage of market share and the bank can over
take key competitors on quality and customer service. the purpose of the study is to provide effective
marketing strategy for the organization to implement organizational strategy by motivating employs and
managers who works in CBE with improve and enhance the overall performance of the organization. The
study was designed to assess the marketing strategy of CBE in light of integrating framework. Both
primary and secondary data collection instruments were used to collect the data. The secondary data
which are collecting from different books and the primary data which are collecting through questioners
and interview. The interview was conducted with the manager of wolaita sodo main branch. The
questionnaire was distributed to employees and managers at CBE wolaita sodo main branch. close ended
and open ended questionnaire along with interview were used for purpose of data collection. The
selection of the respondent was carried out by using judge mental /purposive sampling research method
because no other department was concerned about marketing strategy and the researcher would take
some of the respondents of the marketing staff as a total population of the study. The literature review
enables us to understand the various theories on what marketing strategy seems and how can it
implemented properly in CBE the study was conducted by collecting data from sample of 51 respondents
selecting from the target population by using questionary.the data was organized by using descriptive
method or approach.

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ACRONYMS

CBE- COMMERCIAL BANK OF ETHIOPIA

EFTS- ELECTRONIC FUND TRANSFER SYSTEM

ATM- AUTOMATIC TELLER MACHINE

EFB- INTERNET FREE BANKING

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TABLE OF CONTENT

Acknowledgement---------------------------------------------------------------------------------I

Abstract-----------------------------------------------------------------------------------------------II

Acronyms and abbreviation---------------------------------------------------------------------III

LIST OF TABLE----------------------------------------------------------------------------------IV

CHAPTER ONE: INTRODUCTION

1.1 Back ground of the study---------------------------------------------------------------------------------

1.2 Statement of the problem--------------------------------------------------------------------------------
1.3 Research questions----------------------------------------------------------------------------------------
1.4 Research objective----------------------------------------------------------------------------------------
1.4.1 General objective------------------------------------------------------------------------------------
1.4.2 Specific objective------------------------------------------------------------------------------------
1.5 Scope and limitation of the study---------------------------------------------------------------------
1.5.1 Scope of the study----------------------------------------------------------------------------------
1.5.2 Limitation of the study------------------------------------------------------------------------------
1.6 Significance of the study ------------------------------------------------------------------------------
1.7 Operational and conceptual definition---------------------------------------------------------------
1.8 Organization of the study------------------------------------------------------------------------------

CHAPTER TWO;REVIEW OF RELATED LITERATURE

2.1 marketing strategy overview--------------------------------------------------------------------------

2.1.2 Marketing strategy development--------------------------------------------------------------------

2.1.3 The marketing mix in banking sector-----------------------------------------------------------

2.1.4 Service------------------------------------------------------------------------------------------------

2.1.5 Price---------------------------------------------------------------------------------------------------

2.1.6 Distribution (place)---------------------------------------------------------------------------------

2.1.7 Promotion---------------------------------------------------------------------------------------------

2.1.8 Personal selling---------------------------------------------------------------------------------------

2.1.9 Advertizing---------------------------------------------------------------------------------------------

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 2.2 function of commercial bank------------------------------------------------------------------------

2.2.1 Primary function---------------------------------------------------------------------------------------

2.2.2 Accepting deposit-------------------------------------------------------------------------------------

2.2.3 Saving deposit------------------------------------------------------------------------------------------

2.2.4 Fixed time deposit--------------------------------------------------------------------------------------

2.2.5 Lending money-----------------------------------------------------------------------------------------

2.3 Secondary functions------------------------------------------------------------------------------------

2.3.1 Service of banks in modern time---------------------------------------------------------------------

2.3.2 Teller system------------------------------------------------------------------------------------------

2.3.3 Credit card-----------------------------------------------------------------------------------------------

2.3.4 Debit card-----------------------------------------------------------------------------------------------

2.3.5 ATM card------------------------------------------------------------------------------------------------

2.4 Introduction of modern technology in banking----------------------------------------------------

2.4.1 EFT------------------------------------------------------------------------------------------------------

2.4.2 Internet banking----------------------------------------------------------------------------------------

2.4.3 Any time any where time banking-------------------------------------------------------------------

2.4.4 Mobile banking------------------------------------------------------------------------------------------

CHAPTER THREE: RESEARCH METHODOLOGY

3.1 background of study area -------------------------------------------------------------------------------

3.2 Research design -----------------------------------------------------------------------------------------

3.3 Target population --------------------------------------------------------------------------------------

3.3.1 Sampling technique and procedure------------------------------------------------------------

3.3.2 Sampling size------------------------------------------------------------------------------------

3.3.3 Sampling procedure-----------------------------------------------------------------------------

3.4. Data types and source ---------------------------------------------------------------------------------

3.4.1 Data type----------------------------------------------------------------------------------------

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3.4.2 Data source ----------------------------------------------------------------------------------------

3.5 Method of data collection--------------------------------------------------------------------------------

3.6 Data processing and analysis---------------------------------------------------------------------------

3.7 Ethical consideration------------------------------------------------------------------------------------

CHAPTER FOUR : DATA PRESENTATION& ANALAYSIS……………………………………

4.1 profile of respondents……………………………………………………………………….

4.2 questionnaire analysis………………………………………………………….…………

4.3 interview analysis…………………………………………………………………………….

CHAPTER FIVE: CONCLUSION AND RECOMMENDATION…………………………………………………………………………

5.1 conclusion……………………………………………………………………………………………………………………………………….

5.2 recommendation……………………………………………………………………………………………………………………………

References-----------------------------------------------------------------------------------------------
Appendices
Appendix I - questionnaire analysis
Appendix II - interview analysis

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LIST OF TABLE

4. 1 total number of questionnaire distributed, returned,

unreturned………………………………..

4. 2 general information of
respondents………………………………………………………………………

4, 3 the company advertising

strategy………………………………………………………………………..

4. 4 opinion of the employees towards the company marketing mix

strategies………………..

4. 5 employees response in relation to the effective marketing

strategy…………………………

4. 6 employee response in relation to providing modern

service……………………………………

4. 7 employees response that related to the service of

CBE…………………………………………

4. 8 employees response that related to methods by which clints are getting

service……………

4. 9 emplopyees opinion in the relation of customers primary reason for buying or

wanting….

4. 10 employees response in relation to the company product

quality…………………………………

4. 11 the bank product availability and

accessibility…………………………………………………………..

4. 12 responses in related to the implementation of modern

technology……………………………..

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4. 13 employees opinions in relation to the performance of
CBE…………………………………………

4. 14 communication effectiveness between the

department………………………………………………

4. 15 response of competition and on quality and customer

service…………………………………….

4. 16 answered based on yes or no ways of

disclose……………………………………………………….

Chapter one: Introduction

1.1 Background of the study
Marketing is major stakeholder in new product development, customer
management and value supply, chain management and marketing strategy
provides concept and process for gaining competitive advantage by delivering
superior value to the business customer. Therefore to deal with the current
challenges. The bank must have more distinctive an purposeful marketing strategy
and they should be effectively implemented (jain,1997).

As part of the strategic planning process every bank has to formulate a marketing
strategy before entering a new market. For a bank marketing formulation of a good
marketing strategy is a big importance since it contributes benefits, including
raising the efficiency of anew service launcher, cost reduction and improving
service quality and market share performance. So before beginning to develop a
service; every bank must show that the service of the bank should accepted by a
target audience and their marketing strategy will accomplish this goals. (Zelalem.t
and negir r.2009)

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Marketing strategy is the process of planning and implementing bank polices
towards realizing company goals in accordance with the banks vision. Marketing
strategy include, general one such as price reduction for market share growth
customer service and loan free service as well as numerous specific strategies for
specific area of marketing. Therefore, marketing strategy is most effective when it
is an integral component of corporate mission, target marketing, marketing mix and
defining how the organization will successfully engage customer’s prospects and
competitors in the market arena (dibb, 5, 2005)Different scholars define marketing
in various ways.

