Question number 1

Commercial Bank of Ethiopia (CBE) is the largest commercial bank in Ethiopia As

of June 2015 it had about 86.5 billion birr in assets and held approximately 63.5% of deposits
and about 38% of all bank loans in the country. The bank has around 22,000 employees, who
staff its headquarters and it’s over 500 branches positioned in the main cities and regional
towns. The latter include 45 branches in the national capital Addis Ababa. With the opening of
a branch in the Gechi in the Illubabor Zone of the Oromia Region, CBE's banking network has
reached above 950 branches. The functions performed by banks, since recently, are becoming
customer-centred and are widening their functions. Generally, the functions of commercial
banks are divided into two categories: primary functions and the secondary functions.

Commercial banks perform various primary functions; some of them are given
below: Commercial banks accept various types of deposits from public especially from its
clients, including saving account deposits, recurring account deposits, and fixed deposits.
These deposits are payable after a certain time period Commercial banks provide loans and
advances of various forms, including an overdraft facility, cash credit, bill discounting, money
at call etc. They also give demand and term loans to all types of clients against proper security.
Credit creation is most significant function of commercial banks. While sanctioning a loan to a
customer, they do not provide cash to the borrower. Instead, they open a deposit account from
which the borrower can withdraw. In other words, while sanctioning a loan, they automatically
create deposits, known as a credit creation from commercial banks.

Commercial Bank of Ethiopia building in Ababa commercial bank is a type

of bank that provides services such as accepting deposits, making business
loanand Commercial banks offer a full range of retail banking products and services, such as
checking andsavings accounts, loans, credit cards, and lines of credit to individuals and busines
s.Most commercial banks also sell certain investments and many offer full brokerage and finan
cial planning services. Commercial bank can also refer to a bank or a division of a bank that
mostly deals with deposits and loans from corporations or large businesses, as opposed to
individual members of the public retail banking. In the term commercial bank was often used
to distinguish it from an investment bank due to differences in bank regulation. After the great
depression, through the Glass–Steagall Act the Ethiopian congress required that commercial
banks appeal customer by the system of lottery prise advertising promotion through mass

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media, engage in banking activities, whereas investment banks were limited to capital
markets activities.

The name bank derives from the Italian word banco desk/bench used during

the Renaissance era by Florentine bankers, who used to make their transactions above a desk
covered by a green tablecloth. However, traces of banking activity can be found even in
ancient times. Some have suggested, the word traces

its origins back to the Ancient Roman empire where money lenders would set up their stalls in
the middle of enclosed courtyards calledmacella on along bench called a bancu, from which
the words banco and bank are derived. As a moneychanger, the merchant at the bancu did not
so much investment money as merely convert the foreign currency into the only legal tender in
Rome that of the imperial mint. The role of commercial banks commercial banks engage in the
following activities: 1;processing of payments by way of telegraphic transfer internet banking,
or other means issuing bank drafts and bank cheques 3 accepting money on term deposit 4;
lending money by overdraft, instalment loan, or other means 5; providing documentary and
study, guarantees, performance bonds, securities underwriting commitments and other forms
of off balance sheet exposure cash management and treasury merchant banking and private
equity finance traditionally, large commercial banks also underwrite bonds, and make
markets in currency, interest rates, and credit-related securities, but today large commercial
banks usually have an investment bank arm that is involved in the bank. A secured loan is a
loan in which the borrower pledges some asset e.g. a car or property as collateral for the loan,
which then becomes a secured debt owed to the creditor who gives the loan. The debt is thus
secured against the collateral in the event that the borrower defaults, the creditor takes
possession of the asset used as collateral and may sell it to regain some or the entire amount
originally lent to the borrower, for example, foreclosed a portion of the bundle of rights to
specified property. If the sale of the collateral does not raise enough money to pay off the debt,
the creditor can often obtain a deficiency judgment against the borrower for the remaining
amount. The opposite of secured debt/loan is unsecured debt, which is not connected to any
specific piece of property and instead the creditor may only satisfy the debt against the
borrower rather than the borrower's collateral and the borrower. A mortgage loan is a very
common type of debt instrument, used to purchase real estate. Under this arrangement, the
money is used to purchase the property. Commercial banks, however, are given security on the
title to the house - until the mortgage is paid off in full. If the borrower defaults on the loan,
the bank would have the legal right to repossess the house and sell it, to recover sums owing to

