ASSESSMENT OF ADVERTIZING PRACTICE ON PROFITABILITY (IN THE CASE OF

COMMERCIAL BANK OF ETHIOPIA IN NEWLAND BRANCH)

COLLEGE OF BUSSINESE AND ECONOMICS

DEPARTMENT OF MARKATING MANAGEMENT

A RESEARCH PROPOSAL SUBMITTED TO DEPARTMENT OF

MARKETING MANAGEMENT FOR THE PARTIAL FULLFILLMENT OF THE
REQUIRMENTS FOR THE BACHLOR OF ARTS (BA) DEGREE IN MARKETING
MANAGEMENT
PREPARED BY: GROUP FOUR (4)
SUBMITTED BY:
NO NAME ID
1. ABIRHAM MEHARI …………….4211
2. HAILYE MULUGETA …………….4550
3. WUDNESH GETNET ……………....413
4. YALEMWORK LEYKUN………….6485
5. NHIAL THOUL …………………….0282
6. BOUTH LUAL …………………....…9656
7. BIRTUKAN BOBE ………………….4446
8. RIBIKA ABATE ………………….…5646

SUBMITTED TO: SHEGAW MEKIE(MA)

SUBMISSION DATE: JUNE 2024
GAMBELLA, ETHIOPIA
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Table Of Contents
Chapter One 5

1.Introduction 5

1.1 Background Of the Study 5

1.2 Statement Of the Problem 5

1.3 Research Objective 6

1.3.1 General Objective 6

1.3.2 Specific Objective 6

1.4 Re
search Questions 6

1.5 Sc
ope Of the Study 7

1.6 Significance Of the Study 7

1.7 O
rganization Of the Paper 7
Chapter Two 8
2.Review Of Related Literature 8

2 1. Advertisement 8

2 2. Definition Of Advertising 8

2.3 Cla
ssification Of Advertising 9

2.4 Ad
vertising For Business and Professional Buyers 10

2 4.1 Business to Business Advertising 10

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 2.4 2. Personal Advertising 10

2 5. Roles Of Advertising 10

2.6. Ethics Of Advertising 11

2.7 Eco
nomic, Social and Ethical Implication of Advertising 12

2.8 Attit
udes 12

2 8.1 Key Function of Attitude to Individual 13

2 8.2 Attitude Towards the Advertisement 13

2.8 3.
Understanding Consumer Attitude Toward Advertising 14

2.9 Why We Study Consumer Behavior 14

2.9 1. Consumer Decision Making 15

2.9 2. Factors That Influence Consumer Decision Making 16

Chapter Three 18

3.Research Methodology and Design 18

3.1 Rese
arch Method 18

3.2 Rese
arch Design 18

3.3 Targ
et Population 18

3.4 Sam
pling Technique and Sampling Size 18

3.5 Data
Type and Source 19

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 3.6 Tim
e Frame and Budget Schedule 21

3.7 Refe
rence 22

Abstract
The assessment of advertising on profitability at the commercial bank of Ethiopia
new land branch revealed a significant impact on financial performance. through
targeted marketing campaigns, the branch experienced a notable increase in customer
acquisition and retention rates. This resulted in a boost in overall revenue and a
positive impact on the branch’s bottom line.
Furthermore, the analysis indicated this strategic advertising efforts noy only attracted
new customers but also encouraged existing clients to engage more frequently with the
banks services.by promoting specific products and services effectively, the branch was
able to capitalize on cross-selling opportunities and enhance its overall profitability.
Overall, the findings suggest that investing in tailored advertising strategies can yield
substantial benefits for the commercial bank of Ethiopia’s new land branch.by
leveraging marketing initiatives to reach and engage with the target audience

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effectively, the branch was able to drive growth, increase market share, and ultimately
improve its financial performance

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 CHAPTER ONE
1. INTRODUCTIAON

1.1. Background of the study

Advertising is any paid form because of companies incurs a direct expense to
the media for the message to be sent out and it is a non- personal
communication. The means the advertising involves mass media (TV, radio,
magazines, newspaper) that can transmit message to large groups of
individuals, often at the same (Kotler, 2005).

Advertising plays a great role in company product and marketing goals

established by the firm. For product and companies’ advertisement the
central focuses then other promotional mix elements. In other situation
advertising supports a national sales force and trade promotion programs
Advertising like a message in integrated marketing communication is meant
to turn consumers mind towards the advertised brand it has the power to
raising awareness for the brand among the target audience. And it builds
positive attitude towards the brand. Effective advertising will successfully the
brand in memory as satisfying an appropriate need and raises motivation to
buy. Advertising was positioning the brand with in its category, uniquely
differentiating it from Competitors on benefits important to consumers thus,
in its turn, would lead to strong brand equity (George, 2005).