(Philip kottler) define marketing from the perspective of society marketing is a

social and managerial process by which individuals and group obtain what they
need and want through creating and exchanging value with others marketing
philosophy guide organizations to design strategies that build profitable relationship
with target consumers also designing marketing program can enhance customer
relationship by transforming marketing strategy in to actions and to implement.

1.2 statement of the problem

The business environment of the present is taken relatively different from compared
to the past. Marketers should be able to adjust to changing through the major
controllable and tactical elements of marketing mix products or service, price, place
and promotions.

It is natural that every business or international banks operate (encounter) in a

turbulent and uncertain environment. In the context of changing customer
expectation, technological discontinuities, increasing environmental uncertainty,
increasing environmental competitors, depreciation and inflations, so every
business managers have a big challenge of marketing the rights strategic choice
and setting their strategic priorities in order to allocate their resources and services
to different functions in an efficient manner for the business success. Due to this,
managers must develop new tools, new concepts, new strategy, new plan, new
vision and mission and the new mindsets to cope with the turbulent and chaotic
environments leading to the discontinuous change (Jain, 1997).

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In fact when you run a business, everything might not be easily accomplished
marketing. Success is the lifeblood of any company. Everyone knows that a
marketing strategy influences the company’s ability to generate profits or to stay in
business. Not all too often good product ideas are founded because of poor
marketing strategy. Likewise commercial bank of Ethiopia might face with some
problems from other external competitors interfaces to implementing their
marketing strategies.

In order to have a clear vision of the total marketing practice. One needs compare
top performance with the final outcome. In doing so markets share is available
measure of accompanying marketing. Success which is defined as maximizing
service expressed as a percentage of total sales in giving market (Thomas, 1986;
138)

1.3 Research questions

This study was attempted to assess the problems associated with the marketing
strategy in commercial bank of Ethiopia. Specifically the study was designed to
address the following basic questions.

1. How the marketing strategies are practiced by commercial bank of Ethiopia

aligned with its mission, vision, and marketing mix to satisfy customer
requirements?
2. What types of modern technology are used in commercial bank of Ethiopia as
a marketing strategy?
3. How does commercial bank of Ethiopia manage market mix element to
achieve its marketing strategy?
4. What are the problems encountered in implementing the marketing strategy?

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1.4 Research Objective
1.4.1 General objective
The general objective of the study was to assess the marketing strategy used by
commercial bank of Ethiopia and to evaluate them in the light of modern banking
marketing practice

1.4.2 Specific objectives

The research study was intended to:

 To identify the marketing strategy of commercial bank of Ethiopia

 To identify modern technologies that are used commercial bank of Ethiopia
 To evaluate the implementation of market mix elements in the CBE
 To identify problems encountering the marketing strategy implementations
of commercial bank of Ethiopia and to give recommendations.

1.6 Significance of the study

The researcher hopes that the finding of the study was highlight the strength and
weakness of its marketing strategy CBE.

One of the core activities in business organizations is having a well developed

marketing strategy. The ultimate success or failure of accompany depends on its
marketing. The study was intended to help the bank management to redirect their
attentions to this highly essential function. the study was focus on how marketing
mix focus on how marketing mix, corporate, mission, used in order to enhance,
maintain, and attract customers and to identify how those tools should affect their
marketing strategy and undertaking such study is very crucial for any business
entity so as to shape its marketing strategy. The study is worth doing because it has
helped to the company to look at its problems, to take in to the alternative

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consideration, and to give basic knowledge about marketing strategy and their
significance in commercial bank of Ethiopia.

1.5 Scope and limitation of the study

1.5.1 Scope of the study
The scope of the study was limited only on a single commercial bank of Ethiopia. It
is concerned primary with commercial bank of Ethiopia Wolaita Sodo main branch
because commercial bank of Ethiopia is the researcher would be know the bank
deeply and also the bank located the area to better study other banks.

1.5.2 Limitation of the study

Since the study was made based on interview and interview and questionnaire this
method were not certain to clearly reveal real situations. Due to personal biased,
especially the interview part was made with managers and these managers may not
be volunteer to give the true situations sense of the organizations strategy because
they may fear that their competitors may imitate their ideas. The study was
conducted on the bank side which is the marketing strategy of the employee and
uncovered the other stakeholders such as government regulations of commercial
bank of Ethiopia, intermediaries and to see what looks like the marketing strategy
of the banks in term of customer side.

Lack of sufficient data may limit the depth of the analysis of the study. Because of
business they were hide information and give mislead information when the
researcher requested them

1.7 Operational definitions

A good marking strategy should be draws forms market research and focus on the
right product mix in order to achieve the bank maximum profit potential and
situation the business good will, an organization strategy that that combines all of
its marketing goals in to one comprehensive plan, so marketing strategy is the
foundation of marketing plan.

1.8. Organization of the study

These study was include five chapter, chapter one was an introduction part it
includes background of study ,statement of the problem, objective of the study,

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significance of the study, scope of the study, limitation of the study, conceptual and
operational definitions and finally the organization of the study.

Chapter two was deals with literature review, chapter three was include
methodology of the study and the fourth chapter was includes data analysis and
interpretation, finally the fifth chapter include conclusion and recommendation.

Chapter Two:-Review of related literature

2.1 Marketing strategy overview
When we start marketing strategy the same term applied to the words objective
and strategy. The marketing objectives are the aims, the goal to which the entire
marketing effort of the banks is directly. Marketing strategy therefore refers to the
means by which the marketing objectives will be achieved. The same short hand
will also apply, The marketing objective must begin with the word “To. ” and the
marketing strategy with the word “By” (Paul fifield , 1994, P.1994).

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While all marketers do not agree on a common definition of a market strategy, the
term generally refers to a company plan that allocates resources in a way to
generate profit by positioning product or services and targeting specific consumers,
groups. Marketing strategy focuses on a long term company objective and involves
planning marketing program. So that they help a bank realizes its goal and strategy.
Companies rely on marketing strategy for establishing product lines or services as
well as for a new products and services. Marketing strategy encompasses selecting
and analyzing the target markets and creating, maintaining an appropriate
marketing mixes that satisfy the banks and customer satisfaction (Paul fifield 1994).
Marketing strategy determines the choice of market segment, positioning, market
mix and allocation of recourses.

According to McDonald ,marketing strategy are the means by which marketing

objective will be achieved and are generally concerned with the four major
elements of the marketing mixes ,products ,price, promotion, and place(Malcolm
MacDonald and iandunbar,2007).

2.2 Marketing strategy development

After testing and selecting a product concept for development, the new product
manager must draft a three-part preliminary marketing strategy plan for
introducing the new product in to the market. The 1 st part will describe the target
market size, structure and behavior, the planning product positioning, and the sale,
market share and profit goal sought in the first few years. The second part will
outline the planed price, distribution strategy and marketing budget for the 1 styear.
The 3rd part will describe the long-run sales, profit goal, and marketing mix strategy
over (ranch hold a.2007) and gurau.c

2.3 The marketing mix in banking sector service

2.3.1 Service
Recently, the bank is in period they earn in service beyond selling money. The
prestige is get as they after their service to the mass. Like other services banking
service also intangible banking service are about the money different type and
attribute like leading, depositing and transferring. These intangible service are

xv
sheared in contract. The structures of banking affect the success of institution in
long term. Beside the basic attribute like speed, security and easy in banking
service the write like consultancy service for to be compounded (deves, Kenneth,
1985).

The price which is an important compute marketing mix is named differently in the
base of transaction exchange that it takes place. Banks have to estimate the price
of the service offered by performing these keep their relation extents and like take
new one the price is in banking have named like interest commission expense. Price
is the sole element marketing variable that create early while cause expenditure.
Marketing mix element offer other than price effect, sells volume price, price affects
both profits and sells

2.3.2 Price
Directly, bank should be carefully in determined their price polices because
mistakes I pricing cause customer shifts towards rivals offering likewise service.
Traditionally bank use three methods called (cost plus.)Transaction volume base
and (challenging learn) in pricing of service (cotler, 1996)

2.3.3 Distribution (place)

Distribution strategy are concerned with the chanels of a firm may employ to make
its goods and services available to customers.desition about marketing channel,
which helps producer deliver goods and services to their target market ,are among
the most critical facing management because the chsannel that are choosen
intimately affect all of the other marketing decisions. The complexity of banking
service is resulted from different kinds of them. The most important feature is the
precaution of customer benefiting from service. the most bank services are complex
in attribute and when these feature join intangibility characteristics offering takes
also mental infers ability in addition to physical in tangibility on the other hand
value of services and benefit takes from these mostly depends on knowledge ability
and participation of customer decides feature of offering this is resulted from the
fact that production non separable those service. most authors argue that these
features of banking services makes personal interaction between customer and
bank obligators and the direct distribution is the sole alternative due to this reason,

xvi
like preceding applications in recent year, branch offices use traditional method in
distributions of banking services.