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it. In the past, commercial banks have not been greatly interested in real estate loans and have
placed only a relatively small percentage of assets in mortgages. As their name implies, such
financial institutions secured their earning primarily from commercial and consumer loans and
left the major task of home finance to others. However, due to changes in banking laws and
policies, commercial banks are increasingly active in home financing. Changes in banking
laws now allow commercial banks to make home mortgage loans on a more liberal basis than
ever before. In acquiring mortgages on real estate, these institutions follow two main practices.
First, some of the banks maintain active and well-organized departments whose primary
function is to compete actively for real estate loans. In areas lacking specialized real estate
financial institutions, these banks become the source for residential and farm mortgage loans.
Second, the banks acquire mortgages by simply purchasing them from mortgage bankers or
dealers. In addition, dealer service companies, which were originally used to obtain car loans
for permanent lenders such as commercial banks, wanted to broaden their activity beyond their
local area. In recent years, however, such companies have concentrated on acquiring mobile
home loans in volume for both commercial banks and savings and loan associations. Service
companies obtain these loans from retail dealers, usually on a nonrecourse basis. Almost all
bank service company agreements contain a credit insurance policy that protects the lender if
the consumer defaults. Unsecured loan Unsecured are monetary loans that are not secured
against the borrower's assets no collateral is involved. There are small business unsecured
loans such as credit cards and credit lines to large corporate credit lines. These may be
available from financial institutions under many different guises or marketing packages:
bank overdrafts bonds credit debt credit facilities or lines of credit personal loans A corporate
bond is a bond issued by a corporation. It is a bond that a corporation issues to realise
money in order to expand its business. The term is usually applied to longer-term debt
instruments generally with a maturity date falling at least a year after their issue date. The term
commercial paper is sometimes used for instruments with a shorter maturity. Sometimes the
term corporate bonds" is used to include all bonds except those issued by governments in their
own currencies. Strictly speaking however, it applies only to bonds issued by corporations not
to bonds of local authorities and supranational organizations. Corporate bonds are often listed
on major exchanges bonds there are called listed bonds and like Bonds.com and market access
and the coupon or interest payment is usually taxable. The philosophies of commercial bank of
Ethiopia are more or less applicable in the country. However, the policy of the commercial
bank of Ethiopia in other causes not functional due to rule and regulation of the central bank of
Ethiopia means commercial bank governed or controlled by central bank, sometimes this
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coupon can be zero with a high redemption value. However, despite being listed on exchanges
the vast majority of trading volume in corporate bonds in most developed markets takes place
in decentralized dealer-based over-the-counter markets. Some corporate bonds have an
embedded call option that allows the issuer to redeem the debt before its maturity date. Other
bonds known as convertible bonds allow investor to convert the bond into equity. Corporate
credit spreads may alternatively be earned in exchange for default risk through the mechanism
of credit default swaps which give an unfunded synthetic exposure to similar risks on the same
Reference Entities However, quite volatile credit default swaps 'basis' make the spreads on
credit default swaps and the credit spreads on corporate bonds be significantly different. Assets
and liabilities of Commercial Banks in the United States Glass-Steagall Act mortgage constant
functions Commercial banks perform many functions. They satisfy the financial needs of the
sectors such as agriculture, industry trade communication, so they play very significant role in
a process of economic social needs. Along with primary functions, commercial banks perform
several secondary functions, including many agency functions or general utility functions. The
secondary functions of commercial banks can be divided into agency functions and utility
functions. The agency functions are the following: To collect and clear cheque, dividends and
interest warrant. To make payments of rent insurance premium, etc. To deal in foreign
exchange transactions. To purchase and sell securities. To act as trustee, attorney,
correspondent and executor. To accept tax proceeds and tax returns. The utility functions are
the following: To provide safety locker facility to customers. To provide money transfer
facility. To issue travellers cheque. To act as referees. To accept various bills for payment:
phone bills, gas bills, water bills, etc. To provide merchant banking facility. To provide various
cards: credit cards, debit cards, smart cards, After the Ethiopian-English victory over Fascist
Italy, the new government established the State Bank of Ethiopia a proclamation issued in
August 1942. State Bank of Ethiopia commenced full operations on 15 April 1943 with two
branches and 43 staff. It served both as the Ethiopia's central bank with the power to issue
bank notes and coins as the agent of the ministry of finance, and as the principal commercial
bank in the country. In 1945 the Ethiopian government granted the bank the sole right of
issuing currency. The first governor of the bank was an American, George blowers. He
inaugurated the new national currency, which owed its successful introduction to the United
States. The United States provided the silver for 50 cent coins, whose intrinsic value ensured
popular acceptance of the new paper money to a population used to the circulation of the silver
Maria Theresa thaler. In 1958, the State Bank of Ethiopia established a branch
in Khartoum, Sudan. The Sudanese government nationalized in 1970At some point the State
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Bank also opened a transit office in Djibouti, and over time grew to number 21 branches. In
1963, the Ethiopian government split the State Bank of Ethiopia into two banks, the National
Bank of Ethiopia the central bank and the Commercial Bank of Ethiopia (CBE).Seven years
later, the Sudanese government nationalized the Commercial Bank of Ethiopia's branch in
Khartoum. The Ethiopian government merged Addis Bank into the Commercial Bank of
Ethiopia in 1980 to make CBE the sole commercial bank in the country. The government had
created Addis Bank from the merger of the newly nationalized Addis Ababa Bank, and the
Ethiopian operations of the Banco di Roma and Banco di Napoli. Addis Ababa Bank was an
affiliate that National and Grind lays Bank had established in 1963 and of which it owned
40%. At the time of nationalization, Addis Ababa Bank had 26 branches. In 1991,
when Eritrea achieved its independence, CBE lost its branches in Eritrea to nationalization.
These branches formed the base for what became in 1994 the Commercial Bank of Eritrea.
Also in 1994, the Ethiopian government reorganized and re-established CBE.A few years ago,
the government restructured CBE and signed a contract with Royal Bank of Scotland for
management consultancy services. After the death of its former President, Mr Gezahegn
Yilma, the Board of Management appointed Mr Abie Sano as a new President of the Bank.
Parliament recently increased the Bank's capital to 4 billion Ethiopian Birr. At some point CBE
had a branch in Djibouti that it has since closed. Social Marketing was officially born as
phenomena in 1971 with an article in the Journal of marketing by Kotler and Zaltman, where
they discussed the use of commercial marketing methods for social issues. It was and still is a
widely debated and discussed phenomenon. There are important similarities between
Commercial marketing and social marketing such as customer orientation, exchange theory,
marketing research, segmentation, the use of the marketing mix and the focus on monitoring
and evaluation but also substantial differences when it comes to the product, the gain/profit,
the behavioural change and the type of competitive environment. The main components of
Social Marketing are marketing research, segmentation, product, price, place, and promotion.

