MKT 420 Marketing Environment ( Group 4) PDF

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FACULTY OF BUSINESS AND MANAGEMENTBACHELOR OF BUSINESS ADMINISTRATION (HONS) HUMAN RESOURCEMANAGEMENT (BA243)PRINCIPLES AND PRACTICE OF MARKETING (MKT420)MARKETING ENVIRONMENTCOMPANY: TELEKOM MALAYSIA BERHAD (UNIFI)PREPARED BY:NO. GROUP MEMBERS STUDENT ID1. HUSNA BINTI AZWA 20211033312. NUR ALISSYA ...

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FACULTY OF BUSINESS AND MANAGEMENT BACHELOR OF BUSINESS ADMINISTRATION (HONS) HUMAN RESOURCE MANAGEMENT (BA243)

PRINCIPLES AND PRACTICE OF MARKETING (MKT420)

MARKETING ENVIRONMENT COMPANY: TELEKOM MALAYSIA BERHAD (UNIFI)

PREPARED BY: NO.

GROUP MEMBERS

STUDENT ID

1.

HUSNA BINTI AZWA

2021103331

2.

NUR ALISSYA BINTI ZAHARUDDIN

2021110839

3.

NUR NABILA FARHANA BINTI MOHD ROZMAN

2021119399

4.

PUTERI NURNILAM SERI BINTI MOHD NAZRI

2021112423

5.

WAN IRDINA SOFIAH BINTI WAN FIRDOZ

2021101133

GROUP: BA2431B

PREPARED FOR: PROFESOR MADYA DR ROZITA BINTI NAINA MOHAMED

SUBMISSION DATE: 9th OF JULY 2021 (WEEK 13)

TABLE OF CONTENTS

1.0

INTRODUCTION OF MARKETING ENVIRONMENT................................................. 3

2.0

INTRODUCTION OF TELEKOM MALAYSIA BERHAD ............................................ 4

3.0

MICROENVIRONMENT ............................................................................................. 5

3.1

Company ................................................................................................................ 6

3.2

Suppliers................................................................................................................. 7

3.3

Marketing Intermediaries......................................................................................... 8

3.4

Competitors .......................................................................................................... 10

3.5

Publics .................................................................................................................. 12

3.6

Customers ............................................................................................................ 13

4.0

MACROENVIRONMENT ......................................................................................... 14

4.1

Demographic Environment.................................................................................... 15

4.2

Economic Environment ......................................................................................... 16

4.3

Natural Environment ............................................................................................. 18

4.4

Technological Environment ................................................................................... 20

4.5

Political Environment ............................................................................................ 21

4.6

Cultural Environment ............................................................................................ 23

5.0

RECOMMENDATIONS ............................................................................................ 24

6.0

CONCLUSION ......................................................................................................... 26

7.0

REFERENCES ......................................................................................................... 27

2

1.0

INTRODUCTION OF MARKETING ENVIRONMENT

What is the marketing environment? The marketing environment contains all of the characters and factors out of marketing that have an influence on marketing management's ability to build and sustain effective connections with its target consumers. Though these factors and forces may differ depending on the firm and industrial group, they may be broadly classified into two types which is the internal environment and also external environment. Internal environment is company specific. It is also including the owners, workers, machines materials and many more. While the external environment is divided into two components which is microenvironmental and macroenvironmental (Pahwa, FEEDOUGH, 2021). The microenvironmental has divided into a few components for most businesses which is the company, suppliers, marketing channel firms (intermediaries), customer market marketplaces, rivals, and publics, which work together to form the company’s value delivery system. The demographic, economic, ecological, technical, political, and cultural influences are known for macroenvironmental components. The astute marketing executive understands that he or she cannot always influence environmental circumstances. Smart managers, on the other hand, may adopt a proactive, rather than a reactive, approach to the marketing environment (MBA Knowledge Base, 2021). As marketing management acquires and analyses data on these environments, they must remain attentive in their attempts to use what they learn to creating opportunities and addressing risks. Based on some research, good businesses not only have a deep sense of customer but also an understanding of the environmental forces whirling around them. Moreover, companies are better equipped to adapt to change, plan long-term strategies, fulfil the demands of today's and tomorrow's consumers, and compete in the global marketplace by continually monitoring the dynamic changes that occur in the aforementioned settings. In the new millennium, all businesses are urged to take an environmental management approach. The marketing environment of a firm comprises of the characters and factors outside of marketing that influence marketing management's capacity to build and sustain effective connections with its target consumers. One of it is being successful. It means the companies are being able to utilize the marketing mix in response to trends and changes in the environment.

