Question

COVID-19 and its impact
The impact of COVID-19 individuals, communities, and organizations is rapidly evolving from
a mild and temporary hit to the worst-case scenario, a global financial crisis. While other
industries such as the Travel, Transportation, Hospitality, Insurance, Retail, and Telco are
severely impacted, it is the resiliency and continuity of the financial services markets that will
support Governments and businesses during and post crisis; ensuring liquidity is available. All
eyes will be turned to the financial services industry to see if they can respond in a manner that
reduces the global economic impact of COVID-19.
The COVID-19 pandemic could be the most serious challenge to financial institutions in nearly
a century. As the economic fallout spreads, retail banks find themselves juggling some big
priorities that require concrete steps to reposition now while also recalibrating for the future.
They are working to keep their distribution channels open, despite social distancing advice and
supervisory and compliance functions that were never designed for remote work. They’re
trying to manage revenue and customer expectations, despite near-zero interest rates and
growing pressure on consumers. And, they need to keep an eye on strategy and brand issues
that will define their future, as market forces and customer behaviors potentially change
coming out of this crisis.
COVID-19 and the Marketing Environment
While definitions differ, there is consensus that the Marketing Environment is the combination
of external and internal factors and forces which affect the company’s ability to establish a
relationship and serve its customers. The Marketing Environment includes factors that
surround the business and influence its marketing operations. Kotler (2019) posits that these
forces remain outside the control of the firm and can upset marketing management ability to
build and maintain successful relationships with target customers. Some of these factors are
controllable while some are uncontrollable and require business operations to change
accordingly. Firms must be well aware of the marketing environment in which they are operating to overcome the negative impacts the environmental factors are imposing on their
marketing activities.
Against this background, PwC (2020) conjectures that the COVID-19 pandemic could be the
most serious challenge to financial institutions in nearly a century. As the economic fallout
spreads, retail banks find themselves juggling some big priorities that require concrete steps to
reposition now while also recalibrating for the future. It implies that agile banks will survive
by taking concrete steps right now; to support the communities and customers they serve while
balancing medium to long term positioning; those that do not adjust may risk not surviving at
all. Ghanaian financial institutions are not insulated from this reality.
REQUIRED
Drawing on this background and your knowledge of Marketing of Financial Services:
A. Provide a critical analysis of FIVE (5) Macro Marketing Environmental forces
affecting the financial service sector today. The macro-environment refers to all forces
that are part of the larger society and affect the micro-environment. They include the
demographic environment, political environment, cultural environment, natural
environment, technological environment and the economic environment. The purpose
of analyzing the macro marketing environment is to understand the environment better
and to adapt to the social environment and change through the marketing effort of the
financial institutions to achieve the goal of the financial institutions marketing (10
marks)
B. With a critical analysis of the micro environmental forces which are forces close to the
company that affects its ability to serve its customers; all those factors that are closely
associated with the operations of the business and influences its functioning including
suppliers, customers, marketing intermediaries, competitors and publics; discuss the
effects of COVID-19 on Five (5) micro environmental forces within the financial
service sector in Ghana today .

Answer 1

Macro Environment Factors Consists of:

Demographic forces: The normal demographic forces ordinarily influence different market fragments, including the financial part. Basic demographic forces are nation/locale; age; ethnicity; levels of training; family unit ways of life.

Economic factors:The macro-environmental factors, for example, swelling, reserve funds proportion, loan fee , swapping scale and economic cycle choose by and large interest and total consumption in an economy . The economic environment may have impacts both on the creation and the shopper's procedures of dynamic. Find Financial Services' economic factors ought to be thought of-

Economic system type in working nations – what sort of economic system is set up and how stable is it.

Government free market mediation and related financial intercession. Financial intercession.

Host country cash trade rates and strength.

Financial viability.

Credit Services industry foundation quality.

Host country and the financial area's upper hands in the district concerned.

Credit services area skill standard of workers.

Level of economic instruction.

Expenses of work and economic efficiency.

Phase of the business cycle ( for example blast, decay, recovery).

The development pace of the economy.

Selective pay. Restrictive pay.

