PRACTICE OF ADVERTISING STRATEGY AND ITS EFFECTIVENESS: IN THE CASE OF ETHIO-TELECOM

Abstract

Advertising is a tool of marketing for communicating ideas and information about goods and services to an identified group with the intention to draw attention of people and increase the amount of sales for these goods and services. These intentions are all aimed at higher purpose of enhancing the buyer’s response to the organization and its offerings so as to achieve profitable sales in the long run. Also understanding advertisement effectiveness in context of new technology and development of various emerging media choices is essential as it would contribute significantly to the productivity of advertisers in terms of effective allocation of their marketing budgets. The main objective of this research is to explain the effectiveness of advertising using the AIDA model in the case of Ethio-Telecom in Addis Ababa Ethiopia. The study employed descriptive and explanatory research design with quantitative method in the form of a questionnaire with closed-ended questions. Considering the population size is unlimited, sample size was determined using the formula of infinite sample size and 384 individuals were estimated. The researcher applied confirmatory factor analysis and structural equation modeling using the SPSS and Stata software to analyze descriptive and inferential statistics. The results of hypotheses test dimension indicate that AIDA model have positive and significant relationship with advertising effectiveness in Ethio-Telecom and conclude that consumption behavior of ET customers is formed from having awareness about ET service from the advertisement, using the advertising as a source of information as possible and stimulate their interest and desire as well. Meanwhile, the buying or action behavior stimulates by desire for the time being had indirect effect on the effectiveness of advertising. Suggestions have been made to make ET ads more effective.