Invertor’s awareness about sharekhan

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Invertor’s awareness about sharekhan

  1. 1. 1
  2. 2. 2 INDUSTRY OVERVIEW INTRODUCTION Stock exchanges to some extent play an important role as indicators, reflecting to performance of the country’s economic state of health. Stock market is a place where securities are bought and sold. It is exposed to a high degree of volatility; prices fluctuate within minutes and are determined by the demand and supply of stocks at a given time. Stock brokers are the ones who buy and sell securities on behalf of individuals and institutions for some commission. The Securities and Exchange Board of India (SEBI) is the authorized body, which regulates the operations of stock exchanges, banks and other financial institutions. The past performances in the capital markets especially the securities scam by ‘Harshad Mehta’ has led to tightening of the operations by SEBI. In addition the international trading and investment exposure has made it imperative to better operational efficiency. With the view to improve, discipline and bring greater transparency in this sector, constant efforts are being made and to a certain extent improvements have been made.
  3. 3. 3 HISTORY HISTORY OF THE STOCK BROKING INDUSTRY Indian Stock Markets are one of the oldest in Asia. Its history dates back to nearly 200 years ago. The earliest records of security dealings in India are meager and obscure. By 1830's business on corporate stocks and shares in Bank and Cotton presses took place in Bombay. Though the trading list was broader in 1839, there were only half a dozen brokers recognized by banks and merchants during 1840 and 1850. The 1850's witnessed a rapid development of commercial enterprise and brokerage business attracted many men into the field and by 1860 the number of brokers increased into 60. In 1860-61 the American Civil War broke out and cotton supply from United States of Europe was stopped; thus, the 'Share Mania' in India begun. The number of brokers increased to about 200 to 250. However, at the end of the American Civil War, in 1865, a disastrous slump began (for example, Bank of Bombay Share which had touched Rs 2850 could only be sold at Rs. 87). At the end of the American Civil War, the brokers who thrived out of Civil War in 1874, found a place in a street (now appropriately called as Dalai Street) where they would conveniently assemble and transact business. In 1887, they formally established in Bombay, the "Native Share and Stock Brokers' Association" (which is alternatively known as "The Stock Exchange"). In 1895, the Stock Exchange acquired a premise in the same street and it was inaugurated in 1899. Thus, the Stock Exchange at Bombay was consolidated. Thus in the same way, gradually with the passage of time number of exchanges were increased and at currently it reached to the figure of 24 stock exchanges.
  4. 4. 4 DEVELOPMENT An important early event in the development of the stock market in India was the formation of the Native Share and Stock Brokers’ Association at Bombay in 1875, the precursor of the present-day Bombay Stock Exchange. This was followed by the formation of associations /exchanges in Ahmedabad (1894), Calcutta (1908), and Madras (1937). IN addition, a large number of ephemeral exchanges emerged mainly in buoyant periods to recede into oblivion during depressing times subsequently. In order to check such aberrations and promote a more orderly development of the stock market, the central government introduced a legislation called the Securities Contracts (Regulation) Act, 1956. Under this legislation, it is mandatory on the part of a stock exchange to seek government recognition. As of January 2002 there were 23 stock exchanges recognized by the central Government. They are located at Ahmedabad, Bangalore, Baroda, Bhubaneswar, Calcutta, Chennai,(the Madras stock Exchanges ), Cochin, Coimbatore, Delhi, Guwahati, Hyderabad, Indore, Jaipur, Kanpur, Ludhiana, Mangalore, Mumbai(the National Stock Exchange or NSE), Mumbai (The Stock Exchange), popularly called the Bombay Stock Exchange, Mumbai (OTC Exchange of India), Mumbai (The Inter-connected Stock Exchange of India), Patna, Pune, and Rajkot. Of course, the principle bourses are the National Stock Exchange and The Bombay Stock Exchange, accounting for the bulk of the business done on the Indian stock market. While the recognized stock exchanges have been accorded a privileged position, they are subject to governmental supervision and control. The rules of a recognized stock exchanges relating to the managerial powers of the governing body, admission, suspension, expulsion, and re-admission of its members, appointment of authorized representatives and clerks, so on and so forth have to be approved by the government. These rules can be amended, varied or rescinded only with the prior approval of the government.
  5. 5. 5 COMPANY PROFILE It is a Stock Broker: Sharekhan is one of the leading retail broking houses of SSKI GROUP, Which was running successfully since 1922 in the country? It is the retail broking arm of the Mumbai based SSKI GROUP, which has over eight decades of experience in the stock broking business. SHAREKHAN offers its customers a wide range of equity related services including trade execution on BSE, NSE, Derivatives, depository services, online trading, investment advisory, mutual fund advisory etc. The firm’s online trading and investment site www.sharekhan.com was launched on Feb 8 2000. The site gives access to superior content and transaction facility to retail customers across the country. Known or its jargon-free, investor friendly language and high quality research, the site has a registered base of over two lakhs customers. The number of trading members currently stands over 3 lacks. While online trading currently accounts for just over 5 percent of the daily trading in stocks in India, share khan alone accounts for 32 percent of the volumes traded online. About SSKI (Shri Shantilal Kantilal, Ishwarlal pvt. Ltd) group: SSKI groups also comprise institutional broking and corporate finance. While the institutional broking division caters to the largest domestic and foreign institutional investors, telecom and media. SSKI holds a sizeable portion of the market in each of these segments. As the forerunner of investment research in the Indian market, we provide the best research coverage amongst broking houses in India. Our research team is rated as one of the best in The country. Voted for times as the Top domestic brokerage house by Asia-money survey SSKI is consistently ranked amongst the top domestic brokerage houses in India.
  6. 6. 6 Broking… personalized if you prefer the assurance and reliability of trading through a broker, you can use our network of 250 branches and 1200 business partner outlets in over 123 cities to trade in equities as well as derivatives. We will help you with the investment process, give you advice based on extensive research and provide you with relevant and updated information to help you make informed investment decisions. Our trading services are designed to offer an easy, hassle free trading experience, whether you trade daily or occasionally. You will be entitled to a host of value added services, intended to assist you in your investment process depending of your investing style and frequency. CURRENT POSITION VISION To empower the investor with quality advice and superior service to help him take better investment decisions. We believe that our growth depends on client satisfaction. MISSION To provide the best customer service and product innovation tuned to diverse needs of:  Continuous up-gradation with changing technology, while maintaining human values.  Respond to progressive globalization and achieving international standard.  Efficiency and effectiveness built on ethical practices. CORE VALUE  Customer satisfaction through  Providing quality service effectively and efficiently  “Smile, it enhances your face value service quality stressed on periodic customer service Audits.  Maximization of stakeholder value  Success through Teamwork, integrity and People
  7. 7. 7 SHAREKHAN ONLINE TRADING PRODUCTS: (a) Classis Account InvestingOnlineissomucheasier: This account enables you to buy and sell shares through our website. You get features like A) Streaming quotes (using the applet based system) b)Multiple watch lists c) Integrated Banking, Demat and digital contracts d) Instant credit and transfer e) Real-time portfolio tracking with price alerts and, of course, the assurance of secure transactions.
  8. 8. 8 Features of Classic Account: That enables you to invest effortlessly  Online trading account for investing in Equities and Derivatives via sharekhan.com  Integration of: Online trading + Bank + Demat account  Instant cash transfer facility against purchase & sale of shares  Make IPO bookings Click on the images for larger Screenshots  You get Instant order and trade confirmations by e-mail  Streaming Quotes  Personalized Market Scan with your own customized stock ticker!  Single screen interface for cash and derivatives  Your very own Portfolio Tracker!
  9. 9. 9 (b) Trade Tiger Are you an Investor? Get our Classic Account! The Classic Account enables you to trade online on the NSE through our website, gives you access to all our research content and also comes with Dial-n-Trade, enabling you to buy shares using your telephone. Are you a Trader? Get Trade Tiger! Trade Tiger is a next-generation online trading product that brings the power of your broker's terminal to your PC... It's the perfect trading platform for active day traders. Trade using your phone! Dial-n-Trade Free with our Classic Account, Dial-n-trade is an exclusive service for trading shares from your landline telephone or cell-phone. Demat Account Sharekhan Demat Account Our Demat account services are quick, convenient and secure coupled with the Classic Account or Speed trade. We provide standalone Demat services as well.
