Question

CAN THE GHANAIAN FINANCIAL SERVICE SECTOR WITHSTAND THE IMPACT OF COVID- 19?
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

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

A

Macro Environment Factors Consists of:

Demographic powers: The regular demographic powers ordinarily influence different market portions, including the financial part. Basic demographic powers are country/locale; age; ethnicity; levels of education; family unit ways of life.

Economic factors:The macro-environmental factors, for example, inflation, investment funds proportion, interest rate , conversion standard and economic cycle choose in general interest and total use in an economy . The economic environment may have impacts both on the creation and the shopper's procedures of dynamic. Find Financial Services' economic variables ought to be thought of-

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

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

Host country cash trade rates and dependability.

Financial viability.

Credit Services industry foundation quality.

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

Credit administrations area mastery standard of workers.

Level of economic education.

Expenses of work and economic efficiency.

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

The development rate of the economy.

Elite salary. Selective pay.

Level of joblessness.

The rate of inflation.

Duties of concern.

Common/physical powers: Various markets have explicit guidelines or environmental necessities which can affect the seriousness of an association. Indeed, even inside the country , distinctive environmental enactment and credit laws are regular to governments. For instance , in case of a mishap or a cataclysmic event, the United States-Texas and Florida have separate obligation provisos. Numerous countries in Europe are likewise offering sound tax cuts for sustainable organizations.

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

Climate

Climate change

Laws controlling environment contamination

Air and water contamination guidelines in Credit Services industry

Reusing

Squander the executives in Financial division

Perspectives toward "green" or biological items

Jeopardized species

Perspectives toward and support for sustainable power source

Technological variables: In numerous businesses, innovation rapidly separates. This is a genuine case of the Tourism Industry. The business has changed at a fast pace for as far back as five years, not in any event, allowing built up players a chance to change themselves. Presently, players like Uber and Lyf own the taxi business. Tesla, who guaranteed 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 part ought to be finished by a solid venture. A more slow pace will bring additional time and technological forward leaps will give additional time and gainful effectiveness. The accompanying ramifications are known from the logical investigation.

Late technological advancements by Financial Services contenders are;

Effect of innovation on item gracefully.

Effect in the Credit Services industry on cost organizing.

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

Tech dispersion rate. Rate.

Political and lawful powers: The political and legitimate improvements identifying with an association and its business sectors ought to be considered in sound showcasing choices. Political powers have a critical task to carry out in central factors that can affect Discover Services Financial's drawn out intensity in a country or industry. Get Financial Services covers credit benefits in excess of twelve countries and is dependent upon different sorts of political locales and dangers to political structures. The fundamental risk of a political climate is a defining moment in the advancement of such a hearty loaning industry in all countries.Financial Services may survey the accompanying variables basically before they enter or put resources into a given market-

Political security and significance of Credit Services segment in the country's economy.

Danger of military intrusion

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

Administration and obstruction in Credit Services industry by government.

Legitimate structure for contract requirement

Licensed innovation insurance

Exchange guidelines and duties identified with Financial

Supported exchanging accomplices

Against trust laws identified with Credit Services

Estimating guidelines – Are there any evaluating administrative system for Financial

Tax collection - charge rates and motivators

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

Work week guidelines in Credit Services

Compulsory worker benefits

Modern wellbeing guidelines in the Financial division.

Item marking and different necessities in Credit Services

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

Hostile to confide in law in Credit Services industry in the country.

Segregation law

Copyright, licenses/Intellectual property law

Shopper assurance and web based business

Work law

Wellbeing and security law

Information Protection

Social and social powers: The impact the organizations have on the interest for products and enterprises must be thought of. To demonstrate that the organization is assuming liability for the environment, all parts of the creation procedure or all merchandise or administrations unfavorable to the general population ought to be avoided. An ongoing case of this is the environment and what number of segments need to amend the environment of their items and services.Corporate culture and method of working effect on an association's culture in a specific region. The convictions and sharing shared by an assortment of players assume a huge job in how advertisers of Discover Financial Services can comprehend the designated advertisers and in the creation of the Consumer Financial Industry promoting message.

populace demographics and abilities

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

Level of education and employments in the find financial administrations industry

Culture (sex, social gatherings, and so forth.).

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

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

Incentive in recreation

b

Micro-environment

The company's microenvironment comprises of on-screen characters near the company that consolidate to shape its worth conveyance arrange. It incorporates the company's inner environment, which impacts the showcasing choice.

The Company: All offices in the company share the duty of understanding the requirements of the client and making an incentive for them

Providers: Supplies structure a significant connection in the general clients' qualities creation cycle. Gracefully lack, work strike, expanded expense of provider merchandise and different variables can affect deals in sort run and impact consumer loyalty over the long haul

Advertising delegates: They help the company advance, sell and disperse products to the end shoppers. Cooperating with the correct middle person and supporting them in making deal is basic for achievement of the business

Contenders: to be effective, your item ought to give more noteworthy fulfillment to the purchaser than your rivals'

Publics: A gathering that has a genuine or potential interest in or sway on an association's capacity to accomplish its targets. These can be delegated financial, government, media, resident activity, neighborhood, general and inside. Advertising plans can be planned concentrating on these significant publics and its client markets.

Clients: Customers are the most significant entertainers in the promoting environment. The client market could be any/the entirety of the accompanying - customer, business, affiliate, government or worldwide. Each market type has a particular use case which the vender must research well

Macro-environment

The macro-environment comprises of bigger cultural powers that influence the whole microenvironment. The PESTLE investigation in a system used to filter the association's outside business environment.

Political: They allude to the political environment and its strength. It represents different government approaches and its association in the exchanging understanding.

Economic: The economic environment like the development rate, business proportions, inflation, conversion scale, typical cost for basic items and so on can affect the association and its customers

Socio-social: The effect your item has available should be comprehended. Anything destructive to the general public must be disposed of to show that your company is socially dependable.

Technological: With the adjustments in data and portable innovation the association ought to adjust and invite the new developments.

Legitimate: Legal factors, for example, national business laws, universal exchange guidelines and limitations, restraining infrastructures and mergers' principles, and customer insurance should be followed while showcasing.

Environmental: These variables incorporate constrained common assets, squander removal, antagonistic effect of creation on environment and so forth.