2.3.4 Promotional mixes

One of the most important elements of marketing mix of services is promotion
which is consists of personal selling, advertising, public relations, and sales
promotion tools(Pride,1993;542)

2.3.4.1 Personal selling;

personal selling is a key element in promotion, one of the four p’s in the marketing mixes.

Personal selling has the three distinctive qualities;

1 Personal confrontation
2 cultivation

3 response

Due to the characteristics of banking services, personal selling and use of them. Personal selling occurs
in to the ways first occurs in a way that customers and banker perform instructions fact to fact at a
branch office in this case, whole personals, bank employers, chief and managers, takes in selling. Second
occur in a way that customers representatives go to customers place customer representative are
specialist in banks service to be offered and they shape the relationship between bank and customer
(Deviss, 1985; 510)

2.3.4.2 Advertising
Advertising is any paid of form of non-personal presentation and promotion of ideas,
goods, or service by an identified sponsor advertising can reach geographically
dispersed buyers efficiently. Certain forms of advertising (tv advertising) typically
require a large budget, where as other forms(news paper advertising) can be done
on a small budget. Banks have too many goals which they want to achieve. These
goals are for accomplishing the objective as follows in a way that bank develop
advertising campaign and use media.

1. conceive customers to examine all kinds of service that banks offer.

2. Increase use of services

3. Create well fair image about banks and services

4. Change customers attitude

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5. Support personal selling

6. Introduction service of bank

7. Emphasize well service

Advertising media and channels that banks prefer are newspaper, magazine, radio,
direct posting and outdoor TVs, commercials in the function of target market should
be determined and the media that reach this target easily and cheaply must be
preferred.

Banks should care about following criteria for the selection media.

 Which media the target market prefer

 Characteristics of service
 Content of message
 Cost
 Situation of rivals

Advertising should be mostly educative, imagine making and provide information as

follows,

 Activities of banks, results, program, news services

 Situations of market, government decision, future development
 The opportunities offered for industry branches whose development meet
national benefits.

3.1 Functions of commercial banks

The commercial banks play a sigNificant role in all the economics activities of a
nation they have come to be regarded as instruments of economic growth with
social justice. In this role they have to mobilize the saving of community and
channel them to socially productive investment to have a clear idea about the
economic significance of banks, it is essential to analyze the various functions
performed by them. Generally these functions may be classified under two
headlines.

xviii
3.2 Primary and secondary functions
3.2.1 Primary functions
The primary functions of banks classified as; accepting deposit and lending money

2.2.2 Accepting deposit

Accepting deposit is an important function of commercial bank major portions of the
deposits accepted is repayable on demand .generally, the following three types of
deposit are accepted.

2.2.2.1 Current deposit or demand deposit

These deposit are repayable on demand, they are known demand deposit in USA
and current deposit in England. These deposits are usually depending with a
minimum balance prescribed by the bank and any amount can be deposited in the
account. This deposit can be with drawing by the issue of cheqes.

Generally number of interest is allowed on current account. These a account are

normally depend by business house.

2.2.2.2 Saving deposit

Saving deposit accounts are maintaining commercial bank to pool the small saving
of low and middle income group. This is advice to encourage thrift among the
person who earns fixed income every month. Certain restrictions also are imposed
on opening and operation of saving account. This restrictions may be vary from
bank to bank usually all banks restrict the maximum amount that can be deposited
in or with drown from the saving account. The number of cheqes that can be
drowning against the account within a specified period is also restricted.

2.2.2.3 Fixed or time deposit

2.2.2.3.1 Lending money

Commercial bank, besides accepting a channel through the deposited to those who
want it. They provide a channel through which the individual saving can be let to
commerce and industry they mobilize the idle capital of the nation and make it
available for productive purpose. The bank lends money in different forms they can
be either secured or unsecured. The most popular form of lending is over draft, loan
and advances, cash credits and discounting of bills of exchange by accepting

xix
deposit and lending money, the banks not only acts as intermediary between the
depositor and borrowing business mean, but they also create additional purchasing
power. Therefore creation of credit is an important functions of commercial bank
(clitooved Gomez, 2008)

3.2.2 Secondary functions

The modern commercial bank act as agent of their customers as an agent the
bankers render the following services:

 collection of cheqes, drafts and bills for their customers

 the execution of standing order
 conduct of stock exchange transactions such as purchase and sale of
securities for customers
 Acting as executors trustees
 providing income service and
 Conduct of foreign exchange business.

3.3.1 General utility service

The bank, apart from providing the usual banking service also comes forward to
help the customers in a number of other ways in a country where the banking
service has developed considerably the banks redder much service just to provide
more facilities to the customers which include safe keeping of valuable issue of
commercial letter of credit and travelers cheqes, collecting trade information from
foreign countries for their customers, arranging business for and providing suitable
advise(cliffod Gomez,2008)

3.3.2 Services of banks in modern time

The modern bank provides their customers with variety of new facilities in addition
to their traditional functions some of the additional facilities provide are explained
in details.

3.3.3 Teller system

A large number of customers come to bank for various purposes such as deposit of
money making drafts and encashment cheqes, traveler cheqes and gift cheqes such
occasions waiting become a problem in any big branch of bank. One of the most
important methods of reducing the waiting time of customer at the counter is the
adoption of teller system. Under the teller system a pupate counter is opened

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through which transactions involving amounts not exceeding certain time it is
settled. This counters is enclosed in cubicle on one officer of the bank, called the
teller is put in charge of it sometimes panel of relief teller is also maintained at
branches to act as tellers in the absence of the present teller. The counter has
provision of suitable drawer for the teller to keep cash with facility for looking it up
securely. The teller is also provided with a suitable cash tax. The teller counter is
placed in such away that the teller has easy access to relative ledgers.

3.3.3.1 Advantage of the system

The most important advantage of this system is the customers who come to the
bank for depositing or with drawing small amount don’t have to wait at the counter
for a long time some times, the teller can pay changes even without varityping the
balance or the specimen signature, where the letter know a customer and is
satisfied that the customer normally maintain sufficient balance in the account, he
need not make reference to leaders or the specimen signature sheet before baying
the change. It is given his direction and it expects to use it widely and transaction
with delay.

3.3.4 Credit card

Credit card is the made of plastic which carry a specimen of holders signature they
have ascertain information embossed on them. When they are put in to a press the
information will be recorded on evince or other documents. Credit card are
designed to accord to the either cash or cheqes and to give some measure of credit
to accord to the either cash or cheqes and to give some measure of credit to the
holder. They are used in the place of making cash payment to good services only in
those establishment concerned and once anther sends to the credit card holder for
all this purchases in the previous month.

Generally the banks which issue the credit card will a member of payment brand.
Amstar cards are example of such as cards, the card carries their symbols by which
the card holder can make purchase anywhere in the world (cifford Gomez,2008).

xxi
 3.3.5 Debit Card
Today credit card debt cards (which may be called plastic money) are more in
vague charring a lot of cash is cumber some and risk, credit card or ATM card is the
smart solution to such problems. It is a convenient and safe alternative for charring
cash. The developed and developing countries have more and more popular in
these countries. Debit card is more advanced than ATM card and credit cards. As if
can be used of a specified retail or department, in addition to specified branch. If
function as both ATM card and sometimes credit. Other retail department store is
doesn’t require the personal identification is immediately transferred from the card
holder account electronically and will appear in month statement of account.