Besides, changes in the marketing environment are frequently quick and

unpredictable and also the marketing environment requires both opportunities and threats.

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2.0

INTRODUCTION OF TELEKOM MALAYSIA BERHAD

Figure 1: Telekom Malaysia Logo

Telekom Malaysia Berhad, mostly known as (TM), is a telecommunications company based in Malaysia established in 1984. It started as the domestic telecommunications company for fixed-line, radio, and television broadcasting services and has since grown to become the country's largest broadband, data, fixed-line, pay television, and network services provider. The company entered the Long-Term Evolution (LTE) market with the TM LTE. Unifi is Malaysia's first high-speed fiber-optic broadband service, with a total of 2.23 million broadband subscribers in 2014 (Reference for Business, 2021). Given Malaysians' rapid implementation of digital technology, TM is one of the country's largest government-linked companies, with over 28,000 employees and a market capitalization of more than RM25 billion. As a market leader, TM is motivated by creating stakeholder value in a highly competitive environment. The Group focuses on providing a better customer experience through continuous customer service quality improvements and innovations while increasing operational efficiency and productivity (TM, 2021). TM is well equipped to make Malaysia a regional Internet centre and digital gateway for South-East Asia, imposing its extensive worldwide connectivity, network infrastructure, and collective expertise. TM has a solid vision that extends beyond making profits. On the other hand, they put their people and customers as the most priority assets to improve life and business more accessible for a better outcome in Malaysia. Their mission to make life easier through three parties: to their customers by connected experiences of communication lifestyle, businesses by working closely with them and providing integrated solutions, and society by promoting socio-economic development through education, innovation, and social initiatives (TM, 2021). Unifi, on the other hand, is one of the service providers offers by TM, which enables the consumers to be easily connected in more than just one way. TM is committed to achieving its vision of being recognized as the market leader in all markets served as a customer-focused organization that offers a complete one-stop solution, and building longterm relationships with its customers and partners based on solid trust (Reference for Business, 2021). 4

3.0

MICROENVIRONMENT

Micro environment refers to the environment which is in direct contact with company and affects the routine activities of business straight away. It is a collection of forces or factors that are close to the organization and can influence the performance as well as the day to day activities of the firm. As shown in Figure 2, there are six factors that influence a company's decision to conduct business: company, suppliers, marketing intermediaries, competitors, publics, and customers.

Figure 2: Microenvironment elements

Telekom Malaysia Berhad (TM) has the ability to control its external microenvironment by employing effective strategies. The following is how TM organises and controls the factors to ensure that they meet their goal of providing the best possible service to their customers.

