relationship marketing in apital market
96
A PROJECT REPORT ON RELATIONSHIP MARKETING IN CAPITAL MARKET FOR KEYNOTE CAPITALS LIMITED MASTER OF MANAGEMENT STUDIES (MMS) UNIVERSITY OF MUMBAI SUBMITTED TO MARATHA MANDIR’S BABASAHEB GAWDE INSTITUTE OF MANAGEMENT STUDIES MUMBAI CENTRAL SUBMITTED BY: SUPRIYA ASHOK PAWAR BATCH: 2012-14 1
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Transcript of relationship marketing in apital market
A
PROJECT REPORT
ON
RELATIONSHIP MARKETING IN CAPITAL MARKET
FOR
KEYNOTE CAPITALS LIMITED
MASTER OF MANAGEMENT STUDIES (MMS)
UNIVERSITY OF MUMBAI
SUBMITTED TO
MARATHA MANDIR’S
BABASAHEB GAWDE INSTITUTE OF
MANAGEMENT STUDIES
MUMBAI CENTRAL
SUBMITTED BY:
SUPRIYA ASHOK PAWAR
BATCH: 2012-14
ROLL NO: 100
1
DECLARATION
I, Supriya Ashok Pawar student of Masters of Management Studies (Semester III) of
Babasaheb Gawde 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
RELATIONSHIP MARKETING
IN
CAPITAL MARKET
3
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 .Keval Bhanushali, Head of retail Equity for giving
me this opportunity. I would also like to thank my mentor Mr. Vikas Vishwakarma –
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 of Keynote capitals Solutions.
I also acknowledge my sincere gratitude to Professor C.S.Balasubramaniam for his
guideline & constant support for completion of the project.
4
INDEX
5
Serial No. Contents Page No.
1. Executive Summary 6-7
2. Company profie 8-14
3. Objectives 15
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 67-69
13. Bibliography 70
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
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
Company profile
Company name: Keynote Corporate Services (KCSL) SEBI approved.
Private limited: 1993
Public limited: 1993
promoters : 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
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.
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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
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
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.
KEYNOTE CAPITALS
12
Capital markets
Primary Market Group
Secondary Market Group
Depository
Underwriting
Research
Identification Of Potential
Indepth Analysis
Unclocking Growth
Investment Advisory
Well Equipped Advisory Team
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
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 residet andit 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
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
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
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 between customer and the organization. It is an “Organization pervasive
approach” To establish long term relations resulting in customer loyalty and step ahead generating
customer 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
Customer touch points
Interaction
Relationships
Customer Loyalty
Customer Advocacy
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
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
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
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
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.
information and 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
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 is important 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
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 one-
stop 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 their customers 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
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 belong to 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
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
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
Target Group/ Population:-
As this research is based on Relationship Marketing my Target group is my Clients who
are Dealing 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
SAMPLING
27
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
Simple random sampling
28
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.
DATA ANALYSIS METHODS
29
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)
DATA ANALYSIS
30
No of males and females investors:
RESPONDENTS PERCENTAGE
Male 32 74%
Female 13 26%
Total 45
GENDER
MaleFemale
Interpretation:
74% investors are males.
26% investors are females.
31
In which professions are you engaged in?
RESPONDENTS PERCENTAGE
Business 18 40%
Service 12 27%
Professional 13 29%
Entrepreneur 2 4%
TOTAL 45
32
Business service profession enterprenure0
2
4
6
8
10
12
14
16
18
20
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
Do you trade in Stock Market?
RESPONDENTS PERCENTAGE
YES 36 80%
EARLEAR, BUT NOW
STOPPED
9 20%
Total 45
34
YES Earlier but now stopped0
5
10
15
20
25
30
35
40
Respondent trade in stock market
Respondent trade in stock market
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
Have you heard of Keynote capitals?
RESPONDENTS PERCENTAGES
Yes 10 22%
No 35 78%
TOTAL 45
36
INVESTOR
YESNO
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
If Yes then Specify
RESPONDENTS PERCENTAGES
Friends 5 50%
Newspaper 3 30%
T.V 0 0%
Other 2 20%
TOTAL 10
38
Friends News paper T.V Other0
1
2
3
4
5
6
Source of informtion
Source of informtion
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
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
Between 1-2 lac Between 2-3 lac Between 3-4 lac Above 4 lac0
2
4
6
8
10
12
14
16
18
Respondent Income
Respondent Income
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
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
10000-50000 50000-100000 100000-150000 Above 1500000
2
4
6
8
10
12
14
16
18
INVESTING AMOUNT
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
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
Below5 % 5-10% 10-15% 15-20%0
2
4
6
8
10
12
14
16
18
RETURN
RETURN
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
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
Highly risky Average Moderate Risk free0
5
10
15
20
25
Risk level
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
Which mode of trading do you prefer?
48
RESPONDENTS PERCENTAGE
Online 20 44%
Offline 25 56%
TOTAL 45
trading mode
Onlineoffline
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
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
Excellent Good Average Bad0
5
10
15
20
25
experience in stock market
experience in stock market
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
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
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Opening c
harges
Adverti
semen
t
Credit w
orthyn
ess an
d trust
CRM and co
mmision
Broke
rs im
age i
n mark
et
Other rea
sons
02468
1012141618
selection factors
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 credit worthyness 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
and ommissions.
53
Are you satisfied with the service of your Broker House?
RESPONDENTS PERCENTAGE
yes 29 64%
no 7 16%
Cant say 9 20%
54
satisfaction
YesNoCan'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
Rate the Service according to your criteria?
RESPONDENTS PERCENTAGES
Excellent 9 20%
Good 7 16%
Average 23 51%
Bad 6 13%
TOTAL 45
56
Excellent Good Average Bad0
5
10
15
20
25
Service Rating
Service Rating
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
Chi- Square Test
How would rate the services provided by your broker?
Sr. No. Services Provided Excellent Good Average Can’t say
1. Core Services
2. Facilitators service
3. Advisory services
58
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
Provided
Excellent Good Average Bad
Core
Services
8 18 14 5 45
Facilitators
service
9 11 18 7 45
Advisory
services
11 12 20 2 45
28 41 52 14 135
Degree of Freedom:
59
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”.
FINDINGS
60
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
being at lower cost so here in offline that dedicated relationship manager has to be in
contact with his client
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. 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.
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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
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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.
Conclusion
64
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.
Recommendation
65
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.
ANNEXURE
66
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
5. How much you trade in stock Market
67
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
10. What are the factors responsible for selecting your broker house?
Opening charges Advertisement
Credit worthiness and trust CRM or commissions
68
Brokers image in market Other reason
11. Are you satisfied with the service of your Broker House?
Yes No Can’t Say
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 Very useful
useful Average
Not useful
1. Core Services
2. Facilitators service
3. Advisory services
BIBLIOGRAPHY
Kotler Philip, Principles of Marketing, Sultan Chand and Company Ltd., New Delhi,
2002.
69
Kothari C.R., Research Methodology, Wishwa Prakashan, New Delhi, 1985(Reprint
2003).
Relationship marketing text and cases , S. Shajahan.
Customer Realationship management, Urvashi Makkar, Harinder Kumar Makkar.
Websites
o www.keynotecapitals.com
o www.wikipedia.com .
o www.investopedia.com .
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