A success in adverting depends on the nature of message and the medium

use to transmit message. Marketers must understand the meaning that
words and symbols take and how to influence customer interpretation of
message (Kotler, 1999).

1.2. STATEMENT OF THE PROBLEM

In dealing with its advertising practice plays important role in profitability of
the

organization with other companies that do not advertise their sales and profits
might be attracted with other companies that do advertise a large number of
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prospects at a low cost per person and allow the message repeat and improve
public image and it allow the company dramatization which captures customer
attention. Therefore, advertisement should give a great attention for their
objective budget, message and media use for their advertising to establish
successful and effective advertising. In Ethiopia the expansion of advertising is
a recent phenomenon. As a result, most of the people are live in the
rural area. By this case advertising is limited by television, newspaper,
magazine and radio.

Commercial bank of Ethiopia is the organization which gives service to

generate profit. But the organization used for advertisement television,
magazine, and radio.

Redundancy of information exaggeration of message and limitedness of

adverting practice are also problems of the organization advertising agency
(MA Michael. A, 2005).

1.3 RESEARCH OBJECTIVE

1.3.1 GENERAL OBJECTIVE
The general objective of the study will be to understand the assessment of
advertising practice on profitability (A case of CBE in Newland Branch).

1.3.2 SPECIFIC OBJECTIVE

 To identify effective media type for company advertising.
 To examine advertising budget the company uses.
 To assess either the company profitable or not.
 To identify possible for the problem of the company.
1.4. RESEARCH QUESTION
1.What type of media does organization use for advertising?
2.How the organization sets its advertising budget?
3.What measures you were taken to eradicate the problem of the
organization?

4.Is the organization profitable?

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1.5. SCOPE OF THE STUDY
Now a days different enterprise might use different ways of attracting
customers. One of these methods used for promotional tools promotional mix
which includes advertising, personal selling, publicity and direct advertising and
marketing due to monetary and the time constraints, the study will be confined
the assessment of advertisement on profitability of CBE (in case of Newland
Branch)

1.6. SIGNIFICANCE OF THE STUDY

The study will once carry on the evaluation of marketing on profitability of
CBE and up on the completion of the study. The records received from the
find out will help the organization to improve advantageous advertising and
marketing program and to understand customer behavior so as to provide
service accordingly.

 It will possibly enable the researcher educated about the future work.
 The study will provide direction to those who want to be early out
future study on the problem area of the organization in the future
The learn about some suggestion that also indicate the present problem.
1.7. ORGANIZATION OF THE PAPER
The paper will once be categorized into five chapters. The first chapter
include background of the study, statement of the problem, objective of the
study, and significance of the study. The second chapter deals with review of
related literature. The third chapter consists of research design and
methodology. The fourth chapter presents data analysis and interpretation.
And the last chapter contains summary, conclusion and recommendation of
the study. Finally, questionnaires and interview checklist are attached to the
study.

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 CHAPTER 2
REVIEW OF RELATED LITREATURE
2.1. ADVERTISEMENT
BACKGROUND OF ADVERTISEMENT
Advertising is an incapable part of our everyday lives no matter where we
advertising are with us educating us to buy new product and service implies
us to stop some activities such as drug use and encouraging us to support
some worthy cause or political candidates. Advertising is an integral part of
our economic system and has a direct relationship with the manufacture
distribution marketing and sales of goods and services. Advertising is as old
colonization and commerce; it has always been necessary to bring buyer and
seller together (Russel and Lone)

Advertising ethics because

 It is a part of our communication system
 It advises people of the availability of goods and services
 It provides information to assist in making informed decision
 Its advices people of your rights and obligation citizens
In its various forms, guides direct, persuade and worms as about a myriad of
things we consider in our daily life.
from Latin word advertise, means “to turn the mind though’’(Belch,2007).
2.2. DEFNITION OF ADVERTISING
Advertising is defined as any paid form of non-personal communication about
the organization, product, service or idea by an identified sponsor. The paid
aspect of this definition reflects the fact that the space of time for an
advertising message quantity must be bought (e.g.TV, radio, magazine,
newspaper) that can transmit a message to large group of individuals. Often
at the same time (Belch, 2007).

According to Russel and Lane (1993), advertising is an integral part of our

economic system and has a direct relationship with the manufacture
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 distribution, marketing and sales of goods and services. Advertising is as old
as civilization and commerce; it has always been necessary to bring buyers
and sellers together.

