Summer Internship Project

On Money Investment & Money Transfer

(In partial fulfillment of Master of Business Administration)

With special reference to

Reliance Money Express (Reliance Capital)

By: SANJAY KUMAR GUPTA MBA (Gen.) Class of 2009

RAJASTHAN TECHNICAL UNIVERSITY

_________KOTA__________

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CONTENTS

Page no.

Acknowledgement……………………………………….. 3Certificate from the faculty guide……………………… 4Certificate from the industry guide…………………… .5Executive summary……………………………………… 6List of the tables and graphs…………………………. .8Chapter 1.-Introduction …………………………… 9

Chapter.2-Objective and Rationale of the Project…34

Chapter.3-Review of Literature…………………….37

Chapter.4-Reserch Methodology……………………65

4.1Research design…………………………..66 4.2 Sample size………………………………..68 4.3 Research tools and questionnaire…...…69 4.4 Action plane for data collection……..…69 4.5 Data analysis and report preparation....70

Chapte.5-Research Findings…………………………82

Chapter.6 Conclusion……………………………..…92

Select Bibliography

References………………………………………..96 Annexure …………………………………………97.

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ACKNOWLEDGEMENT

The Project Title Money Investment has been conducted by me during15/07/2008 and at Reliance Money .I have completed this project based on primary research, under the guidance of Mr. Rohit Goyal and Mr. Mahruf Ahmed.

I owe enormous intellectual debt towards my guides Mr. Rohit Goyal and Mr. Mahruf Ahmed., Who have augmented my knowledge in the field of marketing .They have helped me learn about the process and giving me valuable insight into the field of marketing(sales) planning, consumer behavior, market segmentation ,marketing communication, direct selling. I am obliged to Mr. Dilip and Mr. Raj for cooperation during the internship as my increased spectrum of knowledge in this is the result his constant supervision and direction that has helped me to absorb relevant and high quality information

I would like to thank Mr. Rohit Goyal. for his guidance and enriching my thoughts in this field of from different perspective.

I would like to thank all the respondents with out whose cooperation my project would not have been possible.

Last but not the least, I feel indebted to all those persons and organization who/which have provide helped directly or indirectly in successful completion of this study.

Date . 23/10/2008 VIJAY PRAKASH JANGID

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CERTIFICATE

This is to certify that vijay prakash jangid a student of Master of Business Administration (MBA) Class of 2008, MKM,IIM. has undertaken the summer Internship training at reliance money express Ltd. He has worked under my guidance for the Project Title “Money Investment”. He has also been guided by Mr. Rohit Goyal, State head, Reliance Money Exp. ltd.

This project report is prepared in partial fulfillment of Master of Business Administration (MBA) to be awarded by Rajasthan Technical University Kota.

To the best of my knowledge, this piece of work is original and no part of this report has been submitted to any other Institute/University earlier.

Date:-23/10/2008 Mr. B.M.Mehda Director MKM IIM.

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EXECUTIVE SUMMARY

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EXECUTIVE SUMMARY

While sitting at the sea shore I thought that it was an easy task to swim but it was only when I took the dive in the water, I realized how much helpful were so many people to me. Without them this exploration would never have been possible.

I take this opportunity to express my gratitude to all those people who have been instrumental in making my project successful.

This project has been done by me, vijay prakash jangid student of MBA.I pursuing M.B.A. from Institute of Information & Management Sciences. I Sanjay Kumar Gupta had completed my schooling from Govet. sen. sec. school, Manak Chowk, Jaipur of Rajasthan and then my graduation from Maharaja College , University of Rajasthan, Jaipur

. This project has been made by me during my summer training in Jaipur Rajasthan at Reliance Money Exp., Jaipur tower under the guidance of Mr. Rohit Goyal .This project is about money investment , which tells about the criterion of investment of money of people. In this project I went through to different stages of learning and in those stages I learned some valuable, enlighten topics of marketing in practical life .I experienced the fundamentals of marketing in corporate by knowing and the marketing(sales) planning, consumer behavior ,direct sealing, market segmentation ,marketing communication.

While executing this project I came to understand the decisions that are made by consumers and thinks that they include while making the decision .I also learned that how to do marketing planning while approaching the consumers.

At the and of this project I found out the results of my given project that are written in detail in the research and findings.

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LIST OF THE TABLES AND GRAPHS

TABLES TABLE NO. PAGE NO.

Table no. :- 1.1………………………………………….. ……..69Table no. :- 1.2………………………………………………….70Table no. :- 1.3………………………………………………….71Table no. :- 2.1………………………………………………….72Table no. :- 2.2………………………………………………….73Table no. :- 2.3………………………………………………….74Table no. :- 3.1………………………………………………….75Table no. :- 3.2………………………………………………….76Table no. :- 3.3………………………………………………….77Pi-graphsTable no. :- 1…………………………………………………….98Table no. :- 2…………………………………………………….98Table no. :- 3…………………………………………………….99

GRAPHS GRAPH NO. PAGE NO.

Graph no. :- 1.1………………………………………………….69.Graph no. :- 1.2…………………………………………………..70Graph no. :- 1.3…………………………………………………..71Graph no. :- 2.1…………………………………………………..72Graph no. :- 2.2…………………………………………………..73Graph no. :- 2.3…………………………………………………..74Graph no. :- 3.1…………………………………………………..75Graph no. :- 3.2…………………………………………………..76Graph no. :- 3.3…………………………………………………..77

PI-GRAPH

GRAPH NO. PAGE NO.

Graph no. :- 1……………………………………………………...78Graph no. :- 2……………………………………………………...78Graph no. :- 3……………………………………………………...79

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INTRODUCTION

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INTRODUCTION

This project money investment has been done under the guidance of Mr. vijay prakash jangid at Reliance Money. Mr. Rohit Goyal is the State head of reliance money Exp..

Reliance Money Exp. is a part of the Reliance - Anil Dhirubhai Ambani Group.

Reliance Money is one of India’s leading and fastest growing private sector financial services companies, and ranks among the top 3 private sector financial services and banking companies, in terms of net worth.

Reliance Money has interests in asset management and mutual funds, Money Transfer, life and general insurance, private equity and proprietary investments, stock broking and other activities in financial services.

Reliance Money is a umbrella company which has several branch of itself. Reliance money is the part of Reliance Capital and Reliance Capital has many other branch which are these

Reliance mutual fund Reliance life insurance Reliance general insurance Reliance money

Here reliance money contains several different products in itself. Which are these

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Reliance money Equity Commodity derivatives Offshore investment Mutual fund IPO’s Life insurance General insurance Money transfer Money changing and credit cards

Company Profile

Regarded as one of the foremost corporate leaders of contemporary India, Anil Dhirubhai Ambani is the Chairman of all listed Group companies, namely: Reliance Communications, Reliance Capital, Reliance Energy and Reliance Natural Resources Limited

He is also Chairman of the Board of Governors of Dhirubhai Ambani Institute of Information and Communication Technology, Gandhi Nagar, Gujarat.

Till recently, he also held the post of Vice Chairman and Managing Director in Reliance Industries Limited (RIL), India’s largest private sector enterprise.

Anil D Ambani joined Reliance in 1983 as Co-Chief Executive Officer, and was centrally involved in every aspect of the company’s management over the next 22 years. He is credited with having pioneered a number of path-breaking financial innovations in the Indian capital markets. He spearheaded the country’s first forays into the overseas capital markets with international public offerings of global depositary receipts, convertibles and bonds. Starting in 1991, he directed Reliance Industries in its efforts to raise over US$ 2 billion. He also steered the 100-year Yankee bond issue for the company in January 1997.

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He is a member of:

Wharton Board of Overseers, The Wharton School, USA Central Advisory Committee, Central Electricity Regulatory Commission Board of Governors, Indian Institute of Management, Ahmedabad Board of Governors Indian Institute of Technology, Kanpur

In June 2004, he was elected for a six-year term as an independent member of the Rajya Sabha, Upper House of India’s Parliament a position he chose to resign voluntarily on March 25, 2006.

Awards and Achievements

Conferred the ‘CEO of the Year 2004’ in the Platts Global Energy Awards

Rated as one of ‘India’s Most Admired CEOs’ for the sixth consecutive year in the Business Barons – TNS Mode opinion poll, 2004

Conferred ‘The Entrepreneur of the Decade Award’ by the Bombay Management Association, October 2002

Awarded the First Wharton Indian Alumni Award by the Wharton India Economic Forum (WIEF) in recognition of his contribution to the establishment of Reliance as a global leader in many of its business areas, December 2001

Selected by Asia weekly magazine for its list of ‘Leaders of the Millennium in Business and Finance’ and was introduced as the only ‘new hero’ in Business and Finance from India, June 1999.

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Business Overview

RCL is registered as a depository participant with National Securities Depository Ltd (NSDL) and Central Depository Services Ltd (CDSL) under the Securities and Exchange Board of India (Depositories and Participants) Regulations, 1996. RCL has sponsored the Reliance Mutual Fund within the framework of the Securities and Exchange Board of India (Mutual Fund) Regulations, 1996.RCL primarily focuses on funding projects in the infrastructure sector and supports the growth of its subsidiary companies, Reliance Capital Asset Management Limited, Reliance Capital Trustee Co. Limited, Reliance General Insurance Company Limited and Reliance Life Insurance Company Limited. As of March 31, 2005, the company’s investment in infrastructure projects stood at Rs. 1071 Crores. The investment portfolio of RCL is structured in a way that realizes the highest post-tax return on its investments.

 

Board of Directors

Amitabh Jhunjhunwala, Vice-Chairman  Rajendra Chitale, Independent Director 

Shri C. P. Jain, former Chairman and Managing Director, NTPC

Equity

Equity is a share in the ownership of a company. It represents a claim on the company's assets and earnings. As you acquire more stock, your ownership stake in the company increases. The terms share, equity and stock mean the same thing and can be used interchangeably.

Holding a company's stock means that you are one of the many owners (shareholders) of a company, and, as such, you have a claim (to the extent of your holding) to everything the company owns. Yes, this means that technically, you own a portion of every piece of furniture, every trademark, every contract, etc. of the company.

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As an owner, you are entitled to your share of the company's earnings as well as any voting rights attached to the stock.

Another extremely important feature of equity is its limited liability, which means that, as a part-owner of the company, you are not personally liable if the company is not able to pay its debts. In case of other entities such as partnerships, if the partnership goes bankrupt, the partners are personally liable towards the creditors/lenders and they may have to sell off their personal assets like their house, car, furniture, etc., to make good the loss. In case of holding equity shares, the maximum value you can lose is the value of your investment. Even if a company of which you are a shareholder goes bankrupt, you can never lose your personal assets

EQUITY BASICS

To expand its business, a company, at some point, needs to raise money. To do this, it can either borrow by taking a loan or raise funds by offering prospective investors a stake in the company.

5 STOCK SELECTION GUIDELINES

There are more than 6,000 companies listed on our stock exchanges. Selecting companies whose equity shares you should invest in, becomes difficult due to this wide choice. To narrow down your choice,

SOURCES OF STOCK INFORMATION

Any financial educator will tell you about the importance of the well-informed investor. Investment in equity needs proper study and research before putting your money on the line. Use the following s

EQUITY INVESTING STRATEGIES

There are various methods and strategies one can adopt while investing in equity. Some of the popular ones are enumerated below:

RISKS ASSOCIATED WITH EQUITY INVESTING

There are broadly two kinds of risks associated with investing in equity: Systemic risks & Non-systemic risks

MONITORING YOUR EQUITY INVESTMENTS

Once you have made your investment in shares of the companies you have selected, you cannot afford to simply forget about your investments

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INVESTING IN EQUITY --- THE PROCEDURE

In the past, investing in equity involved a high cost (high brokerage charges of about 2 per cent of the transaction value) and a number of hassles

COMPUTING RETURNS ON YOUR EQUITY INVESTMENTS

Once you sell your shareholding, you should compute the returns you have earned on your investment.

TAX IMPACT ON EQUITY INVESTING (FOR FINANCIAL YEAR 2006-07)

Investing in equity brings with it two streams of cash inflows – dividend income and capital appreciation (sale of shares at a profit). The tax impact on both these cash inflows is indicated below:

IPO

when an unlisted company makes either a fresh issue of securities or an offer for sale of its existing securities or both for the first time to the public. This paves way for listing and trading of the issuer’s securities.