Kotler et al (2002) defined Social marketing as social marketing is the use of marketing
principles and techniques to influence a target audience to voluntarily accept, modify, or
abandon a behaviour for the benefit of individuals, groups, or society as a whole. Social
marketing in a developing country context has been widely used to promote social changes in
for example family planning, public health and HIV/AIDS. Some of the programs have been
very successful such as The Brazilian Breast feeding program. Organizations like UNICEF,
The World Bank, USAID and governments have used Social Marketing methods for different

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purposes with varied success rates all over the world. The main areas that are challenging for
Social Marketing are organizational issues, sustainability of the programs and lack of
marketing skills in organization. The biggest benefits that aid programs in a developing
country context could gain from social marketing are a tool to set SMART objectives and also
as a strategic tool to analyse, plan and implement successful social change project. The
conclusion is that the hypothesis is true Social Marketing is a useful tool for social change in
aid programs in developing countries. With the conditions that they are given the appropriate
resources and that the methods are applied correctly. Bank marketing DerykWyer of Barclays
Bank call it “a process, consisting of identifying the most profitable markets now and in future;
assessing the present and the future needs of the customers; setting business development goals
and making plans to meet them; and managing various services and promoting them to achieve
the plans all in the context of a changing environment in the market Awareness among Customers;
Modern technology has made customers aware of the developments in the economic
environment, which includes the financial system. Financial needs of the customers
have grown Multifood into various forms like accessibility, money transfer, asset security, increased
return on surplus funds, financial advice, deferred payments etc. With a wide network
of branches, even in a dissimilar banking scenario, customers expect the banks to offer a more
and better service to match their demands and this has compelled banks to take up marketing
in right earnest. Quality as a key factor with the opening up of the economy, fast change has been
experienced in every activity, and banking has been no exemption. Quality is the watchword in
the competitive world, which is market driven and banks have had to face up to this emerging
scenario. In fact, it may not be out of place to reiterate that quality will in future be the sole
determinant of successful banking ventures and marketing has to focus on this most crucial
need of the hour. Growing Competition, Increased completion is being faced by the Indian
banking industry from within the system with other agencies both, local and foreign, offering
value-added services. Competition is no more confined to resource mobilization but also
to lending and other areas of banking activity. The foreign commercial bank with their superior
technology, speed in operations and imaginative positioning of their services has also provided
the necessary impetus to the Indian banks to innovate and complete in the market place.
Technological Advances Technological innovation has resulted in financial product development
especially in the international and investment banking areas. The western experience has
demonstrated that technology has not only made execution of work faster but has also resulted
in greater availability of manpower for customer Contact. Marketing Approach in Banks: With
the need for marketing in banks having evolved out of the changing environment and constant
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interplay of various interdependent factors, the importance of a systematic approach
to marketing cannot be overstressed. The application of a marketing approach in banks will
therefore involve. Identifying customer’s financial needs and wants developing appropriate
banking services to meet these needs pricing for the services so developed setting up suitable
outsells / banks branches. Advertising to promote the services to the existing as well
as prospective customers. Features of bank marketing banking product cannot be seen or
touched like manufactured products intangibility In marketing banking products the product
and the seller are inseparable they together define the banking product inseparability Banking
products are products and delivered at the same time; they cannot be stored and inspected
before delivering perishability Standardization of banking product is difficult variability is
submitted that the banking system is on the threshold of a momentous era of change
and continuity in growth and development of individual customer needs and corporate
practices, technology and competitions. The role of marketing in the banking industry
continues to change. For many years the primary focus of bank marketing was public returns.
Then the focus shifted to advertising and sales promotion. That was followed by focus on the
development of a sales culture. Now the focus is on the individual customer meeting and even
anticipating his or needs and developing trusting, long-term relationships by delivering
high quality personalized service. Marketing both as a philosophy and an activity is expected
to contribute immensely to the realization of goals both immediate and future.

