UNITY UNIVERSITY

FACULTY OF BUSINESS AND ECONOMICS

DEPARTMENT OF BUSINESS MANAGEMENT
POST GRADUATE PROGRAM

COURSE TITLE: MARKETING MANAGEMENT

ASSIGNMENT: GROUP ASSIGNMENT

SUBMITTED TO: - BOGALE ALEMU (Ph.D.)

SUBMITION DATE: JULY, 2022

PREPARED AND COMPILED BY: -

BETEL MEKONNIN MBA\R\0434
BETELHEM ABAYNEH MBA\R\0417
FREALEM SOLOMON MBA\R\0408
HANA TESHOME MBA\R\0416
DEMISSEW GASHAW MBA\R\0447

JULY, 2022
ADAMA, ETHIOPIA
 Marketing Management 2022
Table of Contents
1. BACKGROUND OF THE ORGANIZATION.......................................................................1

1.1. Vision, Mission and Values..............................................................................................2

1.1.1. VISION......................................................................................................................2

1.1.2. MISSION...................................................................................................................2

1.1.3. VALUES....................................................................................................................3

1.1. Strategic Goals..................................................................................................................4

1.2. Major types of Services.....................................................................................................4

1.2.1. Human Resource Development.................................................................................4

1.2.2. Technology Deployment...........................................................................................5

1.2.3. Branch and Customer Base Expansion......................................................................5

2. BODY OF THE REPORT.......................................................................................................5

2.1. Answer for Question Number 1:.......................................................................................5

2.1.1. CBE Marketing Strength...........................................................................................6

2.1.2. CBE Marketing Weaknesses.....................................................................................6

2.1.3. Marketing Strategies Available To CBE...................................................................7

2.1.4. W-O Strategies...........................................................................................................8

2.1.5. W-T Strategies...........................................................................................................8

2.1.6. CBE Distinctive Competences..................................................................................9

2.2. Answer for Question Number 2 and 4:...........................................................................10

2.2.1. Criteria used to select top competitors for CBE......................................................11

2.2.2. The Competitors......................................................................................................11

2.2.3. Distinctive competency of these top competitors cited...........................................11

2.2.4. Technology/innovation............................................................................................12

2.2.5. Competitors’ key weakness.....................................................................................12

2|Page
 Marketing Management 2022
2.2.6. Analysis on other external factors...........................................................................13

2.2.6.1. Five Key Opportunities........................................................................................13

2.2.7. Five Key Threats......................................................................................................14

2.2.8. FUTURE STRATEGIC ISSUES............................................................................15

2.2.9. Summary and Future perspective of CBE...............................................................15

2.2.10. Future perspective of CBE.......................................................................................16

2.3. Answer for Question Number 5:.....................................................................................16

2.4. Answer for Question Number 6:.....................................................................................17

2.5. Answer for Question Number 7:.....................................................................................17

2.6. Answer for Question Number 8:.....................................................................................19

2.7. Answer for Question Number 9:.....................................................................................20

2.8. Answer for Question Number 10:...................................................................................22

REFERENCE................................................................................................................................23

3|Page
 Marketing Management 2022
1. BACKGROUND OF THE ORGANIZATION
The first Ethiopian bank to open its doors was the Bank of Abyssinia. Emperor Menilik II
inaugurated the bank on February 16, 1906. Although it was the first one in the long Ethiopian
bank sequence, it was actually a branch of the National Bank of Egypt, a British bank, and totally
managed by them. An agreement had been reached between Emperor Menilik and the bank
officials to introduce modern banking to Ethiopia and it was given a number of concessions and
leeway. For example, the Bank of Abyssinia was guaranteed no competition from any Ethiopian
bank or otherwise for a concession period of 50 years. And during those fifty years it had the full
right to issue currency notes and coins. In short, it had full control on the country’s currency
exchange, both locally and internationally. Moreover, it kept all profits and was allowed to
exchange money for gold and silver freely.

But it didn’t quite work out that way. Ethiopians, being new to the banking concept didn’t
appreciate the culture of having to give one’s hard earned money to another for safekeeping. And
even when the Bank of Abyssinia had opened branches in several other Ethiopian cities, it
couldn’t make a profit until 1914 and in 1919, 1920 and from 1924 onwards because it only
increased the cost that was incurred by the bank’s administrative personnel. After staggering
along for a few more years, the Bank of Abyssinia was officially liquidated in 1931.

