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relationship marketing in apital market


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relationship marketing in apital market

  2. 2. DECLARATION I, Supriya Ashok Pawar student of Masters of Management Studies (Semester III) of BabasahebGawde Institute of Management Studies (BGIMS), hereby declare that I have successfully completed this project on Relationship Marketing in Capital Market ,as a part of my „Summer Internship‟. The information incorporated in this project is true and original to the best of my knowledge. ____________________________________ Signature 2
  4. 4. ACKNOWLEDGEMENT I would like to thank the management of Keynote Capitals limited for giving me an opportunity to do my summer project. For making me adjust to the company‟s working environment and providing me the knowledge to perform.Theoretical knowledge acquires through reading, hearing or discussion can be confirmed through practical knowledge only and this opportunity provided the practical experience. I extend my heartfelt gratitude to Mr .KevalBhanushali, Head of retail Equity for giving me this opportunity. I would also like to thank my mentor Mr. VikasVishwakarma– Manager for his guidance, for extending a helping hand throughout my project. I am also grateful to the team of Keynote capitals limited for helping me with the project. Heartfelt thanks to the entire family ofKeynote capitals Solutions. I also acknowledge my sincere gratitude to Professor C.S.Balasubramaniamfor his guideline & constant support for completion of the project. 4
  5. 5. INDEX Serial No. Contents Page No. 1. Executive Summary 6-7 2. Company profie 8-14 3. Objectives 4. Introduction 16-24 5. Research Methodology 25-30 6. Analysis of Data 31-60 7. Observations 61-62 8. Limitations 63 9. Suggestions 64 10. Conclusions 65 11 Recommendations 66 12. Annexure 13. Bibliography 15 67-69 70 5
  6. 6. EXECUTIVE SUMMARY The Present business scenario is totally consumer oriented. Every company faces stiff competition from its competitors, each provides the best product at competitive rates. As a result customers have lot of choices to get the best with the least cost. To face this competition, it is very important to know customer‟s behavior, there needs, preference and also the motivation factors. My Project was on “Relationship Marketing of Financial Products” Dealing in the financial product to know the Motivational &demotivational factors of the client so as to cater the needs in most appropriate manner. It will help business to expand its network & also its services. Keynote capitals Limited Provide its Expert service in Capital market Operations to institutional Investors. Company is a Member of National Stock Exchange as well as Bombay Stock Exchange. Keynote is slowly but steadily gaining market share and goodwill in the Market. Its strategies for marketing its services as well as developing a good Relationship Marketing with its client has given an edge over the other service providers. This project also throws lights on the working frame of broking service. This industry is on the spree to adopt the latest technology and thus any player has to be dynamic in this industry. The comparative analysis done in this project show how keynote has built competitive edge on some ground. The Project help you understand the strategies of this industry right from De-Mat to Trading, Margin to analysis and risk to return. I hope this project prove to be beneficial for the Company and also give the reader a through idea about the industry. I learnt a lot through out the process of undertaking this project report. 6
  7. 7. To fulfill my task I had to visit the client personally who are dealing in share trading with this company or some other broking house. For this project I was assign the target of accounts, for which I first generated the database and made appointment with them and convert them in as traders of keynote Capitals Limited, for this I have to convince them and explain the concept and collect the Trading Form and a cheque. After going through the exercise I found that Keynote is one of the upcoming companies in the Marketing of financial Product, as the credibility of other companies are going down in the market and it is the right time for the Keynote Capitals to built its reputation in the market. The Main reason for Keynote capitals low market share is because of local brokers in the market which a charging very less Margin as initial investment for Trading in Stock Market. But No doubt it is having lots of scope to grow in the financial Market, and I wish it is having a shining future in the coming years. 7
  8. 8. Company profile Company name: Keynote Corporate Services (KCSL) SEBI approved. Private limited: 1993 Public limited: promoters : 1993 Madhu Prasad and H R Hemnani. Both of( have over ten years experience in merchant banking ) Highlights: No.1-merchant banker  obtained membership of the OTCEI, which will be subsequently transferred to its subsidiary.  KCSL is one of the few merchant bankers to be permitted by SEBI to undertake portfolio management services.  It is ranked third among the private merchant bankers and ninth overall. Activities:merchant banking, leasing, hire purchase, portfolio management, corporate advisory services, mergers and acquisitions, syndication of loans, private placements, corporate finance, etc. KCLS clients: Jardine Fleming, ATCO Industries, Snowcem (India), Sanghi Industries, Rolta, the Madhumilan group, SUL, Majestic Auto, Siddhartha Tubes, A P Power Tools, Pittie Cement and Industries, Sunrise, Alchemie Organics, Binani Zinc, etc. 8
