RIMS JOURNAL OF MANAGEMENT - M S Ramaiah Foundation...• RIMS has been ranked at No.75 out of top...

ISSN 2455 – 1449

Vol.4(II), Students’ Issue, Feb, 2020

M S RAMAIAH FOUNDATION RAMAIAH INSTITUTE OF MANAGEMENT STUDIES

RAMAIAH INSTITUTE OF MANAGEMENT SCIENCES

RIMS JOURNAL OF MANAGEMENT

Theme: Innovations and Emerging Trends for Sustainable Global Economy

A STUDY OF THE CHALLENGES FACING DIGITAL MARKETING AS A TOOL OF PROMOTION Ms. Valanteena D and Ms. Lidweena Mary A STUDY OF THE EFFECTIVENESS OF SOCIAL MEDIA MARKETING COMPARED TO TRADITIONAL MARKETING METHODS Ms. Nousheena Imran and Ms. Maseeha Arjumand A STUDY ON GREEN MARKETING PAVING WAY FOR BANKING SECTORS TOWARDS ENVIRONMENT SUSTAINABILITY Ms. Abida Azim and Ms. Keerthana N VITALITY OF A HIGHLY EDUCATED POPULATION FOR THRIVING ENTREPRENEURSHIP Ms. V. Ektha A STUDY OF CUSTOMER BEHAVIOUR TOWARDS GREEN MARKETING Ms. Ayushi Somanna M and Ms. Shyamilee

PRE & POST-MERGER FINANCIAL PERFORMANCE: AN INDIAN PERSPECTIVE OF EXIT

STRATEGY

Mr. Girish Mallappa Mabanur and Ms. Sindhu A N A STUDY ON PERCEPTION OF EMPLOYEES TOWARDS GIG SYSTEM Ms. Ancy S. S and Ms. Umaima Rukhsar BRAND MANAGEMENT OF SMART DEVICES IN BANGALORE CITY Mr. Mohammed Yousuff Ahmed UNDERSTANDING THE GROWING THEMATIC BOND MARKET Ms. Lahari Murthy and Mr. Gurupreet Kaur CUSTOMER PERCEPTION OF BRAND MANAGEMENT OF RELIANCE IN TELECOMMUNICATIONS, RETAIL AND ELECTRONICS Ms. Steffi V Dousza and Ms. Vanessa Akanskha RURAL MARKETING CHALLENGES AND STRATEGIES Ms. Sarah N Augustine and Ms. Pearl Martina A STUDY ON ISSUES AND CHALLENGES OF WOMEN EMPOWERMENT Ms. Ayesha Soubia A STUDY ON RECENT TRENDS IN MARKETING STRATEGY WITH REFERENCE TO BANKING SECTOR Mr. Anirbon Roy and Ms. Shruthi J TECHNOLOGY ADVANCEMENT AND FRAUDS IN BANKING Ms. Subhashree K and Ms. Harshitha S

RIMS Journal of Management

Vol.4 (II), Students’ Issue, Feb 2020 2019

PREFACE

The students’ edition of our Journal comprises research contribution made by business

students to our National Conference on “Innovations and Emerging Trends for Sustainable

Global Economy” on September 6, 2019. The conference aimed to highlight sustainability

measures and economic growth achieved by emerging economies and traditional global

powers. It gave an opportunity to exchange of novel ideas in the field of sustainable global

and gig economy.

The papers presented by researchers, research scholars, academia fraternity and few

corporate experts were published in UGC Care Approved International Indexed and Referred

Journal “Think India Journal” with an Impact Factor 6.2 and few papers were published in

UGC Approved Journal “Journal of Emerging Technologies and Innovative Research – An

International Open Access Journal with an Impact Factor 5.87.

The student edition is an attempt to build a culture of research. Through research the student

fraternity can develop new skills, gather in-depth learning on new concepts, explore new

possibilities, provide solutions to the current problems, enhance personal branding to support

professional development and improve their career prospects.

- Dean



ACKNOWLEDGEMENTS

This students’ issue, was supported by Dr. M. R. Pattabiram, Founder, Trustee; Mrs. Anitha Pattabiram,

Founder Trustee, M. S. Ramaiah Foundation. We thank Dean, Dr. Radha R, for her continuous support and

guidance.

Special thanks to our faculty team Dr. Julie Sunil, Dr. S. Murali, Dr. Saravana Kumar,

Prof. Sreerengan V. R, Prof. K. V. Sridhar, Dr. Dhanalakshmi K, Prof. Mallika B K for their insights and

expertise in compiling and editing the research papers and prepare the research papers for publication. We

are also immensely grateful for their feedback and recommendations, although the students work is

published with faith that this submitted work is authentic and should not tarnish the reputations of these

esteemed persons. We shall also thank Ms. Tarakeswari for the technical support.



RIMS JOURNAL OF MANAGEMENT

RIMS Journal of Management is a bi-annual publication of Ramaiah Institute of Management Studies /

Sciences. The journal is committed to delivering high-quality research findings and results to the world.

All manuscripts are subject to a double blind peer review by the members of the editorial board. The

accountability of the ideas, information, data and analysis presented by the authors rests on the authors.

The aim of this Journal is to provide a platform for researchers, practitioners, academicians and

professionals from diverse management disciplines to share innovative research findings to stimulate

scholarly debate in the development of Management Studies / Science.

This Journal is dedicated to publish high quality original research papers offering meaningful insights and

application oriented research, relevant to the corporate world.



RAMAIAH INSTITUTE OF MANAGEMENT STUDIES / SCIENCES (RIMS)

RAMAIAH INSTITUTE OF MANAGEMENT STUDIES/SCIENCES (RIMS) is an institution of higher

education dedicated to the cause of business education. The institution is a part of the M S RAMAIAH

Foundation, a charitable trust that has the avowed objective of providing exemplary service in all of its

offerings.

Dr. M S RAMAIAH, the founder of the MSR Group of institutions, was a pioneer in the educational sector

in South India. A visionary leader who rose from humble beginnings to being one of the most respected

figures in the field of higher education, he saw education as a noble way to serve society. M S RAMAIAH

Institute of Technology was founded in 1962 and is today considered to be one of the best technology

institutions in the country that attracts students from different parts of the world. Over the years, the

legendary founder forayed into medicine, pharmacy, law, science, arts and dentistry. Today, the group is

one of the largest of its kind in the country, with most of its programs having been given the autonomy to

design and deliver the best because of their excellent track record.

Dr. M R PATTABIRAM, the Managing Trustee of M S RAMAIAH FOUNDATION and Founding

Director of RIMS is a chip off the old block. A deeply spiritual and ethical leader, he is well-known for his

impeccable integrity and the ability to achieve results without cutting corners. Not surprisingly, besides his

many qualifications at the graduate level, he has devoted his doctoral studies to an analysis of Mahatma

Gandhi's ideas and ideals in terms of their profound relevance to the current world. Ever anxious to look

beyond the ordinary and the local, he had an abiding passion for creating a management institution that

would one day be counted among the best in the world. Thus was born RAMAIAH INSTITUTE OF

MANAGEMENT STUDIES/SCIENCES (RIMS).

VISION To be a global center of learning to evolve competent human resource asset with professional skills, ethics

and personal values.

MISSION To provide a “Comprehensive Learning Experience” to develop our students to be most preferred

prospects by the corporate.

• To integrate corporate needs and academic inputs.

• To enhance the learning experience by building competent professionals of the millennium in terms of

physical fitness, community orientation, solidarity of living & learning together, interdependence and

self- confidence.

• To constantly and consistently upgrade the intellectual capital in terms of teaching faculty, use of

technology in designing, developing and delivering curricula with value added inputs to students.

• To promote research among faculty to enhance the intellectual capital value.

• To train and develop faculty and support staff for improved quality of service.

QUALITY POLICY

• Meet or exceed student expectations relating to

• Assurance of Learning

• Career Development

• Meet or exceed expectations of all stakeholders, faculty, staff, recruiters, parents, promoters, regulators

and society.



CORE VALUES

• Ethical Approach

• Leadership with long term perspective

• Respect for our individual

• Service Orientation

• Collaboration and Teamwork

• Empowerment

• Innovation

• Accountability

• Inclusive growth and progress

• Global Outlook

• Uncompromising commitment to Quality and Continuous Improvement

• Performance Orientation

Within a short span of time, RIMS has established itself as an innovative B-School with a deep and

uncompromising attitude towards quality as can be gauged from the following:

• RIMS was honoured by ABP Mumbai as “BEST INSTITUTE WITH INNOVATION IN SKILL

DEVELOPMENT” under National Education Awards 2018 (9th Edition) on 5th July 2018.

• RIMS has been ranked at No.75 out of top 100 B-Schools by Dalal Street Investment Journal dated

Feb 19 – March 4 2018.

– The FIRST and ONLY B-School in India to have earned two CHEA (Council for Higher Education

Accreditation, USA) recognized Accreditations for its PGPM and MBA Programs - the accreditations

have been granted with commendations by the Accreditation Council for Business Schools and

Programs (ACBSP), USA and the International Assembly for Collegiate Business Education (IACBE),

USA.

• The only B-School to have been awarded the highest STAR AWARD at the National Quality

• Education Conference of the American Society for Quality (November 2012) and also the only B-School

in India to have won two Awards of Distinction at the National Quality Education Conference of the

American Society for Quality (2010 and 2011)

• The only B-School in India to have reached the finals of the International Team Excellence Awards of

the American Society for Quality in two successive years – 2011 and 2012. In 2011, RIMS received the

Attendee's Choice Award for “Complex Project” and in 2012 for “Creative Solution / Action”

• The youngest B-School in the country to be accorded the highest A++ grading by Business India, the

pioneer in B-School ratings, which has been grading B-Schools since 1982 (October 2011 and

November 2012)

• The youngest B-School in the country to be ranked by BUSINESS TODAY (October 2012) – No. 33 in

Learning Experience, No. 36 in Future Orientation, and No. 69 Overall.

• Ranked No. 70 by MBAUniverse.com (December 2012)

• The only B-School in India to have partnered with ASQ India Chapter to conduct innovative programs

on quality in different sectors (IT, Manufacturing, Health Care, Financial Services, and

Pharmaceuticals).

• The only B-School to have been featured in two Case Studies of the American Society for Quality



Call for Papers

Dear

Researcher,

Greetings from RIMS, Bangalore!

RIMS Journal of Management (ISSN 2455-1449) is published by RIMS, Bangalore - a premier

business institute under the M S Ramaiah Foundation and committed to excellence in academics,

research and corporate partnerships. The journal aims to serve managers, researchers and

academicians with emerging principles and practical inputs across the myriad challenges

confronting management discipline.

We welcome insightful articles, case studies, book reviews, interviews and research papers.

Rigorous, detailed and thought-provoking work that establish clear connects on contemporary

issues using empirical findings, in-depth application of theoretical frameworks or other

significant observations in any area of management will be appreciated.

The journal is peer-reviewed and follows a double blind review process. The manuscript should

be well written and follow the APA style of formatting.

Important dates for authors:

Issue/Date Abstract

(on or before)

Word

Limit for

Abstract

Full Paper (on

or before)

Word Limit

(for Full Paper)

January-June Issue April 30

500 words

with 6

keywords

June 10

Up to 5000

words (page

limit 10- 15

pages )

Notification of

Approval

May 15 June 20

July-December Issue October 31 December 10

Notification of

Approval

November 15 December 20

We look forward to your valuable contribution.



A study of the challenges facing digital marketing as a tool of promotion

Valanteena. D

Student, M.Com ‘IB’, Mount Carmel College, Autonomous,

#58,Palace Road,Vasanthnagar,Bangalore- 560052

[email protected]

+91 8147785299

Lidweena Mary



[email protected]

9071117422

Abstract

In the present scenario with the increased effect of globalisation and modernisation the

marketers and their businesses are facing a lot of severe challenges and also opportunities

leading to their success. Earlier the customers would focus mainly on the product and also the

brands of the product.

Digital marketing is the way of marketing or promoting the products or services to the customers

with the help of electronic media. It helps the marketers to know the customers, their taste and

preferences and most importantly their the expectation from the marketers. Digital marketing is a challenge to the marketers and simultaneously it offers a lot of

opportunities at the same time.

If the marketers interact with the customers it leads to better understanding and also enables the

marketers to have a deeper insight. The customers prefer to purchase products and avail services

of good quality but the customers do not have much time to spend on these aspects and hence

marketers have been using digital marketing as an effective tool to reach them. The problems

faced by the marketers need to be addressed carefully and appropriately so that it gives long

term solutions to the problems.

The objectives of the study were (a) Study the perception of the customers on digital marketing.

(b) Study the expectation of customers from digital marketers. Respondents were administered

a questionnaire to select responses. The findings reveal that most of the customers feel that

digital marketing promotions are the better option for the availability of products. And also they

expect the advertisements to be in suitable time, attractive to watch and hear, relevant, etc.

Keywords: digital marketing, challenges, promotions, online marketing, customers.

mailto:[email protected]




Introduction

Now it is a well-known fact that what we call

'marketing' has undergone substantial

changes over the recent years and the key role

in this transformation has been played on the

internet. Internet refers to the physical

connection of computer networks with any

other computer throughout the globe via

routers and servers. The vast amount of

information are being transported and held

computers as the wide-area communication

links and network infrastructure. As per

several studies, the introduction of the

internet has reshaped the structured and

performances to address in different sectors

like hospitality, health, education, marketing,

etc.

“The use of electronic devices and internet in

regards to promotion of a product or a brand

is to be termed as Digital marketing”. The

primary objective of digital marketing is to

attract customers and to provide a platform to

interact with the brand through digital

tools. Digital marketing includes social

media marketing, search engine marketing,

display advertisements, etc. and the scope is

beyond internet marketing for channels

which do not require internet like MMS and

SMS in mobile phones.

Tools of digital marketing are Search Engine

Optimization: Organic search, Paid Search:

AdWords, Analytics, Social

Media Marketing (PR and influencer), Email

Marketing/ Marketing Automation and

Content Marketing.

Challenges faced in digital marketing

• Limitation of internet access.

• Limited consumer link and

conversation.

• High competition of brand.

• Risk of hacking strategies.

• Anti-brand activities.

• Advertisement for limited products.

Literature review

Number of research papers and articles

provide a detailed insight into the role of

digital transformation in current education

and view of digitalization.

Digital marketing media, eg internet and

mobile phones, are considered powerful new

opportunities to reach consumers but are

dependent upon consumer responsiveness to

the new media. Consumer responsiveness is

a function of the perceived relevance of the

marketing message and the acceptance of the

medium of the message[i].

The challenges that social media faces for

enhancing consumer-brand engagement. In

doing so, they seek to turn social media

challenges into future research directions.

The majority of social media marketing

initiatives take the form of communicating

sales promotions to already engaged

consumers[ii].

The concept of digital marketing as

understood in the Indian conditions

can be explained still further in terms of its

effectiveness on and receptivity by the

consumers and the markets if proper

Scientific Research methods and techniques

are applied. To advertising points, the author

research is a part of the marketing activities

“built-in-progress”[iii].

Statement of the problem

Today digital marketing took over traditional

marketing. There is a rapid change in the

marketing and advertisement sector, the

expectations of each individual customer is a

challenge to digital marketing. There is a

huge gap between the customer’s expectation

and what they get back. There are lot of

problems faced by digital marketing in

satisfying the customers. Most of the

customers do not believe in digital marketing

https://outlook.live.com/mail/0/inbox#_edn1





advertisements are effective this is the major

challenge for digital marketing.

Objectives of the study

a) Study the perception of the customers

on digital marketing.

b) Study the expectation of customers

from digital marketers.

Methodology

The research on challenges facing digital

marketing as a tool of promotion was based

on both primary and secondary data. The

primary data was collected from the

questionnaire from a sample of 70 customers

and represented in the form of graphs. The

secondary data was collected from online

websites relating to digital marketing and a

couple of books. This data was classified and

tabulated. Findings have been summarised

and suggestions have been made.

Analysis and interpretation of data

Age group of the respondents

Age Percentage

18-25 76.50%

26-35 16.20%

35-above 7.40%

From the above data table it is seen that

76.50% of the respondents are in the age

group of 18-25, 16.20% of them are in the age

group of 26-35 and the remaining 7.40% of

the respondents belong to the age group of 35

and above. Therefore it can be inferred as

majority of the respondents are from the age

group of 18-25 who are young people just

passed their teens.

Gender of the respondents

Gender Percentage

Female 82.40%

Male 17.60%

From the above table it can be analysed that

82.40% of the respondents are female and

remaining 17.60% of the respondents are

male. Therefore it can be inferred as most of

the respondents are female.

Type of customer of the respondent

Type of customer Percentage

Student 60.30%

Professional 33.80%

Housewife 5.90%

Retired Nil

From the above table it is seen that 60.30% of

respondents are student, 33.80% of the

respondents are professionals, and remaining

5.90% of the respondents are housewives.

Therefore it can be inferred that majority of

the respondents under the type of customers

are students

77%

16%

7%

Age

18-25

26-35

35-above

82%

18%

0%

Gender

Female

Male



Qualification of the respondents

Qualification Percentage

Under graduation 55.90%

Post-graduation 39.70%

Professional 4.40%

Others Nill

From the above table it can be analysed as

55.9% of the respondents are under

graduates, 39.7% of the respondents are post

graduate and remaining 4.4% of the

respondents are professionals. Therefore it

can be inferred as majority of the respondents

are perusing higher education.

Lifestyle of the respondents

Life stage Percentage

Young and dependent 52.90%

Young and independent 36.80%

less young and independent 1.50%

Family with children at

home 8.80%


52.90% of respondents are young and

dependent, 36.8%of the respondents are

young and independent, 8.8% of respondents

are having family with children and the

remaining 1.5% of respondents are less

young and independent. Therefore it can be

inferred as majority of the respondents are

young and dependent.

Experience of the respondent in buying

the products through internet

Response Percentage

Yes 100%

No 0


100% of the respondents have experience

purchasing products through internet.

Therefore it can be inferred as the entire

respondent have experienced purchasing

products through internet.

60%

34%

6% 0%

Type of customers

Student

Professional

Housewife

Retired

56%40%

4%

Qualification

Under

graduation

Post

graduation

Professional

53%37%

1%9%

Life style

Young and

dependent

Young and

independent

less young and

independent

Family with

children at

home

100%

0%0%

Responses

Yes

No



Frequency of purchase through internet

by the respondent

Response Percentage

Frequently 27.90%

Occasionally 38.20%

Rarely 32.40%

Used internet only few

times 1.50%

Never used internet Nill

From the above table it can be stated that

38.2% respondents purchase occasionally,

32.4% of the respondents purchase rarely

through internet, 27.9% of respondents are

frequent online purchasers and the remaining

1.5% of the respondents are rarely exposed to

the use of internet for purchase. Therefore it

can be inferred as majority of the respondents

purchase occasionally.

Awareness of digital marketing among

the respondents

Response Percentage

Yes 97.10% No 2.90%


97.1% of the respondents are aware about

digital marketing and remaining 2.9% of the

respondent are unaware about digital

marketing. Therefore it can be inferred as the

majority of the respondents are aware about

digital marketing.

Opinion of the respondents on digital

marketing over traditional marketing

Response Percentage

Good 55.90%

Better 44.10%

Bad Nill


55.9% of the respondents are having a good

opinion on digital marketing and remaining

44.1% of the respondents do not have good

opinion on digital marketing over traditional

marketing. Therefore it can be inferred as

majority of the have positive opinion on

digital marketing.

28%

38%

32%

2% 0%

Responses

Frequently

Occasionally

Rarely

Used internet

only few timesNever used

internet

97%

3%0%

Responses

Yes

No

56%

44%

0%

Responses

Good

Better

Bad



Perception of the respondents on the

effectiveness of the digital marketing

promotions

Response Percentage

Yes 67.60%

No 4.40%

May be 28.00%


67.6% of the respondents feel digital

marketing is effective, 28% are contradicting

towards the effectiveness of digital marketing

promotions and remaining 4.4% of

respondents perceive digital marketing is

ineffective. Therefore it can be inferred as

majority of the respondents’ feel digital

marketing is effective as a promotional

marketing tool.

Perception of the respondents on effective

digital media platform for promotion.

Response Percentage

Facebook 70.60%

YouTube 52.90%

Instagram 73.50%

Website 29.40%

E Mail 25%


73.5% of the respondents feel Instagram as

effective digital media platform, 70.6% of the

respondents feel Facebook as an effective

promotional platform, 52.9% of the

respondents feel you tube as an effective

media, 29.4 % of the respondents feel

websites as an effective platform and the

remaining 25% feel email marketing as

effective platform. Therefore it can be

inferred as majority of the respondents feel

Instagram and Facebook as an effective

digital media platform for promotion.