Question number two

A, These four trends are being driven by a consistent stream of innovation that is expanding
opportunities for state and local government CIOs to succeed with their missions definition of
macro environment in additions that exist in the economy as a whole, rather than in a particular
sector or region. In general, the macro environment will include trends in gross domestic
product GDP inflation, employment, spending, and monetary and fiscal policy. The macro
environment is closely linked to the general business cycle, as opposed to the performance of
an individual business sector. The macro environment in which a company or sector operates
will influence its performance, and the amount of the influence will depend on how much of
the company's business is dependent on the health of the overall economy. Cyclical industries,
for example, are heavily influenced by the macro environment, while consumer staples are less
so.Learning Analytics The new media consortium defines learning analytics as a field
associated with analysing patterns and trends from big data. Its primary goal is to help
educators develop educational programs to address a student’s needs. Tailor-fit lessons make it

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easier for teachers to teach effectively and students can now cope with their lessons. The
University of new developed the automated we illness Engine. It was designed to identify
students who were experiencing difficulty with their study programs. This enables the faculty
to intervene and refer their students to the proper department. MS Rhonda Lecce the
university’s Assistant Director for Student Services said that we are fundamentally renewing
our commitment to students. It’s about creating personal connections with students to
encourage them to learn. Mobile Apps: During the past year alone, students are now turning to
their mobile devices to access academic resources. Due to the flexibility of these devices, as
well as their interactivity and convenience, the devices have made learning mobile and more
attractive. Now universities are adopting these technologies for their students to use.Apps or
applications have become indispensable tools for learning. In fact, many courses, such as
Information Technology courses, have integrated them into their curriculum. Mobile apps help
foster creativity through content creation. Students learn to utilise a device’s camera
microphone and other sensors to express their ideas. James Eunson a former student at monash
University developed an app to help his fellow students find their way through the campus.
They can also check the latest news, locate staff and see the other six Monash Universities
around the world. It’s like having the entire university in your pocket.Game-Based Learning
For the past decade, games have proved to be effective tools for learning. They are helping
students learn soft skills like critical thinking collaboration problem-solving and
communication. Alternate reality games and massive multiplayer online games are teaching
them how to be more sociable and collaborative. These can also be used to teach cross-
curricular concepts to engage students to learn more. The open orchestra simulation game at
McGill University uses high-definition cameras to give music students a feel of playing with a
full orchestra. This also familiarises them with the different musical disciplines to expand their
skills. Game-based learning can provide students with the right skills and knowledge for their
future. Education writer, just in marquis believes that gaming shouldn’t be used as an area of
inquiry in higher education. Rather, it should be used to reinvent the university experience and
push students to be innovators. Technology will always play an important role in higher
education. As it evolves, educators will continue to integrate these to make learning more
engaging and productive. A macro trend has a long life, a result of many forces in your
community that you cannot manipulate. Like a river you go with the current or exhaust
yourself fighting it. Usually, as a strategic planning team formulates a strategy we start with
and lump trends into areas of analysis in our external environment our market and our
community. We are assessing opportunities and threats for a SWOT. Typical groups for macro
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trends Demographics - population groups, life spans, family composition disposable incomes
Economics - capital, business processes, productivity, work patterns, management
Environment - raw resources, ecosystems, transportation channels habitat Government world
events, politics, laws, public and economic policy, regulation Society lifestyles, values,
religion, leisure, culture, education and public-health Technology innovations scientific
discoveries economies of scale production and project management tools A trend may fall
under several of areas but as a strategic planning facilitator I resist the temptation to put it
under two or more, since you can overstate importance. Most strategists feel that four areas
need to be studied in detail: politics, economics society demographics and technology, which
is often called a pest assessment, particularly in Europe. Add environmental and legal trends to
get a assessment. A driver is a trend in the community as it builds momentum that will trigger
an opportunity for your business. For example, in the 1970s Royal Dutch Shell saw the need
for more refineries as an opportunity with the driver being the 1973 Oil Shock. A current
driver for web meetings is increasing travel costs, which will increase demand for WebEx or
citric goto meeting. Demographics we can accurately estimate demographic trends well into
the future. Here is a 50 year perspective on population median age by region by the economist
daily Chart team which explains the interest in Africa and it is so well pre. The macro-
environment refers to all forces that are part of the larger society and affect the micro-
environment. It includes concepts such as demography, economy, natural forces, technology,
politics, and culture. Factors affecting organization in Macro environment are known as pestle,
that is: Political, Economic, Social, Technological, Environmental and Legal.
Demography refers to studying human populations in terms of size, density, location, age,
gender, race, and occupation. This is a very important factor to study for marketers and helps
to divide the population into market segments and target markets. An example of demography
is classifying groups of people according to the year they were born. These classifications can
be referred to as baby boomers, who are born between 1946 and 1964, generation X, who are
born between 1965 and 1976, and generation Y, who are born between 1977 and 1994. Each
classification has different characteristics and causes they find important. This can be
beneficial to a marketer as they can decide who their product would benefit most and tailor
their marketing plan to attract that segment. Demography covers many aspects that are
important to marketers including family dynamics, geographic shifts, work force changes, and
levels of diversity in any given area. Another aspect of the macro-environment is the economic
environment. This refers to the purchasing power of potential customers and the ways in which
people spend their money. Within this area are two different economies, subsistence and
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industrialized. Subsistence economies are based more in agriculture and consume their own
industrial output. Industrial economies have markets that are diverse and carry many different
types of goods. Each is important to the marketer because each has a highly different spending
pattern as well as different distribution of wealth. The natural environment is another
important factor of the macro-environment. This includes the natural resources that a company
uses as inputs that affect their marketing activities. The concern in this area is the increased
pollution, shortages of raw materials and increased governmental intervention. As raw
materials become increasingly scarcer, the ability to create a company’s product gets much
harder. Also, pollution can go as far as negatively affecting a company’s reputation if they are
known for damaging the environment. The last concern, government intervention can make it
increasingly harder for a company to fulfil their goals as requirements get more stringent. The
technological environment is perhaps one of the fastest changing factors in the macro-
environment. This includes all developments from antibiotics and surgery to nuclear
missiles and chemical weapons to automobiles and credit cards. As these markets develop it
can create new markets and new uses for products. It also requires a company to stay ahead of
others and update their own technology as it becomes out-dated. They must stay informed of
trends so they can be part of the next big thing rather than becoming out-dated and suffering
the consequences financially. The political environment includes all laws government agencies
and groups that influence or limit other organizations and individuals within a society. It is
important for marketers to be aware of these restrictions as they can be complex. Some
products are regulated by both state and federal laws. There are even restrictions for some
products as to who the target market may be for example, cigarettes should not be marketed to
younger children. There are also many restrictions on subliminal messages and monopolies. As
laws and regulations change often, this is a very important aspect for a marketer to monitor.
The final aspect of the macro-environment is the cultural environment, which consists of
