THE EFFECT OF PROMOTION STRATEGIES ON PERFORMANCE OF THE BANKING INDUSTRY: THE CASE OF BERHAN INTERNATIONAL BANK S.C

Abstract

In this competitive industry, setting an effective and efficient promotion strategy has a great impact on the overall performance of an organization. Therefore this study is aimed to explain the effect of the promotion strategy (by considering the five promotion mixes which are, advertising, personal selling, sales promotion, public relation and direct marketing) on performance, by taking a case of Berhan Int. Bank S.C. A conceptual frame work was used as a guidance to test the relationship between the promotion dimensions consisted in the promotion strategies and the performance. A quantitative approach is used in the research. Questionnaire is designed and distributed to the total sample size of 291 employees of Berhan Int. bank in randomly selected branches to collect a primary data and 5 structured interview questions was prepared to collect information from the managements of marketing and business development department of the bank. The SPSS Version 24 software were used to analyzes the data collected through questionnaire and interview responses also used in the analysis to narrate with tabulated research questions. The finding showed that personal selling and advertisement of Berhan Int. Bank have a significant positive effect on performance. However, the remaining three independent variables such as sales promotion, public relations and direct marketing have a positive but insignificant effect on the performance of Berhan Int. Bank. Therefore, it is essential for the bank to pay more attention for the promotion mix elements, advertisement and personal selling by considering their significant effect on performance. And the bank also should reconsider the sales promotion, public relation and direct marketing activities in its strategy since the study results insignificant contribution in influencing the performance of the bank.