This system require a terminal known as the point of sale terminal at every place of
purchase after making purchase, the merchant insert the card in to the machine
automatically checks the balance. The merchants get credit for all his transaction
on next day.

3.3.6 Credit card VS Debit card

Credit card and debit card may look a great deal alike but actually the different a lot
as the followings. A credit is apay latter product where as a debit card is a pay new
product.

Interest and other charges have to be paid on credit card but there is no inters
accursed against the use of debit cards. No sophistication telecommunication
system is required. For a credit card but installations of sophistications
communications network is needed in the case of debit card.

In the case of credit card, the credit is generated by the bank for a maximum
period of days but in the case of debit card, the purchase directly debited to the
amount that means the payment is made out of the card holder own funds and no
credit is allowed.(Clifford Gomez,2008).

3.3.7 ATM Card

Another important modern technology which gaining popularity is the use of
automated teller machine (ATM) in the banking system.atm card requires the
personal index number entered to avail the service.

xxii
(ATM) provides quick and converts service of the customer by enabling them to
have access many around the clock and throughout the year.

ATM provides the following.

 They enable bank to provide fast service interims of accessibility to cash

24 hour a day seen weekends and holiday.
 It can vail new and crisp hoots from them.
 They services of tam is available at the convenient and locations
 They provide privacy in the transactions.
 They provide/help the bank in reduced cored at the bank counters
under this system.

Banks issue ATM cards to the customers for transferring on network. This card will
contain some important data such as the name of the card holder bank code and
personal identification number (pin). (Cliford Gomez, 2008).

4.1 Introduction of modern technology in banking

Improved customer service has been come very important for survival and growth
in the emerging delegated financial market for banks.

The banks are competing with each other to offer multifarious and diversified
services to customers to widen their client base. Automation of various banking
serves using the latest technology emphasizes to providing series using the latest
technology emphasis to providing superior customer service.

Some banks utilize the financial sector development loan of the word bank to build
competitive advantage through modernizations. Some of the modern technologies
introduced in the banking industry are discussed below.

4.1.2 Electronic Fund Transfer System (EFTS)

The electronic fund transfer system (EFTS) recent development in banking field as a
result of adoption of modern technology in banking this system was introduced in
banking with a view to enable the remittance of funds to their retail customers.

In facilitate transfer offends from one center to another across banks with in few
seconds and assume a variability of funds on next day of transfer; this transfer are
made through an international organizations promoted by bank and financial

xxiii
institutions around the world called “swift”. This new technology will pave the way
for paper less banking.

4.1.3 Internet banking

Internet banking is one more channel, one more access point like an automated
teller machine or a call center from where a customer can transact business for
which earlier it used to go to a bank branch. Internets are the cheapest of all
banking channels and used help banks gain substantially in terms of transactions
cost. With internet banking need only a processing center which would interact is
located anywhere in the world; it saves the time of customers from physically
visiting his bank. It enabling his to manage his account, playbills, transfer fund,
invest and disinvest etc. by his computer at home it provides him a wide service of
choice on the net at very low cost of switching between the competing providers of
services. It could shape around for best price for credit cards loans, mortgage, etc.
This lead to downward pressure on pricing. The customer will be the gainer in
developing countries; the services currently offered on the net mainly cover retail
banking. Under internet banking one can do any transactions simple sitting at in
front of a computer

The following types of transactions can be done on line;

 Pay utility bills

 View and print your statement
 Transfer on linear b/n account
 Make third party payment
 Place fixed deposit
 Change maturity instructions
 Pay credit card bill
 Steep change, request change book
 Send and relive secured e-mail to and from the bank(Clifford,2008)

4.1.4 Anywhere any time banking

Earlier, major challenge was related to the divide made by caused distance. Today
banking has broken all geographical and barrior and demand from customer to

xxiv
anywhere and anytime banking .Currently, with introduction of it based offering
such as intrnet and mobile banking , the customer have been provided with a
means for performing by banking transaction from anywhere. Before the
introduction electronic banking facility a customer had only a limited fixed
transaction banking business such deposit of money and with drawl of cash .ATM
have helped overcome the time limitation for banking .The customer can transact
business all the 24 hour of the day with the help of ATM (automatic teller
machine ).clilfford 2008.

4.1.5 Mobile banking

Internet banking has helped to give the customer any time access to their banks
customer could check out their account details ,get their bank statement ,perform
transaction such as transferring money to other accounts an d pay their bill by
sitting the comfort of their home and office. However the biggest limitations of
internet banking in the requirement of personnel computer with an internet
connection, not a big obstacle, if we look it for us the developing countries of but
definitely a big barrier as far as the developing countries of Asia such as china and
India. Mobile banking this fundamental limitation, in this the customer requirement
is limited to mobile phone. The main reason that mobile banking score over internet
banking is that it enables “any where banking “customers now don’t require
computer terminal to access their banking, they can now banks. When they are
waiting for their bus, during traveling or when it restaurant (Gomez,2008).

xxv
Chapter three:- Research methodology
3.1 Background of the organization
The history of in Ethiopia data back to establish of under partnership of the
government of Ethiopia and the national banking of Egypt. The bank continuous to
operate until 1931.later it was purchased by the government of Ethiopia and
remained the bank of Ethiopia .the bank operate until Italian envisions in 1936.After
victory of fascist Italy the state bank of Ethiopia was established by proclamation
issued in august 1942.altough the intension was established it as a full fledged
commercial bank after 1943 it was additional central banking duties thus the state
bank of Ethiopia provides central banking and commercial bank functions until it
was spout in 1963 to form the two bank the national bank of Ethiopian in 1963

Commercial bank of Ethiopia ad to carry on all types of banking activities to start

business and operation competing with other banks.The bank has more than 1000
branches and chattered all over the country from this around 103 branches open in
the year of 2004 Ethiopian calendar

(CBE) Wolaita Sodo branches were established in 1960s. Now the branch is
providing service to customer and it holding 60 employs. It is found nation,
nationality and people of Ethiopia, specific name of Sodo .this bank is governmental
branch of CBE .it has been providing commercial bank service that means various
type of banking service since it establishment and also (CBE) Wolaita Sodo
branches give differently service to customer such as:

 Hawalla service like foreign and local

 Saving account
 Time deposit
 Product like youth, female and children account
 Mobile banking
 IFB (internal free banking)
 ATM (visa) card

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 3.2 Research Design
The study has adapted a descriptive research design by using both qualitative and
quantities to obtained the desired result of the bank and to explore detailed
evidence about the problem. Both primary and secondary data collection procedure
was employed to achieve this goal. Questioner, interview and documents review
was used as a data gathering tools for this study.

3.3 Target Population

There are 60 total employee in the organization and the target population for this
study would be manager and employees who working in commercial bank of
Ethiopia Wolaita Sodo main branch in different department excluding security &
jointer. When security & jointers are excluding from the total population, the
employee would be 51 and the researcher planned to use these all employees as
sample size to the study.

3.3.1 Sampling technique and sampling size

3.3.2 Sampling Technique

To conduct this study the researcher was used judgmental(purposive) sampling
techniques. The reason why the researcher use this judgmental sampling technique
is because no other department was concerned(know) about marketing strategy
and the researcher would take all the respondents of each department and total
population of the study.

3.3.3 Sample size

The sample size for the study would be 51 employees who are working in different
department & possibly expected to know about marketing practice of the
organization.

3.4 Data types and sources

3.4.1 Data type
The researcher was used both primary and secondary data type. Primary data are
the original and first hand information mostly collected by the person ethnically for
any desired purpose. Secondary data are already made that are gathered
previously at for the use of other purpose with support supplementary source

xxvii
3.4.2 Sources of data
The researcher was used both primary and secondary data source to achieve the
expectation of this paper. Primary source of data would be collected from
employees, customers and managers of CBE who are working in Wolaita Sodo main
branch. Secondary data would be gathered from different sources that is from
recorded documents (that is published and non published) materials, different
books and internets. That is written by different authors regarding to marketing
strategy and its activities.

3.5 Method of data collection

In order to gather the data from relevant sources, the researcher was use various
methods of data collections such as questionnaires and interview, open and closed
ended questions was distributed to employs Of CBE and structural interview was
conducted with manager of CBE Wolaita Sodo branch.