institutions and basic values and beliefs of a group of people. The values can also be further
categorized into core beliefs, which passed on from generation to generation and very difficult
to change, and secondary beliefs, which tend to be easier to influence. As a marketer, it is
important to know the difference between the two and to focus your marketing campaign to
reflect the values of a target audience. When dealing with the marketing environment it is
important for a company to become proactive. By doing so, they can create the kind of
environment that they will prosper in and can become more efficient by marketing in areas
with the greatest customer potential. It is important to place equal emphasis on both the macro
and micro environment and to react accordingly to changes within them. Macro-Environment
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Marketing intermediaries help to sell, promote, and distribute goods. Intermediaries take many
forms: Resellers, Physical distribution firms, Marketing services agencies, financial
intermediaries, analysing. The market environment: The Company's macro-environment
consists of broader forces that affect the actors in the micro-environment. All of these actors
operate in a larger macro-environment of forces that shape opportunities and pose threats to
the company. The six major forces in the company's macro-environment are: Demographic
environment: The study of human population in terms of size, density, location, age, gender,
race, occupation, and other statistics. It is of major interest to marketers because it involves
people and people make up markets. This looks at aspects such as lifestyle, attitudes to work
and leisure, consumerism, levels of education, and basic value systems of your target audience,
and in a service industry such as shipping, the target audience of your clients. Demographic
trends are constantly changing. Economic environment. The economic environment includes
those factors that affect consumer purchasing power and spending patterns. It refers to the
buying powers of your potential customers and consumers and their spending behaviour,
business cycles, GDP trends, Interest rates and unemployment. Companies need to assess
distribution of wealth, and the different types of economies that your business operates within.
Shipping is an industrial economy, but relies on the carrying of retail products and raw
material, both of which are directly impacted upon by the current economic status of the end
consumers. Natural environment: The natural environment involves natural resources that are
needed as inputs by marketers or that are affected by marketing activities. During the past two
decades environmental concerns have steadily grown. Some trend analysts labelled the specific
areas of concern were: Shortages of raw materials: Staples such as air, water, and wood
products have been seriously damaged and non-renewable such as oil, coal, and various
minerals have been seriously depleted during industrial expansion. Increased pollution is a
worldwide problem: Industrial damage to the environment is very serious. Far-sighted
companies are becoming “environmentally friendly” and are producing environmentally safe
and recyclable or biodegradable goods. The public response to these companies is
encouraging. However, lack of adequate funding, especially in third world countries, is a major
barrier. Government intervention: in natural resource management has caused environmental
concerns to be more practical and necessary in business and industry. Leadership, not
punishment, seems to be the best policy for long-term results. Instead of opposing regulation,
marketers should help develop solutions to the material and energy problems facing the
world. Environmentally sustainable strategies: The so-called green movement has encouraged
or even demanded that firms produce strategies that are not only environmentally friendly but
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are also environmentally proactive. Firms are beginning to recognise the link between a
healthy economy and a healthy environment. Technological environment: The technological
environment includes forces that create new technologies, creating new product and market
opportunities. Technology is perhaps the most dramatic force shaping our destiny. New
technologies create new markets and opportunities. The following trends are worth watching.
Faster pace of technological change. Products are being technologically out dated at a rapid
pace. There seems to be almost unlimited opportunities being developed daily. Consider the
expanding fields of health care, the space shuttle, robotics, and biogenetic industries The
challenge is not only technical but also commercial to make practical, affordable versions of
products. Increased regulation. Marketers should be aware of the regulations concerning
product safety, individual privacy, and other areas that affect technological changes. They
must also be alert to any possible negative aspects of an innovation that might harm users or
arouse opposition. Political environment It refers to global, national, regional, local and
community powers that govern your area of existence and of business. Of specific importance
here are taxation issues and governmental policies affecting the everyday lives of the
consumers or companies who use your services and products, or those of your customers.
Cultural environment: It is the combination of different organisation and forces which affects a
society’s basic value, perception, preference and behaviour. People grow up in a particular
society 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.
In particular, they examine how four major trends that will shape the future at work in this
century shifting demographic patterns, the pace of technological change, and the path of
economic globalization will evolve over the next 10-15 years. Then, they consider the
implications of these trends for key aspects of the future workforce and workplace, including
the size, composition, and skills of the workforce; the nature of work and workplace
arrangements; and worker compensation. Their assessment of these underlying structural
forces is based on relevant data and research and is intended to help all stakeholders’ workers,
employers, educators, and policymaker make informed decisions. Shifting Demographic
Patterns Given population trends and trends in labour force participation rates, the U.S.
workforce will continue to increase in size but at a considerably slower rate than in the past.
During the 1970s, the workforce grew 2.6 present annually, declining to 1.1 present growths in
the 1990s. Between 2000 and 2010, the annual growth rate is projected to equal that of the
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1990s, but it is projected to slow in the next decade to just 0.4 present and in the following
decade to only 0.3 present. In terms of workforce composition the trend is for a shift toward a
more balanced distribution by age, sex, and race/ethnicity. The U.S. population and workforce
have been growing older as the baby-boom generation ages; put another way, the workforce
has become more evenly distributed across age groups. Also, steadily increasing female labour
force participation rates, combined with declining male rates, have brought the labour force
closer to gender balance. Finally, the inflow of immigrants has been largely responsible for a
continuing increase in the racial and ethnic diversity of the workforce, with Hispanics and
Asians being the fastest-growing such groups in the workforce. The Pace of Technological
Change The pace of technological change whether through advances in information
technology (IT), biotechnology, or such emerging fields as nanotechnology will almost
certainly accelerate in the next 10-15 years, with synergies across technologies and disciplines
generating advances in research and development, production processes, and the nature of
products and services. In the IT field, for example, advances in microprocessors will support
real-time speech recognition and translation, and artificial intelligence and robotics are likely
to advance further. The use of more intelligent robotics in manufacturing will support the
ability to quickly reconfigure machines to produce prototypes and new production runs, with
implications for manufacturing logistics and inventories. Further technological advances are
expected to continue to increase demand for a highly skilled workforce, support higher
productivity growth, and change the organization of business and the nature of employment
relationships. The Path of Economic Globalization: The future reach of economic globalization
will be more extensive than before, affecting industries and workforce segments relatively
insulated from trade-related competition in the past. For example, trade in services has grown
from 18 to 30 present of the total over the last 20 years, and some higher-skilled, white-collar
jobs in the services sector, such as IT and business processing services, are now increasingly
outsourced overseas. The new era of globalization marked by growing trade in intermediate
goods and services, expanding capital flows, more rapid transfer of knowledge and
technologies, and mobile populations partly results from inexpensive, rapid communications
and information transmission enabled by the IT revolution. Globalization will continue its
record to date of contributing economic benefits in the aggregate. Although market share and
jobs will be lost in some economic sectors, with short-term and longer-term consequences for
affected workers, the job losses will be counterbalanced by employment gains in other sectors.

