The influence of message designs on business performance in financial institutions: cases of Tanzania Postal National Bank of Commerce and National Microfinance Bank

As a result of competition, advertisements are gaining great prominence in many organizations and businesses. Both big and small organizations constantly advertise to attract new customers as well as increase market share. This competition cuts across all economic sectors including the banking sector. Many banks have emerged with almost similar services. As a result, advertisements are used as a major tool to attract more customers. The general objective of this research was to find out whether or not advertisement is beneficial to the banking industry. Three banks were used as a case study area: Tanzania Postal Bank, National Microfinance Bank and National Bank of Commerce. Primary data were collected from bank management's staffs and customers. Secondary data were also collected from the banks' annual reports. Results showed that more than 90% of respondents understood bank advertisements. About 79% of respondents agreed that advertisement messages are well designed while 75°/o agreed that symbols were appropriately used in message designs. Results also revealed that there is a positive relationship between banks' advertisements and customer growth as well as a positive relationship between the banks' advertisements and deposit growth. The study recommends the following: first, advertisements should be designed is such a way that they reflect the majority of customers, that is low social class people. Second, bank management and departments responsible for advertisements and use Kiswahili language in advertisements because most Tanzanians use Kiswahili language. Third, the bank management should consult customers and staffs on how to improve their advertisements.