PRINCIPLES AND PRACTICES OF MARKETING

MCA 2013
TMA 4
SIR ABDUL KADIR OTHMAN
CASE 3 : MAYBANK GROUP

BIL

NAMA

NO MATRIK

MUHAMAD AMIRUL HISYAM BIN AZMAN

1142147

MOHAMMAD SHAHIRAN BIN MOHD SUPRAN

1142156

TABLE OF CONTENT

BIL.

CONTENTS

1.

CASE SUMMARY

2.

THE MACROENVIRONMENTAL FORCES

AFFECT THE MAYBANK GROUP

3.

ISSUES AND DIFFICULTIES

4.

RESPONSES AND SOLUTIONS

5.

OPINION

6.

CONCLUSION

PAGES

CASE SUMMARY

The Maybank Group was founded on May 31, 1960 and now
Malaysias financial services leader. Maybank was one of the key drivers
in Malaysias economic development and it set new benchmarks for
Malaysias financial services sector.

The Group offers a wide range of

financial services including commercial banking, investment banking,

stockbroking, conventional insurance and takaful, trustee services,
offshore banking, asset management, and Islamic banking.

The Group has been successful in its strategies and operations

because it pays attention to, analyses, and reacts to various relevant
macroenvironmental forces that influence its business in recent years.
Maybank also facing different kinds of issues and difficulties.

The macroenvironment consists of forces that originate outside of an organization and

generally cannot be altered by actions of the organization. In other words, a firm may be
influenced by changes within this element of its environment, but cannot itself influence the
environment. So, responses and solutions are created for maintaining Maybank position as a
leader of Malaysias financial services.

THE

MACROENVIRONMENTAL

FORCES

AFFECT

THE

MAYBANK GROUP.

SOCIAL FORCES.

Social forces include the demographic characteristics of the population

and its value.

Age Structure.

One important trend is the shifting age structure of the worlds population,
as aging is now a phenomenon realized by people around the world.

Households and Family.

The number of households has been growing, as the household size has
correspondingly been declining. Also, there appears to be an increase in
the number of double-income family.

Population Shifts.

As a result of the over-development and congestion of the city center,

previously rural area are been urbanized which caused large proportions
of Asian population reallocated from city centers to suburbs.

Culture.

A second social force, culture, incorporates the set of values, ideas and
attitudes that are learned and shared among the members of a group.

The Changing Attitudes and Roles of Men and Women.

Research suggests that the majority or adults today believe men and
women should equally share most responsibilities.

Beliefs, Values and Habits.

The values of the population change with the demographics of the people
who hold these values.

People who are more educated live a busy

lifestyle which indicates that they place great importance on efficiency

and the up-to-date information.

The increasing median age population

implies the majority would be more mature when allocating incomes. The
increase in the number of double-income couples results in growing

emphasis on the togetherness of a family which implies higher values on

leisure time spent as family.

ECONOMIC AND REGULATORY FORCES.

The economy pertains to the income, expenditures, and resources that

affect the cost of running a business and household. Regulation consists
of restrictions that laws in different Asian countries place on business with
regard to the conduct of its activities.

Business and Consumer Expectations.

Of particular concern at the macroeconomic level is the inflationary or

recessionary state of the economy. During the most recent financial crisis
started in 2007, the banking industry suffered huge losses. Although a lot
of signs indicate that the economy is recovering, people nowadays are still
not so confident about the future.

Liberalization.

As a result of globalization, liberalization in trade and investment is

encouraged in order to facilitate international interactions in economic
and social arenas by diplomatic coordination of regulations and standards.

As a result, the economy is more dynamic and efficient which becomes

easier for countries to attract foreign direct investment.

Increasing Regulations on Banking Industry.

Due to the financial crisis, many countries are establishing more

regulations that decrease the potential to earn profits from investments
and other activities at banks in order to protect both the customers and
the banks.

TECHNOLOGICAL FORCES.

Technology refers to inventions or innovations from applied science or

engineering research. Each new wave of technological innovation can
replace existing products and companies.

Electronic Business Technologies.

In the past two decades, consumers are becoming much more reliant on
online management of their bank accounts as the number of homes and

businesses enjoying broadband access to the Internet has reached true

mass-market scope.

With the increasing world's cellphone subscriber base, the lower

phone prices and the expand of cellular service, a truly revolutionary wave
of mobile phones that can manage financial accounts is slowly taking root
all over the world.