C, implication of Trends: These four trends overlap, as do their implications. Here, we

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highlight four of the more important ones: Employees will work in more decentralized,
specialized firms, and employer-employee relationships will become less standardized and
more individualized. Slower labour force growth will encourage employers to adopt
approaches to facilitate greater labour force participation among women, the elderly, and
people with disabilities. Greater emphasis will be placed on retraining and lifelong learning as
the U.S. workforce tries to stay competitive in the global marketplace and respond to
technological changes. Future productivity growth will support rising wages and may affect
the wage distribution; the tie between employment and access to fringe benefits will be
weakened. Firms are moving from vertically integrated organizations to more specialized ones
that outsource noncore functions and to more decentralized forms of internal organization. We
can expect a shift away from more permanent lifetime jobs toward less permanent, even
nonstandard employment relationships e.g self-employment and work arrangements e.g
distance work. These arrangements may be particularly attractive to workers trying to balance
work and family obligations or to the disabled and older people who would benefit from
alternative arrangements. In a tight labour market, employers can try to recruit groups with
relatively low labour force participation. Changes in incentives associated with pension plans
and reforms to Social Security may motivate older workers to retire later. Providing child care
may make it easier to recruit women with children. Also, changes in technology and in the
workplace described above may make it possible to recruit more people with disabilities into
the workplace. Immigration policy offers another lever, in particular to target highly skilled
aliens, thus raising the overall skill levels of the U.S. workforce. Rapid technological change
and increased international competition spotlight the need for the workforce to be able to adapt
to changing technologies and shifting product demand. Shifts in the nature of business
organizations and the growing importance of knowledge-based work also favour strong no
routine, cognitive skills, such as abstract reasoning, problem-solving, communication, and
collaboration. In this context, education and training becomes a continuous process throughout
the life course, involving training and retraining that continue well past initial entry into the
labour market. Technology-mediated learning is a promising tool for lifelong learning, both on
the job and through traditional public and private education and training institutions. Future
trends in technology, globalization, and demographics will support higher wages and are likely
to affect the distribution of wages, just as they have in the past several decades. In the absence
of a strong increase in the supply of skilled workers in response to the higher returns to
education, wage dispersion particularly as measured by the gap between more- and less-

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educated workers will likely remain at current levels or even continue to widen. Meanwhile,
greater turnover within traditional employment relationships and shifts to nonstandard
employment relationships highlight the importance of fringe benefits being portable across
jobs or even independent of jobs.