3.6 Data analysis and presentation

The data for these particular studies analysis by using simple descriptive tools like
percentage, table, and frequencies. For the simplicity and also provide relevant
data the researcher was used tables to represent and analyze the findings. Once
necessary analysis was accomplished the presentation of the data would follows.
After analysis and present the data, findings, conclusion and recommendation were
made based up on the data gathering through questionnaire (both opened and
closed ended questions) from the respondents.

3.7 Ethical consideration

To carry out this study the researcher leased (communicate, link up) with the
employees of commercial bank of Ethiopia main branch, those the collected data
would be kept confidential from both subjects and clients’. The researcher should
not try to select only thoughts data that are consistent with his or her personal
intentions. The privacy right of research participants also must be protected and
finally the participant has the obligation to telling the truth full information or
everyone who comes else.

xxviii
 Chapter four

4.1. Data analysis & presentation

This chapter presents and analysis and interpretation of the data collected through questionnaire. Both
primary and secondary data was used as a source of information for the study. The researcher
distributed 51 questionnaires completely. Therefore the analyses of this research conducted based on
the data collected from employees through questionnaires of CBE.
4.1.2. profile of respondents

Table 4.1. Total number of questionnaire distributed, returned and unreturned to the researchers.

Questioner Number Percentage

Returned 42 82.35%

Unreturned 9 17.65%

Total distributed 51 100%

xxix
As tables shows, the questionnaire were distributed to 51 employees Of marketing department
staff members. Among these 42(83%) were find enough to fill the questionnaire properly and
returned them on time. The rest 9(18%) were failed to complete and return the questionnaire all
returned questionnaire were completed and considered the analysis.

4.2. Questionnaire analysis

Part 1 general information of respondents

Description of respondents Response

No %

1 Gender

Male 30 75%

Female 12 28.57(29%)

Total 42 100%

2 Age (year)

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 Less than 20

21-35 35 83%

36-50 7 17%

51-65

Above 65

Total 42 100%

3 Educational level No %

1-12 complete

Certificate

Diploma 6 14.28%

BA /BSC 33 78.57%

MA/MSC/MBA 3 7.14%

PHD

TOTAL 42 100%

4 Position No %

Senior manager 1 2.38%

Manager 1 2.38%

Staff 40 95.24%

Total 42 100%

5 Service year in CBE No %

Less than 1-year 6 14.29%

2-5 year 23 54.76%

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5-10year 10 23.80%

10-16 year 2 4.76%

Above 15 1 2.39%

Total 42 100%

xxxii
 General information of respondents

Part I. personal information

From the above information about 71% employees were male and the least amount 29% staff
were females. The age of majority employees were b/n 21-35 years old that accounts 83%
employees who were b/n 46-50 hears are 178% and from 51-65 years old were 0% . these
indicates that there is a potential advantage for working by young employees especially to
achieve future objective of the bank marketing strategy and young employees are more eager to
work.

When we saw, the level of education. 79% of the respondents were BA/BSC/holders and 14%
were diploma holder. Whereas 7.14% were second degree holders. Here we can conclude that all
the respondents are educated and more than diploma holder. This implies that it is a good
advantage for marketing strategy application and gives the organization a competitive advantage
because news a day banks are in highly competitive market conditions.

With respect to the position of the respondents 95.24% were fall in lower level employees and
the lowest no fall in senior managers and managers. This indicates that, it is a fact that in every
organization there are a few manager and many employees that signify a few manager plans the
activity and ordered the lower level employees of the bank to do it.

To end, the highest no of respondents 54.76% were have experienced of the company form 2-5
year. 23.80% of the respondent had 5-10 years of experience in the bank .14.29% respondents
had less than 1-years experience and the 4.76% respondents had 10-15 years if experience and
the 4.76% respondents had 10-15 years experience. And the rest 2.39% had more than 15 years
experience and the rest 2.39% had more than 15 years old experience in the CBE.

Longyears of experience shows that there is a relatively. Lower employee turn-over as a result of
reduces cost of hiring new employees and saving time as a result a CBE can achieve its objective
and can maximize its profit generally, senior marketing staff are knowledgeable about the
marketing strategy practices and activities of the company.

xxxiii
Part II. Questions Related To the Study

Table1: the company advertizing strategy

1 Best strategy of advertising media (TV, No %

(Radio, News paper) 37 88.1%

word of mouth 5 14.29%

free sampling 0 11.90%

Total 0 23.80%

The table clearly reveals that the best strategy of advertising is through media communication
(Tv. Radio, News paper) as 88.1% of the respondents replied and 11.9% responses filled that the
finest advertising strategy is word of mouth. The other method of advertising are not filling
through respondents like free sampling and internet website.

From this we can conclude that the best way of advertising means of the bank product is through
media advertisement. This media advertisement include TV-shows the facial expression, yadio-
reaches at least in all regions and newspapers

Table 2: opinion of the employees towards the company marketing mix strategies.

Banks marketing mix to evaluate Number Percentage

marketing strategy
Product 6 14.28%
Price 12 28.58%
Promotion 2 4.76%
Place
All the above 22 52.38%

xxxiv
 Total 42 100%
marketing mixes are controllable element of the banks marketing product, price, promotion
place/distribution strategy that are essential for the marketing strategy implementation as shows
in the table all employees 52.38% responded the banks all the 4ps of marketing mix elements.

Table 3 employee response in relation to the effective marketing strategy.

The banks effective marketing Number %

strategy
Strongly agree 19 45.24%
Agree 23 54.76%
Undecided
Disagree
Strongly disagree
Total 32 100%
it is clear that the table shows, the majority of respondents (54.76%) who said agree and
(45.24%) respondents that are answering by saying strongly agree. To perform their duties
effectively the rest of the three like undecided disagree and strongly disagree are proffered to un
responded and undecided to give answers. This implies that the employee can perform the
marketing strategy effectively hence the marketing strategy are the means by which the
marketing objective will be achieved the Employee and manager of the marketing department
are genuinely performing their duties to achieve the banks objective. Generally they are also
committed for their individual and team works properly.

Table 4 employee response in relation to the providing modern service

Is there modern services that CBE Number %

provides to the customer
Yes 42 100%

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 No 0
Total 42 100%
When we saw the table above 100% of the employees says yes and there is no employees says
no. this implies that CBE has provide modern service to the customers effectively. The bank
simply provide the service like the bank account depart though saving current deposit, time
deposit account. Teller system. ATM (Visa) card, mobile banking Electronic fund transfer and
internet banking etc. to satisfy customers.

Table 5 employee response in relation to the service that CBE wolaita sodo main branch
gives to the customer

If it is yes what are the service that No %

CBE give
Teller system 6 14.29%
Credit card 12 28.57%
Debit card 6 14.29%
ATM card 7 16.66%
Others 11 26.19%
Total 42 100%
From the above table we saw, 28.57% of the respondents are said se be credit card and 14.29%
respondents were responds by prefering teller system and debit card in addition to this, 16.66%
of the respondents were giving their answer by saving. ATM card this all implies that CBE of
offering modern banking service to the customers and the rest one is 26.19% were CBE is giving
form other related and additional modern technologies in order to facilitate transaction functions.

Table 6 employee response in relation to method by which clients are getting service

How does client get service No %

Saving account 27 64.28%

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 Local transfer 5 11.9%
Foreign transfer 9 21.43%
Current account 1 2.3%
Interest free deposit 0
Total 42 100%
respondents becoming clear that 64.28% of respondents were saying that customer are getting
form saving account. Whereas 21.43% of customer were form foreign transfer, 11.9% are form
local transfer respectively current account occupied 2.39% of the respondents while. Interest free
deposit has no response b/c it implies that any one where came to CBE will have their own
interest when they are depositing money and getting interest the amount money that the does
depositing (Saving).