However, with the sophistication of the Internet has arisen the issue
of cyber security, another technological change to which the banking
industry has had to respond.

ISSUES AND DIFFICULTIES.

Before making decisions on market strategies, marketers should first

carry out a careful environmental scanning analysing the main forces that
affect the industry significantly and that should concentrate on.

Obviously, the indication of an aging population has brought about

substancial growth in savings and retirement plans. Smaller households
and double-income families lead to higher discretionary incomes that can
be saved or invested.

Thus, in the banking industry, marketers should

offer more savings and investment account options which enables

consumers to select the most appropriate plan that can be personalized to
best suit themselves.

Due to the unique attitudes, ancestry, communication preferences

and lifestyles of different groups according to generation

cohorts,

genders, and so on, the banking industry may develop different marketing
programs.

As, the technology develops, banks should consider offering a

comprehensive

range

of

services,

such

as

viewing

and

making

transactions, paying bills, online and by cell phone in order to provide

convenience for costumers so as to gain customers.

Moreover, for

customers accounts safety, banks should create more secure systems

and give instructions on how to protect ones account.

Considering population shifts, establishing more branches properly

with regard to the bank size and target customers would be a wise choice.

One important strategy can be offering customers foreign currency

accounts responding to the increase in foreign currency use.

Another noteworthy strategy would be developing online savings

accounts for the teenagers due to the increasing level of education. From
this, banks can further educate the youth and encourage financial
management, and develop future loyalty customers.

Banks should develop low-risk investment programs as people are

still not so confident about the future economy. An era of much lower risktaking b traditional lenders has begun that will last for years.

As consumers are becoming more value conscious, the banking

industry will become more competitive. Banks have to compete on value
of their services in order to get customers who are requiring more
transparency when choosing product.

Greatly increased regulatory oversight will restrict lenders and

investment companies of all types.

Alternative lending sources will be

used to growing degree by small businesses and some consumers unable

to get loans elsewhere.

Maybank needs to be careful when implementing the technology.

Although mobile banking makes banking services possible everywhere,
there are still a lot of challenges.

Firstly, Maybank have to find ways to satisfy customers with

different mobile phones since it is very difficult for banks to offer mobile
banking solution on any type of device.

Secondly, security of financial transactions, being executed from

remote locations and transmission over the air, need to be addressed
jointly by mobile application developers, wireless network service
providers and the banks' IT departments.

Thirdly, another challenge for Maybank is to scale-up the mobile

banking infrastructure to handle exponential growth of the customer base
as banks unable to meet the customers' increasing expectations from the
solution may lose customer confidence.

RESPONSES AND SOLUTIONS.

Maybank has done the following in response to the macroenvironmental

changes by applying marketing mixes and tools which are product, price
place, promotion, people, process, and physical evidence.

These

marketing mixes are redefined to best suit to the issues and difficulties.

Deciding whether the response is appropriate or not, we need to

consider whether there are needs and wants for it, whether it is targeting
the right group , whether there are points of difference, and whether
Maybank would be more likely to reach its goal by performing the
response.

Offering a number of savings and investment account options such

as the Gold Savings Passbook Account, Flexi Plan 2, Youngstarz Account
and so on.

This response is appropriate as it responded to growth in

savings and retirement plans. Moreover, different options can cater to

different group of people which will broaden the bank's target customers.

Pioneering online savings accounts for the teenage market by

developing the "imteen" account. "imteen" account is a good idea as
through Multi-tiered interest rate, Passbookless, Convenient ATM access,
Online access, Free Personal Accident (PA) coverage, Academic Cash
rewards, Maybank will attract parents who want their children (12-18
years-old) to learn to manage their finance with small risk, and earn future
customers.

Establishing branches throughout Asia region as well as the world.

As Maybank's businesses are mainly in South East Asia, it is not advisable
for it to launch a lot of branches outside Asia as it will not be profitable in
the short run. In addition, since the world is still in the shadow of crisis,
Maybank should focus more on regain trusts from customers instead of
expanding its businesses quickly.

Developing the low-maintenance Premier Club account for

"individuals who are constantly on the go". This response is appropriate
since it satisfies the needs of people who are busy and in need of current
events and situations.

Offering its customers its range of foreign currency accounts which

minimize the risk of foreign exchange rate fluctuations.