  9. 9. Keynote Capitals Limited Company Name:Keynote Capitals Limited ( subsidiary of Keynote Corporate Services Limited (KCSL)). public limited: 8th May 1995 as Public Limited Company with the mandate of carrying out .stock broking in the Indian capital markets products: entire range of products on the stock markets: trading facilities on the Bombay Stock Exchange, National Stock Exchange, Future and Options Markets and Commodity Markets Highlights: The Largest Investment Bank in The Mid-Market Segment. Ranked NO.6 Deal maker For the Year 2003-2004 By The Economics Times. Ranked No. 2 Merchant Bank in 2007 In terms Of Right Issues Handled- Prime database. India‟s best IPO Analyst Award 2009 –MCX-Zee business. Ranked No. 1 Merchant bank in 2009 in terms of public And Right issues-Prime database. Advised And Lead Managed Over 150 IPO‟s till date. 9
  10. 10. KITE Keynote provides customer Online Trading Platform KITE, trading in Equities & Derivatives has been simplified and easily accessible to all with a click of a button on desktop. Product and Features-KITE- Keynote Internet Trading Engine Simplified Trading Interface High speed trading Integration of Multiple Exchanges On Single Platform Call and Trade Speed Similar To A brokers Terminal 24X7 Web Enabled back Office Immediate order Status and Confirmation Intraday and Other Calls Live charting Integrated IPO and Mutual Fund Advanced charting 10
  11. 11. Organization Structure National Sales and Marketing Head Vice President-Investment Vice President-Sales Assistant Vice President-Investment Assistant Vice President-Sales Zonal manager investment Regional Sales Head Senior Investment manager Branch Manager Manager Investment Team Leader Relationship Manager Relationship executives 11
  12. 12. . KEYNOTE CAPITALS Capital markets Research Primary Market Group Identification Of Potential Secondary Market Group Indepth Analysis Depository Unclocking Growth Underwriting 12 Investment Advisory Well Equipped Advisory Team
  13. 13. Service offerings Capital markets: Primary Market Group: Over the years,KCL has developed a fully-fledge Primary Market Group to market and distribute various capital market products such as shares,debentures,bonds etc. through the network of branches and committed sub-brokers spread across the country. The division is registered with various public and private sector Mutual Funds for distribution and as an agent of Unit Trust of India.It is also a Registered agent to market Government of India Tax Free bonds through Reserve Bank Of India(RBI) and Stock Holding Corporation of India Ltd.(SHCIL). Secondary Markets Group: KCL has been a prominent member at NSE and BSE,NCDX and MCX.KCL has been catering to various individuals, market intermediaries, corporate ,High Net worth Individual, Mutual Funds ,Institutions, Insurance companies, Banks etc. Its focus has been to provide client satisfaction for their requirement of all financial products through its relationship managers. KCL ensures complete coverage of its client‟s interests, right from pre-trade analysis to post-trade confirmation and delivery. Depository Participant: KCL has been registered as n approved Depository Participant (DP) by Securities and Exchange Board of India with Central Depository Services(I) Ltd.(CDSL). AS a DP,KCL has been providing full-fledge services regarding dematerialization and off/on market transactions, lien etc 13
  14. 14. Underwriting and Stand-by-Support: The company provides underwriting and standby support to public and rights issues as an integral part of activities of stock broking. Such standby commitments are backed by network of sub-brokers spread across the country. KCL also has access to the large client base of KCLS, its parent company, comprising corporates and high net worth individuals, both residetandit overseas, which enable it to undertake large underwriting commitments on select issues. Equity Research: Research is perceived as the basic business information that support stock broking as well as other activities of the company. The equity research division of the Company undertakes specific research and also monitors the economic developments, various industry segments and companies therein.Several on-line databanks, both in-house and from outside agencies,are maintained in order to provide support to the research team. Investment Advisory Services: The company renders investment advisory ervices in various types of capital and debt market instruments with the overall objective of arriving at a judicious mix of risk versus return, while at the same time, maximizing yield and/or capital appreciation, to meet the specific client profile requirements. Corporate clients having substantial resources are currently being advised and also aided by KCL‟s professional execution. We also provide specialized advisory services to foreign institutions for their investment activities in India. 14
  15. 15. OBJECTIVES Primary Objective: To Study importance of a relationship marketing in Capital Market. Secondary Objective: To Study the various services provided by Broker house to there clients. To know investors experience in capital market To study what other services investors expect from their broker house. 15
