Marketing Management for Malayan Banking Berhad

The report analyzes the marketing management of Malayan Banking Berhad, including its product/market orientation, value proposition, segmentation, targeting, and positioning strategy. It also discusses the factors influencing consumer behavior and the nature of competition in the Malaysian market.

Running head: MARKETING MANAGEMENT
Marketing Management
Name of the Student
Name of the University
Author note

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Table of Contents
1.0 Introduction................................................................................................................................2
2.0 Company Overview...................................................................................................................2
3.0 Product/Market Orientation.......................................................................................................3
3.1 Product range offered............................................................................................................3
3.2 Company Orientation.............................................................................................................4
4.0 Company’s value proposition and differentiation.....................................................................4
5.0 Customers’ needs, wants and demand.......................................................................................5
6.0 Segmentation and Targeting......................................................................................................7
7.0 Positioning Strategy...................................................................................................................8
8.0 Factors influencing consumer behavior.....................................................................................9
9.0 Nature and level of competition..............................................................................................11
10.0 Conclusion.............................................................................................................................12
References......................................................................................................................................13

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1.0 Introduction
The report helps in the overall analysis of the product or the market orientation which
will be provided by the organization to the customers in the entire Malaysian market. The value
propositions along with the differentiation aspects used by the company is required to be
analyzed and identified in an effective manner which will be beneficial for the overall success of
the bank in comparison to the other competitors.
The needs and wants of the customers are required to be addressed through proper
segmentation and targeting strategy effectively. The different factors related to influencing the
behavior of the consumers will be discussed. Lastly, the nature of the competition in the market
of Malaysia will be identified to analyze the nature of the other competitors and the report will
be ended with conclusion.
2.0 Company Overview
Malayan Banking Berhad is one of the Malaysian Universal banks wherein the major key
operating of the bank is at Malaysia, Indonesia and Singapore (Maybank.com, 2018). The
Malayan Banking Berhad is one of the most valuable banks of Malaysia and this is the largest
bank in terms of the capitalization of the market. The bank was founded in the year 1960 and the
key people who are involved in the creation of the bank are Abdul Farid Alias who is the
president of the bank. Furthermore, the number of employees working in the organization is
45000 till the year 2015 and the net income of the bank till the year 2015 is RM6.84 billion. The
bank has been ranked 91st in the top banker’s list which was among the 2000 leading companies
in the entire world.

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3.0 Product/Market Orientation
3.1 Product range offered
There are different kinds of products and services which are being offered by Malayan
Banking Berhad are described as follows:
 ATM cards
 Savings Bank Account
 Term Deposit
 Current Account
 Mortgages
 Housing loans
 Car loans
 Traveler’s cheques
 Digital Banking
 Remittance Facility
The service which has been selected from the above is housing loan which falls under
the category of personal loan or services which is being offered by Malayan Banking Berhad.
The housing loans are the ones which is being provided to the customers for the purchase of the
house at low interest rate which is repayable over a long period (Achroll & Kotler, 2014).
This housing loan service is being offered by Malayan Banking Berhad which will be
beneficial for them to attract large number of customers by offering high interest rate effectively.

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Moreover, this kind of loan falls under the personal category as this is being provided to the
customers for purchasing their individual houses.
3.2 Company Orientation
From the overview of the organization and the products which are being offered by the
respective Malayan Banking Berhad bank, this can be identified that the respective company is
offering the mixture of both product and market orientation. They develop various products
keeping in view the demands of the various layers of the society and then the respective bank
markets the same to improve their business.
For this purpose, the respective Malayan Banking Berhad bank has established a full-
fledged department to develop different products keeping in view the economic scenario and
demands. After the entire development of the products which are being offered by them, the
marketing department reaches to various sectors to sell the same and receive the business for the
bank (Malhotra & Peterson, 2014). The other perspective which is being followed by Malayan
Banking Berhad is the customer oriented approach which is beneficial in nature in benefitting the
customers which is helping them in gaining competitiveness in the entire market.
4.0 Company’s value proposition and differentiation
The unique and differentiating factor of the housing loan which is being offered by
Malayan Banking Berhad is the competitive kind of interest rate which helps in attracting the
clients of the entire Malaysian economy. The interest rate of the Malayan Banking Berhad Bank
is 10.50% annually in the present scenario; on the contrary, in the other banks the range of the
interest rate is more than 11% which is assisting them in succeeding in the overall aspect in a
proper manner.

