Macro Environment of Business in Bangladesh

The factors which influence a decision are also called as its environment. For any decision there
is number of factors which influences the decision. Be it a decision related to any organization,
any business concern or even an individual. Thus it is as such very much necessary to understand
the influence of each parameter.

The environment, where found consumers, marketers, marketing researchers, marketing

intelligence and some other engaged in marketing process & goods or product is being supplied,
is known as marketing environment.

The company and all of the other actors operate in a large macro environment of forces that
shape opportunities and pose threats to the company is known as macro environment. The actors
and forces outside marketing that affect marketing management ability to build and maintain
successful relationship with target customers.

Modern Bangladesh emerged as an independent nation in 1971 after breaking away and
achieving independence from Pakistan in the Bangladesh Liberation War. The country's borders
coincide with the major portion of the ancient and historic region of Bengal in the eastern part of
the Indian subcontinent, where civilization dates back over four millennia, to the Chalcolithic.
The history of the region is closely intertwined with the history of Bengal and the history of
India.

The area's early history featured a succession of Indian empires, internal squabbling, and a tussle
between Hinduism and Buddhism for dominance. Islam became dominant gradually since the
13th century when Sunni missionaries such as Shah Jalal arrived. Later, Muslim rulers initiated
the preaching‟s of Islam by building masjid (mosques) and madrassas. From the 13th century
onward, the region was controlled by the Bengal Sultanate. Afterwards, the region came under
the suzerainty of the Mughal Empire, as its wealthiest province. Bengal Subah generated 50% of
the empire's GDP and 12% of the world's GDP, with the capital city Dhaka having a population
exceeding a million people.

Following the decline of the Mughal Empire in the early 1700s, Bengal became a semi-
independent state under the Nawabs of Bengal, before it was conquered by the British East India

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Company at the Battle of Plassey in 1757, directly contributing to the Industrial Revolution in
Britain and to deindustrialization and famines in Bengal. The Bengali city of Calcutta served as
the capital city of British India up until the early 20th century.

The borders of modern Bangladesh were established with the partition of Bengal and India in
August 1947, when the region became East Pakistan as a part of the newly formed State of
Pakistan following the Radcliffe Line. However, it was separated from West Pakistan by 1,600
km (994 mi) of Indian Territory. Due to political exclusion, ethnic and linguistic discrimination,
as well as economic neglect by the politically dominant western-wing, popular agitation and civil
disobedience led to the war of independence in 1971. After independence, the new state endured
famine, natural disasters, and widespread poverty, as well as political turmoil and military coups.
The restoration of democracy in 1991 has been followed by relative calm and rapid economic
progress. Bangladesh is today a major manufacturer in the global textile industry.

The environment can be Internal; can be controlled by the organization. Micro, specific to the
industry and is different for different industries. And lastly Macro, generic in nature and impacts
the whole business environment.

The business environment is a marketing term and refers to factors and forces that affect a firm's
ability to build and maintain successful customer relationships. The entire marketing
environment can be classified into 2(two):

Marketing
Environment

Micro Macro
Environment Environment

Chart: Classification of Marketing Environment.

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Company aspect of micro-environment refers to the internal environment of the company. This
includes all Departmentalization departments such as management, finance, research and
development, purchasing, Business operations and accounting. Each of these departments
influences marketing decisions.

The macro-environment refers to all forces that are part of the larger society and affect the
micro-environment. It includes concepts such as demography, economy, natural forces,
technology, politics, and culture. 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 enterprise to achieve the goal of the enterprise marketing.

An organization's macro environment consists of nonspecific aspects in the organization's

surroundings that have the potential to affect the organization's strategies. When compared to a
firm's task environment, the impact of macro environmental variables is less direct and the
organization has a more limited impact on these elements of the environment.

Six largely uncountable external forces influence an organization‟s marketing activities and
shape opportunities is known as macro environment.

Major external and uncontrollable factors that influence an organization's decision making, and
affect its performance and strategies. These factors include the economic, demographics, legal,
political, and social conditions, technological changes, and natural forces is known as macro
environment.

For example, the macro environment could include competitors, changes in interest rates,
changes in cultural tastes, or government regulations

In a whole we can say that the factors that are major part of the company & uncountable factors
which influence an organizations‟ marketing are known as macro environment.

Macro environmental Analysis of Bangladesh:

Here for the macro environmental analysis, instead of focusing on a certain company or industry,
the focus is shifted towards a broader context of the whole of Bangladesh. Thus, a certain
industry or a company is not to be focused upon. Rather, a general analysis is done in an overall

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context of different industries. All points discussed below are relevant to the Macro environment
and exclusive for Bangladesh. Some factors play a major role in the trades of any country. So,
for a country, these macro environment factors need special consideration while doing business;
especially when the trade is between two countries.

Macro Environmental Factor:

The company and all of the other actors operate in a larger macro environment of forces that
shape opportunities and pose threats to the company. There are six major forces (outlined below)
in the business macro environment.

1) Demographic Environment
2) Economic Environment
3) Natural Environment
4) Technological Environment
5) Legal and Political Environment
6) Social and Cultural Environment

1) Demographic Environment:

Demography is the study of human populations in terms of size, density, location, age, gender,
race, occupation, and other statistics. The demographic environment is of major concern to
marketers because it involves people. And a set of potential and actual customers (people) make
up markets. The world population is growing at an explosive rate. It now exceeds 7.1 billion
people and is expected to grow to more than 8 billion by the year 2030. The world‟s large and
highly diverse population poses both opportunities and challenges.
Bangladesh is one of the most thickly populated countries in the world. This has a population of
about 140.6 million at present within a total surface area of 147,570 sq. km. The density of
population is 97.9 per sq. km, which is one of the highest in the world. The annual growth rate of
population is 1.39 percent, which has gradually declined in the recent years. The fertility rate,
which is above 2.7 per 1000 live births, is high but is gradually declining. The sex ratio is 105:
100 male/female.

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Bangladesh is a large and heavily densely populated country in South Asia, bordering Burma,
India, Nepal and Bhutan. Bangladesh has an estimated 2018 population of 166.37 million, up
from the 2013 estimate of 156.5 million. This makes Bangladesh the 8th most populous country
in the world.
The Among two sides macro environment is very much effective or important in case of
marketing environment which is out of control of company‟s manager. Moreover, under macro
environment demographic environment is very effective and important. For a businessman the
first and foremost considerable topic is population or market size. Without population there is
nothing for a market. For this reason before entering into a marketing one must keep in mind
about the changes about population. Effect of changes on demographic environment is given
below:

Natural Growth in Bangladesh:

Through the 1960s and 1970s, the birth rate in Bangladesh was among the highest in the world
but that started to slow down considerably in the 1980s. The fertility rate is now at 2.4 children
born per woman. Bangladesh has a fairly young population with 34% aged 15 and younger and
just 5% aged 65 and older.