  10. 10. 10 Get the Trade Tiger advantage: • Live Streaming Quotes • Access all Trading Calls • Advanced Charting features • Create your own technical rules for trading • A Single Trading Screen for BSE & NSE FEATURES OF TRADE TIGER:- A single platform for multiple exchange BSE & NSE (Cash & F&O), MCX, NCDEX, Mutual Funds, IPOs Multiple Market Watch available on Single Screen Multiple Charts with Tick by Tick Intraday and End of Day Charting powered with various Studies Graph Studies include Average, Band- Bollinger, Know Sure Thing, MACD, RSI, etc. Apply studies such as Vertical, Horizontal, Trend, Retracement & Free lines User can save his own defined screen as well as graph template that is, saving the layout for future use User-defined alert settings on an input Stock Price trigger Tools available to gauge market such as Tick Query, Ticker, and Market Summary Online fund transfer activated with 12 Banks
  11. 11. 11 (c) SPEED TRADE: A/C Opening charges: Rs. Nil DEMAT A/C free for first year and Rs.400 from 2nd year onwards. (Annual Maintenance charges).Software downloading.(CASH and DERIVATIVE) Live NSE terminal. Live BSE terminal Access charge is adjustable as per new Speed Trade Pricing Policy. BROKERAGE: - CASH BROKERAGE: - DELIVERY: 0.20%, INTRADAY: 0.02% (Negotiable According To Margin Money) EXPOSURE: - 10 TIMES (ON MARGIN MONEY) F&O BROKERAGE: - 0.02% OTHER FEATURES:- No Demat Transaction Charges in case of buying and selling through Sharekhan. For the fund transfer and withdrawal, we have tie-up with ten BANK'S- - HDFC Bank, - CITI Bank, - IDBI Bank, - UTI Bank, - UBI Bank, - Indus Bank. - Oriental Bank of Commerce -ICICI Bank -Yes bank -Bank of India If you are having bank a/c in one of them, you can transfer the funds and withdraw the funds online from your trading a/c at any time. Along with above following benefits are available:
  12. 12. 12 BTST (Buy today Sell Tomorrow) Online IPO's available. Online Mutual Funds available. Dial -n- Trade facility Document Requirement for Opening an account.  2 passport size photograph  Identity proof (PAN card is compulsory)  Residence proof  Cheque ( Min Rs.5,000 margin balance) Proofs of Identity Customer can submit a photo copy of any one of the following o Voter ID o Passport o PAN Card o Driving License o Photo I card issued by Employer registered under MAPIN o Copy of Ration card Address Proof Customer can submit a photo copy of any one of the following o Voter ID Card o Driving License o Passport o Ration Card o Telephone Bill o Electricity Bill o Bank Passbook o Latest Bank Statement
  13. 13. 13 Sharekhan Research: Receive high performance trading recommendations from Sharekhan yes we boast of strike rates as high as 70-90% in booking recommendations in the money. Our first rule is not to lose money and the second to make some. If you didn’t believe making money was a scientific process and there was a method in the madness we have broken the myth and with consistency. Investment ideas: For investment the application of the bottom-up approach of investing with a clear focus on stock picking has resulted in investment ideas that have withstood the storm to deliver returns to patient investors. Effective money management with appropriate risk rewards, the relentless use of stop losses. And our clear – cut focus on the importance of timing the market accurately has contributed to this success. Trading calls: Trading will never be the same again once you are accustomed to the disciplined trading tools that we provide, that help you to achieve your trading objective of high profits and limited risk. Some of the most unique and customized products are developed to meet your specific needs. We believe that making money involves had work and you need to be brace that’s right a brave heart. Research team: All this is made possible by a team of dedicated analysts who have years of working experience in the industries that they track, and a proven track in using their knowledge of the investment science to deliver results.
  14. 14. 14 Depository services: Sharekhan offers you the convenience of broker – DP. It will help you meet your pay-in obligations on time thereby reducing the possibility of auctions. They understand your need for flexibility therefore they accept late instructions without any extra charge. The instruction immediately on receiving it. You can view your update account statement on internet. Sharekhan depository service offers DEMAT services to individual and corporate investors. We have a team of professionals and the latest technological expertise dedicated exclusively to out DMAT department. You can avail of Demat ‘Remint, Repurchase, Pledge, Transmission facilities at our branch and business partner’s outlets. They have designed product like classic, speed trade and speed trade plus.
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  16. 16. 16 System Requirements You'll need access to a computer which has at least the following configuration: A. Pentium, Minimum 1 GB RAM B. Windows 7/XP/VISTA C. Internet Connection D. Internet Explorer E. Java enabled in IE Area of investment through Sharekhan 1. Derivative 2. Commodity 3. Equity 4. IPO’s ( Initially Public Offer) 1. Derivative Market: Financial markets are, by nature, extremely volatile and hence the risk factor is an important concern for financial agents. To reduce this risk, the concept of derivatives comes into the picture. Derivatives are products whose values are derived from one or more basic variables called bases. These bases can be underlying assets (for example forex, equity, etc.), bases or reference rates. For example, wheat farmers may wish to sell their harvest at a future date to eliminate the risk of a change in prices by that date. The transaction in this case would be the derivative, while the spot price of wheat would be the underlying asset.
  17. 17. 17 Development of exchange – traded derivative: Derivatives have probably been around for as long as people have been trading with one another. Forward contracting dates back at least to the 12th century, and May well have been around before then. Merchants entered into contracts with one another for future delivery of specified amount of commodities at specified price. A primary motivation for pre-arranging a buyer or seller for a stock of commodities in early forward contracts was to lessen possibility that large swings would inhibit marketing the commodity after a harvest. The need for a derivative market: The derivative market performs a number of economic functions. 1. They help in transferring risk from risk adverse people to risk oriented people. 2. They help in the discovery of future as well as current prices. 3. They catalyze entrepreneurial activity 4. They increase the volume traded in market because of participation of risk adverse people in greater numbers. 5. They increase savings and investment in the long run. The participants in a derivative market: The following three broad categories of participants who trade in the derivatives market: 1. Hedgers 2. Speculators and 3. Arbitrageurs Hedgers: Hedgers face risk associated with the price of an asset. They use futures or options markets to reduce or eliminate this risk.
  18. 18. 18 Speculators: Speculators wish to bet on future movements in the price of an asset. Futures and Options contracts can give them an extra leverage; that is, they can increase both the potential gains and potential losses in a speculative venture. Arbitrageurs: Arbitrageurs are in business to take advantage of a discrepancy between prices in two different markets. For example, they see the futures price of an asset getting out of line with the cash price; they will take offsetting positions in the two markets to lock in a profit. Factors driving the growth of financial derivatives: 1. Increased volatility in asset prices in financial markets. 2. Increased integration of national financial markets with the international markets 3. Marked improvement in communication facilities and sharp decline in their costs 4. Development of more sophisticated risk management tools, providing economic agents a wider choice of risk management strategies. 5. Innovations in the derivatives markets, which optimally combine the risks and returns over a large number of financial assets leading to higher returns, reduced risk as well as transactions costs as compared to individual financial assets. 2. Commodity: Although commodity derivatives command a humble share of 6% in the derivatives segment across the world, yet these record high volumes in the markets the world over compared to equity derivatives. In an era where risks to investments are on the rise. India needs to switch to commodity derivatives and also to whether derivatives (when these are launched), if it needs to top the list of developed nations.
  19. 19. 19 Of course with the other asset classes offering attractive returns. “Why commodities”? is the inevitable question that pops in one’s mind today, more so considering that the BSE sensitive index is scaling new highs by the day well, despite offering relatively lower returns, commodity derivatives provided unique money-making opportunities to a wider section of market participants, starting from planters to exporters, importers detail and to the agrarian Indian population commodities are obviously not new, nor are the advantages of trading in them unknown. 1. No balance sheet, P & 1, statement, EBITDA and regarding between the lines Commodity trading is about the simple economics of supply and demand 2. Supports are known, only resistance matters Minimum support price acts as a statutory support for many commodities. 3. No Dollar – Rupee premiums / Discounts no hedging on the NYMEX Indian commodity derivatives hedge both forex and commodity specific risks at a single cost. 4. No breaking of heads over market direction seasonality patterns quiet often provide clue to both short-and long-term players. 5. No scam, no price rigging commodity trading comes with nil insider trading and company specific risk. What’s more, why invite risk by investing in a metal company when you can trade in the metal itself? After all, while the stock price of the company is dependent on several factors Including the company’s own fundamentals, the price of the metal is driven by the simple economics of demand and supply. The more demand for the mental, the higher its price and vice versa. Also compared to equities if is much cheaper to trade in commodities, where margin requirements are lower. Commencement of live trading in commodities: Black Pepper, Castor, Seed, Gold, Gold M. Silver M, RBD Palmolive, Castor Oil, Soy Seed, Refined Soy Oil, Groundnut Oil, Crude Palm Oil, Steel Long, Steel Flat, Copper, Nickel, Tin, Guar seed, etc.
  20. 20. 20 Soy Bean, Refined Soy Oil, Mustard Seed, Expeller Mustard Oil, RBD Palmolive, Crude, Palm Oil, Medium Staple Cotton, Long staple Cotton, Pepper, Rubber, Jute, Chana, Guar, Seeds, Gold, Kilo Gold, Silver, Mega Silver, etc. 3. Equities: Trading accounts With a Sharekhan online trading account you can buy and sell shares in an instant. Any time you want, from anywhere you like. A Sharekhan online trading account comes with a depository participant account where you can keep all your shares, in safe custody with National Securities Depository. You can also like a Sharekhan online trading account to an Internet banking account of your choice, so that you can move cash in and out of this account easily, without the bother of writing Cheque all the time. Sharekhan offers two types of trading accounts to suit your trading habits. Sharekhan account and Sharekhan. Trading services Trading is super-fast, extremely safe and high secure at Sharekhan. Apart from providing the most advanced trading platform in the country, Sharekhan also offers facilities like instant cash transfer, after-market order, limit against shares and four times exposure on margin. Trading products: For timely and accurate “Buy” and “Self” recommendations try our Super-Duper trading products. Depository services: You can open a Depository Participant (DP) account, either through a Sharekhan branch or through a Sharekhan franchisee.
  21. 21. 21 There is no fee for opening a DP account with Sharekhan. However a nominal deposit (refundable) is charged towards services which are adjusted against all future billings. Sharekhan offers dematerialization/ Rematerialisation services to individual and corporate investors.  Dematerialization is the process by which a client can get physical certificates converted into electronic balances maintained in his account with the DP.  Rematerialisation is the process by which a client can get his electronic holdings converted into physical certificates. Sharekhan also offers Pledge facility which enables you to obtain loans against your dematerialized shares. So you get liquidity without having to sell your shares. You can also obtain RBI Relief Bond forms from any of our branches and franchisees present in over 123 cities. Visit our site for more information on RBI Relief Bonds. Content features: At Sharekhan online trading in equities is made easy with the help of jargon-free investment advice. If you experience our language presentation style or content, you will find a common thread – the one that helps you make informed investment decisions and simplifies investing in stocks. Track domestic and international stock incidents with “Indices at a Glance” Get real-time stock quotes live NSE ticker, daily top 5 gainers/losers, volume toppers and more market statistics, all at Sharekhan. Known about the market as it happen through “Live markets”. Keep abreast of the latest news and developments not only in the stock market but also in the world outside with “Live News” brought to you by Reuters. We also have a tie-up with Capital Market News Service for “Archive News”. “Market Commentary” brings you a bird’s eye view of the day’s market. Track the futures market with “Future Commentary”. Tune in to “Punter’s Call” for technical analysis of the market. Have exhaustive data on over 5,000 companies at your fingertip with “All Company Info”. Which stock is on Share khan’s recommendations list? Find answer to this billion dollar question in the “Investment Ideas” section.