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Moreover, the bank charges minimum processing along with other miscellaneous costs
from the different clients who are the major customers of the Malayan Banking Berhad bank. As
the rate of interest of the respective bank is less, this has helped in the higher economic growth
and the high rate of inflation in the Malaysian economy.
Furthermore, this has been noticed that the processing time of the loan of Malayan
Banking Berhad is kept at a minimal level in comparison to the other banks. Additionally, in
comparison to the other banks, this can be analyzed that GDP rate of Malaysian economy is high
in nature and this is the other competitive aspects of Malayan Banking Berhad Bank that can be
helpful in managing the different kinds of activities in a proper manner (Malhotra & Peterson,
2014).
5.0 Customers’ needs, wants and demand
The needs, wants and the demands of the customers are the vital part of the marketing
principles and the three words hold complex kind of meaning with high factor of differentiation.
Needs
The needs of the human beings are the basic requirements which are inclusive of food,
shelter and clothing. The need is the desire of the customers for a particular products and
services whether it is emotional or functional in nature.
Wants
The wants of the human beings are step ahead of the needs which are largely dependent
on the different human beings itself. This is the desire of the customers in order to fulfill the

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different needs which will help them in satisfying the consumption of the products and services
(Kotler & Keller, 2014).
Demands
The demands of the individuals are defined as the needs of the human beings along with
the analysis of the ability of the humans to purchase the respective object or not (Kotler &
Keller, 2014). The demand of the customers is about meeting the different inventory along with
service demands and in the present scenario, the demands of the customers are far exceeded from
the expectations of the customers in the market.
The products which have been selected from Malayan Banking Berhad Bank are housing
loan which helps in meeting the needs of the customers in an efficient and operative manner.
There are different importance of the housing plan which is being provided to the customers of
Malaysia are being described as follows:
In Malaysia, more than 50% of the population does not have their own accommodation
facilities and the majority has rented accommodation and they are at the mercy of the landlords.
In this respective case, they look forward to their own accommodation which they cannot afford.
At this junction, the housing loan provided by Malayan Banking Berhad Bank plays a pivotal
role to this sector by offering long-term repayment at competitive interest rate.
Furthermore, the housing loan helps the ancillary sectors which are the cement industry,
electrical industry along with the others to grow in the entire competitive kind of market. With
the help of the same, the new employment is generated.

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Additionally, the demand plays a strong role for the housing loans by the different
customers in Malaysia. As discussed earlier, this has been noticed that there are more than 50%
of the populations who are below the poverty line and this is effective in nature for the
individuals to search a permanent residence for their living (Malhotra & Peterson, 2014). In
order to improve the accommodation services, this is essential in nature for Malayan Banking
Berhad Bank to understand the position and demand of the same and offer the similar products at
an affordable rate.
6.0 Segmentation and Targeting
There are different kinds of bases which are being used by the banking industry in
segmenting the market. The segmentation of the housing loan is being done by the Malayan
Banking Berhad in the following manners which are as follows:
Demographic Variables
 Location- Metro along with different divisional cities
 Occupation- Business Individuals along with the salaried class
 Age- Minors and Senior Citizen
Psychographic Variables
The different kinds of individuals who believe in modern banking aspects and approaches
with high set of services such as internet banking technique
Geographic Variables

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The places which are inclusive of the different divisional cities which will be beneficial
for the success of the firm
Behavioral Variables
The lifestyle of the individual is moderate and the person is having a regular income and
salaried employee of an organization
The targeting strategy which has been applied by Malayan Banking Berhad is retail
banking market wherein the bank is customer focused and service oriented in nature as well
(Philip & Kotler, 2017). The bank has created a survey in which the different opinions of the
customers have been taken into account which will be beneficial for the overall success of the
firm in a positive manner (Moore et al., 2015). The bank has tried to position them as the one
which helps in providing higher standards of services through proper innovation of the product
along with analysis of the different needs of the customers effectively.
7.0 Positioning Strategy
The value proposition which have been taken into consideration by Malayan Banking
Berhad Bank in the entire Malaysian market is related to the competitive rate of the interest and
charges minimal rate for the loan which is being taken and opted by the individuals from the
respective bank as well. With the help of the positioning map, this can be analyzed that the bank
is customer centric along with providing the housing loans at the minimal rate which attracts
more customers in the market as well (Kotler & Keller 2015).