Bangladesh Surface Area and Population:

Density The country has a population density of 1,115.62 people per square kilometer,
(2,889.45/square mile), which ranks 11th in the world. The surface area in Bangladesh is
currently at 147,570 km² (or 56,977 square miles).

Ethnic groups in Bangladesh:

98% of the Bangladesh populations are ethnic Bengalis with the remaining 2% made up from
Biharis and other ethnic tribes. Minorities in Bangladesh include indigenous people in northern
Bangladesh and the Chittagong Hill Tracts, which have 27 ethnic tribal groups such as the
Chakma, Tanchangya, Kuki, Bawm and Marma. The Mymensingh region is home to a large
Garo population, while North Bengal has a large population of aboriginal Santals.

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In terms of religions preferred by the population, we see that Muslim comes in with 89.1% of the
population, Hindu with 10%, and other religions make up the remaining 0.9% (includes
Buddhist, Christian) of the population.

Age Structure of Bangladesh:

The most important course is the changing age structure of the population. The population is
aging because of a rapid growth in the birth rate (in this country) and life expectancy is
increasing. The new prime market is the young age group. In Bangladesh most of the company‟s
main target market is young age people. For example, in most of the departmental stores child
and young age people‟s products are getting more priority than others.
The number of different ages of people such as the number of children, teenage, youth, old
person should be kept in mind at the time of doing marketing strategy. Because a product cannot
be certified for every ages of customer. Moreover, at the time of increasing of population the
growth of demand of product rises should be noticed otherwise marketing process won‟t be
effective at all. On the contrary at the time of the decrease of population the demand falls. This is
the reason at the time of doing marketing strategy the matter of population must be analyzed. For
example, Grameen Phone is one of the leading telecommunication companies in Bangladesh.
They have a product named “Djuice”. The motive of this product is to capture the market of
youth. So, the company has been setting up its advertisement, tariff, voice call and sms charges
in a way that attracts the attention of youth. As a result most of the youth use Djuice.
This entry provides the distribution of the population according to age. Information is included
by age group as follows:
Age Groups Percentage of Population in Age Group
0-14 27.76%
15-24 19.36%
25-54 39.73%
55-64 6.93%
65 years and over 6.23%
The age structure of a population affects a nation's key socioeconomic issues. Countries with
young populations (high percentage under age 15) need to invest more in schools, while
countries with older populations (high percentage ages 65 and over) need to invest more in the

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health sector. The age structure can also be used to help predict potential political issues. For
example, the rapid growth of a young adult population unable to find employment can lead to
unrest.

Quality of Life in Bangladesh:

The good news is, Bangladesh has managed to climb four rungs on a ranking of the quality of
life for children. The bad news is that it still ranked a disappointing 130th out of 175 countries,
falling behind even deeply beleaguered places like Palestine and North Korea.
In the region, Bangladesh displayed a middling performance, ahead of Pakistan (149), and
Afghanistan (160), but well behind Sri Lanka (60), Myanmar (107), and India (113). According
to the report, more than a third of children under 5 still suffer from stunting, 44% of teenagers
are married before they turn 20, and nearly 3.5% of children do not survive their fifth birthday,
all challenges currently facing Bangladesh‟s children.
According to UNESCO data, Bangladesh‟s drop-out rate for school children has gone down by
36% over the past five years. Bangladesh has made impressive progress in recent years,
particularly when it comes to access to schooling.

Life expectancy in Bangladesh:

According to the latest WHO data published in 2018 life expectancy in Bangladesh is: Male
71.1, female 74.4 and total life expectancy is 72.7 which gives Bangladesh a World Life
Expectancy ranking of 97. The accessibility of clean water and improved sanitation is still
struggling with respective numbers of 13.1% struggling for clean water and 39.4% struggling to
access sanitation. Only 72.8% of the population over 15 years of age is literate, with a GDP
expenditure of only 2.5% on education.

Components of Population Change:

 One birth every 10 seconds
 One death every 36 seconds
 One net migrant every 1 minutes
 Net gain of one person every 18 seconds

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Changes in Family Structure:
The “traditional family” consists of a husband, wife, children (and sometimes grandparents).
Family can be of two types – Nuclear family & Extended family. In Bangladesh most of the
families in metropolitan areas are nuclear, but in rural areas most are extended. Here most of the
companies produce goods and services on the basis of family size.
For example, Pepsodent family packs for extended family and small pack for nuclear family.
Now a day‟s one can easily identify the changes of family life style such as- the growth of
working class women, income capability of women, adult marriage of women and the right of
divorce of women etc. also important for doing marketing strategy. For doing more services or
jobs outside home the household task of women has gone to the slave. And now we can observe
a crisis of slave. Actually the development of garment industry has created this problem. For this
reason people are eager to do a less physical labored task. And prepared food, half cooked food,
bread, washing machines etc. are used more. So, now we use packet mashla, pressure cooker,
rice cooker, washing machine, go to restaurants for food for save our time but those things
created market for the product and the marketers getting benefit from their work and growing
rapidly.

Geographical Shifts in Population:

Geographical shift is a period of migratory movement between and within countries. The shift in
where people live has also caused a shift in where they work. Geographically living of
population and the shift of geographical living of population create impact on marketing. For a
lot of reason people tend to go to big cities. For this reason peoples‟ life style and their demand
style are changing. Moreover, producing product for tourist, job seeking people, businessmen is
also profitable business. Besides, people are going abroad and coming back to the country and
making a change in their demand style which has to be kept in mind to keep pace with the global
growing market.

Here in Bangladesh most of the people are shifting themselves from rural to the metropolitan
areas. So, market of this mega city is bigger than others. For example, more and more people are
shifting to Dhaka city. So, all the business organizations are making their business plan
depending on the situation. Now we can see that people from different areas/districts of the
country are getting their rural home products sitting easily in Dhaka city. For example, people
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from all over the country are getting “Taat Sharee” of Tangail very easily. The availability of
this product is the cause of their geographical shift.

Better Educated, White-Collar, More Professional Population:

Education rate and job distribution also be remembered at the time of doing marketing strategy.
Because the taste, choice, habit, communicating process cannot be same of an educated and a
non educated person. The some thought is applicable for the people of different working people.
Our education rate is increasing on a regular basis. Now people are eager to do industrial job or
service more than farming. These changes are very important for marketing strategy.

In Bangladesh, rate of educated people is increasing very positively. The work force is be-
coming more white-collar. The rising numbers of educated and more white-collar people are
increasing the demand of good quality products such as book, magazines, travel and other
services. Educated people are using more technologies such as personal computer and internet
service. For example, recently there is a rapid growth of internet users. The total number of
Internet Subscribers has reached 91.194 Million at the end of September, 2018.

