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Assignment of Fin-2103:

Principles of Marketing


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Assignmenton

Elements of Macro-Environment & its impact over mar

Bangladeshi goods & services


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Md. Omar Faruque

Course Instructor/ Lecturer,

Department of Finance,

Faculty of Business studies

Jagannath University, Dhaka

.]

Sultan Ahmed Khan

Representative of the group

Epimetheus

BBA 3rd

Batch


Jagannath University, Dhaka.

Submitted by

Submitted to


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Group Name: Epimetheus

Group No:

Name of the members of the group:

Serial No: Name of the members of the group Roll Number

01 Sultan Ahmed Khan 091597

02 Md. Mynul Islam 091633

03 Sharjil Ahmed 091623

04 Anik Mahmud 091636

05 Mamunur Rashid 07882747

06 Md. Mofazzal Hossen 091615

07 Nusret Jahan Nupur 091519

08 Mahmuda Akter Tonny 091571

09 Protiva Talukder 091602

Group Representative:Sultan Ahmed Khan.

Group Coordinator : Md. Mynul Islam.

Contact :[email protected]


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18thOctober 2010

The Course Instructor,

Md. Omar Faruque,

Lecturer,

Dept. of Finance,

Jagannath Uniersit!, Dha"a.

#ub$ect% Than"s to our &entor for giing us a cha''enging assign&ent.

#ir,

(e are the stu)ents of )ept. of finance *+r)batch of Jagannath Uniersit!, Dha"a. (e are

er! &uch enthusiastic about our assign&ent. (e are rea''! happ! to hae such an

assign&ent of cha''enging an) interesting 'i"e this. Our presentation topic is -'e&ents

of /acro eniron&ent an) its I&pact oer &ar"eting of ang'a)eshi oo)s an)

#erices. There 3ere so&e obstac'es 3e hae face) at the ti&e of co''ecting )ata about

our topic. ut 3e oerco&e a'' the obstac'es b! the en)eaor effort b! each &e&ber of

our group 3hich gae us a ne3 e4perience. (e a'so &eet 3ith so&e specia' i&portantpersona'ities 'i"e businesspersons, scho'ars, e4ecuties of this countr! 3ho he'pe) us b!

giing a 'ot of infor&ation regar)ing our topic.

(e the group 5pi&etheus trie) our best to &a"e this assign&ent attractie, i&peccab'e,

interesting, infor&atie an) en$o!ab'e b! the he'p of e'ectronic an) print &e)ia in

association 3ith our honorab'e teacher, &entor, counse'or, instructor an) a)ocate Md.

Omar Faruque. (e are rea''! gratefu' to hi&. (e ha) 'i&itations at the ti&e preparing

presentation. #o &ista"es &a! occur in our )e&onstration of our presentation. (e hope

that, !ou 3i'' e4e&pt our &ista"es.

Than"ing in anticipation,

6ours Fi)e',

#u'tan 7h&e) han

roup Lea)er,

5The pi&etheus9 roup.


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Serial No Subjects Page Number

01 Objectives of The Study 01

02 The marketing environment 02

03 Macro environment 03

04 Elements of macro environment 04

05 Impact of demographic environment 06

06 Impact of economic environment 08

07 Impact of natural environment 10

08 Impact of technological environment 12

09 Impact of political environment 14

10 Impact of cultural environment 15

11 Methodology & Source of information 19

12 Acknowledgement 20

13 Appendix 21


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Objective of the study

Having objective helps to accomplish the goal of an assignment very respectively. Our

assignment is on-Elements of Macro environment and its Impact over marketing ofBangladeshi Goods and Services. The main objective is to collect information on how the

elements of the macro environment effect in the marketing system in Bangladesh & also

promote and maintain soundness, solvency, and systematic stability of the corporate sector.

To do that, we have defined some objectives in our assignment. Here are our objectives:

To define marketing environment, macro environment

Classification of marketing environment

Elements of macro environment

Impact of macro environment in BD goods & services.