That same year heralded the birth of the first Ethiopian national bank, the Bank of Ethiopia. It
was established August 29, 1931 by official decree shortly after Emperor Haile Selassie’s ascent
to the throne. It became the first African bank that was truly African as it was owned and
managed by Ethiopia and Ethiopians. It took over all the activities of the Bank of Abyssinia and
was performing strongly right up to the Italian invasion in 1935. Unfortunately, very little has
been documented about this bank, and a lot needs to be done in order for this proud Ethiopian
and African history not to be forgotten. With the Italian troops came Italian banks, and with their
withdrawal in 1941 came another foreign bank, Barclays Bank, that was to cater to the British
troops that had helped liberate Ethiopia. The second Ethiopian national bank started its work on
April 15, 1945. It was called the State Bank of Ethiopia. This bank also ceased to exist as it was
deemed necessary to split the functions of the bank. The Ethiopian Monetary and Banking law
that came into force in 1963 separated the function of commercial and central banking, creating
National Bank of Ethiopia and Commercial Bank of Ethiopia. The National Bank of Ethiopia,

1|Page
 Marketing Management 2022
the country's central bank, has the regulatory and financial advisor role and the Commercial
Bank of Ethiopia handles commercial operations. [CITATION: Employees Handbook of CBE
(2016)]

Commercial Bank of Ethiopia, works to become a world-Class Commercial Bank by 2025, is the
largest bank in Ethiopia and leading East African bank with assets of 999 billion birr as of July
8th, 2021 having more than 1,700 branches stretched across the country in15 Districts. It is
pioneer to introduce modern banking to the country and Western Union Money Transfer
Services in Ethiopia early 1990s and currently working with other 20 money transfer agents like
Money Gram, Atlantic International (Bole), Xpress Money, etc. It is playing a motivational role
in the economic growth & development of the country. CBE has reliable and long-standing
relationships with more than 50 renowned internationally acclaimed banks like Commerz Bank
A.G., Royal Bank of Canada, City Bank, HSBC Bank, etc. throughout the world. Besides, CBE
has a SWIFT bilateral arrangement with more than 700 others banks across the world. Currently
CBE has more than 35 million depositors with 735 billion birr deposits and the number of
Mobile banking users reached more than 5.2 million and CBE birr customers more than 5.6
Million as of July 8th, 2021. Active ATM card holders reached more than 6.7 million. The Bank
combines a wide capital base with more than 38,000 talented and committed employees.
[CITATION: AddisBiz.com (2021)]

Commercial Bank of Ethiopia (CBE) is the biggest commercial bank in Ethiopia. As a leader in
the banking industry, it has gone through numerous reforms and expansions to address & satisfy
its customer in providing services and creating more access. As a result, for the last 8 years,
opened more than 1000 new branches locally and five branches internationally and employed
more than 36,000 employees to improve saving culture of the society, increase its accessibility
and creating banking culture society.
1.1. Vision, Mission and Values

1.1.1. VISION
To become a world-class commercial bank by the year 2025
1.1.2. MISSION
We are committed to best realize stakeholders' needs through enhanced financial intermediation
globally and supporting national development priorities by deploying highly motivated, skilled,

2|Page
 Marketing Management 2022
and disciplined employees as well as state-of-the-art technology. We strongly believe that
winning the public confidence is the basis of our success.

1.1.3. VALUES
Integrity
 We are committed to the highest ideals of honor and integrity.
 We strive to act in an honest and trustworthy manner.
 We firmly adhere to ethical principles.
Customer Satisfaction
 We strive to excel in our business and satisfy our customers.
 We are committed to offer the highest quality service to our customers and aspire to be
branded with quality in the minds of our customers and the general public.
Employee satisfaction
 We are committed to employee training and professional growth.
 We distinguish our employees as valuable organizational resources.
 We recognize our employees for their achievements.
Learning Organization
 We are committed to anticipate and respond to internal and external changes through
constant improvement and adaptation.
 We strive to establish a culture that nurtures individual and group learning
Teamwork and Collaboration:
 We recognize the importance of teamwork for our success.
 We support to one another and working co-operatively
Public Trust
 We understand that the sustainability of our business depends on our ability to maintain
and build up the public’s confidence
Value for Money
 We use resources carefully to save expense, time or effort.
 We deliver the same level of service for less cost, time or effort.
 We deliver a better service or getting a better return for the same amount of expense, time
or effort
Decentralization

3|Page
 Marketing Management 2022
 We are committed to delegate operations and decision-making responsibilities.
Corporate Citizenship