Norman hurt says, advertising is the action of calling something to

attention of the

public especially by paid announcement because many people think of

advertising mostly in terms of selling manufacturers consumers goods and
services.

Advertising is an agent choice of one of the most important benefits of

advertising is that it facilitates the consumer becoming active rather than
passive agent in the economic cycle.
2.3 CLASSFICATION OF ADVERTISING
Advertising to consumer market is divided in to the following
National Advertising
Advertising is done by large companies on a nationwide or most basis or
most region of the country. Most of the advertising is free well-known
companies and brand that are seen on time TV or in other major national or
regional media one example of advertising.

Advertising done by retail or local merchant to encourage consumer to shop

at a specific store. Use a local service or patronize a particular establishment.
Retail or local advertising tend to emphasis a specific, patronage motive such
as price, hours, and operation, service or atmosphere image or merchandise
assortment.

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 It is designed to stimulate demand for general class or entire industry
selective. Demand advertising focus on creating demand for a specific
company’s brand most advertising tend for product and service is can
concerned with stimulating selective demand and emphasis reasons for
purchasing a particular brand.

2.4. Advertising for business and professional buyers

2.4.1. Business to business advertising

Advertising targeted at individual who buys or influence the purchase of
industrial goods of service for their companies.
2.4.2. Personal advertising
Advertising targeted to professional doctors, lawyers, dentists, engineers or
professors to encourage then to use a company’s product and service in their
business operation. It might also be used to encourage professional to be
command or specify the use of a company’s service by users.

2.5 Roles of advertising

The primary function of advertising is to communicate marketing objective to
selected target audience. It issued to accomplish a number of tasks. Using
different media vehicles reaching diverse audiences and interest with a
number of creating approaches.
The advertising goals are based on improving communication and consumer
attitude toward a product and service. It interested to note that a survey
indicated that a majority of organization wanted to measure advertising source
organization service.

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The regulation of advertising
In relation to advertising it would be assumed that the advertisement
represents on expression of the advertiser’s self-interest and that
presumably that self-interest could be realized any if it were in line with the
self-interest of potential customer. Hence the marvelous harmony of self-
interest of the classical liberal market. To point of view the best regular for
advertising would be the natural source of market computation featuring
many deliberated and calculating companies’ employee and customer
(Williams F. Aren’s).
2.6. Ethics of advertising
A century ago, business ethics use much different from today. The same is
true of advertising the was very little concern for ethics practice before the
beginning of the 20th century by the 1930’s’ most of advertising ethical codes
had taken shape (Belch and Belch 2007). According to belch in modern
advertising the two operating ethical systems are;

1. An external system based on mandated institutional codes, guide lines,

formal regulations and organizational procedures.

2. A personal system and organizational procedures.

The first system is composed of formal bodies such as governmental and

industry regulatory guide lines, media advertising policies and agency
clearing practice. The second system is composed of individual decisions
which are made on the bases of the ethical assessment of immediate and
long run effect of individual action.

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 2.7. Economic, social and ethical implication of advertising
One of the most for criticism of advertising is that it does not promote the
societies wellbeing. The following are some of the criticisms against
advertising from social and ethical point of view;

- Ethics: - it is a moral code of an individual or group there are restriction

to the fact what is permissible in advertising. E.g. cigar ate
advertisement is considered an ethical since it is injurious to health and
also alcohol.

1. Advertising is untruth of deceptive: - one of the major complaints that

many advertise mislead is untruthful and therefore deceives the customer.
The advertiser must have sufficient backup for making a claim above the
product and service performance and sheath requires providing evidence
for support claims. Sometime the advertiser fails to avoid prizes promoted
in a contest associated with advertisers there are instance of participated
going to consumer courts.

2.Most of these unethical practices observed in advertising are through

telemarketing or mail order.

3. The most important criticism of advertisement is that advertisers

usually present only information which is favorable to their position but
not the whole truth about the product or service (SN Murthy B hojanna).
Most advertisers seldom design their message with an intention to avoid
the prizes, this practice are unethical and the organization will lose its
reputation and risks in getting prosecuted in the court. This will to rush the
brand image of the organization and is likely to use the hard-won
customer trust and confidence.
2.8. attitudes
Attitude is an ending organization of motivation, emotion, perception and
cognitive process with respect to some aspects of our environment (Leon et al)

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 It is a leaned predisposition to respond in a consistently favorable and
unfavorable manner with respect to a given object. This an attitude is the
way one thinks, feel and acts toward some aspect of his or her environment
such as retail store, television program and predict.