Whether respondents are beneficial

through digital marketing

Response Percentage

Yes 83.80%

No 16.20%


83.3% of the respondents have benefited

through digital marketing and remaining

16.2% have a perception that digital

marketing is non-beneficial. Therefore it can

be inferred as majority of the respondent feel

digital marketing is beneficial to them.

68%4%

28%

Responses

Yes

No

May be

48

36

50

20

17

70.60%

52.90%

73.50%

29.40%

25%

0 20 40 60

Facebook

Youtube

Instagram

Website

E Mail

Med

ia t

oo

ls

Response

84%

16%

0%

Responses

Yes

No



Respondent’s perception on the area of

benefit from digital marketing.

Response Percentage

Availability of

information 52.50%

Creates awareness 41%

Relatebility 6.50%

From the above the table it can be analysed

as 52.5% of the respondent feel digital

marketing is beneficial because of

availability of information, 41% of the

respondent feel digital marketing creates

awareness and the remaining 6.5% of the

respondents feel digital marketing helps them

to relate it with their needs and wants.

Therefore it can be inferred as majority of the

respondents feel digital marketing provides

them with good information which makes

them feel digital marketing is beneficial.

Table no 14 showing the perception of

respondents towards digital marketing as

a new trend

Response Percentage

Yes 94.10%

No 5.90%

From the above the table it can be analysed

as 94.1% of the respondents perceive digital

marketing as a new trend and remaining 5.9%

of the respondents feel digital marketing as

not a new trend. Therefore it can be inferred

as the majority of the respondents perceive

that digital marketing to be a new trend.

Perception of respondents towards an

attractive feature of digital marketing as

a platform for shopping or promotion


38.5% of the respondents feeling convenient

in shopping, 24.6% of the respondents feel

digital marketing helps in easy to purchase,

23.1% feel digital marketing provide wide

variety of the products, 9.2% feels offers

availability in digital shopping is attractive

and the remaining 4.6% feel availability of

products on time as attractive feature.


respondents feel convenient in digital

shopping as an attractive feature of digital

marketing as a platform for shopping and

promotion.

56%

44%

0%

Responses

Availability ofinformation

Createsawareness

Relatebility

94%

6%0%

Responses

Yes

No

Response Percentage

Convenient 38.50%

Easy to purchase 24.60%

Availability 4.60%

Offers 9.20%

Wide variety of products 23.10%



Perception of the respondents on the

statement digital marketing

advertisements are effective

Response Percentage

Yes 77.90%

No 22.10%


77.9% of the respondents agree with digital

marketing advertisement are effective and

remaining 22.1% of the respondents are not

agree with the statement. Therefore it can be

inferred as majority of the respondents

perceive that digital marketing

advertisements are effective.

Reasons for ineffectiveness of digital

marketing advertisements of the

respondents

Response Percentage

Wrong timing 33.30%

Irritating 26.70%

Not relevant 40.00%


40% of the respondents feel the

advertisements on digital media platforms are

irrelevant to the customers, 33.3% of the

respondents feel time slots chosen to

advertisement by them is a reason for

ineffectiveness and the remaining 26.7% of

the respondents feel digital advertisements

are irritating. Therefore it can be inferred as

irrelevant advertisements are the major

reason for ineffectiveness of digital media

advertisement.

Opinions of respondents to make digital

marketing advertisement effective.

Response Percentage

Suitable time schedule 32.40%

Attractive music to hear

and to watch video 23.50%

Relevancy 17.60%

Not disturbing the work

in between 26.50%

38%

25%5%

9%

23%

Responses

Convenient

Easy topurchaseAvailability

Offers

Wide variety ofproducts

78%

22%

0%

Responses

Yes

No

33%

27%

40%

Responses

Wrongtiming

Irritating

Not relevant



From the above table it can be stated that

32.4% of the respondents feel suitable time

schedule can make digital media

advertisement effective, 26.5% of the

respondents feel understanding the work

schedules of the customers and displaying

advertisement based on that can make it more

effective, 23.5% of the respondents feel using

attractive music and videos can make digital

advertisement effective and the remaining

17.6% of the respondents feel understanding

customer needs and displaying relevant

advertisement will make digital marketing

advertisement effective. Therefore it can be

inferred as majority of the respondents feel

choosing suitable time schedule to display

advertisements will make digital marketing

advertisement more effective.

Findings

• Majority of the respondents are young

and dependent. • Almost all the respondents as customers

have experienced purchasing products

through the internet and the majority of

them purchase occasionally through

internet • Most of the respondents are aware of

digital marketing and have a positive

opinion on digital marketing. • Majority of the respondents’ feel digital

marketing is effective as a promotional

marketing tool. FaceBook and Instagram

are an effective digital media platform for

promotion • Most of the respondents’ feel digital

marketing is beneficial to them and the

majority of them feel the availability of

information makes digital marketing

effective. • Majority of the respondents perceive that

digital marketing to be a new trend in the

field of marketing. • Majority of the respondents perceive that

digital marketing advertisements are

effective due to convenience in shopping

as an attractive feature of digital

marketing - a platform for shopping and

promotion • The respondents feel irrelevant

advertisements are the major reason for

the ineffectiveness of digital media

advertisement. • Most of the respondents feel choosing a

suitable time schedule and relevant

advertisements will make digital

marketing advertisement more effective.

Recommendations

• The respondents who aren’t using the

internet for shopping can adopt to this

advancement to experience digital

shopping as it is more convenient and

easy to purchase. And the marketers can

make it more attractive and provide the

right benefits to the right customers at the

right time.

• The digital marketers should focus on

customers’ expectation and understand

their perception towards digital

marketing as a promotional tool. So that

the marketers can avoid confusions and

problems, which will lead to fulfilling

customer’s expectations and what they

receive.

• Most of the respondents’ feel digital

marketing is ineffective, the reasons like

wrong time schedule chosen by marketers,

32%

24%18%

26%

ResponsesSuitable time

schedule

attractive music

to hear and to

watch videoRelevancy

Not disturbing

the work in

between



irrelevant advertisements the customers and

they also feel digital advertisements are

irritating. This can be overcome through

proper market research by the marketers to

understand customer requirements.

• Most of the respondents feel changes like

choosing suitable time schedule and relevant

advertisements will make digital marketing

advertisement more effective. So it can be

suggested that the markets should have a

clear cut study on problems faced by

customers in digital marketing as a tool for

promotions and this will be a challenge to

digital marketers to make digital marketing

more effective.

Conclusion

The purpose of the study is to highlight

digital marketing and its challenges. The

study seeks to provide the ability to

visualize how digital marketing strategies

are formulated and perceived by consumer

segments. The study seeks to offer key

indicators of effective digital marketing

strategies. Advertising in the digital media

were taken into account. For this purpose,

advertisements in the digital media have been

taken into consideration.

Digital marketing has emerged as a trending

word in last few years. E-Commerce has re-

regularised the concept of business from

physical aspect of delivery to virtual aspects

of marketing and selling. Digital activities are

an increasingly important part of any

marketing and sales strategy. There is a

paradigm of shift in how business is

conducted from traditional model to E-

commerce model. There is a huge expansion

of digital marketing and promotion of

products and markets but the players are still

facing the challenge in this field with tough

competitions. Today, most companies are

either thinking about or pressing ahead with

digital change initiatives. Every company has

a website, and few marketing strategies are

signed off without incorporating social

media. Certainly, social media is a critical

component of any digital strategy, but a

holistic response to the digital shift must go

much further.

Digital is changing the world, and progress

is not linear. In a world where a Smartphone

is no longer just a Smartphone, but a potential

revolution, we invite organisations to explore

what digital advances mean for them and

their stakeholders. We support the opinion of

executives who view digital much more as an

opportunity to be tapped than as a risk to

guard against. Not every digital initiative will

work for every organisation, and it is

important to assess capability and capacity

for change before deploying a digital

strategy. In general, though, there is more

holistic initiative, the greater the chance of

success. We believe that those who act

holistically, and act now, stand to gain the

greatest competitive advantage

Limitations of the study

1. The research paper limits to the

challenges faced in digital marketing by

the customers.

2. The expectations from customers and

their perceptions

References

https://pdfs.semanticscholar.org/099d/76c9c

faa21a479154f8b06a6507334a74a74.pdf

http://iaetsdjaras.org/gallery/23-january-

402.pdf

https://www.researchgate.net/publication/32

6380915_DIGITAL_MARKETING_AND_

ITS_CHALLENGES

[i] Wiebke Etal (2013) “study on digital

marketing” journal of marketing AMA/MSI,

India [ii] Don E Schiltz, James Peltier (2013)

“Challenges of social media marketing”,

Journal of advertising research. India. [iii] Ayaz S. Peerbhoy (2010), “Digital

marketing and its challenges”, Journal of

Airo international research, Chennai, Tamil

Nadu

https://pdfs.semanticscholar.org/099d/76c9cfaa21a479154f8b06a6507334a74a74.pdf

https://pdfs.semanticscholar.org/099d/76c9cfaa21a479154f8b06a6507334a74a74.pdf

http://iaetsdjaras.org/gallery/23-january-402.pdf

http://iaetsdjaras.org/gallery/23-january-402.pdf

https://www.researchgate.net/publication/326380915_DIGITAL_MARKETING_AND_ITS_CHALLENGES



https://outlook.live.com/mail/0/inbox#_ednref1





A study of the effectiveness of social media marketing compared to traditional marketing

methods

Nousheen Imran Student, M.Com ‘IB’, Mount Carmel College, Autonomous,


Email id: [email protected] Mob: 9980796167

Maseeha Arjumand Student, M.Com ‘IB’, Mount Carmel College, Autonomous,


Email id: [email protected]

[email protected] Mob:: 8892920894

Abstract

In this modern era of innovative technology and increasing social media apps and websites,

every business strives to reach to its potential customers by marketing on various social

media websites. Social media marketing is a form of internet marketing which uses social

networking websites or apps as a marketing tool. The main aim of companies adopting social

media marketing is to produce content that users will share with their social network to help

the company increase brand exposure and broaden customer reach. Social media has become ubiquitous and most significant for long range interpersonal

communication; content sharing and web-based getting to. Because of its dependability,

consistency and quick includes, web-based life opens a wide place for organizations, and for

example, web-based advertising. Advertising which happens by means of web-based life is

known as internet-based life promoting. Online life showcasing has made feasible for

organizations to reach focused on buyers effectively, viably and immediately. Other than

that, web-based social networking promoting likewise faces a few difficulties in the field.

Social media marketing helps the customers to know the brands, it’s not just one-way

communication from business to customers but also it involves customer’s engagement.

Social media has progressed from essentially giving a stage to people to remain in contact

with their family and friends. Presently it is where buyers can get familiar with their

preferred organizations and the items they sell. Advertisers and retailers are using these sites

as another approach to arrive at buyers and give another approach to shop. "Technology-

related improvements have expanded advertisers' capacity to arrive at customers through

new touchpoints". A sample size of 100 respondents was chosen, Google forms were

circulated to collect the primary data. Through the study, it was found that most of the

customers are aware of the social media marketing and it was found that Social Media

Marketing has helped respondents in making a purchase decision and majorly respondents

accept Social Media Marketing rather than the traditional methods.

Key words: Social Media, Marketing Tool, Two Way Communication, Retailers,

Advertising, Traditional Media, Technology.




Introduction

Social media sites have turned out to be

progressively well known and are being

utilized by an ever-increasing number of

individuals each and every day. A few

organizations have discovered that utilizing

social media platform as a stage to bring their

business can be extremely viable. Social media marketing is a substantial

method for organizations of all sizes to arrive

at prospects and clients. The clients as of now

are cooperating with brands through social

networking, and in case if the marketers are

not talking directly to the group of spectators

through social sites like Facebook, Twitter,

Instagram, and Pinterest then the marketer will

be missing out the opportunity presented to

.them. Marketing on social media can lead to

a phenomenon of accomplishment to any

business, making dedicated brand advocates

and also driving leads and sales.

Social media marketing comprises activities

such as posting text and picture updates,

videos, and other content that drives crowd

commitment, as well as paid social media

publicizing.

Social media marketing can help with various

objectives, for example,

• Expanding website traffic

• Building transformations

• Raising brand awareness

• Creating a brand identity and positive

brand affiliation

• Improving communication and

association with key spectators.

• The greater and increasingly engaged

your audience is on social media

networks, the simpler it will be for you

to accomplish every other marketing

objective on your list.

Literature review

Social media are likely to develop marketing

strategies in firms through trust-building

mechanisms and affecting customers’

intention to buy online products[i]. Through

FaceBook companies can increase brand

awareness by advertising or creating their own

profile where information can be shared[ii].

Instagram has taken a new advertising service

to use, which enables marketers to buy

advertisement space. However, this scene is

not yet available in the Nordic

countries[iii].Advertising on Twitter is

efficient when a company wants to, for

example, get more traffic on their website[iv].

Social media is a group of Internet-based

applications that build on the ideological and

technological foundations of Web 2.0 and

allow the creation and exchange of user-

generated content[v]. Social media is a set of

online word of mouth forums which includes

blogs, discussion boards, forums or social

networks to name a few[vi]. Media sharing

sites (i.e. YouTube, Picassa and Flickr) or

blogging platforms (i.e. blogspot, WordPress)

are also members of this ecosystem called

social media[vii]. Social media marketing to

the relationship marketing where firms need to

shift from “trying to sell” to “making

connections” with the consumers[viii]. Social

media marketing as the process that empowers

individuals to promote their websites,

products, or services through online social

channels and tap into a much larger

community that may not have been available

via traditional channels[ix]. A Facebook page

or Twitter account can notify all its followers

of specific subject quickly and

simultaneously[x].











Statement of problem

Few Companies are still facing challenges using a

traditional form of advertising. The role of social

media and its impact on branding. The challenges

that companies face by using social media today for

their business purpose and how they can be

managed or reduced. Determining whether

traditional advertising channels are still relevant in

the era of social media. Determining whether social

media marketing serves as the best tool for creating

brand awareness.

Objectives of study

• The aim of this research is to study how

effective has social media platform been to every

business in creating its brand awareness and

promoting its products and it has also been

effective to those companies venturing into

social media to increase their brand visibility

through social media marketing.

• To study why traditional methods of

advertising (newspapers, televisions, radio) are

not that effective now due to the rise of social

media.

Scope of the study

The scope of the study has been limited to

social media marketing and its effectiveness.

The study has been confined to all the age

groups and to every individual. It includes

marketing on all social media platforms.

Research methodology

The research on the effectiveness of social

media marketing was based on both primary

and secondary data. The survey was conducted

through a questionnaire and it was done based

on the convenience sample technique. A sample

size of 123 was considered to carry out the

research. Secondary data was collected from

online websites. This data was tabulated and

analyzed. Findings have been summarized and

recommendations have been made.

Analysis and interpretation

Popular social media platforms

1. Using Facebook for Social Media

Marketing

Facebook must possess an active social media

marketing strategy and promoting

methodology. Begin by making a Facebook

Business Fan Page. One must give cautious

consideration to layout, as the visual part is a

key aspect of the Facebook experience.

Facebook is a spot where people go to relax and

talk with companions, so the tone should be

kept light and friendly. And also remember

natural reach on Facebook can be amazingly

constrained, so consider cost-effective

Facebook ad technique, which can have a big

impact on an organic Facebook presence as

well.

2. Using Google+ for Social Media

Marketing

Google+ entered as a Facebook competitor, but

it now serves a more niche audience. It doesn’t

work for everyone but few of them are still

engaged in using google+. On Google+ one can

upload and also share the videos, photos and

links and view their +1s. Google+ circles, also

permit to divide your followers into minor

groups, allowing them to share information

with some followers while keeping others

aside. For example, one might make a “super-

fan” circle, and share special discounts and

exclusive offers only with that circle.

3. Using Pinterest for Social Media

Marketing

Pinterest is growing drastically as being one of

the social media marketing trends. Pinterest’s

seems to be perfect for a retailer but it’s helpful

for anyone and everyone from using Pinterest

for social media cause or sales-driving advt.

Pinterest enables every business to advertise the

products that they offer while also developing

brand personality using unique pin boards.

4. Using Twitter for Social Media

Marketing

Twitter is one of the fastest social media

marketing tools where one can spread their

updates across the web. An individual needs to

follow tweeters in their industry and they

should be able to gain a balanced flow of

followers in return. An organization has to

combine its official tweets about offers,

discounts and also brand-building tweets. And

he/she should be alert to retweet when the

customer says something good about them and

they should also never forget to answer

people’s questions wherever necessary. Using

Twitter as social media marketing gives great

importance to communication, so one should be

sure to interact as much as possible to foster and

build their following.

5. Using LinkedIn for Social Media

Marketing

LinkedIn is one of the professional social media

sites where LinkedIn Groups is a great place for

entering into a professional conversation with

people in similar industries and it provides to

share the content with compatible individuals.

It works well for posting jobs and also in

employee networking.

6. Using YouTube for Social Media Marketing YouTube is the best place for making a video and also

sharing its content, and it’s the most powerful social

media marketing tool. A lot of businesses put their efforts

in creating video content with the aim of having their

video “go viral,” and get lot of subscribers and earn

through every video which is been posted.

Advantages of social media marketing:

1. Increased Brand Awareness

In the present world every company use a cell

phone, desktop or a laptop, and they make use of

social media sites for executing their social media

marketing plan and strategies and this improves its

product recognition and creates brand awareness so

that every firm connects with a larger group of their

spectators. To begin one can always demand their

Instagram followers and companions to like and

share their post or page. In order to execute their

marketing plan one needs to be active on social

media.

2. Better consumer loyalty

It is the human instinct to stand out. Setting up social

media marketing for advertising products to clients.

Clients do truly acknowledge when they realize that

particular business is up to the mark and they give

comments. It drives any business to be more attentive

and caring. As an advertiser, this puts an individual at an

advantage position since more clients will be attracted.

3. Cost effective

Social media marketing is the most cost effective

method of promoting any product. Making another

profile and entering in is free for every social

media. Those that usually charge, the amount is

minute compared to the overall returns. Saving on

advertisement expenses ensure greater returns and

investments.

Disadvantages of social media marketing:

1. Trade mark and copyright issues

It is crucial for organizations to ensure their own

trademarks and copyrights when they come across

social media to endorse their brands and products.

Company gives great importance to their brands and

also trademarks as same as the products or services

that they offer.

2. Trust, privacy and security issues

By using social media one focuses on

promoting its brand, products, or services but

that might associate with trust, privacy and

data security issues. It is very important for

every organization to be concerned about these

issues and take necessary measures in

maintaining personal data or official data.

3. Negative feedbacks

When an individual comes up with

a marketing campaign he fails in it by

receiving negative post responses that is

unhappy customers post offensive comments,

pictures or anything as such and a marketer

cannot do much in order to prevent these

occurrences. These negative feedbacks make a

marketer to lose its interest in promoting its

brand or product.

4. Customer preferences

There are lots of customers who still prefer in

purchasing the product in hand and not

through any social media site. For example

Social media marketing enables a customer to

view how a phone looks like and its

specifications but most of them prefer having

a look at the phone in the store to get hands-on

experience.

5. Keeping up to date

Every Individual who thinks of marketing its

product on social media must be focused on

updating the information and that requires

constant attention and monitoring to ensure

that their marketing strategy does not look out-

of-date.

6. Vulnerability to fraudulent activities

There are a lot of illegal or unauthorized

websites which looks alike to original websites

and try stealing customer’s money in one or

the other way and also confidential data can be

stolen by hackers Spamming also takes place

quite often which is also the biggest challenges

for social media marketing. So they should

give their attention to all of these in order to

avoid any fraudulent activity.

7. Lack of human touch

Social media marketing lacks the human touch

that is involved when a customer buys a product

from a salesperson. This hampers the prospects

of relationship building which plays an

important part in repeat sales and word-of-

mouth publicity.

8. Depending upon technology

Social media marketing depends on technology

to a greater extent which is liable to technical

faults. For example, if a customer clicks on your

advertisement but due to a technical glitch

when he is unable to process further to buy the

product, he may easily get irritated and switch

onto or take his business somewhere else.

Awareness of social media marketing

Interpretation: From the above mentioned

pie chart it is seen that 95.1% of them are

aware of social media marketing whereas

only 4.9% of the respondents are unaware

of the concept. Therefore we can infer

that majority of them are familiar with

social media marketing as that is the on

going trend in the market followed by

majority of them.