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Figure 1: Positioning Map
(Source: Created by Author)
From the respective figure, this can be analyzed that the respective bank is focusing
mainly on providing the best quality services to the customers who will be beneficial for them in
gaining success in the market effectively. Furthermore, the value proposition of housing loan at
minimal interest rate is the main aspect which is being followed in the bank in comparison to the
other competitors in the market of Malaysia as well (Sargeant & MACQUILLIN, 2016).
8.0 Factors influencing consumer behavior
There are different kinds of factors which are influencing the behavior of the consumers
in a positive manner. The different factors are inclusive of external and internal factors which are
discussed as follows:
Internal Factors

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 Age- The age group of 25-55 years of age who are the most common customers who
apply for the housing loans from the bank (Foxall, 2014)
 Lifestyle- The customers who do not have proper permanent accommodation to stay in
the economy
 Income- The ones whose income is not high and they do not have the ability to purchase
the property with their own money, they can apply for home loans (Weinstein &
Pohlman, 2015)
 Profession- The profession of the individuals should be permanent and stable in nature
and they should have a proper income statement to showcase in the bank as well
External Factors
 Social Class- This is the first external factor which is required to be taken into
consideration as this helps in determining the lifestyle along with interests of the
individuals (Shaw, 2016). Reference Groups- The individuals will be using the references of the different
customers in the market which will provide them a brief detail on the interest rate of the
bank (Villeneuve & Pasquier, 2017) Role and Status- This is the other aspect which is required to be taken into consideration
as the different groups have different kinds of values and beliefs (Chernev, 2018) Family- The family plays a major role in managing the buyer behavior in an effective
manner which can affect the overall buying behavior of the individuals in a positive
manner (Wagner & Eggert, 2016)

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9.0 Nature and level of competition
The nature of the market in which Malayan Banking Berhad is operating in the market is
falling under the oligopolistic market. There are different kinds of characteristics of the bank
which is inclusive of the interdependence of the firms in the process of decision-making.
However, there is lack of uniformity and there is no unique kind of pattern for the pricing
behavior as well. The level of competition in the respective market is high and this can affect the
overall efficiency of the different firms in a negative manner (Miquel-Romero, Caplliure-Giner
& Adame-Sánchez, 2014).
Reasons of Banking Industry Competing in Oligopolistic Market
The banking industry is competing in the oligopolistic market as this is the free kind of
economy wherein all the banks have the independence on the process of decision-making (Kotler
& Keller, 2014). Furthermore, this has been noticed that the entire pricing is being based on the
demand and supply of the different customers in the market which will be effective in nature.
Moreover, this has been noticed that there is huge competition in the market which can play a
major role in the oligopolistic market (Bresler & Lubbe, 2014).
Types of Competitors
Direct Competitors
 Affin Bank Berhad
 Alliance Bank Malaysia Berhad
 AmBank (M) Berhad
 Bangkok Bank Berhad

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Indirect Competitors
 Money Lenders
 Private Finance Companies
 Credit Card Providers
10.0 Conclusion
From the above, this can be concluded that the Malayan Banking Berhad Bank is one of
the best banks which are operating in Malaysia. The nature and level of the competition is
oligopolistic in nature as there are different other public and private banks which are operating in
Malaysian market which can be hugely competitive in nature. Furthermore, the different factors
have been disclosed effectively which has influenced the behavior of the customers in the market
in a negative market and this has helped Malayan Banking Berhad in becoming more successful
in their different approaches. The different products and services of the bank have been taken
into consideration which is inclusive of the housing loan that has helped them in becoming more
effective in comparison to the other competitors in the market.

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References
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Bresler, M., & Lubbe, I. (2014). Marketing management.
Chernev, A. (2018). Strategic marketing management. Cerebellum Press.
Foxall, G. (2014). Strategic Marketing Management (RLE Marketing). Routledge.
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Malhotra, N. K., & Peterson, M. (2014). Basic marketing research. Pearson.
Marshall, G. (2014). Marketing management. McGraw-Hill Higher Education.
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Moore, R. S., Moore, M. L., Shanahan, K. J., & Mack, B. (2015). Creepy marketing: Three
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