Term Paper

On

Defects of Marketing System in Bangladesh and how these problems can be

removed or resolved

Prepared for:

Dr. Belayet Hossain

Professor

Department of Marketing

Faculty of Business of Studies

University of Dhaka

Prepared by:

Sanoy Saha

ID: 78

Section: A

Batch: 21st

Department of Marketing

University of Dhaka

Date of Submission: 8th September 2019.

Introduction
The objective of this term paper is to sort out the defects of Marketing System in Bangladesh.
The implication of the task given by our honorable course instructor exhibits creativity and
can be classified into two dimensional process. The first one is Drawbacks of Marketing
systems in Bangladesh and another one is providing recommendations to eradicate these
predicaments or come up with effective solutions.

As we move into the new century, trends in market system becomes more prominent and
diverse parallel with dynamic preferences of the customers. Do they have adequate resources
to enhance the market system and respond to customer feedback with positive results? A
significant number of marketers are executing their activities to compete with global and
local brands based on product improvement and introducing new technologies. But they are
not considering what customer is actually expecting beyond a product’s generic feature. So
“Market Myopia” commences.

Marketing Defined
Marketing is the process of determining the needs and wants of consumers and being able to
deliver products that satisfy those needs and wants. Marketing includes all of the activities
necessary to move a product from the producer to the consumer.

Many people think of marketing only as selling and advertising. And no wonder—every day
we are bombarded with television commercials, newspaper ads, direct-mail campaigns, and
sales calls. However, selling and advertising are only the tip of the marketing iceberg.
Although they are important, they are only two of many marketing functions and are often
not the most important ones.

Now here are some important and popular marketing definitions.

The AMA managerial define: Marketing is the process of planning and executing the
conception, pricing, promotion, and distribution of ideas, goods, services to create exchanges
that satisfy individual and organizational goals.
Dr. Philip Kotler defines marketing as “the science and art of exploring, creating, and
delivering value to satisfy the needs of a target market at a profit”. Marketing identifies
unfulfilled needs and desires. It defines measures and quantifies the size of the identified
market and the profit potential. It pinpoints which segments the company is capable of
serving best and it designs and promotes the appropriate products and services.”

Professor Philip Kotler explained that marketing was “meeting the needs of your customer at
a profit.” For me that definition extends beyond just communicating product features.
Marketers are responsible for a 360-degree experience. For example, in the social media
world, a customer’s Twitter needs may differ from her needs to “play with the brand” in
terms of a social game promotion. Every customer touch point from customer service to sales
to accounting and more are part of the “new marketing.”
Market Scenario in Bangladesh

Over the past two decades, marketing situation in Bangladesh has been change rapidly.
People once used to have the idea that marketing is nothing but just selling the product, and
they have to portrait the image of marketer as a salesperson.

It was in near past, we can recall there were many salespersons that use to sell the product by
door to door. Especially at that time the products was Shampoo, soap, other FMCG products.
Later on base on this trend they have adopted other products. It also ensures some short of
new dimension of marketing. Now in this 2010 after decade the marketing concept is
changed dramatically after the rapid growth of mobile phone industry and many other MNC
companies.

Market defects are often associated with information, non-competitive markets, principal–
agent problems, externalities, or public goods. The existence of such situation is often used as
a justification for government intervention in a particular market. However, some types of
government policy interventions, such as taxes, subsidies, bailouts, wage and price controls,
and regulations, including attempts to correct market problems, may also lead to an
inefficient allocation of resources, sometimes called government failure. Thus, there is
sometimes a choice between imperfect outcomes, i.e. imperfect market outcomes with or
without government interventions.

The prominent drawbacks in marketing

system in our country
Abundance of “market Myopia”:
The marketing concept emphasizes on knowing the needs and wants of target market and
delivering the desired satisfaction better than competitors do. It is a “sense and respond”
philosophy rather than a “make and sell” philosophy that results in marketing myopia, i.e.
focusing only on a company’s products.

Companies in Bangladesh are stuck with the traditional product and selling concepts,
whereby they aim to “find the right customers for products rather than finding the right
products for customers.” The terminology; “customers are always right”, is nothing but a
ambiguous term now a days. Product concept is characterized by continuous product
improvements whereas selling concept emphasizes large-scale selling and promotion effort.
Customer satisfaction is lost amidst sales transactions. The following examples illustrate the
prevailing market myopia in Bangladesh in the 21st century.