 We value the importance of our role in national development endeavor and step-up for
commitment.
 We abide by the laws of Ethiopia and other countries in which we do business.
 We care about society’s welfare and the environment.
1.1. Strategic Goals
 Ensure Sustainable Profitability
 Increase Financial Resource Mobilization
 Enhance resource allocation
 Ensure Financial Soundness
 Increase Customer Satisfaction
 Enhance customer relationship and retention
 Expand the Customer Base
 Enhance product and price diversification
 Enhance accessibility of services
 Improve process efficiency and effectiveness
 Improve Risk Management and compliance
1.2. Major types of Services
CBE services can be categorized into three broad classifications. Customer accounts, Trade
services and Credit. CBE renders customers accounts services on deposit mobilization through
savings, Certified Payment Orders (CPOs) and foreign currency accounts. Services on import
export sector include, Letter of Credit (LC), Franco Valuta, Cash Against Document (CAD),
Consignment Basis Payment, to list a few. The credit products are tailored to fit existing and /or
future demands of the economy and its customers.
1.2.1. Human Resource Development
Despite the challenges of COVID-19 pandemic, CBE continued enhancing the size and quality
of its workforce during the 2019/20 FY in order to better meet the needs of stakeholders and
achieve its vision. Some 359 permanent employees joined the bank, making the total number
37,552. As usual, the bank organized and conducted various training programs to develop the

4|Page
 Marketing Management 2022
capacity of its staff. Consequently, 35,746 employees attended technical training programs, and
4,242 received developmental training, while 596 employees attended ethics training programs.
Like the number of new employees, the number of trainees was a bit below target due to the
pandemic prevention measures taken by the bank.
1.2.2. Technology Deployment
Continuing its digitalization endeavors during the 2019/20 FY, CBE increased its accessibility
through newly deployed 567 ATMs and 182 POS machines that made the total number of the
machines 3,072 and 3,581, respectively. The bank distributed about 2.7 million new cards to
customers and raised the total number of active cardholders to 5.6 million. It also managed to
increase the number of mobile banking users to about 4.6 million. As a result, transactions
carried out through digital channels (except POS transactions) expanded significantly during the
FY considered. About 163 million transactions worth Birr 198.5 billion were carried out through
digital channels, mainly ATMs. This represented 37% of the bank’s total transaction volume that
could have been mediated with teller services. The number of transactions via digital channels
grew significantly as customers happened to prefer contactless services to prevent infection with
the COVID-19 virus.
1.2.3. Branch and Customer Base Expansion
In the 2019/20 FY, the total number of CBE branches reached 1,604 as 160 new branches,
including 56 dedicated to CBE NOOR services and one to Diaspora services, were opened. This
enhanced the accessibility of the bank and contributed significantly to the financial inclusion
endeavor of the country. Besides, its number of customers increased by 3.4 million, partly due to
newly opened branches. Thus the total number of CBE’s customers rose to 25 million. The wide
branch network and customer base continued to help CBE maintain its all-round leadership
position in the banking industry. The bank had market shares of 27%, 57%, and 59% in branch
network, deposit, and asset parameters, respectively. CBE has continued striving to maintain and
even strengthen this position.
2. BODY OF THE REPORT
2.1. Answer for Question Number 1:
For your organization or an organization of your choice:
a. Identify a number of relevant marketing strength and weaknesses.

5|Page
 Marketing Management 2022
b. Interpret these by asking what these strength / weaknesses suggest about the
marketing strategies available to the organization?
SWOT Analysis for CBE
A SWOT analysis is a strategic balance sheet of an organization; that is the strengths of the
organization, the weaknesses of the organization, the opportunities facing the organization, and
the threats facing the organization. It is one of the cornerstone analytical tools to help an
organization develop a preferred future. It is one of the time-tested tools that have the capacity to
enable an organization to understand itself, to respond effectively to changes in the environment.
The purpose of the SWOT analysis is to provide information on strengths and weaknesses in
relation to the opportunities and threats. In order to get the marketing strength and weaknesses
and strategies available to the CBE SWOT analysis were made and results are presented as
follows:-
2.1.1. CBE Marketing Strength
 Brand image & Recognition: Public confidence
 Size of the company: Large branch network and growing number of technology outlets,
 Employee’s righteous attitude towards the banks role in financial resource mobilization
 Heritage/Reputation built: Large customer base (deposit accounts) and very strong
market position,
 Large investment in technology and rapid connectivity among bank branches,
 Large asset base staff strength and progress in asset quality of the bank, and
 Established processes, procedures and systems
 Good working environment.
 Location & convenience
2.1.2. CBE Marketing Weaknesses
 Inconsistent customer service quality,
 Low employee engagement level
 Employee competence gap,
 Inadequate internal and external communication system
 Limited banking products,
 The organizational structure of the bank didn't commensurately go with the bank's fast
growth