IPO BASICS

When private companies i.e. companies that are wholly owned by their promoters, invite the public to subscribe to their shares, this issue of shares is called an Initial Public Offering (IPO).

IPO PRICING

There are two ways in which the price of an IPO can be determined

IPO QUOTAS

A company that is coming out with an IPO can reserve a part of its issue as “allotment on firm basis

IPO FUNDING

If you wish to take a loan in order to buy shares in an IPO, you can do so from banks and finance companies

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IPO PROCEDURAL ASPECTS

You can find out about IPOs that are in the offing or underway from SEBI’s weekly press releases

Mutual Funds

What is it about investing that irks you most? Is it the fact that it is time-consuming since it involves researching the market for investment products and then proceeding with the paperwork involved?

ABOUT MUTUAL FUNDS

What is it about investing that irks you most? Is it the fact that it is time-consuming since it involves researching the market for investment products and then proceeding with the paperwork involved? Or could it be that once you have made your investments, you cannot find the time to monitor them? Like most of us, do you dread a situation wherein you need your money all of a sudden and have no access to it or have to run from pillar to post to get it back? Do you sometimes hesitate to invest because you are unsure about how well-regulated investment products are? Is your approach to investing constrained by the fact that you possess limited investment capital, which does not allow you to achieve the diversity that you desire?

If these are some of the reasons that make you feel disinclined to undertake an investment exercise, consider mutual funds. This investment vehicle successfully addresses the above concerns and offers other benefits too. Let’s take a look at what exactly a mutual fund is and how it functions.

A mutual fund is an entity, which offers a number of investment schemes with different investment objectives. An investor interested in investing in these schemes needs to assess which scheme has an investment objective that matches his, to make his selection from among the available schemes.

Mutual funds are well-structured and closely-regulated entities, which hire investment professionals to invest and manage investors€™ funds.

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Mutual funds issue units to each investor based on the amount invested. Units of mutual funds are similar to shares issued by companies. For instance, if an investor invests Rs 5,000 in a new scheme of a mutual fund, which is offering units at Rs 10 per unit, he will receive 500 units in the scheme (Rs 5,000 / Rs 10).

The mutual fund invests the money collected from unit-holders on their behalf. Income earned on these investments is distributed by the mutual fund among its investors in proportion to their holding in the scheme. For instance, taking the above example forward, if the scheme issues a total of 1 lakh units and earns a total income of Rs 1 lakh in a particular period, it would have earned Re 1 per unit issued (Rs 1 lakh / 1 lakh units). The investor, who had applied for 500 units, will be entitled to receive Rs 500 (income earned per unit – Re 1 x 500 units).

Choice of investment strategies

From just two scheme types (equity scheme and debt scheme) offered when the mutual fund industry was conceived more than four decades ago, today, mutual funds offer a plethora of scheme types with different investment strategies. Consider equity schemes. From just one scheme type, there are, today, more than 10 types of schemes, each offering a unique investment strategy. For instance, an index fund invests in stocks forming a stock market index such as the BSE Sensex or NSE Nifty in order to make gains equivalent to appreciation in the index. A sector fund invests in securities of companies belonging to a specific sector (banking, IT, pharma, etc.) in order to make gains when the sector is prospering.

Similarly, in case of debt schemes, from just a single debt scheme-type, presently, there are more than 6 scheme types. Each debt scheme focuses on specific debt securities with specified tenures. For instance, a long-term gilt scheme will invest in government securities with long tenures (exceeding 7-8 years) while a short-term floating rate fund will invest in debt securities with short tenures (1-3 years) whose coupon rates are reset at regular intervals depending on change in prevailing interest rates.

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In addition, there are schemes, which combine debt and equity to adopt different investment strategies (balanced funds, MIPs, etc.).

There are also schemes, which invest in other mutual fund schemes (called Fund of Funds).

In other words, mutual funds have been able to envisage different investment strategies that can be adopted by investors, and have created scheme types to cater to each of these strategies.

Reliance mutual funds

Equity/Growth Schemes --Select-- Reliance Equity Advantage Reliance Equity Fund Reliance Tax Saver (ELSS) Fund Reliance Growth Fund Reliance Vision Fund Reliance Equity Opportunities Fund Reliance Index Fund NRI Equity Fund Reliance Long Term Equity Fund Reliance Regular Savings Fund

The aim of growth funds is to provide capital appreciation over the medium to long- term. Such schemes normally invest a major part of their corpus in equities. Such funds have comparatively high risks. These schemes provide different options to the investors like dividend option, capital appreciation, etc. and the investors may choose an option depending on their preferences. The investors must indicate the option in the application form. The mutual funds also allow the investors to change the options at a later date. Growth schemes are good for investors having a long-term outlook seeking appreciation over a period of time.

Debt/Income Schemes --Select-- Reliance Interval Fund Reliance Fixed Horizon Fund - III Reliance Liquid Plus Fund Reliance NRI Income Fund Reliance Income Fund Reliance Fixed Tenor Fund Reliance Floating Rate Fund Reliance Gilt Securities Fund Reliance Liquid Fund Reliance Monthly Income Plan Reliance Medium Term Fund Reliance Short Term Fund Reliance Liquidity Fund Reliance Fixed Horizon Fund Plan C Reliance Fixed Horizon fund I (Annual Plan) Reliance Fixed Horizon fund II (Annual Plan)

The aim of income funds is to provide regular and steady income to investors. Such schemes generally invest in fixed income securities such as bonds, corporate debentures, Government securities and money market instruments. Such funds are less risky compared to equity schemes. These funds are not affected because of fluctuations in equity markets. However, opportunities of capital appreciation are also limited in such funds. The NAVs of such funds are affected because of change in interest rates in the

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country. If the interest rates fall, NAVs of such funds are likely to increase in the short run and vice versa. However, long term investors may not bother about these fluctuations.

Sector Specific Schemes --Select-- Reliance Banking Fund Reliance Pharma Fund Reliance Diversified Power Sector Fund Reliance Media & Entertainment Fund

These are the funds/schemes which invest in the securities of only those sectors or industries as specified in the offer documents. e.g. Pharmaceuticals, Software, Fast Moving Consumer Goods (FMCG), Petroleum stocks, etc. The returns in these funds are dependent on the performance of the respective sectors/industries. While these funds may give higher returns, they are more risky compared to diversified funds. Investors need to keep a watch on the performance of those sectors/industries and must exit at an appropriate time. They may also seek advice of an expert.

Derivatives

Derivative products have been around for a long, long time. In fact, as early as the 1650s, dealings resembling present day derivative market transactions were seen in rice markets in Osaka, Japan.

The first leap towards an organized derivatives market came in 1848, when the Chicago Board of Trade (CBOT), the largest derivative exchange in the world, was established.

Today, equity and commodity derivative markets are rapidly gaining in size in India. In terms of popularity too, these markets are catching on like a forest fire. So, what are these markets all about? What are the products that they trade in? Why do people feel the need to trade in such products and what sort of traders benefit from such trades? Do these markets hold scope for retail investors too? And if so, how exactly can you go about trading in them?

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What are derivatives?

Derivatives, as the name suggests, are financial instruments that derive their value from an underlying security or asset. The underlying could be equity shares or an index, a commodity, a currency or the exchange rate, bonds, etc. Sounds complicated? In a way, it is. But once you are clear about how a derivative product derives its value from an underlying asset and yet has a price and an identity of its own, it will become just another financial product to you. Then again, derivative products have more variants than any other financial products since they have been created to meet a variety of niche needs.

Dependent on other products, yet a life of their own

Here a little story about a sugarcane contract. There is a farmer who will be harvesting a crop of sugarcane three months down the line. As he is uncertain about how high or low the price of sugarcane will be then, he decides to negotiate a price with his purchase agent right now. They fix a price per quintal, which is suitable to both of them and ink it into a contract that specifies how much the farmer will supply, on what date and at what price.

Now, suppose after one month, the purchase agent decides that he does not want to be a counter party to this contract any more, he may find another agent who is ready to relieve him of the contract. However, if the price of sugarcane has already begun to fall in the market, the second agent may not be one hundred percent comfortable with the terms printed in the contract. He may feel that the contracted price is too high. So, to compensate him, the first agent may pay him the difference between the original contracted price and the price that he feels is right.

If you can imagine that this contract can be traded over and over again, between agents or any intermediaries, replicating the transaction described above, until its expiry date, you have envisaged a derivative product. You have understood how the value of the contract depends upon the price of sugarcane but the actual price that the contract commands could keep changing every time it changes hands, for a variety of other reasons too.

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There are various derivative products, which derive their value from equity shares or an index, a commodity, a currency or the exchange rate, bonds, etc. These derivative products vary according to their structure and terms and conditions. The most popular derivative products are Forwards, Futures, Options, Warrants and Swaps. Some of these are short term in nature while others are long term. For example stock and index options that can be traded on stock exchanges are short term in nature, while options like warrants and rights have a longer term.

Financial Derivatives

Derivative products have been around for a long, long time. In fact, as early as the 1650s, dealings resembling present day derivative market transactions were seen in rice markets in Osaka, Japan. The first leap towards an organized derivatives market came in 1848, when the Chicago Board of Trade (CBOT), the largest derivative exchange in the world, was established.

Today, equity and commodity derivative markets are rapidly gaining in size in India. In terms of popularity too, these markets are catching on like a forest fire. So, what are these markets all about? What are the products that they trade in? Why do people feel the need to trade in such products and what sort of traders benefit from such trades? Do these markets hold scope for retail investors too? And if so, how exactly can you go about trading in them?

Types of Derivatives

The most popular derivative products are Forwards, Futures, Options, Warrants and Swaps. These are discussed below:

Forwards A forward contract or ‘forward’ is an agreement between two parties, wherein one will sell an asset to the other on a certain future date at an agreed price. View Details Futures Futures contracts or ‘futures’ are an improvement over forward contracts as they are standardized and tradable.

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View Details Options An option is a contract where the writer of the option grants the buyer of the option the right to purchase View Details Warrants A warrant is a call option, which gives you the right (but you are not obliged) to buy a predetermined number of equity shares within a stipulated time frame at an agreed price. View Details

Swaps A swap is an agreement between two parties to exchange their cash flow streams, without liquidating the asset that generates those flows.

Commodity

YES! You are right commodities means rice, wheat, sugar, gold etc. And did you know that you could trade these commodities without owning a piece of the commodity you trade in.

Commodities, which you have been eating or using all this years or donning it as a fashion accessory or even running you car with, can be now traded on the Indian exchanges. It has always been traded in the Global exchanges, now it is your turn to experience the power of commodities.

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Commodity - Tutorials

Brief Introduction & Importance of Agricultural Commodities

Currently, it is largely the agricultural commodities, which are traded on the existing commodity derivatives markets in India. Agriculture is a key sector in the Indian economy. But the share of non-agricultural commodities, like metals – particularly bullion - in the basket of commodities traded at the Indian commodity derivatives markets, has a potential to grow rapidly in the near future, Even though the share of agriculture in the Gross Domestic Product is declining and estimated to be around 23 per cent, it has backward and forward linkages with other sectors.

The policy of the Government has been to protect and promote the agriculture sector through procurement and administered price mechanism. However, in view of the fiscal pressure and that of WTO to reduce direct support to agriculture under Agreement on Agriculture, there is a policy shift towards a market-oriented approach. In recent years, a major theme in liberalisation of the agricultural sector has been the improved functioning of product markets. It is increasingly felt that efficient product markets serve to further the interests of the agricultural sector.

A key aspect of the process of strengthening agricultural markets is the question of obtaining efficient derivatives markets for commodities. The expert committee on strengthening and developing agricultural marketing headed by Shri Shankerlal Guru recognized the role of forward markets in price-risk management and in facilitating direct marketing. There is now a considerable consensus that the derivatives markets play a valuable role in shaping decisions of the market intermediaries, including by farmers about sowing and investments into inputs, in smoothing price volatility, and in giving farmers and consumers better means of protecting against the adverse effects of volatility. If derivatives markets can function adequately, then some of the core policy goals of addressing volatility of agricultural prices can be addressed in a market-oriented fashion. This argument has been articulated in the National Agricultural Policy of the Government of India, 2000, which was followed by the removal of the ban on futures trading for all commodities in 2003. In addition, from 1998 onwards, domestic entities facing price risk abroad have been given permissions to utilise foreign derivatives exchanges in addressing their risk management needs.