Impact of macro environment in total marketing system.


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The Marketing Environment

The actors and forces outside marketing that affect marketing management ability to build

and maintain successful relationship with target customers.

The environment continues to change rapidly and both customers and marketers wonder

what the future will bring is called marketing environment.

The environment, where found consumers, marketers, marketing researchers, marketing

intelligence and some other engaged in marketing process & goods or product is being

supplied, is known as marketing environment.

The entire marketing environment can be classified into 2(two):

Chart: Classification of Marketing Environment.


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Macro- Environment

The company and all of the other actors operate in a large macro environment of forces that

shape opportunities and pose threats to the company is known as macro environment.

Six largely uncountable external forces influence an organizations marketing activities and

shape opportunities is known as macro environment.

Major external and uncontrollable factors that influence an organization's decision making,

and affect its performance and strategies. These factors include the economic, demographics,

legal, political, and social conditions, technological changes, and natural forces is known as

macro environment.

A factor that influence a company's or product's development but that is outside of the

company's control is known as macro environment.

For example, the macro environment could include competitors, changes in interest rates,

changes in cultural tastes, or government regulations

In a whole we can say that the factors that are major part of the company & uncountable

factors which influence an organizations marketing are known as macro environment.


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Elements of Micro-Environment

Demographic Environment

Demography is the study of human populations in terms of size, destiny, location, age, gender

race, occupation and other statistics. The demographic environment is of major interest to

marketers because it involves people.

Economic Environment

Marketers require buying power as well as people. The economic environment consists of

factors that affect consumers purchasing power and spending power/ patterns. Marketers

must pay close attention to major trends and consumers spending patterns.

Natural Environment

The natural environment involves the natural resources that are needed as inputs by marketers

or they are affected by marketing activities. Environmental concerns have grown steadilyduring the past three decades. Marketers should be aware of several trends in the natural

environment.

Technological Environment

The technological environment is perhaps the most dramatic forces now shopping own

destiny. Technological environment involves forces that create new technologist creating new

product and marketing opportunities.

Political Environment

Marketing decisions are strongly affected by developments in the political environment.

Political environment consists of laws, government agencies, government itself and pressure

groups that influence or limits various organizations and individuals in a given society.


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Cultural Environment

The cultural environment is made up of institutions and other forces that affect a societys

basic values, perceptions, preferences and behaviors. There are few cultural values which

affect marketing decision making. These are, persistence of cultural value, shifts in secondary

cultural value, people views of organization/ others, etc.

Chart: Influential elements of macro environment.


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Impact of Macro-Environment over BD goods services

Impact of Demographic Environments

Among two sides macro environment is very much effective or important in case of

marketing environment which is out of control of companys manager. Moreover, under

macro environment demographic environment is very effective and important. For a

businessman the first and foremost considerable topic is population or market size. Without

population there is nothing for a market. For this reason before entering into a marketing one

must keep in mind about the changes about population. Effect of changes on demographic

environment is given below:

Age Structure of the Total Population and Its Changes

The number of different ages of people such as the number of children, teenage, youth, old

person should be kept in mind at the time of doing marketing strategy. Because a product

cannot be certified for every ages of customer. Moreover, at the time of increasing of

population the growth of demand of product rises should be noticed otherwise marketing

process wont be effective at all. On the contrary at the time of the decrease of population the

demand falls. This is the reason at the time of doing marketing strategy the matter of

population must be analyzed. For example, Grameen Phone is one of the leading

telecommunication companies in Bangladesh. They have a product named Djuice. The

motive of this product is to capture the market of youth. So, the company has been setting upits advertisement, tariff, voice call and sms charges in a way that attracts the attention of

youth. As a result most of the youth use Djuice.