  22. 22. 22 New want investing? Join our “School” for a crash course in investing and more. Equip yourself with “Find Company” – an immensely powerful tool that helps you sift through 6,000 companies to home in on only those that meet your stringent fundamental parameters. Keep abreast of all corporate action like board meetings general body meetings bourses splits etc. with “Market Calendar”. 4. IPO’s: An IPO, or Initial Public Offering, is the sale of shares by a company to the public for the first time colloquially, it is said that a company is ‘going public’. How is then that company like ONGC and GAIL, which are already listed, are going for an “IPO” again? The government is the majority stockholder in these companies and it is offering a percentage of its stock now to the public. So strictly speaking, public sector companies that are already listed are not having their ‘IPO’ but they are going for a ‘public offering’ of their shares it’s technical distinction and one that should not bother individual investors. To apply to an IPO you have to fill an IPO application form. These forms are available in stalls outside the stock exchanges and with vendors in various other areas. You can also get an application form through a share broker or investment consultant, if you have one. Else forms are available at various banks. A good idea is to check the Web site of Karvy Consultants (www.karvy.com) who are often registrars or lead managers for issues. The other option is to check the SEBI website (http//www.sebi.gov.in) for the prospectus of a particular IPO. The prospectus lists the lead managers for the IPO and you can get a copy of the application form from their centers. Once you get the form, you have to fill it, remit the amount after calculating the number of shares applied for the bank that is designated in the form as collecting center for that IPO. If you have a Demat account, then you can apply for the shares directly through your Demat account or thee is an option of physical delivery of share certificates.
  23. 23. 23 Some IPO offer only Demat (dematerialized) form of shares, while others offer both Demat as well as regular (physical) shares. SEBI advices investors to get the allotment in Demat forms as the shares in IPO are tradable only in Demat segment in the stock exchanges. Dealing of physical shares (allocated in IPO) is not accepted. When shares are bought in an IPO it is termed primary market. The primary market does not involve the stock exchanges. A company that plans an IPO contacts an investment banker who will in turn called on securities to help, sell the new stock issue. This process of selling the new stock issues to prospective investors in the primary market is called underwriting. When an investor buys shares from another investor at an agreed prevailing market price, it is called as buying from the secondary market. The secondary market involves the stock exchanges and it is regulated by a regulatory authority in India, the secondary and primary markets are governed by the security and exchange board of India (SEBI). Currently, IPOs are being heavily oversubscribed and there are many retail investors applying for the same IPO. In such a situation, there is a high risk that even after applying for an IPO an Individual investor might not get an allotment of the shares. Buying in the primary market does not assure an investor of allotment of shares. There is also a risk that the price of the share may fall within a few days or weeks of the listing. An individual investor needs to take a call on how he thinks the market will behave over the next few months and decide on his/her strategy accordingly. In a bear run, prices usually fall after the stock lists. Hence, it might make more sense to buy in the secondary market. But in a bull run, like the Sensex is experiencing now, prices of the shares are likely to zoom up and so applying during the IPO is the best way to get the share at its cheapest. If you are in the market for the long term this question should not bother you as you would not be looking at profit booking within a few months.
  24. 24. 24 Track record of the promoters: Background and experience of the promoters, the management team and their expertise is one of the main factors that needs to be Considered as they will be ones responsible for the profitability of the company. Studying this point will help investors avoid fly by night promotes and companies. Financials: The Company’s balance sheet is a very important document and investors should look at it carefully. Investors should look at not just the current balance sheet but also that of the last three to four years to get an idea of the company’s growth and focus. Prospectus: Read the prospectus for the company carefully. The prospectus called as red-herring prospectus is a document that every company that goes for a public offering has to file with the SEBI. The prospectus has all the details about the company, the risk factors and the company’s financials. You can get the prospectus for companies going public at the SEBI website http://www.sebi.gov.in/index.jsp? Content Dips= Department & dep_id=1. Issue price: Investors need to decide if the issue is worth investing in at that price. One-way of checking the valuation is to look at the price-earnings (P/E) multiple. The P/E multiple is The ratio of the share price to earnings per share (EPS which is listed in the balance sheet). P/E of the issue should be compared with the industry average and the other companies in the sector. Apart from these three important points other factors like amount to be paid on application, the lead manages for the issue, the stock exchanges that issue plans to list on and the current market sentiment are other factors to watch out for.
  25. 25. 25 Price band comes into play when IPOs are done through a book-building process. IPOs if they have gone for the book-building route will mention a price bank. For instance, Beacon which has declared a price band of Rs. 270 to Rs. 315 per equity share of face value Rs. or ONGC which has set a price bank of Rs. 680-750. Book-building is a mechanism where, during the period for which the IPO is open, bids are collected from investors at various prices which are above or equal to the floor price (the minimum price). The final price of the share is determined after the bid closing date, based on certain evaluation criteria. Individual investors are encouraged to bid at the floor price. When all the bids are received and the final price is decided, those who have got the allotments will have to pay that price, irrespective of the price they had bid on. So price bank indicates the range which the investment bankers think that the share is likely to be priced in. No. if the offer is oversubscribed by a few times then the chances of getting an allotment is high. However, if it is oversubscribed heavily (by over 15 times) then the chances of getting an allotment progressively decrease SEBI uses a lottery system as well as a proportionate allotment formula. The key is to remember that there is no guarantee that you will any shares at all if you apply for an IPO. If you have applied, you can know the status by calling the registrar, whose name will be listed on the prospectus or the application form, after 30 to 40 days from the closing date of the issue. In a book-building issue, you can know the status by calling the registrar after 20 days from the closing date. If you have got an allotment then the share certificates will be mailed to you. Karvy consultants act as registrars to a large number of issues. If they are the registrars you can check the allotment status on their web site.
  26. 26. 26 If you have got an allotment then the share certificates will be mailed to you. You will get a refund 40-45 days from the closing date of the issue. In book-building issue, you will be getting the refund in 30-40 days from the closing date. AWARDS AND ACHIEVEMENT: 8 July 2005, Mumbai: Sharekhan won the award by the vote of consumers around the country, as part of India’s largest consumer study cover 7000 respondents – 21 products and services across 21 major cities. The study, initiated by Awaaz – India’s first dedicated consumer channel and member of the worldwide CNBC Network, and AC Nielsen – ORG, Margi, was aimed at understanding the brand preferences of the consumer and to decipher what are the most important loyalty criteria for the consumer in each vertical. In order to select the award recipient, spontaneous responses, rather than promoted responses were garnered, with an intention to glean unbiased preferences. Opinions were garnered from owners of each of the categories, to get experimental responses, which are likely to be more realistic and grounded in nature. Further, preference also indicates future intentions of repeat purchases. The reasons behind the preferences for brands were unveiled by examining the following.  Tangible features of product / service.  Softer, intangible features like imagery, equity driving preference.  Tactical measures such as promotional / pricing schemes. Sharekhan is honored to be voted as the most preferred stock broking brand in India our focus has always been to demystify the stock market and empower the investors to take informed decisions”, said Jaideep Arora, Director, Sharekhan “The Award increases Share khan’s responsibility to persistently delight our customers with user-friendly trading experience and we shall continue our focus to evolve business strategies that keep us aligned with our customers need
  27. 27. 27 Sharekhan signs on Blue Lotus as communication partner: Mumbai July, 2005 Sharekhan, the retail broking arm of SSKI group, one of the largest stock broking houses in the country, signed on Blue Lotus Communication Consultancy as its communications partner recently. Sharekhan aims to gain a substantial market share through various new initiatives like First step, Platinum Guild & Power Club and communications has been identified as a major marketing initiative by the company. First step, an initiative aimed at demystifying the stock markets to the layperson, provides guidance, knowledge and jargon-free research to help the first time investor take their careful first steps in the stock market. With over a million new investors having entered the stock market over the last year, the product was launched to address the market need to provide structured supervision to the stock market novice. On a fast growth spree, Blue Lotus Communications Consultancy has acquired its 6th client over the last month amounting to an addition of Rs.5 cores to the agency’s capitalized turnover. Speaking on the growth of the company, N. Chandramouli, CEO, Blue Lotus Communications Consultancy said, “The acquisition of the Sharekhan account is extremely prestigious for Blue Lotus. The communication of Sharekhan will be unique since it uses a combination of technology and finance to achieve the objectives of the client. Our strengths have in these sectors have proven to be a dovetail fit for Sharekhan. Founded in October 2002, Blue Lotus has an impressive client portfolio with names like Trend Micro, TWS Holding, Bristlecone, Mahindra Special Services Group, Habitat International Spryance and Johnson & Johnson Acuvue. Having gained these accounts Through aggressive pitches the Rupees Fifteen Crores agency employs 50 people across its 5 offices. “We have always believed that public relations are an essential marketing tool that helps build brand credibility, trust and recall. PR is an essential ingredient in any communications portfolio and
  28. 28. 28 the progressive companies like Sharekhan have recognized this need. We have an aggressive education and awareness campaign linked up for this online stock trading major”, added Chandramouli. INDIAN SCENARIO Background of Exchanges: The stock trading history in India is obscured in the mists of time. Historical records, as and where they exist, rarely speak about business and speculative activity except in passing. However, the origin of stock broking in the country may go back to a time, when shares, denatures and bonds representing titles to property were first issued on the condition of transfer from one person to another and the earliest record of dealings in securities in India is the East India Company’s loan securities, way back in the 18th century. The first stock exchange in India, Bombay stock exchange was established in 1875 as ‘the native share and stockbrokers association’ and has evolved over the year into its present status as the premier stock exchange in the country. It may be noted that BSE is the oldest stock exchange in Asia, even older than the Tokyo stock exchange, which was founded in 1978. The country second stock exchange was established in Ahmedabad in 1894, followed by the Calcutta stock exchange (CSE). CSE can also trace its origin back to 19th century from a get together under a ‘neem tree’ way back in the 1830s; the CSE was formally established in May 1908. India’s other major stock exchange National Stock Exchange (NSE) promoted by leading financial institutions, was established in April 1993. Over the year, several stock exchanges have been established in the major cities of India. There are now 23 recognized stock exchanges – Mumbai (BSE, NSE and OTC), Calcutta, Delhi, Chennai, Ahmedabad, Bangalore, Bhubaneswar, Coimbatore, Guwahati, Hyderabad, Jaipur, Kochi, Kanpur, Ludhiana, Mangalore, Patna, Pune, Rajkot, Vadodara, Indore and Meerut. Today most of the global stock exchanges have become highly efficient, computerized organizations. Computerized networks also made it possible to connect to each other and have fostered the growth of an open, global securities market.