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Commodity - Trading Strategies

Derivative Strategy

This is the simplest strategy and involves a directional trade. There are only two options:

1. Buying (Going Long) to profit from an expected price increase:

Someone expecting the price of a particular commodity or item to increase over a given period of time can seek to profit by buying futures contracts. If correct in forecasting the direction and timing of the price change, the futures contract can later be sold for the higher price, thereby yielding a profit. If the price declines rather than increases, the trade will result in a loss. Because of leverage, the gain or loss may be greater than the initial margin deposit.For example, assume it's now January, the July soybean futures contract is presently quoted at Rs 1300 per quintal, and over the coming months you expect the price to increase. You decide to deposit the required initial margin of, say, Rs. 13,000 and buy one July soybean futures contract. Further assume that by April the July soybean futures price has risen to Rs.1340 per quintal and you decide to take your profit by selling. Since each contract is for 10 metric tonnes (1 MT = 100 quintals), your Rs. 40 per quintal profit would come out to be 100 x 40 = Rs. 4000.

2. Selling (Going Short) to profit from an expected price decline:

However, someone expecting the price of a particular commodity to fall would do just the opposite, though the concept is almost identical. The only way going short to profit from an expected price decline differs from going long to profit from an expected price increase is the sequence of the trades. Instead of first buying a futures contract, you first sell a futures contract. If, as expected, the price declines, a profit can be realized by later purchasing an offsetting futures contract at the lower price. The gain per unit will be the amount by which the purchase price is below the earlier selling price.

For example, assume that in January your research or other available information indicates a probable decrease in prices of Urad over the next several months. In the hope of profiting, you deposit an initial margin of say Rs. 30,000 and sell one April Urad futures contract at a price of, Rs. 3000 per quintal. Each contract is for 10 MT (10 MT = 100 quintals), meaning each 1 rupee per quintal change in the price of Urad will increase or decrease the value of the futures contract by Rs. 100. If, by March, the price has declined to Rs. 2850 per quintal, an offsetting futures contract can be purchased at Rs 150 per quintal below the original selling price. On the 100 quintal (10MT) contract, that's a gain of 150 x 100. or Rs 15,000.

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Spread Strategy

While most speculative futures transactions involve a simple purchase of futures contracts to profit from an expected price increase--or an equally simple sale to profit from an expected price decrease--numerous other possible strategies exist. Spreads are one example. A spread, at least in its simplest form, involves buying one futures contract and selling another futures contract. The purpose is to profit from an expected change in the relationship between the purchase price of one and the selling price of the other.

As an illustration, assume it's now November, that the March soybean futures price is presently Rs 1200 per quintal and the May soybean futures price is presently at Rs. 1250 per quintal, a difference of Rs. 50 per quintal. Your analysis of market conditions indicates that, over the next few months, the price difference between the two contracts will widen to become greater than Rs. 50. To profit if you are right, you could sell the March futures contract (the lower priced contract) and buy the May futures contract (the higher priced contract).

Commodity - Margins

Basics & Importance of Margins

An important aspect of futures trading, a must read before trading the futures market.

Unlike in the case of spot markets where the buyer pays the entire purchase price in one go, in the futures markets only a partial or “token†amount is to be paid upfront for� taking a position. This money is taken by the broker as mandated by the exchanges and the FMC to safeguard against defaults caused by sudden abrupt movements in the prices of the underlying commodity.

For example if the price of Gold is Rs. 10,000 per 10gms and the contract size (or lot size) is 1kg of gold, the total rupee amount of the contract is 10,000x1000/10 = Rs.10 lakhs (This is merely the cost of 1kg of gold).

Whereas a physical market buyer would have to pay the entire sum of Rs. 10 lakhs upfront, a buyer of a futures contract of 1kg Gold only has to pay a “margin†of 10�

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per cent or so (These are constantly subject to change by the exchanges and brokers). Assuming a margin of 10 per cent, the buyer of a 1kg Gold futures contract only has to pay a sum of Rs. 1 lakh as margin to control a position of 1kg of Gold. He is thus “leveraged†ten-fold. Though he has paid only one tenth the cost of the 1 kg gold, he� is entitled to all the profits arising from the price changes of 1 kg of gold. His returns are therefore ten-fold what a physical buyer would obtain. As a trader in the commodity futures markets, one should know about the following types of margins:

Initial Margin: This is the amount of money deposited by both buyers and sellers of commodity futures contracts to ensure the performance of trades executed. Initial margin is payable on all open position at any point in time, and is payable upfront by the members/brokers in accordance with the margin computation mechanism.

Maintenance Margin: A trader is entitled to withdraw any balance in the margin account in excess of the initial margin. To ensure that the balance in the margin account never becomes negative, a maintenance margin, which is somewhat lower than the initial margin, is set. The trader is not allowed to withdraw any amount which causes the margin account to fall below the maintenance margin.

Delivery Margin

Additional Margin In case of sudden higher than expected volatility, the exchange calls for an additional margin, which is a preemptive move to prevent breakdown. This is imposed when the exchange fears the market have become too volatile and may result in payments crisis, etc.

MTM (Mark To Market)

All the open positions of the members are marked to market at the end of the day and the profit/loss determined as below:

o On the day of entering into the contract, it is the difference between the entry value and daily settlement price for that day. On any intervening days, when the member holds an open position, it is the difference between the daily settlement value for that day and the previous settlement price.

On the expiry date if the member has an open position, it is the difference between the final settlement price and the previous settlement price.

Reliance Life Insurance

Reliance Life Insurance is an associate company of Reliance Capital Ltd., which along with its associates has acquired 100% shares in AMP Sanmar Life Insurance Co Ltd.

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Reliance Life Insurance has a pan presence and a range of products catering to individual as well as corporate needs

A total of 16 products covering savings, protection & investment requirements

Reliance Life Insurance would strive hard to achieve the following goals:-

Emerge as transnational Life Insurer of global scale and standardAchieve impeccable reputation and credentials through best business practicesVision: Empowering everyone live their dreams Mission: Create unmatched value for everyone through dependable, effective, transparent and profitable life insurance and pension plans Guiding Principles

Customer Care and Satisfaction Corporate Governance Creativity and Innovation Competitiveness

Reliance General Insurance

About Reliance General Insurance

Reliance General Insurance, a Subsidiary of Reliance Capital, is one of the first non-life companies to get the license from the IRDA. RGICL offers an exhaustive range of insurance products that covers most risks including Property, Marine, Casualty and Liability.

Vision

To be an insurer of World Standards and the most preferred choice for clientele at the domestic and global level.

Mission

Our Mission is to keep the customer satisfaction as focal point of all our operations, adopt the best international practices in underwriting, claims and customer service, be the most innovative in product development, establish presence all over India, ensure sustained value addition to all stake holders and to uphold Corporate Value & Corporate Governance.

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Objectives

Make affordable insurance accessible to all Keep customer as focal point for all operations Protect policy holders interests Adopt best international practices in claims, underwriting and policy servicing Be the most innovative in product development Establish Pan India presence

Value propositions

Risk Evaluation: Provide expertise in risk evaluation and risk mitigation leading to the most appropriate risk transfer solution.

Post sales services: Differentiate on service parameters by ensuring prompt and correct documentation& fair, transparent, speedy claims settlement.

New products: Introduce innovative products suited to specific market segments

Training: Extensive training to the employees involved in underwriting and claims to ensure availability of a varied experienced and competent team to cater to the customer needs.

Technology: Use IT as a means to provide for a far superior customer experience in terms of access, speed and simplicity

Reinsurance backing: Apart from using capacity of the national reinsurer, establish relationships with the best reinsurers across the world.

Demat Account

If yes, this is what you need to do.First, open a demat account.

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Let's tackle a few questions that come to mind.

What's the difference between a depository and a depository participant?

A depository is a place where the stocks of investors are held in electronic form. The depository has agents who are called depository participants (DPs).

Think of it like a bank. The head office where all the technology rests and details of all accounts held is like the depository. And the DPs are the branches that cater to individuals.

There are only two depositories in India -- the National Securities Depository Ltd (NSDL) and the Central Depository Services Ltd (CDSL). There are over a 100 DPs.

What's a demat account?

Demat refers to a dematerialized account. Just as you have to open an account with a bank if you want to save your money, make cheque payments etc, you need to open a demat account if you want to buy or sell stocks.So it is just like a bank account where actual money is replaced by shares.

You have to approach the DPs (remember, they are like bank branches), to open your demat account. Let's say your portfolio of shares looks like this: 40 of Infosys, 25 of Wipro, 45 of HLL and 100 of ACC. All these will show in your demat account. So you don't have to possess any physical certificates showing that you own these shares. They are all held electronically in your account. As you buy and sell the shares, they are adjusted in your account.

Just like a bank passbook or statement, the DP will provide you with periodic statements of holdings and transactions.

Is a demat account a must?

Nowadays, practically all trades have to be settled in dematerialised form. 

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Although the market regulator, the Securities and Exchange Board of India (SEBI), has allowed trades of up to 500 shares to be settled in physical form, nobody wants physical shares any more.So a demat account is a must for trading and investing.

Where do I begin?

Look for a DP to have an account with

Most banks are also DP participants, as are many brokers. You can choose your very own DP. To get a list, visit the NSDL and CDSL websites and see who the registered DPs are.A broker is separate from a DP. A broker is a member of the stock exchange, who buys and sells shares on his behalf and on behalf of his clients. A DP will just give you an account to hold those shares. You do not have to take the same DP that your broker takes. You can choose your own. But many brokers offer special incentives in the form of lower charges for opening demat accounts with their DPs.

Get your documents in place

Once you approach your DP, you will be guided through the formalities of opening an account. You must fill up an account opening form and sign an agreement with your DP. The DP will ask for some documents as proof of your identity and address. Check with them what they require. For instance, some may accept a driver's license, others may not. Here is a broad list (you won't need all of them though):� PAN card � Voter's ID� Passport� Ration card� Driver's license� Photo credit card � Employee ID card� Bank attestation� IT returns� Electricity/ Landline phone bill

While they only ask for photocopies of the documents, they will need the originals for verification. You will have to submit a passport size photograph on which you sign across.

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How many shares you need to have to open an accountWhen opening an account with a bank, you need a minimum balance. Not so with a demat account. A demat account can be opened with no balance of shares. And there is no minimum balance to be maintained either. You can have a zero balance in your account.

What will it cost?The charges for account opening, annual account maintenance fees and transaction charges vary between DPs. To get a comparative idea, visit the websites of NSDL and CDSL.

Can I nominate?Sure. You can nominate whoever you like by filling up the nomination details in the account opening form. This is to enable the nominee to receive the securities after the death of the holder of the demat account.

All set?When you open an account, the DP will allot a unique BO ID (Beneficial Owner Identification) Number, which you need to quote for all future transactions.If you want to sell your shares, you need to place an order with your broker and give a 'Delivery Instruction' to your DP. The DP will debit your account with the number of shares sold. You will receive the payment from your broker.If you want to buy shares, inform your broker about your Depository Account Number, so that the shares bought are credited into your account. It's that simple.Now get that account!

Reliance Brokerage Scheme

Reliance Money franchisee. He says that the Rs.12 per transaction is charged only for non internet transactions, where the clients go to the brokers office and trade. For transaction done thro internet this 12 rs. does not apply. The 500 rs. prepaid coupon will allow an intraday volume of 1 crore.

Reliance strategy is to gain max. market share within few months of launching. There is gonna be a big price war in the near future. It can only get better for investors, from here on.

Reliance money does not have an account with RBI.For Rs 500 one can get trading worth Rs 1.00 Cr.Now what it will cost to Reliance Money:

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RM has to pay Rs 400 per Cr to NSE as transaction charges a part of which which goes into Settlement Guarantee Fund. RM has to pay Rs 20 per cr to SEBI.I am not clear weather this includes STT ,State stamp Duty & Service tax.What about Demat Charges ? What they are going to charge is not available.Lets deem that this is not included.Now this leaves Rs 80 per cr with Reliance Money.

Can they survive with this amount ?What innocent investors are not understanding is that these are tactics to attract investors from their traditional brokers & later raise their tariff.

