Chapter Two

Methodology
2.1 Definition of Research:
Research is often described as an active, diligent, and systematic process of inquiry
aimed at discovering, interpreting and revising facts.

The word research is derived from the French language; its literal meaning is 'to
investigate thoroughly'.

Undertaking research is basically applying scientific methods to find solution to a

problem. It is a systematic and explorative study carried out to analyze and apply
various solutions to a defined problem.

Research can be classified into two broad categories:

1. Basic Research and

2. Applied Research

Basic research

Basic research is also called fundamental or pure research. As the name itself refers,
Basic Research is of basic nature which is not carried out in response to a problem. It
is more educative, towards understanding the fundamentals and aim at expanding the
knowledge base of an individual or organization. It does not have any commercial
potential.

Applied research

Applied Research on the otherhand is carried out to seek alternate solutions for a
problem at hand. Applied research is done to solve specific, practical questions; its
primary aim is not to gain knowledge. It specifies possible outcomes of each of the
alternatives and its commercial implications.

Applied research can be carried out by academic or industrial institutions. Often, an

academic institution such as a university will have a specific applied research program
funded by an industrial partner interested in that program. Electronics, informatics,
computer science, process engineering and drug design are some of the common areas
of applied research.

2.2 Defining Marketing Research:

Marketing research (also called consumer research) is a form of business research. The
field of marketing research as a statistical science was pioneered by Arthur Nielsen with
the founding of the ACNielsen Company in 1923. Marketing research is a systematic
and objective study of problems pertaining to the marketing of goods and services. It is
applicable to any area of marketing.

Research is the only tool an organization has to keep in contact with its external
operating environment. In order to be proactive and change with the environment
simple questions need to be asked:

 What are the customer needs and how are they changing? How to meet these
changing needs? What do the customers think about existing products or
services? What more are they looking at?
 What are the competitors doing to retain customers in this environment? Are
their strategies exceeding or influencing yours? What should you do to be more
competitive?
 How are macro and micro environmental factors influencing your organization?
How will you react t this environment?

The aim of marketing management is to satisfy the needs of the consumer. Marketing
research helps in achieving this. Marketing research is a systematic and logical way of
assessing ways of satisfying customer needs.

According to all the above definitions, Marketing Research starts by stating the problem
or the issue to be investigated; indicate what kind of information is required to resolve
the problem; identify where and how to get it; specify the methodology for analyzing
the research findings; sum up the research findings and then suggest the best solution
for marketing decision making.

2.3 Research and Marketing Strategy:

Marketing is a new field of academic study in comparison to subjects such as chemistry
or philosophy. However, marketing is not a new human activity. People have always
produced goods that they wished to barter or sell for either another needed product or
money. To do so they need to find buyers. The field of marketing simply takes this
basic human behavior and plans its strategic implementation.

Marketing is an organizational function and a set of processes for creating,

communicating, and delivering value to customers and for managing customer
relationships in ways that benefit the organization and its stakeholders.

The definition describes marketing as an exchange that satisfies both the seller
(organization) and the individual (buyer). Marketing is sometimes misunderstood as
only selling, with the organization convincing the buyer to purchase something they
don’t want or need. While selling is an important part of promotion, there would be no
long-term gain for any organization to focus only on selling their product. Even if they
could use high pressure sales techniques to convince buyers to purchase, business
success relies on repeat customers. Such customers would most likely feel manipulated
and be unlikely to purchase again. The definition also states that an organization should
only provide products that fulfill its goals. Thus the organization has a mission and a
strategic plan and marketing exists to help the organization meet both, while at the same
time meeting the needs of customers.

2.4 Marketing Research and the Development of the Marketing Plan:

Research is too often thought of as only being useful in answering specific marketing
questions. It is true that research is needed to answer such questions as what types of
new products consumers might want or what new market segments to target for an
existing product. However, it is better to conceptualize marketing research as a tool that
should be used on a continual basis for finding new opportunities and solving problems.
In fact marketing research needs to be regarded as an ongoing marketing activity.

Research plays a critical role in the development of a marketing plan for all types of
businesses and organizations, both large and small and for profit and nonprofit.
Marketing research has traditionally been seen as just one component in the marketing
plan, but it is better to consider research as part of the entire process of developing the
marketing plan and not as a single step. In fact the field of marketing research is being
changed by new technologies. The marketing researcher is now seen as a consultant
who can either conduct the research themselves or help organizations learn how to use
the new online tools so they can conduct their own research (Siesfeld, 2005).