OPERATOR SUBSCRIBER (Million)

Mobile Internet 85.381

WiMAX 0.080
ISP + PSTN 5.734
Total 91.194

Since liberation, the country has seen a drastic change in lifestyle of the people and there has
been an increase of smaller nuclear families living the cities and a decrease of village-based joint
families. These changing family structures have provided excellent opportunities for marketing
such as Real State, Entertainment Centers, Restaurant Businesses, and Automobile Import etc.
This has also led to changes in occupation among people. People are also better educated and
more professional in workplaces. And the change in age structure has led younger people to earn
and spend more and provides businesses opportunities to cater exclusively for them, i.e. Event
Management, Music Cafes, and lounges etc.

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Increasing Diversity:

The final demographic course is the increasing ethnic and racial diversity of the population.
Marketers now face increasingly diverse markets, both at home and abroad, as their operations
become more international in scope. Diversity is a force that must be recognized in the next
decade. However, business must acknowledge that diversity goes outside ethnic heritage.

For example, in Dhaka city different kinds of people are coming from different areas with
various thoughts, beliefs and habits. These varieties are creating much diversity among people.
Depending on these people‟s living and consumption patterns are varying.

2) Economic Environment:

The economic environment consists of economic factors that affect consumer purchasing power
and spending patterns. Marketers must pay close attention to major trends and consumer
spending patterns both across and within their world markets. In market not only people but also
their buying ability is needed. Because buying ability less market is for nothing. And buying
ability rely on peoples‟ earning condition, price of a product, savings and debt facilities.

In term economic environment refers to all the external economic factors that influence buying
habits of consumers and businesses and therefore affect the performance of a company. These
factors are often beyond a company‟s control, and may be either large-scale (macro) or small-
scale (micro).

Macro factors include:

 Employment/unemployment
 Income
 Inflation
 Interest Rates
 Tax Rates
 Foreign Trades
 Currency Exchange Rate
 Saving Rates
 Consumption Confidence Levels

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  Recessions

As we know demand is defined as Desire for a product backed by willingness and ability to pay.
Thus it is not only the people but also their ability to buy a product is vital for a marketer. Ability
to pay can be measured in terms of Income change (Distribution) and consumers spending
patterns. At the time of doing marketing strategy one must remember the shift of earning as well
as the spending and by analyzing these one should make their marketing policy. How economic
environment effect marketing decisions are given below:

Changes in Income:

Bangladesh's per capita income rose to USD 1,751 and gross domestic product (GDP) growth
reached 7.86% this fiscal year (2017-2018). The growth rate of GDP in agriculture, industry and
services sectors this year was 4.19%, 12.06% and 6.39% respectively, the minister added.

Per capita income was $1,610 in the last fiscal year (2016-2017), while the GDP was 7.28%, the
minister said while talking to reporters after a meeting of the National Economic Council (NEC).
Poverty and extreme poverty rates have also come down to 21.8% and 11.3% respectively which
was 23.1% and 12.1% in 2017.

Bangladesh Labor Last Previous Highest Lowest Unit

Unemployment Rate 4.20 4.20 5.10 2.20 Percent
Employed Persons 60.80 59.50 60.80 39.00 Million
Wages 13258.00 12897.00 13258.00 11493.00 BDT/ Month
Population 161.80 159.90 161.80 50.10 Million
Living Wage Family 15100.00 15100.00 15100.00 14100.00 BDT/ Month
Living Wage Individual 8080.00 8090.00 8090.00 7420.00 BDT/ Month
Minimum Wages 5300.00 5300.00 5300.00 5300.00 BDT/ Month
Retirement Age Men 59.00 59.00 59.00 57.00
Retirement Age Women 59.00 59.00 59.00 57.00
Wages High Skilled 9690.00 9690.00 9690.00 9690.00 BDT/ Month
Wages Low Skilled 5210.00 5210.00 5210.00 5210.00 BDT/ Month
Unemployed Persons 2.70 2.60 2.70 1.40 Million

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Bangladesh being coming forth economy with a GDP of $258.608 billion and Per capita income
of $1572(PPP Terms) which is increasing gradually. This also impacts the general economic
conditions of the economy. The Distribution of Income is also one of the important parameters
that shall be considered. A high inequality in distribution will lead to limited potential as the
market is widely controlled by few rich as they have the purchasing capability. Income
inequality of Bangladesh has come down as the Gini coefficient has shrunk by 0.01 in last five
years, said a top government official quoting the latest Household Income and Expenditure
Survey (HIES). It is good news that the Gini coefficient has dropped. It means that the income
inequality or unequal wealth distribution has been coming down. "It is good news that the Gini
coefficient has dropped. It means that the income inequality or unequal wealth distribution has
been coming down.

Though our per capita income grows but customers‟ real purchasing power falls for 3 decades.
Increase rate of inflation, increase rate of unemployment, taxes, economic uncertainty also
responsible for the downward shift of economic condition of customer. For trade and foreign
support some peoples‟ purchasing power are increasing but limited earned peoples‟ condition
getting worse day by day. In terms of Bangladesh, the farming product‟s price is not increasing
keeping pace with the industrial product so the farmers‟ condition are getting worse day by day.
In future price may increase so people tend to buy product and storage. For this reason
multinational companies are applying effective techniques for rural class people. Radio
advertisement, mini pack of product, buy at installment etc. are the major example of this
initiative. For example, people of Bangladesh are buying color TV rather than black and white
TV, they buying refrigerator, air conditioner, and cars like Lexus etc which denotes their level of
income increasing and the preferring higher standard of living. Now big companies are in market
they offering higher remuneration to the people who are searching for job. These people are
joining there and increasing income which results in a market with a high rate of cash flow.

Employment & Unemployment of Bangladesh:

In Bangladesh, the unemployment rate measures the number of people actively looking for a job
as a percentage of the labor force. Unemployment Rate in Bangladesh remained unchanged at
4.20 percent in 2017 from 4.20 percent in 2016. Unemployment Rate in Bangladesh averaged

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3.85 percent from 1991 until 2017, reaching an all-time high of 5.10 percent in 1997 and a record
low of 2.20 percent in 1991.

Inflation Rate in Bangladesh:

In Bangladesh, the most important categories in the consumer price index are food, non-
alcoholic beverages and tobacco (59% of the total weight) and gross rent, fuel and lighting
(16.9%). The index also includes: clothing and footwear (6.9%); transport and communication
(4.2%), recreation, entertainment, education & cultural services (4.1%); miscellaneous goods and
services (3.6%); medical care and health expenses (2.8%) and furnishing (2.7%).