Reliance communication is master in this. They recently have a card costing Rs 180 by which U can send 18,000 SMS. When U are hooked to SMS, they suddenly withdraw this coupon.

Please ask your franchisee friend can they guarantee this tariff for 3 years ?They cannot !Further with one card you cannot sell or buy even in your wife's account.

Now if U have 4 demat account in your family, you have to spend Rs 2000/- on buying 4 cards. Can U trade Rs 4 Cr in one month.

Lastly Reliance Money is at par with all the brokers as far as charges are concerned.

Equity - COSTS OF INVESTING IN EQUITY

Brokerage charges

When you open a broking account with a broker, you are charged a nominal one-time fee. In addition, for every transaction undertaken, your broker will levy a broking fee. Presently, these range between 0.25 per cent and 0.85 per cent for delivery trades and between 0.03 per cent and 0.25 per cent for non-delivery based trades. (Source : http://www.reliancemoney.com/kb/story.as... )

Payment of Securities Transaction Tax (STT)

Investing in equity involves paying of Securities Transaction Tax (STT) while buying as well as selling shares. This is an indirect form of tax levied by the Government. Indicated below are the STT rates applicable:

STT rate applicable while buying shares for delivery0.125%

STT rate applicable while selling shares for delivery0.125%

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STT rate applicable while trading in shares0.025%

Let’s understand the applicability of STT with an example. For instance, if you buy 100 shares of Company ABC to take delivery at Rs 100 per share, your cost is Rs 10,000 (100 shares x Rs 100 per share). You will have to pay STT of Rs 12.50 (Rs 10,000 x 0.125 per cent) at the time of purchase. If you sell these shares at Rs 200 per share, your total sale will be Rs 20,000 (200 shares x Rs 200 per share. You will again have to pay STT of Rs 25 (Rs 20,000 x 0.125 per cent).

If you undertake trading on 100 shares of Company ABC, you will have to pay STT at the rate of 0.025 per cent on your buy or sell value, whichever is higher. For instance, if your buy value is Rs 10,000 and your sell value is Rs 15,000, STT of Rs 3.75 will be payable on the sell value (Rs 15,000 x 0.025 per cent).

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OBJECTIVE AND RATIONAL OF THE PROJECT

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OBJECTIVE AND RATIONALE OF THE PROJECT

OBJECTIVE

The primary objective of the project “Money Investment” is to find out the money investment criterion of public through understanding the marketing planning , consumer behavior ,direct sealing, market segmentation ,marketing communication.

So that the company can came to know about the psychology of the general people that while making the decision for investment of money which factors are considered by the people and also the age factor of the people that effects the decisions of the investment of moneyThis project helps us in coming to know about the no of people that how many people invest in which financial field.

This objective also helps in coming to know the customer satisfaction of their field of investment that how much they are satisfied of the facilities which are provide to them.

.

RATIONALE OF THE PROJECT

Each project has the objective because with out objective every project is worth less and uncompleted

The fundamental reason and the logical basis which are known as rationale of the project which makes the project complete.

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These fundamental reason makes the basis of the project thereby this project also has the fundamental reason called rationale of the project

.The rational of this project are problems which are being faced by the company in increasing the sale of the project and the less awareness about the market which is totally new for the company .these problems were being faced by the company because the company has passed only few months in jaipur rajasthan .

Here this project has few fundamental reasons for the project

1 .Investment criterion of people

2 .Sales increase

3. Existence in market

4. Less awareness about the market 5. Risk from the competitors

6 To find out the causes which affects the financial market

7. Product differentiation

8. To find out new areas

9. Less awareness about the company in market

10. Advertisement

11. To get over the investment mistakes that are done by investors

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REVIEW OF LITRATURE

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REVIEW OF LITRETURE

INTRODUCTION BODY

INTRODUCTION ;- This project money investment is based on the investment habits of the people so in this project to find out the investment habits and to find out the mistakes what they do in investment we have to learn consumer behavior, buying behavior. Along with this for the completion of this project we have to go through the this topics

1. Marketing Management 2. Market Segmentation3. Marketing Communication4. Direct sales 5. Marketing Strategies6. Marketing Planing

BODY:-For the given objective In the project I went through and reviewed this literature that includes the given topics.

MARKETING

Marketing is one of the most important functions in business. It is the discipline required to understand customers' needs and the benefits they seek. Academia does not have one commonly agreed upon definition. Even after a better part of a century the debate continues. In a nutshell it consists of the social and managerial processes by which products (goods or services) and value are exchanged in order to fulfill the needs and wants of individuals or groups. Although many people seem to think that "marketing" and "advertising" are synonymous, they are not. Advertising is simply one of the many processes that together constitute marketing .

A market-focused, or customer-focused, organization first determines what its potential customers desire, and then builds the product or service. Marketing theory and practice is justified in the belief that customers use a product/service because they have a need, or because a product/service has a perceived benefit.

Two major factors of marketing are the recruitment of new customers (acquisition) and the retention and expansion of relationships with existing customers (base management).

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For a marketing plan to be successful, the mix of the four "Ps" must reflect the wants and desires of the consumers in the target market. Trying to convince a market segment to buy something they don't want is extremely expensive and seldom successful.

Within most organizations, the activities encompassed by the marketing function are led by a Vice President or Director of Marketing. A growing number of organizations, especially large US companies, have a Chief Marketing Officer position, reporting to the Chief Executive Officer. The American Marketing Association (AMA) states, “Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives".

7Ps of marketing

1. Product2. Prising

3. Promotion

4. Placement

5. People

6. Process

7. Physical evidences

SIVA

A formal approach to this customer-focused marketing is known as SIVA (Solution, Information, Value, Access). This system is basically the four Ps renamed and reworded to provide a customer focus.

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Marketing management

This project money investment which is on marketing management. Marketing management is a business discipline focused on the practical application of marketing techniques and the management of a firm's marketing resources and activities. Marketing managers are often responsible for influencing the level, timing, and composition of customer demand in a manner that will achieve the company's objectives.

There is no universally accepted definition of the term. In part, this is due to the fact that the role of a marketing manager can vary significantly based on a business' size, corporate culture, and industry context. For example, in a large consumer products company, the marketing manager may act as the overall general manager of his or her assigned product category or brand with full profit & loss responsibility. In contrast, a small law firm may have no marketing personnel at all, requiring the firm's partners to make marketing management decisions on a largely ad-hoc basis.

But we candefine marketing management as "the art and science of choosing target markets and getting, keeping and growing customers through creating, delivering, and communicating superior customer value."

Activities and functions

Marketing management therefore encompasses a wide variety of functions and activities, although the marketing department itself may be responsible for only a subset of these. Regardless of the organizational unit of the firm responsible for managing them, marketing management functions and activities include the following

o 1 Marketing research and analysis o 2 Marketing strategy o 3 Implementation planning o 4 Project, process, and vendor management o 5 Organizational management and leadership o 6 Reporting, measurement and control systems

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MARKETING PLANING

A marketing plan is a written document that details the actions necessary to achieve one or more marketing objectives. It can be for a product or service, a brand, or a product line. It can cover one year (referred to as an annual marketing plan), or cover up to 5 (sometimes referred to as five) years.

A marketing plan may be part of an overall business plan. Solid marketing strategy is the foundation of a well-written marketing plan. While a marketing plan contains a list of actions, a marketing plan without a sound strategic foundation is of little use.

The marketing planning process

In most organizations, "strategic planning" is an annual process, typically covering just the year ahead. Occasionally, a few organizations may look at a practical plan which stretches three or more years ahead.

To be most effective, the plan has to be formalized, usually in written form, as a formal `marketing plan'. The essence of the process is that it moves from the general to the specific; from the overall objectives of the organization down to the individual action plan for a part of one marketing programme. It is also an iterative process, so that the draft output of each stage is checked to see what impact it has on the earlier stages - and is amended accordingly.

Corporate mission

Behind the corporate objectives, which in themselves offer the main context for the marketing plan, will lie the 'corporate mission'; which in turn provides the context for these corporate objectives. This `corporate mission' can be thought of as a definition of what the organization is; of what it does: 'Our business is …'.

This definition should not be too narrow, or it will constrict the development of the organization; a too rigorous concentration on the view that `We are in the business of making meat-scales', as IBM was during the early 1900s, might have limited its subsequent development into other areas

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Corporate vision

Perhaps the most important factor in successful marketing is the `corporate vision'. Surprisingly, it is largely neglected by marketing textbooks; although not by the popular exponents of corporate strategy - indeed, it was perhaps the main theme of the book by Peters and Waterman, in the form of their `Superordinate Goals'.[2] Theodore Levitt said: "Nothing drives progress like the imagination. The idea precedes the deed."[3] Marketing audit

The first formal step in the marketing planning process is that of conducting the marketing audit. Ideally, at the time of producing the marketing plan, this should only involve bringing together the source material which has already been collected throughout the year - as part of the normal work of the marketing department.

The emphasis at this stage is on obtaining a complete and accurate picture. In a single organization, however, it is likely that only a few aspects will be sufficiently important to have any significant impact on the marketing plan; but all may need to be reviewed to determine just which 'are' the few.

In this context some factors related to the customer, which should be included in the material collected for the audit, may be:

Who are the customers?

What are their key characteristics?

What differentiates them from other members of the population?

What are their needs and wants?

What do they expect the `product' to do?

What are their special requirements and perceptions?

What do they think of the organization and its products or services?

What are their attitudes?

What are their buying intentions?

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Analysis

The analysis of this material will, no doubt, require significant effort. In the first instance it is a matter of selection, of sorting the wheat from the chaff. What is important, and will need to be taken into account in the marketing plan that will eventually emerge from the overall process, will be different for each product or service in each situation. One of the most important skills to be learned in marketing is that of being able to concentrate on just what is important

Marketing objectives

It is only at this stage (of deciding the marketing objectives) that the active part of the marketing planning process begins'.

This next stage in marketing planning is indeed the key to the whole marketing process. The marketing objectives state just where the company intends to be; at some specific time in the future. James Quinn succinctly defined objectives in general as: "Goals (or objectives) state 'what' is to be achieved and 'when' results are to be accomplished, but they do not state 'how' the results are to be achieved".[7]

They typically relate to what products (or services) will be where in what markets (and must be realistically based on customer behaviour in those markets). They are essentially about the match between those 'products' and 'markets'. Objectives for pricing, distribution, advertising and so on are at a lower level, and should not be confused with marketing objectives. They are part of the marketing strategy needed to achieve marketing objectives.

To be most effective, objectives should be capable of measurement and therefore 'quantifiable'. This measurement may be in terms of sales volume, money value, market share, percentage penetration of distribution outlets and so on. An example of such a measurable marketing objective might be `to enter the market with product Y and capture 10 per cent of the market by value within one year'. As it is quantified it can, within limits, be unequivocally monitored; and corrective action taken as necessary

Emergent strategy

In this case, the intended strategy, decided upon traditionally or incrementally, is overtaken by events in two main ways. One, which will probably be recognized by the organization, is that of unrealized strategy; where it proves impossible to implement the chosen strategy in practice.

Less obvious is the emergent strategy which is decided by events in the external environment; and, thus, forced upon the organization. This may not necessarily be recognized, in its totality, by the organization - since many of its implications may be hidden. As markets become more complex, however, such emergent strategies are becoming more common.

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Marketing strategies

There are numerous definitions of what strategy is, but again James Quinn gave a succinct general definition: "A strategy is a 'pattern' or 'plan' that 'integrates' an organization's 'major' goals, policies and action sequences into a 'cohesive' whole"[7]

He went on to explain his view of the role of `policies', with which strategy is most often confused: "Policies are rules or guidelines that express the 'limits' within which action should occur.

Performance analysis

The most important elements of marketing performance, which are normally tracked, are:

Sales analysis

Most organizations track their sales results; or, in non-profit organizations for example, the number of clients. The more sophisticated track them in terms of 'sales variance' - the deviation from the target figures - which allows a more immediate picture of deviations to become evident. `Micro- analysis', which is a nicely pseudo-scientific term for the normal management process of investigating detailed problems, then investigates the individual elements (individual products, sales territories, customers and so on) which are failing to meet targets.

