Abstract:
This research explores the advertising practices and associated challenges faced by the
Cooperative Bank of Oromia (CBO). The first objective of the study is to describe the specific
advertising strategies employed by the bank, while the second objective focuses on assessing the
challenges it encounters in its advertising endeavours.
The study gathered data from 32 respondents, all of whom completed a detailed questionnaire,
resulting in a 100% response rate. The demographic breakdown of respondents revealed a
predominance of male employees (71.9%), with the majority falling in the 26–35 age groups
(77%). The educational background of respondents was largely university-level, with over half
possessing a bachelor's degree. In terms of work experience, most employees had between 4-10
years of service, which indicates a well-experienced sample group. Data analysis, through both
descriptive and statistical methods, reveals key insights into CBO’s advertising strategies. The
bank employs a mix of traditional and modern media channels, including print, radio, TV, digital
media, and social media, to target its audience effectively. A large majority of respondents
(68.8%) strongly agreed that CBO strategically uses multiple media channels. The primary
objective of these advertising campaigns is to attract new customers and enhance customer
loyalty, a goal strongly endorsed by 96.9% of the respondents. Additionally, respondents agreed
that CBO’s advertisements are clear, consistent, and tailored to specific customer segments,
further contributing to the bank’s competitive edge. Despite these strengths, several challenges
were identified. External challenges include competition from other banks, changing customer
preferences, and regulatory restrictions, all of which hinder the effectiveness of advertising
efforts. Internally, budget constraints, insufficient skilled manpower, and organizational structure
issues were recognized as significant obstacles. Notably, a substantial portion of respondents
indicated that these internal challenges had a greater impact on the bank’s advertising practices
than external factors.
The study also highlights the role of modern technologies in CBO’s advertising, with over 80% of
respondents agreed that the bank utilizes the latest digital marketing tools. However, there are
concerns about the bank’s ability to keep pace with technological advancements and its use of
customer data analytics to optimize advertising strategies. These areas require further attention to
ensure that CBO’s advertising practices remain effective and competitive.
In conclusion, while the Cooperative Bank of Oromia has developed robust advertising practices
leveraging both traditional and modern media, it faces significant internal and external
challenges. The study suggests that addressing these challenges and improving technological
capabilities will enhance the bank’s advertising effectiveness, ultimately supporting its goals of
customer acquisition and retention.
