Name: Trizzia Ellaine L.

Singson
Course: Master in Management major in Strategic Management

Case Study 1: Marketing Environment

1. What macro-environmental forces affect the banking industry? What implications can be
drawn as a result for marketing strategies in the banking industry?

The macro-environmental forces affect the banking industry are the social, economic, and
technological environment. In the case of Maybank Group, the social forces that influenced
the institution are demographics and value categories as the increase in the median of
general population that driven savings and retirement plans. The advantages of these
retirement plans are the growth of compound earnings where you can also earn on the
interest you have already earned so it is advisable to start saving early to have more of an
impact compound interest can have on the total savings. Other factors that resulted to surges
in savings were the increased numbers of smaller households and double-income couples
that resulted to higher discretionary incomes that could be saved or invested. The increasing
level of education and academic qualification was another noteworthy change that led to
heightened awareness and understanding on the significance of saving and investing. This
means that there are more population who have right financial knowledge to properly
manage their finances in the future. The urbanization had caused the Maybank Group to
expand branches throughout Asian region and worldwide to serve customers regardless of
their location. This initiative made them cater and accommodate more customers. One of
the attractive social factors of availing Maybank’s services are the many services to choose
from such as Privilege Plus, iSAVvy, SaveUp, “imteen”, Youngstarz, Low-maintenance
Premier One , and Foreign Currency Accounts. These customized accounts provide
exclusivity to the suitable target market that could be more convenient for them to use
because it was based from the needs of the customers.

As for the technological forces that affected Maybank Group are the declining cost of
computers and other electronic devices, informative tour of services, advice on internet
banking habits, Transaction Authorization Code (TAC) system implementation, Short
Message Service (SMS), and M-money which was a digital currency via phones. The more
that we employ and recognize the latest advancements in technology, the more successful
is the business and improves customer retention rate. These forces have a significant
influence in the culture, business, transportation, science, and healthcare sectors.

Macroenvironmental forces have an exert influence on all businesses. They can increase or
decrease the need for your service or product, or build or offer entirely new service or
product needs. New market segmentation might be conducted or old target markets
changed.

These forces have a significant impact on the overall success of marketing activities so the
social, economic, and technological factors must be considered in the process of the
creation of the strategic marketing planning to improve success in the institution’s
marketing campaign and reputation of the brand image. By considering these factors, it will
deliver favorable results and avoid wasting time, money, and effort in executing the
strategies indicated in the marketing plan as all the macroenvironmental forces have been
taken into consideration.
 One of the most evident recent technological developments was the declining cost of
computers and other electronic devices. The penetration of the Internet in many Asian
countries had risen rapidly. Maybank responded to this by creating a corporate web site
and launched Internet banking to offer a comprehensive range of services accessible online.

With the sophistication of the Internet came the issue of cyber security. Maybank responded
to this problem by providing on its website information and advice on safe Internet banking
habits, including choosing appropriate usernames and passwords, clearing browser cache,
logging out securely, and updating security software. Moreover, Maybank implemented
the Transaction Authorization Code (TAC) system in 2004 to create an even more secure
Internet environment for its customers.

Maybank also offered many services accessible through mobile phones. For example,
customers could send text message via Short Message Service (SMS) or call to request
their TACs.

2. How has Maybank responded to the macro-environmental changes? Are the responses
appropriate? What other responses would you suggest?

“Maybank offered a number of savings account options, including the Privilege Plus
Account, iSAVvy Account, SaveUp Account and Youngstarz Account. The variety of choices
made it possible for each customer to select the most appropriate plan, which could be
personalized to best suit him or her. To further educate the youth and encourage financial
management, Maybank launched myzone, Malaysia’s first online banking site for
teenagers 12-18 years old and introduced “imteen” account an online savings account.”
This is a good initiative of Maybank Group in order to cater more customers and encourage
and educate the youth about the importance of financial management. Aside from offering
these types of accounts, I would also suggest them raise awareness about these educate
them about the financial management. Nowadays, most businesses or institutions conduct
free webinars or information session in order to get more clients. The scope of the webinar
should tackle the advantages of having a good financial management system and discuss
how these savings account options benefit them in the long run.

“Maybank had responded to the urbanization of previously rural areas by establishing

branches throughout the Asian region as well as the world. This helped to support and
serve customers regardless of their location. In general, the reshaping of Asian values had
stemmed from changes in the demographics of the people who hold these values. For
instance, many people with higher education degrees have come to place great importance
on efficiency and staying up-to-date with current events and situations. As a result of
globalization trends and deregulation in the banking sectors in many countries, Maybank
expanded into many countries including the Philippines, Papua New Guinea, Vietnam,
Myanmar, and Uzbekistan”. In order to widen your target audience, establishing more
branches is necessary to cater more customers. According to the recent data provided by
Digital Around the World, there is a total of 5.16 billion people around the world use the
internet at the start of 2023, which is equivalent to 64.4 percent of the world’s total
population (https://datareportal.com/global-digital-overview). This indicates that you can
also target more audience by tapping them through their devices because there a lot of
internet users nowadays. For example, there are popular digital banks nowadays that offer
a higher interest rates such as SeaBank, Tonik, CIMB, KIMO, and Maya Bank up to 2.5%
to 8% interest earnings. This is also way more cost-effective as there would be fewer
operating costs to be incurred but the cons would be there would be fewer interactions with
the bank as you cannot visit their branch offices anytime.