  16. 16. Introduction to Relationship marketing Relationship Marketing has an aim of building mutually satisfying long term relationship with its clients in order to earn and retain their business. Marketer accomplishes this by promising and delivering high quality product and services at fair price to the other parties over time. Relationship marketing build longs strong economical, technical and social ties among the parties. The ultimate outcome of relationship marketing is the building of unique company assets called the marketing network .A Marketing network consists of the company and its supporting stakeholders (Clients, Employees, ad agencies and others) with whom it has built mutually profitable business relationship. Relationship marketing : Organizational pervasive approach Customer Loyalty Customer Advocacy Relationships Interaction Customer touch points Relationship marketing is an ongoing process of continued interactions with customer through multiple touch points (promotional campaigns, Employees,mailers,publicity, telephonic conversation etc.) and channels (communication channel, service channel, Distribution channel) so as to build a bond betweencustomer and the organization. It is an “Organization pervasive approach” To establish long term relations resulting in customer loyalty and step ahead generatingcustomer Advocacy. The Emphasis is not on acquiring new customers but on keeping existing customer happy and satisfied and resulting in an expanded customer base. 16
  17. 17. Principles of relationship marketing 1 - Know your potential customers. Before you start building your business; you need to determine your targeted market and know your potential customers. Learn how to know your customers to develop effective tactics for delivering your message to them. Only by knowing your customers' wants and needs you can successfully grow your business and be totally customer-oriented. In order to tailor your marketing and advertising strategies to appeal to the tastes and interests of your market, you must first identify your customer. Relationship is not only based on knowing who your visitors are, but on knowing your customers' and prospects' specific needs. 2 - Show your expertise. The majority of business people, never completely and clearly display their knowledge to potential customers. Show to your targeted market you are the leader in your industry and they will follow you. People like to learn about your experience. They like to follow the expert's steps to avoid mistakes and reach success the easy way with less investment in time and money. 3 - Start a dialog to establish trust. Set up a continuing dialog to establish trust. Trust is a vital step to building long-time relationship. This dialog should starts as soon as your visitors submit information along with their email addresses. This explains their interest in your business. In return, you give them 17
  18. 18. what promised when they subscribed and keep contacts at periodic intervals by sending quality information to your subscribers. 4 - Follow up Dialog leads to follow-up. Hook your subscribers with your follow up messages series. Set up a series of follow up messages to send quality information to every new subscriber. Professionalism is the key to successful relationship. The main purpose of follow up is to remain visible to your subscribers so, when the need arise and your prospect wants to make a purchase, your product will be the first one the subscriber thinks of. 5 - Offer good customer service.. - Answer your prospects' requests as soon as you receive them. - Treat your customers right. Even if you offer the best products or services, most customers will evaluate your business by how they were treated while doing business with you. For that reason, it's important to take care of your customers and give them the best product or service they want. By providing great customer service to the people you do business with, you will get customers coming back to you again and again to buy your products or services. 6 - Educate your subscribers. Put at your customers disposal manuals, frequently asked question (FAQ) web page, articles, etc... to help them learn how to use your product or service perfectly. Educate your subscribers to help them build interest and loyalty for your business. 18
  19. 19. Lifetime clients want you to be their trusted advisor. The more you educate your customers by offering them a variety of options, the greater your chance to earn their lifetime business. Education strengthens relationship marketing with clients. 7 - Sell or recommend only quality products. Sell quality products that have value, plus offer a guarantee and stand behind it. One of the quickest ways to destroy a business relationship is selling poor quality products and not standing behind what you promise. Advantages of relationship marketing Retaining customers for the long-term offers many benefits. The aim is for the company to obtain life time custom. Some of the benefits of relationship marketing include: Loyal customers will recommend your business to others, thus expanding your business for you. Loyal customers are willing to try some of your new products, because they trust you. Customers will be willing to pay more for your services/products if there are adjustments in pricing because they are loyal to you and trust your services/products. Loyal customers will tell you about problems with your products/services enabling to improve your products/services. The ultimate benefit will be an increase sales, market share and dominance. 19