Rather than see research as only one step in the process of developing a marketing plan,
it should be seen as essential to the entire process. After all, research is the only way a
company can conduct environmental and competitor analysis. The research conducted
may involve a large-scale study or be as simple as visiting a competitor’s store and
reading the local business news. Research is also the only means marketers can use to
understand buyer motivation. This research may consist of a large formal survey,
informal interviews, or both. First, the proper target market segment cannot be chosen
without researching the demographics of the consumer marketplace. Next, additional
consumer research will be needed to determine what a target segment needs and wants.
Finally, decisions about product, distribution, pricing and promotion can only be
successfully answered after conducting marketing research.

2.5 Ethics in Marketing Research:

Ethics provide a system that helps a person to determine what is right and good from
what is wrong and bad. Ethics also provide an individual with guidelines that will help
in making decisions. The ethical system a person uses for making decisions in his or
her personal life most likely is the result of family or educational influence, or both of
these. However, the ethical behavior of people continues to be shaped by their
environment, even as adults. This includes the environment in which they work (Barnett
and Valentine, 2004).

An ethical system for employees of an organization is often called a code of conduct.

If a company employs a researcher and does not have a code of ethical conduct, the
researcher can use a code produced by a research association or society. A code of
conduct is important because research is the search for true information. To knowingly
conduct research that is biased is harmful to both the individual researcher and the field
of research as a whole. With the renewed emphasis on corporate ethics (or the lack of
them), marketing research ethical issues should not be taken lightly. It is sometimes
said that any actions internal to a company that are not against the law should be
allowed. However, just because something is legal this does not make it ethical.

2.6 Guidelines for conducting ethical research:

 Never conduct research where the search for truth is compromised

 Always be honest with research participants
 At all times protect participants from harm

Below is an example showing the statement of ethical principles for the Marketing
Research Society. Even for someone who does not belong to the Society these are still
excellent principles to follow.
 Chapter Three
Overview of the organization
3.1 Background:
Agrani bank limited (ABL) was incorporated as a state owned commercial bank on 17
may 2007 under the company’s act 1994. Agrani bank emerged as a nationalized
commercial bank following the Bangladesh banks (nationalization) order 1972 vide
president’s order no 26 of 1992 under which erstwhile Habib bank limited and
commerce bank limited and renamed as Agrani bank. Ongoing concern basis ABL took
over the business assets, liabilities, rights and obligations of Agrani bank through a
vendor’s agreement signed on 15 November 2007 between the ministry of finance of
the people’s republic of Bangladesh and the board of directors of ABL with
retrospective effect from 1 July 2007. ABL has 953 branches widely distributed and is
a technology pioneer, with all branches providing real time online banking. We also
have subsidiaries: a merchant bank, small and medium sized enterprises (SMEs)
financing company and remittance house in Singapore, Malaysia, Canada and
Australia.

At ABL, we believe in being a responsible financial services provider and we are

committed to making a difference in the lives of our stakeholders and nation of the
country. Just as we are dedicated to helping our customers manage their finances wisely
and grow their business, ABL is committed in our support of socio-economic
development of Bangladesh. ABL provides it’s corporate, SME and retail clients with
a wide range of products or services such as extensive deposit and loan options that
include Islamic banking, foreign currency and pension schemes. Our offering includes
personal financial services, business banking, transaction banking, commercial and
corporate banking. Corporate finance, treasury services, capital market activities and
clearing services. Through our subsidiaries, Agrani bank limited also provide asset
management, SME finance, venture capital management and foreign remittance
services.

3.2 Corporate Information:

Agrani bank limited, a state owned leading commercial bank with 953 outlets
strategically located in almost the commercial area throughout Bangladesh overseas
exchange house and hundreds of overseas correspondents, came into being as a public
limited company on May 17, 2007 with a view to take over the business, assets,
liabilities, rights and obligations of the Agrani bank which emerged as a nationalized
commercial bank 1972 immediately after the emergence of Bangladesh as an
independent state. Agrani bank limited started functioning as a going concern basis
through a vendors agreement signed between the ministries of finance, government of
the people’s republic of Bangladesh.
 Company information

 Name : Agrani Bank Limited

 Legal status : Public Limited Company ( as per the bank companies
act 1991)
 Registered office : 9/D Dilkusha , Dhaka 1000, Bangladesh
 Date of incorporation : 17 may 2007 under ta companies act 1994
 Date of commencement of business : 17 may 2007
 Tax identification number (TIN) : 395478266223
 VAT registration number : 19011031730
 Business identification number (BIN): 000000221
 Chairman : Dr. Zaid Bakht
 Managing director and CEO : Md. Murshedul Kabir

Share Capital

 Authorized capital : TK. 2,500.00 crore

 Paid-up capital : TK. 2,072,29 crore
 Face value per share : TK.100
 Shareholding pattern : 100 percent share owned by Government of the
people’s Republic of Bangladesh

Service Network

 Branch : 953
 Circle office : 11
 Zonal office : 53
 Corporate branch : 34
 Authorized dealer (AD) branch : 42
 Foreign correspondent : 302
 Islami banking unit :5
 Agent banking : 200
 Remittance only points : 200
Exchange Rate as on (30september/2021)