Table 7 employee opinion in the relation of customer primary reason for buying or wanting
the bank service

Customer primary reason for No %

buying or wanting are
Quality of product 18 42.86%
Proximity of supply 1 2.39%
Lower price than other 1 2.29%
Effective promotion 7 16.66%
Customer preference 15 35.7%
Other, if any please specify 0
Total 42 100%
The table indicates that the majority of the responders said that customer primary reason for
wanting uses are 42.86% of quality of the product of the product and 35.7% are form. customer
preference where as the 16.66% of the respondents are from effective promotion. The rest 2.39%
of the response are proximity of supply and lower price than others quality of product is must
exceed from the offering itself the ultimate goal of the product quality should be delight the
customer in every way possible. Its brand, price, promotion and quality are the main drivers that

xxxvii
influence the customer decision of CBE. In addition to the product quality the customers primary
reason for using & the banks product are quality of product, customer preference , effective
promotion from the above table declarations.

Table 8: employee response in relation to the company product & quality

The bank product quality No %

Very good 25 59.53%
Good 15 35.71%
Medium 2 4.76%
Poor 0
Very poor 0
Total 42 100%
product quality must exceed form the effusing itself. As indicated in the table, all respondents
are replied the company product qualities are quite surely very good. The analysis reveals that
the company provides quality products. Furthermore, the manager also witnessed about the
company product quality 59.53% are responded by respondents by saving very good about
35.71% are responded by respondents by saving very good about 35.71% were gave through
saving good. The rest and the 3rd is medium that is 4.76% these service are affered with excellent
quality b/c in almost all stages of service transaction facility.

Table 9: employee response in relation to the company product & quality

Product availability and No %

accessibility re
Excellent 26 61.9%
Very good 11 26.19%
Good 4 9.52%
Poor 1 2.39%
Vary poor 0

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 Total 42 100%
marketing strategies services are concerned with the channels of a firm that employ to make its
goods available to the customers. As the table depicts 61.9% of the respondents said, the
availability and accessibility of the products are admirable 26.19% replied very good and 9.52%
of the respondents responded as it is good. The response implies that the service distribution
system of the banks it brilliant and determiners the products marketing presence and the
customers accessibility to the product thus product availability is so nice and customers can get
the product easily in almost everywhere.

Table 10: employee in related to the implementation of modern technology

Find of technology implement in No %

Wolaita sodo main branch
Election fund transfer 13 30.95%
Internet banking 6 14.29%
Any time any where banking 12 28.57%
Mobile banking 11 26.19%
Other 0
Total 42 100%
as indicates in the above table 30.95% of respondents were proffered electronic fund transfer .
whereas 28.57% are any time any were banking and the rest two mobile banking as well as
internet banking were 26.19% , 14.29% was responded respectively this shows that when CBE
implementing its modern technology these bank offers this and this like technologies this bank
offers this and this like technologies in addition to another’s modern transactions.

Table 11: employee opinions in relation to the performance of CBE for implementing
modern service.

Find of technology implement in No %

Wolaita sodo main branch
Excellent 19 45.24%

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 Very good 21 50.%
Medium 2 4.76%
Poor 0
Total 42 100%
This equation designed to investigate the performance of CBE for the implementation of modern
service as observed in the table 50% of the respondent responds very good 45.24% were
excellent besides this majority of percentage 4.76% were responded by the employees surely
medium. This reveals that the performance of CBE for implementing modern service are very
good as the respondent discloses on the above tables so we can say that its performance are
making well its bank marketing strategies attentively to satisfy and success its objective.

Table 12: communication effectiveness between the departments

Communication effectiveness No %
between marketing and others
Very good 22 52.38%
Good 15 35.71%
Medium 4 9.53%
Poor 0 -
Somewhat good 1 2.38%
Total 42 100%
effective communication between departments is essential to accomplish strategic objective
easily the above table shows that 52.38% of the respondents reflected that the communication
effectiveness between marketing and other department are very good. The remaining 5.71% said
it is good. And also 9.53% are the response of medium the rest one is some what good that is
2.38% this replies the marketing department of CBE has a positive relat ionship and
communication with other department this positive communication helps the department to
accomplish the marketing strategy effectively as well as solves times.

Table 13: Response of Competition On Quality and Customer Service.

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 Does CBE can take key competitors No %
Based on quality & customer service
Yes 38 90.48%
No 4 9.52%
Total 42 100%
As can be seen from the above table 90.48% of employees are said that yes and there is 9.52% of
employees are said no. the same as that the analysis implies that the banks hs providing quality
products rather than another near branched private complotter banks beside 9.52% of response is
expresses the drawback that is related to the other private (individual) banks establishment. This
table reveals that CBE overtake key compotators on quality and customers service by facilitating
or providing by widely spreading the never branch, by exercising saving couture of the society,
through establishing nearness branched network for thesociety and by promoting supporting
priority sector. through establishing nearness branched network for the society and by promoting
supporting probity sector.

Table 14: answers based on yes or no ways of disclose

It your answer is yes on what way they can No %

By establishing highly branched network 20 47.62%

By establishing highly branched network 9 21.43

Through continuous innovation in development of 42

new products

Through continuous innovation in customer service 7 16.66%

Through continuous innovation in location facility 6 14.29

condition

Total 42 100%

as can seen from the above table 47.62% of the respondents were responded by establishing
highly branched networks, 21.43% of respondents were disclosed that through continuous

xli
innovation in development of new products besides this 16.66% were through continious
innovation and the rest depicts that of 14.29% was from the continuous innovation in location
facility conditions. Form this we can conclude that by all ways CBE can achieve higher
percentage of market share. This implies that currently widely spread branches in the country
has helped the bank to control and to occupy customers properly by developing longtime
cooperation relationship to the customers.

Generally, for a long years CBE have too extensive branches and it has wide geo graphical
location coverage & it was ancient so it helps to the bank to supervise the market entirely.

15 What are the major problem encountered in implementing marketing strategy?

According to the respondents of the employees of CBE the major problem encountered in
implementing marketing strategy were geographical location, many customers, lack of resource,
utilizing traditional technique and also over inflation and unfair distribution of the society. were
among the listed one problems. Not only this but also majority of the people are illiterate so it
takes a lot of time to convince them. Besides CBE also confront more or less problems for their
services qualification is not work or connection problems according to respondents when we saw
the promotion system this system is designed or relies from the center it is not consider the
language and Culure OF the local society because of this customers may confront mischoice of
the advertisement media.

Most of the time customers are unable to understand or lack of awareness (low skill) to the
service of commercial bank of Ethiopia and becoming unconsciousness besides this emerging
new compotator private banks near to their branch networks are becoming alarming for them.
Ne of the major alarming problem of implementing marketing strategy is the establishment of
several private banks in the country and big size of government policy and budget are the
response of the respondents we working CBE.

xlii
xliii
4.3. Interview analysis

To gather more information about marketing strategy of the bank interview question were
forwarded to the marking manger of the company. Accordingly, the interview response to the
quation are depicted briefly. As follow however most interview response are presented and
analyzed in the questionnaire analysis part as a supportive response.

1. The marketing strategy offered by the company

As per the interviewee. replied, modern marketing is a complex practice that involves the
production of quality and standard products the establishment of various and efficient
distribution channels networks, popularizing the product with quality service and
delivering continuous service after distributions the marketing strategy of the company is
effectively practiced and its is customer oriented this indicate that. The bank marketing
strategy is effectively implemented by its employees to achieve its objectives because the
worker showed great commitment and dedication to keep the bank and its product
popular this strategy will effectively accomplished by improving the type, quality and
quantity of the service by discarding all outdated machines and substituted them with
modern and state of the art technologies.

The company also implementing the marketing strategy effectively by advertising the
service by erecting artistic notice beard in town, at main public squares, sight-catching
place major outlets and inlets. Public service station and an vehicles, by using modern
distribution networks to sufficiently supply and distribute teal part of the country at an
affordable & quality service.

The manager also explained that there are marketing strategy checklists which facilitate
the marketing. Strategy practice to be implemented in effectively. these are by defining
what the company is identifying the product that the company provide , identifies the
treat buyers /end users determine whether the company will be a market category leader,
flower, challenger, or niche player and describe the unique characteristics of the product
that distains time form the competition.

xliv
2. Types of modern service provided by commercial bank of Ethiopia
The modern bank provides their customers with variety of new faculties in additions to
the their traditional functions some of the additional facilities that are teller system debit
card, credit card, ATM card saving account, comment account. Interest free deposit,
hawalla service when we see hawalla like local transfer and foreign transfer.