6|Page
 Marketing Management 2022
 Poor technological innovation and differentiation
 Service Failures and delay
 Low market research activities
 Employee turnover
 Bureaucratic nature to get a loan
Opportunities Available for Banking Sector
1) Economy growth
 The Ethiopian economy registered a 6.1% growth in the 2019/20 FY, dropping by 3
percentage points from that of 2018/19 FY. This was because of the economic shock
from the corona virus pandemic in the second half of the year. But, the total growth was
attributed to the 9.6% growth in industrial output, 5.3% increase in the service sector,
and 4.3% expansion in agriculture. The nation’s GDP per capita reached USD 1,080
during the FY.
 Generally, the economy, which was in good position until the 8th month of the FY,
suffered from the direct and indirect impacts of the pandemic in the remaining months
of the FY.
 Positive growth of the economy can be an opportunity for growth for the bank sector in
Ethiopia.
2) Focus on Technology
 Technology helps in introducing innovative products according to the demand of
consumers.
 It can be used to lower down the cost of transaction & improve the quality of products.
3) Globalization
 The opportunity to work with regional banks that are better equipped & prepared, the
changing need of customers is coming due to globalization effect. This aspects
resulting from globalization presents opportunities for the bank industry in Ethiopia.
2.1.3. Marketing Strategies Available To CBE
To develop strategies that take into accounts the SWOT profile, a matrix of these factors can be
constructed the SWOT matrix
Table 1: SWOT matrix

7|Page
 Marketing Management 2022
Strength Weaknesses
Opportunities S-O strategies W-O strategies
Threats S-T strategies W-T strategies
 S-O strategies: pursue opportunities that are a good fit to the company’s strategies
 W-O strategies: overcome weakness to pursue opportunities
 S-T strategies: identify ways that the firm can use its strength to reduce its vulnerability
to external threats
 W-T strategies: establish a defensive plan to prevent the firm’s weaknesses form making
it highly susceptible to external threats.
2.1.4. W-O Strategies
Table 2: Weakness and Opportunities (W-O) strategies
Weakness and opportunities of AMCF
Weakness Opportunities
1) Limited banking a) Consistent, stable and broad based domestic economic
products growth
2) Low market research b) Growing foreign remittance inflow
activities c) Large infrastructure and social development projects by
3) Poor technological government
innovation and d) Global economic recovery and growth performance
differentiation e) Availability of new banking technology in the market
4) Inadequate internal and f) E-payment channel and card banking
external g) Good experience in mobilization strategy down to the
communication system branch level
5) Inconsistent customer h) Large customer base
service quality, i) Large market (population) with improving economic and
6) Service Failures and social well being
delay j) The expansion of the CORE banking system to most of the
CBE branches.

Note: as it is seen on Table 2 there are weaknesses that the bank (CBE) has and also there are
Opportunities the bank faces. By using W-O strategies overcome weakness to pursue
opportunities.
2.1.5. W-T Strategies
Table 3 Weakness and Threats (W-T) strategies analysis

Weakness and Threats of AMCF

8|Page
 Marketing Management 2022
Weakness Threats
a) Inconsistent customer service 1) Competitive rivalries and actions
quality,  Total number of banks operating in the country 19.
b) Service Failures and delay  Competitors are coming with new business strategy &
c) Poor technology innovation service offerings in the banking sector in order to attract
and differentiation customers with a better service & customer handling.
a) Limited banking products, 2) Threats of substitutes from micro finances and other
b) Bureaucratic nature to get a institutions
loan  The main financial institutions in Ethiopia are banks,
c) Employee competence gap insurance companies & microfinance institutions.
 June 2011, microfinance institutions mobilized Birr 3.8
billion deposits, their credit outstanding & total asset
increased Birr 7.0 billion & Birr 10.2 billion,
respectively.
a) Low market research 3) Deregulation/Re-regulation
activities  The national bank of Ethiopia has been maintaining
b) Low employee engagement Restrictions on new entry to banking industry:
 Minimum capital requirement to apply Birr more than
level
500 million.
 Foreign nationals or organizations fully or partially
owned by foreign nationals may not be allowed to open
banks or branch offices or subsidiaries of foreign banks
in Ethiopia or acquire the shares of Ethiopian banks.
 No person, other than the Federal Government of
Ethiopia, may hold more than 5% of a bank’s total
shares.
Note: as it is seen on Table 3 there are weaknesses that the CBE has and also there are threats
that the CBE faced. W-T strategies the company should establish a defensive strategies prevent
the firm’s weaknesses from making it highly susceptible to external threats. In this case CBEs
distinctive competencies must be considered. Therefore the CBEs distinctive competencies are
described below that overcome the weakness of the bank:
2.1.6. CBE Distinctive Competences
 Can the company’s competitive advantage be easily replicated by the competitors?
Heritage, reputation & brand image cannot be replicated by competitors.