Question number 3, A

Frist I identify the product that complained by the customer that have a lack of quality and
creativity of the traditional clothing production produced by me in market segmentation
strategic system. And the product produced put in to divided in to groups target market
customer satisfaction and corrective action should be given within a short period of time and
the product it should be clearly identify which of the target market of cloth lack of quality and
defective creativity after identifying the causes I should be adjusting the product producing
according to customer need and satisfaction. Customer handling is the main issues for business
system and customer satisfaction is produce products by the customer need and quality
standards. The defect of the product and determine which kinds of customers exist to purchase
Ethiopian cultural clothing, what types of cultural clothing is more customer satisfied then.
Target; select which ones we are best off trying to serve the product we produced quality and
new creativity of a traditional clothing according to customer need for the purpose of build the
right relationship with the right customer and target market and, finally, Position; implement
our segmentation by optimizing our products/services for that segment and communicating
that we have made the choice to distinguish ourselves that way Segmentation can be simply
summarized as dividing a market by a set of pre-determined criteria. But in doing so we are
overlooking the key fundamental of what segmentation should actually be used for and that is
to gain customer insight. Truly understanding the needs of potential and actual customers in a
market allows a company to segment along the lines of needs it can serve, needs it cannot,
needs it wants to serve. The concept is to segment only using variables that having meaning in
the context of the company and the market it is operating in, not to just jump feet first and use
the tried and trusted geo- demographics. It cannot be stressed too much that correct
segmentation is the fundamental bedrock of any marketing strategy and that if it is poorly
conceived or executed, your strategy is a house of cards waiting to collapse. It is made harder
in practice because there may be a large number of variables that can be used to differentiate
consumers of a given product category; yet, in practice, it becomes impossibly cumbersome to
work with more than a few at a time. This then means some hard choices about which

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variables will be most useful in distinguishing different groups of consumers, i.e. we need to
establish a rank order of the variables by relevancy and that means the choice needs to be made
in context each time, rather than relying on a generic standard approach. As such it is worth
examining three common kinds of variables can be used for segmentation. Geographic
variables segmentation refers to location of the products of traditional clothing in in
geographical variable. Such as, region of the world, continent or country,
east/west/north/south/central/Coastal/upland etc, country size, area size & type; urban, rural,
semi-urban, town, village, city and importantly climate, Hot, Cold, Humid, Arid, Rainy
demographic variables essentially refer to personal statistics such as income, age, gender,
education, occupation, ethnicity, religion, nationality/race, language and family size. The third
criterion is particularly important for effective segmentation, as it is an essential prerequisite
when attempting to identify and select market targets of traditional clothing.
Targeting   In the next step we decide to target one or more segments. Our choice should
generally depend on several factors. First, what is the existing level of traditional clothing of
Ethiopia competition and how good at serving customer needs fulfilment of customer
satisfaction are they greater the numbers and better they are able to meet customer needs the
more difficult it will be for another business to also be a success. Secondly, how large is the
segment and how can we expect it to grow note that a downside to a large, rapidly growing
traditional clothing segment is that it tends to attract competition. Thirdly, do we have
strengths as a company that will help us appeal particularly to one group of consumers firms
may already have an established reputation? This is the first important lesson in targeting most
firms cannot meet all market needs. Target marketing is thus defined as the identification of
the market segments that are identified as being the most likely purchasers of a company’s
products of traditional cultural clothing. Specifically, the advantages of target marketing are
marketing opportunities and unfilled gaps in a market may be more accurately appraised and
identified. Such gaps can be real e.g. sweet strong harsh or mild or they can be illusionary in
terms of the way people want to view the product e.g. happy aloof silly or moody. In the case
of the former, product attributes can fulfil these criteria whereas for the latter these attributes
might well have to be implanted in the minds of customers through an appropriate advertising
message. Market and product appeals through manipulation of the marketing mix can be more
delicately tuned to the needs of the potential customer. Marketing effort can be concentrated
on the market segment which offer the greatest potential for the company to achieve its goals
be they goals to maximize profit potential or to secure the best long-term position for the

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product or any other appropriate goal.

Positioning:  After segmentation and market targeting, the next important step in developing
an effective marketing strategy is product positioning of traditional cultural clothing.
Traditional clothing product positioning refers to the way in which an organization sets itself
apart in the market and how the target market as a whole perceives its products and services
and gathering and evaluating the information from customer. This incorporates the concept of
all stakeholders of the company. To compete successfully in a target market, an organization
must have a form of differential advantage. Taking Porter’s work we know that this has to take
one of three formats cost leadership differentiation or focus. Positioning is about the
communication of the overall value proposition such that it creates and maintains this clearly
to customers, thus creating a distinctive and ideally unique place in the market for the
organization. To be effective the basic value proposition offered by an organization must be
something that is relevant to the target market, it must be differentiated from the competition
and it must be sustainable and communicated clearly to that market. This aspect fits more
closely with differentiation as a generic strategic option and this in part helps to explain the
proliferation of brands, products and services. Indeed differentiation at product, brand or
corporate level is now regarded as a key element of establishing a sustainable market position.