Bangladesh’s Consumer Price Index CPI:

Consumer Price Index CPI in Bangladesh increased to 259.13 Index Points in October from
257.62 Index Points in September of 2018. Consumer Price Index CPI in Bangladesh averaged
125.70 Index Points from 1993 until 2018, reaching an all-time high of 259.13 Index Points in
October of 2018 and a record low of 51.99 Index Points in July of 1993.

Looking forward, we estimate Consumer Price Index CPI in Bangladesh to stand at 273.33 in 12
months‟ time. In the long-term, the Bangladesh Consumer Price Index (CPI) is projected to trend
around 293.21 Index Points in 2020, according to our econometric models.

Taxes in Bangladesh:

In Bangladesh, the principal taxes are Customs Duties, Value-Added-Tax (VAT), Supplementary
Duty and personal income taxes and corporate income taxes. The standard rate of VAT is 15%
levied on transaction value of most of the imports and supplies of goods and services.

Tax Holidays:

Finance Bill 2018 makes no changes to the current tax legislation providing tax holidays for:

 Industries established in export processing zones (5 to 7 years, depending on location)

 Investment in economic zones (10 years) and development of economic zones (12 years)
 Industrial undertakings (5 to 10 years, depending on location)
 Physical infrastructure (10 years)

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  Coal-based private power generation companies (15 years)
 Non-coal-based power generation companies (10 years).

The tax holiday (until 2024) for companies engaged in “information technology enabled
services” also remains intact, although Finance Bill 2018 includes specifically defines these
services.

Foreign Exchange Laws:

Bangladesh has very strict foreign exchange control laws. Though Taka, the Bangladeshi
currency in freely convertible, transaction of foreign exchange is highly regulated. Remittance of
money outside Bangladesh is allowed only for specific circumstances and is required to be
supported by appropriate documentation. Foreign Exchange Regulation Act 1947 (“FERA”) is
the basic law in this regard and provides the legal basis for regulating certain payments, dealings
in foreign exchange as well as securities.

Bangladesh Bank, the central bank of Bangladesh is responsible for administering foreign
exchange transactions in Bangladesh. Bangladesh Bank time to time issues directives regarding
foreign exchange transaction and summaries of the main directives are published by Bangladesh
Bank and named as Guideline for Foreign Exchange Transactions (the “Guidelines”). All foreign
exchange should be transacted pursuant to the Guideline and FERA, otherwise criminal charges
could be brought in.

Foreign Investment:

The confidence of foreign investors in Bangladesh has increased, as the country has taken a
series of measures to: build up investment-friendly infrastructure; develop the energy sector;
provide necessary facilities and support to set up industries; and simplify rules and regulations.
Foreign Direct Investment in Bangladesh increased by 1706 USD Million in 2017.

Foreign Direct Investment in Bangladesh averaged 958.13 USD Million from 2002 until 2017,
reaching an all-time high of 1726 USD Million in 2013 and a record low of 276 USD Million in
2004.

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Foreign Trades;

Since becoming independent, Bangladesh has had a negative trade balance, with its deficit being
financed by international aid and expatriate transfers. The trade deficit as of January 2018
amounted to approximately USD 2.1 billion.

The country's main export partners are the European Union, the United States and China. The
main export products are clothes, raw jute and its derived products, leather, fish and frozen
seafood. Bangladesh mainly imports machinery and equipment, chemical products, steel &
metals, cement, food and oil derived products. Bangladesh imports most of its products from
Thailand, India, China, Indonesia and Singapore.

Exports from Bangladesh hit record levels in 2017 (USD 35.91 billion) due to stronger garment
sales. The government expects this number will have a significant growth in 2018.

Main Sectors of Industry:

The Bangladeshi economy relies on its enormous human resources, rich agricultural soils and
abundant water resources. Although 56.5% of GDP was generated by the service sector in 2017,
nearly half of Bangladeshis are employed in agriculture. Agriculture (14.8% of GDP) mostly
involves rice production, but it also includes tea, jute, wheat, sugarcane, tobacco, spices, fruits,
etc. In fact, Bangladesh is the world's fourth biggest rice producer, although shortages caused by
natural disasters occasionally force it to import said crop.

Industry represents 29.2% of GDP (a slight increase from last year's 28.8%) and employs 19.1%
of the population. The backbone of the industrial sector is the production of garments, with
textile exports representing 80% of the total exports and surpassing USD 34 billion in 2017.
Other industrial products include paper, leather, fertilizers, metals, and pharmaceuticals.

Breakdown of Economic Activity by Sector Agriculture Industry Services

Employment by Sector (in % of Total Employment) 39.1 21.1 39.8
Value Added (in % of GDP) 13.4 27.8 53.5
Value Added (Annual % Change) 3.0 10.2 6.2

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Economic freedom:

The Economic freedom index measure ten components of economic freedom, grouped into four
broad categories or pillars of economic freedom:

1. Rule of Law (property rights, freedom from corruption);

2. Limited Government (fiscal freedom, government spending);
3. Regulatory Efficiency (business freedom, labor freedom, monetary freedom); and
4. Open Markets (trade freedom, investment freedom, and financial freedom).

Each of the freedoms within these four broad categories is individually scored on a scale of 0 to
100. A country‟s overall economic freedom score is a simple average of its scores on the 10
individual freedoms.

Consumers Saving in Bangladesh:

Personal Savings in Bangladesh increased to 5004.60 BDT Billion in 2017 from 4328.30 BDT
Billion in 2016. Personal Savings in Bangladesh averaged 1412.11 BDT Billion from 1994 until
2017, reaching an all-time high of 5004.60 BDT Billion in 2017 and a record low of 177.40 BDT
Billion in 1994. Personal Savings in Bangladesh are shown below-

Bangladesh’s Consumers Spending

Bangladesh Consumer Last previous Highest Lowest Unit

Consumer Spending 17099.29 14753.56 17099.29 7269.66 BDT Billion
Disposable Personal Income 60355.24 58442.00 60355.24 36448.00 BDT THO
Personal Savings 5004.60 4328.30 5004.60 177.40 BDT Billion
Private Sector Credit 88417.00 8746.40 88417.00 498.27 BDT Billion
Consumer Credit 10312.85 10181.32 10312.85 220.17 BDT Billion
Bangladesh‟s Consumers Spending The economy of Bangladesh has experienced a stable growth
since 1980. Over the past two decades, the country has recorded an annual average growth rate
of 6% of GDP and has reduced the poverty rate by half : in 2016, 24,8% of the population was
considered under the poverty line, compared to 48,1% in 2000. Growth amounted to 7% in 2017
supported by remittances from nearly 7.5 million Bangladeshi living abroad (USD 12.85 billion
in 2017), garment exports, increased wages and low inflation. Continued growth is expected

16
given macroeconomic stability along with credit growth and increased private investment.
According to the Bangladesh Bureau of Statistics, per capita income grew from USD 1,532 to
USD 1,660 from fiscal year 2017 to 2018 (a 8% growth). The inflation rate is estimated to reach
5.8% in 2018 while the interest rate sits at 6.75%.