Currency Buying rate Selling rate

USD (CASH) 85.60 86.60

GBP (CASH) 102.50 106.50

AUD ( CASH) 57.00 60.00

EURO ( CASH) 90.75 94.75

3.3 Mission, Vision, Values and Motto:

Vision:
To operate ethically and fairly within the stringent framework set by our regulators and
to assimilate ideas and lessons from best practices to improve our business policies and
procedures to the benefit of our customers and employees.
Mission:
To become the best leading state-owned commercial bank of Bangladesh operating at
international; level efficiency, quality, sound management, excellent customer service
and strong liquidity.
Values:
We value integrity, transparency, accountability, dignity, diversity, growth and
professionalism to provide high level of service to all our customers and stakeholders’
inside and outside the country.
Motto:
To adopt and adapt modern approaches to stand supreme in the banking arena of
Bangladesh with global presence.

3.4 Strategic objectives:

 Contributing towards the economic well-being of the country by focusing
particularly on remittance, SME and agricultural sectors.
 Overtaking competitors by providing quality customer services.
 Gaining competitive advantage by lowering overall cost associated to that of
competitors.
 Strengthening research capability for innovative products.
  Winning at least 7.00 percent share of deposits and 5.50 percent share of loans
and advantage of Bangladeshi market.
 Strengthening the bank’s brand recognition.
 Attaining technological leadership among the peer group by choosing cutting
edge software and digital and automated solution.
 Leaving behind industry players in rendering innovation and quality customer
service.
 Strengthening research and development capability for launching innovative
products for customer’s satisfaction.

3.5 Where Agrani Bank Limited Operate:

953 branches and 64 offices all over Bangladesh

Division Branch number Office

Dhaka 202 15

Chattogram 194 10

Khulna 138 8

Barishal 60 5

Rajshahi 144 9

Rangpur 66 6

Mymensingh 89 7

Sylhet 60 4

3.6 Products and services:

 Deposit:
 Current deposit
 Savings deposit
 Special notice time deposit
 Nonresident special taka amount
 Nonresident investor’s taka amount
 Student’s savings A/C (school banking)
  Small life insurance policy holders A/C
 Ten taka farmers
 Freedom fighters
 Other beneficiary’s under social security’s program

 FDR Account:
 Fixed deposit (FDR)

 Deposit Scheme:
 Agrani bank pension scheme (APS)
 Agrani bank bisheshshanchy scheme (ABS)
 Agrani bank scnchy pension scheme (ASPS)
 Agrani bank double benefit scheme
 Agrani bank lakhpoti deposit scheme
 Agrani senior citizen savings scheme

 Foreign Currency Account:

 Foreign currency (FC) A/C
 Nonresident foreign currency deposit (NFCD) A/C
 Resident foreign currency deposit
 Exported retention quota
 Loans and Advances:
 Continuous loan:
 Cash credit
 Secured overdraft
 Term Loan:
 Industrial credit
 Housing loan
 Consumer credit
 Loan for overseas employment
 Weaver’s credit

 Small and Medium Enterprise Loan:

 Service sector loan
 Trading sector loan
 Manufacturing sector loan
 Woman entrepreneur’s loan
 Rural and agro credit
 Crop loan
 Fishery loan
 Animal husbandry loan
  Agri machinery loan
 Rural transport loan
 Swanirvar loan
 Poverty alleviation loan

 Letter of credit:
 Letter of credit sight
 Letter of credit issuance
 Back to back L/C

 Treasury:
 Money market
 Call money transaction
 Term placement
 Treasury bills
 Treasury bonds
 Secondary trading of govt. securities
 Repo
 Reserve repo
 Custodian services
 Other investments

 Foreign Exchange Market:

 Selling foreign currency for import payment
 Buying foreign currency against export proceeds
 Fixation of exchange rate
 Foreign currency buying and selling
 SWAP transactions
 Forward transaction
 Term placement

 Other Foreign Exchange Market:

 Documentary bill collection
 Advanced payment for import and export
 Foreign remittance (incoming and outgoing)
 Foreign currency endorsement against passport
 Issuance of draft, TT
 Collection of draft, cheque, TC
 Islamic Banking Service:
 Deposit
 Al wadiah current A/C
 Mudaraba deposit account
 Mudaraba Savings account
 Mudaraba Hajj savings scheme
 Mudaraba Term deposit
 Mudaraba Special savings scheme
 MudarabaMohor savings scheme
 MudarabaProbashikalyan savings account
 Mudaraba Cash waqfsavingsacheme

 Investment:
 Baimurabaha(pledge)
 Baimuazzal (hypo)
 Higher purchase shirkatulmeilkj Baisal