Market share analysis

Relatively few organizations, however, track market share. In some circumstances this may well be a much more important measure. Sales may still be increasing, in an expanding market, while share is actually decreasing - boding ill for future sales when the market eventually starts to drop. Where such market share is tracked, there may be a number of aspects which will be followed:

Overall market share Segment share - that in the specific, targeted segment Relative share -in relation to the market leaders

Use of Marketing Plans

A formal, written marketing plan is essential; in that it provides an unambiguous reference point for activities throughout the planning period. However, perhaps the most important benefit of these plans is the planning process itself. This typically offers a

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unique opportunity, a forum, for `information-rich' and productively focused discussions between the various managers involved. The plan, together with the associated discussions, then provides an agreed context for their subsequent management activities, even for those not described in the plan itself.

sales

Sales is the act of meeting prospective buyers and providing them with a product or service in turn of money or other required compensation. Sales is an act of completion of a commercial activity. The "deal is closed", means the customer has consented to the proposed product or service by making full or partial payment (as in case of installments) to the seller.Selling is a practical implementation and part of marketing. It often forms a separate grouping in a corporate structure, employing separate specialist operatives known as salespersons (singular: salesperson). Sales is considered by many to be a sort of persuading "art". Contrary to popular belief, the methodological approach of selling refers to a systematic process of repetitive and measurable milestones, by which a salesperson relates his offering of a product of service in return enabling the buyer to achieve his goal in an economic way.

Contents

1 Agents 2 Sales Techniques 3 Sales/Marketing relationship 3.1 Single purchases 3.2 Repeat purchases 4 Criticisms 4.1 Deceitful selling practices 5 References

Agents

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Agents in the sales process can be defined as representing either side of the sales process for example:

Sales broker or Seller agency or seller agent This is a traditional sales person role where the sales person represents a person or company on the selling end of the deal.[2]

Buyers broker or Buyer brokerage This is where the sales person represents the consumer making the purchase. This is most often applied in large transactions.

Disclosed dual agent This is where the sales person represents both parties in the sale and acts as a mediator for the transaction. The role of the sales person here is to over see that both parties receive an honest and fair deal, and is responsible to both.

Transaction broker This is where the sales person doesn't represent either party, but handles the transaction only. This is where the seller owes no responsibility to either party getting a fair or honest deal, just that all of the papers are handled properly.

Sales Managers It is the goal of a qualified and talented sales manager to implement various sales strategies and management techniques in order to facilitate improved profits and increased sales volume. They are also responsible for coordinating the sales and marketing department as well as over site concerning the fair and honest execution of the sales process by his agents.[3]

Salespersons The primary function of professional sales is to generate and close leads, educate prospects, fill needs and satisfy wants of consumers appropriately, and therefore turn prospective customers into actual ones. The successful questioning to understand a customer's goal, the further creation of a valuable solution by communicating the necessary information that encourages a buyer to achieve his goal at an economic cost is the responsibility of the sales person or the sales engine (e.g. internet, vending machine etc).

Sales Techniques

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The sale can be made through:

Direct Sales, involving person to person contact Pro forma sales Agency-based

o sales agents (real estate, manufacturing) o Transaction sales o Consultative sales o Complex sales o consignment o telemarketing or telesales o retail or consumer

door-to-door or traveling salesman Request for Proposal is an invitation for suppliers, through a bidding process, to

submit a proposal on a specific product or service. An RFP is usually part of a complex sales process, also known as enterprise sales.

Business-to-business — Business-to-business sales are much more relationship based owing to the lack of emotional attachment to the products in question. Industrial/Professional Sales is selling from one business to another

Electronic o Web — Business-to-business and business-to-consumer o Electronic Data Interchange (EDI) is a set of standards for structuring

information to be electronically exchanged between and within businesses Indirect, human-mediated but with indirect contact

o Mail-order

Sales/Marketing relationship

Marketing plays a very important part in sales. If the marketing department generates a potential customers list, it can be benificial for sales. The marketing department's goal is to bring people to the sales team using promotional techniques such as advertising, sales promotion, publicity, and public relations. In most large corporations, the marketing department is structured in a similar fashion to the sales department[citation needed] and the managers of these teams must coordinate efforts in order to drive profits and business success. Driving more customers "through the door" gives the sales department a better chance by ratio of selling their product to the consumer.[4]

SALES PLANING

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INTRODUCTION

University departmental activities are supported by 8 major categories of revenue. External sales represent one of these categories of revenue:

← Tuition and Fees ← Government Appropriations

← Sponsored Projects

← Gifts

← Investment Income

← Patient Care Reimbursement

← Sales to University Departments

← Sales to External Customers

WHAT ARE EXTERNAL SALES?

An external sale is an exchange by the University of tangible or intangible property or service for monetary consideration with external customers. Transactions handled by SPA related to technology transfer, licensing or trademark agreements are excluded from this policy. See Appendix F for examples of external sales.

Sales to external customers include the following:

← Department sales of property and services ← Auxiliary enterprise sales (Housing, Bookstores, etc.)

← Centrally negotiated agreements involving U-wide property or services (e.g. exclusive use contracts)

← ISO sales to customers that are NOT University departments

At times, it is difficult to determine if an activity is an external sale or if it is a sponsored project or gift. To help with this determination see Appendix E.

PLANNING QUESTIONS

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Can I conduct this activity?

External sales activity must be consistent with the University mission or be undertaken to maximize the use of existing University resources consistent with the objectives of the University. These activities should be pursued in a commercial and competitive manner and whenever feasible provide learning opportunities for students and foster good relations with outside constituencies. The following are some examples of activity that would be appropriate and inappropriate.

Potentially Appropriate Activity (Subject to Procedures in this Policy)

← Operate medical testing labs 24 hours a day for commercial testing ← Operate a veterinary medicine clinic for routine care on nights and weekends

← Test commercial software products

← Provide medical/surgical services to community hospital

← Sell advertising space on the WWW

← Provide parking and shuttle service to the general public for non-University sports events

← Use University labs and equipment to consult with business and industry

Potentially Inappropriate Activity

← Operate businesses such as a shoe store entirely unrelated to the U mission ← Contract with a vendor in a manner that violates existing exclusive University

vendor agreements

← Engaging in activities that violate federal or state laws or University policy (copyright, trademark, conflict of interest)

← Seek unfair competitive advantage by using government appropriations, tuition revenues, or other U funds to subsidize operations (e.g., no charge for space or utility costs)

← Engaging in activities that expose the University to unresolved insurance, legal, tax, or environmental health and safety risks

Once you have determined that the business activity you are considering is appropriate, you should then decide if you have the appropriate staffing to handle this activity. The External Sales Coordinator can help with these questions.

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Should I Conduct This Activity?

A major purpose of conducting these activities is to generate profits to support the department and University mission. To determine profit, you must estimate the revenue and expenses related to the activity. Expenses include not only the direct expenses of the activity (i.e. salaries and cost of goods sold) but also indirect expenses (i.e., space, utilities, administrative support, and depreciation). An external sales activity should generally not be undertaken if it cannot be sustained as a self-supporting activity. In situations where University facilities would otherwise sit idle, incremental revenue may be desirable even if allowable indirect expenses are not fully recovered. Many University facilities carry fixed overhead costs that will be incurred regardless of how a facility might be used with an external customer base.

External sales activities can also enhance student experiences and expand relationships with entities outside the University. These goals along with the chance to generate profits must be balanced with the risks associated with the activity. Consideration should be given to risks such as legal, tax, or insurance issues as well as the consequences of sales on major donors or supporters.

If you have been operating a business activity on a commercial, competitive, and profitable basis for some time, you may want to consider contacting SPA about making a technology transfer decision.

CONSUMAR BEHAVIOUR

What is Consumer Buying Behavior?

Definition of Buying Behavior:

Buying Behavior is the decision processes and acts of people involved in buying and using products.

Need to understand:

• why consumers make the purchases that they make?

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• what factors influence consumer purchases?

• the changing factors in our society.

Consumer Buying Behavior refers to the buying behavior of the ultimate consumer. A firm needs to analyze buying behavior for:

• Buyers reactions to a firms marketing strategy has a great impact on the firms success.

• The marketing concept stresses that a firm should create a Marketing Mix (MM) that satisfies (gives utility to) customers, therefore need to analyze the what, where, when and how consumers buy.

• Marketers can better predict how consumers will respond to marketing strategies.

Stages of the Consumer Buying Process

Six Stages to the Consumer Buying Decision Process (For complex decisions). Actual purchasing is only one stage of the process. Not all decision processes lead to a purchase. All consumer decisions do not always include all 6 stages, determined by the degree of complexity...discussed next.

The 6 stages are:

1. Problem Recognition(awareness of need)--difference between the desired state and the actual condition. Deficit in assortment of products. Hunger--Food. Hunger stimulates your need to eat.

Can be stimulated by the marketer through product information--did not know you were deficient? I.E., see a commercial for a new pair of shoes, stimulates your recognition that you need a new pair of shoes.

2. Information search--

o Internal search, memory.

o External search if you need more information. Friends and relatives (word of mouth). Marketer dominated sources; comparison shopping; public sources etc.

A successful information search leaves a buyer with possible alternatives, the evoked set.

Hungry, want to go out and eat, evoked set is

o chinese food

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o indian food

o burger king

o klondike kates etc

3. Evaluation of Alternatives--need to establish criteria for evaluation, features the buyer wants or does not want. Rank/weight alternatives or resume search. May decide that you want to eat something spicy, indian gets highest rank etc.

If not satisfied with your choice then return to the search phase. Can you think of another restaurant? Look in the yellow pages etc. Information from different sources may be treated differently. Marketers try to influence by "framing" alternatives.

4. Purchase decision--Choose buying alternative, includes product, package, store, method of purchase etc.

5. Purchase--May differ from decision, time lapse between 4 & 5, product availability.

6. Post-Purchase Evaluation--outcome: Satisfaction or Dissatisfaction. Cognitive Dissonance, have you made the right decision. This can be reduced by warranties, after sales communication etc.

After eating an indian meal, may think that really you wanted a chinese meal instead.

Categories that Effect the Consumer Buying Decision Process

A consumer, making a purchase decision will be affected by the following three factors:

1. Personal

2. Psychological

3. Social

The marketer must be aware of these factors in order to develop an appropriate MM for its target market.

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Personal

Unique to a particular person. Demographic Factors. Sex, Race, Age etc.

Who in the family is responsible for the decision making.

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Young people purchase things for different reasons than older people.

Handout...From choices to checkout...

Highlights the differences between male and female shoppers in the supermarket.

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Psychological factors

Psychological factors include:

• Motives--

A motive is an internal energizing force that orients a person's activities toward satisfying a need or achieving a goal.

Actions are effected by a set of motives, not just one. If marketers can identify motives then they can better develop a marketing mix.

MASLOW hierarchy of needs!!

o Physiological

o Safety

o Love and Belonging

o Esteem

o Self Actualization

Need to determine what level of the hierarchy the consumers are at to determine what motivates their purchases.

Handout...Nutrament Debunked...

Nutrament, a product marketed by Bristol-Myers Squibb originally was targeted at consumers that needed to receive additional energy from their drinks after exercise etc., a fitness drink. It was therefore targeted at consumers whose needs were for either love and Belonging or esteem. The product was not selling well, and was almost terminated. Upon extensive research it was determined that the product did sell well in inner-city convenience stores. It was determined that the consumers for the product were actually drug addicts who couldn't not digest a regular meal. They would purchase Nutrament as a substitute for a meal. Their motivation to purchase was completely different to the motivation that B-MS had originally thought. These consumers were at the Physiological

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level of the hierarchy. BM-S therefore had to redesign its MM to better meet the needs of this target market.

Motives often operate at a subconscious level therefore are difficult to measure.

• Perception--

What do you see?? Perception is the process of selecting, organizing and interpreting information inputs to produce meaning. IE we chose what info we pay attention to, organize it and interpret it.

Information inputs are the sensations received through sight, taste, hearing, smell and touch.

Selective Exposure-select inputs to be exposed to our awareness. More likely if it is linked to an event, satisfies current needs, intensity of input changes (sharp price drop).

Selective Distortion-Changing/twisting current received information, inconsistent with beliefs.

Advertisers that use comparative advertisements (pitching one product against another), have to be very careful that consumers do not distort the facts and perceive that the advertisement was for the competitor. A current example...MCI and AT&T...do you ever get confused?

Selective Retention-Remember inputs that support beliefs, forgets those that don't.