  20. 20. Customer relationship management: a tool for relationship marketing While relationship marketing is a sales and marketing concept, CRM refers to the tools used to carry out the concept. Relationship marketing is implemented as a strategy and includes activities such as identifying long-term sales and retention goals, public relations, marketing and advertising campaigns. CRM includes the operational tasks that support the relationship marketing strategy. Acitivities may include gathering data about the customers, then organizing and analyzing it to create target customer profiles. CRM data is also effective in finding opportunities to create special offers to reward long-time customers for their loyalty, further building the relationship. Relationship marketing seeks to increase sales by building trust and engaging customers. Using a CRM system effectively allows a salesperson to quickly and consistently deliver what customers are looking for with each and every interaction, because their preferences and buying history are recorded. The system benefits the customers, because they see the business "knows" them. CRM systems coordinate, automate and deliver online and offline advertising and marketing activities that help build the long-term customer relationships that are crucial to a successful relationship marketing 20
  21. 21. Relationship marketing in capital market The importance of relationships in the financial services sector has long been appreciated. This is because of the nature of the industry, which typically involves significant amounts of money, risk and confidential information handled by services which consumers may or may not buy. Contemporary research in the financial services sector, especially in banking, has advocated relationship marketing (RM) as a key option in gaining customer loyalty. Moreover, in high-level financial services, the relationship itself has been found to be a major factor in satisfaction and customer loyalty and customer relationships are built largely through service encounters. RM can, but need not, be directed towards all customers of a financial institution. As, investment across all customer segments will not yield similar returns RM is often directed only at the most profitable areas . Therefore, it is important for marketers to attend to the process of building long-term relationships, commitment and trust from different investor segments. In the financial context, it is better to discuss the details of products and services face-to-face because advice needs to incorporate the specific needs of customers and confidentiality is essential. More often than not, financial industries‟ success is based on creating long-term relationships and providing ongoing services to investors. informationand operational knowledge derives from informal face-to-face interaction, with the remaining coming from documentation, and that tacit knowledge, based on personal experience and observations, is essential for an organisation‟s success . Face-to-face contacts develop relationships and facilitate customers‟ trust of an organisation face-to-face techniques for building relationships: 21
  22. 22. 1) Prepare for face-to-face exchange thoroughly and aim to understand real needs and wants. 2) Ensure the process for face-to-face meeting is well understood by both parties. 3) Be wary about using conditional offers at a meeting. 4) Avoid posturing. While it isimportant that both parties understand where they are in the marketplace, overemphasis merely wastes valuable face-to-face time. 5) Establish the key issues to be discussed early during the meeting. Finally, 6) Support individuals actively at the meeting – this communicates genuine empathy and promotes understanding of important issues. personal feelings are also an important component of relationship development. Not only loyal customers, but also loyal owners, influence marketing success. Marketing plays an important role in creating trust and long-term relationship. 22
  23. 23. RM in brokerage firms: RM was an effective instrument in gaining customer loyalty in the securities brokerage industry and most local brokerages implemented RM activities in a similar manner, but concentrated on different areas according to their dominant customer type. That is, companies focusing on individual investors tended to give greater attention to relationship-building activities than to providing information, constructing closer relationships with customers by using the „personal touch‟. The study also identified the most influential factors impacting loyalty for brokerages Firstly, there were information services, for example research papers and newsletters, secondly, understanding different customers‟ investment behaviours, for example those of long- and short-term investors and institutional and retail investors and lastly, providing onestop services, by offering all products available on the stock market. These findings offer new knowledge for professional practice. In response to brokerage firms treat their customers differently as all local securities brokerage firms in SET treated theircustomers differently, depending on the type of business received, for example, higher volume investors received more attention and services than lower volume. Role and responsibilities of relationship managers in brokerage firm: 1. Responsible for new client acquisition, building new relationships and increasing depth in existing relationships with clients 2. Will be responsible for primarily selling Equity based investment products. 3. Responsible for identifying customer needs, assessing their risk appetite and providing them investment options. 4. Responsible for achieving targets as assigned by the organization on a monthly basis 23