Level of joblessness.

The pace of expansion.

Taxes of concern.

Common/physical forces: Various markets have explicit guidelines or environmental necessities which can affect the seriousness of an association. Indeed, even inside the nation , diverse environmental enactment and credit laws are basic to governments. For instance , in case of a mishap or a catastrophic event, the United States-Texas and Florida have separate risk provisos. Numerous nations in Europe are likewise offering solid tax cuts for inexhaustible organizations.

Prior to entering another market or beginning another business in a current market, an organization should cautiously assess the nearby guidelines required to work in those business sectors. A portion of the environmental factors an organization ought to consider early are –

Climate

Climate change

Laws managing environment contamination

Air and water contamination guidelines in Credit Services industry

Reusing

Squander the board in Financial area

Mentalities toward "green" or environmental items

Imperiled species

Mentalities toward and support for sustainable power source

Technological factors: In numerous enterprises, innovation rapidly separates. This is a genuine case of the Tourism Industry. The business has changed at a rapid pace for as long as five years, not in any event, allowing set up players a chance to change themselves. Presently, players like Uber and Lyf own the taxi business. Tesla, who asserted that electric vehicles are being changed over, switches rapidly to Automation drove by innovation organizations like Google and Manufacturing.Not just specialized research yet the speed at which innovation upsets this segment ought to be finished by a solid endeavor. A more slow pace will bring additional time and technological achievements will give additional time and gainful effectiveness. The accompanying ramifications are known from the logical examination.

Ongoing technological developments by Financial Services competitors are;

Effect of innovation on item flexibly.

Effect in the Credit Services industry on cost organizing.

Effect in the financial area on the structure of the worth chain.

Tech dissemination rate. Rate.

Political and legitimate forces: The political and lawful developments identifying with an association and its business sectors ought to be considered in sound advertising choices. Political forces have a noteworthy task to carry out in central factors that can affect Discover Services Financial's drawn out seriousness in a nation or industry. Get Financial Services covers credit services in excess of twelve nations and is dependent upon different sorts of political locales and dangers to political structures. The systemic threat of a political climate is a defining moment in the advancement of such a strong loaning industry in all countries.Financial Services may evaluate the accompanying factors basically before they enter or put resources into a given market-

Political steadiness and significance of Credit Services area in the nation's economy.

Danger of military intrusion

Level of corruption - particularly levels of guideline in Financial area.

Organization and impedance in Credit Services industry by government.

Lawful system for contract implementation

Licensed innovation insurance

Exchange guidelines and taxes identified with Financial

Supported exchanging accomplices

Hostile to believe laws identified with Credit Services

Estimating guidelines – Are there any evaluating administrative component for Financial

Tax collection - charge rates and motivating forces

Pay enactment - the lowest pay permitted by law and extra time

Work week guidelines in Credit Services

Required worker benefits

Mechanical wellbeing guidelines in the Financial division.

Item naming and different necessities in Credit Services

A portion of the lawful factors that Discover Financial Services administration ought to consider while entering another market are -

Against trust law in Credit Services industry in the nation.

Separation law

Copyright, licenses/Intellectual property law

Purchaser security and internet business

Business law

Wellbeing and security law

Information Protection

Social and social forces: The impact the organizations have on the interest for merchandise and ventures must be thought of. To exhibit that the organization is assuming liability for the environment, all parts of the creation procedure or all products or services inconvenient to the general population ought to be prohibited. An ongoing case of this is the environment and what number of divisions need to reexamine the environment of their items and services.Corporate culture and method of working impact on an association's way of life in a specific zone. The convictions and sharing shared by an assortment of players assume a critical job in how advertisers of Discover Financial Services can comprehend the designated advertisers and in the organization of the Consumer Financial Industry promoting message.

populace demographics and aptitudes

Structure of classes, chain of command and structure of intensity in the public arena.

Level of training and employments in the find financial services industry

Culture (sexual orientation, social meetings, and so forth.).

The soul of business enterprise and more extensive social presence. A few organizations advance enterprise while others don't.

Mentalities (wellbeing, attention to the environment ...)

Incentive in relaxation

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