  29. 29. 29 Though Stock Broking was practiced in Calcutta as early as 1836, the members of the broking profession had neither any code of conduct for their guidance, nor any permanent place for congregation. The center of their activity was near a neem three, where at present, stands the offices of the Chartered Bank (now known as Standard Chartered) on Netaji Subhas Road, Calcutta. In 1905, Chartered Bank began to construct their own building which led brokers to shift the arena of their operation, to the neighborhood of the recent Allahabad Bank. The brokers had no shelter and business was carried on in the open place. The inconvenience of such trading, promoted brokers to organize them and in May 1908, an association was formed under the name and style of the Calcutta Stock Exchange Association at 2, China Bazaar Street. At the time of incorporation in 1908, the Stock Exchange had 150 members. Today the total membership has risen to more than 900, which contains several corporate and institutional members. The number of companies listed on the exchange is more than 3,500. The annual turnover of the exchange in 1997-98 was to the tune of Rs.1, 78,779 crores. The Calcutta stock exchange has been granted permanent recognition by the Central Government with effect from April 14, 1980 under the relevant provisions of the securities contracts (Regulation) Act, 1956, with a view to render useful service to investors. In December 1993, SEBI directed the stock exchanges to discontinue the traditional system of carry forward of transactions (badla). Subsequently, it proposed an alternative system in March 1994, but no agreement could be reached on implementing this system. In February 1995, SEBI set up the G. S. Patel Committee (GSPC) to review the system of carry forward transactions. The GSPC submitted its report in March 1995. SEBI adopted the system recommended by the GSPC with some modifications in its decisions of July 27, 1995 and October 5, 1995. This Revised Carry Forward System (RCFS) was implemented in the BSE in January 1996, but the other exchanges in which the traditional carry forward system had been prevalent before December 1993 did not come forward to adopt the RCFS. A year after the implementation of RCFS, the President of the BSE wrote to SEBI in January 1997 requesting a relaxation of certain aspects of
  30. 30. 30 the RCFS to make to more practical and efficient. In its meeting of March 27, 1997, SEBI reviewed the entire sequence of developments relating to the RCFS and specifically noted that while introducing the RCFS in July 1995, SEBI had decided that “the implementation of the revised carry forward system would be reviewed periodically by the Board, the first review being after three months”. BSE Background: The BSE sensitive index (1978, 79-100) has, to a considerable extent, been serving the purpose of quantifying the price movements as also reflecting the sensitivity of the market in an effective manner. The number of companies listed on the Bombay Stock Exchange has registered a phenomenal increase from 992 in the year 1980 to about 3,200 companies by the end of March 1994 and their combined market capitalization rose from Rs. 5,421 crores to around Rs.5,63,748 crores on 31st March 1996. These factors necessitated compilation of a new broad-based index series reflecting the present market trends in a more effective manner and providing a better representation of the increased equity stocks, market capitalization as also the newly emerged industry groups. Towards this end, the exchange constructed and launched on 27th May 1994, two index series viz. the BSE 200 and the DOLLEX. Coverage: The equity shares of 200 selected companies from the specified and non-specified lists of this exchange have been considered for inclusion in the sample for BSE 200. The selection of companies has primarily been done on the basis of current market capitalization of the listed scrips on the exchange. Besides market capitalization, the market activity
  31. 31. 31 of the companies as reflected by the volumes of turnover and certain fundamental factors were considered for the final selection of the 200 companies. Choice of Base Year: The financial year 1989-90 has been chosen as the base year for the price stability exhibited during that year and due to its proximity to the current period. NSE: The 13 year old National Stock Exchange (NSE) has outshined the 130 year old. Bombay stock exchange (BSE) in terms of turnover and volume. The BSE has lost its market share in these segments from 36 percent to 31 percent in the last three years. While, the turnover in BSE stood at Rs. 1,996 crores as on March 24, 2005, the turnover in NSE was Rs.3, 926 crores. The volumes (numbers of shares traded) of NSE at 2.94 crores was also much higher than the volumes of BSE. In the derivatives segment, the NSE is a clear winner. It currently accounts for about 97 percent of the country’s equity derivatives volume. However, the BSE was the first stock exchange in the country to start trading in derivatives segment on June 9, 2000. The NSE has rewritten a number of rules and upset many traditions. As the derivatives segment has immense effect on the cash market, the movement in this segment mostly determines the trend in the market. Against nearly 1,000 companies listed on the NSE, the BSE has nearly 4,800 listed companies despite such a huge number of listed companies; the total market capitalization of BSE is around Rs.17 lakh crores. On the other hand the NSE has a total market cap of Rs.16.7 lakh crores. The most tracked index on NSE, CNX, and Nifty also has more number of stocks than the BSE Sensex. While, the Nifty represents 50 stocks, the Sensex represents only 30 stocks. The presence of more stocks on Nifty also gives a better valuation than Sensex.
  32. 32. 32 Information Flow: Any trading system disseminates data to market constituents, in other words, information is freely available. This has two disadvantages-  It makes easier for off-exchange transactions to occur because of availability of information.  It makes off-exchange transactions attractive due to absence of trading costs. On the other hand rapid flow of information has also meant increased volatility in the markets. In financial terms, volatility is: The degree to which the price of a security, commodity, or market rises or falls within a short-term period. An obvious reason for market volatility is technology. This includes more timely information dissemination, improved technology to make trades and more kinds of financial instruments. The faster information is disseminated, the quicker markets can react to both negative and positive news. Improved trading technology makes it easier to make it easier to take advantage of arbitrage opportunities, and the resulting price alignment arbitrage causes. Finally, more kinds of financial instruments allow investors more opportunity to move their money to more kinds of investments positions when conditions change. Adverse impacts of IT on stock markets: Some other interesting observations about impact of technology on stock markets – 1. The vintage capital model teaches us that technological change destroys old capital. We have gone further and argued that major technological change – like the IT revolution – destroys old firms. It does so by making machines, workers, and managers obsolete. Product-market entry of new firms and new capital takes time, and their stock-market entry takes even longer. In the meantime, the stock market declines. We have argued that aggregate valuation can fall below the present value of dividends because capital, private companies. Later, these companies are IPO’s, and only then does their value become a part of stock-market capitalization.
  33. 33. 33 2. Indeed, the innovation may, at first, reduce the market’s value because some firms, usually large or old, will cling to old technologies that have lost their momentum. (a) The market declined in the late 1960’s because it felt that the old technologies either had lost their momentum or would give way to IT. And (b) IT innovators boosted the stock market’s value only in the 1980’s. To sum up, we can say that computerization and automation are not to be avoided. Technology has been able to make the stock markets accessible to every individual. It has also led to positive developments in terms of reduced costs and fewer errors. But, as some experiences have indicated, IT cannot be applied as a panacea for all problems. Regulation and knowledge dissemination are still important. The use of technology should be proceeding by a detailed study and assessment of all other alternatives. The key to successful use to technology is the appreciation of its constraints
  34. 34. 34 SWOT ANALYSIS Strengths: The do-it-yourself framework of online share trading offers retail investors the three benefits of transparency, access and efficiency. Paperwork diminishes significantly, and no more painful trips to your broker to check if everything’s in order online trading has made it possible to universalize access to retail investors. This was earlier very difficult, as the cost of servicing often-outweighed transaction volumes. Online brokerage ranges between 0.01-0.05 percent of the value of transactions for non-delivery-based traders, and 0.20 percent for delivery- based trades. Once major investments in online infrastructure are over and done with and with the economies of scale coming into play – it is expected that brokerage rates would head further head further downwards. Access to online trading and latest financial happenings, apart from quotes and unbiased investment analyses, all consolidate into a value added product mix in tandem with evolving markets that are freer and fairer. The net result: n inquisitive, informed and demanding investor. Today’s investor is more involved in managing his or her assets and analyzing a vast array or investment options. Technology and today’s enabled investor have, turn, driven competition, resulting in reduced costs of trading, transparency in dealings, and pricing info that is accurate and real time. More and more investors now want to know how their trades are executed, and whether they have received the best possible price. Critical components of execution quality include the prices at which orders were executed as well as the speed of execution. The quality of execution, in turn, hinges on efficient order routing. We owe this to our investor fraternity. Weakness: Everything in the world has a flip has side to it- Transaction velocity is crucial and more often than not, connections are lousy. There’s also a degree of investor skepticism about online payment and settlement mechanisms in spite of all the encryption and firewalling brought into playtime and technology will soon assuage these concerns, which hark back to the ‘physical’ days.
