FACULTY OF BUSINESS AND MANAGEMENT

BA246-BACHELOR OF ADMINISTRATION (HONS.)

INTERNATIONAL BUSINESS
BA242- BACHELOR OF ADMINISTRATION (HONS.) FINANCE

PRINCIPLES AND PRACTICES OF MARKETING

(MKT420)

GROUP ASSIGNMENT

ANALYZING THE MARKETING ENVIRONMENT

MALAYAN BANKING BERHAD (MAYBANK)

PREPARED BY

NO NAME STUDENT’S ID
1. OLIVIA RINA ANAK FEDRICK TUTONG 2021459168
2. MICHELL ANAK KENI 2021820114
3. VERONICA EMPANG 2021847602
4. SOFIA JANE DYAK ANAK BRITA 2021454976
5. SITI NUR SYAZWANIE 2021628002

PREPARED FOR
MISS ARDIANA MAZWA RAUDAH BINTI AMIR ABDULLAH

SUBMISSION DATE
5 DECEMBER 2021
1. Identify and describe the micro-environments and macro-environments of
the company.

Maybank is a company that has two set of conditions in its services, namely
micro-environment and macro-environment. The factors or elements in a firm’s
immediate environment which affect its performance and decision-making. Maybank
has several micro-environment factors that influence its services such as competitors
and customers. Competition is what keeps the firm thriving. Competitors are the rival
seller or services operating in the same industry. For example, Maybank has
competitors in the same field as some bank such as Islamic Bank and CIMB Bank.

Other than that, Maybank is also influenced by macro-environment. In general,

the macro-environment was the major uncontrollable, external forces such as
economic, demographic, technological, natural and political. Macro-environment that
effect Maybank was demographic and technological. Demographic forces ultimately
involve human populations that patronize businesses and contribute to the economy.
For example, increasing ethnic diversity in Malaysia affects Maybank services.
Technology factors refer to the creation of new technology and how they shape
product and access to new market opportunity. For example, Maybank companies
utilize the use of internet technology in daily affairs to simplify work and be more
effective.

2. Explain what are the impacts of any two (2) macro-environment towards the
company marketing strategy.

a) Economic

Macro environment factors affect a business in a many way. The macro

environment is a dynamic factor and keeps changing drastically, leading to
an increase in avenues, competition and complexity. Efficient financial
management calls for better financial decisions. This is only possible when every
factor is reviewed which can affect the decision in any way and macro environment
is one of the most important factors. This has made financial management more
critical and sensitive for any business.

The current state of the economy is working in favor of Maybank, the BNM’s
revision of the overnight policy rate indirectly improves the Bank’s liquidity enabling
it to expand loan portfolio and extending credit to potential customers which would
enlarge its customer base. The increased systematic risk in the financial system
and rise in volatility since the trade date has led to lower than anticipated returns
of the strategy.

Over the past decade, financial market has become more open and integrated.
Despite the benefits of an open and integrated financial system, economies have
become more susceptible to the external shocks than before. This was evidenced
by the ripple effects seen globally as a result of the financial crisis in the US and
the credit crisis in Europe.

In the span of just 3 years, a succession of significant events took place and
had caused global economic slowdown. The World Financial Crisis in the US with
the weak global economic demand led to a collapse in prices and while the
recovery wasn’t even complete, we have been hit by the European Sovereign crisis
which has dampened the overall economic sentiment of the market.

Since the beginning of its lifetime, this investment went through ranges of
events such as Lehman Brothers, AIG, Fanny Mae & Freddie Mac failures,
Government-triggered Stimulus & Bailouts i.e., European Debt Crisis & Greek Debt
Bailout Part-1, US Debt Ceiling Crisis, 2011 Global Recovery Slowdown etc.

The improving economy creates business opportunities which would drive the
demand for banking facilities and services and provides opportunities for the Bank
to grow. The macroeconomic situations with the economic slowdown that hit
globally, changing in borrowing patterns, low interest rate margins and profits are
aggressively being pinched by competitors has resulted the Maybank Group losing
some of its market share to the competitors.