Changing Consumer Spending Patterns:

The spending patterns are different basis on earning patterns so their buying patterns also
different. Food, housing and transportation use up the most house hold income. As family
income rises, the percentage expense on food declines, spent on housing remains constant, and
both the percentage spent on most other categories and that devoted to saving categories. At the
time of increasing of income the eating habit gets changed. Again the storage of product or the
shortage of product may cause the change of demand.

Changes in major economic variables such as income, cost of living, interest rates, and savings
and borrowing patterns have a large impact on the market place. Companies watch these
variables by using economic forecasting. Business does not have to be wiped out by an economic
down turn or caught short in a boom. With adequate warning they can take advantage of changes
in economic environment.

We can say that now those demographic and economical environments help to take marketing
decisions.

3. Natural Environment

Natural environment is the study of an important component of the nature. i.e. natural
environment. Natural environment includes geographical and ecological factors areas as below:
• Natural resource endowments,
• Weather
• Climate conditions
• Topographical factors
• Location aspects in the global context
• Port facilities are relevant to business.

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Difference in geographical conditions between markets may sometimes call for changes in the
marketing mix. Geographical and ecological factors also influence industries which help material
index tend to be located near the raw material sources.
The natural environment involves natural resources that are needed as inputs by marketers or that
are affected by marketing activities. During the past two decades environmental concerns have
steadily grown. Some analysts labeled the specific areas of concern were:
Shortage of Raw Material:

Marketers should be aware of several trends in the natural environment. The first involves
growing shortages of raw materials. Air and water is unlimited but for some industrial reason
these resources gets polluted. Air pollution chokes many of the world‟s large cities, and water
shortages are already a big problem in the world. By 2030, more than one in three people in the
world will not have enough water to drink. For this reason mass consciousness is raised or some
countries enforced law. Forest and food is limited but it is possible to increase its‟ production. To
make run the forest or wood related businesses we should start taking tree plantation measures.
On the other hand oil, gas, coal etc. natural resources are also problematic. Though these
resources are enough in some cases available but the expense to use these resources are increased
a lot. So the alternative resources are looked for or experimenting is going on to lessen the
expenses.

The natural environment involves the natural resources that are needed as inputs for producing
outputs, which are traded later. If the natural resources are scarce in any country, the production
will be less for sure. If you plan to operate a quarry, you'll want access to suitable quantities of
stone. Mining and extractive industries usually set up near the raw materials they'll need to mine
or drill. Sawmills locate themselves in wooded areas, and canneries set up where there are either
fisheries or agricultural operations to fill the cans. If you're located farther from your raw
materials than your competitors, it will often put you at a disadvantage.

Agricultural raw materials exports in Bangladesh were reported at 0.74678 % in 2015, according
to the World Bank collection of development indicators, compiled from officially recognized
sources. The major trends of natural environment are shortage of raw material, increased
pollution, increased government intervention. Bangladesh has some control over natural
resources. Only because of shortage of money, these cannot be utilized properly.

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Increased Pollution:

A second environmental trend is increased pollution. This is a worldwide problem. Industrial

damage to the environment is very serious. Some industrial activities are undoubtedly harming
the nature. Industry will almost always damage the quality of the natural environment. The filth
of factories consisting of poison is polluting both soil and water. As a result taking food seems
threatening. As example- the effect of uranium blast of Chernobyl is still active. Now people are
unwilling to take some type of food. In Bangladesh the growth rate is too high to describe.
Eagle-eyed companies are becoming “environmentally friendly” and are producing
environmentally safe and recyclable goods. The public response to these companies is
encouraging. For example, Bangladesh Recycling Industries Ltd. as one of the PET
Bottle Recycling & Export in Bangladesh territory. Bangladesh‟s capital has ranked as the third
most polluted city in the world. Dhaka scored 298 in the US Air Quality Index (AQI). The air
was classified as “very unhealthy”. The index was developed by the Environmental Protection
Agency for reporting daily air quality of any city or country. Pakistan‟s Lahore and
Afghanistan‟s Kabul occupied the two top spots with individual scores of 338 and 327
respectively, according to data obtained from AirVisual, a mobile application that shows real-
time air pollution index of any city. Bangladesh, one of the most densely-populated countries in
the world, has been struggling with air pollution for a long time while Dhaka has continued to
rank among the most polluted cities. Brick kilns, vehicles run by fuels with higher level Sulphur,
as well as construction works have been identified as major sources of air pollution.

Government Intervention:

A third trend is increased government intervention in natural resource management. The

governments of different countries vary in their concern and efforts to promote a clean
environment. Government intervention in natural resource management has caused
environmental concerns to be more practical and necessary in business and industry. Leadership,
not punishment, seems to be the best policy for long-term results. Instead of opposing regulation,
marketers should help develop solutions to the material and energy problems.

Also the pollution should be minimized to preserve the ecology. Marketers in the current
scenario try to Go Green and promote the Eco friendly Concept. For Instance HSBC Bangladesh

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promotes Save Paper and motivating Suppressing the creation and delivery of your paper
statements can be first step to helping save paper and many companies such as Rahimafrooz is
promoting Go Green campaign.

Nature is a big resource box. Here using resources different companies are doing business on
that. For example, now a day in Bangladesh tourism business is becoming more flourished.
Like Sundarbans is getting worldwide recognition as a good site for tourism.

Many government organizations are acting against natural caring. In Bangladesh a government
organization named Bangladesh „Poribesh Dushon Odhidoptor „is working. This organization
mainly enforced law to those who used highly harmful machineries to nature and force them to
use highly expensive non harmful machineries. Government can impose a group of people to
protect the harmful activities of companies & make people aware about importance of natural
resources.

So, marketing manager must pay attention to natural situation at the time of using asset. In near
future government and naturalist will enforce more pressure. Marketing manager must obey
them and come forward to solve natural problem.

4. Technological Environment:

Technological factors sometimes pose serious problems. A firm that unable to cope with
technological changes may not be survived. Further, the differing technological environment of
different markets or countries may be called for product modifications.
Technology is the most important elements of the macro environment. Technology is the human
being innovation and it literally wonder. Technology helps to human being go to moon,
travelling the spaceships, other side of the globe with few hours. Advances in the technologies
have facilitated product improvements and introduction of new products and have considerably
improved the marketability of the products. Internet and telecom system is the part of
technological development in the world. These things today changed whole world. It changes
people and business operation. It leads to many new business opportunities apart from the many
existing systems.

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The recent era has seen many indescribable Innovations like Walton is an innovative company
which is trying to use opportunities for new methods of production and creating new kind of
promotions.
Moreover recent growth of using internet in Bangladesh is making the business field more swift
and reliable.