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3.1 Company Marketing management must consider various groups in an organization, such as top management, human resourcing, operations, research and development (R&D), accounting, and finance when designing marketing plans. Marketing managers must collaborate closely with them in order to make decisions about broader strategies and plans. Other departments, such as manufacturing, finance, legal, and human resources, take responsibility for understanding and creating customer value after the marketing team takes the lead. Employees are one of the most important microeconomic factors influencing a company's performance. One of the primary drivers of organizational performance and productivity is employee performance. Risk Management is part of Telekom Malaysia's (TM) overall strategy to design positive growth. The Board Risk Committee (BRC) keeps track of the development and review of risk management policies and plans, as well as the effectiveness of the structure and risk management framework. Performance management is the process of establishing a clear vision for the group's objectives and monitoring the strategy's and goals' implementation. Parts at TM, through card scores, also help to realize the vision. TM prioritizes service crisis management as a market leader in the broadband and fixed-line industries. To address the various types of breakdowns, various Network Operation Centres (NOCs) have been established. From the moment of failure to the start of recovery procedures, their Risk Management system continuously identifies, assesses, and understands potential risks and reacts promptly (Telekom Malaysia Berhad, Telekom Malaysia Sustainability Report, 2010). Every quarter, through briefing sessions, state-level conferences, and video conferencing, TM employees are reminded of the importance of responsible marketing. They ensure that all advertising and promotional materials adhere to their corporate advertising and promotions (A&P) guidelines (Telekom Malaysia Berhad, Telekom Malaysia Sustainability Report, 2010). These layout administrative procedures such as levels of approval for all advertising activities, monitoring, and tracking requirements, and A&P Product Campaign standards. Furthermore, PIP2019-2021 enabled TM to meet the goals set for 2019. Converged Services, Simple and Digital, and Lean and Lower Cost are the three strategic pillars of growth. TM's integrated network infrastructure and digital platforms, as well as its dedicated Warga TM, make this possible (Integrated Annual Report, 2019).

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3.2 Suppliers

Figure 3: Types of TM’s suppliers

Suppliers form an essential link in the company's overall customer value delivery network, which provides the resources needed by the company to produce its goods and services (Kotler, Armstrong, & Oprensik, 2018). Telekom Malaysia has stated that supplier relationship management is a two-way street in which employees and suppliers need to treat each other with the highest level of integrity. Telekom Malaysia has over 5,000 active suppliers, and as a reference, 96% of the telco sector's environmental footprint is located in the supply chain. Telekom Malaysia has three types of suppliers: TM's Active Suppliers, Purchasing Suppliers, and Foreign Purchasing Suppliers and Related Parties/Subsidiaries. The supplier is a person or corporation who supplies the resources required by the firm to generate the product or service for the client. Suppliers must take all reasonable steps to protect the environment, property, and persons who may directly or indirectly impacted by their operations. Since Telekom Malaysia is very concerned about Bumiputera, they purchase the products and services from local suppliers to channel the financial capital back into the Malaysian economy. It also gives priority to SMEs that contribute 38.9% to GDP29 (Mohd Yusrizal Ab Razak, 2020) and are the country's economic backbone. Telekom Malaysia needs to assist in lowering the unemployment rate among Bumiputera (Prime Minister's Office of Malaysia , 2020). Maintaining a good relationship with suppliers may help businesses achieve competitive advantages such as affordable offer rates.

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3.3 Marketing Intermediaries Marketing intermediaries, also recognized as distribution intermediaries, are firms hired by product manufacturers to promote, sell, and distribute their products to the final user (Makanus, 2020). Both individuals or businesses can act as market intermediaries. Under this element, the product's possession changes, resulting in additional transporting and inventory costs at each level. Furthermore, the product is made available at a retail store for a specific price. Although intermediaries present a challenge to firms when it comes to price competition, they are necessary because an extensive distribution network cannot be managed by the company alone (Skool, 2014).