Therefore, to continue being a leader in the industry Maybank Group has

embarked towards a strategic transformation journey to retain its position and it
involves a total transformation where the firm is changing the organizational culture
towards customer-centric via adopting to the relationship marketing approach.
b) Technological
Technology has had a huge impact on the marketing sector, as well as
every other aspect of business, in recent years. To put it another way,
technology has a wide range of effects on marketing. Take Maybank, for
example. Maybank now offers online transfer, which is a transaction with only
by using an application or website that is more convenient, safe, and secure
than it was previously. Besides, Maybank also provide online banking like
Automated Teller Machine or more popular known as ATM which is also easily
to use. Digital banking's and online banking’s rise might be compared to a two-
edged sword. On the one hand, you can get more benefits at your fingertips,
while on the other, digital vulnerabilities and scams can be overcome. As a
result, all of these existences have had a significant good impact of
technological on Maybank.
The impact of technological on Maybank are, limits teller transaction.
Consumers can now do transactions online that were previously only available
to tellers in a bank branch. Because Internet users may transfer funds, make
deposits, and request withdrawals from their personal computers, teller
transactions have decreased. "Internet banking has been the most influential in
displacing branch transactions," according to Bank Systems and Technology.
For example, like Maybank, has provide an application or also can be access
through website which is called as Maybank2U. With this way, people don’t
have to come the bank branch or to the creditors to pay debt or bills. The impact
from this, people can save more their time. The next impact is, 24-Hour access.
Online banking is available 24 hours a day and seven days a week. Peoples
can make a transaction at any time. for example, an ATM of Maybank. An ATM
of Maybank are open for 24 hours. So, people can make transactions
regardless of time.
In conclusion, new technologies are being invented all the time, and the
rate of change is growing. Maybank is enhancing its competitive advantage by
outsourcing non-core activities. As a result of this strategy, the bank will be able
to focus more on what it does well and manage its resources to maximise
earnings. It also invests in cutting-edge technology and has long been the
market leader in terms of the technologies it employs to deliver the best
possible service to its clients.
3. Explain how did the company respond to the 2-macro environment.
a) Technology
Technology nowadays has affected the sector of the marketing
significantly, alongside with every other area in business. In marketing, the
influence of technology is diverse. While for the viewpoint of an organizational,
the technology affected the potential to gather and arrange the marketing data,
the method or technique that organization can apply and practise to get into
their customers and the process of expand different types and plans of
advertising. For example, Maybank. It provides the transactions that are more
convenient, safe and much secure than before. The rise of digital banking can
be compared as a two-edged sword. On the one hand, you can have more
benefits at your fingertips, while on the other one the digital vulnerability and
scam are more frequent than ever before. To prevent all those threats from
wide spreading, Maybank indeed created a solid cyber-security planning that
secure internal governance, human knowledge and network capability. For
instance, Maybank Group announced in April 2021 that they will discontinuing
using the SMS TAC or the transactions authorization code. The purpose of
discontinuing using those transactions is Maybank of course wanted to protect
its customers from the harm of the threats nowadays. Therefore, the customers
must switch to Secure2U as the preferred authorization method for most of the
transactions. By using this alternative feature, it will add on extra protection for
the users or consumers of Maybank.
b) Economic
Economic factors have a remarkable effect on how an organization does
their business and also how useful they are. Those factors can be included
economic growth, interest rate, inflation and many more. For example, the
condition of economic in Malaysia is decreasing due to COVID-19. As for the
result, many employees are started to lose their job and obviously became a
jobless person after the pandemic. Same goes to Maybank. The economic
crisis in Malaysia has caused Maybank income to decrease. Some of the
businesses that depend on direct client contact have to stop working and run
out of income due to the Movement Control Order or MCO. According to the
statistic found in the annual report for Maybank, it was show that the net profit
for the financial year of 2020 decreased by 20.9% to RM 6.48 million from RM
 8.2 billion in the financial year of 2019 due to the higher net impairment losses
as a result of the continued impact from the COVID-19 pandemic. As for the
Revenue in Quarter 4 also decreased by 5.8% to RM 12.24 billion from RM 13
billion in Q4, 2019.

4. Give your opinion, why the company needs to respond to the marketing
environment changes?

a) Its helps to understand the consumer behavior

The company needs to respond to the marketing environment changes
because they helping the marketing to identify and recognize what of the
customer’s needs in their life.
Besides that, with this particular responding of marketing environment
changes the company can help the consumer to do the right choice when they
choose the necessary items in the life. On the other hand, when the company
do not respond to the marketing environment changes without understanding,
so that company would be complicated for the firm and also miss on what the
consumer’s needs. Hence, that company will resulting in losses. Also, the
company it helps the consumer to identify with the needs of their customers. In
this way, the company was focused for regarding how the customers make
decision when purchasing the products. In this position, the marketers are
required to study dan grasp the different cultures of different customers which
by culture is influenced on how buyers behave, largely dependent on income
and social class.
b) Assists in understanding its competitors
The company must to be respond to marketing environment is come to the
rescue and offers assistance to the marketers. It is because all products likely
the brand is not being escape from the viewpoint of competition. So, every
category has a different brands and products whereby each products features
such particular brands target a specific group. On top of that, without a better
appreciation of major and minor competition, so the company is doomed to fail.
The best efficient ways to ensure the company is maintain by offering betters
and more advanced products at affordable prices.
c) Marketers get to strategize and make prompt decisions
 The company has the possibility of strategizing on what to do in case the firm
faces some drawbacks. The marketers constantly study and monitoring of the
marketing environment to avoid losses. So that, the company must to do
sensitization further becomes useful in meeting the desires and wishes of
potential consumers.
d) Help with Innovation
In this element, the company were focusing to the technological factors
comprise part of marketing environment. Such facts include automation,
internet expansion, technological incentives, and hi-tech barriers. It also affects
its profits and losses thereby marketers have an obligation to maintain and
enable any revolution in technology does not affect the firm in a negative
manner. Overall, the company will can no longer risk on never noticing any
substantial technical modifications that might affect the company.

References
Abdullah, A. M. (2021, November 22). Marketing Environment. Retrieved from
https://www.youtube.com/watch?v=VwbnTufUwmw
Cosgrove, L. (2012). Importance of Marketing Enviroment To a Marketer. Evan
Williams. Retrieved from https://lilycosgrove.medium.com/importance-of-
marketing-environment-to-a-marketer-112f80e14f9
Dr G. Nedumaran, B. K. (2017, December). Department of Commerce, Alagappa
University,Karaikudi. Retrieved from Research Gate:
https://www.researchgate.net/publication/332188449_IMPACT_OF_ONLINE_
BANKING_SERVICES_A_STUDY
HARTINI AHMAD, S. M. (2021, November 22). STRATEGIC CHANGE AND
TRANSFORMATION: A CASE STUDY AT MALAYAN BANKING BERHAD
(MAYBANK). Retrieved from Universiti Utara Malaysia:
http://repo.uum.edu.my/7286/1/H.pdf
Zainal, N. &. (2009). Influence of Economic Factors on Performance of Investment
and Mudharabah Accounts in Maybank, Malaysia. Retrieved from Canadian
Center of Science and Education (CCSE):
https://ccsenet.org/journal/index.php/ijef/article/view/3401