Awareness of social media based on

the age group of the respondents

AGE GROUP PERCENTAGE

18-21 18.70%

22-25 44.70%

Above 25 36.60%

95%

5%

Awareness about social

media marketing

Yes No

19%

45%

36%

Age group

18-21 22-25 Above 25

Interpretation: From the above pie chart it is

seen that 18.70% of the respondents are in the

age group of 18-21, 44.70% of them are in the

age group of 22-25 and the remaining 36.60%

belong to the age group of 25 and above.


respondents are from the age group of 22-25

who are aware about social media marketing

as those gains much of the attention of youth

and is helpful in many ways.

Qualifications pursued by

respondents.

Interpretation: Based on the analysis

done we see that majority of them who

have responded to our questionnaire are

from PG background.

Which social media sites or apps do

respondents use quite often for marketing.

Interpretation: From the above bar graph it is

inferred that majority of respondents use

Instagram as a social media platform for

marketing as they can promote their products

or services in a quick manner and because of its

viral nature whereas others use Facebook,

Twitter, LinkedIn, YouTube and others.

Does respondents see the advertisements on

the sites that they daily interact with.

Interpretation : From the above bar graph it is

said that 78.9% respondents watch the

advertisements on social media sites that they

daily deal with as their interest lies in it and only

7.30% of them don’t watch the advertisements

and 13.80% of them may or may not see the

advertisements.

If yes which form of advertisements have

respondents looked into.

Interpretation: Therefore it is seen that

majority of them come across with running

ads rather than other forms such as fixed

advertisements, pop ups and others. Based

on the survey done 67.20% of the

respondents mostly encounter with running

ads , 62.90% with pop up ads, 41.40% with

fixed advertisements and others just by

7.80%.

8%

37%46%

9%

QUALIFICATION

PUC UG PG Others

020406080

100

Social media Apps used by

Respondents for marketing

0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

Yes No May Be

7.80%

67.20%

41.40%

62.90%

Others

Running Ads

Fixed Advertisements

Pop-ups

Form of advertisements

respondents come across with

Have such ads been beneficial for the

respondents in their purchases decision.

Interpretation: From the above pie chart we

can say that ads have been beneficial for

majority of the respondents i.e 72% are

benefited wherein the ads have met their

expectations, whereas only for few of them

i.e for 29% it’s not that helpful where

customers feel unsatisfied with their

purchase decision.

If yes, what kind of information has it

conveyed to the respondents that

helped them in their purchase

decisions.

Interpretation: From the above bar

graph we see that information regarding

deals discounts and offers have helped

53.70% of the respondents substantially

in their purchase decisions whereas

information in relation to the product have

attracted 53% of the respondents, 14.60%

focus on information like point of sale

address and just 13% gives attention to

other kind of information.

In comparison of traditional and social

media which platform has helped an

individual in marketing and also for

buyers to make a purchase decision

Interpretation: In order to conclude

majority of them i.e 73.20 % prefer social

media marketing rather than traditional

media which is just 27%.

Findings

• It is inferred that the majority of them are

familiar with social media marketing as that

is the ongoing trend in the market followed

by the majority of them.

• It is found that majority of the respondents

from the age group of 22-25 are aware of

social media marketing as social media is

been used much by that age group as they are

much interested in that and is also helpful in

many ways.

• It is also found that the majority of

respondents use Instagram as a social media

platform for marketing as they can promote

their products or services in a quick manner

by posting their product content, images, and

videos on their Instagram page.

Communication plays a major role here.

• Majority of the respondents encounter with

the running ads.

• 72% of the respondents are benefited by

various ads.

• We also see that information regarding deals

discounts and offers have helped 53.70% of

the respondents substantially in their

purchase decision.

• Respondents feel that Advertising on social

media is less time consuming and increases

brand visibility.

71%

29%

Yes No

53%

14.60%

53.70%

13%

27%

73%

Sales

Traditional media Social Media

• Through social media marketing the

individuals get to know the brands, it’s not

just one way communication from business

to customers but also it involves customer’s

engagement.

• Effectiveness of social media as a marketing

tool has helped in knowing the customer's

taste preferences and demand personally.

• And lastly, it is seen that 73.20 % prefer

social media marketing rather than

traditional media which is just 27%. In the

near future, there seems to be a paradigm

shift from traditional advertising to social

media platforms.

Recommendations

• Since this is a very important shift in the

marketing arena it is recommended that there

should be furthermore research done to study

this phenomenon to understand detailed aspect.

There is a huge potential for every company in

social media so they must focus on expanding

their social media strategies to a greater extent

• Every organization who thinks of social media

marketing should implement strategies like

online surveys and blogs for product reviews

which enables the company to communicate

effectively that enhances the level at which

individuals want to engage or associate with

the brand

• Engaging customers online to ask them for

suggestions would also give the company an

insight to adapt to the latest methodology of

innovation

• Companies that are still using a traditional form

of advertising can adapt to social media

marketing which consumes lesser time, the

lesser cost for advertising, and an increase in

sales.

Conclusion

By doing this research we saw how social media is

slowly becoming a marketing tool for every

company and how it's grabbing the attention of

everyone. By doing a survey we understood that

majority of the students and others prefer social

media marketing rather than the traditional form.

Through social media, the information reaches to

every individual regarding the looks, features or

specifications of the product etc. Social media

marketing platforms can pose a threat as well as an

opportunity for every company out there who wants

to advertise or publicize their product or service

online. The social network effect can also influence

the purchase decision because of its viral nature.

Effectiveness of the traditional form of marketing is

falling henceforth social media is considered to be

an effective tool for marketing.


• The analysis and findings are based on

the responses of respondents and is

assumed to be accurate.

• The findings of the study cannot be

generalized to other areas of research.

References

• [i] Liang & Turban (2011)

• [ii] Castronovo and Huang (2012),

123; Some works • [iii] Kokalitcheva 2015, Business

Instagram 2015; Kokalitcheva

(2015)

• [iv] Castronovo and Huang (2012),

124; Some works

• [v] Kaplan and Haenlein (2010)

• [vi] Mangold and Faulds (2009)

• [vii] Kietzmann et al.(2011).

• [viii] Gordhamer (2009)

• [ix] Weinberg (2009)

• [x] Berselli, Burger, & Close,

2012.

• https://www.wordstream.com/soc

ial-media-marketing










https://www.wordstream.com/social-media-marketing

https://www.wordstream.com/social-media-marketing

A study on green marketing paving way for banking sectors towards environment sustainability __________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Abida Azim,




Contact no: 8746999074

Keerthana. N




Contact no: 9845229609

Abstract

The banking system is an organised network of financial institutions providing services to the

people and institutions. The main functions of banks at present scenario provide numerous

advanced customised based services due to rising demands. For all such services,

documentation plays a very important role and the same has been recorded on papers.

Paper is used for the major part of the banking processes and services which in return is affecting

the environment to a greater extent. To avoid the overuse of paper especially in their marketing

department, banks are adopting green marketing strategies in their green banking systems for

having a paper-free record-keeping process and a sustainable environment. Green marketing

refers to marketing activities involved in the process of selling products or services with the

main aim of protecting the environment.

This the study delves with the main objective of the general understanding of green marketing

strategies and techniques in the banking sector along with its impact on the customers of the

bank. The structured questionnaire has been disturbed (n=100) to gather information relating to

the research. Thus, based on the responses received it was found that almost all the banking

sectors are making this shift- use of paper to paperless processes and the customers are also

satisfied with this evolution and are taking steps towards sustaining the environment.

Keywords: Banking, Green Banking, Green Marketing, Sustainability, Customers


A study on green marketing paving way for banking sectors towards environment sustainability

Introduction

Manufacturing goods and services which are

sustainable to the environment and the process

of marketing the same in an eco-friendly

manner is known as Green Marketing.

Companies are making green marketing

decisions relating to the various processes of

the company’s products and services. In a

broader spectrum environmental, societal and

legal criterion are included in these steps

undertaken by the firm. For the producers,

green marketing includes using

environmentally friendly practices in the

production process like using renewable

energy, reduction of emissions, recycling

water and others. This concept attracts the

attention of investors because it shows the

companies social responsibility, good

corporate governance and sustainability.

Green marketing as a concept is evolving not

only in the tangible product lines but also in the

service sectors and one among them is the

banking sectors. The main reasons for the

adaptation of this new concept even in this

sector is because of economic and financial

crises along with climatic and environmental

issues which stands as a major challenge

towards creating a better future. Therefore,

banking sectors which are involved socially

are evolving as a well-designed set of

principles in the financial services market

because they provide monetarily related

services keeping in mind the environmental

issues and also having a transparent reporting

of Corporate Social Responsibility.

Banks have always relied on the use of papers

for documentation. This comes under the

traditional system of banking. In the present

system of modern banking, the paper has been

replaced with digital means of documentation

due to advancement in technology such as

online banking, paperless bank statements and

similar transactions. Energy resources are

consumed in large amounts by the banking

sectors for the functioning of their various

systems, operations of ATMs and computers,

etc. Installing solar power panels or even using

wind energy are some of the alternatives.

Review of literature

Social Responsibility Issues, Implications and

Implementation that:-Over the past decade

there has been an increasing awareness of the

many ways that businesses affect the ecology

of the planet. Most of the attention, however,

has been directed towards activities of

organizations in the manufacturing sector of

the economy. This argues that service

organizations have social responsibilities in

the preservation of the environment, too. It

presents the importance of a product, such as

longevity or specific marketing, of green

practices among services, a framework to

describe green activities across the service

sector, and a pragmatic means to implement a

green programme for service organizations.

In light of current market conditions, the

financial services industry has been reshaped,

requiring new marketing knowledge to provide

guidelines for successful practice. To that end,

corporate social responsibility, green

marketing and a green brand image (GBI) have

attracted considerable interest in the banking

sector, although no framework has yet been

established relating these constructs to one

another. In this article, the authors present

exploratory research as a basis for developing

a model of green bank marketing. The model

was tested to confirm the dimensions of green

bank marketing and investigate its impact on a

GBI, thus providing statistical evidence of the

relationship between the two variables.

Green banking refers to the banking business

managed in such a manner that helps for an

overall reduction of external carbon emission

and internal carbon footprint. The present

study attempts to understand the use of Green

Banking Products in the banking sector and

examine the green banking initiatives by top

three Public and Private Sector Banks in India.

The study concluded that both banks have

effectively initiated green banking initiative.

Comparatively, Public sector banks have

shown better performance in terms of Green

banking initiatives.

Industrialization approximately the globe has

triggered the detection of ever-increasing

needs and demands of the population and it has

become symbolic of prosperity and

development of an economy. On the other

hand, it has resulted in the exploitation of the

natural environment, which in turn has

disturbed the ecological balance. The

disturbance in ecological balance has

adversely affected the human and its

surrounding environment. The recent

industrial disasters and natural disaster that

occurred in the last three decades were directly

or indirectly linked with the uneven

industrialization. This, in turn, has raised an

important issue of environmental protection

among environmentalists, government and

organization from all over the world.

Environmental sustainability and sustainable

development have become an important

agenda in the international community. The

main objective of this paper is to deeply

understand how Indian banks are responding

to environmental turbulence and to provide an

overview of their action in view of Go Green

banking adoption & its advantages.

Preservation of the environment and

Sustainable development are actually

recognized internationally as overriding

imperatives to safeguard our world from the

ravages inflicted onto it by mankind. Green

Banking is a real way to sustainable economic

growth. Banks play a crucial role in economic

development and they are well equipped to

attempt Green Banking activities. A fresh

rising mantra within the bank sector is

certainly going green. The word Green refers

to a wide range of sociable, environmental and

ethical dimensions. Green Banking is one of

banking activities that focus on socio monetary

and environmental (Ecological) factors with a

try to protect the surroundings and conserve

natural resources. Since banking institutions

are one of the key professional establishments

that connect to the masses, they could adopt

renewable activities of their organizations and

affect their customers to come about the

environment. Green Bank is a multi-

stakeholders undertaking where bankers have

to work meticulously with administration,

NGOs, IGOS, Central Standard bank,

consumers and business neighbourhoods to

attain the goal. Green initiatives by banks

include internal environment management,

environmental financing/product ecology,

environmental reporting and disclosure,

adopting and formulating guidelines and

promoting other stakeholders.

In recent years, both academics and banking

professionals are paying more attention to the

green banking concept due to its significant

influence on environment management in the

banking context. In Sri Lanka, People’s bank

adapted to the green banking practices in 2015

with YES savings accounts as the first state

sector bank which introduced the green

banking products to their customers. Even

though there are so many convenient facilities

and benefits available with green banking in

People’s Bank since 2015, the problem is that

there is less customers’ intention to use these

green banking products. Thus this study aims

to investigate factors affecting the customers’

intention to use green banking products in

people’s Bank. Data were collected by

distributing a structured questionnaire among

the sample of 371 customers in the People’s

bank in the Kandy branch. Customers’

purchase intention has been considered as the

dependent variable and green product

awareness, green product trust, green product

image, green benefits, green perceived value

and green product security & privacy have

been considered as independent variables. The

results indicate that there are significant

positive effects of green product awareness,

green product benefits, green perceived value

and green product privacy & security on the

customers’ intention while there are significant

negative effects of the green product image

and green product trust on the customers’

intention to use green banking products in

People’s bank.

Research Problem

A study on green marketing paving way for

banking sectors towards environment

sustainability

Objectives

1. To understand the concept of green

marketing in green banking.

2. To study and analyse the green banking

strategies with special reference to green

marketing,

3. To know the customer perception towards

green marketing and its impact on services.

4. To analyse the impact of green marketing

strategies on environment sustainability.

5. To offer few suggestions with respect to

the study findings.

Methodology

Under the study ‘Green Marketing Paving

Way for Banking Sectors towards

Environment Sustainability’, a structured

questionnaire was used to collect and analyze

the views from the sample group. The

questionnaire was administered to a group of

n=100 respondents using online Google Forms

through simple random sampling technique.

The sample group included bank consumers

across age groups having accounts in various

banks. The survey consisted of 3 demographic

questions and 8 subject related questions.

Analysis technique

The data collected from the 100 respondents

are analysed using the percentage analysis

method. This analysis has helped to draw the

various conclusions and suggestions of the

study.

Data analysis and interpretation

The following analysis has been drawn from

the respondents who are customers of both

public sector and private sector banks across

Bangalore. They have been regular customers

in their respective banks from 1 year and more

and half of the respondents are having at least

1 account in the bank.

Gender profile of the respondents

Gender No. of

respondents Percentage

Male 23 23%

Female 75 75%

Others 2 2%

TOTAL 100 100%

Age Groups

Groups No. of


18-30 69 69%

30- 50 20 20%

More

than 50 11 11%

TOTAL 100 100%

Employment status of the respondents

Status No. Of


Student 57 57%

Employed 34 34%

Unemployed 9 9%

TOTAL 100 100%

At present banks are taking a step towards

preserving the environment.

Interpretation:

About 81% of the respondents feel that banks

are taking a step towards environmental

preservation. These initiatives are from the

perspective of the customers who are able to

understand that the bank is taking actions

towards the same. The remaining 19% of the

respondents fell that no such initiative or very

less action is taken up by the banks in this

aspect.

Solar power should be used for operating

the ATMs in India.

Interpretation:

94% of the respondents feel that it is a great

initiative to be taken up by the banks in the use

of sustainable energy like solar power for

ATM’s across the countries. The remaining

6% are not agreeing to this idea keeping mind

the challenges like the costs involved and the

level of reliability of this resource.

Forgoing the Balance Slip during an ATM

transaction is considered as a step taken

towards environment sustainability.

Interpretation:

87% of the respondents fell that it is

completely alright to refrain from requesting

for a balance slip after a transaction at an

ATM. They feel that it is a complete waste of

paper as most of them usually discard the same

right away. They fell that it is one of the few

steps that customers can contribute towards to

the preservation. The remaining 13% of the

respondents do not agree about the same.

To what extent are the steps taken by the

banking sector towards environment

sustainability have a positive impact in the

work efficiency?

Interpretation:

62% of the respondents have not experienced

a major change in the working efficiency of the

banks which indicates that the implementation

of the green strategies has been a smooth one

without much interference on the working

efficiency of the bank. Although about 28% of

the respondents feel that these steps have a

positive impact on the working of the banks

while the remaining 10% do not agree to the

statement.

As a customer of a bank, to what extent do

you feel the green initiatives are effective?

Interpretation:

About 30% of the respondents feel that the

green initiatives taken up by the banks is

effective and that they are able to see a positive

shift in the mind-set of the banks towards the

preservation of the environment. 58% of the

respondents feel that the impact created by the

banks is to a satisfactory level and that

additional steps can be undertaken to

implement them more effectively while the

remaining 12% of them feel that these

initiatives are not taken seriously and

implemented by the banks.

What do you think is the biggest challenge

faced as a customer due to banks becoming

computerised for environment

sustainability?

Interpretation:

From the above chart, 54% feels technical

glitches and rest of them feel maintain records

and understanding the process are the

challenges faced. Thus, we can say that not

having proper technical assistance is the main

problem faced by the customers of the

computerised banks.

Apart from protecting the environment,

which of the following do you think is the

reason for green initiative plans in banking

sectors?

Interpretation:

From the above chart, a total of 66% of the

respondents feel its time saving and

advancements in technology. 25% feels it to be

cost effect and the rest 9% says because of

flexibility. Thus, apart from protecting the

environment to be the main reason, the other

reasons from the respondents perspective are

rapid growth in technology and time factor.

Which of the following do you prefer?

Interpretation:

From the above chart, we can say that 96% of

the respondents prefer modern tech based

banking system and the remaining 4% still

likes to use traditional paper based banking.

Thus, we can say that most of them prefer tech

based system because of time factor, flexibility

and also helping in the protection of the

environment.

Findings

1. Majority of the respondents feel that their

banks are taking a step towards the

preservation of the environment and rest

feel that they are not inclusive.

2. Almost all the respondents feel that

sustainable energy like solar power can be

used for operating the atms in the country.

3. Fairly large amount of the respondents are

ready to forgo the balance slip received

during ATM transactions as a step towards

environment sustainability.

4. More than half of the respondents have an

opinion that the transition towards banks

taking a step in the same has been very

smooth without any major effect in the

efficiency of the same.

5. More than half of the respondents feel that

the effectiveness of green initiatives

adopted by the banking sectors is effective

but also feel that more strategies can be

adopted creating a more stronger impact.

6. It is identified that technical glitches is the

main hindrance for the customers from

making the shift towards banks becoming

computerised by more than half of the

respondents.

7. Technological advancements and time

factor are the two main reasons involved in

the adaptation of green strategies in banks

by more than half of the respondents.

8. Almost all the respondents prefer the

modern technology based banking for

reasons like convenience, time saver,

keeping up with growing trends, part of

green community, etc.

Suggestions

1. The Research and Development

department of the banking sector can come

up with more similar initiates apart from

paperless transactions and increase the

involvement towards protecting the

environment.

2. The use of solar power in the atms can be

implemented at the earliest.

3. Banks can involve themselves more

actively in protecting the environment as a

part of their CSR activities.

4. The software and networks used for

computerised banking can be made more

user-friendly and efficient as the

respondents feel those technical glitches

are the biggest challenge they face for the

same.

Conclusion

The basic aspects of green marketing includes

encouraging the consumption and production

of high quality and environmental friendly

products, the implementation of just trade

practices with the customers and the society

and protection of the eco system.

Environmental concerns like global warming

mainly caused due to deforestation and

emission of greenhouse gases, have increased

the need for various sectors of the economy to

undertake green initiatives in their operations.

Thus from the study, it can be inferred that the

banking sectors are also taking a step towards

preserving the environmental from the impacts

caused by them. This is done by digitalising

their process like making a shift towards paper

less transactions and initiating the use of solar

power. From the study it was also understood

that although the consumers are ready to shift

towards paperless transactions, the banks are

needed to increase the speed of their processes,

making the websites user-friendly and

attractive and work on the privacy factors

enabling the change. Therefore, green

marketing is considered as a marketing

philosophy promoting the production and sale

of eco-friendly goods and services with the

main aim of achieving ecological balance.


The less number of respondents is considered

to be a limitation of the study as the same may

not be sufficient enough to support the

conclusions drawn.