Average supermarket shopper is exposed to 17,000 products in a shopping visit lasting 30 minutes-60% of purchases are unplanned. Exposed to 1,500 advertisement per day. Can't be expected to be aware of all these inputs, and certainly will not retain many.

Interpreting information is based on what is already familiar, on knowledge that is stored in the memory.

Handout...South Africa wine....

Problems marketing wine from South Africa. Consumers have strong perceptions of the country, and hence its products.

• Ability and Knowledge--

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Need to understand individuals capacity to learn. Learning, changes in a person's behavior caused by information and experience. Therefore to change consumers' behavior about your product, need to give them new information re: product...free sample etc.

South Africa...open bottle of wine and pour it!! Also educate american consumers about changes in SA. Need to sell a whole new country.

When making buying decisions, buyers must process information.

Knowledge is the familiarity with the product and expertise.

Inexperience buyers often use prices as an indicator of quality more than those who have knowledge of a product.

Non-alcoholic Beer example: consumers chose the most expensive six-pack, because they assume that the greater price indicates greater quality.

Learning is the process through which a relatively permanent change in behavior results from the consequences of past behavior.

• Attitudes--

Knowledge and positive and negative feelings about an object or activity-maybe tangible or intangible, living or non- living.....Drive perceptions

Individual learns attitudes through experience and interaction with other people.

Consumer attitudes toward a firm and its products greatly influence the success or failure of the firm's marketing strategy.

Handout...Oldsmobile.....

Oldsmobile vs. Lexus, due to consumers attitudes toward Oldsmobile (as discovered by class exercise) need to disassociate Aurora from the Oldsmobile name.

Exxon Valdez-nearly 20,000 credit cards were returned or cut-up after the tragic oil spill.

Honda "You meet the nicest people on a Honda", dispel the unsavory image of a motorbike rider, late 1950s. Changing market of the 1990s, baby boomers aging, Hondas market returning to hard core. To change this they have a new slogan "Come ride with us".

Attitudes and attitude change are influenced by consumers personality and lifestyle.

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Consumers screen information that conflicts with their attitudes. Distort information to make it consistent and selectively retain information that reinforces our attitudes. IE brand loyalty.

There is a difference between attitude and intention to buy (ability to buy).

• Personality--

all the internal traits and behaviors that make a person unique, uniqueness arrives from a person's heredity and personal experience. Examples include:

o Workaholism

o Compulsiveness

o Self confidence

o Friendliness

o Adaptability

o Ambitiousness

o Dogmatism

o Authoritarianism

o Introversion

o Extroversion

o Aggressiveness

o Competitiveness.

Traits effect the way people behave. Marketers try to match the store image to the perceived image of their customers.

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There is a weak association between personality and Buying Behavior, this may be due to unreliable measures. Nike ads. Consumers buy products that are consistent with their self concept.

• Lifestyles--

Recent US trends in lifestyles are a shift towards personal independence and individualism and a preference for a healthy, natural lifestyle.

Lifestyles are the consistent patterns people follow in their lives.

EXAMPLE healthy foods for a healthy lifestyle. Sun tan not considered fashionable in US until 1920's. Now an assault by the American Academy of Dermatology.

Handout...Here Comes the Sun to Confound Health Savvy Lotion Makers..

Extra credit assignment from the news group, to access Value and Lifestyles (VALS) Program, complete the survey and Email alex@udel.edu the results. This is a survey tool that marketers can use to better understand their target market(s).

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Social Factors

Consumer wants, learning, motives etc. are influenced by opinion leaders, person's family, reference groups, social class and culture.

• Opinion leaders--

Spokespeople etc. Marketers try to attract opinion leaders...they actually use (pay) spokespeople to market their products. Michael Jordon (Nike, McDonalds, Gatorade etc.)

Can be risky...Michael Jackson...OJ Simpson...Chevy Chase

• Roles and Family Influences--

Role...things you should do based on the expectations of you from your position within a group.

People have many roles.

Husband, father, employer/ee. Individuals role are continuing to change therefore marketers must continue to update information.

Family is the most basic group a person belongs to. Marketers must understand:

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o that many family decisions are made by the family unit

o consumer behavior starts in the family unit

o family roles and preferences are the model for children's future family (can reject/alter/etc)

o family buying decisions are a mixture of family interactions and individual decision making

o family acts an interpreter of social and cultural values for the individual.

The Family life cycle: families go through stages, each stage creates different consumer demands:

o bachelor stage...most of BUAD301

o newly married, young, no children...me

o full nest I, youngest child under 6

o full nest II, youngest child 6 or over

o full nest III, older married couples with dependant children

o empty nest I, older married couples with no children living with them, head in labor force

o empty nest II, older married couples, no children living at home, head retired

o solitary survivor, in labor force

o solitary survivor, retired

o Modernized life cycle includes divorced and no children.

Handout...Two Income Marriages Are Now the Norm

Because 2 income families are becoming more common, the decision maker within the family unit is changing...also, family has less time for children, and therefore tends to let them influence purchase decisions in order to alleviate some of the guilt. (Children influence about $130 billion of goods in a year) Children also have more money to spend themselves.

• Reference Groups--

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Individual identifies with the group to the extent that he takes on many of the values, attitudes or behaviors of the group members.

Families, friends, sororities, civic and professional organizations.

Any group that has a positive or negative influence on a persons attitude and behavior.

Membership groups (belong to)

Affinity marketing is focused on the desires of consumers that belong to reference groups. Marketers get the groups to approve the product and communicate that approval to its members. Credit Cards etc.!!

Aspiration groups (want to belong to)

Disassociate groups (do not want to belong to)

Honda, tries to disassociate from the "biker" group.

The degree to which a reference group will affect a purchase decision depends on an individuals susceptibility to reference group influence and the strength of his/her involvement with the group.

• Social Class--

an open group of individuals who have similar social rank. US is not a classless society. US criteria; occupation, education, income, wealth, race, ethnic groups and possessions.

Social class influences many aspects of our lives. IE upper middle class Americans prefer luxury cars Mercedes.

o Upper Americans-upper-upper class, .3%, inherited wealth, aristocratic names.

o Lower-upper class, 1.2%, newer social elite, from current professionals and corporate elite

o Upper-middle class, 12.5%, college graduates, managers and professionals

o Middle Americans-middle class, 32%, average pay white collar workers and blue collar friends

o Working class, 38%, average pay blue collar workers

o Lower Americans-lower class, 9%, working, not on welfare

o Lower-lower class, 7%, on welfare

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Social class determines to some extent, the types, quality, quantity of products that a person buys or uses.

Lower class people tend to stay close to home when shopping, do not engage in much prepurchase information gathering.

Stores project definite class images.

Family, reference groups and social classes are all social influences on consumer behavior. All operate within a larger culture.

• Culture and Sub-culture--

Culture refers to the set of values, ideas, and attitudes that are accepted by a homogenous group of people and transmitted to the next generation.

Culture also determines what is acceptable with product advertising. Culture determines what people wear, eat, reside and travel. Cultural values in the US are good health, education, individualism and freedom. In american culture time scarcity is a growing problem. IE change in meals. Big impact on international marketing.

MARKET SEGMENTATION

Market segmentation is the process of segmenting market in to different –different segments.

A Market segment is a subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs.

Market segmentation is the process in marketing of dividing a market into distinct subsets (segments) that behave in the same way or have similar needs. Because each segment is fairly homogeneous in their needs and attitudes, they are likely to respond similarly to a given marketing strategy. That is, they are likely to have similar feelings and ideas about a marketing mix comprised of a given product or service, sold at a given price, distributed in a certain way and promoted in a certain way.

Broadly, markets can be divided according to a number of general criteria, such as by industry or public versus private sector. Small segments are often termed niche markets

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or specialty markets. However, all segments fall into either consumer or industrial markets. Although it has similar objectives and it overlaps with consumer markets in many ways, the process of Industrial market segmentation is quite different.

The process of segmentation is distinct from targeting (choosing which segments to address) and positioning (designing an appropriate marketing mix for each segment). The overall intent is to identify groups of similar customers and potential customers; to prioritise the groups to address; to understand their behaviour; and to respond with appropriate marketing strategies that satisfy the different preferences of each chosen segment. Revenues are thus improved.

Improved segmentation can lead to significantly improved marketing effectiveness. With the right segmentation, the right lists can be purchased, advertising results can be improved and customer satisfaction can be increased.

The requirements for successful segmentation are:

homogeneity within the segment heterogeneity between segments segments are measurable and identifiable segments are accessible and actionable segment is large enough to be profitable

These criteria can be summarized by the word DAMAS:

D Differential: it must respond differently to a different marketing mix A Actionable: you must have a product for this segment to be accured M Measurable: size and purchasing power can be measured A Accessible: it must be possible to reach it efficiently S Substantial: the segment has to be large and profitable enough

The variables used for segmentation include:

Geographic variables o region of the world or country, East, West, South, North, Central, coastal,

hilly, etc. o country size/country size : Metropolitian Cities, small cities, towns. o Density of Area Urban, Semi-urban, Rural. o climate Hot, Cold, Humid, Rainy.

Demographic variables o age o gender Male and Female o sexual orientation o family size o family life cycle o Education Primary, High School, Secondary, College, Universities.

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o income o occupation o education o socioeconomic status o religion o nationality/race o language

Psychographic variables o personality o life style o value o attitude

Behavioural variables o benefit sought o product usage rate o brand loyalty o product end use o readiness-to-buy stage o decision making unit o profitability

When numerous variables are combined to give an in-depth understanding of a segment, this is referred to as depth segmentation. When enough information is combined to create a clear picture of a typical member of a segment, this is referred to as a buyer profile. When the profile is limited to demographic variables it is called a demographic profile (typically shortened to "a demographic"). A statistical technique commonly used in determining a profile is cluster analysis.

Top-down and bottom-up

George Day (1980) describes model of segmentation as the top-down approach: You start with the total population and divide it into segments. He also identified an alternative model which he called the bottom-up approach. In this approach, you start with a single customer and build on that profile. This typically requires the use of customer relationship management software or a database of some kind. Profiles of existing customers are created and analysed. Various demographic, behavioural, and psychographic patterns are built up using techniques such as cluster analysis. This process is sometimes called database marketing or micro-marketing. Its use is most appropriate in highly fragmented markets. McKenna (1988) claims that this approach treats every customer as a "micromajority". Pine (1993) used the bottom-up approach in what he called "segment of one marketing". Through this process mass customization is possible.

Price discrimination

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Where a monopoly exists, the price of a product is likely to be higher than in a competitive market and the quantity sold less, generating monopoly profits for the seller. These profits can be increased further if the market can be segmented with different prices charged to different segments (referred to as price discrimination), charging higher prices to those segments willing and able to pay more and charging less to those whose demand is price elastic. The price discriminator might need to create rate fences that will prevent members of a higher price segment from purchasing at the prices available to members of a lower price segment. This behaviour is rational on the part of the monopolist, but is often seen by competition authorities as an abuse of a monopoly position, whether or not the monopoly itself is sanctioned. Examples of this exist in the transport industry (a plane or train journey to a particular destination at a particular time is a practical monopoly) where Business Class customers who can afford to pay may be charged prices many times higher than Economy Class customers for essentially the same service. Microsoft and the Video industry generally also price exactly the same product at widely varying prices depending on the market they are selling to, and try to enforce this with a mix of legislation and Digital Rights Management.

MARKETING COMMUNICATION

Marketing depends heavily on an effective communication flow between the compnay and the consumermanufacturing a product and making it avilable on the is only part of the companys job .it is equelly important ,or perhapes more important ,to make it known to the consumar that the product is avilable in the market .in a compitive market where several are striving to win over comsumer ,it is not enough if the avilability is made known . it is the essential to propogate the distinctive feature of the product. The process does not end here end either. The firm shoud also get the feed backon the consumer accept its product and interprate its massage.

Teadetionaly the ,markeying men have been of the view that the promotion mix cosisting of personal selling, avdertising ,sales promotion and publcity is the only intrument avilable for communicating for people and consumer . Im the past marketing letratutre too adopted the same apporch and discribe the promotion mix as the sole instrument of matketing comunications . tehaproch ha under gone significant changes over the years.

Defination of marketing comunication

Marketing can be defind as the endevour of presenting a set of massage to a target market through multiple cues and media ,with intantion of creating favourable respons from the

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market for the companys total product offering and simultaniously providing for marketing feed back for improving and modifiding the offering.