  24. 24. Literature review Episodes and Bonds in Investor Relationship Marketing: The purpose of this study is to describe,analyses and understand investor relationship marketing both theoretically and empirically. By investor relationship marketing, the continuous, planned, purposeful, and sustained management activity which identifies, establishes, maintains, and enhances mutually beneficial long term relationships between the companies and their current and potential investors, and the investment experts serving them. Short term investor episodes initially form the basis of long term interaction between the partners in the investor community. Various investor bonds of attraction, trust, and commitment may evolve. Finnish listed companies have laid down their main emphasis on improvements both in meetings with stock analysts and lately also in interim reports. Annual and interim reports are the principal sources of written information for the Finnish stock analysts .Information in several oral forms is also vital for the stock analysts. Significant improvements can be found in the contents of interim reports while some weakening can be found in the information episodes of personal appointments and news in media. It can be concluded that Finnish listed companies have realized the necessity of investor relationship marketing and consequently many of them have activated their reporting and disclosing practices. The most advanced companies belongto the metal and forestry industries and they are also listed on foreign stock exchanges. It is evident that new and coming issues to shareholders, potential listings abroad and international capital acquisition needs may function as critical events and driving forces for the companies in activating investor relationship marketing in order to create, maintain and enhance attraction, trust and commitment in investment . 24
  25. 25. RESEARCH METHODOLOGY Research:Research in common terms refers to a search for knowledge. It can define as a scientific and systematic search for pertinent information on a specific topic. In fact, research is an art of scientific investigations. Research is an academic activity and as such the term should be used in a technical sense. It comprises defining and redefining problems, formulating hypothesis or suggested solution; collecting, organizing and evaluating data; making deductions and reaching conclusion; and at last carefully testing the conclusion to determine whether they fit the formulating hypothesis. Types of Research: Descriptive Research: Descriptive study is a fact- finding investigation with adequate interpretation. It is the simplest type of research. It is more specific than an explanatory study, as it has focus on particular aspect of the problem studied. It is designed to get her descriptive information and provide information for formulating more sophisticated studies. Data are collected by using one or more appropriate method, observation, interviewing and mail questionnaire. 25
  26. 26. Type of Data Used:There are basically two types of Data Primary Data Secondary Data Primary Data:Primary Data is first hand information that the researcher collects. It helps in collecting useful and most accurate information that is needed for the researcher to do his research. Sources of Primary Data:Questionnaire Interview Schedule Secondary Data:Secondary data is what the researcher collects from different sources. It also help researcher to get elaborate information to do his research. Sources of Secondary Data:Internet Journals 26
  27. 27. Target Group/ Population:As this research is based on Relationship Marketing my Target group is my Clients who areDealing with Capital Market. Tools for Data Collection:The Various method of Data gathering involves the use of appropriate recording forms. These are called tools or instrument of data collection. Sample Size :45(forty-five): 33 males 12 females 27
  28. 28. SAMPLING The Basic idea of sampling is that by selecting some of the element in a population in order to get first hand information of study. There are two type of sampling probability Sampling & Non probability sampling and in this research, Researcher has taken probability sampling. Probability Sampling: Probability sampling is most commonly associated with survey based research where you need to make inferences from your sample about a population to answer your research questions or to meet your objectives. The process of probability sampling can be divided into four stages: 1. Identify a suitable frame based on your research question or objectives 2. Decide on a suitable sample size 3. select the most appropriate sampling technique and select the sample 4. Check that the sample is representative of the population The objective of probability sampling depends on the research question & on the objective. Subsequently I need to have face to face contact with respondents 28