Resellers, physical distribution firms,

marketing service agencies, wholesalers, and financial intermediaries are the most common forms of marketing intermediaries (Kotler Philip Armstrong, 2017). One of the distribution channel firms that can assist the organization in obtaining customers and bring sales to them is resellers. Wholesalers and retailers are two distribution channels that can purchase and resell merchandise in the organizations. Physical distribution firms help organizations in moving goods from their place of supply to their final destinations. Banks, credit unions, and insurance companies are examples of financial intermediaries (Kotler Philip Armstrong, 2017) . Unifi has become one of the best internets providers that offer their consumers a more extensive, virtual connection to a vast global network of relevant data in the quickest and efficient way. On the other hand, TM consistently delivered sustainable business performance and constructed value to the international customer and domestic worldwide. Their unwavering commitment to providing uncompromising better network quality and customer service was critical in connecting Malaysian society, organizations, and government agencies to the rest of the world, particularly during movement restrictions despite tons of challenges faced by the company in 2020 (TM, 2021). Their quick ability to meet customers’ rapidly rising bandwidth demand the main highlight of their firm effectiveness throughout 2020. The improvement of internet infrastructure solutions for domestic and international markets has continued to be a significant priority as they enhance the evolution of telecommunications technology. The wholesale market has seen incremental growth in international and domestic data traffic due to high bandwidth consumption by retail and innovation users and the prevalence of capacity demand through over-the-top providers. (Telekom Malaysia Berhad, Integrated Annual Report 2020, 2020).

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Furthermore, marketing services agencies include marketing research firms, advertising agencies, media firms, and marketing consulting firms that assist businesses in targeting and advertise their products to the appropriate markets. Telekom Malaysia Berhad also uses media to share accurate and vital information, which they can then publicize to help develop its image and reputation. The engagement platforms that involve in media publication including news releases, press conferences, media coverage, and media luncheons (Telekom Malaysia Berhad, Integrated Annual Report 2020, 2020) .

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3.4 Competitors In business, competition is a contest or rivalry between firms offering identical items and/or targeting the same target audience in order to obtain more sales, revenue, and market share than others (Pahwa, FEEDOUGH, 2021). A competitor is a person, corporation, team, or organization that competes with you or your business. Someone who is attempting to outrun you in a race is your competitor. Competitors are a vital feature of a free-market economy. Their existence in an industry aids in the reduction of the pricing of goods and services. A market monopoly exists when a business has no competitors. In a command economy, monopolies are prevalent (communism). They also exist in a free market when the primary business either destroys or acquires its competitors.

Figure 4: Unifi top's competitors.

As stated, Unifi is a flagship under Telekom Malaysia Berhad (TM). Opensignal, a mobile analytics company, have concluded that as by April 2021, the top three competitors for Unifi is Digi, Maxis and Celcom, followed by UMobile as the fourth (Hardik, 2021) . DiGi is one of Malaysia's major mobile operators that provides prepaid and contract mobile voice, roaming, and value-added services. The company had won several awards for its innovations and services, including being chosen as Malaysia's most innovative corporation. DiGi is committed to a sustainable business that is financially and environmentally responsible to all stakeholders through its corporate effort, Deep Green. (Telenor Group, 2020) Moving on, as for Maxis, it is Malaysia's largest convergent solutions provider, offering a wide range of high-quality digital services including voice, data, and solutions. They are enthusiastic about bringing the finest of technology together to enable individuals, businesses, and the country Always Be Ahead in an ever-changing world. To ensure that all of their customers have a quality communication experience, they are always investing in its network and IT infrastructure to improve speed, coverage, and dependability. In the year 2020, Maxis was awarded in the Asia e-Commerce Awards and PC.com Best Product of the Year award for Telco of the year, Best 4G coverage and Best Enterprise Telco (Maxis, 2021).

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Table 1: OpenSignal Awards April 2021

Referring back to Opensignal analytics, a lot of changes can be seen based on their previous reports. As stated in the table above, it is shown that DiGi won the Video Experience and Download Speed awards, which Maxis previously held. Simultaneously, U Mobile won the Voice App Experience and Upload Speed Experience awards outright, and the network also shared the Games Experience award with Maxis. Finally, Unifi was able to force a statistical tie with Celcom in terms of 4G availability (Hardik, 2021).

Figure 5: Open Signal

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3.5 Publics The marketing environment also includes publics. A public is a group of people who have a direct or indirect interest in, or influence over, an organi...