Faster Pace of Technological Change:

Technology is changing day by day. A company must have to fix their step accordance with the
technological changes. Otherwise, it is impossible to survive in the market competition. At the
present day all types of communication are done by modern technology. To marketing goods in
BD one has to stay connect with modern technology. Now think about the communication
process of the organizations. In past, they used the classical telephone for communication which
sometimes makes disturbance & non-transferable. But at a present day they use mobile which is
easier than telephone. One should take the advantages about the modern technology.

Unlimited Opportunities:
There lie unlimited opportunities for inventing new technology. Mans are trying to invent
following services:
 Use of solar power
 Anti-biotic of cancer
 Precaution for AIDS
 Electric cure system
All of these are mostly safe in terms of technology. The main purpose of that is reducing the
production cost. In marketing, one of the topics is “Thinking about others”. If all use the
unlimited opportunities of technology one must use this to market his/her goods in BD. If all of
these prove as a best one should use the technology to minimize the production cost & market
the goods in Bangladesh in a short time.

High Research & Development Budget:

For better production one company may require a group of people for research the market &
requite a group of expertise for proper budget in production which will help to take part in
competition with others. Sometimes it seems that the authority of the marketing department

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spends a huge amount of money for research & development budget whereas they forget about
the product. Along with research one should take his/her eye on the product.

Concentration on Minor Improvement:

The cost of invention of modern technology, new product, development of services, and market
the best good & services has been increased. So, many companies try to improve minor part of
the goods rather than big invention. Many companies try to create a duplicate copy of the same
product which is made by others. One should take his/her mind on it that one can‟t misuse
his/her trademarked or duplicate the same product style.

Increased Regulation of Technological Change:

All technology will bring happiness for us. This is not right in all cases. Every creation has two
sides one is good & other is bad. We all have to keep in mind. For using new technology we
have to follow the rules & regulations regarding this matter. For better control we can impose
new law. In a short, marketers have to follow the rules & regulations when producing/ marketing
a new goods & services.

Digital Bangladesh:
Digital Bangladesh is one of the nation's dreams, and so special emphasis is given on the
application of digital technologies to realize Vision 2021, which we commonly call Digital
Bangladesh. By 2021, after 50 years of independence, our goal is to be a middle-income country
with peace, prosperity and dignity. The government of Bangladesh implemented a large number
of projects relating to digital technologies and a number of these are already underway. National
ICT Policy-2009 was developed with a view to achieve middle-income status of the nation by
2021 and developed status by 2041.

Use of Technology in Bangladesh:

Bangladesh is heavily dependent on imported technologies, so proper planning is required for its
effective transfer through acquisition, assimilation and adoption. Here I am going to elaborate
different sectors of the economy of Bangladesh which are under the use of technology:

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i) Use of Technology in Agriculture:
The farmers of Bangladesh are now working with different technologies they are also accessing
internet to know about: the fertilizers, water pumps, tractors, harvest, and also about different
other ingredients of agricultural growth. They are now also using the fast transport system for the
promotion of their products that helps the economy.
The technology of fertilizer deep placement (FDP), systems for long-term food security, with a
focus on increased crop yields, the water management techniques such as alternate wetting and
drying (AWD), a water-saving technology that lowland (paddy) rice farmers can apply to reduce
water use in irrigated fields, the Expansion of Urea Deep Placement Technology, introduce
quality agro-inputs etc. are being using for the agricultural productions.
ii) Use of Technology in Industry:
The industrial productions of Bangladesh are also developing through the easy access of internet
and transport system. With the help of foreign investors the industries are also using many
modern machines that increased the production which has been helping our economy a lot.
Shipbuilding, automobiles (assembly), insulators and sanitary wares, telephone equipment,
electrical goods, televisions, biochemical and mechanical technology etc. all these technologies
are playing remarkable role for the economic development of Bangladesh. Bangladesh has
sought technological support from Germany for industrial growth as it aims to become a
developed country by 2041.
iii) Use of technology in Education:
Availability of information through newspapers, magazines, internet resources and other source
are playing vital role in education. Use of modern technologies like laboratories, scientific
equipments, research, machines, communication system etc. helps the students to generate their
knowledge that help the economic development in the long run. The Information communication
technology (ICT), a very fast growing new technological area, is entering fast in education of
Bangladesh.
iv) Information and Communication Technology:
Easy availability of cellular phone, lower cost of computers and other related technologies such
as television, radio, newspaper, etc. are now in everyone‟s hand in Bangladesh. People are now
much familiar with the information and communication technology that is helping the economy

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of Bangladesh to rise. All these technologies raise awareness and enlighten the knowledge about
the international market that helps the economy of Bangladesh to swell in International level.
v) Technologies for Environment:
Bangladesh is having environmental technological verification-support to Arsenic mitigation.
For cleaning up contaminated soil, creating additional nature or habitats is now been seen in
Bangladesh. River Dredging is now major concern of our country and foreign countries are
assisting Bangladesh to develop environmental technology.
vi) Technology for energy resource:
Bangladesh is now using solar energy to fulfill the demand of electricity. For example we can
see the process of using solar energy even in many houses. Bangladesh has also signed an
agreement to assist two nuclear reactors with Russia‟s Atomic Energy Corporation Rosatom.
This is an excellent example of a country moving forward with nuclear energy.

Evolution of ICT Sector in Bangladesh:

In the last 3 years Bangladesh has seen a tremendous growth in the information technology (ICT)
sector. It has a market of 160 million+ people, where consumer spending is around USD 130
billion+ growing at 6% annually. After Telco‟s launched 3G services in 2013, internet
penetration in Bangladesh grew by 22% by the end of 2014. Of the 66.8 million active Internet
subscribers (BTRC Sept 2016), nearly 96% are on mobile and 10 million use smartphones. With
growing Internet connectivity, availability of cheaper smartphones, and rapid rise in social
networking (23 million + Facebook users), we have seen increased emergence of digital savvy
consumers.
Bangabandhu Satellite-1:
The Bangabandhu Satellite-1 is the first Bangladeshi geostationary communications and
Broadcasting Satellite. It was manufactured by Thales Alenia Space and launched on 11 May
2018. The project is being implemented by Bangladesh Telecommunication Regulatory
Commission (BTRC) working hand-in-hand with US based Space Partnership International,
LLC. and was the first payload launched by a Falcon 9 Block 5 rocket of SpaceX.
Bangladesh Government formed a Government owned Bangladesh Communication Satellite
Company Limited, BCSCL with the aim to operate the Bangabandhu Satellite-1.