9|Page
 Marketing Management 2022
Location & convenience can be replicated by banks in the market, if they have the required
available capital.
 Does its competitive advantage offer value to the customer?
Distinctive competence enables a company to deliver standout value to customers in the form of
lower costs & prices or better product performance or service, and then distinctive competence
has led to a competitive advantage.
 How can the competitors exploit the company’s key weaknesses?
Competitors can try to adopt service differentiation strategies & mechanisms by investing in the
sector whereby they can adopt new service offerings that can be well suited to the market than
that offered by CBE.
 actions taken to eliminate the key weaknesses
 Invest on technology & new marketing ideas.
 Market assessment & quality improvement
 Adoption of service recovery programs
 Reduce employee turnover & retain employee
2.2. Answer for Question Number 2 and 4:
a) Determine your organization’s competitive position and strategy.
A competitive advantage is an advantage over competitors gained by offering consumers greater
value, either by means of lower prices or by providing greater benefits and service that justifies
higher prices.

Resources

- Innovation

- Quality Low Cost

Distinctive Value
Competencies - Efficiency Creation
- Customer Differentiation
Response

Capabilities

Figure: Competitive Advantage

10 | P a g e
 Marketing Management 2022
b) Strategic group (Industry) Analysis is used to determine competitive position of CBE in
the industry
2.2.1. Criteria used to select top competitors for CBE
 Amount of capital it holds,
 Number of branches the bank has
 Number of employee retained by the bank
2.2.2. The Competitors
 Awash International Bank, Dashen Bank & Wegagen bank are deemed the top
competitors.
 Zemen Bank by rendering technological driven service became a threat to the industry at
large.
2.2.3. Distinctive competency of these top competitors cited
 Technology
 Electronic payment card service
 Mobile banking service
 Wide area network
 Door to door services

566 branches 454 branches 383 branches

12,188 employees 10,492 employees 4,907 employees

Birr 8.2 billion paid Birr 4.4 billion paid Birr 2.9 billion paid

up capital up capital up capital

565 ATM machines 403 ATM machines 297 ATM machines

Source: each bank annual report of 2019/20

11 | P a g e
 Marketing Management 2022
 How can the competitor use its distinctive competency to inflict damage on the
company’s competitive position?
 The competing banks have kept widening their service outreach using their networked
branches, forex Bureaus, ATM, adopting different payment card system & use point of
sale terminals (POS) to take advantage of competitors.
 When banks are successful in introducing new ways to market their services they can
satisfy buyer interest, increase product differentiation & lower cost.
 What defense measures would you take to counteract the treats?
 Educational opportunity & training programs for employees.
 Boost its staff retention capacity by creating favorable conditions.
 Motivate its employees by offering competitive salary & benefit packages, to attract
and retain employees capable of providing efficient & effective banking services to
customers.
2.2.4. Technology/innovation
 Working on improving IT projects which can enhance a successful implementation of
various banking applications, like net-banking, mobile banking or ATM banking, so that
it can retain its existing customers & win the heart of new customers.
2.2.5. Competitors’ key weakness
 Lack of resource mobilization & limited borrowing capacity
 Limited number of branches
 Lack of research and development capabilities
 No service differentiation
 System failure
 How can the competitor’s key weakness damage its competitive position?
 Lack of resource mobilization limits a Banks’ borrowing capacity; customers needing
large amount of money have to use other banks.
 Top competing banks are pioneers in banking technology, despite this they exhibited
continuous system failures, which contributes to dissatisfaction of customers.
 Limited number of branches, limit coverage in the country. This hinders the growth
of the competitor’s market share & diminishes the image of the banks.
 What actions would you take to exploit the competitors’ weakness?

12 | P a g e
 Marketing Management 2022
 Mobilizing its resources & widening its coverage, so that, it can snatch the position
of the top competing banks.
2.2.6. Analysis on other external factors
2.2.6.1. Five Key Opportunities
1. The Customer
• Currently the proportion the banks facilities & total population is 134,670, which is
below the industry average. This creates a huge opportunity for CBE; the bank has great
potential to reach those remaining customers.
• The main customers of CBE are government institutions. These institutions have huge
capital to deposit & potential to borrow in billions. They pay their employee salary
through CBE & this boosts deposit level & number of customers.
2. The Economy development
• Ethiopia is recording a high level of economic development. The service sector
contributed 57.7% to GDP , 30.8 & 13.3 % were agriculture & industry, respectively.
• Ethiopia doesn’t allow direct investment on financial sector but globalization will force
the country to consider the opportunity it can provide like technology & knowledge
transfer.
• The above mentioned creates opportunities for the banking sector.
3. Information Technology (IT)
• The banking industry through the introduction of IT related products; internet banking,
electronic payments, security investments, information exchanges can provide more
diverse services to customers with less manpower.
• IT can bring about equivalent contribution to profits & improving a banks performance.
IT can reduce operational cost & facilitate among customers within the same network.
4. Government Regulation
• The regulation developed by National bank of Ethiopia favors CBE, the directive where
by private banks are forced to buy 27% bond from Development Bank of Ethiopia(DBE)
on loans & advances. This regulation massively erodes the liquidity position of private
banks. CBE & DBE are exempt from this requirement issued by National Bank. This
creates an opportunity for CBE to provide loan for customers & gain competitive
advantage over its competitors.