References

Mr. Stephen J. Grove, Mr. Raymond P. Mr. Fisk,

Mr. Gregory M. Pickett and Mr. Norman Kangun,

Going Green In The Service Sector:

M. Ioannis E Chaniotakis and Mr. Magdalini

Soureli, A Model of Green Bank Marketing

Ms. Kavitha Vadrale, Green Banking Initiatives

By Indian Public And Private Sector Banks

Ms. V. Kanchana Naidu and Mr. Paramasivan C,

A Study On Green Banking Trends In India

Green Marketing, Internal Res journal Mangat

Sci Tech

Ms. Aruna Shanthaarchchi, Customer’s Intention

to Use Green Banking Products: Evidence from

Sri Lanka,

https://arca.com/resources/blog/goint-green-

how-technology-affords-banks-an-eco-friendly-

approach

https://www.emerals.com/insight/content/doi/10.

1108/03090569610118777/full/html

https://www.investopedia.com/terms/g/green-

marketing.asp

http://www.academia.edu/Documents/in/Green_

Banking


5678_Goint_green_in_the_service_sector_Socia

l_responsibility_issues_implications_and_imple

mentation

http://www.academia.edu/Documents/in/Green_

Banking


3098_A_STUDY_ON_GREEN_BANKING_T

RENDS_IN_INDIA

https://222.researchgate.net/publication/3055472

84_GREEN_BANKING_INITIATIVES_BY_I

NDIAN_PUBLIC_AND_PRIVATE_SECTOR_

BANKS

https://study.com/academy/lessor/banking-

system-definition-types.html

https://arca.com/resources/blog/goint-green-how-technology-affords-banks-an-eco-friendly-approach



https://www.emerals.com/insight/content/doi/10.1108/03090569610118777/full/html

https://www.emerals.com/insight/content/doi/10.1108/03090569610118777/full/html

https://www.investopedia.com/terms/g/green-marketing.asp

https://www.investopedia.com/terms/g/green-marketing.asp

http://www.academia.edu/Documents/in/Green_Banking


https://www.researchgate.net/publication/241885678_Goint_green_in_the_service_sector_Social_responsibility_issues_implications_and_implementation






https://www.researchgate.net/publication/310973098_A_STUDY_ON_GREEN_BANKING_TRENDS_IN_INDIA



https://222.researchgate.net/publication/305547284_GREEN_BANKING_INITIATIVES_BY_INDIAN_PUBLIC_AND_PRIVATE_SECTOR_BANKS




https://study.com/academy/lessor/banking-system-definition-types.html

https://study.com/academy/lessor/banking-system-definition-types.html

Vitality of a Highly Educated Population for Thriving Entrepreneurship

V. Ektha

Student, M. Com (International Business)

Mount Carmel College, Bangalore

[email protected]

9972781327

Abstract

An individual creating a new business opportunity while is also bearing its risks, uncertainties

and benefiting from most of its rewards are referred to as an entrepreneur. The entrepreneur

is mostly perceived as an innovator who brings in a source of new idea generation as solutions

to problems in the economy. In a market characterized by contingencies, an entrepreneur

combines capital, land and labour for the production of goods or for service provision through

the formation of a business firm.

This research study was conducted to explore the perception of a highly educated population

towards entrepreneurship. Data was collected from n=100 respondents who are of various

academic disciplines and profession through a structured questionnaire. The respondents were

selected using a simple random sampling method. The study also delves in the attitude of the

sample group towards thriving entrepreneurship, the challenges faced, and the impact

entrepreneurship holds on the economy.

Keywords: Entrepreneurs, Entrepreneurship, Education, Perception, Attitude


Introduction

An entrepreneur, as stated earlier, is an individual

person who initiates a new business activity from

a potential opportunity that presents itself in the

dynamic business environment. The basic tool of

entrepreneurs is innovation, by which they

identify changes and exploit them for suitable

business opportunities. These individuals possess

skill set and competencies essentially required to

anticipate the current and future demands in the

society among consumers. Entrepreneurship is a

practice of commencing a new business venture

or revitalization of mature organizations. It

is categorized as one of the most important

resources which is integral to the production

process in addition to capital, land and labour.

These individuals typically generate a business

plan, acquire labour, obtains raw materials,

resources and finances, provide management and

leadership for the economic activity called

business. Unlike traditional professionals, the

path way of an entrepreneur is mystique, the

factors which support one entrepreneur succeed

may not help the other and vice-versa. That said,

there exist five general steps that are

most successful entrepreneurs follow, it involves,

ensuring financial stability, building a diverse

skill set, consuming content across multiple

channels, identifying a social or economic

problem to solve and lastly finding solutions to

solve the problem posed.

Entrepreneurship is a result of three dimensions

operating together, these dimensions are,

conducive framework conditions, well-

established and designed

government programs and lastly a supportive

cultural and societal attitude. PM Modi’s

initiative Start-up India program was aimed to

make our country one of the largest and vigorous

start-up ecosystems on a global level to build a

strong conducive and growth-oriented

environment for rising entrepreneurs. As a result

of this initiative, many start-ups were recognized,

women entrepreneurs were motivated and it

generated large-scale opportunities in the

country.

Entrepreneurial activity is considered as an

important determinant of economic development

in the nation. These new activities play an

essential role in the process of creative

destruction that foster innovation, employment,

growth and diversification.

Review of Literature

Ali Raoofi, Morteza Afghah, Simin Hoshyar

(2014), expresses achieving development as an

important and a basic goal is conditioned to

optimal utilization of all available resources.

Human workforce among other resources play a

vital role in the process of economic

development. Thus, the basic purpose of this

paper is to examine the relation between

entrepreneurship as an intellectual capital and

economic growth in sixty, selected countries in

the period of 2004 to 2012. To do that, the data

on economic growth and entrepreneurship are

employed as explained and explanatory variables,

respectively. Furthermore, the ratio of

government expenditures to gross domestic

product (GDP), inflation, and the net school

students’ enrollment are used as control

variables. The data for this study is collected from

Global Entrepreneurship Monitor (GEM) and the

World Bank data sites. The results show that

entrepreneurship has a positive and significant

effect on economic growth. Further, it is resulted

that other control variables have affected

economic growth.

Krishna Kumar Agarwal, Rajesh KR

(June 2009), opined that India is moving fast to

emerge as one of the strongest economies in the

world by 2020. But at the same time, as per

Dorothea Schmidt of the

International Labour Organization (ILO)

employment trend team, around 34.3% of the

Indian population is still living below the

benchmark of $1/day set by the United Nations

Development Program (UNDP). One of the best

ways to solve the problem of poverty in

developing countries like India is to promote

Small Scale Industries (SSI). It can play a vital

role in income distribution, economic self-

dependence and economic uplifting. The Central

as well as State Governments in India are taking

so many steps to promote entrepreneurial

activities. One untested assumption in policy

making is the impact of attitude. Attitude

formation is highly influenced by the family

background of an individual as well as his/her

educational background. Hence, this paper

hypothesizes that an individual’s family

background and educational qualification

influences their attitude towards entrepreneurs

and entrepreneurship. This hypothesis was tested

on more than 100 respondents in Varanasi using

an appropriate questionnaire and suitable

statistical tools.

Abishek Goel, Neharika Vohra, Liyan Zhang,

Bupinder Arora (2009), argues that social

support is an important enabler in the

entrepreneurial activity in a country or a region.

One untested assumption in policy making on

entrepreneurship development has been that all

regions are equally desirous of entrepreneurial

activity and one policy could address issues in all

regions. It was argued that societal attitudes

towards entrepreneurs and entrepreneurship are

important determinants for future entrepreneurial

activity. These attitudes would be impacted by

the family background of an individual and

entrepreneurial development in the region an

individual comes from. It was hypothesized that

more positive attitude would be seen in (i) people

form entrepreneurial backgrounds, and

(ii) entrepreneurial more developed regions.

These hypotheses were tested on more than 5,000

respondents in India and China. The results for

family background’s influence on attitudes found

strong support in both India and China. Regional

development showed stronger influence on

attitude in India than in China.

Jaganaddha Pawan Tamvada (2011) :

Empirical work on micro and small firms focuses

on developed countries, while existing work on

developing countries is all too often based on

small samples taken from ad hoc questionnaires.

The census data we analyze here are fairly

representative of small business structure in

India. Consistent with findings from prior

research on developed countries, size,

and age has a negative impact on firm growth in

the majority of specifications. Enterprises

managed by women have lower expected growth

rates. Proprietary firms face lower growth on the

whole, especially if they are young firms.

Exporting has a positive effect on firm growth,

especially for young firms and for female-owned

firms. Although some small firms are able to

convert know-how into commercial success, we

find that many others are unable to translate it into

superior growth.

Objectives of the Study

• To study on the perception and attitude of a

highly educated population towards thriving

entrepreneurship

• To identify the challenges or barriers faced by

entrepreneurs

• To understand the impact of entrepreneurship

towards the economy of the country

• To investigate whether entrepreneurship is

viewed as a future career among the

respondents

Methodology

The research study is descriptive in

nature. To accomplish the objectives of this

study, Questionnaires were circulated via internet

by the use of online google forms. In order to

achieve the study objectives, structured

questionnaires were distributed among a sample

size of n=100 consisting of graduates, post

graduates and a population pursuing professional

studies. A random sampling method was used for

this research study. The survey instruments

contained four demographic questions (gender,

age group, educational qualification and

employment status) and ten entrepreneurial

questions.

Data Analysis and Interpretation

Demographic Details

Table 1: Gender Profile of the Respondents

Gender Percentage

Male 40%

Female 60%

Total 100%

(Source: Primary)

Table 2: Age Groups

Groups Percentage

<20 4%

20-30 69%

30-40 22%

>40 5%

Total 100%

(Source: Primary)

Table 3: Educational Qualification

Qualification Percentage

Graduates 49%

Post Graduates 44%

Professional Studies 7%

Total 100%

(Source: Primary)

Table 4: Employment Status

Status Percentage

Employed 34%

Unemployed 66%

Total 100% (Source: Primary)

Study Details

Chart 1: The importance of a supportive

ecosystem to nurture entrepreneurship

(Source: Primary)

Inference:

Majority of the respondents, 57% strongly agree

that entrepreneurship cannot operate in vacuum

and therefore they need a supporting ecosystem

to nurture them. This supporting system consists

of the government initiatives towards the growth

of entrepreneurship, motivating peer groups and

society, funding institutions and supportive

business organisations.

32% of the respondents are unsure or neutral

about the same and only 11% disagree to the need

of an assisting environment for the thriving

entrepreneurs.

Chart 2: Bengaluru as a start-up hub for

growing entrepreneurship

(Source: Primary)

Inference:

37% of the respondents strongly agree that

Bengaluru has been a start-up hub for growing

entrepreneurship, 47% also agree to the same.

16% of the respondents remain neutral and none

of the respondents disagree or strongly disagree

to this point.

This result shows that the entrepreneurial spirit is

high in Bengaluru with government incentives,

pouring of investments and a nurturing

environment.

Chart 3: Education as a societal criterion to

become a successful entrepreneur

(Source: Primary)

Inference:

29% of the respondents agree to the statement that

education is a main societal criterion in order to

flourish as a successful entrepreneur whereas

44% are neutral or uncertain about the same. Only

27% of the sample group disagree saying

education is not an essential requirement for an

57%11%

32%

YES NO MAYBE

37%

47%

16%0%

STRONGLY AGREE

AGREE

NEUTRAL

DISAGREE

STRONGLYDISAGREE

29%

27%

44%

YES NO MAYBE

entrepreneur.

Majority of the respondents are unsure mainly

because they believe the need of education for

entrepreneurship would completely depend upon

the potential opportunity and type of business

undertaken.

Chart 4: Essentiality to possess work

experience for entrepreneurship

(Source: Primary)

Inference:

This result shows that 43% of the respondents

agree that prior work experience is required to

take up entrepreneurial activities and be

successful. 40% of the respondents disagree to

the same and only 17% are uncertain if work

experience is necessary.

There is a very small difference in percentage of

the respondents who agree and disagree, this is

mainly because half of the sample group believe

having a potential opportunity is sufficient to start

a successful business and the other half says prior

experience is essential for successful

management of the business.

Chart 5: Quality requirement for an

entrepreneur

(Source: Primary)

Inference:

39% of the respondents are convinced that the

most essential entrepreneurial quality that must

be possessed is risk taking ability and positive

acceptance of failure. 28% agree on innovative

ideas and creativeness to be the important

qualities, 16% of the sample group agree that

entrepreneurs need to be ambitious followed by

14% at goal-orientation and lastly 3% on

leadership skills.

Chart 6: Barriers to growing

entrepreneurship

(Source: Primary)

Inference:

39% of the sample group state that the most

prominent barrier or challenge to be a successful

entrepreneur is obtaining financial support and

high debts followed by insecure income and

work-life balance at 16%. 15% of the respondents

agree on tough competition, 9% on lack of

business ideas and lastly only 5% suppose that the

lack of professional skills is a major barrier.

Chart 7: Start-up India and its significance

towards entrepreneurship

(Source: Primary)

43%

40%

17%

YES NO MAYBE

0 10 20 30 40 50

AMBITIOUS

RISK TAKING AND…

INNOVATIVE AND…

GOAL ORIENTED

LEADERSHIP SKILLS

0 10 20 30 40 50

FINANCE AND DEBT

INSECURE INCOME

TOUGH COMPETITION

WORK-LIFE BALANCE

LACK OF BUSINESS…

LACK OF…

64%4%

32%

YES NO MAYBE

Inference:

A majority of 64% of the respondents are strongly

convinced that the programme Start-up India by

Prime Minister Narendra Modi in the year 2016

has been of significant impact towards the growth

of entrepreneurship in India during its budding

stages which led to generation of large-scale

employment and 15,113 start-ups were

recognised between 2016-2019.

32% are uncertain and 4% of the respondents are

unaware of the significant impact this programme

holds on entrepreneurship.

Chart 8: Contribution of entrepreneurship to

the economy

(Source: Primary)

31% of the respondents consider economic

growth and increase in national income to be the

most contributing factor of entrepreneurship to

the economy, followed by 25% at improves

standard of living, 20% at entrepreneurship

creating employment opportunities, 18% of the

sample group agree on community development

and social change entrepreneurial activity brings

in and lastly only 6% at balanced regional

development.

Chart 9: Entrepreneurship as future career

(Source: Primary)

Inference:

66% of the respondents are positive about

adopting entrepreneurial business activities as

their future career if a potential opportunity

presents itself. 19% of the study group are unsure

of the same keeping in mind the various

challenges to be faced as discussed earlier such as

insecure income, financial risks, tough

competition etc.

15% of the respondents are content with their

regular employment characterized by lesser risks

rather than adopting to entrepreneurship as their

future career.

Chart 10: Greater importance for

entrepreneurship in educational institutions

(Source: Primary)

Inference:

A majority of 85% of the respondents strongly

agree that entrepreneurial subject must be given

greater importance in educational institutions due

to its growing significance to the economy as

whole. 13% are undecided about the subject

matter and only 2% disagree to the same.

Findings of the Study

• A significant portion of the

sample groups strongly believes that

entrepreneurship essentially requires a

supporting or assisting ecosystem to nurture

its growth, and that they cannot operate

successfully in vacuum.

• Majority of the respondents agree that

Bengaluru has been a start-up hub in the field

of thriving entrepreneurship, this result

0 10 20 30 40

ECONOMIC GROWTH…

COMMUNITY…

BALANCED REGIONAL…

IMPROVES STANDARD…

CREATES EMPLOYMENT

66%15%

19%

YES NO MAYBE

85%

2%13%

YES NO MAYBE

shows that the entrepreneurial spirit is a

high in Bengaluru with government

incentives, pouring of investments, and a

nurturing environment.

• Education beings a main societal criterion for

successful entrepreneurial business, a large

portion of the respondents are unsure of the

same because they believe the need of

education for entrepreneurship would

completely depend upon the potential

opportunity, and type of business undertaken.

• There is a very small difference in percentage

of the respondents who agree and disagree to

the need of work experience for victorious

entrepreneurs, this is because half of the

sample group believes having a potential

opportunity is a sufficient to start a

successful business and the other half says

prior experience is essential for efficient and

effective management of the business.

• This study shows that the most necessary

qualities to be possessed by an entrepreneur

in order of significance are, risk taking ability

and positive acceptance of failure followed

by innovative and creativity, ambitious, goal-

oriented and lastly leadership skills.

• According to this study, the most prominent

barrier or challenge to be a successful

entrepreneur is obtaining financial support

and a high debts followed by insecure

income and work-life balance.

• The respondents are strongly convinced that

the programme Start-up India by Prime

Minister Narendra Modi in the year

2016 have been of significant impact

on towards the growth of entrepreneurship

in India, during It's budding stages.

• The study considers economic growth and

increase in national income to be the most

contributing factor of entrepreneurship to the

economy, followed by improving standard of

living and creation of employment

opportunities.

• A large portion of the study group are

positive about adopting entrepreneurial

business activities as their future career if a

potential opportunity present itself.

• The respondents strongly agree that

entrepreneurial subject must be given greater

importance in educational institutions due to

its growing significance to the economy as a

whole.

Recommendations and Conclusion

Successful entrepreneurs are those who learn

from their business failures, they identify

problems and bring about suitable solutions for

the same. They are high risk takers, given the

riskiness of their new business firms in a dynamic

environment, the acquisition of capital and

financial resources is particularly most

challenging to new entrepreneurs. Many

individuals consider bootstrapping, that is

financing the economic activity

using their investments, sweat equity to reduce

cost of labour, minimizing inventory,

and factoring of receivables. Some entrepreneurs

are lone players struggling to kick start their

business and others consider partnering with

those armed in significant access to capital and

other essential resources. New entrepreneurial

firms can obtain finances from venture capitalists,

angel investors, crowdfunding, hedge fund or

even traditional financial sources such as bank

loans.

A positive impact on the society and economy is

contributed by nurturing entrepreneurs in India.

They start a new business, innovate goods and

services resulting in job opportunities and often

generating a ripple effect that only results in

greater economic development. They add to the

national income and enable higher

spending in public projects from the government

side. Existing mature ventures

stay confine whereas new product development,

innovation and technologies lead to new market

creation and increased wealth. Entrepreneurs help

clear uncertainties by making judgments and

assuming risks. Established

business organizations face higher competition

from potential entrepreneurs which require them

to spur towards research and development efforts

as well causing steady state equilibrium.

Entrepreneurs cause social change with their

innovative and unique creations through which

they break traditions. These individuals also help

charities, non-profit-making organizations and

invest in community projects thereby supporting

causes beyond self-profit making. Fostering

entrepreneurship is highly important for the

economic growth, reason being, entrepreneurship

if not regulated effectively, can cause unfair

practices of the market, corruption and

inequalities in the income of the society.

Government of India must support in the

development of a healthy ecosystem for the

thriving entrepreneurs through various incentives

and programs. The formation of associations for

entrepreneurs, business incubators and

educational programs also help to a great extent

by providing information and significant support

to ambitious entrepreneurs. Successful

entrepreneurs are well versed in money

management, and also know when to change their

course of action.

References

https://www.investopedia.com/terms/e/entrepren

eur.asp

https://www.google.com/amp/s/inc42.com/featur

es/how-successful-is-pm-modis-startup-india-

programme-heres-the-numberspeak/amp/

https://link.springer.com/article/10.1007/s11187-

011-9318-7

http://vslir.iima.ac.in:8080/jspui/handle/11718/1

95


9407_A_study_on_the_effect_of_entrepreneursh

ip_on_economic_growth

https://search.proquest.com/openview/a73396ec

ec42c6b55925a0e7ac01070f/1?pq-

origsite=gscholar&cbl=54457

https://www.investopedia.com/terms/e/entrepreneur.asp

https://www.investopedia.com/terms/e/entrepreneur.asp

https://www.google.com/amp/s/inc42.com/features/how-successful-is-pm-modis-startup-india-programme-heres-the-numberspeak/amp/



https://link.springer.com/article/10.1007/s11187-011-9318-7

https://link.springer.com/article/10.1007/s11187-011-9318-7



https://www.researchgate.net/publication/268509407_A_study_on_the_effect_of_entrepreneurship_on_economic_growth



https://search.proquest.com/openview/a73396ecec42c6b55925a0e7ac01070f/1?pq-origsite=gscholar&cbl=54457



A Study Of Customer Behavior Towards Green Marketing

Ms. Ayushi Somanna M (8762350116)

Research Student,

Mount Carmel College

[email protected]

Ms. Shyamilee C S (9481756084)

Research Student,

Mount Carmel College

[email protected]

Abstract

Green marketing refers to marketing of eco-friendly products to preserve the environment as

well as the welfare of people. Today, customers have become more conscious about the

environment and companies have become socially responsible. Green marketing concept has

become a new age business practice. Environmental hazards such as pollution, change in

climate, global warming, wildlife extinction and depletion of natural resources caused as a

result of increased industrial activities called for change on the way products were

manufactured and marketed. There is a shift in the consumer preferences as they directed their

attention towards green products. This paper attempts to understand the behavior and

perception consumers’ exhibit towards green products. This research gives an insight into the

awareness consumers have about green products and their behavior towards such products. It

studies the determinants that affect the green behavior of the consumers and their decision-

making. The marketers are interested to know how committed the consumers are towards green

products, and also the marketing strategies that would be effective.

