AMERICAN COLLEGE OF TECHNOLOGY

Department of Business Administration

Course: Marketing Management (OMBA562)

Title: Individual Assignment 2

Instructor’s Name Dr Endalkachew

Submitted to: American College of Technonolgy
Student Name Teketel Tarekegn Ambaye
Student ID 277-21A

July, 2022
Addis Ababa, Ethiopia
 American College of technolog
Individual Assignment for the course Marketing Management
For Online MBA Students (25 %)
General Directions
 Try to understand the issue here below and make a discussion with
appropriate example
 copying from others will result in cancellation of your total result
 Assignment due date is July 02, 2022

Instruction: Perform the following questions as per each question instruction

and follow-standard paper writing format.
1. Identify and briefly describe four trends in the macro/market environment
that will have or recently had an influence on the selected industry. For each
of the trends you have to: (15 pts)
A. briefly explain the trend
B. describe the impact of the trend on the industry
C. Highlight the implications that the trend has on the marketers in the
chosen
industry.
2. Assume you are producing and selling Ethiopian cultural clothes. Customers
complain the lack of creativity and quality in your product. (10 pts)
A. Explain how you segment, target the market and position the product.
B. Develop the marketing mix strategies (include product, pricing, place,
and
promotion strategy)
Q 1. Identify and briefly describe four trends in the macro/market environment that will

have or recently had an influence on the selected industry.

 Briefly explain the trend

 Describe the impact of the trend on the industry
 Highlight the implications that the trend has on the marketing of your
chosen retail group/brand.

The major macro environments (external and uncontrollable) factors which affect marketing

decisions in Bank industry are political-legal environment, economic environment, socio –

cultural environment and technological environment.

1. Political – legal environment

A company’s marketing environment is made up of the actors and forces outside the marketing.

For example, it dates back to 1942, to the time when Ethiopia had the state bank of Ethiopia

handling both the commercial banking and the central banking. Both activities were combined.

In 1963, a privately owned bank was started, and it became necessary to separate the functions of

the commercial from central bank. Therefore, in 1963 the central bank of Ethiopia was divided

into two. The commercial bank and the national bank were established. Since then, a number of

banks have existed in this country. Among them are the Addis Bank share company that was

privately owned, the Banquo di Roma share company Ethiopia, and the Banquo di Napoli

Ethiopia share company. The country had also a French bank called Banque de `Indochine which

is still one of the branches. However, in 1975 the socialism regime nationalized all the privately

owned banks. There were also development banks, such as the investment bank and the

development bank share company, which merged together to form the agricultural and industrial
development bank. That bank is now renamed as the development bank of Ethiopia. Clearly, new

laws after over thrown the socialist ideology and growing numbers of pressure groups have put

more restraints on the bank’s activities till now. All these are political – legal environments of

the bank industry in Ethiopia.

2. Economic environment:

Marketers often distinguish countries with five different income-distribution patterns:(1) very

low incomes; (2) mostly low incomes; (3) very low, very high incomes; (4) low, medium, high

incomes; and (5) mostly medium incomes. Ethiopia generally falls under the second category of

income – distribution level. This condition affects the saving pattern of the people.

Banking system is avery important part of the economic growth. It is an essential part to

complete the financial system.(Joyanthi andWilliam;2010).Impacts in Bank industry in macro

environment side are employment, consumption ,production, unexpected increase in money

supply, interest rate on bank stock returns and inflation.

Access to lower interest rates helped Japanese companies expand faster. U.S. consumers also

have a high debt-to-income ratio, which slows down further expenditures on housing and large-

ticket items. The same token, credit and saving institutions are very availablein Ethiopia but at

fairly high interest rates than the banks, especially to lower-income borrowers. These all are

macro environment factors that affect bank industry.

3. Socio – cultural environment

Social and cultural factors are important to consider while creating and implementing a

marketing strategy of accompany. Basically socio cultural factors are customs, lifestyles

and values that characterize a society. More specifically, cultural aspects include
 aesthetics, education, language, low and politics, religion, social organizations,

technology and material culture, values and attitudes. To insure stability and profitability

CBE has continually work on the followings issues.

■ Views of themselves: People vary in the relative emphasis they place on self gratification.

In the United States during the 1960s and 1970s, “pleasure seekers”sought fun, change, and

escape. Others sought “self-realization.” People bought products, brands, and services as a means

of self-expression. They bought dream cars and dream vacations and spent more time in health

activities (jogging, tennis),in introspection, and in arts and crafts. Today, in contrast, people are

adopting more conservative behaviors and ambitions. They have witnessed harder times and

cannot rely on continuous employment and rising real income. This situation is also becoming

true in Ethiopia. Thus many employees are quitting their employment contract with the banking

industry in order to raise real income for themselves somewhere else.