13 | P a g e
 Marketing Management 2022
5. The banking sector growth rate
• The banking sector growth rate is very attractive which is 23%, creating a great
opportunity for CBE since it is the largest commercial bank of Ethiopia.
• It can exploit this opportunity through its huge capital and the reputation built in the mind
of consumer, as being reliable & trustworthy from other banks.
2.2.7. Five Key Threats
1. The new urban land lease regulation
 The new urban land lease regulation has shocked the banking sector after introducing a
provision which bans them from the benefit of location value for property held as
collateral.
2. Information Technology (IT)
 CBE introduced ATM based payment system but lagged behind private commercial
banks.
 Dashen Bank worked aggressively & has installed ATMs in its area branches, university
compounds, shopping malls, restaurants & hotels & maintained its leadership by
introducing & expanding e-banking in Ethiopia..
3. Inflation rates
 Money loses purchasing power during inflationary periods & affects time value of
money.
 Lenders know inflation will erode the value of their money over the term of the loan. So
they increase the interest rate to compensate for the loss. Long-term loans made at the
real rate of interest without an inflation premium would have actually produced negative
returns due to the declining purchasing power of the money.
4. The degree of rivalry between existing competitors
 In the traditional economic model, competition among rival firms drives profits to zero.
 Banks strive for a competitive advantage over their rivals. These differences give some
firms a competitive advantage & others a disadvantage.
5. Threats of substitutes from micro finances and other institutions
 The main financial institutions operating in Ethiopia are banks, insurance companies &
microfinance institutions. At the end of June 2011, microfinance institutions have been

14 | P a g e
 Marketing Management 2022
able to mobilize Birr 3.8 billion deposits while their credit outstanding and total asset
increased to Birr 7.0 billion and Birr 10.2 billion, respectively.
 The micro finance institutions are accessible to any town or rural areas at an arm’s length.
Most of the time they do not require infrastructure to render their services & may not
require collateral to lend money.
2.2.8. FUTURE STRATEGIC ISSUES
1) Globalization and Deregulation
2) Technological developments
3) Growth & expansion
4) Service quality improvement
Business Strength CBE
Against Awash Against Dashen
Success Factors Weight Rating ** Score Rating** Score
Market Share 0.10 4.5 0.45 5 0.5
Breadths of service line 0.07 4 0.28 3 0.21
Number of Branch 0.11 5 0.55 5 0.55
Price competitiveness 0.04 2 0.08 2 0.08
Advertising activities 0.05 3.5 0.175 4 0.2
Location convenience 0.09 5 0.45 5 0.45
Service providing capacity 0.10 5 0.5 5 0.5
Relative service quality 0.08 3 0.24 3 0.24
R & D activities 0.06 2 0.12 2 0.12
Ability of top management 0.05 2 0.1 2 0.1
Customer service 0.12 2 0.24 1.5 0.18
Experience curve 0.04 5 0.2 5 0.2
Profitability ratio 0.09 4 0.36 3.5 0.32
TOTAL 1 3.75 3.65
N.B **1 means that the firms competitive position is very weak. 5 mean that the firms’
competitive position is very strong. Average Business strength index = (3.75+3.65)/2 = 3.70
2.2.9. Summary and Future perspective of CBE

