"Analysis of Advertising Practices and Challenges: A Case of Four Branches of Cooperative Bank of Oromia (CBO), West Shoa, Oromia, Ethiopia‘‘

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.