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Bangabandhu-1 launched from Kennedy Space Center on Merritt Island, Florida, USA and
utilizes ground control stations built by Thales Alenia Space with its partner Spectra Primary
Ground Station in Gazipur, Dhaka and Secondary Ground Station at Betbunia, Rangamati. The
satellite is based on the highly secured and reliable Spacebus-4000B2 platform and currently
located at longitude 119.09°E.
The total cost of the satellite was projected to be 248 million US dollars in 2015 (Tk 19.51
billion), financed via a $188.7 million loan from HSBC Holdings plc. Bangabandhu Satellite-1
carries a total of 40 Ku-band and C-band transponders with a capacity of 1600 megahertz and a
predicted life span to exceed 15 years.
Bangabandhu Satellite-1 position and its coverage area:
The satellite will expand Ku-band coverage over all of Bangladesh and its nearby waters
including the Bay of Bengal, Nepal, Bhutan, Sri-Lanka, the Philippines, East Indian states (West
Bengal, Assam, Meghalaya, Mizoram, Tripura, Nagaland, Arunachhal Pradeah) and Indonesia.
This is coupled with C-band coverage for all aforementioned areas. The technological
environment is perhaps the most dramatic force now shaping our destiny. Technology has
released such wonders as antibiotics, robotic surgery, miniaturized electronics, smartphones, and
the Internet. Our attitude toward technology depends on whether we are more impressed with its
wonders or its blunders. New technologies can offer exciting opportunities for marketers.

5. Political Environment:
The political environment includes laws, government agencies, and pressure groups that
influence and limit various organizations and individuals in a given society. Political Outline
Executive Power the Head of State, the President of the Republic, is elected for a 5-year term by
indirect suffrage and then by the Parliament. The President of Bangladesh has a representative
role because the Prime Minister holds most of the executive powers. He is appointed by the
president and must be a member of the majority party in the parliament. The government is
composed of ministers selected by the prime minister. Legislative Power Legislative power is
vested in a unicameral parliament whose room is called the House of Nations or Jatiya Sangsad.
The 350 members are elected by direct universal suffrage for a five-year term. Main Political
Parties The main political parties‟ are- - Awami League (AL) - Workers Party of Bangladesh -
the Jatiya Party - Bangladesh Nationalist Party (BNP), Current Political Leaders: President:

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Abdul Hamid (elected in April 2013 and reelected in February 2018) Prime minister: Sheikh
Hasina (since January 2009, reelected in January 2014) Next Election Dates- Presidential
elections: 2023 Parliamentary elections: January 2019.

Classification of Standards:
The Bangladeshi standards are called BDS. Online Consultation of Standards: Not available
Certification Organizations: Bangladesh Standards and Testing Institution Government policies
for Foreign Investments The stated policy of the government of Bangladesh (BDG) is to pursue
foreign investment actively, and it has enacted a number of policies to this end. There are no
distinctions between foreign and domestic private investors regarding investment incentives or
export and import policies. Incentives for investors include: 100% ownership in most sectors; tax
holidays; reduced import duties on capital machinery and spares; duty-free imports for 100%
exporters; and tax exemptions. Opening hours and bank holidays The working week is from
Sunday to Thursday. Offices are open from 9 am to 5 pm (public sector) and from 10 am to 6 pm
(private). Banks are open from Sunday to Thursday from 9 am to 5 pm. Shops are open from 10
am to 7 pm, even 8 pm for some shopping centers.
:
Legislation Regulating Business:
The legal environment facing organizations is becoming more complex and affecting businesses
more directly. It has become increasingly difficult for businesses to take action without
encountering a law, regulation, or legal problem. A very brief listing of significant laws that
affect business would include legislation in the areas of consumerism, employee relations, the
environment, and competitive practices.
Government legislation to:
a) Protect companies from each other.
b) Protecting consumers from unfair business practices.
c) Protecting interests of society against unrestrained business behavior.
Bangladeshi marketing system are influenced by the following act
 Patent act-1911
 Design act-1911
 Trade mark act-1940

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  Bangladesh agriculture food‟s market control act-1964
 Bangladesh pure food product section-1959, etc
All of these have a great impact in marketing a new goods/ services. Marketers have to open eye
relating to law when launch a new product or even services.
Governments develop different public policy to guide commerce--sets of laws and regulations
limiting business for the good of society as a whole. This regulatory organizations work for the
welfare of both companies and society. For Example, in Bangladesh BSTI is working for society
by maintaining the proper quality of products. Trade license authority is working for making
individualism between organizations. Some other government or non government organizations
are trying to protect proper rights of citizens such as “SUJON”.

Changing Government Agency Enforcement:

In every country including Bangladesh have some agencies which are created for observing
wheatear the act is being followed or not. Sometimes they are become so much active &
sometime it becomes freeze. All of the employees of those agencies are expert of this matter.
Their decision left a great impact in marketing goods & services. In Bangladesh the enforcement
of this related group is higher than others countries of the world.

Emphasis on ethics and socially responsible actions:

Socially responsible firms actively seek out ways to protect the long-run interests of their
consumers and the environment. Some companies try to imply their responsibility through their
products or services. For example, in Bangladesh “PHP Arabian horse super” tin is an
environment friendly product of PHP industries. Beside this some organizations are spending on
tree plantation program such as, “British American Tobago”. They are trying to look outside the
regulation and “do the right thing.” The e-commerce and Internet marketing has created a new
band of social and ethical issues. Concerns are Privacy, Security, and Access by vulnerable or
unauthorized groups.
To build more positive image by exercising social responsibility some organizations are now
linking themselves to some worthwhile causes. For example in Bangladesh “Bashundhara
Tissue” is giving 1.00 tk. Donation to the charity fund from their per box tissue sales.

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Increases in Public Interest Group:
In the marketing system public interest group is now one of the major one. They increase the
consumer power & rise voice against unfair activities. In Bangladesh there has some agencies
but the major one is Consumer Association of Bangladesh (CAB). In general they work for
consumers well being. These groups also have an impact in marketing goods. All of these types
of group are formed only for save the consumers from the unfair business man. They publicity
the consumer laws in a worldwide for increasing awareness among the customers.

6. Cultural Environment:
The cultural environment consists of institutions and other forces that affect a society‟s basic
values, perceptions, preferences, and behaviors. Culture is set of beliefs and customs pertinent in
a society. A marketing campaign must be in tandem with the beliefs. The market should adjust
the decisions with respect to the cultural and social beliefs. Intuitions and other forces that affect
society‟s basic values, perceptions, preferences and behaviors. Cultural changes account for
people's core beliefs or values. How people view themselves, others, organizations, society,
nature, and the universe all play a part in shaping one's culture. Companies need to take these
principles into consideration when working in the market place. People‟s core beliefs and values
are passed on from parents to children and are reinforced by schools, business and
government. Secondary beliefs and values are more open to change.