  35. 35. 35 “The three main technology obstacles which have prevented Internet broking from taking off are:  Lack of Internet penetration  Bandwidth infrastructure  Poor quality of ISP infrastructure” Opportunities: You have some money to dabble with trading shares on BSE/NSE has always been your dream. When will you ever find the time? And besides, the hassle of finding a broker is not easy. This is your main opportunity. Realizing there is untapped market of investors who want to be able to execute their own trades when it suits them, brokers have taken their trading rooms to the Internet. Known as online brokers, they allow you to buy and sell shares via Internet. There are 2 types of online trading service discount brokers and full service broker. Discount online brokers allow you to trade via Internet at reduced rates. Some provide quality research, other don’t. Full service online brokerage is linked to existing brokerages. These Brokers allow their clients to place online orders with the option of talking / chatting to brokers if advice is needed. Brokerage rates here are higher. 5 paisa.com, icicidirect.com, indiabulls.com, Sharekhan.com, geojitsecurities.com, hdfcsec.com, tatatdw.com and kotakstreet.com are some of the online broking sites in India. Threats: On to some threat perception – Domestic funds, foreign institutional investors and operators comprise the three main market constituents. And all three include term investors as well as opportunities in their pecking order. Some, for instance, hitch their fate with what the FIIs are up to. All this spells spurting volumes. But nobody gives a damn about the resultant volatility. And some, not all, offer free investment advice over the net to lure rookie investors with misleading information. Prices of scripts can also be influenced to the advantage of vested interests, courtesy the net unlike in the US; stockbrokers out here willingly (or under the force of circumstance) assume the role of advisors, sans the neutral, non-vested stance. So, how does all this impinge on the ordinary guy’s ordinary dreams?
  36. 36. 36 INTRODUCTION OF THE TOPIC Investor Awareness is a term used in investor relations, by public companies and similar bodies, to describe how well their investors, and the investment market in general, know their business. Its significance is that investors are expected to base their investment decisions on awareness and knowledge, and a lack of these may lead to a low profile amongst its peers in the market (i.e. competing businesses and investment opportunities), to the detriment of the business. Investor awareness is knowledge the investment community has of a company. It can be looked at like this: “Do investors know about your company?” If the answer is “yes,” then it could be said that the company has “good investor awareness” which means investors have knowledge of, are conscious of, or have a perception of a company and are very aware of its products and services. If we were to assume that a company has “no investor awareness” or “poor investor awareness,” then the company has probably done a poor job at creating visibility in the investment community and likely no one outside of the company's offices (or friends and family) has knowledge of the company. Awareness is the state or ability to perceive, to feel, or to be conscious of events, objects, or sensory patterns. In this level of consciousness, sense data can be confirmed by an observer without necessarily implying understanding. More broadly, it is the state or quality of being aware of something. In biological psychology, awareness is defined as a human's or an animal's perception and cognitive reaction to a condition or event. Awareness forms a basic concept of the theory and practice of Gestalt therapy. In general, "awareness" may also refer to public or common knowledge or understanding about a social, scientific, or political issue, and hence many movements try to foster "awareness" of a given subject, that is, "raising awareness". Examples include AIDS awareness and Multicultural awareness. Awareness may refer to Anesthesia awareness.
  37. 37. 37 Basic awareness of one's internal and external world depends on the brain stem. Bjorn Marker, an independent neuroscientist in Stockholm, Sweden, argues that the brain stem supports an elementary form of conscious thought in infants with hydranencephaly. "Higher" forms of awareness including self-awareness require cortical contributions, but "primary consciousness" or "basic awareness" as an ability to integrate sensations from the environment with one's immediate goals and feelings in order to guide behavior, springs from the brain stem which human beings share with most of the vertebrates. Psychologist Carroll Izard emphasizes that this form of primary consciousness consists of the capacity to generate emotions and an awareness of one's surroundings, but not an ability to talk about what one has experienced. In the same way, people can become conscious of a feeling that they can't label or describe a phenomenon that's especially common in pre-verbal infants. Due to this discovery medical definitions of brain death as a lack of cortical activity face a serious challenge. Concept Awareness is a relative concept. An animal may be partially aware, may be subconsciously aware, or may be acutely unaware of an event. Awareness may be focused on an internal state, such as a visceral feeling, or on external events by way of sensory perception. Awareness provides the raw material from which animals develop qualia, or subjective ideas about their experience. Self-awareness Main article: Self-awareness Popular ideas about consciousness suggest the phenomenon describes a condition of being aware of one's awareness or, self-awareness. Efforts to describe consciousness inneurological terms have focused on describing networks in the brain that develop awareness of the qualia developed by other networks Neuroscience Neural systems that regulate attention serve to attenuate awareness among complex animals whose central and peripheral nervous system provides more information than cognitive areas of the brain can assimilate. Within an attenuated system of awareness, a mind might be aware of much more than is being contemplated in a focused extended consciousness.
  38. 38. 38 Basic Interests Down the brain stem lie interconnected regions that regulate the direction of eye gaze and organize decisions about what to do next, such as reaching for a piece of food or pursuing a potential mate. Changes In Awareness The ability to consciously detect an image when presented at near-threshold stimulus varies across presentations. One factor is "baseline shifts" due to top down attention that modulates ongoing brain activity in sensory cortex areas that affects the neural processing of subsequent perceptual judgments.[3] Such top down biasing can occur through two distinct processes: an attention driven baseline shift in the alpha waves, and a decision bias reflected in gamma waves. Living systems view. Outside of neuroscience biologists, Humberto Maturana and Francisco Varela contributed their Santiago theory of cognition in which they wrote: Living systems are cognitive systems, and living as a process is a process of cognition. This statement is valid for all organisms, with or without a nervous system.[5] This theory contributes a perspective that cognition is a process present at organic levels that we don't usually consider to be aware. Given the possible relationship between awareness and cognition, and consciousness, this theory contributes an interesting perspective in the philosophical and scientific dialogue of awareness and living systems theory. Communications and information systems Awareness is also a concept used in Computer Supported Cooperative Work, CSCW. Its definition has not yet reached a consensus in the scientific community in this general expression. However, context awareness and location awareness are concepts of large importance especially for AAA (authentication, authorization, accounting) applications. The composed term of location awareness still is gaining momentum with the growth of ubiquitous computing. First defined with networked work positions (network location awareness), it has been extended to mobile phones and other mobile communicable entities. The term covers a common interest in whereabouts of remote entities, especially individuals and their cohesion in operation.
  39. 39. 39 The composed term of context awareness is a superset including the concept of location awareness. It extends the awareness to context features of operational target as well as to context or (?) and context of operational area. How to Create Awareness The best way to create awareness for you company or marketing strategy is to ask yourself a simple question: “what bad things happen to business results for buyers with a particular title (CEO, VP, and so on) in a particular vertical (health care, financial services and so on) or geographic (e.g., North America or Europe) market because they are not offering what you are?” Much how top sales people develop their value proposition, marketing needs to understand this as well. The answers will enable you to create a message crafted in such a way to kill two birds with one stone. It can both generate awareness and increase urgency to act by illustrating the financial impact if the potential buyer does nothing. Human nature is such that people place a higher value on potential loss than on gains (for more on this check out our recent post How to Shorten Your Revenue Cycle). For that reason, it is better to create awareness and start you potential prospects with problems rather than with goals. By being as specific as possible to a target role in a specific industry or region, you will resonate with prospects much better and start to gain mind share. Once you have been successful with taking your prospect from latent need (i.e. something that they did not previously realize that they should be focusing on) to active need (already has the attention/desire to solve the issue) you start to hone in on their buying path that will either end in one of two results:  The buyer takes action and buys from a vendor  The buyer realizes that addressing the issue is too complicated, too expensive, no longer a priority and so on, and therefore does not buy (or postpones it). It’s about Gaining Mind Share At any given time, 3% of your marketplace is in active buying mode, another 7% who would be interested if the right offer came along, and the remaining 90% are just not interested at this time (to learn more check out our blog post “What about the other 97% of buyers?”). For companies that sell disruptive offerings, you may find that the people actively looking near 0%. For disruptive
  40. 40. 40 offerings, the challenge is to make people aware that the offerings exist and have them recognize potential problems that can be addressed by using those offerings. When promoting disruptive offerings (such as a 100% integrated sales and marketing lead generation service), you introduce the product to potential buyers: they may be intrigued and act, but they have not previously allocated budget for it or set up a decision committee because they didn’t know that an item/service was even available. Budget, therefore, must be made available, and to make the sales happen, you must have access to a C level executive who can approve a large investment - often by relocating money by canceling previously funded projects. This is a disruptive sale.For a continuous improvement or replacement offerings (such as an online scheduling program that increases employee engagement), the goal is to have buyers realize the advantages of the new version over older offerings.Whether an offering is disruptive or continuous improvement, targeting people at high levels offers three significant advantages. First, at executive levels, the number of issues that the buyers face decreases in number, but increases in importance. Second, targeting high levels means buyers can find budget for expenditures for which they had not planned.. Finally, generating interest at higher levels generally means shorter sales cycles. The Process Has Changed Years ago, marketing would use some form of broad-reach advertising to create awareness, using print ads, billboards, TV, radio, sponsorships, or some combination thereof. The internet has changed this process drastically.
  41. 41. 41 Here are some examples: Old Method New Term Direct Mail E-mail Seminars Webinars Trade Shows Virtual Trade Shows Print Ads Banner Ads In-Person Networking Events Social Networking Business Response Cards Landing Pages TV Commercials YouTube Videos Radio Ads Podcasts However, one problem is that many marketers are still using the same tactics just with a different tool. By conveying the same-old message with new vehicles, it’s like putting lipstick on a pig, it is still a pig. Faced with over 2000 marketing interruptions per day, buyers start tuning out long ago. Four countless TV and radio channels, publications, podcasts, blogs, ads, direct mail, e-mail, conferences, and events prospective buyers see them and make a snap decision to either discard the message or, on rare occasion, allow it to enter their active stream of thought. It’s marketing’s job to develop messages that enable buyers to connect with their offerings and allow it to gain their mind share. Alignment is Key to Awareness To do an effective job at creating awareness for your product or service, you need to take a step back and spend some time to address each of your offerings:
  42. 42. 42  What titles within an organization would be involved in making the buying decision?  For each title, what business issues that can be addressed by your offering are to the success of that individual?  How can you focus your business development efforts on these issues?  What media are most effective in reaching your targeted titles? Your company’s message is a journey rather than a destination. As market conditions change, new business issues will arise, and others may become less relevant or even drop off the map. The combination of relevant messaging and avoiding the use of new technologies (such as social media) to emulate negative promotional stereotypes should go a long way toward making your business development efforts more productive. It begins with focusing on the issues that your buyers are facing and then giving them a glimpse of how they can solve their problems and how they can use your offerings to help them improve their own business results. Tools Use by Company for awareness of Investor Tele Calling The company uses the tele-calling/ phone calling to reach the customer, which is interested. This is the most important technique to save time and giving demo of the company’s product through making call in order to know the customer interest towards the product. This is the strategy with which one can motivate customer to go for the product and etc. LMS: It is leads management system which means leads are generated by the customer who wants to purchase the product of the company. Company provides facility to the customer on online to fill the registration form through which the company’s executives can provide more information to the customer. 43 Yellow Pages: Yellow pages are used to gather data for making calls so that customer who did not fine time and are unaware of the product can know about the product. Customers are given freedom to ask question related to the products this is the technique used to increase the awareness of the company. .