Changed Family Life

Now a days one can easily identify the changes of family life style such as- the growth of

working class women, income capability of women, adult marriage of women and the right of

divorce of women etc. also important for doing marketing strategy. For doing more services

or jobs outside home the household task of women has gone to the slave. And now we can

observe a crisis of slave. Actually the development of garment industry has created thisproblem. For this reason people are eager to do a less physical labored task. And prepared


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food, half cooked food, bread, washing machines etc. are used more. So, now we use packet

mashla, pressure cooker, rice cooker, washing machine, go to restaurants for food for save

our time but those things created market for the product and the marketers getting benefit

from their work and growing rapidly.

Education and Profession

Education rate and job distribution also be remembered at the time of doing marketing

strategy. Because the taste, choice, habit, communicating process cannot be same of an

educated and a non educated person. The some thought is applicable for the people of

different working people. Our education rate is increasing on a regular basis. Now people are

eager to do industrial job or service more than farming. These changes are very important for

marketing strategy.

Geographical Shift in Population

Geographically living of population and the shift of geographical living of population create

impact on marketing. For a lot of reason people tend to go to big cities. For this reason

peoples life style and their demand style are changing. Moreover, producing product for

tourist, job seeking people, businessmen is also profitable business. Besides, people are going

abroad and coming back to the country and making a change in their demand style which has

to be kept in mind to keep pace with the global growing market. In Bangladesh people want

to shift in Dhaka rather than other cities. So, market of this mega city is bigger than others.


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Impact of Economic Environment

In market not only people but also their buying ability is needed. Because buying ability less

market is for nothing. And buying ability rely on peoples earning condition, price of aproduct, savings and debt facilities. At the time of doing marketing strategy one must

remember the shift of earning as well as the spending. And by analyzing these one should

make their marketing policy. How economic environment effect marketing decisions are

given below:

Changing Income

Though our per capita income grows but customers real purchasing power falls for 3

decades. Increase rate of inflation, increase rate of unemployment, taxes, economicuncertainty also responsible for the downward shift of economic condition of customer. For

trade and foreign support some peoples purchasing power are increasing but limited earned

peoples condition getting worse day by day. In terms of Bangladesh, the farming products

price is not increasing keeping pace with the industrial product so the farmers condition are

getting worse day by day. In future price may increase so people tend to buy product and

storage. For this reason multinational companies are applying effective techniques for rural

class people. Radio advertisement, mini pack of product, buy at installment etc. are the major

example of this initiative. For example, people of Bangladesh are buying color TV rather than

black and white TV, they buying refrigerator, air conditioner, and cars like Lexus etc which

denotes their level of income increasing and the preferring higher standard of living. Now big

companies are in market they offering higher remuneration to the people who are searchingfor job. These people are joining there and increasing income which results in a market with a

high rate of cash flow.

Changing Consumer Spending Patterns

The spending patterns are different basis on earning patterns so their buying patterns also

different. Food, housing and transportation use up the most house hold income. As family

income rises, the percentage expense on food declines, spent on housing remains constant,and both the percentage spent on most other categories and that devoted to saving categories.

At the time of increasing of income the eating habit gets changed. Again the storage of

product or the shortage of product may cause the change of demand.

Changes in major economic variables such as income, cost of living, interest rates, and

savings and borrowing patterns have a large impact on the market place. Companies watch

these variables by using economic forecasting. Business does not have to be wiped out by an

economic down turn or caught short in a boom. With adequate warning they can take

advantage of changer in economic environment.


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We can say that now those demographic and economical environments help to take

marketing decisions.


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Impact of !atural Environment

For different types of business task and industrial activities our natural environment is getting

ruined. As a result of these situations before doing marketing strategy one has to be consciousabout the danger of natural environment. From 1960s people are started think about the

world natural loss. Since 2 decade this pressure is getting larger. In 1992 at reo de Jeniro the

capital of Brazil arranged the World conference. The air, water and sound pollution gets out

of control in a lot of cities. The decreasing rate of ozone level is a global threat to us. So a

marketing manager must concentrate on some natural issue. Such as-

Shortage of Raw Material

Assets can be divided as limitless but not increasable and limited but increasable. Asexample- air and water is unlimited but for some industrial reason these resources gets

polluted. For this reason mass consciousness is raised or some countries enforced law. Forest

and food is limited but it is possible to increase its production. To make run the forest or

wood related businesses we should start taking tree plantation measures. On the other hand

oil, gas, coal etc. natural resources are also problematic. Though these resources are enough

in some cases available but the expense to use these resources are increased a lot. So the

alternative resources are looked for or experimenting is going on to lessen the expenses.