Solution to mitigate Marketing Myopia:

To come out of this marketing myopia, organizations must develop empathy and a two-way
communication. Put ourselves in the shoes of a customer and ask our self: how would I like
to be treated? If you cannot do that, look for cues from the customers themselves.

Targeting specific markets: Before beginning to prospect, and salespeople should identify
those markets and industries that would benefit the most from their individual print shop’s
capabilities. A good way to identify an appropriate market is to look at existing satisfied
customers. For example, a shop with a good bit of success with hospitals could successfully
build new business relationships with other hospitals. Salespeople will find that companies in
the same market have similar problems. Also, they generally are organized, make decisions,
raise funds and communicate to their customers and stockholders
in a similar way. There are plenty of markets for printing applications including legal,
financial, nonprofit, advertising, manufacturing and education.

Identifying “hot” applications: Within each market, find out which printing applications the
market needs and compare them with the applications your shop can support. Think beyond
price, quality and turnaround. Look for printing applications and communication services that
solve important customer business problems. Pay special attention to applications that can
differentiate your shop from others. Solutions could include inventory management,
customer-friendly billing programs, Web-to-print ordering, graphic design, Web development
and specialized printing applications.
Tailoring products and services: Once the markets and applications are identified, create
custom presentations for each market. Be creative with visual aids, they often leave the
longest lasting impression with prospects. Potential sales material could include examples of
past work, company information, white papers, customer references, customer testimonials
and case studies illustrating strong customer
ROI.
Developing sales approaches: Identify the appropriate contact person within every
prospective account then prepare selling approaches for each person. Successful salespeople
create sales approaches that draw upon their professional skills such as the ability to get an
appointment, generate interest in the shop’s services, ask thoughtful questions, handle
objections and close the sale.

Following through: Put all your careful preparation to use by calling the prospects on your
list of targeted accounts. Go out there and sell.

When thinking of prospecting for new customers, I am reminded of an old German proverb:
“What’s the use of running if you are not on the right road.” Carefully planning, targeting and
executing effective sales calls will put printing salespeople on the right road to earning new
customers.
Hidden Monopoly in Free market
A complimentary market economic system makes sure a new cut-throat market where the
legal rights regarding potential buyers together with sellers are usually guarded. An industry
will be cared for while totally free market any time that complies with these problems —
cost on the product will be repaired through bargaining, there will not any action obtained
simply by anybody to regulate requirement and offer, there will not any action obtained
simply by authorities to repair rates, and so on.
Although, what exactly goes by the particular title regarding totally free market economic
system throughout Bangladeshi market? Will it be a no cost market? Here sellers will never
compromise while using potential buyers. Your sellers deal with the values, causing the
particular potential buyers with no possibilities. The initial problem regarding totally free
market economic system can be, therefore, lacking.
They possess various committees along with cooperatives or syndicates. Rather than cost
solving through buyer/ home owner bargaining, syndicate market leaders deal with rates to
maximize the revenue. In contrast, potential buyers are usually tossed. They do not possess
almost any system for you to kitchen counter the particular syndicates or sellers’ message
boards. The US government in addition doesn’t seek to kitchen counter this syndication,
along with, sad to say, doesn’t acknowledge the particular lifetime regarding this kind of
syndicates.
Bangladesh is really a so-called democratic state. Throughout the selection, presented every
all 5 several years, political celebrations acquire profits from these types of organization
areas to satisfy the particular selection outlay on the gathering. Because of this, following
receiving the particular selection, many people never ever seek to cease this kind of
syndication on the sellers. The real thing, is a fantastic amounts of organization market
leaders are engaged throughout governmental policies. These people invest in nominations
from unique celebrations to take care of a new constructive organization atmosphere with
regard to themselves.
The second most critical problem regarding totally free market economic system can be that
will not any class will conflict throughout curbing requirement and offer. Although many of
us make sure organization syndicates manage the particular offer along with build a good
manufactured crisis available in the market to increase rates on the goods. Because of this,
inflation comes about, making individuals lifestyles complicated. The us government never
ever attempts for you to sense of balance the particular supply of items available in the
market through its sections, like TCB and the like.
Another problem regarding totally free market economic system can be which the
authorities never ever intervenes throughout cost fixation. Your beyond governments
received efficiently performed this part.
After thinking of all the previously mentioned factors, it is pretty obvious that people are
certainly not enjoying the particular features regarding totally free market economic system.
We are being exploited inside the title regarding totally free market. Overall monopoly
could be superior to this atmosphere, mainly because one class regulates a new industry
inside the monopoly market. After doing the qualified revenue they will lower selling price
of the distinct product.
In case many of us look at Ms Company, many people make revenue inside the application
market practically such as a monopoly (though many people did not get whole monopoly as
a result of involvement on the PEOPLE government).
There’s no big difference among a determination obtained simply by one individual, or one
simply by several grouped sellers. With Bangladesh, the marketplace structure looks like a
no cost market, although can be monopolistic throughout character through syndication.
Exactly why fertilizer is not available in the open market at authorities repaired cost? Just
how would it be offered at a greater cost? For the reason that the particular sellers are
usually united, along with guaranteed that will there will be not any fertilizer available in
the open market with the exception of on the cost remedy it. In this particular situation
authorities isn’t taking almost any actions to modify rates, or which makes it available in the
open market through TCB or various other authorities businesses.
Ultimately, that’s being afflicted? Farmers along with normal individuals are being
exploited. In case character don’t get fertilizer in the open market and then generation will
be hampered. It will have an emergency available in the market, that will accomplish
additional improve regarding cost regarding basics.