Keywords: Green Product, Consumer Behavior, Organic, Environment



Introduction

In the recent years, green marketing, and has

been emerging as an important concept due

to environmental issues such as a ozone

depletion, air, and water pollution and

climate change. This has resulted in

consumers shifting towards eco-friendly

products and manufacturers adopting

sustainable business practices. Marketers

have been adopting sustainable business

practices. The concept of green marketing

emerged in the 1980s when there started a

shift in the attention of consumers to green

products. According to American marketing

Association, marketing of products that are

presumed to be environmentally safe is called

Green Marketing. Businesses have been

considering green marketing strategies as it

meets the consumers’ expectations as well as

provides a platform to address the

environmental issues. It also gives a

competitive edge to businesses. Green

marketing activities can include avoiding use

of plastics, using bio-degradable or herbal

products, responsible disposal of waste,

adopting changes in the production processes

and other business practices that do not

negatively affect the environment. The

strategies such as green branding, green

packaging, repositioning of products and

designing new products have been adopted

by marketers. Eco-labels are used by

companies to communicate to its customers

about the characteristics, and benefits of the

products and its impact on environment.

Developing countries like India have also

realized the importance of adopting green

marketing. The Environment protection Act

of 1986 encourages companies to

manufacture and market green products, and

adopt green technology. There are several

other laws mandating the businesses to

preserve environment concerning

management of hazardous wastes, managing

bio-medical waste, recycling of e-waste,

partnering with Government to safeguard

biological diversity, responsible water

consumption and various such activities.

Literature Review

1. Oyewole, P. (2001) in his paper presented

a conceptual link among green marketing,

environmental justice, and industrial

ecology. It argues for greater awareness of

environmental justice within the practice for

green marketing. a search agenda is finally

suggested to work out consumer's awareness

of environmental justice, and their

willingness in touch the prices related to it.

2. Sanjay K. Jain & Gurmeet Kaur (2004) in

their study of environmentalism which had

fast emerged as a worldwide phenomenon

discussed business firms too have risen to the

occasion and have started responding to

environmental challenges by practicing green

marketing strategies. Green consumerism has

played a catalytic role in ushering corporate

environmentalism and making business firms

green marketing oriented. supported the info

collected through a field survey, the paper

made an assessment of the extent of

environmental awareness, attitudes and

behavior prevalent among consumers in

India.

3. Cherian and Jacob (2012) studied

consumer???s attitude towards environment-

friendly products. They presented a

conceptual framework of green marketing

and various ways during which different

consumer attributes are associated with the

concept of green marketing. it had been

concluded that there's a requirement for green

marketing and a requirement for a shift in

consumer behavior and attitude towards an

environmental friendly lifestyle. The

researchers recommended exploring the

factors that encourage consumers to

cooperate with green marketing, that is,

through green product usage

4. Shafaat F. & Sultan A(2012), the present

paper is that the reflection of the work done

by the previous researches and underpins the

grounded concept of green marketing. The

study encompasses all the facets of green

marketing, its issues, benefits, and practices

by different companies. Suggestion roll out

of the study advocates that solutions to the

environmental problems fall into three

categories: ethical, legal, and business

(economic and technological). Green

marketing is far quite a marketing approach

because it has both environmental and social

dimension attached thereto , but it shouldn't

neglect the economic aspect of selling.

Research Methodology

Under the study on the customer behavior

towards green marketing strategies,

questionnaires were used to collect and

analyze the views from the sample group.

Questionnaire was sent to a group of n=100

respondents using online Google Forms. The

survey consisted of 4 demographic questions

and 16 subject related questions.

Need of the Study

Green marketing is an emerging dimension

which gives stress on protecting the

environment. As resources are limited and

human wants are unrestricted, it is

indispensable for the manufacturers to utilize

the resources efficiently. This has become the

new mantra to satisfy the needs of consumers

and to earn better profits. Hence, this study

has focused on the awareness of consumers

about green marketing and the preference

towards eco-friendly products by the users

within the Bengaluru city. The respondents

were users of eco-friendly products within

the Bengaluru city.

Objectives

1. To study the awareness of consumers

with respect to green marketing

2. To find out the willingness of consumers

to pay more for eco-friendly products

3. To find out the preference of consumers

towards eco friendly products


The study is a descriptive study and studied

on the characteristics of green marketing as

well as on the users of eco friendly products.

The study is been conducted using the survey

method, asking the respondents to fill the

questionnaries and thus data was analysed.

The sampling unit of the study is 100

respondents, who are the users of eco-

friendly products within the Bangalore city

and used the random sampling method, in

order to reduce the bias involved when

compared to any other sampling method.

The data is collected through survey method

asking the respondents to fill the

questionnaire and then analyze the

information using percentage method and

presented the information through pie-chart.

ethodology of Study

Both primary data and secondary data has

been used for the research paper.

1. Primary Data

This includes questionnaire survey of people

from the study area.

2. Secondary Data

Various published articles from journals,

books, internet websites.

Sample Design

The present study has been conducted for

the city of Kolhapur. The total population of

the city is approximately 6,00,000 which

would roughly amount to 1,20,000

households. However the researchers have

only considered the middle class and higher

middle class as our respondents.

Due to limitations of time and cost

the questionnaires were collected

through convenient

sampling method. A total of 100 cases were

considered for the analysis

Methodology of Study



1. Primary Data



2. Secondary Data



Sample Design



the city is

approximately 6,00,000 which would

roughly amount to 1,20,000 households.

However the

researchers have only considered the middle

class and higher middle class as our

respondents.



through convenient

sampling method. A total of 100 cases were

considered for the analysis




1. Primary Data



2. Secondary Data



Sample Design



the city is approximately 6,00,000 which

would roughly amount to 1,20,000

households. However the researchers have

only considered the middle class and higher




through convenient sampling method. A

total of 100 cases were considered for the

analysis




1. Primary Data



2. Secondary Data



Sample Design



the city is

approximately 6,00,000 which would

roughly amount to 1,20,000 households.

However the researchers have only

considered the middle class and higher




through convenient sampling method. A

total of 100 cases were considered for the

analysis

Analysis of the Study

Interpretation: For this study majority in the

sample group were between the age group of

21 – 30 years. There were 11 respondents

from the age group of 41 and above and 8

respondents between the age group of 31 –

40. From this we can infer that the sample

group consisted mostly the younger

generation.

81

811

Age of the Respondents

21 - 30

31 - 40

41 and above

Interpretation: The sample group

considered for this study consisted of 60%

female and 40% men. This indicates that

majority of the respondents were females.

The sample group consisted mainly of

females between the ages of 21-30.

The sample group mainly consisted of

graduates and post graduates who accounted

for 52% and 33%. 14% have a professional

degree. From this we can infer that this study

consists mostly of graduates and post

graduates and finds out the awareness of

green marketing among them.

Awareness of Green Marketing

Interpretation: From the above chart we can

infer that majority of the respondents are

aware about green marketing and the

existence of green products. 91% are aware

about the same while 9% are not aware. This

shows that most of the respondents in the

group consisted of people who were exposed

to the concept of green marketing.

Chart 5: Forms of green marketing that

the group is aware about

Interpretation: From the data given in the

above chart we see that 85 out of the 100

respondents were aware of the bio-

degradable products, 78 out of 100 were

aware about avoidance of plastics while 68

and 41 were aware about waste disposal

practices and sustainable business practices.

From this we can infer that bio-degradable

products and avoiding plastics are the

practices that the group was more aware

60

40

Gender of the Respondents

female

men

5233

14 1

Educational Qualification of the

Respondents

Graduate

Post Graduate

ProfessionalDegree

91

9

Awareness of Green Products

and Green Marketing

yes

no

41

68

78

85

0 50 100

sustainable…

waste…

avoiding…

Bio-…

Forms of Green Marketing that

the Group is Aware about

FORMS OFGREENMARKETINGTHAT THEGROUP ISAWAREABOUT

about when compared to sustainable business

practices being adopted by companies. This

may be due to the growing significance of

avoidance of plastics and increasing

importance of eco-friendly products.

Chart 6: Mediums through which

awareness was gained

Interpretation: From the above data we can

infer that social media plays a huge role in

creating awareness about green marketing

among people. This is due to the increase in

the usage of digital media. Awareness

through social media accounted for 63% of

the respondents. 19% gained awareness

through print media, 12% through televisions

and 6% through websites.

Chart 7: Purchase from a company that

uses eco-friendly business practices

Interpretation: Majority of the group which

accounts to 99% are ready to buy from a

company that uses eco-friendly business

practices. This shows that the respondents are

environment conscious and are ready to

spend on products that are environmental

friendly.

Chart 8: Willingness to pay more for eco-

friendly products

Interpretation: From the above data we can

see that 53% of the respondents may pay

more for eco-friendly products while 44% are

ready to pay more. Only 3% of the group does

not want to pay more for the eco-friendly

products. Majority of the people are ready to

pay more for eco-friendly products out of

concern for the environment, climate change

and global warming. Few also wish to

enhance the quality of life for which they are

willing to pay more. Out of the people who

do not want to pay more or are not sure about

paying more, majority feel that the prices of

eco-friendly products are too high for them.

Others do not want to pay more for such

products for reasons such as they are not

aware about the actual positive impact of

these products and green misconception. Few

also believe that the products are not

positioned in a way that makes the product

superior when compared to other products.

63

19

12

6

Mediums through which

Awareness was Gained

social media

newspapers/magazines

television

websites

991

Purchase from a Company that

uses

Eco-friendly Business Practices

yes

no

5344

3

Willingness to Pay more for Eco-

friendly Products

maybe

yes

no

Chart 9: Problems with regard to green

Marketing

Interpretation: The above chart shows that

54% of the respondents found that green

marketing was not suitable for all product

types and 32% found that false marketing are

practiced. The rest 11% and 3% found that it

caused inconvenience and there was no

problem with green marketing. Through this

we can infer that no all products can be

marketed under green marketing as it might

not be eco friendly and many concerns carry

false marketing with regard to green products

to push their products into the market.

Chart 10: Consideration of eco labels in

products during purchase

Interpretation: According to the above chart

68% which is the majority of the group look

for eco- labels in the green products during

purchase while the rest 32% do not check the

eco labels. This is because majority is

concerned about the quality and the price that

they are willing to pay for the green products.

The main reason for not looking at Eco labels

in products before purchase is mainly due to

lack of information on the part of the

customer. They did not give much attention

to this as they thought it was not very

necessary.

Chart 11: Concern towards organizations

polluting the environment

Interpretation: It is evident from the above

chart that the entire 100% of the group is

concerned about the organizations polluting.

Most of the organizations are the main cause

for the environment being polluted due to the

harmful wastes and gases that they emit. The

customers are fully aware of this and are

concerned about the environment and are

willing to take steps to mitigate this problem.

54%

32%

11%3%

Problems with regard to Green

Marketing

Not suitablefor all theproductsfalsemarketing

Inconvenience

68%

32%

Consideration of Eco Labels in

Products during Purchase

Yes

No

100

Concern towards Organizations

Polluting the Environment

Yes

Chart 12: Environmental concerns

impacting the purchase decisions of the

group

Interpretation: From the above chart we

can infer that 91% that is the majority of the

group are concerned about the environment

while purchasing the products. 9% of the

group is not concerned about the same. This

is because majority of the respondents are

concerned about keeping the environment

clean and safe for a better living and want to

preserve the environment.

Chart 13: Initiation of concerns for

environment by the company

Interpretation: According to the data

obtained we can infer that 53% of the

respondents felt that that concern for the

environment should be initiated by

companies during the manufacturing process.

33% of the group felt that it should be

initiated at the design and the drawing stage.

While 12 % felt that it should be initiated at

the marketing and selling process. The least

2% of the respondents felt it has to be

initiated during the transportation and

logistics process. This means that the major

concerns regarding the environment can be

minimized if proper initiative is taken during

the manufacturing process as it is one of the

beginning steps towards the development of

the product.

Chart 14: Checking the product features

before buying a green product

Interpretation: This above chart shows that

the majority of the group with 84% will

always go through the product features

before buying the products. 16% of group

finds it unnecessary to go through the product

features before purchasing them. This shows

that majority of the group are concerned

about the products that they are consuming or

purchasing and they keep themselves updated

with the product features for better clarity.

91%

9%

Environmental Concerns

Impacting the

Purchase Decisions of the Group

Yes

No

53%

33%

12%2%

Initiation of Concern gor

Environment

by the Company

Manufacturing

process

Design and

drawing stage

Marketing and

selling

Transport and

logistics

84%

16%

Checking the Product Features

before

Buying a Green Product

Yes

No

Chart 15: Suggestions for improving green

marketing

Interpretation: The above chart indicates

that 44% of the respondents suggested on

creating awareness among the people in order

to improve the reach of green marketing.

Awareness can be given through providing

more information about the need for green

products using social media and on use and

disposal of products and use of effective

promotional channels .24% suggested on

using green initiatives through using green

designs, green energy ,recycling ,reducing

the use of plastics and eco-friendly methods

such as sustainable and organic agriculture

20% suggested for making the price

affordable as they feel that the green products

that are sold in the markets are usually priced

high. The other suggestions include

initiatives on the part of the government to

encourage as well as produce products that

are affordable and trustworthy, certification

for green products by a trusted central

agency.

Findings

• Through this survey it was found that

majority of the respondents were aware

about green products and green

marketing

• Bio-degradable products and avoidance

of plastics were the forms of green

marketing that the group is mainly aware

about. The group was also aware about

the various waste disposal practices used

by the company

• The study indicated that social media

plays a major role in spreading awareness

about green marketing. This is due to the

increase in the use of digital media by the

people and marketers are increasingly

using this medium to communicate

information to the customers

• Majority of the respondents were ready to

purchase from a company that uses

sustainable business practices

• Majority of the group will pay more or

may consider paying more for eco-

friendly products

• The group feels that major problem with

regard to green marketing is that it is not

suitable for all the product types. The

practice of false marketing was also

found to be a problem

• The study indicated that most of the

respondents look out for eco-labels when

purchasing a product

• The entire group have concern towards

organizations polluting the environment

• Environmental concerns do impact the

purchasing decisions of the group as they

are concerned about preserving the

environment

• Majority of the respondents opted for

initiation of concern for environment by

the company in the manufacturing

process. Companies must also consider

this during the design and drawing stage

• Most of the people in the group check for

the product features before buying a

green product

• There were suggestions to provide more

awareness to improve green marketing

and taking up more green initiatives

Suggestions

• Providing customers with info graphics

and referral program credits

• Providing information of green products

through campaigning in schools and

colleges to increase awareness

1220

2444

0 50

othersaffordable…

green…awareness

Suggestions for Improving

Green Marketing

SUGGESTIONSFORIMPROVINGGREENMARKETING

• Providing information on responsible use

and disposal of products

• Government can encourage green

marketing by providing certifications for

authenticity, mandating green seals on

products

Conclusion

With green marketing concept emerging as a

new business practice companies have been

resorting to use eco-friendly methods to

preserve the environment from being

exploited. This paper aimed at studying the

behavior of the customers towards the green

marketing strategies that are used today.

From this study it is clear that the customers

are aware of the need for green products and

are willing to contribute to the environment

by going green. It is necessary to find ways

to make the products affordable to

the customers, so that, they are encouraged

making the purchase. There is more research

that needs to be done in this field as it is now

growing. For the long-term survival of

the companies have to implement strategies

to go green. The attitude of the consumers

towards green products is positive and the

affordability of the products should be looked

into by the manufacturers. The consumers are

alarmed about the situation of the

environment and anticipate the organizations

to take necessary actions regarding green

practices for a better environment to live in.

To make a greater impact about the green

products the marketers, and the organizations

have to constantly communicate with their

customers to know them better and to cater to

their needs. This indicates that marketers

should make the green products available to

the consumers for their consumption as

customers have shown willingness to buy

green products if it is available.

Limitations of the Study

1. The respondents are limited to the users

of eco-friendly products in Bengaluru

city

2. The accuracy of the information is based

on the response received from the

respondents.

3. This study was conducted within a short

period of time therefore an in depth study

was not possible

References

Faulds, W. G. (2009). Social Media: The

new hybrid element of the promotion mix .

Hoefel, T. F. (2018, November). Retrieved

from

https://www.mckinsey.com/industries/consu

mer-packaged-goods/our-insights/true-gen-

generation-z-and-its-implications-for-

companies

Jacob Cherian, J. J. (2012). Green

Marketing: A Study of Consumers’ Attitude

towards Environment Friendly Products.

Asian Social Science , 8 (12).

Oblinger, D. G. (2005). Educating the Net

Generation.

Oyewole, P. (2001). Social Costs of

Environmental Justice Associated with the

Practice of Green Marketing. journal of

business ethics , 29 (3), 239 - 251 .

Research, S. &. (2015). The Hispanic

Millenial Project .

Sanjay K Jain, G. K. (2004). Green

Marketing: An Attitudinal and Behavioural

Analysis of Indian Consumers. Global

Business Review , 5 (2), 187 - 205 .

SHAFAAT, M. F., & SULTAN, A. (2012).

Green Marketing. International Journal of

Multidisciplinary Management studies , 2

(5).

Virdi, J. S. (2016). GREEN MARKETING:

CURRENT SCENARIO AND

CHALLENGES. International Journal In

Applied Studies And production

management , 2 (3).

Ward, S. (n.d.). Green Marketing . Retrieved

from

https://www.thebalancesmb.com/green-

marketing-2948347

Pre & Post-Merger Financial Performance: An Indian Perspective of Exit

Strategy

Girish Mallappa Mabanur

Student

Ramaiah Institute of Management Studies

Sindhu A.N Research Scholar

Dept of Commerce Bangalore

Bangalore University

Abstract

The financial performance is evaluated based on various variables. The study finds a negative

impact of merger on return on equity, return on assets, Net profit ratio, yield on advance and

yield on investment. However, variables namely, the Earning per share, Profit per employee

and Business per employee has shown positive trend and growth after merger. It has been

observed that after the merger, the assets, equity, investment and advances of all banks

increases but due to underutilization their respective yield decreases. On a contrary, the

business per employee and profit per employee has increased due to optimum utilization of

human resources. By applying the Comparative analysis, the paper also assess the financial

performance of acquiring bank with the banking industry. The Bank of Baroda and Oriental

bank of commerce has found decreases in Yield on Advances, and yield on investment as

compared to average of all banks in the post- merger period. State Bank of India & IDBI Bank

has higher business per employee and profit per employee as compared to industry average.

Key Words: Merger, Exit Strategy, Financial performance, Bank, India.

Introduction

The Indian banking industry plays a vital role

in the economic development of the country.

The Indian banking industry has witnessed

many reforms in last three decades. Banking

industry is divided into two categories,

namely, Scheduled commercial banks and

Non-scheduled commercial banks. Banks

registered as per the Schedule II of the

reserve bank of India act, 1934 are known as

scheduled commercial banks, which further

categorized as Public-sector banks, Private

sector banks and foreign banks. The

Nationalized banks, State bank of India and

its associate banks, Regional Rural Banks fall

in the category of a public sec-tor bank. The

Private sector banks include the old Private

sector banks and new Private sector banks.

The regional rural banks are sponsored by

particular bank, state government and central

government and working in rural areas. The

Merger and acquisition is one of the

important tools to achieve the growth. The

merger as per the Godbole (2013) is the

“combination of all the assets, liabilities,

loans & business of two or more companies

such that one of them survives.” Many firms

across the globe has adopted the strategy of

merger and acquisition to achieve high

growth in business. Further, the merger and

acquisition also serves the purpose of

expansion, reducing the level of competition,

and creation of a large entity. According

to Narayanswamy (2017) the financial

analysis is a technique to study the annual

report of company to provide relevant

information to the decision makers.

Acquiring firm always needs to check

financial performance of the tar-get firm as

merger affects the financial position and

wealth of all stakeholders. Since merger can

have significant impact on financial

performance of the acquiring firm in any of

the ways, i.e. either positive or negative, the

acquirer needs to evaluate the target firm in

well manner before going for merger deal.

Again, the merger can result in poor financial

performance. There are five different forms

of merger. Vertical Merger is a merger of

non- competing companies where one’s

product is a necessary component of other’s.