15 | P a g e
 Marketing Management 2022
2.2.10. Future perspective of CBE
1) CBE’s position previously
 The Market share: almost a monopoly in Commercial Banking.
 Number of Branches: Limited
 ATM Machines: None
 Technology exploitation: None or Few
2) CBE’s position now
 The Market share: more than 65% in Ethiopia
 Number of Branches: 1,604
 ATM Machines: 3,581
 Technology exploitation: below its competitors
3) CBE’s position in the future
 The Market share: more than 20% in East Africa
 Number of Branches: 210% of the existing (1,604 branches)
 ATM Machines: More than 4500
 Technology exploitation: leader in using technology
2.3. Answer for Question Number 5:
Think of an organization of your choice, which involves in trading mobile phones. Explain the
various approaches used in segmenting markets and also describe how the marketing mix is
used to position your products in a market.
Segmentation, Targeting and Positioning (STP) is one of the lead marketing strategic for success
of product marketing, mainly into mobile business. The mobile market has factors of high level
of competition. Such competitive structure creates a big problem for the marketing manager in
positioning of their product to target audience.
The STP model is useful and proper segmentation and communication to the concern customers.
Under the concept marketing managers develop and deliver a customized promotion and
appropriate communication for every segment, which increase the engagement of customer with
product. Here, I am using the example of Samsung mobile company as example to explain the
concept in detail. The company segments its target market on various parameters,
1) On the basis Demographics: the mobile market has been divided as per age, and
preferences. Company has launched different featured mobile for different age groups.

16 | P a g e
 Marketing Management 2022
2) On the basis of Lifestyle: Company has mobile phone to attract more football fans by
giving special football game facility.
3) Belief and Values: based on concept of religion and faith, product may vary, like
company is offering devotional song package for Indian.
4) Life Stages: Chronological benchmarking of people’s lives at different stages, mobile
has been designed with the concept on such features and sold like that
All the marketing Mix strategy: Product, Price, Place and Promotion is designed and decided by
the same mechanism based on the segment created. Like special advertisement during badminton
tournament to attract badminton lovers.
2.4. Answer for Question Number 6:
Analyze a product or service offered by your organization in terms of the three levels of
product. What is the core benefit? How important are product services at the augmented
product level to the overall ‘offer’?

The three Product Levels:

 The CORE is the reason you buy something. The reason for buying the product
 The ACTUAL is what you can touch. The product’s attributes and features.
 The AUGMENTED is anything added. Additional benefits: warranty, delivery, after-
sales service, installation
2.5. Answer for Question Number 7:

17 | P a g e
 Marketing Management 2022
Consider the ten main issues facing industrial marketing managers. How important are these
issues to your organization (or an organization with which you are familiar)? What advice
would you give to organizations trying to integrate place (distribution) with other elements of
the marketing mix?
A. The ten main issues facing by industrial marketing managers are as follows:–
1) Issues related to meeting the need of the market
2) Maintaining the effectiveness of targeting high value sources for growth
3) Identify the market segmentation
4) Deciding the most effective market segment that provide the most value potential for the
company
5) Deciding segments that are cost effective and easy to reach
6) Creating clear target that has high focus on consumer's demand and decision related to
the company's products
7) Positioning of products against other products
8) Budget allocation of the products
9) Brand recall
10) Differentiation of products from other products
B. What advice would you give to organizations trying to integrate place (distribution) with
other elements of the marketing mix?
The mentioned above issues are related with the marketing managers, each of the above
mentioned issues involved thousands of decision and rejection. Marketing manager needs many
strategically minds in order to control all the issues. Products of the company are its face hence
any decision related to the product has direct impact on the company and its image. Therefore,
a) All the above issues should be resolved and properly allocated to the related resources.
b) Organization should effectively use the marketing mix specially promotion and product.
c) Proper differentiation should be used in products in order to provide uniqueness from
other products.
d) Demand and need of the market should be properly provided to the market hence
positioning of the products should be clear.

18 | P a g e
 Marketing Management 2022

2.6. Answer for Question Number 8:

Sony charges a price premium for its Play Station 3 over competing brands Nintendo (whose
game system Wii is the market leader) and Microsoft’s Xbox 360. What does this tell you about
the value of a brand name? Do you think there are ethical issues involved in this type of
pricing? If so, what are they?
The service in the product price is an essential role in a large part regarding how will it is being
sold. Practices regarding strategies of pricing are conducted by producers and retailers for
earning the profits without any kind of defrauding competitors or any other kind of consumers.
Despite of that, the competitive prices and availability, convenience and other variable factors
makes a direct impact upon the consumer impressions of the fair pricing (Gordon, 2012).
Competitors are being protected by the business loss from many factors of unethical pricing
strategies which an unscrupulous marketer tries to attempt. Premium pricing policy by Sony in
respect of its high Technology background and the attractive features which they have
accommodated in their products Along with that, companies also known for utilizing their
skimming price in which generally the prices of the products are much higher when it is being
introduced due to the anticipation which is observed from the gaming fans. In this kind of
situation, company generally scams the prices due to the high involvement of people in the
product of the services which they have launched.
However, there are certain kind of schemes which has the tendency for going erratic as the high
and premium pricing policies which result in low sales. After gradual time like a span of six
months, there are modification within the pricing of the latest PlayStation which goes down and
this happens due to the launching up of a similar kind of product by the competitor for the factor
of Novelty starts fading away (Luo et al., 2013). It happens because people get used to the
product after a while when it is launched so the company has to look good on the prices to attract
a greater number of customers. Product launch by the competitor is also a reason why the
company lowers down their prices of their products. There has been a reduction within the
hardware prices of the company because of the motive for capturing the customers from the rival
market. Has made an agreement within the sales of Sony PlayStation as the prices which are
current comparatively lower than the products of the rival companies which in turn will attract
large number of customers and will help company to gain a competitive advantage within the
market and achieve their targets (Porto, 2018).