Views of others: Some observers have pointed to a countermovement from a “me society” to a

“we society.” People are concerned about the homeless, crime and victims, and other social

problems. They would like to live in a more human society. At the same time, people are seeking

out their “own kind” and avoiding strangers. People hunger for serious and long-lasting

relationships with a few others. These trends portend a growing market for social-support

products and services that promote direct relations between human beings, such as health clubs

and religious activity. They also suggest a growing market for “social surrogates,” things that

allow people who are alone to feel that they are not, such as television, home video games, and

chat rooms on the Internet. These conditions are expected to influence the saving trend of the

people in the future.

■ Views of organizations:.
 There has been an overall decline in organizational loyalty. The massive waveof company

downsizings has bred cynicism and distrust. Many people today seework not as a source of

satisfaction but as a required chore to earn money to enjoytheir no workhours. This outlook has

several marketing implications. Companies need to findnew ways to win back consumer and

employee confidence. They need to makesure that they are good corporate citizens and that their

consumer messages are honest. More companies are turning to social audits and public relations

to improve their image with their publics. Organizational loyalty and lack of honesty have been

harming the banking industry since the last few years. We are witnessed that many employees of

National and Commercial Banks of Ethiopia have taken huge amount of money and Gold from

their companies fraudulently.

■ Views of society: People vary in their attitudes toward their society. Some defend

it(preservers), some run it (makers), some take what they can from it (takers), some want to

change it (changers), some are looking for something deeper (seekers),and some want to leave it

(escapers).Often consumption patterns reflect social attitude. Makers tend to be high achievers

who eat, dress, and live well. Changers usually live more frugally, driving smaller cars and

wearing simpler clothes. Escapers and seekers are a major market for movies, music, surfing, and

camping. As per an interview made with managers of two branches of Commercial Bank of

Ethiopia,(Hosanna, and Wachamo branch) they have faced customers having duplicated identity

cards and false birr notes of many countries repeatedly. So bank industries should aware of and

understand the above mentioned social factors of the society.

4. Technological environment: One of the most dramatic forces shaping people’s lives is

technology. Technology has released such wonders as penicillin, open-heart surgery, and the

birth-control pill. The marketer should monitor the following trends in technology: the pace of
change, the opportunities for innovation, and increased regulation. accelerating Pace of techno-

logical Change.

Many of today’s common products were not available 40 years ago. John F. Kennedy did not

know personal computers, digital wristwatches, video recorders, or fax machines.

More ideas are being worked on; the time lag between new ideas and their successful

implementation is decreasing rapidly; and the time between introduction and peak production is

shortening considerably. Ninety percent of all the scientists who ever lived are alive today, and

technology feeds upon itself.

The advent of personal computers and fax machines has made it possible for people to

telecommute—that is, work at home instead of traveling to offices that may be30 or more

minutes away. Some hope that this trend will reduce auto pollution, bring the family closer

together, and create more home-centered entertainment and activity. It will also have substantial

impact on shopping behavior and marketing performance. In this regard some technological

innovations such as personal computers and internet and internet like technologies are enhancing

the effectiveness of the banking industry. In the other side, inability of most of the people in the

country to using current information communication technologies properly, cause the banking

industry lagging behind. For example Ethiopian people are not using National Identity Card.

Most clients of Banks in Ethiopia have not developed the trend of using credit card yet.
Q2. Assume you are producing and selling Ethiopian cultural clothes. Customers complain

the lack of creativity and quality in your product. (15 pts)

a) Explain how you segment, target the market and position the product.

b) Develop the marketing mix strategies (include product, pricing, place, and promotion

strategy)

-Managing customer complaints is vital, internal process influencing customer’s perceptions and

the attitude of the firm’s staff. Pay attention to complaints and the organization can improve

satisfaction for the better. Many marketers use to start out their business is putting the right

product, in the right place, at the right price, and at the right time. These all are used to help or

decide a product to market. So in order to improve the complains to Ethiopian cultural clothes I

am producing and selling I will use the following strategies.

a) Segmentation:

The needs, preferences, and behavior of segment members are similar but not identical,

Anderson and Narus urge marketers to present flexible market offerings instead of one standard

offering to all members of a segment. A flexible market offering consists of the product and

service elements that all segment members value, plus options (for an additional charge) that

some segment members value (Kotler, 2002). Thus segmentation will be made based on

identifiable similar characteristics and flexibility of the offerings. The next step is to select the

target segment based on my strength.

Markets can be targeted at four levels: segments, niches, local areas, and individuals. Market

segments are large, identifiable groups within a market, with similar wants, purchasing power,

location, buying attitudes, or buying habits. A niche is a more narrowly defined group.

I will analyze the patterns of segmentation in the market to get a sense of their positioning

alternatives and that of the competitors. Finally; I will segment the market in a three-step

procedure of surveying, analyzing, and profiling.