Teller system:- a large number of customer come to the bank for different purposes such
as deposit of money , s making draft and encasing of cheques. Traveling cashes and gift
cheques such find of transactional were waiting a critical problem in a big branch of bank
one of the most important method of reducing such kind of time killing transactional will
be implemented through by utilizing teller system’s

One of the most important advantage of this system is that the customer who come to the
bank for depositing or with drawing or transferring money those system facilities or do
not allow kill their time do not wait for a long period of time.

Debit card: Today credit card and debit card (which may be called plastic money) are
more in vague carring a lot of cash is cumbersome and risky credit card or ATM card is
the smart solution to such problems. It is convenient and safe altervative forwarding cash.
The developing and the developed countries have more and more popular in these
countries. Debit card is more advanced than. ATM card and credit card a credit card is
pay latter product where as a debit card is a pay new product.

ATM card: another important modern technology which is gaining popularity is the sue
of automated teller machine. (ATM) in the banking system .ATM enable the bank to
provide fast service in terms of accessibility to cash 24 hours a day. Seen a weekend and
holiday. Thy provide as a privacy in the transaction this card would contain some
important data such as the name of the card holder, bank cede , personal identification
no(PIN)

xlv
 Hawalla: this service is also important in the transfer of many from abroad country in to
the cosmetic country two kinds of services are give to the customer that is domestic &
foreign transacting product.

3. The promotional tools that the company use

Promotional strategy are concerned with the planning, implementing and control of
persuasive communication with customers. Modern marketing calls for more than
developing a good product, pricing. It affirmatively and make it accessible . emptiness
must also communicate with presents and potential stake holder as well as general public.
Foremost companies the equation is not whether to communicate but nether white say, to
whom, and how often. each promotional tool has its own unique characteristics and costs.
These strategies may be designed around advertising, personal selling, sales promotion
and publicity.
(i) Advertising:- is any paid form of non-personal presentation and promotion of ideas,
goods, or services by an identified sponsor advertizing can be reach geographically
dispersed buyers efficiency certain forms of advertising /TV advertising/ typically
require a large budget, whereas other forms (now paper advertising) can be done on a
small budget.
(ii) sales promotion strategy: is a key ingredient in many marketing camleaigns ,
consist of a diverse collection of incentive tools, mostly shorter ,designed to stimulate
trial or quicker or greater service of particular product or service by consumers or the
trade whereas advertising forts area son to buy, sales promotion offer an incentive to
buy sales pro9mition include tools to consumer promotion (Sample, coupons, cash
retuned offer prices off, premium, prizes, patronage reward, ferial, mementoes, and
soon.
(iii) Public relation:- a public is any group that has an actual or potential interest in or
impact on accompany ability to achieve its objective public relation involves a variety
of programs that are designed to promote or protect a company’s image or its
individual product. Theis company takes concrete steps to manage success full
relation with its key publics.

xlvi
 (iv)Personal selling: personal selling is a key element in promotion one of the four ps in
the marketing mixes personal selling has three distinctive qualities like personal
confrontation, cultivation and response.

4. Regarding the competitors and the marketing strategies designed to win the
competitors.
Currently, there are a number of competitors in the market such as private banks like Dashn
Bank, Buna bank, Wegagen Bank, Lion Bank Oromiya international, Abay , Brihan Bank are
the compotators of the bank. Not only this but also various has exited. This implies that there is
an intensive competition in the market the Ethiopian commercial bank of Ethiopia is dong better
than its competitors.

For example: beyond delivering quality of service and selecting best rartner. CBE marketing
strategy focuses on implementing an efficient distribution network along with creative and
innovative marketing. It gives a special attention in training and upgrading the skill and
competence of employees and termers commercial bank of Ethiopia had getting various
competitive advantages from other private banks though how to get customers how to become
profitable how to be preferable , and how to enlarge its branches to domestic and a bread
counties to success its companies objective.

5. The role of advertisement in the promotional comparing

Very banks have too many goals which they want to achieve. These pelas are for accomplishing
the objective this objective is will e accomplished through using advertizing and medias in order
to beat complotters advertisement is any paid form of non-personal presentation and promotion
of ideas goods or services by an identified sponsor advertising can reach geographically
dispersed buyers effectively, certain forms of advertizing (TV advertising) typically require a
large budget , where as other forms (news paper advertising) can be done on a small budget.

In developing an advertising program successful firm start by identifying the target market and
butters motives then they can make five critical decisions known as the five ms mission , what
xlvii
are the advertising objective? Money how much can be spent? Message what message should be
spent? Media what media should be used measurement how should the results is evaluated? So
advertisement used to separate customers from the other compotators where as advertisement
conceive customers and change the attitude of the customers it is important to introduce
(advertize) any product when any company innovate the new product or technology or new think
of minds.

6. Future plan of commercial bank of Ethiopia

The banks overall marketing business strategy is not limited to the specific strategy according to
the manager of commercial bank of Ethiopia as a future plan it is already on the way to expand
its branches to 2000 by 2020 . the banks market in Ethiopia is expanding days to day.
Commercial bank of Ethiopia want becoming one of the influential banks in the Africa by
analyzing the internal ,external and swat analysis. the bank will design its business strategy as:

Differentiation: by making the product unique to the customer and making attractive to pay
premium price, leadership.

service Leadership:- the company provide the product in quality service than compotators.
Large portion of RPD budget is directed towards process oriented intended to make the product
easier and quality to produce and focus strategy this shows that once quality service is produced
it will not have any problem to distribute if to the customers commercial bank of Ethiopia
intends to expand its branch and its customer coverage and geographical territory by distributing
quality product through direct and indirect channels for the future.

xlviii
 Chapter five

Conclusion and recommendation

The main conclusion of the study in relation to each of the marketing strategy elements and the
associated follw-up actions considered to be needed are given below.

Marketing strategy are the means by which the marketing objective will be achieved the
employee and managers of the marketing department are genuinely performing their duties to
achieve the company objective the smooth communication flow between marketing and other
department are the main important issue for the success of the works commercial bank of
Ethiopia employees each of the marketing strategy elements to achieve its objective. Those
elements are selections of target customers and marketing mix strategy elements.

Commercial bank of Ethiopia only banking in Ethiopia which for many years did not have any
competitive banks during the past for along period of time but now the current economy policy
of Ethiopian has make situations finable for the new enters in the banking sector making it
important for CBE to analyze its strength and its bank marketing strategy are weakness.

When we saw the service of CBE wolaita sodo main branch were good as compare with other
competitive banks and their services were not enough because in the current time the modern
world wide banking was provided variety of services to the client like teller system, debit card,
ATM card, credit card, and the bank also provide fast and consistently high quality service and
still computerized.

Commercial bank of Ethiopia exploits all the &4 ps of marketing mix elements to achieve its
target these marketing mix elements are product strategy price, promotion and place distribution
strategy . these are vital to implement the marketing strategy effectively inseparable because
each mix affects the other. Therefore, all the mixes are essential for the company to achieve its
customer requirements. Besides the bank gives a high emphasis for quality by objecting a big
share of the market quality service is the key to the company sources and to maximizing its
profits.

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Promotion strategy is also on essential tool for the practice of marketing strategy of the
commercial bank.

The bank premedical tools are advertising, personal selling, sales promotion and public venation.
Most of the time CBE promotes its products by means of advertisement.

The commercial bank promotional mix strategies create a good image for the customer service
and gained popularity as the company perspectives of quality service. The bats ways of
advertising means of the company is media advertisement this media advertisement includes JV,
vision new paper, pampers, and magazines. Word of mouth.

When we sow commercial bank of Ethiopia customers are preferring this bank because of buying
or wanting quality of product ,customer preference, effective promotion, proximity of supply and
fast service than its other private compotators.