2.8.1 Key functions of attitude to individual

Knowledge function: - some attitudes serve primarily as a means of
organizing beliefs about object or activities such as brand and shopping.
This attitude may be accurate or inaccurate with respect to objective
reality but the attitude will often determine subsequent behavior rather
than the reality. Example a consumer attitude toward cola drinks may be
this all test the same this consumer may be likely to purchase that least
expensive or most convenient brand.

Value expensive function: - other attitude is formed and serves to express

an individual central value and self-concept. Thus, consumer who value
nature and the environmental are likely to develop attitude about product
and activities that are consistent with that value. These consumers likely
to support for environment protection initiative. For recycle and to
purchase and use green product.

Utilitarian function: -this is based on apparent conditioning people tend to

from favorable attitudes towards objects and activities that frequently
promises rewards in advertisement and conduct extensive product testing
to be sure the product is indeed rewarding.

Ego defensive function: - people use and form attitude to depend their egos
and self

–images against threat and short comings. Any given attitudes can
perform multiple functions though one may predominate marketers need
to be aware of the function that relevant to their target market (ib id)

2.8.2. Attitude towards the advertisement

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 According to Michael Solomon customers reaction towards product and
services also influenced by their evaluations of its advertising over and
above their feeling about the product service itself. Our evaluation of a
product and service can be determined by our appraisal of how it is
depicted in marketing communication.

One special type of attitude than the marketing message itself the
attitude toward the advertisement is defined as predisposition to respond
in favorable and unfavorable manner to particular advertisement stimuli
during a particular expense occasion.

Determinants of advertisement include attitude toward the advertiser the

evaluation of the advertisement execution of itself. The mode evoked by
the advertisement and the degree which the advertisement affects
viewer’s level. A viewer feeling about the context in which an
advertisement appears can also influenced brand attitudes.

2.8.3. Understanding consumer attitudes toward advertising

Researchers have for years been serving the public attitudes advertising
and have noticed no significant changes in beliefs about advertising
precisely because there is individual advertiser’s message are perceived
by consumer’s attitude toward advertising. Beyond this to the extent that
someone in the business of advertising. It is critical to understand the
markets perception of its product and service just as it is important for the
advisor attitudes toward advisors in general (ib id)
2.9. Why we study consumer behavior
Just as consumers and marketers are divers. The reason why people study
consumer behavior are also divers the failed of consumer behavior
holds great interest for a consumer as marketers and as students of
human behavior. As consumers we benefit from insights in to our own
consumption related decision what we buy, why buy, how we buy and
the promotional influenced that persuade as to by (kottler,1998). Basic
objective of the study consumers is that the firm needs to know who buys
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 their product and services. How the buy? When and where the buy? Why
buy? How they respond to marketing stimuli. Because they study
consumer behavior what is consumer behavior about? How, why where
and when consumers make purchase decisions. Consider who influences
the decisions which are to be know the companies so that they can design
and implement marketing strategies to satisfy the consumers. Consumer
behavior has two sides. On one side has the consumer on the other the
marketing manager. We can all consumers but the art of consuming is an
in
-exact activity.

The direct benefit from clear understanding of consumer behavior is that it

can make as all better and more present consumer the improvement can
result from;

1. A greater application of the complexity of decisions facing consumers.

2. A better understanding of our own motives and division process as
consumers.
3. A sounder choice of products, services, brands and stores.

2.9.1 Consumer decision making

 When consumer has no established criteria for evaluating a product
and services category have no narrowed the number of brands they will
consider to a small manageable subset their decision-making efforts
can be classifies as extensive problem solving (P. Kotler, 2005). The
term consumer decision produces some image of an individual carefully
evaluating the attributes of a set of products. Services and rationally
selecting the one that solves a clearly recognized need for the least
cost. It has a rational connotation. Consumers do make many decisions
in this manner however many other decisions involve little conscious
effort. Further many consumer decisions focus not on brand attributes
but rather on feelings or emotions associated with acquiring of using

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 the brand or with the environment in which the product is purchased or
used. consumer decision is frequently the result of a single problem.
There is various type for consumer decision process. As the consumer
moves from a very low level of involvement with the purchase to a high
level of involvement decision increasingly use. Before describing each
type of decision process, the concept of use process changes as using
involvement increase.

 Nominal decision making: - some time referred to as habitual

decision making. in effect involves no decision. Nominal decision
occurs when there is very low involvement in the in the
purchase. Nominal decision can be broken in to two categories;
brand loyal decision and repeat purchase decision.