Such merger can be done between two firms

engaged in different aspects of business.

Horizontal merger involves two, firms that

operate and compete in the same kind of a

business activity. The acquiring firm belongs

to the same industry as the target company.

Accretive Merger occurs when a company

with a high price-to-earnings ratio purchases

a company with a low price-to-earnings ratio.

If there is no economic relationship between

the acquiring & acquired firm, such a merger

is known as Conglomerate merger. A merger

is dilute one, if the EPS of acquiring

company falls after merger. This happens due

to poor financial performance of target firm.

Literature Review

The literature on pre- and post-merger

financial performance has been used in recent

times. A review of many studies carried out

in many countries across the globe is

presented here. Many researchers have found

a positive impact of merger on financial

performance. Harrison et al. (1991) analyses

the post-acquisition performance of 1100 US

firms in the period of 1970-1989 and

demonstrates that the acquisition remains

beneficial for the acquiring firms & resulted

in improvement of profitability ratios. Lees

(1992) finds that the merger remains

beneficial for the acquiring firm and in the

post-merger period the profitability has

increased with higher rate as compared to the

pre- merger period. Shanmugam and Nair

(2004) analyzed the impact of merger on

financial performance of 54 Malaysian

banks. By applying the paired t-test on 1990-

2000 data, it is found that merger has

strengthened the financial position of banks

and resulted in improvement in profitability

ratios. Feroz et al. (2005) finds that financial

performance enhanced significantly after

merger. The financial ratios are in improved

version after

merger. Mumcu and Zenginobuz (2005)

examine the pre- and post-merger financial

performance of the Turkish banking industry.

They find that merger has significant and

positive impact on financial performance and

resulted in improved

profitability. Demirbag et al. (2007) analyses

the impact of merger on financial

performance of Indian pharmaceutical firms.

The study finds that the merger remains

positive from the financial point of view and

ensued in increases in Return on investment

and Net profit margin. Ramakrishnan (2008)

finds that the merger that happened in the

Indian financial sector from 1996 to 2003 led

to improvement in financial performance of

firms, and also contributed towards brisk

growth. In another

study, Ramakrishnan (2010) examines the

impact of merger on financial performance of

Indian firms using data from 1996 to 2002.

The study came with the outcome that the

mergers have enhanced the long- term

performance of firms. Kilic (2011) examines

the pre- and post-merger financial

performance of 10 Turkish banks using data

envelopment analysis and finds positive

impact of merger on profit-ability. After the

merger, the financial performance improved

pointedly. Dobre et al. (2012) assess

financial performance of Romanian

corporate firms covering the period of 2005-

2011. They find that the merger resulted in

the improvement of financial performance

and, as a result, the profitability ratios

increased significantly. Francoeur et al.

(2012) using the 1990 to 2003 data of

Canadian firms, finds that the merger

improves the profitability. The profitability

ratios in-creases significantly after the

merger and shows better

results. Meghouara and Sbai (2013) find that

the merger of the commercial bank of

morocco remains beneficial. The profitability

ratio increased significantly after the

merger. Reddy et al. (2013) investigate the

pre- and post-merger financial performance

of Indian banks covering a period from 2000

to 2006. The study finds that the merger

remains positive for the financial

performance. Ahmed and Ahmed (2014)

assess the financial performance of Pakistani

manufacturing companies covering a period

of 2000 -2009. They find that the merger

resulted in improving the over-all

performance of the firm. Further, after the

merger, there is significant improvement in

profitability, and the merger remains

positive. Arvanitis and Stucki (2015)

analyses the pre- and post-merger financial

performance of mergers that happened

among small and medium-sized firms in

Switzerland during 2008-2010. The study

revealed that the merger had a positive

impact on financial performance, and the

profitability ratios showed improved

performance. Joash and Njangiru (2015) by

using the data from 2000 to 2014, come to the

conclusion that the merger remains positive

for Kenyan banks. After the merger, the

Return on investment & earning per

share has increased significantly. Rani et al.

(2015) analyses the pre- and post-merger

financial performance of 305 Indian firms

using a paired t-test. The study finds that after

the merger the financial performance has

upgraded and Return on equity, Return on

capital employed, the Net profit margin

increased significantly. Daniya et al. (2016)

examine the pre- and post-merger financial

performance of 24 Nigerian banks and

concludes that after the merger the financial

performance improved and, as a result, the

profitability ratios increased

significantly. Al-Hroot (2016) using the

paired sample t-test on seven different

Jordanians firms finds that the merger

resulted in improving the overall

performance of the firm. Das (2014) studied

the pre- and post-merger financial

performance of regional rural banks using a

paired t-test. The study finds that the merger

has a positive impact on financial

performance and increases profitability

significantly. Patel and Shah (2016)

investigate the pre- and post-merger financial

performance of the Indian banking industry

covering a period of 2001 to 2014. They find

the impact of merger to be positive and

significant for financial performance.


This study is carried out with the objective

to know the before- and after-the- merger

comparative position of long term

profitability with respect to the selected

Indian banks. Further, the study also aims to

analyse the financial performance of the

selected banks with the average of the

industry in both pre - and post-merger. This

study uses five years before and five years

after the merger event to test the hypothesis.

Total duration of eleven years is taken into

consideration. The year of merger is

designated as (T0) whereas the five years

before and after the merger are shown as (-

T5, -T4, -T3, -T2, - T1) and (T1, T2, T3, T4,

T5), respectively. This study is carried out

using a descriptive research design. The

study is carried out by using the Basic

research approach.

Data

Here five banks, namely Bank of Baroda,

IDBI Bank, Indian Overseas Bank, Oriental

Bank of Commerce and State bank of India

are selected as per the following criteria.

• Banks belong to the public sector

• Banks have domestic merger

• Banks involved in merger and

acquisition activity during 2003 to 2018

• Accounting data and financial ratios of

the sample banks are available The data

contain the profitability ratios, balance

sheet and profit and loss ac-count. The

reliable data are taken from ACE Equity

database software, Reports and

Publications of Reserve Bank of India,

Centre for Monitoring Indian Economy

(CMIE), and Reports and Publications of

Indian Banker’s associations. The

sample banks are selected using the

judgmental sampling method.

Variables and Hypothesis

To perform the financial analysis, various

ratios and variables such as Business per

Employee, earnings per share, net profit

margin, and profit per employee, return on

assets, return on equity, yield on advances

and yield on investments are used. These

variables were selected by various

researchers in the past, for example Har-

rison et al. (1991), Lees (1992), Pawaskar

(2001), Shanmugam and Nair (2004), Feroz

et al. (2005), Mumcu and Zenginobuz

(2005), Demirbag et al. (2007), Ku-mar and

Bansal (2008), Mantravadi and Reddy

(2008), Ramakrishnan (2008),

Kumar (2009), Uddin and Boateng (2009),

Ramakrishnan (2010), Kemal

(2011), Kilic (2011), Dobre et al. (2012),

Francoeur et al. (2012), Reddy et al. (2013),

Sufian et al. (2012), Meghouara and Sbai

(2013), Ahmed and Ahmed (2014), Ghosh

and Dutta (2014), Jayaraman et al. (2014),

Duggal (2015), Joash and Njangiru (2015),

Lakstutiene et al. (2015), Patel and Patel

(2015), Rani et al. (2015), Daniya et al.

(2016), Al-Hroot (2016), Das (2014), Patel

and Shah (2016), Rashid and Naeem (2017)

and Vulanovic (2017). The business per

employee and profit per employee are

variables which concern only the banking

industry. But as these variables are important

in order to evaluate the financial

performance with respect to human

resources, the present study considers these

variables.

Here, a paired t-test is used to check the

before- and after-the-merger

comparative position of long term

profitability. The paired t-test is

considered as important to check the

comparative positive and used by

various researchers in the past, for

example Harrison et al. (1991),

Pawaskar (2001), Shanmugam and Nair

(2004), Mumcu and Zenginobuz

(2005), Demirbag et al.(2007),

Mantravadi and Reddy (2008),

Ramakrishnan (2008), Kumar (2009),

Uddin and Boateng (2009),

Ramakrishnan (2010), Kemal (2011),

Dobre et al. (2012), Francoeur et al.

(2012), Reddy et al. (2013), Sufian et al.

(2012), Meghouara and Sbai (2013),

Ahmed and Ahmed (2014), Ghosh and

Dutta (2014), Jayaraman et al. (2014),

Duggal (2015), Joash and Njangiru

(2015), Lakstutiene et al. (2015), Patel

and Patel (2015), Rani et al. (2015),

Daniya et al. (2016), Al-Hroot (2016),

Das (2014), Patel and Shah (2016),

Rashid and Naeem (2017) and

Vulanovic (2017).

The variable wise hypotheses for

performing the paired t-test are listed as

below. Here, the period before merger and

the period after merger are characterized as

BM & AM, respectively.

Table 1: Variable wise hypothesis

Variable Null Hypothesis Alternative

Hypothesis

Return on Equity (ROE) ROEBM = ROEAM ROEBM ≠

ROEAM

Return on Assets (ROA) ROABM = ROAAM ROABM ≠

ROAAM

Earnings per Share (Rs).

(EPS)

EPSBM = EPSAM EPSBM ≠ EPSAM

Yield on Advances

(YOA)

YOABM =

YOAAM

YOABM ≠

YOAAM

Yield on Investments

(YOI)

YOIBM = YOIAM YOIBM ≠ YOIAM

Net Profit Ratio (NP) NPBM = NPAM NPBM ≠ NPAM

Profit per Employee

(PPE)

PPEBM = PPEAM PPEBM ≠ PPEAM

Business per Employee

(BPE)

BPEBM = BPEAM BPEBM ≠ BPEAM

Source: Author’s creation

Result and discussion

The study is performed using two different

sets of analysis. 1) The pre- and post-merger

financial performance measurement 2)

Comparative Analysis

The pre- and post-merger financial

performance measurement

Each variable here is compared on the basis

of the average value of five years be-fore

and five years after the merger, respectively.

The results of all five banks are depicted

below.

Bank of Baroda

Table 2: Pre and Post merger financial

performance of Bank of Baroda

Source: Author’s calculation

Table 2 shows the comparative

profitability situation of Bank of Baroda.

The average earning per share (EPS)

before the merger had been Rs. 20.84

which in-creased to Rs. 34.90 after the

merger. The t-value (-3.72) and

significance value (0.020) reveals that after

the merger the EPS enhanced significantly.

The yield from advances decreased from

18.89 % to 11.79% after the merger.

Further, the t-value (12.92) and

significance value (0.0002) divulge the

significant impact of merger on yield on

advances. The yield on advances decreased

due to underutilization of advance in post-

merger period. The yield on investment

also decreases from 11.13% to 8.37%. The

t-value (6.39) and significance value

(0.003) shows the significant impact of

merger on yield on investment. The yield

on investment de-creases due to not

utilizing the investments in optimum level

in the post-merger period. Return on assets

does not change with respect to the merger.

The reason is proper utilization of assets in

both pre- and post-merger period. Return

on equity witnessed minor change in post-

merger period (14.10%) as compared to the

pre-merger period (15.81%). The t-value

(1.15) and significance value (0.31) shows

insignificant impact of merger on return on

equity. The net profit ratio decreased from

27.88% to 22.26% and the t-value (0.21)

and significance value (0.008) shows there

is significant impact. Profit per employee

increases three times after the merger, and

t-value (-3.65) as well as significance value

(0.021) show significant impact. The

business per employee rose 2.81 times after

the merger. The t-value (-4.19) and

significance value (0.013) reveal that the

merger had significant impact on business

per employee. The increase in business per

employee and profit per employee shows

better utilization of human resources.

Overall, the merger has negative impact on

Return on equity (%), Net Profit Ratio,

Yield on Advances & Yield on

Investments (%) and positive impact on

Return on assets, Earnings per Share, Profit

per Employee and Business per Employee.

Particula

rs

Durati

on

Mea

n

Standar

d

Deviatio

n

t-

valu

e

Sig.

Earnings

Per Share

(Rs.)

Pre-

Merger

Post-

Merger

20.8

4

34.9

0

9.06

16.15 -

3.72 0.020

Yield on

Advances

(%)

Pre-

Merger

Post-

Merger

18.8

9

11.7

9

2.04

1.75 12.9

2

0.000

2

Yield on

Investme

nts (%)

Pre-

Merger

Post-

Merger

11.1

3

8.37

0.48

0.90 6.39 0.003

Return on

Assets

(%)

Pre-

Merger

Post-

Merger

0.88

0.87

0.28

0.14 0.17 0.86

Return on

Equity

(%)

Pre-

Merger

Post-

Merger

15.8

1

14.1

0

4.64

2.69 1.15 0.31

Net Profit

Ratio (%)

Pre-

Merger

Post-

Merger

27.8

8

22.2

6

51.62

32.12 0.21 0.008

Profit per

Employee

(Rs. In

Lakh)

Pre-

Merger

Post-

Merger

0.01

0.03

0.01

0.02 -

3.65 0.021

Business

per

Employee

(Rs. In

Lakh)

Pre-

Merger 2.05 0.48

-

4.19 0.013

Oriental Bank of Commerce


performance of Oriental bank of

commerce


Table 3 shows the comparative profitability

situation of Oriental bank of commerce. The

EPS increases from Rs. 20.20 to Rs. 26.55

after the merger. The t-value (-1.14) and

significance value (0.031) reveals

significant improvement in the EPS after

the merger. The Yield on Advances is

decreased from 22.10% to 12.70%. The t-

value (5.91) and significance value (0.04)

divulges the significant impact of the

merger. The yield on investment also

decreases from 12.88% to 9.47%. Further,

the t-value (4.97) and significance value

(0.007) shows the significant impact of

merger on the yield on investment. The

bank has not utilized the investment and

advances in optimum level which resulted

in decrease in their respective yield. After

the merger, the return on assets is

decreasing with difference of 0.34%, which

is significant as per the t- value (4.97) and

significance value (0.027). The assets

increase after the merger, but due to

underutilization, the return on assets

decreased in the post-merger period. The

Return on Equity witnessed significant

decrease in the pre-merger period (21.59%)

and post-merger period (13.77%). Further,


(0.012) shows the significant impact. The

equity increase after the merger but due to

underutilization, the return on equity

decreased in post-merger period. The Net

Profit Ratio witnessed negative impact of

the merger where the ratio decreased from

28.91% to 19.94%, after the merger. The t-


show a significant impact on the negative

side. The Profit per employee increased

after the merger with double value. The t-

value (-5.71) and significance value (0.004)

show a significant impact of the merger on

the positive front. The Business per

employee also increased significantly from

Rs. (In Lakh) 3.116 to Rs. (In Lakh) 7.788

and it was supported by t-value (-5.65) and

significance value (0.004). After the

merger, the business per employee and

profit per employee increased due to

optimum utilization of human resources.

Overall, the merger had a negative impact

on Return on assets (%), Return on equity

(%), Net Profit Ratio, Yield on Advances &

Yield on Investments (%) and positive

Particul

ars

Durati

on

Me

an

Standa

rd

Deviati

on

t-

val

ue

Sig

.

Earnings

Per Share

(Rs.)

Pre-

Merger

Post-

Merger

20.2

0

26.5

5

9.86

9.87 -

1.14

0.0

31

Yield on

Advances

(%)

Pre-

Merger

Post-

Merger

22.1

0

12.7

0

3.74

0.90 5.91

0.0

4

Yield on

Investmen

ts (%)

Pre-

Merger

Post-

Merger

12.8

8

9.47

0.52

1.04 4.94

0.0

07

Return on

Assets

(%)

Pre-

Merger

Post-

Merger

1.27

0.93

0.38

0.39 1.26

0.0

27

Return on

Equity

(%)

Pre-

Merger

Post-

Merger

21.5

9

13.7

7

5.57

6.62 1.93

0.0

12

Net Profit

Ratio (%)

Pre-

Merger

Post-

Merger

28.9

1

19.9

4

34.24

76.27 0.28

0.0

07

Profit per

Employee

(Rs. In

Lakh)

Pre-

Merger

Post-

Merger

0.02

8

0.05

6

0.013

0.005 -

5.71

0.0

04

Business

per

Employee

(Rs. In

Lakh)

Pre-

Merger

Post-

Merger

3.11

6

7.78

8

0.75

2.58 -

5.65

0.0

04

impact on Earnings per Share, Profit per

employee and Business per employee.

IDBI Bank


performance of IDBI Bank



situation of IDBI Bank. The EPS in-creased

from Rs. 5.40 to Rs. 12.32 after the merger.

The t-value (-6.47) and significance value

(0.0029) divulge significant improvement in

the EPS after the merger. The Yield on

Advances is decreased from 11.25% to

10.79%. The t-value (0.223) and

significance value (0.834) reveals an

insignificant impact of the merger. The

yield on investment also decreases from

7.65% to 6.42%. Further, the t-value (0.682)

and significance value (0.532) shows an

insignificant impact of merger on the yield

on investment. The bank has underutilized

the investment and advances which resulted

in decrease in their respective yield. The

return on assets decreased from 0.89 % to

0.61%, in the post-merger period. The t-


show insignificant impact of the merger.

The assets increases after the merger but due

to underutilization, the return on assets


Return on Equity witnessed a significant


and post-merger period (12.44%). Further,


(0.032) show a significant impact. Equity

increased after the merger but due to

underutilization, the return on equity


Net Profit Ratio witnessed negative impact

of the merger where the ratio decreased

from 101.45% to 25.19%, after the merger.

The t-value (2.86) and significance value

(0.0455) show a significant impact. The

Profit per employee increased from Rs. (in

Lakh) 0.07 to Rs. (in Lakh) 0.09 after the

merger. The t-value (-2.05) and significance

value (0.0109) show a significant impact.

The Business per employee also increased

significantly from Rs. (in Lakh) 11.10 to Rs.

(in Lakh) 19.98 which was supported by t-

value (- 9.27) and significance value

(0.0005). After the merger, the business per

employee and profit per employee increased

due to the optimum utilization of human

resources. The merger has the most negative

impact on the net profit ratio among all the

variables. Overall, the merger remains

average from the financial performance

point of view.

Particula

rs Duration Mean

Standa

rd

Deviati

on

t-

valu

e

Sig

.

Earnings

Per Share

(Rs.)

Pre-Merger

Post-

Merger

5.40

12.32

1.60

3.23 -6.47

0.0

02

9

Yield on

Advances

(%)

Pre-Merger

Post-

Merger

11.25

10.79

4.04

0.81 0.22

3

0.8

34

Yield on

Investme

nts (%)

Pre-Merger

Post-

Merger

7.65

6.42

3.66

1.16 0.68

2

0.5

32

Return on

Assets

(%)

Pre-Merger

Post-

Merger

0.89

0.61

0.25

0.07 2.37 0.0

76

Return on

Equity

(%)

Pre-Merger

Post-

Merger

17.21

12.44

7.92

2.20 1.12 0.0

32

Net Profit

Ratio (%)

Pre-Merger

Post-

Merger

101.45

25.19

51.62

19.69 2.86

0.0

45

5

Profit per

Employe

e (Rs. In

Lakh)

Pre-Merger

Post-

Merger

0.07

0.09

0.03

0.02 -2.05

0.0

10

9

Business

per

Employe

e (Rs. In

Lakh)

Pre-Merger

Post-

Merger

11.10

19.98

4.37

4.20

-9.27

0.0

00

5

Indian Overseas Bank


performance of Indian Overseas Bank



situation of Indian Overseas Bank. The

average EPS increased from Rs. 12.72 to Rs.

17.98 after the merger. The t-value (-1.39)

and significance value (0.023) reveal that

after the merger, the EPS improved

significantly. The yield from advances is

decreased from 15.84% to 12.51% after the

merger. Further, the t-value (2.58) and

significance value (0.06) divulge an

insignificant impact of the merger on the

yield on advances. The yield on advances

decreased due to underutilization of advances

in the post-merger period. The yield on

investment also decreased from 10.22% to

7.69%. The t- value (3.90) and significance

value (0.017) shows significant impact of the

merger on the yield on investment. The yield

on investment decreased due to

underutilization of investment in the post-

merger period. The return on assets decreased

from 1.28% to 0.86%, which is insignificant

as per the t-value (1.86) and significance

value (0.13). The assets increased after the

merger but due to underutilization, the return

on assets decreased in the post-merger period.

Return on equity experienced a significant

change in the post-merger period (18.51%) as

compared to the pre-merger period (31.20%).

The t-value (5.55) and significance value

(0.005) show there is a significant impact of

the merger on return on equity. The net profit

ratio decreased from 36% to 6.49% in the

post- merger period.