Distribution strategy are concerned with the channels of a bank that employ to make its services
available to the customer the distribution system of the company is brilliant and determined the
services marketing presence and the customers accessibility to the service. Thus, products
availability is so nice and customers can get the product almost everywhere branches and this
banks have different contact with various root under its chains.

Even though the marketing strategies of the company are effective. There are same problems that
the company faced, these are, geographical location, lack of resource illiteracy of the people
(customers), vitalizing traditional technology and also over inflation & unfair distribution of the
jacket, qualification /connection problems, misunderstanding of the customers for the service of
CBE, the establishment of several private banks and when we saw the promotion system this is
only designed or relies form the center its is not consider the language and culture of the local
society.

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 Recommendation

Even though the marketing strategy of commercial bank of Ethiopia is practiced effectively by
employees and managers, it has some problems therefore, the study recommended the following
points based on the analysis.

 A bank, whether it is private, or government, business or non-business need to have a

mission, vision. Statement or reason for being come into existence however commercial
bank of Ethiopia were not have these statement. There for the bank should develop,
consider, relies on, and put its mission, vision and value statement for all staff members
since the statement are a frame for the marketing strategy activities to be achieved in the
long run.
 It is well known that CBE has long years experience in the banking sector, but there was
the delay in the implementation of planed computerization program as well as the
implementation of modern service and technology of banking like teller system, debit
card, credit card, ATM card or internet baking, mobile banking, elective fund transfer,
and only where any time banking has to be implemented in order to aft end higher
efficiency and mountain good image through purchasing and implementing SMAR bank
software or soft ware solution.
 The availability of high valued customer is one of the most important CBES marketing
advantage over the private banks because the majority of the bank revenue and resource
are obtained from the a small portion of customers i.e (high value customers) so the bank
should work hand on this segment and providing special service with computerized, fast
and consistently high quality service because of this switching cost to competitive bank is
high.

 Marketing mix analysis has the dignity to help the banks to implement the right
marketing strategy to satisfy and pentane the banks customer gropes which is phrased as

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 treat market. Therefore the bank should constantly alter the sub-elements of each
marketing mix to successfully compete with its competitors and offer the greatest value
to its customers
 When we saw the performance of CBE for implementing modern service employees
mare give responded 50% & 45.24% very good, excellent respectively, but some
respondents were responded about 4.76% are medium so this shows that there is the
problem of performance implementing the demand of customers requirements and to
story a head other competitors.

 What makes the most economic sense, what makes the most customer sense, and what
makes the most common sense and constitute the highest and best use of marketing
strategy is to simply let includes all the parameter of the population. This means that the
target customer of the bank its all customers who lives on the country and not prohibited
by the religions but the employees of CBE are not flexible to save the customers problem
& takes a lot of item their times not only this but also the bank encounter problems “no
service” when we see the ATM machine. They were not repair its machine fast its
machine stands only puppet and its visa were not durable it is simply brittle deigned give
service once again.
 CBE should be implemented modern service of the bank technologies are also create
awareness through promotion by using news paper, video, TV, pamphlet and word of
mouth to the custome4s to know about the bank and importance of the bank modern
service technology.
 Finally, CBE should continuously keep watching what does competitors are doing in
order to ovoid their mistakes as well as to learn from their better ways of doing things

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REFERENCE

Clifford Gomez,(2008) financial market and financial service,new delhi,practice hall.inc

Chuck Williams,(2005)management,2ndedition,irwinmc,graw,USA,washington

Delis,fennethw,(1985),marketing management,new York,wiley

Kottler Philip,(1984),marketing management analysis planning and control 15”th edition,new

jersy,prentice hall inc

Kottler Philip,(1996),principle of marketing,11thedition ,printice hall,Europe,miffin pupllishing

Kottler Philip,(1998),principle of marketing,12thedition,prentice hall,europe,newjersey

Lancaster,A (2004),encyclopedia of strategic management,Lancaster,England,cloth,crest publishing

house

Malcolm mc Donald and jalldunber,(2007),marketing segmentation,europe,great britain

Paul fifield,(1994),marketing strategy,5thedition,linacra house,Jordan hall,oxford

Ranch hold A and gurauc,(2007),marketing strategy,A contemporary approach,2 ndedition,prentice hall

Littler and Wilson,(1995),marketing strategy, 1stedition ,oxford,London,bosten

Subhash c jain,(1993),marketing planning&strategy,4thedition,USA,verginea

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 Wolaita Sodo University

Faculty of Business and Economics

FirstDegree Program

Questionnaires to be filled by employees of the marketing department in commercial bank of

Ethiopia

Dear respondents

The purpose of this questionnaire is to enable me to carry out a research for partial fulfillment of
the requirement for the degree of bachelor of art management the research focus on commercial
bank of Ethiopia with the topic of “Assessment of marketing strategy.”A marketing strategy
questionnaire are tools used to collect data from people regarding marketing, hence together
information. I kindly seek your assistance in respond ending to the question listed below, any
information you present will be kept utterly confidential and will be used only for academic
purpose. Your cooperation and from will be highly appreciated.

N.B, Writing your name is not necessary you can give more than one answer put”x” for your
choice I the box provided

Thank you in advance

Part I:- personal information

1.Gender Male Female

2.Age in years under 20 21-35 36-50 51-65 over 65

3.Education level 1-12 complete Certificate Diploma

BA/BSc MA/MSc/MBA PHD others (if any)_____________

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4.Possition Senior manager managers staff

5. How long have you been employee of commercial bank of Ethiopia?

Less than one year Tow to five years Five to ten years

Ten to fifteen years More than fifteen years

Part II:Questions related to the study

1 What would you suggest as the best strategy of advertising the company service or product ?

Media/news papers, radio, TV word of mouth free sampling

2.What marketing mix strategies does the commercial bank use?

Product promotion price distribution all of the above

3.I can perform the marketing strategy of the bank effectively.

Strongly agree agree undecided Disagree strongly disagree

4.Does commercial bank of Ethiopia provide modern bank service to the customers?

A/ Yes B.No

5.your answer is yes what are the service of CBE Wolaita sodo main branch give to the
customers?

Teller system Credit card Debit card ATm card other

6.How does clients get service provided from specified technology that CBE utilize.

Saving account local transfer foreign transfer

current account Interest free deposit

7.what do you think the customers primary reason for buying or wanting to the bank predict?

Quality of predict proximity of supply lower price than others

Effective promotion customer preference other (if any please specify)_________

8.What is your opinion about the service quality ?

Very good good medium poor very poor

9.The banks service availability and accessibility are?

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 Excellent very good good fair poor

10.what kind of technology implement in wolaita sodo main branch?

Electronic fund transfer internet banking Any time any where banking

Mobile banking other please specify

11. How do you see the performance of CBE for implementing of modern service of bank?

Excellent very good medium poor

12.How would you rate the communication effectiveness between corporate sales and
marketing department to their department?

Very good good medium poor somewhat good

13.Does CBE can over take key competitors an quality and customer service?

Yes No

14.If your answer is yes on what way they can ?

By establishing highly branched network

Through continuo’s innovation in development new predict

Through continuous innovation in customer service

Through continuous innovation in location facility condition

15.What are the major problems encountered in implementing marketing strategies?

______________________________________________________________________________
______________________________________________________________________________

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 Wolaita Sodo University

Faculty of Business and Economics

Degree Program

Interview questions with marketing manger of CBE

Dear respondent:

The purpose of these interview questions is to enable some carry out a research for the partial
fulfillment of degree program in management the research focus on CBE with the topic of
“Assessment of marketing strategy”. A marketing strategy interview questions one tools used to
collect data from people regarding marketing hence together information 1 kindly seek your
assistance in responding to the questions lists below any information you present will be keep
utterly confidential and will be use only for academic purpose your cooperation and prompt
response will be highly appreciates.

Thank you in advance?

1.What are the marketing strategy offered by the comport?

2.What type of modern service provided by CBE?

3. What promotional tools do the company use

4. Is there any competition? Where your compotator? What are your major competitive
advantage?

5.what is the role of advertisement in the promotional comparing? When is the best time to
advertise your product?

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6. What is your future plan to expand your product or to increase your market share?

7. What are the problem you encountered in implementing the marking strategy?

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