This means that the firm is a sender of market message and also a resiver of market response . in its role as a sender of a message the firm comunication with the market not only through promotional stimulai but through product , and place point of sale. In its role as a resiver of a market response the firm collect the information through market resarch and marketing comunication system , this perticular aspect of the comnicationflow is dealt with in the chepter of marketing research and marketing information system.in this chapter we shall confirm our discussion to comunication flow from the firm to the consumer .

MARKETING COMMUNICATION MIX

PRODCUCT COMMUNICATION PRICE COMMUNICATION

PLACE COMMUNICATION

PROMOTION COMUNCATION

ADVERTISING COMUNICATES PERSONAL SALING COMMUNICATION

SALES PROMOTION COMUNICATION

PUBLICITY COMMUNICATION

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RESEARCH METHODOLOGY

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RESEARCH METHDOLOGY

RRESEARCH DESIGN :-

Development of research design is very importatnt step in the project .The choice of research design depends on the depth and extant of the data required , That cost and benefits the research. Research design is actuiiy the blue print of the research project ,and when implemented it it must bring the information required for solving the problem.The research desugn indecates the method of research (yhe method of information gathering),The instrument of research ,the method of sampling etc. again the it is the research design that will largely determine whetre the information finally collected by will relevent to the study , wheter the informatione will be collected in an objective and scientific way , and whetre it wil be collected at the resonable cost

Resarch procedure springs from research design . It spells out the plan for securing the information .

Each and every research requires Data collection and data collection is the heart of every marketing researech .it is an elaborate process through which the researcher makes a plan ed search for relevent data which is required and the required data for the assignmentData is the raw with which a market researcher functions.

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Primary and secondary data :-

Data ,or factes, may be drived from several sources . Data can be classified as primary data and secondary data .primay data is data gathered for yhe first time by the reseracher and secondary data is data taken by the researcher from the secondary resources ,internal or external.

Primary can be collected through observational studies, market serveys, or experiments, . it is a task that demands technical expertise

Here this project has also been required the research design for collecting the information required therefor I made a research design where I designed my this whole process for data collection . interpration and analysis.

This research has also been designed in to several steps .the objective of this project was to find out the investment criterion of the general people .and acording to this objetive I designed this process into these following steps.

1. First step :- In first step I prepared 60 qustionaire for collecting the data required for this project , that questionaire is mationed with this project also .this has both kind of questiones the open ended and the close ende questiones

2. Second step :- In second step I devieded these 60 questionaore in to 3 different groups of three different age groups 20-35 years,36-50 years and 51-above

3. Thered step :- in thered step while executing my work of sales I made two sgment of custmer first the person who they workes in industrial sector and second the person who they do not work in industrial sector

4. Fourth step :- in fourth step I got filled all 60 questionmaire by the different – different persones in two segmentes. 20 questionnaire to each age group.

5. Fifth step :- In fifth step I collected all data which has been collected through quesstionnaires by open ended and close ended questiones.

6. Sixth step :-this step is the setp of interprating the date in this step I interprated the data which I collected througe the questionnaires

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7. Seventh step :- in this seventh step I analised the data I collected for this project through different tecniques and presented the research findings through graphes and tables.

By this way I designed my research in seven different steps and worked up on my research desigen which I made for this project .

SAMPLE SIZE:-

Every research requires the data for the project and this data comes from the data collection tools .these data collection tools can be any thing it can be questionnaire or mechanical and electronical device like it can be collected through interviews, mail interview, telephonic interview, personal interview,.

In many market research project, conducting a cencus study or study of entire universe will be impractical on account of limitation of time and money .Hense sampling becomes invitable.

Sampling is used to collect primary data when the sourcess of data are far too many to be exhaustively handled. In review of the importance of sampling in the data collaction pocess we are discussing the subject at length. Obviously the a sample is only a portion of the universe or population the success of sampling depends on the on extant to which the characteristics of the sample truly those of universe.

Sampling have many advantage in itself .sampling saves cost and time .It enbles collection of information that is ok for given purpose at at alesser cost and time .it enbles butter supervision of information gathering task and presentation of the data it also helpes ensure the required degree of precision

SAMPLE:-sampe is a part of population or universe.

Sampling Method :-

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Different methods can be employed to select the sample unites .these methods termed as sampling methods , fall under two brode categaries.

1. probability/random sampling methods2. non-probability sampling methodes

In this process I choosed the second categary of sampling in this I choosed the two areas for my sampling in that I can get revelent data which I required for the given project

As a sample size I choosed the sample size of 60 person because it is the research which finds out the market structure of market and this is known as the exploratory kind of research.

RESEARCH TOOLES AND QUESTIONNAIRE :-

Research tooles and questionnapre are very important in research and with it any one can not think about the research . Research are those tooles which are used in data colletion and questionnaire. In this I made quistionnaire which is attaced with this .

These tooles halpes alote in preparing the research and execution of project

Qyestonnaire is annexture

ACTION PLAN FOR DATA COLLECTION :-

As action plan for data collection For this project I developed the sampling design and these following componsnts comes in this sampling design . these are the steps of action plan which is also known as sampling

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At First I choosed the sample unit that who are to be serveyed . I choose it on propbability basis I choose two segmente of custmer 1. The person who they are in the industrial field and 2. The person who they are not in the industrial field.

Second I choosed the sample size that how many are to be serveyed in this I choosed the size of 60 person who are to be serveyed and in this I differentiated the sample size of 60 person in three groups on the basis of age that are these

1. 20-35 years2. 36-50 years3. 50- above years

because it is the research which discribes the market structure and for this research it requires the sample size of more then 30 samples .so this research is a kind of exploratory research .

Then in thered step I choosed sample procedure that how to ensure those who are to be introgated are include in the sample

Then in fourth step I choosed the sample media in this I choosed the media by which I can collect the best data for my reseaech and for this I went for questionnaire

This was the action plan through which I collected the data for given research project

DATA ANALYSIS AND REPORT PREPRATION

Data analysis is the process in which a researcher analyze the collected data and interpret this data. This process is known as the analysis and report preparation of data .Each project has to have research findings to become complete in it self thus this process of research analysis helps in finding out the research findings and makes it complete .

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In process of data analysis we analyze the data through different measuring techniques and measurement of data gathered from the respondent is an important aspect of any research study

Measurement may be easy if the answer consist the wholly consist of questionnaire but in any marketing situation the response sought from the respondents are qualitative in nature ,relating to perception ,feeling and dislikes inclination and preferences. Suitable devices have to be found out for measuring such response

. For measuring the quantities data a researcher has the many other techniques to measure that gathered data.

In I measured the gathered data through different techniques and presented that by the help of tables and graphs .i collected the data of 3 different age group of people who they work in the industrial sector and who they do not work in the industrial sector for this I went to the corporate reason of the city and collected the data from there.

Here I have presented the gathered data of different age of people in tables according to their habits of money investment and their age group also effects their habits of mony investment .

I separated the people in the age group of -Group 1:-20-35 yearsGroup 2:- 36-50 years Group 3:-51- above

Table 1 :- age group 20-35 years

Table 1.1

  Bank Equity Commodity

Often 70 70 60

Some time 20 14 10

70

Do not 10 16 30

PERCENTAGE

Table 1.2

PERCENTA

  Mutual fund

Derivatives Offshore investment

Often 60 20 6

Some time 30 10 10

Do not 10 70 84

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GE

Table 1.3

PERCENT

 Life

insuranceGeneral

insuranceOthers

Often 80 68 26

Some time 12 6 16

Do not 8 26 68

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AGE

Group 2:- 36-50 years Of Age Group

Table 2.1

  Bank Equity Commodity

Often 92 60 40

Some time 6 26 36

Do not 2 14 44

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PERCENTAGE

Table 2.2

PERCENTAGE

  Mutual fund

Derivatives Offshore investment

Often 80 40 10

Some time 14 18 5

Do not 6 42 85

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Table 2.3

PERCENTAGE

 Life

insuranceGeneral

insuranceOthers

Often 86 60 70

Some time 10 30 20

Do not 4 10 10

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Table 3:- Age group 51- above

Table 3.1

PERCENTAGE

Table 3.2

  Bank Equity Commodity

Often 96 40 20

Some time 2 20 16

Do not 2 40 64

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PERCENTAGE

Table 3.3

  Mutual fund

Derivatives Offshore investment

Often 50 20 4

Some time 20 14 13

Do not 30 66 83

 Life

insuranceGeneral

insuranceOthers

Often 60 20 83

Some time 10 40 4

Do not 30 40 13

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PERCENTAGE

1. Pie chart 20-35 years Age Group

Bank

Equity

Commodity

Mutual funds

Derivatives

offshore investment

Life insurance

General insurance

Others

2. Pie chart 36-50 years Age Group

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Bank

Equity

Commodity

Mutual fund

Derivative

Offshore investment

life insurance

General insurance

Others

3. Pie chart 51-above years Age Group

Bank

Equity

Commodity

Mutual fund

Derivative

Offshore investment

life insurance

General insurance

Others

Here all pi-charts are showing the percentage of the general people they invest most Of times and often in their field of investment.

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RESEARCH FINDINGS

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Chapter 5 Research Finding

After analyzing the data I have found these research findings

20-35

Here I have presented the gathered data of different age of people in tables according to their habits of money investment and their age group also affects their habits of money investment.

I separated the people in the age group of -Group 1:-20-35 yearsGroup 2:- 36-50 years Group 3:-51- above

Table 1 :- age group 20-35 years

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Table 1.1This table no. 1 shows the data of the people who they have the age 0f 20-35 years .This data shows the investment habits of this age group .in this age group generally 70% people invest their money often in banks ,20% of people they invest their money some times in banks and 10% of people don’t invest their money in banks

In other field of investment which is equity contains basically d-mates and i-pos in it self 70% people in the age group of 20-35 invest often in this field. 14% of that people invest some times in this field and 16%people do not invest in this field.

In field of commodity we found that 60% of people invest often their amount of money in the field of commodity and only 10% of people invest their money some times in this field but 30% of people do not invest their money in this field which has been shown in Table 1.1.

Table 1.2

This table no. 1.2 shows the data of the people who they have the age 0f 20-35 years .this data shows the investment habits of this age group .in this age group generally 60% people invest their money often in Mutual funds, 30% of people they invest their money some times in Mutual funds and 10% of people don’t invest their money in Mutual funds.

In other field of investment which is Derivatives contains basically d-mates and i-pos in it self 20% people in the age group of 20-35 invest often in this field . 10% of that people invest some times in this field and 70% people do not invest in this field.

In field of Offshore investment we found that 6% of people invest often their amount of money in the field of Offshore investment and only 10% of people invest their money sometimes in this field but 84% of people do not invest their money in this field which has been shown in table 1.2.

Table 1.3

This table no. 1.3 shows the data of the people who they have the age 0f 20-35 years .this data shows the investment habits of this age group .in this age group generally 80%

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people invest their money often in Life insurance ,12% of people they invest their money some times in Life insurance and 8% of people don’t invest their money in Life insurance

In other field of investment which is General insurance contains basically d-mates and i-pos in it self 68% people in the age group of 20-35 invest often in this field. 6% of that people invest some times in this field and 26% people do not invest in this field.

In field of Others we found that 26% of people invest often their amount of money in the field of Others and only 16% of people invest their money some times in this field but 68% of people do not invest their money in this field which has been shown in table 1.3.

Table 2 :- Age Group 36-50 years

Table 2.1

This table no. 2.1 shows the data of the people who they have the age 0f 36-50 years .This data shows the investment habits of this age group .in this age group generally 92% people invest their money often in banks ,6% of people they invest their money some times in banks and 2% of people don’t invest their money in banks

In other field of investment which is equity contains basically d-mates and i-pos in it self 60% people in the age group of 36-50 invest often in this field . 26% of that people invest some times in this field and 14%people do not invest in this field.

In field of commodity we found that 40% of people invest often their amount of money in the field of commodity and only 36% of people invest their money some times in this field but 44% of people do not invest their money in this field which has been shown in table 2.1.

Table 2.2

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This table no. 2.2 shows the data of the people who they have the age 0f 36-50 years .this data shows the investment habits of this age group .in this age group generally 80% people invest their money often in Mutual funds ,14% of people they invest their money some times in Mutual funds and 6% of people don’t invest their money in Mutual funds.