  29. 29. Simple random sampling Simple random sampling involve in selecting sample at random from the sampling frame using either random no. table. In my research I had use random selection of respondent who used to come for the trading purpose in KEYNOTE CAPITAL office it is most accurate and easily accessible form of sampling method Convenience Sampling Convenience or haphazard sampling involve selection haphazardly those cases that are easiest to obtain for your sample, Such as the person interviewed at random in a shopping center for the interview programmed. The sample selection process is continued until your required sample size has been reached. Although this techniques of sampling is widely used it is prone to bias and influence that are beyond your control. I has selected convenience sampling as some of the respondent are my clients only. 29
  30. 30. DATA ANALYSIS METHODS Technique used for analysis & interpretation:Bar Diagram & Pie Chart Percentage Analysis Chi Square Test Percentage Analysis: Percentage Analysis is used for making comparison between two or more series of data. Percentage (%) = No. of respondents * 100 / Total No. of respondents. Chi- Square Test: Many time manager need to know weather the differences they observe among several sample proportion are significant or only due to chance. X2 = (fo-fe)2 fe Determine Degree of Freedom: No. of degree of freedom = (No. of rows -1) (No. of Columns-1) 30
  31. 31. DATA ANALYSIS No of males and females investors: RESPONDENTS PERCENTAGE Male 32 74% Female 13 26% Total 45 GENDER Male Interpretation: 74% investors are males. 26% investors are females. 31
  32. 32.  In which professions are you engaged in? RESPONDENTS PERCENTAGE Business 18 40% Service 12 27% Professional 13 29% Entrepreneur 2 4% TOTAL 45 32
  33. 33. 20 18 16 14 12 10 8 6 4 2 0 Business service profession enterprenure Interpretation: 40% of the respondents are Business Man 26% of the respondents are Service Man 29% of the respondents are Professionals 5% of the respondents are Entrepreneur Inferences: From the above survey most of the respondents are found to be business man by profession. 33
  34. 34.  Do you trade in Stock Market? RESPONDENTS PERCENTAGE YES 36 80% EARLEAR, BUT NOW 9 20% STOPPED Total 45 34
  35. 35. Respondent trade in stock market 40 35 30 25 20 Respondent trade in stock market 15 10 5 0 YES Earlier but now stopped Interpretations: 80% of the respondents trade in stock 20% of the respondents trade earlier Inferences: From the above survey most of the respondents trade in stock market. 35
  36. 36.  Have you heard of Keynote capitals? RESPONDENTS PERCENTAGES Yes 10 22% No 35 78% TOTAL 45 36
  37. 37. INVESTOR YES NO Interpretation: 22% of the respondents know Keynote capitals 78% of the respondents don‟t know about Keynote capitals Inferences: From the above survey most of the respondents don‟t know Keynote capitals 37
  38. 38. If Yes then Specify RESPONDENTS PERCENTAGES Friends 5 50% Newspaper 3 30% T.V 0 0% Other 2 20% TOTAL 10 38
  39. 39. Source of informtion 6 5 4 3 Source of informtion 2 1 0 Friends News paper T.V Other Interpretation: 50% Respondents say Friends 30% Respondents say Newspaper 0% Respondents say T.V 20% Respondents say other Inferences: From the above survey most of the respondents say Newspaper as a source of information of Keynote capitals. 39
  40. 40.  How much is your income or your Credibility RESPONDENTS PERCENTAGE Between 1- 2 lac 3 7% Between 2-3 lac 12 27% Between 3-4 lac 17 38% Above 4 lac 13 28% TOTAL 45 40
  41. 41. Respondent Income 18 16 14 12 10 8 Respondent Income 6 4 2 0 Between 1-2 lac Between 2-3 lac Between 3-4 lac Above 4 lac Interpretation: 7% of the respondents are between 2- 3 lac 27% of the respondents are between 3-4 lacs 38% of the respondents are between 1-2 lacs 29% of the respondents are between above 4 lac Inferences: From the above survey most of the respondents falls under 3- 4 lac bracket. 41
  42. 42.  How much you trade in stock Market RESPONDENTS PERCENTAGE 10,000 - 50,000 16 36% 50,000 - 1,00,000 11 24% 1,00,000 - 1,50,000 13 29% Above 1,50,000 5 11% TOTAL 45 42
  43. 43. 18 16 14 12 10 INVESTING AMOUNT 8 6 4 2 0 10000-50000 50000-100000 100000-150000 Above 150000 Interpretation: 36% respondents invest 10,000-50,000 24% respondents invest 50,000- 1, 00,000 29% respondents invest 1, 00,000- 1, 50,000 11% respondents invest above 1, 50,000 Inferences: From the above survey most of the respondents invest 10,000- 50,000 in stock market. 43
  44. 44.  How much Return you Get after Investing RESPONDENTS PERCENTSGE Below 5% 9 20% 5- 10 % 13 54% 10- 15 % 17 18% 15- 20 % 6 8% TOTAL 45 44
  45. 45. RETURN 18 16 14 12 10 8 RETURN 6 4 2 0 Below5 % 5-10% 10-15% 15-20% Interpretation: 20% of the respondents get below 5% 54% of the respondents get 5- 10 % 18% of the respondents get 10 - 15 % 8% of the respondents get 15-20 % Inferences: From the above survey most of the respondents get 5- 10 % returns on their investments. 45
  46. 46.  What according to you is your risk level? RESPONDENTS PRECENTSGES Highly Risky 6 13% Average 23 51% Moderate 14 31% Risk free 2 5% TOTAL 45 46
  47. 47. 25 20 15 Risk level 10 5 0 Highly risky Average Moderate Risk free Interpretation: 13% of the respondents are highly risky 51% of the respondents are average 31% of the respondents are Moderate 5% of the respondents are risk free Inferences: From the above survey most of the respondents are average risk takers 47
  48. 48.  Which mode of trading do you prefer? RESPONDENTS PERCENTAGE Online 20 44% Offline 25 56% TOTAL 45 48
  49. 49. trading mode Online offline Interpretation: 44% of the respondents prefer online 56% of the respondents prefer offline Inferences: From the above survey most of the respondents prefer offline trading as they are new to stock market. 49