Social and Cultural Stratification Classes and Castes:

The Muslim class system is similar to a caste structure. The Ashrafis a small upper-class of old-
money descendants of early Muslim officials and merchants whose roots are in Afghanistan,
Turkey, and Iran. Some ashraf families trace their lineage to the Prophet Mohammed. The rest of
the population is conceived of as the indigenous majority atraf .This distinction mirrors the
Hindu separation between the Brahman and those in lower castes. While both Muslim and Hindu
categories are recognized by educated people, the vast majority of citizens envision class in a
more localized, rural context. In rural areas, class is linked to the amount of land owned,
occupation, and education. A landowner with more than five acres is at the top of the
socioeconomic scale, and small subsistence farmers are in the middle. At the bottom of the scale
are the landless rural households that account for about 30 percent of the rural population.
Landowning status reflects socioeconomic class position in rural areas, although occupation and

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education also play a role. The most highly educated people hold positions requiring literacy and
mathematical skills, such as in banks and government offices, and are generally accorded a
higher status than are farmers. Small businessmen may earn as much as those who have jobs
requiring an education but have a lower social status. Hindu castes also play a role in the rural
economy. Hindu groups are involved in the hereditary occupations that fill the economic niches
that support a farming-based economy. Small numbers of higher caste groups have remained in
the country, and some of those people are large landowners, businessmen, and service providers.
In urban areas the great majority of people are laborers. There is a middle class of small
businessmen and midlevel office workers, and above this is an emerging entrepreneurial group
and upper-level service workers.

Symbols of Social Stratification:

One of the most obvious symbols of class status is dress. The traditional garment for men is the
lungi, a cloth tube skirt that hangs to the ankles; for women, the sari is the norm. The lungi is
worn by most men, except those who consider themselves to have high socioeconomic status,
among whom pants and shirt are worn.
Also indicative of high standing are loose white cotton pajama pants and a long white shirt.
White dress among men symbolizes an occupation that does not require physical labor. A man
with high standing will not be seen physically carrying anything; that task is left to an assistant
or laborer. Saris also serve as class markers, with elaborate and finely worked cloth symbolizing
high status. Poverty is marked by the cheap, rough green or indigo cotton cloth saris of poor
women. Gold jewelry indicates a high social standing among women. A concrete-faced house
and a ceramic tile roof provide evidence of wealth. An automobile is well beyond the means of
most people, and a motorcycle is a sign of status. Color televisions, telephones, and electricity
are other symbols associated with wealth. Religious Beliefs. The symbols and sounds of Islam,
such as the call to prayer, punctuate daily life. Bangladeshis conceptualize themselves and others
fundamentally through their religious heritage. For example, the nationality of foreigners is
considered secondary to their religious identity. Islam is a part of everyday life in all parts of the
country, and nearly every village has at least a small mosque and an imam (cleric). Prayer is
supposed to be performed five times daily, but only the committed uphold that standard. Friday
afternoon prayer is often the only time that mosques become crowded. Throughout the country

29
there is a belief in spirits that inhabit natural spaces such as trees, hollows, and riverbanks. These
beliefs are derided by Islamic religious authorities. Hinduism encompasses an array of deities,
including Krishna, Ram, Durga, Kali, and Ganesh. Bangladeshi Hindus pay particular attention
to the female goddess Durga, and rituals devoted to her are among the most widely celebrated.

Attitudes and behaviors:

Attitudes and behaviors found in everyday life. Core beliefs and values are passed on from
parents to children and are reinforced by schools, churches, business, and government.
Secondary beliefs and values are more open to change. Believing in marriage is a core belief;
believing that people should get married early in life is a secondary belief. Marketers have some
chance of changing secondary values but little chance of changing core values. Shifts in
Secondary Cultural Values Although core values are fairly persistent, cultural swings do take
place. Consider the impact of popular music groups, movie personalities, and other celebrities on
young people‟s hairstyling and clothing norms. Marketers want to predict cultural shifts to spot
new opportunities or threats. Several firms offer “futures” forecasts in this connection. The major
cultural values of a society are expressed in people‟s views of themselves and others, as well as
in their views of organizations, society, nature, and the universe.

Shifts in secondary cultural values:

Since secondary cultural values and beliefs are open to change, marketers capitalize on the
change potential. Society‟s major cultural views are expressed in:

a) People’s views of themselves:

People vary in their emphasis on serving themselves versus serving others. Some people seeks
personal pleasure, some want fun and others seek self realization religion or other life goals.
Thus people‟s view and beliefs changes and companies are trying to imply their service
according to people‟s views.

b) People’s views of others.

Observers have noted a shift from a “me-society” to a “we-society.” Consumers are spending
more on products and services that will improve their lives rather than their image. In views of
others some people are going out less with others and staying home more to enjoy the creature

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comforts of home and hearth. Depending on that, now a day‟s cable channels and broadband
connection business is increasing.

c) People’s views of organizations:

People are willing to work for large organizations but expect them to become increasingly
socially responsible. Some people like government organizations, but some other like private
organizations. Now a day‟s in Bangladesh education system is becoming privatized. Higher
education is depending largely on private sector. Like that more and more people are choosing
private organizations for doing job. That‟s why number of private business organizations is
increasing. Many companies are linking themselves to worthwhile causes. Honesty in appeals is
a must.

d) People’s views of society:

People vary in their attitudes toward their society. Some people have more awareness about
society but some have less. Some really work for the welfare of the society and some are not
bothering about that. Some people are of fond of their core culture. For example, people who like
the Bangladeshi culture as a consumer getting culture based products and services. Every fashion
houses are producing different types of clothes. And tourism companies are offering various tour
packages depending on seasons. Many companies are doing good societal tasks.

e) People’s view of nature:

There is a growing trend toward people‟s feeling of mastery over nature through technology and
the belief that nature is bountiful. People vary their attitudes toward the natural world. It means
how people think about the nature. Some are careful about the nature but some are not much
careful. Some are constructing the nature and some other are destroying the nature.
Now a day‟s many companies are producing nature friendly goods. For example, in
Bangladesh PHP group of companies is producing environment friendly steel products..

f) People’s views of the universe:

People vary in their beliefs about the origin of the universe and their place in it. There are two
types of people in the universe – some believe in god but some do not. Depending on that
spirituality many religious beliefs are taking form. Many religions such as Christianity,

31
Hinduism, Islam, Buddhism and some others. Companies produce products and services on the
basis of their religions.
Also the companies who are in tandem with the cultural beliefs and who promote the culture is
able to attract the loyal customers more easily and can retain them more effectively. For
example, Archies galleries have made its market in Bangladesh by promoting different
occasions like Valentine‟s Day, Fathers Day and friendship day.

Conclusion
The macro environment of Bangladesh is every bit as important to a company as the
microenvironment. So much in fact, that can‟t be taken for granted. This analysis showed some
of the characteristics of the environment and how different companies have used the
opportunities and made a name. this was the purpose of the analysis all along.

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