  43. 43. 43 Competitiveness: The company is innovative and uses the latest technology to improve the product to fulfill the demands of the customers. Sharekhan make it easy for the customer to make online transaction of shares. The company is competitive in terms of the product price and facilities it offers to the customer. Internet: Company provides detailed information about the products on Internet so that customer can know about the product easily and completely. Database Marketing:- At Sharekhan, database marketing is to know the customer; the information is collected and stored in a database from which to conduct database marketing, because a customer database is an organized collection of comprehensive information about individual customer. Direct Mail At sharekhan company sending an offer announcement, reminder or other item to an individual consumer. Using highly selective mailing list, direct marketers send out millions of mail. Some direct marketers mail, CDs, DVDs, and computer disc to prospects and customers. Target Market and Market Prospects At sharekhan company is applying the R-F-M formula (regency, frequency, monetary amount) to select customers according to how much they are capable to purchase demat. Catalogue Marketing At sharekhan, company is sending full line merchandise catalog, specialty consumer catalog, and business catalog usually in print form but also sometimes as CDs, videos or online. Many direct marketers find combining catalogs and web sites an effective way to sell. Interactive Marketing At sharekhan, company is using the internet which provides marketers and customer an opportunity for much greater interaction and individualization.
  44. 44. 44
  45. 45. 45 LITERATURE REVIEW “Strategy of awarenss which defines the general principles for reaching objectives related to the specific SBU’s and target markets. It contains the main directives of the marketing expenditure, marketing actions, and resource allocation in this area. It includes decisions like: segmentation strategies, positioning, and communication. The definition of marketing strategies referring to the marketing plan: it is one of the sections which integrate the marketing plan and its own objective is to present an action plan which will be utilized to reach the marketing plan objectives.”(Camara 1995) JENNIFER BIRCHALL has written an article about “strategy need to be planned effectively to be worthwhile.” In her article, she focused that it is very much important for all the companies those are going for any strategies. She also discussed about the goal of marketing strategy is to make excellent strategy for the new product and the gauge of success is an increase in awareness online and in store about the new product. The gauge of success is not increased sales as that is not the goal of the strategy. It’s important to be clear on goals and the gauge of success. 30 Promotions are part of most small businesses. They range from % off costs to offering a prize to customers and everything in between. Small businesses have specific challenges and their need to be approached differently than those of larger organizations. One of the biggest challenges in small business strategy is working with small budgets. (JENNIFER BIRCHALL, ON NOV. 2, 2009) Kocherp has written an article “Without a marketing plan, your business is going nowhere fast”. In this article, author is discussing about the strategies of small industries, as their purpose is to target a specific market. Small industries, even though are more generic in nature. (Kocherp, on JAN. 2005) Isobel Doole and Robin Lowe in their book “International Marketing Strategy” discussed about building on a four-part framework of market analysis, strategy development, implementation issues and international marketing management. (Isobel Doole and Robin Lowe)
  46. 46. 46 Peter Doyle and Philip Stern. In their book “Marketing Management and Strategy” discussed that it is important to survive in the market if and if the company is watching the strategy of their competitors. (Peter Doyle and Philip Stern) In today’s dynamic world, the importance of good customer service is becoming more and more apparent. With the integration of various services like broking and insurance coupled with industry consolidations, demutualization, shrinking margins, profitability pressures, and new distribution channels, the insurance companies are being forced to rethink their business models for survivals. CRM is revolutionizing the financial services industry. It is the most valuable tool to identify profitable customers and strengthen relationships with them (By Prakash Chandra Joshi (June 1, 2013) The focus of share market is on attracting and retaining customers through cooperation and the sharing of information between measure, customer loyalty is the proportion of times a purchaser chooses the same product or service in a specific category compared to the total number of purchases made by the purchaser in that category. To keep customers loyal they must be satisfied. Satisfaction is a necessary step in loyalty formation and satisfaction becomes less significant as loyalty begins to set in through other mechanisms such as personal determinism and social bonding (By Morgun and Hunt) (1994) The core concept of CRM is to maximize customer satisfaction. It helps to understand the nature of customers, their buying patterns and delivering a product of their choice. It makes the marketing strategies more scientific and goal driven. The strategic driven of an organization helps to identify a successful CRM programmer. CRM suggests companies to reduce the costs of expensive mass marketing efforts and increase results from their CRM efforts. CRM is related to maintain good relations with customers. CRM enables the enterprise to be more competitive. Its main objective is to use a wide set of tools and technologies and adapt various procedures aims at promoting its relationship with the customer. Thus, the concept of CRM is to attract, maintain and enhance customer relationships (By Dr. MVS. Srivinasa Rao) (March 2012),
  47. 47. 47 In an article has made an emphasis on importance of customer in the business of insurance. He explained in phase of growing market competition, there is an intense need to go beyond mere efficiency in designing products. To understand the customer’s needs and to convey what they have to offer would perhaps bring in higher efficiencies in customer service. Insurance business revolves around the customer and fair treatment to customers is need of an hour to win their loyalty and trust. In a service based organizations, customer service is the most dominating feature that differentiate and gives good return to the insurers. Proper dealing with customer complaints, effective customer grievances handling mechanism and fast claim settlement procedure are some of the ways through which satisfaction level of customers can be increased. Hence to serve the customers promptly and effectively is the key success of a life insurance business (By Narayan. H. Jai) (2009), Author Year Definition Drucker 1973 “ Strategic marketing as seen as a process consisting of analyzing environmental, market competitive and business factors affecting the corporation and its business units, identifying market opportunities and threats and forecasting future trends in business areas of interest for the enterprise , and participating in setting objectives and formulating corporate and business unit strategies. Selecting market target strategies for the product-markets in each business unit, establishing marketing objectives as well as developing, implementing and managing the marketing program positioning strategies in order to meet market target needs”. Hart & Stapleton 1977 " a statement in very general terms of how the marketing objective is to be achieved, e.g. acquiring a competitive company, by price reductions, by product improvement, or by intensive advertising. The strategy becomes the basis of the marketing plan"Lambin 1977 “The role of strategic marketing is to lead the firm towards attractive economic opportunities, that is, opportunities that are adapted to its resources and knowhow and offer a potential for growth and profitability” Baker 1984 “the establishment of the goal or purpose of a strategic business unit and the means by which it is to be achieved through management of the marketing function" (by Drucker 1973) Understanding the strategic situation confronting an organization is an essential starting point in developing a marketing strategy” Hamper & 1990 “Although definitions for the term vary, we define marketing Baugh strategy as a consistent, appropriate and feasible set of principles through
  48. 48. 48 which a particular company hopes to achieve its long-run customer and profit objectives in a particular competitive environment” (by Cravens 1986 ) Although marketing has basically an strategic conception of the selling activity, we use to distinguish between strategic marketing and operational marketing, depending on long term or short term objectives. Strategic marketing starts in thoughts about current situation of the company and situational analysis and possible evolution of the markets and the environment, with the goal of detecting opportunities which can establish objectives (Aramario & Lambin 1991) There is no unified definition upon which marketers agree. Instead, there are nearly as many definitions of it as there are uses of the term. Clearly, marketing strategy is a commonly used term, but no one is really sure what it means”. Bradley 1991 " the strategic marketing process, therefore implies deciding the marketing strategy based on a set of objectives, target market segments, positioning and policies" (by Schnaars 1991) “ The primary purpose of a marketing strategy is to effectively allocate and coordinate marketing resources and activities to accomplish the firm’s objectives within a specific product market Therefore decisions about the scope of a marketing strategy involve specifying the target-market segment(s) to be pursued and the product line to be offered. Then, firms seek a competitive advantage and synergy, planning a well-integrated program of marketing mix elements.” (Walker, Boyd, Larreché 1992) “Marketing strategy is mainly indicated by the marketing objectives, customer and competitive perspectives and product/market momentum (i.e. extrapolation of past performance to the future), form the basis of marketing strategy”.......... “Marketing strategy is developed at the business unit level. Within a given environment, marketing strategy deals essentially with the interplay of three forces known as the strategic 3 C’s: the Customer, the Competition and the Corporation. A good marketing strategy should be characterized by a) clear market definition, b) a good match between corporate strengths and the needs of the market and c) superior performance, relative to the competition, in the key success factors of the business. Marketing strategy, in terms of these key constituents, must be defined as an n endeavor by a corporation to differentiate itself positively