  50. 50.  What has been your investment experience in stocks? RESPONDENTS PERCENTAGES Excellent 5 11% Good 11 24% Average 21 47% Bad 8 18% TOTAL 45 50
  51. 51. experience in stock market 25 20 15 experience in stock market 10 5 0 Excellent Good Average Bad Interpretation: 11% of the respondents feel excellent 24% of the respondents feel good 47% of the respondents feel average 18% of the respondents feel bad Inferences: From the above survey 47% of the respondents have an average investment experience in stock market. 51
  52. 52.  What are the factors selecting for your broker house? RESPONDENTS PERCENTAGES Opening charges 8 18% Advertisement 2 4% Credit worthiness and trust 13 29% CRM and Commissions 17 38% Brokers image in market 2 4% Other reasons 3 7% TOTAL 45 52
  53. 53. selection factors 18 16 14 12 10 8 6 4 2 0 selection factors Interpretation: 18% of the respondents select broker because of Opening charges 4% of the respondents select broker because of Advertisement 29% of the respondents select broker because of creditworthyness and trust 38% of the respondents select broker because of CRM and commission 4% of the respondents select broker because of Brokers image in market 7% of the respondents select broker because of Other reasons Inferences: From the above survey 38% of the respondents have select their brokers because of CRM andommissions. 53
  54. 54.  Are you satisfied with the service of your Broker House? RESPONDENTS PERCENTAGE yes 29 64% no 7 16% Cant say 9 20% yes 54
  55. 55. satisfaction Yes No Can't say Interpretation: 64% of the respondents say yes 16% of the respondents say no 20% of the respondents say can‟t say Inferences: From the above survey 64% of the respondents are satisfied the services of their broker house. 55
  56. 56.  Rate the Service according to your criteria? RESPONDENTS PERCENTAGES Excellent 9 20% Good 7 16% Average 23 51% Bad 6 13% TOTAL 45 56
  57. 57. Service Rating 25 20 15 Service Rating 10 5 0 Excellent Good Average Bad Interpretation: 20% of the respondents say excellent 16% of the respondents say Good 51% of the respondents say Average 13% of the respondents say Poor Inferences: From the above survey most of the respondents rate Average to the services provide by their broker house. 57
  58. 58. Chi- Square Test  How would rate the services provided by your broker? Sr. No. Services Provided 1. Facilitators service 3. Good Core Services 2. Excellent Advisory services 58 Average Can‟t say
  59. 59. Chi- Square test is used to determine is there any significant difference between the services provided by the broker house. Null hypothesis is tested at 0.10 level of significance Our Problem can be summarized.  Ho: Null Hypothesis  H1: Alternative Hypothesis  Alpha = 0.10 Level of significance Solution: Ho: There are no significant differences between the services provided by the broker house H1: There are significant differences between the services provided by the broker house Services Excellent Good Average Bad 8 18 14 5 45 9 11 18 7 45 11 12 20 2 45 28 41 52 14 135 Provided Core Services Facilitators service Advisory services 59
  60. 60. Degree of Freedom: Formula: (r-1)(c-1) (3-1)(4-1) 2*3 6 Degree of freedom Fe= RT*CT N Chi- square Formula: (fo-fe)2 Fe Conclusion: The table value of 0.10 at 6 degree of freedom is 10.645 and the calculated value is 6.44. Since the calculated value is less then the table value we can conclude that the Null hypothesis is right. I.e. “there is no significant difference between the services provided by the broker house”. 60
  61. 61. FINDINGS  In this survey most of the questionnaires are filled from brokerage houses where clients sit on the terminal & trade in the stocks. As the data collected shows that people who mostly invest in the market are businessmen & service class person who don‟t have enough time to keep continuous watch on the market fluctuation so they need regular assistance from their relationship manager who is assigned to them so every company is suggested to enforce their relationship managers to stay in contact with their clients.  There are some NO answer or respondent gives bad as response in this survey because many time clients might have bad experience in trading so the relationship manager in that brokerage firm must take some extra care for them.  Bad experience of client in the brokerage house who doesn‟t want to trade in the stock market he might be afraid of losses or due to lack of resources.the relationship manager has to give a proper assistance & dedication to that person so that he can make himself to trade in the stocks.  As technology increases most of the people have less time to spend on the other activities than their core business so most of the clients prefer online trading so they can put their bids whenever they want as 24*7. In the case of online trading clients are not need to be provided any kind of assistance from their relationship manager but if the dedicated relationship manager provide them a good assistance can put that relationship manager & that organization apart from their competitors.  even after the presence of internet some people like to trade through offline mode reasons might be lack of knowledge or cost sensitive as offline product is used to 61