Increase Cost of Energy

As an asset oil is very problematic for future development. Because the rich and developed

countries are depend greatly on oil. The problem will exist till the alternative source is not

introduced. As a result a lot of countries are trying to use solar energy or uranium energy.


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Increase of Pollution

Some industrial activities are undoubtedly harming the nature. The filth of factories

consisting of poison is polluting both soil and water. As a result taking food seems

threatening. As example- the effect of uranium blast of Chernobyl is still active. Now peopleare unwilling to take some type of food. In Bangladesh the growth rate is too high to

describe.

Government in Natural Resources Management

Many government organizations are acting against natural caring. In Bangladesh a

government organization named Bangladesh Poribesh Dushon Odhidoptor is working. This

organization mainly enforced law to those who used highly harmful machineries to nature

and force them to use highly expensive non harmful machineries. Government can impose agroup of people to protect the harmful activities of companies & make people aware about

importance of natural resources.

So, marketing manager must pay attention to natural situation at the time of using asset. In

near future government and naturalist will enforce more pressure. Marketing manager must

obey them and come forward to solve natural problem.


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Impact of Technological Environment

Technological environment consists of some elements by which new product are being

developed. For this reason, marketing has to face new threats, problems & sources ofcreation.

Faster Pace of Technological Change

Technology is changing day by day. A company must have to fix their step accordance with

the technological changes. Otherwise, it is impossible to survive in the market competition.

At the present day all types of communication are done by modern technology. To marketing

goods in BD one has to stay connect with modern technology. Now think about the

communication process of the organizations. In past, they used the classical telephone forcommunication which sometimes makes disturbance & non-transferable. But at a present day

they use mobile which is easier than telephone. One should take the advantages about the

modern technology.

Unlimited Opportunities

There lie unlimited opportunities for inventing new technology. Mans are trying to invent

following services:

Use of solar power

Anti-biotic of cancer

Precaution for AIDS

Electric cure system

All of these are mostly safe in terms of technology. The main purpose of that is reducing the

production cost. In marketing, one of the topics is Thinking about others. If all use the

unlimited opportunities of technology one must use this to market his/her goods in BD. If all

of these prove as a best one should use the technology to minimize the production cost &

market the goods in Bangladesh in a short time.

High Research & Development Budget

For better production one company may require a group of people for research the market &

requite a group of expertise for proper budget in production which will help to take part in

competition with others. Sometimes it seems that the authority of the marketing department

spends a huge amount of money for research & development budget whereas they forget

about the product. Along with research one should take his/her eye on the product.


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Concentration on Minor Improvement

The cost of invention of modern technology, new product, development of services, and

market the best good & services has been increased. So, many companies try to improve

minor part of the goods rather than big invention. Many companies try to create a duplicatecopy of the same product which is made by others. One should take his/her mind on it that

one cant misuse his/her trademarked or duplicate the same product style.

Increased Regulation of Technological Change

All technology will bring happiness for us. This is not right in all cases. Every creation has

two sides one is good & other is bad. We all have to keep in mind. For using new technology

we have to follow the rules & regulations regarding this matter. For better control we can

impose new law. In a short, marketers have to follow the rules & regulations whenproducing/ marketing a new goods & services.


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Impact of "olitical Environment

One of the important parts of the micro environment is political environment. In general, law

of the state, govt. agencies & other controlling groups put a great impact in the wholemarketing system.

