2. INTERNSHIP DETAILS
PREPARED BY :
NAVED HASAN (College Roll – 203)
ACADEMIC GUIDE : PROF. VIJAY ANAND SAH
COMPANY GUIDE : MR. RUPESH GUPTA
PRESENTATION AREA : ST. XAVIER’S COLLEGE
PRESENTATION DATE : 28TH OF APRIL, 2010
3. INTERNSHIP TOPIC
MARKETING OF FINANCIAL PRODUCTS.
A. SHARES (NATIONAL STOCK EXCHANGE)
B. STOCK FUTURES
C. OPTIONS (CALL AND PUT)
D.BULLIONS (MULTI COMMODITY EXCHANGE)
E. AGRO (NATIONAL COMODITY DERIVATIVES EXCHANGE)
F. NIFTY FUTURES
4. SHARES OR STOCK CASH
These represent ownership of a company.
While shares are initially issued by
corporations to finance their business
needs, they are subsequently bought and
sold by individuals in the share market.
They are associated with high risk and high
returns. Shares, stocks, equities and
securities are words that are generally used
interchangeably.
To trade in shares, you have to approach a
broker however, since most stock exchange
brokers deal in very high volumes, they
generally do not entertain small investors.
These brokers have a network of sub-
brokers who provide them with orders.
The general investors should identify a sub-
broker for regular trading in shares and
place his order for purchase and sale
through the sub-broker. The sub/broker
will transmit the order to his broker who
will then execute it.
5. STOCK FUTURES AND OPTIONS (CALL & PUT)
Stock Futures are financial contracts where
the underlying asset is an individual stock.
Stock Future contract is an agreement to buy
or sell a specified quantity of underlying
equity share for a future date at a price
agreed upon between the buyer and seller.
The contracts have standardized
specifications like market lot, expiry day,
and unit of price quotation, tick size and
method of settlement.
Options are rights to buy and sell shares. An
option holder does not actually purchase
shares. Instead, he purchases the rights on
the shares. It is of two types namely Call and
Put Options.
6. BULLIONS AND AGRO
Bullion is the pure form of a precious
Agricultural commodity futures
metal such as gold, silver, copper, or
are market-based instruments for
platinum, from which coin metal alloy
managing risks and they help in
are made. Trading of gold is known as
orderly establishment of efficient
bullion trading. The India Bullion
agricultural markets. Future
market is under the strict supervision of
markets are used to hedge
the Government as bullion is one of the
commodity price risks. . They also
major indicators of the wealth of the
serve as a low cost, highly efficient
country. It is of 3 types :
and transparent mechanism for
discovering prices in the future by
Precious metals providing a forum for exchanging
Base metals information about supply and
Energy demand conditions. The hedging
and price discovery functions of
future markets promote more
India is the leading consumer and efficient production, storage,
importer of gold in the world. Due to marketing and agro-processing
this, the potential of the India bullion operations and help in improvement
market is very promising. in overall agricultural marketing
performance.
7. NIFTY FUTURES (NSE INDEX)
A Nifty Future is a contract to buy If you are entering
or sell the underlying asset for a in future market it is not
specific price at a pre-determined
compulsory that you will have to
time. Thus it is forward contract
liable for receiving any delivery
which is a derivative type of
(in case of commodities). This is
instrument in which buyer and the
seller are agreed to transact set of why futures contracts are known
financial instrument/ Physical as financial instrument.
commodities for future at a Every futures contract has the
particular price i.e. if you buy following constituents:
a futures contract, that means you
promise to buy something that a
Buyer
seller has not yet produced at a
particular price and specific time. Seller
Price
Expiry
8. MARKETING IDEAS
Financial products are characterized by two-way communication and fiduciary
responsibility, in addition to the standard set of four characteristics of services, that is,
intangibility, inseparability, heterogeneity, and perishability. Certain types of financial
instruments also have issues with respect to lack of transparency of performance,
uncertainty of outcome, and poor comparability. In the liberalized era, competition
between organizations and the resultant pressure to maintain profitability were two of
the important factors that led to the marketing orientation. As a result, there was a
shift in marketing practices, especially in product customization, technology adoption,
and customer service.
SOME IMPORTANT IDEAS ARE
1. FACE – FACE INTERACTIONS WITH CUSTOMERS.
2. TELEPHONE CONTACT.
3. SENDING MAILS - COMPANIES NEW PRODUCTS OFFER / MODIFICATIONS.
4. E- MARKETING (ORKUT / FACEBOOK/ CLICKINDIA)
9. CUSTOMER FOCUS IN MARKETING
FINANCIAL PRODUCTS
Various factors influence consumer behavior in purchasing financial products. A
situational approach can be adopted to understand buyer behavior. Specifically,
Beckett's matrix classifies consumers of financial products on the basis of level of
involvement and consumer confidence (which depends on the perceived
uncertainty). Marketing has to be viewed from the perspective of three levels in
an organization -- corporate level, business unit level, and functional level.
Customer service is an important factor that differentiates the product offerings
in the service industry. Service quality can be improved along the dimensions of
tangibles, reliability, responsiveness, assurance, and empathy. Financial product
marketers need to imbibe in them the philosophy of providing quality customer
service in order to increase their profitability. Good customer service and proper
handling of customer complaints pave the way for building lasting relationships.
The corporate brand can be positioned based on various factors such as price,
relationship or service benefit, security benefit, user type, accessibility benefit,
and perceived quality.
Various bases of segmentation are applicable for segmenting consumers.
Financial marketers generally adopt one of the following targeting strategies --
undifferentiated marketing, differentiated marketing, and concentrated
marketing.
10. PRODUCT MANAGEMENT
& CRM CRM is a strategic tool for marketers to
acquire customers, retain them, and
Financial product marketers need to maintain long-term profitable
manage their product portfolio in relationships with them.It uses
response to the changing information technology to achieve these
environment and consumer needs.
objectives.
In addition to managing customer
relationships effectively for achieving CRM has enabled the shift in approach
long-term profitability. from being product-centric to being
customer-centric.
The concept of a product can be
understood in terms of the following CRM helps marketers to cross-sell
four terms - actual product, expected products, achieve long-term profitability,
product, augmented product, and and build the brand.
potential product.
For a financial product, the product
strategy is greatly influenced by
customers, competitors, technology,
and government & legislation.
Depending on these factors, the
product mix strategy could be
product mix expansion, product mix
contraction, and product
modification.
14. Total Response of 800 customers which was
called to provide Free services
320
370
15
35
No Response Not a Trader
Not Interested for Free service Interested for Free service
15. Response of customers (320) who took free service
60
110
25
70
55
Didn't Liked our service Unable to track our service
Charges are high Switched off
Subscribed
16. RESEARCH OBJECTIVES
5. Since it was a telephonic research, it 1. Research was undertaken to
became advantageous to follow up maintain further harmonious
selective telephonic enquiries with relationships with existing and new
personal interviewing in order to customers.
pursue specific lines of enquiry that
are of crucial importance to the
2. It helps in finding, growing and
objectives of the survey.
retaining customers for a long term.
6. Major objective was to understand
3. It helps in improving the services
competitor’s product strategy and
and dealing with ethical problems.
helps in Analyzing pre-longed
strategy for new products.
4. Finally the major objective of
conducting the research study was
7. Research helps in estimating
to understand the dynamic
products demand.
consumer behaviors.
8. Research helps in testing the
efficiency of products performance.