  49. 49. 49 from its competitors, using its relative corporate strengths to better satisfy customer needs in a given environmental setting. Based on the interplay of the strategic three C’s, formation of marketing strategy requires the following 4 decisions 1. Where to compete. (Definition of the market). One or various segments… 2. How to compete, that is, it requires a means for competing. 3. When to compete, that is, it requires timing of market entry. “In its strategic role, marketing focuses on a business’s intentions in a market and the means and timing of realizing those intentions. The strategic role of marketing is quite different from marketing management which deals with developing, implementing and directing programs to achieve designated intentions. To clearly differentiate between marketing management and marketing in its new role, a term - strategic marketing. - has been coined to represent the latter”.( Jain 1993) “Strategy which defines the general principles for reaching objectives related to the specific SBU’s and target markets. It contains the main directives of the marketing expenditure, marketing actions, and resource allocation in this area. It includes decisions like: segmentation strategies, positioning, and communication. The definition of marketing strategies referring to the marketing plan: it is one of the sections which integrate the marketing plan and its own objective is to present an action plan which will be utilized to reach the marketing plan objectives.”(Camara 1995) The term “marketing strategy” reflects the company’s best opinion as to how it can most profitably apply its skills and resources to the marketplace. It is inevitable broad in scope. Marketing strategies are the means by which a company achieves its marketing objectives and are usually concerned with the 4 p’s. Strategic marketing means looking at the whole of a Company’s portfolio of products and markets, and managing the portfolio to achieve the company’s overall goals” Bradley 2003 a marketing strategy consists of an internationally integrated but externally focused set of choices about the organization addresses its customers in the context of a competitive environment. (McDonald1999)
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  51. 51. 51 OBJECTIVES There is always a purpose of every research study. Main objective  The study of investor’s awareness about sharekhan Sub Objective  To study of investors satisfaction level regarding sharekhan service  To knowing the role of marketing strategy for awareness of investor. RESEARCH DESIGN A Research Design is the framework or plan for a study which is used as a guide in collecting and analysing the data collected. It is the blue print that is followed in completing the study. The basic objective of research cannot be attained without a proper research design. It specifies the methods and procedures for acquiring the information needed to conduct the research effectively. It is the overall operational pattern of the project that stipulates what information needs to be collected, from which sources and by what methods. Research : Research is a process of steps used to collect and analyze information to increase our understanding of a topic or issue. It consists of three steps: Pose a question, collect data to answer the question, and present an answer to the question In the broadest sense of the word, the definition of research includes any gathering of data, information and facts for the advancement of knowledge. Research in more detail as "a studious inquiry or examination; especially : investigation or experimentation aimed at the discovery and interpretation of facts, revision of accepted theories or laws in the light of new facts, or practical application of such new or revised theories or laws". Research Design used: Descriptive research design is used in this research, is used to describe characteristics of a population or phenomenon being studied. It does not answer questions about how/when/why the characteristics occurred. Rather it addresses the "what" question (What are the characteristics of the
  52. 52. 52 population or situation being studied the characteristics used to describe the situation or population are usually some kind of categorical scheme also known as descriptive categories. For example, the periodic table categorizes the elements. Scientists use knowledge about the nature of electrons, protons and neutrons to devise this categorical scheme. We now take for granted the periodic table, yet it took descriptive research to devise it. Descriptive research generally precedes explanatory research. Sampling and Techniques SAMPLING Sampling refers to the method of selecting a sample from a given universe with a view to draw conclusions about that universe. A sample is a representative of the universe selected for study. Convenience sampling is used in exploratory research where the researcher is interested in getting an inexpensive approximation of the truth. As the name implies, the sample is selected because they are convenient. This non probability method is often used during preliminary research efforts to get a gross estimate of the results, without incurring the cost or time required to select a random sample. SAMPLE SIZE The sample size for the survey conducted was 100. SAMPLING TECHNIQUE Convenience sampling technique was used in the survey conducted Sampling Area: The area of the research was Panipat.
  53. 53. 53 COLLECTION OF DATA The study was conducted by the means of personal interview with respondents and the information given by they were directly recorded on questionnaire. For the purpose of analyzing the data it is necessary to collect the vital information. There are two types of data, this are-  Primary Data  Secondary data PRIMARY DATA:-  Questionnaire  Meeting with existing and new customers  Survey SECONDARY DATA:- Secondary data means data that are already available i.e. they refer the data which have already been collected and analyzed by someone else. When the researcher utilizes secondary data, than he has to look into various sources from where he can obtain them, in this case he is certainly not confronted with the problems that are usually associated with the collection of original data. Secondary data may either be published data or unpublished data. Usually published data are available in: The main source of information for the project was  Weekly magazine;  Internet  Newspapers
  54. 54. 54 Tools for analysis Graphical tools: Graphical tools used are Pie chart Bar diagram Statistical tools: In statistical tool chi square tool is used. C h i -Square O n e way ANOVA CHI – SQUARE TEST: The chi – square test is an important test amongst the several test of significance developed by statisticians. Chi – square (Pronounced as chi-square), is a statistical measure used in the context of sampling analysis for comparing a variance to a theoretical variance. As a non- parametric test, it “can be used to determine if categorical data shows dependency or the two classifications are independent”. Thus, the chi – square test is applicable in large number of problems. The formula used for chi – square is, 2 = Σ (O – E) 2/ E Where, O – Observed frequency, E – Expected frequency, ANALYSIS OF VARIANCE (ANOVA): Analysis of variance (abbreviated as ANOVA) is an extremely useful when multiple sample cases are involved. Using this technique, one can draw inferences about whether the samples have been drawn from populations having the same mean. Variance is an important statistical measure and is described as the mean of the squares of deviations taken from the mean of the given series of data. It is frequently used measure of variation.
  55. 55. 55 LIMITATIONS Services of SHAREKHAN: We cannot give proper comment on competitor’s services till we use it. But I try to collect as accurate information as possible. As we all know services are intangible and we cannot predict its quality, it is a thing to feel not to see. No Proper Assurance of Right Information: The main data sources are websites, telephonic information and offices visit.  The data on websites might be possible, not get updated.  The marketing person might be possible, is not through with all concepts to which I contacted.  Sometimes, they try to hide information. Lack of Techno Savvy People and Poor Internet Penetration: Since most of the people are quite experienced and also they are not techno savvy. Also Internet penetration is poor in India. Some respondents are unwilling to talk: Some respondents either do not have time or willing does not respond, as they are quite annoyed with the phone call. Inaccurate Leads: Sometimes leads are provided which had error in it which varies from only 5 digit phone numbers to wrong phone number.
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  57. 57. 57 DATA ANALYSIS Q. 1. Age group of surveyed respondents? Age group No. of Respondents 18 - 25 years 52 26 - 35 years 23 36 - 49 years 15 50 - 60 years 10 More than 60 years 5 TABLE 4.1: Age Group of Surveyed Respondents. Figure 4.1 Age group of surveyed respondents. INTERPRETATION: From the above chart we find that 52% of the respondents fall in the age group of 18 – 25 years, 23% fall in the age group of 26 – 35 years and 15% fall in the age group of 36 – 49 years. Therefore most of the respondents are relatively young (below 26 years of age). 0 10 20 30 40 50 60 18-25 26-36 36-49 50-60 more the 60 52 23 15 10 5 Noofrespondent Option Age group of surveyed respondents ?
  58. 58. 58 Q2. Gender Classification of Surveyed Respondents? Particulars No. of Respondents Male 60 Female 40 Table 4.2 Gender Classification of Surveyed Respondents Figure 4.2: Gender Classification of Surveyed Respondents INTERPRETATION: From the above chart we find that 60 male respondents. And 40 female respondents .In these we can analysis the female member is less aware in regards of Brokerage Company 60 40 0 10 20 30 40 50 60 70 Male Female Nopfrespondent Option Gender Classification Of Surveyed Respondents
  59. 59. 59 Q 3. Customer Profile of Surveyed Respondents TABLE 4.3 Customer Profiles of Surveyed Respondents. Figure 4.3 Customer Profiles of Surveyed Respondents INTERPRETATION: From the above chart it can clearly be seen that 45% of the respondents are working professionals, 20% are students and 48% are into business. Therefore the target market would be working individuals in the age group of 18 – 25 years having surplus income, interested in good returns on their investment. 0 10 20 30 40 50 Student House Wife Working Professional Busniss Self Employed Government Serive Employe 20 3 45 14 12 6 option Customer Profile of Surveyed Respondents Customer profile No. of respondents Student 20 Housewife 3 Working Professional 45 Business 14 Self Employed 12 Government service employee 6
  60. 60. 60 Q 4. Do you invest in stock market? Options No of respondent Yes 60 No 40 Table 4.4 to know in which area people are interested to doing investment. Figure4.4 (To know about the interest of people in share market) Interpretation: From the above chart we can conclude that there are 60% peoples are doing investment in stock market and 40% peoples are not doing investment in stock market. According to this survey we can conclude that most of the people invest in stock market. 0 20 40 60 Yes No 60 40 No.ofrespondent Option Do you invest in stock market?
  61. 61. 61 Q 5. If yes, from which brokerage house you do trading? Option No. of Respondent India bulls 8 Angel 20 Shah investors 12 Sharekhan ltd. 33 Others 7 Table4.5 to know which company has taken priority place in Customers mind. Figure 4.5 to know which company has taken priority place in Customers mind. INTERPRETATION: We can know from above chart that most of the peoples are doing trade from Sharekhan as 36% and 29% from angel, 16% from India bulls, 12% from shah investment, 7% from other private sub brokers. 0 10 20 30 40 India bulls Angel Shah investors sharekhan other 8 20 12 33 7 Noofrespondent Option If yes, from which brokerage house you do trading?
  62. 62. 62 Q 6. Have you ever heard about Sharekhan broking firm? Options No of respondent Yes 61 No 39 Table 4.6 to know how many people aware with Sharekhan ltd Figure 4.6 (To know how many people aware with Sharekhan ltd) Interpretation: From the above graph we can conclude that 61% peoples are aware with the Sharekhan ltd and 39% are not. Most of the persons are aware about the sharekhan. 61 39 Have you ever heard about Sharekhan broking firm? Yes No
  63. 63. 63 Q 7. From which source you come to know about Sharekhan? Options No of Respondent Canopies 20 Internet 45 Newspaper 25 TeleCalling 10 Table 4.7 to know about which is more effective marketing strategy for awareness of the sharekhan. Figure4.7 to know about which is more effective marketing strategy for awareness of the sharekhan. Interpretation 20 % customers know about Sharekhan Company from their Canopies. 45% customer knows about Company from their website. 25% customers know about from their newspaper. 10% customer knows about Sharekhan Company from their newspaper. Most customers know about Sharekhan Company from their internet. 20 45 25 10 Canopies Website Newspaper Tele Calling Noofrespondent Option If you heard about share khan then where you know about Sharekhan?