Solution to mitigate this dilemma:

Monopoly power can be solved the following ways.

⮚ Making the monopoly more competitive– antitrust policy: The antitrust laws allow
the government to prevent monopoly by preventing anticompetitive mergers. The laws
restrict behavior that is deemed to be anticompetitive.
⮚ Regulating the behavior of the monopoly: Price regulation is commonly used to
address the problem of natural monopolies such as water and electric companies.

⮚ Public ownership: The incentive structure can impacted by public ownership

⮚ Liberalization of Markets: Deregulating markets enables new firms to enter and

compete with the existing monopoly. For example, this occurred in telecoms, gas and
electricity. However, some industries are natural monopolies and therefore  in these industries
it is difficult to encourage new firms. To some extent, the UK government overcame this
through increasing access to gas and electricity infrastructure.

⮚ Merger Policy: This prevents an increase in monopoly power when two firms joining
together. Can be useful in preventing monopolies but not dealing with existing monopolies.

⮚ Regulation: Regulations like; Price capping or windfall taxes. Price capping is used
for privatized utilities e.g. CPI – X. However, regulators may be subject to regulatory
capture.
Unfair Market Condition:
Provincial discrimination is a growing concern in Bangladesh. Bangladesh during the pro-
independence period experienced serious regional inequity. Policy actions to address regional
inequity require information about the nature, extent and trends in regional inequality. An
attempt is made in this paper to analyze regional inequality in Bangladesh. Regional inequity
may be analyzed on issues related to growth, income inequity and poverty.

Variations among districts in terms of growth in agriculture and total GDP. Results indicate
that level of agricultural growth and share of non-farm household in the district have
significant contribution to the overall growth of the district overall growth of the economy of
Bangladesh depends to a large extent on the performance of its agriculture sector.
Agricultural growth depends on the growth rates of its subsectors. Growth rates in service
sector of the district also have positive and significant effect on the level of agricultural
growth. Human Poverty Index (HPI) has significant negative impact on agricultural growth
indicating that districts with high human poverty (in other words low human capital)
achieved lower level of agricultural growth.

Revenue share from agriculture to the total income has declined over time but share of
business and commerce and professional wages and salary has increased (Table 22). In rural
areas also share of income from agriculture declined and share of non-farm income sources
has increased over time.