Further, t-value (1.58) and significance value

(0.018) show a significant impact. Profit per

employee increased 1.25 times after the

merger. The t- value (-1.84) and significance

value (0.013) show a significant impact.

Business per employee also increased 2.72

times after the merger. The t- value (-8.23)

and significance value (0.001) reveal that the

merger had a significant impact on business

per employee. Increase in business per

employee and profit per employee shows

better utilization of human resources.

Overall, the merger remains average from the

financial performance point of view.

Particula

rs

Durati

on

Mea

n

Standar

d

Deviati

on

t-

valu

e

Sig.

Earnings

Per Share

(Rs.)

Pre-

Merger

Post-

Merger

12.7

2

17.9

8

3.84

5.14 -

1.39

0.02

3

Yield on

Advances

(%)

Pre-

Merger

Post-

Merger

15.8

4

12.5

1

3.40

0.96 2.58 0.06

Yield on

Investme

nts (%)

Pre-

Merger

Post-

Merger

10.2

2

7.69

1.33

1.09 3.90

0.01

7

Return on

Assets

(%)

Pre-

Merger

Post-

Merger

1.28

0.86

0.15

0.36 1.86 0.13

Return on

Equity

(%)

Pre-

Merger

Post-

Merger

31.2

0

18.5

1

3.32

7.55 5.55

0.00

5

Net Profit

Ratio (%)

Pre-

Merger

Post-

Merger

36.0

0

6.49

25.23

35.78 1.58

0.01

8

Profit per

Employee

(Rs. In

Lakh)

Pre-

Merger

Post-

Merger

0.03

0.04

0.01

0.009 -

1.84

0.01

3

Business

per

Employee

(Rs. In

Lakh)

Pre-

Merger

Post-

Merger

3.06

8.33

1.07

2.47 -

8.23

0.00

1

State Bank of India


performance of State Bank of India



situation of State bank of India. The EPS

increased from Rs. 112.92 to Rs. 134.85

after the merger. The t-value (-0.535) and

significance value (0.62) exposes

insignificant impact of merger on the EPS.

The yield on advances increased from

11.89% to 11.99%. The t-value (0.56) and

significance value (0.60) reveal

insignificant impact of the merger. The

yield on investment also increased from

7.36% to 7.85%. Further, the t-value (-0.70)

and significance values (0.519) show

insignificant impact of the merger on yield

on investment. The bank had utilized the

investment and advances in an efficient

manner which resulted in an increase in

their respective yields. The return on assets

decreased from 0.96% to 0.79%. Further,


(0.100) reveal an insignificant impact of the

merger on the return on assets. The assets

increased after the merger but due to

underutilization, the return on assets

decreased in post-merger period. The

Return on Equity witnesses the significant


and the post-merger period (12.28%).

Further, the t-value (2.59) and significance

value (0.060) shows the in-significant

impact. The equity increase after the merger

but due to underutilization, the return on

equity decreased in post-merger period. The

net profit ratio witnessed negative impact of

merger where the ratios decreased from

17.93% to 9.96%, after the merger. The t-


showed a significant impact. The profit per

employee increased from Rs. (in Lakh)

0.03 to Rs. (in Lakh)

0.05 after the merger. The t-value (-3.67) and significance value (0.02) shows a significant impact. The business per employee also increased significantly from Rs. (in Lakh) 11.10 to Rs. (in Lakh) 19.98 which was supported by t-value (-14.91) and significance value (0.0001). After the merger, the profit per employee and business per employee increased due to optimum utilization of human resources. The merger had positive impact on all variables namely, Earnings per Share, Yield on Advances, Yield on investments, Profit per employee and Business per employee. The return on equity and return on assets experienced negative impact of the merger.

Particular

s Duration Mean

Stand

ard

Devia

tion

t-

val

ue

Sig

.

Earnings Per

Share (Rs.)

Pre-Merger

Post-

Merger

112.92

134.85

29.73

71.70

-

0.5

35

0.6

2

Yield on

Advances

(%)

Pre-Merger

Post-

Merger

11.89

11.99

1.05

0.56 0.5

6

0.6

0

Yield on

Investments

(%)

Pre-Merger

Post-

Merger

7.36

7.85

0.95

0.64

-

0.7

0

0.5

19

Return on

Assets (%)

Pre-Merger

Post-

Merger

0.96

0.79

0.10

0.15 2.1

2

0.1

00

Return on

Equity (%)

Pre-Merger

Post-

Merger

16.21

12.88

1.04

2.64 2.5

9

0.0

60

Net Profit

Ratio (%)

Pre-Merger

Post-

Merger

17.93

9.96

22.32

25.91 0.4

6

0.0

16

Profit per

Employee

(Rs. In Lakh)

Pre-Merger

Post-

Merger

0.03

0.05

0.01

0.01

-

3.6

7

0.0

2

Business per

Employee

(Rs. In Lakh)

Pre-Merger

Post-

Merger

4.61

9.49

1.39

2.10

-

14.

91

0.0

00

1

Table 7: Comparative analysis of

financial variables of sample banks with

average of all banks


Table 7 presents a comparative analysis of

various financial performance variables of

acquiring banks and the banking industry.

Among all the banks, SBI has higher

Earning per share than the average of all

banks, in both pre - and post-merger period.

Rests of the banks have their EPS below

average. The Bank of Baroda and Oriental

bank of commerce had higher yield on

advances and yield on investment as

compared to the average of all banks in the

pre-merger period. But in the post-merger

period, yield on advances and yield on

investment of all the banks fell below

average. It further reveals that after the

merger, the yield on investment of banks

does not grow at the industry average rate.

Indian overseas bank and Oriental bank of

commerce have found their return on assets

and return on equity higher than the average

of the industry in both pre- and post-merger

period. Interestingly, the Bank of Baroda had

a higher Return on assets and return on equity

as compared to that of the industry in the post-

merger period, which further enhances the

improvement in financial performance.

Among all the banks, only State bank of India

and Indian overseas bank have reported

lower net profit ratio as compared to the

industry. IDBI Bank and State bank of India

have higher profit per employee as compared

to the industry in both pre- and post-merger

situations. Profit per employee of the Indian

overseas bank is higher as compare to

average in the pre-merger period, but it falls

below in post-merger period. Profit per

employee of Oriental bank of commerce had

been below the average in the pre-merger

period and rose above the average in the post-

merger period. IDBI Bank and State bank of

India have higher business per employee in

both pre- and post-merger periods and the rest

of the banks fall below average.

Summary and Conclusion

Using the paired t-test, the paper compares

the before and after merger position of long-

term profitability with respect to the selected

Indian banks for the period from 2003 to

04 to 2017/18. The pre-merger and post-

merger financial performance has been

measured by selecting certain financial

variables. Bank of Baroda, IDBI Bank,

Indian Overseas Bank and Oriental Bank of

Commerce has experienced a negative

impact of the mergers on most of the

variables and a positive impact on a few

variables. In the post-merger period, the

profitability of all four banks decreased.

Particu

lars Period BOB

Oriental

Bank of

Commerce

IDBI

Bank IOB SBI

Averag

e of all

Banks

Earnings

Per Share

(Rs.)

Pre-

Merger

Post-

Merger

20.84

34.9

20.2

26.55

5.4

12.32

12.72

17.98

112.92

134.85

32.24

41.84

Yield on

Advance

s (%)

Pre-

Merger

Post-

Merger

18.89

11.79

22.1

12.7

11.25

10.79

15.84

12.51

11.89

11.99

16.21

15.99

Yield on

Investme

nts (%)

Pre-

Merger

Post-

Merger

11.13

8.37

12.88

9.47

7.65

6.42

10.22

7.69

7.36

7.85

10.32

9.83

Return

on Assets

(%)

Pre-

Merger

Post-

Merger

0.88

0.87

1.27

0.93

0.89

0.61

1.28

0.86

0.96

0.79

0.98

0.84

Return

on

Equity

(%)

Pre-

Merger

Post-

Merger

15.81

14.1

21.59

13.77

17.21

12.44

31.2

18.51

16.21

12.88

21.24

13.48

Net

Profit

Ratio

(%)

Pre-

Merger

Post-

Merger

27.88

22.26

28.91

19.94

101.4

5

25.19

36

6.49

17.93

9.96

39.42

21.43

Profit per

Employe

e (Rs. In

Lakh)

Pre-

Merger

Post-

Merger

0.01

0.03

0.028

0.056

0.07

0.09

0.03

0.04

0.03

0.05

0.0284

0.0491

Business

per

Employe

e (Rs. In

Lakh)

Pre-

Merger

Post-

Merger

2.05

5.77

3.116

7.788

11.1

19.98

3.06

8.33

4.61

9.49

4.243

9.13

However, for all four banks, the earnings per

share, profit per employee and business per

employee showed positive trend and have

grown after the merger. The State bank of

India had a positive impact of the merger on

the majority of the variables namely, earnings

per share, yield on advances, yield on

investments, profit per employee and

business per employee. After the merger,

assets, equity, investment and advances of all

banks increased, but some banks would

not be able to utilize these resources at the

optimum level, and it resulted in decrease in

their respective yields. After the mergers, the

business per employee and profit per

employee in all the banks have increased due

to optimum utilization of human resources.

Overall, Bank of Baroda, IDBI Bank, Indian

Overseas Bank and Oriental Bank of

Commerce has experienced mix impact of

merger where certain variables found a

negative impact and some variables found a

positive impact. The State bank of India

also finds a mix impact of merger, but the

impact is more towards the positive side. As

compared to other banks, the merger of State

bank of India had more positive impact on

profitability variables. Further, the

comparative analysis of various financial

performance variables of acquiring bank /

acquired banks and the banking industry is

also performed. Bank of Baroda and Oriental

bank of commerce experienced decreases in

yield on advances, and yield on investment

as compared to the average of all banks in the

post-merger period. IDBI Bank and State

bank of India had higher business per

employee and profit per employee in

both pre- and post-merger periods.

References

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Mergers and acquisitions: Effect on

financial performance of manufacturing

companies of Pakistan. Middle- East

Journal of Scientific Research, 21(4):

689-699.

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Mergers on Financial Performance of the

Jordanian Industrial Sector.

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Business Studies, 6(1): 2230-9519.

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mergers and acquisitions among small

and medium-sized enterprises affect the

performance of acquiring firms?.

International Small Business Journal,

33(7): 752-773.

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Abdulrahaman, Y. (2016). Impact of

Merger and Acquisitions on the

Financial Performance of Deposit

Money Banks in Nigeria. Arabian

Journal of Business and Management

Review, 6(4): 1-5.

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the Regional Rural Banks: An

Evaluation between the Pre-merger and

Post-merger Era. Jindal Journal of

Business Research, 3(1-2): 14-28.

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E. (2007). Performance of mergers and

acquisitions in the pharmaceutical

industry: a comparative perspective.

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41-62.

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E., and Caloian, F. (2012). Management

performance audit in mergers and acquisitions. Procedia Economics and

Finance, 3: 309-314.

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performance of acquiring firms: A case

study on Indian pharmaceutical industry.

International Journal of Research in

Management and Business Studies, 2(3):

24-28.

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(2005). Performance measurement in

corporate governance: do mergers

improve managerial performance in the

post-merger period?. Review of

Accounting and Finance, 4(3): 86-100.

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Rakoto, P. (2012). Ownership structure,

earnings management and acquiring firm

post-Merger market performance:

evidence from Canada. International

Journal of Managerial Finance, 8(2):

100-119.

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Mergers and acquisitions: A strategic

tool for restructuring in the Indian

telecom sector. Procedia Economics and

Finance, 11: 396-409.

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Restructuring, C. (2013). V

• ikas Publishing House Pvt. Ltd.

Brand Management of Smart Devices in Bangalore City

Mr. Mohammed Yousuff Ahmed

Student

Al-Ameen Institute of Management Studies

Abstract

People buy smart devices to meet their needs, status, comfort, etc., among different brands

of smart devices, there is huge competition. In this context, it is necessary to find out how

many consumers prefer which brand over other brands. It needs to know the attributes

necessary in the brand building, and brand management to overcome the competition

existing in the market. This paper has addressed the impact of brand management on smart

devices concerning quality, customer satisfaction, and customer loyalty. The study is a

descriptive research and conducted a survey in Bangalore city where the respondents were

the users of smartphones. It has been identified that the respondents are influenced by brand

ambassador, are influenced by sponsoring, and retail image, personnel selling, brand

champions respectively.

Keywords: Brand management, customer satisfaction, customer loyalty, quality,

smart devices.

Introduction:

Brand management is a fundamental part of

individual and business improvement. It does

not just build the voice and buyer's attention

to a brand, yet it additionally gives it a

character and worth. The appearance of

participatory and intelligent stages has

allowed numerous organizations to improve

mark mindfulness and value. If you have

been considering building an individual or

business mark, at that point you must realize

that brand management takes a lot of time and

assets. In the area that tails, we might

characterize mark building and take a gander

at various kinds of brands and the means to

make a healthy brand. Brands are in stores, in

advertisements, television commercials and

with the internet, they are everywhere we

look while browsing through the vast

networks of our interests. Brands are

extremely fascinating. Most companies

recognize brands but fail to see the true

essence behind the brand or the reason for

their purchasing behavior. Many companies

see branding as a process that involves only

tangible aspects such as the visual appearance

of a company.

Statement of problem:

Generally, people buy smart devices to meet

their needs, status, comfort, Etc. Among

different brands of smart devices, there is

huge competition. In this context, it is

necessary to find out how many consumers

prefer which brand over other brands. It

needs to know the attributes necessary in the

brand building, and brand management to

overcome the competition existing in the

market. Therefore this study has been

conducted to evaluate the necessary

techniques to be used in brand building.

Objectives:

• To study the brand management of

smart devies in Bangalore City.

Scope of the Study:

Brand management scope helps to collect the

required information from a team that has

experienced, implemented and successful. It

leads to track records in building brand and

creating healthy business in the market to a

target customer. It applies to a selected

company. The study was conducted in

Bangalore City.

Methodology:

A descriptive type of research design has

been used for the study. Descriptive research

methods are used when the researcher wants

to describe specific behaviour as it occurs in

the environment.

Data Collection:

1. Primary Data: Primary data is collected

by

a. Observation : The observation method was

used to add value and be effective and

adequate on the respondents response.

b. Questionnaire: A well structured

questionnaire were framed and given to the

respondents who were using smart devices

and collected the data.

c. Interviewing : The respondents were asked

the questionnaires and filled the response, as

some respondents were not to ready to fill but

were ready to give their oral opinion on it.

Hence, it was taken in the mode of personal

interview and collected the information

required for research.

The collection of data has been done by using

the aforesaid methods.

2. Secondary Data

The secondary data is collected from

journals, publications, research papers,

dailies Magazine, the internet, etc.,


Sampling Unit:

The sample unit for the study is the users of

Smartphones in Bangalore.

Sampling Technique:

Simple random sampling technique is used to

collect the data, as many people were using

the smartphone devices and to reduce the

bias involved when compared to any other

sampling.

Sample Size:

Sample size of 100 respondents is taken for

the study, where the questionnaires were

distributed more to users of the smartphones

Analysis

Table No. 1 : Age Group Of Respondents

Particulars

(age)

No. of

respondents

Percentage

20-25 83 83

25-30 14 14

30-40 03 03

40 above 00 00

Total 100 100

Analysis

There are 83 respondents belongs to the age

group of 20-25, 14 respondents are of 25-30

age group, 03 respondents are of 30-40 age

group respectively. From the above table, we

can see that most of the respondents are from

the age group of 20-25, hence if the

companies try to look after improving the

features which can be used by these people it

will help them in increasing the sales.

Table No.2 : Gender Of The Respondents

Particulars

(gender)

No. of

respondents

Percentage

Male 72 72

Female 28 28

Total 100 100

Analysis

We find that the 72 persons are male and 28

of the respondents are female. According to

the above table, male respondents are more

than the female respondents towards the

usage of smart devices. Hence if the

companies try to focus on improving features

concerning females, it might help them in

increasing sales.

Table No. 3 : Occupation Of The

Respondents

Particulars

(occupation)

No. Of

respondents

Percentage

Own business 19 19

Salaried 46 46

Student 29 29

Others 06 06

Total 100 100

Analysis

We can notice that the salaried group of

people uses smart devices when compared to

other working classes, hence the companies

should try to improvise the features of smart

devices concerning the salaried type of

working group and find that 19% of the

respondent's occupation is own business, the

major respondents are salaried persons with

46%, 29% of the respondents are students,

06% of the respondents are belong to other

occupations.

Table No. 4 : Income Range of the

Respondents

Particulars No. of

respondents

Percentage

Less than Rs.1

lakh per Annum

42 4

Rs. 1to Rs. 5

lakhs per Annum

48 48

Rs. 5 to Rs.8

lakhs per Annum

08 08

Rs. 8 to Rs. 10

per Annum

02 02

More than ten

per Annum

00 00

Total 100 100

Analysis

From the above table 4, In the 100

respondents, 42% of the respondents are in

the range of less Rs.1 lakh per annum, 48%

of the respondents are in the range of Rs.1 to

5 lakhs per annum, 08% of the respondents

are in the range of Rs.5 to 10 lakhs per

annum, 02% of the respondents are in the

range of Rs. 8 to 10 lakhs per annum, 00%

of the respondents are in the range of more

than 10 lakhs per annum.

Table No. 5 : Qualification of the

Respondents

Particulars

(qualification)

No. of

respondents

Percentage

SSLC 11 11

PUC 21 21

Post

Graduation

36 36

Others 04 04

Total 100 100

Analysis

11% of the respondents are qualified in

SSLC, 21% of the respondents are qualified

in PUC, 36% of the respondents are qualified

to graduate, 28%of the respondents are

qualified in postgraduate, and 04% of the

respondents belong to other categories.

Table No. 6 : Present Smartphone of the

Respondents

Particulars

(smartphones)

No. of

respondents

Percentage

Samsung 20 20

Apple 08 08

Oppo 25 25

Vivo 08 08

Redmi 22 22

Gionee 02 02

Oneplus 03 02

Analysis

It clearly shows that 20% of the respondents

are the users of Samsung Smartphone's, 25%

of the respondents are the users of OPPO

Smartphone, 22% of the respondents are the

users of REDMI Smartphone, and 08% of the

respondents are the users of VIVO, NOKIA,

and other Smartphone

Table No. 7 : Respondents Frequency in

Upgrading Smartphone

Particulars No. of

respondents

Percentage

Frequency 36 30

Occasionally 50 50

Never 14 14

Total 100 100

36% of the respondents are frequently

changing their smartphones, 50% of the

respondents are occasionally changing their

smartphones, and 14% of the respondents are

never changing their smartphones.

Table No. 8 : Most Desirable Brands in

Smartphone’s

Particulars No. of

respondents

Percentage

Samsung 27 27

Apple 12 12

Oppo 28 28

Vivo 07 07

Redmi 22 22

Others 04 04

Total 100 100

27% of the respondents are desire of

SAMSUNG brand Smartphone, 12% of the

respondents are desire of APPLE brand

Smartphone, 28% of the respondents are

desire of OPPO brand Smartphone, 07% of

the respondents are desire of VIVO brand

Smartphone, 22% of the respondents are

desire of REDMI brand Smartphone.

Table No.9 : Brand Prominence While

Considering Smartphone

Particulars No. of

respondents

Percentage

Yes 83 83

No 17 17

Total 100 100

Analysis

83% of the respondents are brand

prominence while considering smartphones

for purchase and 17% of the respondents are

not prominence to a brand.

Table No. 10 : Medium Of Brand

Familiarity in Smartphone’s

Particulars No. of

respondents

Percentage

Advertisement 46 46

Peer Groups 24 24

Social media 0 30

Total 100 100

Analysis : 46% of the respondents are

familiar with smartphones through

advertisement, 24% of the respondents are

familiar Smartphone with through peer

groups and 30% of the respondents are

familiar with Smartphones through social

media.

Table No. 11 : Most Convincing Factors

Decisive in Buying Smartphone

Particulars No. of

respondents

Percentage

Brand

ambassador

25 25

Sponsoring 14 14

Retail image 22 22

Personnel

selling

19 19

Brand

champions

20 20

Total 100 100

Analysis : We have been identified that 25%

of respondents are influenced by brand

ambassador and it has been also identified

that 14% of respondents are influenced by

sponsors. And 22%, 19% 20% are retail

image, personnel selling, brand champions

respectively are the respondent.

Table No. 12 : Preferred Mode of

Payment

Particulars No. of

respondents

Percentage

Loans 42 42

Full cash 58 58

Total 100 100

Analysis : 42% of the respondents prefer

loan mode of payments to buy Smartphone

and even we have analyzed that 58% of the

respondents prefer cash mode of payment to

buy smartphones.