19 | P a g e
 Marketing Management 2022

2.7. Answer for Question Number 9:

Select four advertisements you have seen recently – one newspaper, one magazine, one website
banner and one television. What advertising objectives do you think the organization had in
each case?
Advertising simply means the communication between the consumers and the producers.
Advertising is a basic marketing strategy which is mostly used to attract its customers
Introducing a Product, Introduce a brand, Awareness Creation, Acquire Customers,
Differentiation, Brand Building, Positioning, Increase Sales, Increase Profits , Create Desire,
Call to Action cab be identified as the Advertising Objectives.
1) Advertisement 01: Newspaper Advertisement

This Advertisement is consisting with lots of advertising objectives .Some of them are awareness
Creation, Acquire Customers, Brand Awareness , Create Desire and etc. As the beginning point,
in making and development of brand is to create awareness by informing its target market
audience of its survival.
2) Advertisement 02: Magazine

20 | P a g e
 Marketing Management 2022

Through this magazine advertisement company is trying to promote the Product. In this
advertisement company is trying to accomplish the marketing objectives of Awareness Creation,
Desire Creation, Brand Building and etc
3) Advertisement 03: Web Site Banner Advertisement

Through this Advertisement company is trying introduce its new course. The objective of this ad
is clearly to inform the audience about the slash in prices therefore to drive people onto their
website and increase sales!
4) Advertisement 04: Television Advertisement

21 | P a g e
 Marketing Management 2022

By using famous singers Coca-Cola Company is trying to promote it products. Main objective of
these ads are to influence audience and increase their sales.
2.8. Answer for Question Number 10:
What are the four main factors to consider when selecting an advertising medium?
A. The cost of the medium
It is very important to consider the cost of the media and its effects to the BUSINESS, as
measured by the returns and conversions. Failure to consider the cost of the advertising
campaigns means you are footing an advertisement that is too expensive, converting too little.
The extent of the media circulation
B. The Extend of Media Circulation
This is a significant feature when running an advertisement in the local newspapers which covers
the actions in the area. The product and/or service you have in mind want need more publicity
and movement than what the local newspaper can present. It is vital to think the extent and reach
of the mediums flow. So, anybody can decide advertising also in Google, MSN and Yahoo that
have the capability of making outcome.
C. Nature and type of the product/service intended for advertising
The nature and type of product or service must not at all be disregarded. The advertisement must
come out like presenting improved deals to the vision If you consider advertisements run by the
big organizations you will find out they have been on the front for several years.
D. The target market the advertisement media is intended
Some type of advertisement is directed to the mature generation while others are directed
towards the younger generation. Advertisements that are directed to the youth should feature
effective channels such as social sites where many of the youth spend their time. If the
advertisement has to do with housing it is best directed towards the older generation therefore an
effective channel should be used to convey the message to the right people. [MAR13]

22 | P a g e
 Marketing Management 2022

REFERENCE
AddisBiz.com. (2021) Commercial Bank of Ethiopia (CBE) Latest News Addis Ababa:
AddisBiz.com.

CBE (2021, Sep 22) Retrieved from www.combaketh.et

CBE annual_report_2019_2020

Wegagen bank annual report 2019/20

Dashen Bank Annual report of 2019/20

Awash Bank Annual Report of 2020/21

Gordon, R., 2012. Re-thinking and re-tooling the social marketing mix. Australasian Marketing
Journal (AMJ), 20(2), pp.122-126.
http://www.quickmba.com/strategy/swot/
http://www.quickmba.com/strategy/value-chain/
Luo, X., Zhang, J.J., Gu, B. and Phang, C., 2013. Expert blogs and consumer perceptions of
competing brands. MIS Quarterly, 41(2), pp.371-395.
Porto, R.B., 2018. Consumer-based brand equity of products and services: Assessing a
measurement model with competing brands. Revista Brasileira de Marketing, 17(2),
pp.150- 165.
SWAN, M. (2013, MAY). Top 4 Factors to Consider When Choosing an Advertisement.
Retrieved from http://ezinearticles.com

23 | P a g e