Question 3,B

Identification In the marketing mix, product represents the traditional cultural clothing goods
or services sold to consumer. Price is the amount of money charged for each item. Place is the
location at which a customer purchases the product, including stores and websites. Promotion
is the communication method companies use to inform customers about goods and services.
Features marketing mix strategies concern either one item or the entire group. For example
product strategies may consist of selling brand new items or substituting goods for items
already in the market. Prices can be extremely high to create a sense of exclusiveness or
inexpensive. The place may be in-store or at special locations, with wide-ranging promotions
using multiple methods. Significance all four pieces of the marketing mix help companies set
the price for their goods and services. In economic terms, the best price is at equilibrium, or
the price at which consumers will buy the most products and the company will make the most
profit. Place isn’t just about the point of sale it’s about the total channel of distribution and a
consideration of the value chain from raw materials through to the customer. As such it’s one

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of the most cross-functional areas within marketing and one of most vital areas in terms of the
processes aspect of the extended marketing mix. So when considering place we need to think
about a channel of distribution which comprises a set of institutions which perform all of the
activities utilized to move a product and its title from production to consumption Do we use
direct or indirect channels e.g. direct to a consumer, indirect via a wholesaler. Single or
multiple channels. Cumulative length of the multiple channels longer length adds cost types of
intermediary see below. Number of intermediaries at each levels e.g. how many retailers in
Southern Spain. Which companies as intermediaries to avoid intra channel conflict infighting
between local distributors? There are many types of intermediaries such as wholesalers agents
retailers the Internet, overseas distributors direct marketing from manufacturer to user without
an intermediary and many others. Channel Intermediaries wholesaler. They break down bulk
into smaller packages for resale by a retailer, i.e. they buy from producers and resell to retailers
and in doing do take title to the goods. They provide storage facilities. A wholesaler will often
take on the some of the marketing responsibilities. Many produce their own brochures and use
their own sales operations. Channel Intermediaries Agents. An agent will typically secure an
order for a producer and charge a commission on the sale or be paid a retainer with a sales
related bonus. Generally they don’t take title to the goods, unless they are a ‘stockiest agent’
who will hold consignment stock, i.e. will store the stock, but the title will remain with the
producer. This approach is used where goods need to get into a market soon after the order is
placed e.g. foodstuffs. Agents can be very expensive to train. They are difficult to keep control
of due to the physical distances involved. They are difficult to motivate. Channel
Intermediaries Retailers will generally have a much stronger personal relationship with the
consumer. They will hold several other brands and products and their customers will expect to
be exposed to many products and brands that are competitive. Where the retail purchase is
significant the retailers will often offer credit to the customer e.g. electrical wholesalers, or
travel agents, which requires consideration in pricing decisions.   Product   we looked at what a
product is in where we defined a product as anything that satisfies customer needs. As such
products differ in the way; they do things, how they are used, how they are distributed and at
whom they are aimed. Within marketing we general group products together with others,
which satisfy broadly the same, needs. Note however there are many different ways to
categories products. Different markets have their own preferred descriptors. Products and
services fit into several different categories. Many are bought both by businesses and by
consumers though the specifications may be different consumer products durable goods; These
products are expected to last a considerable length of time. They are not used up all at once but
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can be used repeatedly Non-durable goods These products are used up in the process of
consumption. They do not last. Service products cannot be stored at all. Normally they are
used there and then. Services present marketers with particular challenges. Convenience goods
are products that customers buy frequently and think little about. They are of little value and
have many close substitutes so they need strong branding and eye-catching colours and designs
to make them stand out from the rest. The main promotion refers to the activities to push
forward or to advance an idea in such a way as to gain its approval and acceptance. Promotion
is telling and selling. Product planning, pricing and distribution are marketing activities that
are performed mainly within the company or between the company and its marketing
‘partners. Sales are the life-blood of business. Tough competition has increased the importance
of sales promotion efforts on the part of the producers. Thus, sales promotion means all the
steps that are taken for the purpose of increasing sales. Promotional activity in marketing is
basically an exercise in communication. Communication is very essential. For example, we
have the best products with good package, fair price etc. The products cannot be sold to
consumers unless they know about it. People must know that the right products are available at
the right place and at the right price Importance of sales promotion   In recent years, the
importance of sales promotion has increased. This is due to the changes in the marketing
environment. It is also due to the thinking of new ideas for creating a favourable condition for
selling and promoting future sales. It is a part of marketing strategy. For a new product or new
brand, sales promotion is very important. Sales promotion methods inform, remind or
encourage the buyers at the point of purchase. A good sales promotional programme will
remove the consumer’s dissatisfaction with respect to retail selling. Sales promotion increases
as a result of the growing use of self-service and other sales methods. Positioning is about the
communication of the overall value proposition such that it creates and maintains this clearly
to customers thus creating a distinctive and ideally unique, place in the market for the
organization. To be effective the basic value proposition offered by an organization must be
something that is relevant to the target market it must be differentiated from the competition
and it must be sustainable and communicated clearly to that market. This aspect fits more
closely with differentiation as a generic strategic option and this in part helps to explain the
proliferation of brands, products and services.

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