Proportion of landless household had a significant negative effect on per capita income level.
This is quite obvious due to the fact that districts with large number of families (with most
production income generating asses, land) had lower level of per capita income. One
implication of these findings is that to raise the average income level of this negative and
particularly for the landless community. Government must take actions so that less endowed
people can have greater access to new productive assets such as solar dryer, power tiller,
power pump, harvester, thresher, etc.
Bangladesh would need proper allocation for development projects so that less fortunate can
effectively take advantage of those. The concerns of access to new productive assets are also
imperative.
Solution to overcome this predicament:

Effort to report unfairness through the market system may cause more difficulties than it
solves. The government must now address the surplus. An equitable distribution of resources
may require more than income transfers. Merit Good- a good or service to which society
deems everyone is entitled in some amount. Government intervention may be required to
ensure that these standards are met. Following are some solutions:

• Scrutinize the trends in growth, poverty and income inequality in Bangladesh.

• Investigative & exercising relationship between economic growth, income inequality

and poverty in Bangladesh.

• Give policy proposals to raise growth, reduce income inequality and poverty in
Bangladesh.

Prominence of Deregulation:

There are some deregulated industries such as a few financial sectors, electric utilities etc.
The impact of trade liberalization and of market deregulation in general, on the performance
of agriculture remains contentious and empirical issue in the literature. Due to de regulation
there is an outcome of growing concerns around the world about the prevailing inefficiencies
in agriculture and agribusiness and the need to improve productivity, profitability, and
financial sustainability of agriculture and agribusiness by privatizing state- owned enterprises
and eliminating unnecessary government guidelines.
Initiatives to counter Deregulation:

The competence differences are largely explained by farm size, infrastructure, households off
farm income and the reduction of government anti-agricultural bias in relation to trade and
domestic policies. The implication of these results suggests the need for further policy reform
to augment fruitful value in this aspect.

Disseminated Public Goods and Services:

Unique characteristic of a public product is not the sector that provides the good. Some public
products are provided by the private sector and many private goods are provided by the
public sector. National defense services of security, TV or radio broadcast, highways,
libraries and parks are example of public assets.

Based on Bangladesh's history of tumultuous politics, the country is less likely to improve in
terms of political stability and governance. Development has not been stable, mainly due to
political will and commitment. Democracy and governance in Bangladesh, still plagued by
violence, corruption, outdated laws, abuse of human rights, absence of rule of law, non-
accountability, and heavy politicization of all government institutions including the judicial
system. It is observed that we need strong political leadership with commitment to fight
against deep rooted corruption, non-accountability, no transparency and inefficiency is
imperative for establishing good governance and to ensure sustainable development. Keeping
all these issues in consideration, this research paper discusses governance and good
governance related issues and sustainable development. It also provides a set of
recommendations based on this analysis.

Solution to this problem:

Market can sometimes solve the free rider problem, allowing market provision of the pure
public good. But the good is likely to be under provided often no provision would occur.

If this is the case of an excludable public good, those who don’t contribute will generally be
excluded if the good is provided by the private sector. Because the marginal social cost of
extending the benefits to another person is zero, this is unproductive.
Conclusion

Marketing functions within a vibrant worldwide environment. Quick changes can quickly
make yesterday’s winning strategies outdated. In the next century marketers will face many
new challenges and opportunities. To be successful, companies will have to be strongly
market focused. Today’s successful companies—whether large or small, for-profit or
nonprofit, domestic or global—share a strong customer focus and a heavy commitment to
marketing.

A marketer has also to take into account the value that it is creating and is conveyed or
deliver it to the customers. Making the connection between initiatives and the incremental
profits generated requires effective identification of the underlying drivers where the brand
can influence customer behavior. The correlation between these key brands attributes and the
value created is done through a combination of market research and modeling.

As we venture into the next century, companies are wrestling with changing customer values
and orientations; a sluggish world economy; the growth of nonprofit marketing; the
information technology boom, including the Internet; rapid globalization, including increased
global competition; a call for greater ethical and social responsibility; and a host of other
economic, political, and social challenges.
 References:

Websites:

1) www.intracen.org
2) www.theindependentbd.com
3) www.intellectives.com
4) www.assignmentpoint.com
5) www.epb.gov.bd
6) www.wikipedia.com
7) www.asiatradehub.com
8) www.investopedia.com
9) www.trendwatch.com
10) www.slideshare.com

11) www.mckinseyquarterly.com

12) www.mbaskool.com
13) www.ehow.com
14) www.knowthis.com

Newspapers, Articles, Text Book

I.The Daily Independent

II.“Stave off Marketing Myopia with solid prospecting” , Joe Rickard
III.The Daily Star
IV.The Financial Express