Impact of this environment in marketing goods is classified into three major groups. These

are:

Legislation Regulating Business

Now a days controlling act has been increased. There are three reasons. Thats are

To protect the company

Save consumer against unfair performance of producers

Save the society against dishonest business man

Bangladeshi marketing system are influenced by the following act

Patent act-1911

Design act-1911

Trade mark act-1940

Bangladesh agriculture foods market control act-1964

Bangladesh pure food product section-1959, etc

All of these have a great impact in marketing a new goods/ services. Marketers have to open

eye relating to law when launch a new product or even services.

Changing Government Agency Enforcement

In every country including Bangladesh have some agencies which are created for observing

wheatear the act is being followed or not. Sometimes they are become so much active &

sometime it becomes freeze. All of the employees of those agencies are expert of this matter.

Their decision left a great impact in marketing goods & services. In Bangladesh the

enforcement of this related group is higher than others countries of the world.

Increases in Public Interest Group

In the marketing system public interest group is now one of the major one. They increase the

consumer power & rise voice against unfair activities. In Bangladesh there has some agencies

but the major one is Consumer Association of Bangladesh (CAB). In general they work for

consumers well being. These groups also have an impact in marketing goods. All of these

types of group are formed only for save the consumers from the unfair business man. They

publicity the consumer laws in a worldwide for increasing awareness among the customers.


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Impact of #ultural Environment

Cultural environment is the combination of different organization and forces which affects a

societys basic value, perception, preference and behavior. People grow up in a particularsociety that shapes their beliefs and values. They absorb a worldview that defines their

relationships with others. Bangladesh is a country which is very much rich with its culture

and culture related options. These cultures make different this country from others. Its

different cultural view and different factors seriously affect its overall marketing and

business. Cultural environment has some important influences which affect the overall

marketing of the business and commerce of that particular environment. Those elements are

discussed below:

Persistence of Cultural Values

People in a given society hold many beliefs and views. Their core belief and values have a

high degree of persistence. For example, Bangladeshi people are peace loving, getting

married for once, strongly hold their religion and being honest. These beliefs shape more

specific attitudes and behaviors found in everyday life. Core beliefs and values are passed on

from parents to children and are reinforced by schools, colleges, universities, and business

and so on.

Secondary beliefs and values are more open to change. Believing in marriage is a core belief;

believing that people should get married early in life is a secondary belief. Marketers have

some chance to change their secondary belief but little chance to change their core belief. Forexample, people need food is a core thing but which food or where they should eat is a

secondary belief and marketers can influence them. For instance Bengali customer of a

burger of must prefer beef burger rather than ham burger because of their cultural belief.

Sub-cultures

Every culture has some sub-cultures. People of sub-cultures belief, ethics, attitude etc are

like to be core culture but they have secondary beliefs. Like rich people. They have differentthinking from the other people and they have different life style. They like to present them as

different from others.

Peoples view of others

In past decades, observation has noticed several shifts in peoples attitudes towards others.

People now demand TV set, DVD set etc with high and latest technology because other

people have them and they like to follow others. Now we have internet connection, cable

connection which made our life fast and for them we need not to go outside for enjoying anopen air concert because we can watch them through CD or cable or internet.


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Shifts in secondary cultural values

Although core values are fairly persistent, cultural swing do take place. Consider the impact

of music group, actors, models, and other celebrities on general peoples hair style and

clothing norms. Marketers want to predict cultural shifts in order to spot new opportunities.For example, people need to communicate with each other. Fixed telephone system was the

key for communication in ten to twelve years ago. But that time launched mobile phone

which is wireless and now mobile phone is a key factor for communication and marketers

made it possible and mobile phone market is a big market in Bangladesh now. So, marketers

shifted the cultural value.

The major cultural values of a society are expressed in peoples views of themselves and

others, as well as in their views of organizations, society, nature and the universe.

