Assessing the Effectiveness of Marketing Strategy in the Case of Bank of Abyssinia

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Date

2016-05

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Addis Ababa University

Abstract

When it comes to marketing strategies, most people spontaneously think about the 4P (Product, Price, Place, and Promotion). Market segmentation and the identification of target markets, however, are an important element of each marketing strategy. These are the basis for determining any particular marketing mix and the corresponding financial performance of any firm. In line with this, a number of empirical researches identified profound relationship among the company efforts paid to marketing strategy and the overall business performance, both market and financial. Based on this, the researcher undertook an assessment on the effectiveness of the marketing strategy with the objective to identify the relationship among the dependent & independent variables. The case study was Bank of Abyssinia. From the literature, three determinant factors are identifies for the first model and four ones the second model. Each variable is measured using 5-point Likert-scale. With the objective to answer the research questions, questionnaires were administered to target respondents of employees of the Bank that directly involved in formulating & implementing of the marketing strategy. The data were analyzed using SPSS version 20. The findings of this study revealed that the variation contributed by the three elements of the marketing strategy (i.e., segmentation, targeting & positioning) against the effectiveness of the marketing program is significantly large. Besides, four components of the marketing program (i.e., product, price, promotion & place strategy) played a considerable contribution towards the financial performance of the Bank. Finally, the finding showed that the bank considerations to the basic elements of the marketing strategy in the form of market segmentation, targeting and positioning as a strategic tools is not satisfactory rather it is moderate or average level of consideration is paid towards theses major elements of the marketing strategy. Further the researcher concluded that this yields an average or moderate marketing program and financial performance at end

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Keywords

marketing mix, Market segmentation, marketing strategy

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