 Limited decision making: - involves internal and limited external

search few alternatives simple decisions rule on a few
attributes. And little

purchase evaluations. Limited decision making also occurs in

response to some emotional or environmental needs. In general,
limited decision making involves recognizing a problem for
which there are several possible solutions. There is internal and
a limited amount of external search.

 Extended decision making: - involves an extensive internal and

external information search followed by a complex evaluation of
multiple alternatives and significant post purchase evaluation. It
is the response to high level of purchase involvement (in id).

2.9.2. Factors that influence consumer decision making

In terms of consumer behavior, culture, social class and reference group
influences have been related to purchase and purchase and consumption
decisions.

 Social class influence in consumer decision making; this influence can

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 have both direct and indirect effect on the buying process. By direct
influences we mean the influence of society on an individual basic
value and attitude as well as the important role that group play in
structuring an individual’s personality.

 Culture and subculture

 Social class

 Reference groups and families

 Physiological influence on consumer decision making

Product knowledge: - refers to the amount of information a consumer
has stored in her or his memory about particular product and services
class, service forms, brands, models and way to use them. Product
involvements: -refers to a consumer’s perception or the importance or
personal relevance of an item. This influence consumers decision
making in two ways;

1st if the purchase is for high involvement product consumers are likely to
develop a high degree of product knowledge so that they can be
confident that the item the

purchase is just right for them.

2nd a high degree of product and service knowledge encourages extensive
decision making by consumers which likely increase the time it takes to go
through the decision-making process (Jupiter and H. Donnelly,2004).

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 CHAPTER THREE
RESEARCH METHODOLOGY AND DESIGN

3.1. Research method

In this part the lookup format target populace, sampling technique and
samplings size, source of data, facts collection strategies and eventually
come statistics analysis and interpretation.
3.2. Research design
In relation to this study the researcher will use descriptive type of
research, the purpose of descriptive research will state of affairs as it
exists at present. Following this line the researcher will use a descriptive
research design to assess the advertising effectiveness at the target
population of organization.
3.3 Target population
The target population of the organization will be the manager, employee
and the customers of the organization. The customers are not known
because they live around different area /location and cannot been
identified thus the target population for the customers will be limited
around the organization.

3.4. Sampling technique and Sampling size

The method of sampling will be convenience sampling technique apply the
organizations customer. The main reason will be to get factual response with
the customers at the time of advertising process. And also use purposive
sampling technique for employees of the organization.
Sampling technique
The sample elements will be manager’s employee and customers of the
organization thus the researcher will take 50 respondents from the
customers. The maximum number of customers serves in a day is 60 and
during low consuming season the number of consumers serves in a day is 40.
In order to determine the size of the target population
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 the researcher will take an average number of customers i.e. 60+40/2=50
customers per day and these average daily customers are multiply by the
data collection period (in week) that will 50*7=350.
3.5. Data type and source
Primary data: - the researcher will involve a direct structure face to face
personal interview and questionnaire that are relevant for information’s to
be collected for analysis the researcher will collect that information by
interviewing the manager and
Employee of the organization. The interview for the manager and different
questionnaire will prepare to the customer of the organization.

Secondary data: -The researcher will collect secondary data to know more
about the background as well as the history of achievement in the past
year to supplement and back up the evidence. Internet, organizations
magazines, previous researches, purchasing and selling documents of the
organization will be utilized.

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3.6. Time frame and budget schedule

Table; time schedule

No Activity

Dec Jan Feb April May Jun remar

k
1 Topic selection √

Proposal Writing 
Data collection  

Submission 

of proposal

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Table; Budget schedule

No Item Quantity Duration in Unit of cost Total cost

a day per unit/birr
/Birr/
1 Copies of paper 50 _ 1.50 75

2 Printing 30 _ 2 60

3 Pen 2 _ 20 40

4 USB 1 _ 250 250

5 Paper 30 _ 1.50 45

TOTAL 470

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 3.7. Reference
 Belch, (2007) advertising and promotion, Santiago
university, 17th edition.

 Philip Kotler, (2005) principle of marketing, 11th edition, Indian

Delhi

Jupiter and H. Donnell, (2004), marketing management, 7th

edition America New York.

 MA Michael. A, (2005) marketing channel,4th edition,

America New York.

 Russell and lone, (1993) advertising prouder 14th edition,

America New York.

 SN Murthy B Hojan (2010) advertising an IMC perspective,

Indian new Delhi.

 Williams F. arenas (2002) America New

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