As I have mentioned earlier, the major segmentation variables for my market (consumer market)

are, demographic, psychographic, and behavioral, to be used singly or in combination.

In the positioning of my product, Iwill design my offering and image to occupy a distinctive

place in the target market’s mind. I do to the mind of the prospect customers. In this regard I will

strengthen my own current position in the consumer’s mind through advertisement, grab an

unoccupied position, deposition or reposition the competition, or promote the distinctive idea

such as “best quality,”“best service,” “lowest price,” or “most advanced technology.”This is in

order for the successful creation of a market-focused value proposition, a cogent reason why the

target market should buy the product.

b) Marketing mix strategies:

 The Product and the Product Mix

A product is anything that can be offered to a market to satisfy a want or need.

The customer will judge the offering by three basic elements: product features and quality,

services mix and quality, and price appropriateness. As a result, I carefully think through the

level at which I set each product’s features, benefits, and quality.

 Product Levels
The most fundamental level is the core benefit: the fundamental service or benefit that the

customer is really buying.

At the second level, the marketer has to turn the core benefit into a basic product. At the third

level,I will prepare an expected product, a set of attributes and conditions that buyers normally

expect when they buy the product. At the fourth level, I will prepare an augmented product that

exceeds customer expectations. Finally I produce the potential product, which encompasses all

of the possible augmentations and transformations the product might undergo in the future.

 Pricing:

The market price of a product influences wages, rent, interest and profits. The price is a

matter of great importance to the buyer and the seller. Exchange of the goods or services

takes place only when the seller and the buyer agree upon the prices. Price can decide the

success or failure of a business organization. The marketing demand for a product or

service to a large extent depends upon the price of the product. Price will affect the

competitive position and share of the market.

I may not set a single price, but rather a pricing structure that reflects variations in geographical

demand and costs, market-segment requirements, purchase timing, order levels, and other

factors. Among from several price-adaptation strategies such as: (1) geographical pricing; (2)

price discounts and allowances; (3) promotional pricing; (4) discriminatory pricing, in which the

company sells a product at different prices to different market segments; and (5) product-mix

pricing, which includes setting prices for product lines, optional features, captive products, two-

part items, by-products, and product bundles, I will use an appropriate one.

If I face a situation of changing the price, I need to consider how stakeholders will react to price

changes. In addition, I will try to develop strategies for responding to competitors’ price changes.
  Place:

Manufacturers have many alternatives for reaching a market. They can sell directly through a

zero-level channel or use one-, two-, or three-level channels. Deciding which type(s) of channel

to use calls for analyzing customer needs, establishing channel objectives, & identifying and

evaluating the major alternatives. Therefore; I must also determine whether to distribute its

product exclusively, selectively, or intensively, and it must clearly spell out the terms and

responsibilities of each channel member.

Effective channel management calls for selecting intermediaries, then training and motivating

them. The goal is to build a long-term partnership that will be profitable for all channel members.

Individual members must be evaluated periodically again stpre-established standards, and overall

channel arrangements may need to be modified over time. I will use/implement the most

important trends in channel dynamics such as the growth of vertical marketing systems,

horizontal marketing systems, and multichannel marketing systems.

 Promotion:

Modern marketing calls for more than developing a good product, pricing it attractively, and

making it accessible to target customers. Companies must also communicate with present and

potential stakeholders, and with the general public. The marketing communications mix consists

of five major modes of communication: advertising, sales promotion, public relations and

publicity, personal selling, and direct marketing.

Developing effective marketing communications involves eight steps: (1) Identify the target

audience, (2) determine the communication objectives, (3) design the message,(4) select the

communication channels, (5) establish the total communications budget, (6) decide on the
communications mix, (7) measure the communications ‘results, and (8) manage the integrated

marketing communication process.

Managing the communications process calls for integrated marketing communications(IMC), a

concept that recognizes the added value of a comprehensive plan that evaluates the strategic roles

of a variety of communications disciplines and combines these disciplines to provide clarity,

consistency, and maximum communications ‘impact through the seamless integration of discrete

messages. Therefore; regarding promotion, what I will do to effectively communicate my

product is geared to what are mentioned in this portion.

Reference

Business Studies “The product Life Cycle”, on-line

Clifford D. “Managing the Product Life Cycle”, European Business Journal, July 1969.

Cox W. E. “Product Life Cycles as Marketing Models”, The Journal of Business, p.p. 375-384,
October
1967.

Life Cycle Strategies Inc. “Three Fundamentals for Effective Product Management: A Practical
Guide for
Improving Product Success”, 1999

Lightfoot W. “Product Life Cycle Stages”, McGrath M. Product Strategy of High-Technology

Companies, McGraw-Hill, 2000.

William D. & McCarthy J. E. Product Life Cycle: “Essentials of Marketing”, Richard D Irwin
Company, 1997.