“To support such busy lifestyles of professionals and even non-professionals, Maybank
developed the low-maintenance Premier One Account.” As a working professional,
offering a low-maintenance Premier One Account will not help me for having a busy
lifestyle. As a customer, I would be glad if the bank offer more ways or avenue where I can
deposit my money instead of waiting in a long queue or offer more convenient ways to
withdraw money. For example, as a customer of CIMB, I can say that withdrawing money
is so convenient because I could withdraw to any bank in the Philippines without having to
pay for an extra fee.

“On the other hand, the increase in the number of double income couples had resulted in
a growing emphasis on the togetherness of a family. As more parents had less time to spend
with their children and relatives, people had come to place higher value on leisure time
spent as a whole family. Emphasis on family unity and longer weekends contributed to
increased tourism at home and abroad, while a more open attitude towards foreign
influences resulted in a growth in foreign investments and multinational businesses. The
consequential increase in foreign currency use in Asia, propelled by the overall
globalization of the world, led Maybank to offer its customers their range of Foreign
Currency Accounts. The result of such liberalization in trade was improved economic
efficiency, which in turn meant increased attractiveness of the countries involved in foreign
direct investment. Maybank’s Foreign Currency Accounts were also a response to this
macro-environmental change.” This is a good offer to clients as it does not only benefit
the tourists alone but the economic growth of the country as it will earn more profit from
tourist which can be reinvested for a better education, infrastructure, natural environment
conservation, cultural assets and traditions, and funding conservation efforts to reduce
poverty and inequality. Tourism offers great opportunities for emerging economies and
developing countries.

“Back home, the deregulation of the banking industry resulted in increasing competition
from foreign banks in Malaysia. With the ongoing uncertainties in the global economic
environment, consumers are worried about the staying power of banks. Many seek to hedge
their exposures by diversifying into more accounts and a mix of different banks, both local
and foreign. Many Malaysians hold multiple accounts with numerous institutions.
Maybank responded by introducing innovative products to enhance the financial well-
being of its customers. For example, it offered a structured guarantee deposit product that
invested in asset classes with a focus on the sustainable sectors. Maybank also seeks to
focus on building and servicing customer relationships. The bank launched an Analytical
Customer Relationship Management (aCRM) project to help the marketing organization
better understand Maybank customers by communicating with them at the right time using
the right channels.” In order for me to retain my savings in a specific bank, it would be
great if the bank would offer me a higher interest savings if I reached a certain amount.
Honestly speaking, I currently have accounts from different banks for diversification
because of the uncertainties in the global economic development as I do not want to put all
my eggs in one basket and lose them all at once.
3. Will macro-environmental forces affecting other industries such as the computer industry,
clothing industry, and food industry be different from those in the banking industry? What
are the similarities and differences? What implications can be drawn for marketing
strategies as a result?

The macro-environmental forces affecting the different industries such as clothing and food
can be slightly different from the banking industry.

As for the demographic forces in the fast food and clothing industries, there could be
similarities if you are considering the ethnic and religious trends. For example, for
muslims, they do not eat pork and mostly wear conservative clothes so putting a business
on those areas must be taken into consideration in order for the business to progress. The
businesses should be able to create products that satisfy their needs.

As for the political forces, fast food and clothing industries are greatly affected. For
example, there is one influencer who supports the other party while majority supports his
or her opponent, this could drive the influence of the customers to switch to other fast food
chains as this influencer owns a food business. As for the clothing, when the former
Philippine Vice President, Leni Robredo, filed her candidacy for the presidential role and
her branding color was fuchsia/pink, a lot of merchandisers have sold many clothes to
support the candidate.

About the natural forces specifically in the resources or the shortages of raw materials.
Many resources that once may have seemed to have an infinite supply are now seen as
precious and greater efforts are being made to find alternatives or cut down usage. For
example, in the case of McDonald’s, there a time that they have stopped offering BFF Fries
and just offered regular size for the mean time in year 2022 as there was a shortage of
potato supplies. As for the clothing industry, availability of resources, demand and
production are the macroenvironmental factors. For example, the scarcity of certain
materials, such as leather, may force retail and wholesale clothing companies to sell more
faux or substitute leather products. As a result, retailers may increase the prices of their
products because of the shortages for the raw materials or they could just switch their old
clothing styles for the mean time.

There is a good initiative by Hennes & Mauritz (H&M) which is the H&M's Garment
Collection Program, global initiative the company set up as part of its commitment to a
sustainable fashion future. The mechanics are simple. All you have to do is drop your bag
of unwanted clothing and other textiles – such as sheets or socks – in the recycling box at
your local store. Each bag of textiles also entails you to an H&M voucher, which you can
use for your future purchases.

The implications of the macroenvironmental forces mentioned have a significant

relationship in the marketing strategies to be executed. As for the H&M’s good initiative,
it has a great impact on its brand image advocating for the healing of the Mother earth. By
the studying the demographics of the muslim culture, it could also help save not only
marketing budget but also the overall operating costs as you will not waste time targeting
audience through Facebook Ads as business people would already know that putting a
business offering pork products or sexy clothing will not strive in specific locations.