Peoples view of themselves

Peoplevary in their emphasis on serving themselves versus serving others. Some people want

personal pleasure, wanting fun, change and escape. Others seek self-realization through

religion, recreation, or other personal goals. People use product service and brand as a mean

of self-expression and they buy product which match their views of themselves. Two

examples

People with high income may want to wear clothes of Yellow, Rich Man, Cats eye etc they

also want to buy foot wears of Hush Pappies, food of Heerajheel, fast food of KFC etc. But a

man with lower income can not afford them they want things with low price.Adventuresome individuals rarely follow a single path or the same thing twice. Although they

may be appreciative of the art like photography but they are more likely to engage in

dangerous activity. They like to view themselves doing things other would not dare to do. A

very practical example of it is a person- Musa Ibrahim, a true hero of Bangladesh, who

recently climbed up the Mount Everest.

Marketers produce and serve or sell their product to the customers based on self-views.


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Peoples view of organization

People vary in their attitudes toward corporations, government agencies, trade unions,

universities and other organizations. By and large, people are willing to work for major

organizations and expect them. Basically people need their satisfaction from a company. Sayfor example, in banking industry, those banks has greater customer demand who gives more

satisfaction and desired level service. People want to admit in a university with name and

fame from the view point of education such as University of Dhaka. People basically use

Grameen Phone network for its good network and coverage on the other hand people need

cheap rates can rely on Warid network.

People also want to get a job in a big company with name and fame, well capital structure,

growth, general acceptance and with a good remuneration. Many people today see work not

as a source of satisfaction but a required chore of earn money to enjoy their nonworking

hours.

Afore said suggest that companies need to find new way to win consumer and employeeconfidence.

Peoples view of society

People vary in their attitude toward their society; patriots defend it, reformers want to change,

malcontents want to leave it. Peoples orientation to their society influence their consumption

pattern and attitude toward the market place. We see our freedom fighters who are truly

patriot. In the year 1971 we have got our freedom. We have got it through passion, sacrificingthe life of 3 million people. This war basically started after 1947 and we finally got it through

the hard job of freedom fighters that are called patriotic.

Marketers respond with patriotic products and promotion, offering everything from flower

bouquet to cloths with patriotic theme. Although, most of these marketing efforts are tasteful

and well received. Waving green and red can prove tricky. Markets must take care when

responding to such strong natural emotions.

Peoples view of nature

Peoples attitude varies in case of nature. Some feel ruled by it, some are harmony with it and

some want to master it. Few decades ago peoples thinking was mastering over nature. But,

recent time they recognized that nature is finite and fragile and it can be destroyed by human

being. So, people are trying to save the nature. They are riding hybrid cars, avoiding

polythen, reducing the use of chemical fertilizer, establishing waste management, introducing

environment law etc. So marketers now trying to produce and serve environment friendly

product. Because, the awareness of customer toward the nature. People now know if we can

save nature we can save ourselves.


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Peoples view of universe

People vary in their beliefs about the origin of the universe and their place in it. People follow

the thing which is well known globally. People want a higher position, broad communication

through internet and so other technology. So, marketers should observe the market to knowthe material which influences them.

So, cultural environment is very much important for a marketer, who works in countries like

Bangladesh, to observe and work with it. Peoples demand depends on it. Marketing of drinks

like vodka is not possible in Bangladesh as Russia because of this countrys peoples cultural

point of view. So, to generate profit and capture the market marketers should observe the

cultural influences and the basic factors of a culture.


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Methodology

We have collected our data & information from internet sources like Wikipedia, Books of

Business, Business dictionary collection for students and other related sources. We also

collected our information from our text books named Principles of Marketing By Philip

Kotler, Gary Armstrong & other renowned writers books.

$ources of information

Basically we have collected our information from different kinds of educational websites.

Among those we used Wikipedia as a major website for this assignment. Our assignment is

constructed based on secondary information. So information given here may be inaccurate.


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Our especial thanks go to:

MD. Omar Faruque,

Course Instructor/Lecturer,


Faculty of Business Studies,

Jagannath University, Dhaka.


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The information/ data collected from the magazines related to communication process andalso from the internet. We especially browsed www.businesswikipedia.com. Beside this, we

also browsed www.google.com/macro+environment; www.google.com/ME; wekipedia.com

to collect more information about this topic.

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