In other field of investment which is Derivatives contains basically d-mates and i-pos in it self 40% people in the age group of 36-50 invest often in this field. 18% of that people invest some times in this field and 42%people do not invest in this field.

In field of Offshore investment we found that 10% of people invest often their amount of money in the field of Offshore investment and only 5% of people invest their money some times in this field but 85% of people do not invest their money in this field which has been shown in table 2.2.

Table 2.3

This table no. 2.3 shows the data of the people who they have the age 0f 36-50 years .this data shows the investment habits of this age group .in this age group generally 86% people invest their money often in Life insurance ,10% of people they invest their money some times in Life insurance and 4% of people don’t invest their money in Life insurance

In other field of investment which is General insurance contains basically d-mates and i-pos in it self 60% people in the age group of 36-50 invest often in this field . 30% of that people invest some times in this field and 10%people do not invest in this field.

In field of Others we found that 70% of people invest often their amount of money in the field of Others and only 20% of people invest their money some times in this field but 10% of people do not invest their money in this field which has been shown in table 2.3.

Table 3 :- age group51-above Years Table 3.1

This table no. 3.1 shows the data of the people who they have the age 0f 51-above years .this data shows the investment habits of this age group .in this age group generally

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96% people invest their money often in banks ,2% of people they invest their money some times in banks and 2% of people don’t invest their money in banks

In other field of investment which is equity contains basically d-mates and i-pos in it self 20% people in the age group of 51-above invest often in this field . 40% of that people invest some times in this field and 40%people do not invest in this field.

In field of commodity we found that 20% of people invest often their amount of money in the field of commodity and only 16% of people invest their money some times in this field but 64% of people do not invest their money in this field which has been shown in table 3.1.

Table 3.2

This table no. 3.2 shows the data of the people who they have the age 0f 51-above years .this data shows the investment habits of this age group .in this age group generally 50% people invest their money often in Mutual funds ,20% of people they invest their money some times in Mutual funds and 30% of people don’t invest their money in Mutual funds.

In other field of investment which is Derivatives contains basically d-mates and i-pos in it self 20% people in the age group of 51-above invest often in this field . 14% of that people invest some times in this field and 66%people do not invest in this field.

In field of Offshore investment we found that 4% of people invest often their amount of money in the field of Offshore investment and only 13% of people invest their money some times in this field but 83% of people do not invest their money in this field which has been shown in table 3.2.

Table 3.3

This table no. 3.3 shows the data of the people who they have the age 0f 51-above years .this data shows the investment habits of this age group .in this age group generally 60% people invest their money often in Life insurance ,10% of people they invest their money some times in Life insurance and 30% of people don’t invest their money in Life insurance

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In other field of investment which is General insurance contains basically d-mates and i-pos in it self 20% people in the age group of 51-above invest often in this field . 40% of that people invest some times in this field and 40%people do not invest in this field.

In field of Others we found that 83% of people invest often their amount of money in the field of Others and only 4% of people invest their money some times in this field but 13% of people do not invest their money in this field which has been shown in table3.3.

Here we have taken 60 samples through 60 questionnaire and we divided these 60 samples in 3 different age group people in 20 sample eachSo 1 questionnaire is equals to 5 samples

Research findings

The project Money Investment is based on the consumer behavior. Consumer behavior which basically based on the buying behavior. This buying behavior tells about the buying habits of customers. This buying behavior helped us in finding out the buying behavior of customer while doing are direct sales of Reliance Money Products and helped us a lot in gathering the data required for the completion of given project.

This given project Money Investment finds out the investment criteria of general people and helps in finding out the categories that affect investment habits of general people categories those make positive affects on investment habits and categories those make negative affects on investment habits on general people.

This project Money Investment made us aware about the marketing planning, market segmentation and also about the direct sales.

This project Money Investment also addressed us about the marketing management that how to manage the market and marketing.

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At the completion of this project we came to know about the investment habits of people . we came to know that the people of age group of 20 to 35 years often invest their amount of field of

Thinks that make affects on the investment .

Through this we came to know about the thinks that affect the investment habits of people. That’s why they invest their money in their field . these thinks varies with the age group of people . on these thinks few factor makes strong affect. that are these

1. Psychological factors 2. Sociological factors3. Personal factors

age group 1:- 20 to 35 years

for this age of people these are the positive factors which they inspire them to invest their money in the particular field-

In this project we found out that the people of age group of 20 - 35 years invest more in Banks (17.10%people), Mutual Fund (14.86%people) , Life Insurance(15.96%people) & others (13%people).

About the age group of 36-50 years these age group age people invest their money more in mutual funds (14.60%people) ,bank(16.79%people),equity(10.95%people), Others(12.77%people),general insurance(10.95%people),life insurance(15.59% people).

About the age group of 51-above they invest more in banks (24.12%people),Life insurance(21.11%people), mutual fund(12.56%people).

Positive factors :-

Banks – 1. Safe2. Money saving3. Reliable4. No risk5. long term benefits6. Atm’s7. Loans 8. Convenient

Equity-1. High risk2. High profit3. More benefits

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4. Healthy returns5. Less time required

Mutual funds-1. Less risk2. Nice profit3. Systematic plane4. Less money required5. Easy access

Life insurance-1. Life safety2. Risk management3. Reliable4. Less money required5. More beneficial6. Easy access

General insurance-1. Easy access2. Safety

Negative factors:-

Banks-1. No profit in short term2. Less schemes3. Less chances to earn money

Equity-1. High amount2. More time for intra day trading3. Unreliable4. High risk5. High loss6. Market dependence

Mutual funds-1. Market dependence2. Less awareness

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3. Irregular4. Risk

Life insurance-1. Less returns2. Long term

General insurance-1. No returns2. Idleness

These are the causes that affects investment habits of people positively and negativelyalong with this some psychological affects social affects and personal affects also contribute in changing the buying habits like we found that in the age group 1 the people of the age group 20-35 they are not much aware about the equity and they don’t have sufficient amount of money in equity so they don’t invest more in this field. So this comes in personal factors. And in the age group 2 the people of the age group of 35-50 they have sufficient amount of money and awareness about the equity but they don’t want to take the risk so this comes in psychological affects and number of people think about the equity that they can not benefits like others because they don’t have good luck and in age group 3 the people age group 51-above they don’t want to take risk and they believe in safety so this comes in philological and personal effects.

And through this I learnt that how to address the customer and how to full filltheir requirement. I also learned about the marketing planning that how to do marketing planning and we did in project . we planed our project did the project marketing and advertisement through canopies , umbrellas , through contacts, and through mouth

Along with this I sold reliance moneys product in market

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CONCLUSION

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CONCLUSION

For the conclusion of this project I fond that generally people invest their money in in banks, equity, mutual funds , life insurance , general insurance, and in others like real estate.I also found out the percentage of people that how many people invest in which field.

And while investing their money they do mistakes in this so we have come up with mistakes and with the suggestions to remove the mistakes in their field of the investment

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INVESTMENT MISTAKES

Investment mistakes that comes in investment and generally done by people. Here while completing are project we came to know about the mistakes which are done in investment so here we are addressing to some tips that each investor suppose to remember while doing his investment:

SUGGESTIONS

Investment in the stocks of nice repotted companies. Always book your profit Keep safe your documents and documents of profit Diversify of investment Give preference to systematic investment plans Investment Money in mutual fund like fields Keep in touch of professional persons Do those kind of investments that saves your tax Do not think that chip is batter Do not think that temporary is batter Invest money after planning Do not forgot invest after doing it that you have done it Invest in risk free fields

And we have also come up with the suggestions that a company can apply in their marketing planning and in their products

That each and every company of this should take care of their products and they all supposed to less the risk from their products

Along with this they are supposed to take care of the prizing of their products because Indian market is very price sensitive so they must not increase the price of their products with the demand of the product .

Each company supposed to choose the write marketing planning for getting the high profit because if the people will not aware about the product then obviously companies will not high profit out their products

Companies can get the benefits by converting the thinks that makes negative affect on the investment habits of general people in the thinks that makes positive affect on the peoplesInvestment habits.

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Here The objective of the project “Money Investment” is to find out the money investment criterion of public through understanding the marketing planning, consumer behavior ,direct sealing, market segmentation ,marketing communication.

So that the company can came to know about the psychology of the general people that while making the decision for investment of money which factors are considered by the people and also the age factor of the people that effects the decisions of the investment of money .

And these are the rationale of the project

1 .Investment criterion of people

2 .Sales increase

3. Existence in market

4. Less awareness about the market 5. Risk from the competitors

6 To find out the causes which affects the financial market

7. Product differentiation

8. To find out new areas

9. Less awareness about the company in market

10. Advertisement

For getting this objective and for these getting these rationale of the project I reviewed the literature that is required for this project . literature of this project make aware about us about the marketing planning , consumer behavior ,direct sealing, market segmentation ,marketing communication, marketing management.

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BIBLOGRAPHY

REFERENCES ANNEXURE

REFERENCES:-

Books Marketing management -Ramaswami Namakumari

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Sites

www.reliancecapital .com www.reliancemoney.comwww.google.com

ANNEXURE

Questionnaire

Questionnaire:

Dear Respondent,Thank you for taking the time to tell us about your experiences, Q.1) Do you invest money? (1)YES (2) NO

If no then jump to question number (8

Q.2) If yes then where do you invest your money? (1)-BANK (a) Often (b) some times (c) do not invest

(2)-EQUITY (a) Often (b) some times

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(c) do not invest (3)-COMMODITY (a) Often (b) some times (c) do not invest

(4)-MUTUAL FUND (a) Often (b) some times (c) do not invest (5)-DERIVATIVES (a) Often (b) some times (c) do not invest

(6)-OFFSHORE INVESTMENTS (a) Often (b) some times (c) do not invest (7)-LIFE INSURANCE (a) Often (b) some times (c) do not invest (8)-GENERAL INSURANCE (a) Often (b) some times (c) do not invest (9)-OTHERS- ----------------------------------

Q.3) Why this/these particular field only? Ans- ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Q.4) Are you satisfied with your investments?

(1)YES (2) NO

Q.5) If “ yes” why?

Ans- -----------------------------------------------------------------------------------------------------------------------------------------------------------

Q.6) If “ no” why?Ans- -----------------------------------------------------------------------------------------------------------------------------------------------------------

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Q.7) Do you invest your money for long term or short term?Ans- --------------------------------------------------------------------------

Q.8) If no then where would you like to invest your money? (1)-BANK (6)-DERIVATIVES (2)-EQUITY (7)-OFFSHORE INVESTMENTS (3)-COMMODITY (8)-LIFE INSURANCE (4)-MUTUAL FUND (9)-GENRAL INSURANCE (5)-IPO’S (10)-ALL OF ABOVE

Q.9) Why this/these particular field only? Ans- ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Q.10) What other facilities according to you should be provided in your field of investment?

Ans- ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

PERSONEL DETAILS

NAME:-- -------------------------------------------------------------

AGE:- -------------------------------------------------------------

OCCUPATION:-- --------------------------------------------------

CONTACT NO.:-- -------------------------------------------------

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ADDRESS:-- ------------------------------------------------- ------------------------------------------------------------- --------------------------------------------------------------

Tables

Pi-chart tables

Table :-1

NAME PEOPLE(often) PERCENTAGEBanks 70 15.21%Equity 70 15.21%Commodity 60 13.04%Mutual funds 60 13.04%Derivative 20 4.34%Off shore investment 6 1.30%Life insurance 80 17.39%

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General insurance 68 14.78% Others 26 5.68%Total 460 100%

Table :-2

NAME PEOPLE(often) PERCENTAGEBanks 92 17.10%Equity 60 11.15%Commodity 40 7.43%Mutual funds 80 14.86%Derivative 40 7.86%Off shore investment 10 1.85%Life insurance 86 15.98%General insurance 60 11.15% Others 70 13.01%Total 538 100%

Table no.:-3

NAME PEOPLE(often) PERCENTAGEBanks 96 24.42%Equity 40 10.17%Commodity 20 5.08%Mutual funds 50 12.72%Derivative 20 5.08%Off shore investment 4 1.01%

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Life insurance 60 15.20%General insurance 20 5.08% Others 83 21.11%Total 393 100%

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VIJAY PRAKASH JANGID

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