This action is

appropriate as it sets clear targeted segments and tries to satisfy their

needs and wants of exchanging foreign currency easily and frequently.

Offering a comprehensive range of services that is accessible online

while implementing the Transaction Authorisation Code system to create a
more secure environment. These responses are obviously right as they
meet customers' needs and wants of making transactions and other
services online conveniently and safely.

Offering many services accessible by cell phone. Using M-money to

conduct services which is promoted to be secure and convenient.

Responding to the changing attitudes and roles of men and women,

Maybank should develop banking services catering to both genders. As
indicated in the textbook, in Singapore, the United Overseas Bank
launched a credit card just for ladies under the advertising theme, "The
Men Don't Get It." Maybank should expand its female customer group by
providing special services like promotions on spa, shopping, dining, and
travelling and so on.

The trend of value consciousness leads to Maybank analyzing the

market more carefully. Maybe it should add low-fee credit cards in
response to this new orientation.

In order to earn money and minimize the risk when lending,

Maybank should try to develop new ways to make loans to customers. For
example, enabling lending by and between members of lending clubs, or
between friends and family.

Responding to the changing attitudes and roles of men and women,

Maybank should develop banking services catering to both genders. As
indicated in the textbook, in Singapore, the United Overseas Bank
launched a credit card just for ladies under the advertising theme, "The
Men Don't Get It." Maybank should expand its female customer group by
providing special services like promotions on spa, shopping, dining, and
travelling and so on.

The trend of value consciousness leads to Maybank analyzing the

market more carefully. Maybe it should add low-fee credit cards in
response to this new orientation.

In order to earn money and minimize the risk when lending,

Maybank should try to develop new ways to make loans to customers. For
example, enabling lending by and between members of lending clubs, or
between friends and family.

OPINION.

From my point of view, all macroenvironmental forces will affect all

industries. The difference lies in to what extend they affect the industry.

Some may be tiny and marketers do not need to change strategies, some
may huge which force marketers to respond.

As for political environment, different laws impact differently to

different industries.

On one hand, Patent law, copyright law and other

related laws are very important to many industries as they give inventors
or author the right to protect their intellectual properties. It is especially
important in computer industry, as the core of InfoTech is creation and
wisdom. Also, in clothing industry, the increasing emphasis on copyright
would prevent others from copying the design. However the effect would
not be so significant in banking and food industry. On the other hand, the
laws and regulations considering health are very crucial to food industry.

Considering social forces, culture plays an important role in many

industries. However, they may not be as powerful in banking industries as
they are in other industries. For food industry, people's purchases of food
largely depend on their eating habits. Nevertheless, as people are paying
more attention to health and fitness, it may need to change its focus from
taste to lower calorie or full nutrition. In clothing industry, culture mainly
determines what a group of people would wear.

Also, as the increase

concern on health, people have developed a keen interest in sports

apparel and workout gear. On the other hand, for banking and computer
industries, the effect of culture may not be that significant.

CONCLUSION.

For social environment, demographic forces nearly affect every

industry greatly.

For example, age structure will influence clothing

industry by deciding what styles of clothes to produce, and will impact

food industry on their strategy about what aspect should they concentrate
on, tastes, calorie, or eating environment.

It will also affect computer

industry by customers' needs and wants changing among different age

groups.

With regard to economic forces, globalization is an important trend.

It has led to the rise of massive multinational food processing companies,
which often sell their foods under local names in local languages, after
producing them in regional factories worldwide.

Due to globalization,

more and more local clothes brands are known to the world and design,
production, and selling can be done in different countries. The Computer
industry is a truly globalized sector, where research, development and
manufacturing of components and systems have grown in the labs and
manufacturing plants of mainly Asia countries.

When it comes to political environment, political risks matter

similarly to almost all industries, as they need licenses, protection for
properties in foreign countries, and avoidance of social unrest.

In terms of technology forces, almost every industry is affected

greatly nowadays. In clothing industry, the sweeping change in apparel
retailing is the rising success of e-commerce which increases efficiency.
Meanwhile, in food industry, technology has revolutionized the way that
we grow, transport, process, package, purchase and cook food. There is
no difference in banking industry as indicated above. Most importantly,
technology is essential to computer industry, not only because of its own
development, but also the other corresponding techniques such as Wi-Fi,
and Internet appliances.

Maybank Group is involved as banking industry which is has been

categorized as a firm that provides financial services for people.