  62. 62. being at lower cost so here in offline that dedicated relationship manager has to be in contact with his client  . Most of the people look for moderate return because of presence of risk well as the age group changes the risk-taking factor as age increase people started investing in bonds where a fixed return is possible.  As the data shows most of the people were satisfied with their brokers because they are giving them profits on their investment & they were ready to pay more to their brokers if they get some extra services. 62
  63. 63. Limitation of study  Time spent in terms of data collection was less as most of the time we are busy to complete our target  Non availability of related people.  Awareness level about the company is very low among the clients.  Market was too volatile during the period of research.  Sample size is small so sampling error may be committee 63
  64. 64. SUGGESTIONS For successful relationship marketing keynote should invest time to gather available sources and high quality information and put it at your prospects' disposal to help them succeed. Remember, maintaining customer enthusiasm and creating customer loyalty is your key to success. To stay in customers' minds serve them better. it can do by collecting information from you customers' feedback. Having a contacts page on your website with a comments or feedback form will keep informed about customers' wants and problems. publish a newsletter, can also accomplish this by asking for feedback from subscribers. 64
  65. 65. Conclusion In spite of the bleak and grim outlook the future of capital market it is growing at a very high pace. Taking this things into consideration there are lots of opportunity for the Broker House which already exist and which are due to enter in the Indian market. These are little awareness about Equity and Mutual funds in India people have accepted it as one of the major investment avenue. As people have entered in this particular investment avenue they have lost their money because of movement in the market which is below the par value and this has shaken the faith of investor in this particular avenue. Another reason for low investment in this sector is due to country most of the companies not performing well and also due to the scams that are taking place frequently Once people know about the benefit offered by it, Capital market will become one the sought after investment avenue. As far as other product marketed by KEYNOTE is concerned they have a ready market. The only thing which is needed to focus on is that they should have a strong marketing strategy so that prompt service and availability of forms is made available to the investors at a short notice and if it keeps the traditional base for marketing in India which is a price sensitive. 65
  66. 66. Recommendation The Recommendation which is to be suggested is as follow:- KEYNOTE CAPITALS enhance the customer care department where queries can be timely solved. KEYNOTE CAPITALS should provide more security to the existing and prospective clients KEYNOTE CAPITALS should build its BRAND Image more strong by increasing visibility It should provide regular and update market information Special attention need to be given to the delivery of monthly & fortnightly report to the clients Timely release of Brokerage & Fast redressed of clients grievance is a major plus if KEYNOTE is looking to develop long term relationship with its clients Services should be more efficiently delivered to the prospective clients in order to develop a long term relationship with the clients. Goal is to create long term relationships marketing with subscribers. To do that company must invest time to gather available sources and high quality information and put it at your prospects' disposal to help them succeed. Remember, maintainingcustomer enthusiasm and creating customer loyalty is key to success. 66
  67. 67. ANNEXURE QUESTIONNAIRE NAME: GENDER: 1. In which professions are you engaged in? Business Service Professional  Entrepreneur  2. Do you trade in stock market? Yes Earlier, But now Stopped 3. Have you heard of Keynote capital? Yes No If Yes then Specify? Friends News Paper T.V Other 4. How much is your income or your Credibility Between 1 lac to 2 Lac Between 2 Lac to 3 Lac Between 3 lac to 4lac Above 4 lac 67
  68. 68. 5. How much you trade in stock Market 10,000 – 50,000 50,000 – 1, 00,000 1, 00,000 – 1, 50,000 Above 1, 50,000 . 6. How much Return you Get after Investing >5% 5 – 10 % 10 – 15 % 15 – 20 % 7. What according to you is your risk level? Highly Risky Average Moderate Risk free 8. Which mode of trading do you prefer? Online trading Offline trading 9. What has been your investment experience in stocks? Excellent Normal Above normal Loss 68
  69. 69. 10. What are the factors responsible for selecting your broker house? Opening charges Advertisement Credit worthiness and trust CRM or commissions Brokers image in market Other reason 11. Are you satisfied with the service of your Broker House? Yes Can‟t Say No 12. Rate the service according to your Criteria Excellent Very Good Good Poor 13. How would rate the services provided by your broker? Sl. No. Services Provided 1. Core Services 2. Facilitators service 3. Very useful useful Advisory services 69 Averag Not useful e
  70. 70. BIBLIOGRAPHY Kotler Philip, Principles of Marketing, Sultan Chand and Company Ltd., New Delhi, 2002. Kothari C.R., Research Methodology, WishwaPrakashan, New Delhi, 1985(Reprint 2003). Relationship marketing text and cases , S. Shajahan. Customer Realationship management, UrvashiMakkar, Harinder Kumar Makkar. Websites o o o 70