  64. 64. 64 Q 8. What drives you toward Sharekhan? Option No of Respondent Company Reputation 20 . Company Marketing 40 Company services 30 All of above 10 Table 4.8 to know about driving fours toward of sharekhan. Figure: 4.8 to know about driving fours toward of sharekhan Interpretation: we interpret that 40 % of the people drive toward the company by company marketing. 20% of the people drive toward the company by company reputation and 30% of the people drive toward the company by company services. According to this survey we can assume that company has an effective marketing strategy. 0 10 20 30 40 Company Reputation Company Marketing Company Services All of Above 20 40 30 10 AxisTitle Axis Title No. of Respondent
  65. 65. 65 Q.9 what communication channel does Sharekhan should rely? Mode of communication No of respondent Public relation 15 Sales Promotion 40 Direct mail 12 Internet 33 Total 100 Table: 4.9 To Know The Confidence Level That Sharekhan Can Impose In The Communication Channels. Figure: 4.9 To Know The Confidence Level That Sharekhan Can Impose In The Communication Channels. Interpretation: Communication is one of the important activities which an organization should act efficiently. Most of the respondent replied that sales promotion is an important way of communicating. Around 40% respondent comes under this category. Another 33% respondent said that internet is another way of communication. Series 1 0 20 40 Public relaotionship Sales Promotion Direct Mail Internet 15 40 12 33 Series 1
  66. 66. 66 Q.10 Are you happy with the services provided by Sharekhan? Services No of respondent Excellent 45 Good 47 Average 8 Poor 0 Total 100 Table 4.10 to know the response to the customers towards sharekhan. Figure: 4.10 To Know The Response To The Customers Towards Sharekhan. Interpretation Service is most important for a company to sustain in the competitive market. It also helps the company to growth and expansion. Around 47% respondent replied that service provided by Sharekhan is excellent. Around 47% respondent said that Service provided Sharekhan is good. Not a single respondent said that sharekhan service is poor. So we can say that sharekhan is providing a very competitive service. 0 10 20 30 40 50 Excellent Good Average Poor 45 47 8 0 No of respondent
  67. 67. 67 Importance No of respondent Crucial 37 Important 23 Average 32 Not much importance 8 Not important at all 10 Q. 11 How important are marketing and promotional strategies for sharekhan? Table: 4.11 to Know the Importance of Marketing and Promotion Strategy of Sharekhan Figure: 4.11 to Know the Importance of Marketing and Promotion Strategy of Sharekhan Interpretation: Among the respondent who feel that marketing is crucial and average for sharekhan are 37% and 32% respectively. The percentage of respondent who feel that marketing is important is 23%. According to these respondent marketing is one of the necessary steps for company’s growth. Crucial Important Avrage Not much important Not important at all 37 23 32 8 Noofrespondent Option How important are marketing and promotional strategies for sharekhan?
  68. 68. 68 Q. 12 Sharekhan is able to capture the market. Rate it according to the below given range. Market share No of respondent >90% 0 60%-89% 36 30%-59% 41 <30% 23 Total 100 Table: 4.12 to Know the Market Share of Share Khan Figure: 4.12 to know the market share of share khan Interpretation: This question is all about to know the customer view regarding the market capture by sharekhan. Around 40% customer replied that company is having market share in the range of 30%-59%. And 36% customer replied in the range of 60%-89%.
  69. 69. 69 13) Do you have an account on following Social Networks? Social Network No of respondent Percentage of respondent Face book 28 28% Linked 35 35% Twitter 19 19% YouTube 18 18% Total 100 100% Table: 4.13 To know about the awareness and interaction of people toward the internet 18% 28% 19% 35% Face book Linked‐ in Twitter Youtube Figure:4.13 To know about the awareness and interaction of people toward the internet Interpretation: The last question was designed in order to find out how the respondents are active in communication via Internet by using modern communication channels for social networking and peer-to-peer communication. Approximately 35% respondents were Linked-in users. 28% were face-book users. 19% and18% respondents were twitter and YouTube users respectively.
  70. 70. 70 Q.14 Do you think that internet has played a major role for sharekhan in marketing? Internet for marketing No of respondent Yes 70 No 30 Total 100 Table: 4.14 to know the role of internet in marketing of sharekhan Figure :4.14 To know the role of internet in marketing og sharekhan Interpretation: Now a day’s internet is one of the main medium for success of any kind of business. Internet helps every organization to run their business systematically. When we talk about marketing, it is useful for every organization. Internet marketing is one of the very advanced methods. Here around 88% respondent feels that internet has played a very major role sharekhan in marketing’s 0 10 20 30 40 50 60 70 Yes No 70 30 Noofrespondent Option Do you think that internet has played a major role for sharekhan in marketing?
  71. 71. 71 DATA ANALYSIS BY USING STATISTICAL TOOLS: Chi-square (x2): The formula used for chi – square is, 2 = Σ (O – E) 2/ E Where, O – Observed frequency, E – Expected frequency, From the survey report of sample size 100 persons we come to know about the people who think that internet has played a major or not for marketing at sharekhan. Here also we come to know about the major competitor viz. small firms, medium firms and big firms. Table:4.14 Small firms Medium firms. Big firms Internet 30 25 15 70 No internet 20 5 5 30 Total 50 30 20 100 On the basis of the data in the table it can be concluded that there is significant difference in among the customer that internet has played a major role or not for marketing at Sharekhan.
  72. 72. 72 = DATA ANALYSIS: Null Hypothesis ( H0 ): There is no significant difference among the customer that internet has played a major role or not for marketing. Alternative Hypothesis (H1): There is significant difference among the customer that internet has played a major role or not for marketing. β11 β12= The table of expected frequencies shall be as follows: Table:4.14 35 21 19 70 15 9 1 30 50 30 20 100 Table4.14 Applying x 2 tests: O E (O-E)2 (O-E)2/E 30 35 25 .714 10 15 25 1.66 25 21 16 .762 5 9 16 1.778 15 19 16 .842 5 1 16 16 21.756
  73. 73. We know that 2 = ∑ = 21.756 And Degree of freedom (v) = (r – 1) (c – 1) = (2-1) (3-1 = 2 For V=2, 2 0.05 =5.99 Interpretation: The calculated value of 2 is greater than the table value. Hence the Null Hypothesis is not accepted. We accept the Alternative Hypothesis. Therefore there is significant difference among The customer that internet has played a major role or not for marketing at sharekhan.
  74. 74. 74 Anova Test: The analysis of variance is known as ANOVA. The specimen of ANOVA table is given below: ANOVA TABLE: 4.13 One- way Classification Model Source of variation SS (Sum of Squares) υ Degrees of freedom MS (mean square) Variance ratio of F Between samples SSC n1=c-1 MSC = SSC/c-1 Within samples SSE n2=n-c MSE = SSE/n-c MSC/MSE TOTAL SST n-1 Where SST= Total sum of squares of variations SSC= Sum of squares between samples (columns). SSE= Sum of squares within samples (rows). MSC= Mean sum of squares between samples. MSE= Mean sum of squares within samples. Now let us take 4 samples from the data collected against the questionnaire. Sample1 (X1): Importance of Marketing and Promotional activity Sample 2 (X2): Communication channel should use by the company. Sample3 (X3): Market share captured by the company. Sample4 (X4): Customers having social network.
  75. 75. 75 And let the hypotheses be, Ho: there is no significant difference between the mean values of the samples, i.e. the samples could have come from the same population or universe. H1: there is significant difference between the mean values of the samples, i.e. the sample could have come from different populations or universes. Table: 4.13 Sample 1 (X1) Sample 2 (X2) Sample 3 (X3) Sample 4(X4) 37 15 0 50 23 40 36 30 32 12 41 20 8 33 23 10 ∑X1= 100 ∑X2= 100 ∑X3= 100 ∑X4= 100 X1m = 20 X2m = 25 X3m = 25 X4m = 33.33 Now grand mean, Xmm = (20+25+25+33.33)/4 = 25.83 Variance between samples: In order to calculate the variance between samples we construct the following table. Table: 4.13 Sample 1 (X1m-Xmm)² Sample 2 (X2m-Xmm)² Sample 3 (X3m-Xmm)² Sample 4 (X4m-Xmm)² 33.64 .64 .64 56.7 33.64 .64 .64 56.7 33.64 .64 .64 56.7 33.64 .64 .64 33.64 ∑=168.2 ∑=2.56 ∑=2.56 ∑=170.1
  76. 76. 76 Sum of squares between the samples = 168.2+2.56+2.56+170.1 = 343.42 Mean sum of squares between the samples is= 343.3/ (4-1) =114.47 Variance within the samples: In order to find out variance within the samples we construct the following table below. Table:4.13 Sample 1 Sample 2 Sample 3 Sample 4 X1 (X1- X1m)² X2 (X2- X2m)² X3 (X3- X3m)² X4 (X4- X4m)² 37 289 15 100 0 625 50 277.55 23 9 40 225 36 121 30 11.09 32 144 12 169 41 256 20 177.69 8 144 33 64 23 4 10 100 Σ= 686 Σ= 558 Σ= 1006 Σ= 466.33 Total sum of squares within the samples= 686+558+1006+466.33 = 2716.33 Mean sum of squares within the samples= 2716.33/ (16-4) = 226.36 All the above results can be tabulated as follows: Table: 4.13 Source of variation Sum of squares Degrees of freedom Mean Square Between samples 343.42 3 114.47 Within samples 2716.33 12 226.36 TOTAL 3059.75 15
  77. 77. 77 Now, F= variance between samples/ variance within samples = 114.47/226.36 = 0.5057 = 0.51 The table value of F for n1=3 and n2= 12 at 5% level of significance =8.7446 Interpretation: Since the calculated value of F is less than the table value and hence the difference in the mean values of the sample is not significant, i.e. the samples could have come from the same area or universe.
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