Findings

• The major 83 respondents are belongs to

the age group of 20-25 years and that the

72 persons are male and 28 of the

respondents are female. The major

respondents are salaried persons with 46%

and 29% of the respondents are students.

• It is identified that 42% of the respondents

are in the range of less than Rs.1 lakh per

annum and 48% are in the range of Rs.1 to

5 lakhs per annum. The 36% of the

respondents are qualified graduate and

28% are qualified in post graduate.

• It is analysed 25% of the respondents are

the users of OPPO Smartphone and 22%

are the users of REDMI Smartphone. Our

36% of the respondents are frequently

changes their Smartphone and 50% are

occasionally upgrade their Smartphone,

where, we can clearly see that in 27% of

the respondents are desire of SAMSUNG

brand Smartphone, 12% APPLE brand

Smartphone, 28% OPPO brand

Smartphone, 07% VIVO brand

Smartphone, and 22% REDMI brand

Smartphone.

• 83 % of the respondents are brand

prominence while considering

Smartphone for purchase and 17% of the

respondents are not prominence to a

brand. 46% of the respondents are familiar

with Smartphone’s through

advertisement, 24% & 30% of the

respondents are familiar with

Smartphone’s through peer groups and

social media.

• 25% respondent are influenced by brand

ambassador and it has been also identified

that 14% of respondent are influenced by

sponsoring, and 22%, 19% 20% are retail

image, personnel selling, brand

champions respectively are the

respondent.

Suggestions

Companies should focus more on the female

customers, between the age group of 25-30.

Companies should target the salaried person

more compared to other. Customers are more

prominence to the brand which they buy, so

companies should try to maintain the brand

image. The quality of the Smartphone is more

rated to be a good brand. Companies should

endorsed by the well known Brand

Ambassador to influence more customers.

The familiar strategy is advertisement

through which the Smartphone are much

known for the population. Preferable choice

of media which has maximum impact for the

customer is social media. Companies should

develop more on the camera, music and

internet applications. Companies should

come up with more highly competent

strategies when compared to its competitors.

In seasonal promotional activities companies

should offer more on gifts and discounts to

enhance the sales. Companies should sponsor

still little more on the sporting events to grab

more popularity.

Conclusion

Establishing a new company and a new brand

is a massive undertaking. Its approach has

proved highly successful. Rebranding the

organization has made it possible to open up

new opportunities while building on the

strengths of the past. Because developing a

strong brand depends so heavily on creating

appropriate perceptions, the internal and

external communication exercises have been

vital in quickly building up the confidence of

stakeholders. Creating a consistent and well-

recognized character to the company

throughout the globe based on quality,

performance and presentation will have

beneficial results, reinforcing the ethos of

'one company, with one name and one vision'.

Limitations of Study

❖ The study is limited to 100 respondents.

❖ The study is conducted in Bangalore City

only.

❖ There might be bias in the information

provided by the respondents.

References

• De Chernatony, L. and McDonald. M.

(2003). Creating Powerful Brands,

Elsevier, Butterworth Heinemann.

• Doyle, P. (1989). Building successful

brands: the strategic options, Journal of

Marketing Management, 5(1), 77-95.

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Objective Factors in the Prediction of

Brand Choice: Ford versus Chevrolet,"

Journal of Business, 32 (October 1959),

340-69.

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equity, Journal of Advertising Research,

30(4), 7-12.

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Opinion Change, "Public Opinion

Quarterly, 28 (Fall 1964), 404-17.

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Yahia Ahmed Gumaa& Dr. Asif Perwej

'Assessment of Brand Preference in the

Indian Mobile Phones Market" in

www.theinternationaljournal.org, RJSSM:

Volume: 04, Number: 10, February

2015,pp 128- 136.

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Characteristics of Purchasers, "Journal of

Advertising Research, 1 (September

1960),6-12.

• Tucker, W. T. and John J. Painter.

"Personality and Product Use," Journal of

Applied Psychology, 45 (October 1961),

325-9.

• Wong, H.Y. and Merrilees, B. (2007).

Multiple roles for branding in international

marketing, International Marketing

Review, 24(4), 384-408.

• http://www.ipsosinsight.com/pressrelease.

aspx?id=3049 (accessed 28 Nov 2006).

• http://www.eiu.com/industry/article/78242

1662/the-smart-growth-in-indias-

phonemarket/2014-10-27.

• http://www.nokia.com/t-aboutus-ttsl-

organization. aspx

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.in/webapp/Aboutus/aboutushome.js

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nfpb=true&pageLabel=LG Page AboutLG

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http://beckysebring.com/2015/08/hello-

world/

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Understanding the growing thematic bond market

Lahari N Murthy

Assistant Professor

Acharya Institute of Graduate Studies

Gurupreet Kaur

Student, II BCom

Acharya Institute of Graduate Studies

Abstract

Sustainability bonds exclusively finance green and social projects. They are governed

by International Capital Market Association (ICMA) through clear guidelines for project

selection, use of proceeds and reporting. Thematic bonds are traditional fixed income

instruments which allow investors to finance specific investment themes such as climate

change, health, food, education, access to financial services and social housing. By linking

this traditional financial instrument with the ability to target specific Sustainable Development

Goals (SDGs), these financial products have proven to be a winning combination.

This paper tries to cover all the aspects concerning thematic bonds which is now a

very promising investment in the market.

Keywords: Finance, investment, sustainable.

Introduction

The financial system enables the exchange of

funds between lenders, investors, and

borrowers. In theory, by directing effort and

resources through monetary motivation, the

financial system should encourage people to

trade. Trade in turn should reward

comparative advantage and specialization,

thus raising productivity and efficiency. The

financial system has four core roles in

providing, namely, Safe custody for assets;

Payments system; Intermediation between

savers and borrowers; risk reduction

(insurance). The financial system consists of

a number of groups of actors, in particular:

Consumers — who make payments, borrow,

and save; Corporations (and similar

economic entities) — who make payments,

borrow and save; Investors — who commit

funds to direct, or indirect investments with

the expectation of financial returns — e.g.

corporate investors, asset managers, lenders;

Traders — who buy, sell and make markets

in securities; Guarantors — who insure or re-

insure project or corporate operations and

risks; Financial services firms — who

operate payment systems, manage

aggregation vehicles, and assist with mergers

& acquisitions; Professionals and financial

sector workers — ranging from accountants,

actuaries, lawyers, bankers, insurers, wealth

managers, investment advisors and other

professionals to the wider workforce of the

financial services industry;

Governments — who issue fiat currency (the

basis of modern monetary systems), regulate

financial services (most, especially banking

leverage, but also consumer protection,

market integrity, and competition), and

control the taxation system.

Objectives of the study

• To find the impact of current and

future innovation in financial

systems.

• To understand the different type of

thematic bonds.

• To analyse the setbacks for thematic

bonds.

Scope and Methodology

The scope of the study is qualitative and

comprehensive. It covers the growth and

development of a new set of investments in

the economy, current scenario of thematic

bonds in and around India. This study is a

descriptive study and data is analysed using

secondary source. It is collected from various

journals, magazines and paper articles.

Analysis

What Impact will Current and Future

Innovation in Financial Systems and

Services have on Sustainable

Development?

Financial system consists of institutional

units and markets that interact for the purpose

of mobilizing funds for investment and

providing facilities, including payment

systems, for financing commercial activity.

Jeff Bezos, founder of Amazon.com, is

reported to have said that technology creates

new markets in two, distinct waves. The first

wave of ‘shallow change’ sees companies

simply automating the old way of doing

things, improving productivity and cutting

costs. ‘Deep change’ comes as a second wave

of innovation when companies find that new

technology allows them to create completely

new processes, so-called ‘Uber moments’.

Over past few years, the disruptive effects of

technology have meant that the financial

services sector have embraced innovation in

technology, services, platforms to some

degree, systems. The pace of change in

financial services appears to insiders to be

accelerating, and there is a perception that

traditional models for financial services may

be under threat, but so far it appears as yet to

be ‘shallow change’. Accenture predicts that

full-service banks could lose approximately

35 percent of their market share by 2020 to

‘Pure Plays’ — whether online or mobile —

and up to 25 percent of US banks could

disappear completely during that same

period. Significant structural challenges have

drawn the focus of policymakers and

regulators, at both the international and

national level, to systemic market failures

particularly around; • Information

asymmetries — a seller knows more about an

item than the buyer. Likewise, a borrower

knows more about their financial condition

and future prospects than a lender. • agency

problems - conflict of interest is inherent in a

relationship where one party is expected to

act in another's best interests, but has a

financial stake in the outcome. For example,

a company's management wants to maximise

their remuneration and job security while a

company's stockholders will want to

maximise returns. • Inappropriate

competition or lack of competition

- monopolies distort markets through the

control of the supply of or trade in a

commodity or service. Oligopolies (where a

market structure is dominated by a few firms)

reduce competition and lead to rigid

Accenture Banking. • Externalizes — these

are consequence of an industrial or

commercial activity which affects other

parties without this being reflected in market

prices. The failure to charge for carbon and

other greenhouses gas emissions is an

‘externality’. Nicholas Stern, states that

“Climate change is the biggest market failure

the world has ever seen.” Financial services

institutions operate within frameworks of

policy, regulation and standards. Financial

services are among the most fluid and

international of industries. In an increasingly

global world, there are frequent conflicts

between local, national, regional, and

international standards in finance. For

example, conflicting requirements

in USA mortgage and insurance regulation

between states. Or conflicting European

Union requirements on data protection. Or

conflicts between the USA and European

regulators over the USA’s Foreign Account

Tax Compliance Act. Conflicts and systemic

failures have caused some policymakers and

regulators to call for regulation at a global

systems level. Thematic bonds are traditional

fixed income instruments which allow

investors to finance specific investment

themes such as climate change, health, food,

education, access to financial services and

social housing. By linking this traditional

financial instrument with the ability to target

specific Sustainable Development Goals

(SDGs), these financial products have proven

to be a winning combination. Illustrating the

consistent growth of this market is the fact

that the aggregate amount of thematic bonds

issued in 2017 reached approximately USD

700 billion. Within this category of

“thematic” fixed income instruments, the

most common types are, “Green Bonds”,

“Social Bonds” and “Sustainability

Bonds.” Other types of bonds under this

“thematic” umbrella is being developed.

Thematic bonds such as green, blue,

and social bonds (i) raise money for

investments that deliver sustainable

economic and social outcomes and (ii) Offer

investors the opportunity to earn competitive

financial returns and diversify their portfolios

while supporting positive societal impact.

These bonds are bought by a growing number

of investors who has begun to embed

Environmental, Social, and Governance

(ESG) standards into their investment

decisions. The World Bank (Bank) has

played a leading role in founding and

developing these markets.

Green Bonds

The most common instrument within the

thematic bond framework are Green Bonds.

Green Bonds are fixed income instruments

whose use of proceed finance or re-finance

environmental and climate projects, such as

renewable energy, energy efficiency,

pollution prevention and land conservation.

According to data from the Climate Bond

Initiative, global green bond emissions have

grown exponentially since 2015, rising

from $ 43.2 billion in 2015 to $ 155.4 billion

in 2017 and are expected to reach $

250 billion by the end of 2018. US, China and

France account for 56% of 2017 issuance and

the main issuers are International

development banks, local public authorities

and corporate. International Capital Market

Association (ICMA) has developed and

published voluntary guidance to bond market

participants for the issuance of the most types

of these thematic bonds. Among the

companies that have recently issued Green

Bondsare Iberdrola,HSBC, Orsted, Barcalay

s and Engie. In the Swiss

market, Helvetia Environmental, and the

Canton of Geneva were the first corporate

and governmental issuers to

successfully issue Green bonds. The

European Investment Bank

(EIB), KfW Group, and World Bank are in

the top three positions among the main

development banks that have issued green

bonds. Other public issuers are the European

Bank for Reconstruction and

Development, International Finance

Corporation, the African, and the Asian

Development Bank. Poland, France and Fiji

entered the market with the first green

sovereign bonds, while the United States has

issued numerous green bonds through local

authorities to help cities and local

communities strengthen their fight against

climate change and promote the transition to

renewable energy

Social Bonds

Social Bonds are bonds issued with the aim

of carrying out social development projects

and currently represent a small segment of

the market with enormous potential. Up to

now, only $5 billion dollars in Social Bonds

have been issued. In June

2017, ICMA provide guidance for this

category through the publication of the

‘Social Bonds Principles’, providing a careful

process of evaluation and selection of

projects, revenue management, reporting and

external review activities. In general, this

type of obligation covers: basic

infrastructure, access to essential services,

affordable housing, job creation through

funding and micro financing to SMEs, food

security and hygiene, and

finally socioeconomic progress and

strengthening. Again, these areas match

the SDGS, including “No Poverty”, “Reduce

Inequality,” “Decent Work” and “Gender

Equality.” Among the main issuers of Social

Bonds are International organization IFFIm,

the Dutch BNG, the Mexican

bank, National Financier and the

Spanish Kutxabank. These bonds have

financed access to vaccines and primary cares

(IFFIm) and social housing projects (BNG,

NF, Kutxa) respectively. Italy has become a

leading player in the Social Bonds market

through the social bond recently issued

by Cassa Depositi e Prestiti, which through

its liquidity platform, finances banks

members of the Italian Banking Association,

which in turn will finance SMEs operating in

depressed and / or areas affected by natural

disasters.

Sustainability Bonds

In addition to green and social bonds, there

are Sustainability Bonds. These bonds

finance both green and social projects. To

date, they are the newest version of these

types of bonds and have been well-

received by the investors as was

demonstrated by the recent issues by the City

of Paris and Development Bank of Japan.

Green bond indices

Green bond indices identify specific bonds as

green via a stated methodology, and allow

investors to invest in a portfolio of green

bonds to diversify risks. To this extent, the

green bond index providers also effectively

act as institutions of certification. At present,

global green bond indices are compiled by

Bank of America Merrill Lynch, Barclays

MSCI, Standard & Poor's and Solactive.6

Each has its own methodology for choosing

the components of the index. While

advertising consistency with the Green Bond

Principles, each index also specifies

additional factors such as size and liquidity,

as well as the specific industry sectors for

which the proceeds are used. Index providers

can arguably serve ongoing monitoring

function, since they can discard entities from

an index as well as include them. However,

since many inclusion criteria for green bond

indices are much less concrete than those for

conventional bonds (such as minimum levels

of market liquidity and credit ratings), it

remains to be seen whether the index

providers can monitor such environmental

criteria on a continuous basis.

Barriers to scaling up of bonds

The speed at which green bond markets

develop and mature hinges on many

variables, including policy and regulatory

factors (e.g. policies that create the demand

for green projects) and market conditions

(e.g. interest rate developments and the credit

cycle). These conditions will differ across the

jurisdictions in which green bonds have been

issued; the sub-national, national and

regional markets that add up to an investor

base of green bond demand with a global

outlook.

Additionally, the evolving green bond market

faces a range of specific challenges and

barriers to its further evolution and growth.

Policy makers have a suite of options

available to overcome these barriers and help

to grow a sustainable green bond market with

integrity. The OECD modelling scenarios

suggest that if there is a concerted push by

policy makers and market participants to

develop it, the green bond market can scale

up rapidly to raise and finance the debt capital

that will be needed for a transition to a low-

carbon economy. Barriers may differ in

importance across jurisdictions, with

challenges particular to developing and

emerging economies, where more

fundamental and general actions are needed

by governments. For instance, the lack of a

domestic debt capital market and other

enabling conditions for issuance would need

to be addressed in line with longer-term

financial market development priorities.

While this presents a barrier to green bond

market growth it also represents an

opportunity for synergy if addressed in

tandem (CBI/UNEP Inquiry, 2015). A

common list of barriers to green bond market

growth may include:

• Lack of a pipeline of infrastructure

projects corresponding to a long-term

governmental commitment to low-

carbon development;

• Lack of commonly accepted green

definitions;

• Investors with limited capacity to

analyse green investments;

• Scale and mismatch among projects,

bonds and institutional investors;

• A lack of suitable aggregation

mechanisms; non standardised

projects and cash flow instability;

• Low credit ratings for potential green

bond issuers and green projects,

especially in emerging economies.

Conclusion

Green bond principles and standards are an

important step towards promoting green

finance. Since the introduction of the Green

Bond Principles by the ICMA in January

2014, the issuance of labelled green bonds

has increased rapidly, with a growing number

of issuers from the private sector and EMEs.

Several green bond indices have also been

introduced, allowing a broader group of

investors to take a diversified position in

green bonds. The evidence suggests that

investors place value on the green label at

issuance, even though the post-issuance

financial performance of green bonds is

comparable with that of conventional bonds.

However, for this still relatively small market

to grow more, several further developments

need to take place. First, various existing

definitions and labels for green bonds pose a

challenge for investors, who may benefit

from more consistent standards. The ongoing

work to improve the consistency of standards

in China, and the European Union is

promising in this regard. At the same time,

more ongoing monitoring by “second

opinion” providers, rating agencies or other

forms of continuous third-party verification

may be needed. Even if asset managers utilize

the green label simply to signal to ultimate

investors their fulfillment of green mandates,

the information value of those labels can

depreciate over time as technology evolves or

policies of the issuer change. A second

informational aspect that is not covered by

current green certification schemes is the

environmentally related financial risks of

green bonds. While the management of

environmental risks extend far beyond green

bonds, it is important to avoid the

misperception that green bonds are insulated

from such risks. In fact, among all rated

bonds, those with a green label are more

likely to be in sectors that are exposed to such

risks. Green bond standards could be

enhanced to highlight the degree of financial

risks stemming from environmental factors to

further encourage investors to manage these

risks effectively.

Limitations of the Study

• This study is only limited on thematic

bonds and its types and not to any other

types of bonds.

• This study cannot be generalized.

References

• Professor Michael Mainelli & Simon

Mills, Business & Sustainable

Development Commission, Financial

Innovations & Sustainable

Development, UK, January 2018.

• Steve Rocco, Understanding the

growing thematic bond market,

newsletter, Impact Insights#15 –

London March 2018

• Bloomberg Philosophies, OECD,

Better policies for better lives.

• www//home.barclays/investor-

relations/reports/

• www.mspartners.org/understanding-

the-growing-thematic-bond-market/

https://home.barclays/investor-relations/reports-and-events/

https://home.barclays/investor-relations/reports-and-events/

http://www.mspartners.org/understanding-the-growing-thematic-bond-market/

http://www.mspartners.org/understanding-the-growing-thematic-bond-market/

Customer Perception of Brand Management of Reliance in Telecommunications, Retail

and Electronics.

Steffi V Dsouza,

Mount Carmel College Autonomous.

Vanessa Akanksha,

Mount Carmel College Autonomous.

Abstract

A brand represents who the company is, their beliefs and expected perception from the

audience. It’s absolutely important to have an alignment between the core competencies

of your product and the branding strategy. The branding acts as an ambassador for the

product and unless true to the product, will not work. Overall, brand management has

evolved from “product-centric” to “consumer-centric” in the 21st century.

The practise of Brand Management is a major component of marketing and plays a major

role in purchasing power of consumers. It helps to create differentiation between

competitive offerings. Brand management is the science of crafting and sustaining a

brand and should be managed as valuable long-term corporate assets. In today’s world,

a brand is everything.

This study makes an attempt to analyze the perception of the brand of Reliance among

customers in 3 major sectors of telecommunications, retail and electronics. The expertise

of Reliance lies in their innovation which makes them emerge as a trendsetter. Reliance

has joined hands with many companies and evolved as one of the valuable brands of

India. They remain one of India's largest exporters and contributes greatly towards the

economy Major focus is to add value to stakeholder’s life and diversify among various

sectors.

Keywords: Brand, Brand Management, purchasing power, differentiation, competitive

offerings, sustaining, customer’s preference

Introduction

Brand must be given support in order to

sustain in the market for a longer period of

time. Through branding, it makes the

customer get committed to the business. A

strong brand basically differentiates the

product from the competitors and creates a

brand affinity towards the product. The

success of a particular brand is not achieved

over night, it takes many years to establish a

brand but when it occurs, it has to be

managed and maintained through innovation

and creativity.

A brand does not only need to be tied to one

product, but it can cover many products and

services. A brand that is managed well should

always be flexible and open to adjustments.

Developing a good relationship with the

target market is essential for brand

management. Brand management means

having a full-fledged knowledge of the term

“brand”. It engages in structuring a promise,

establishing it and finally enabling it. It is a

concept adopted by companies to create an

emotional connect between products and the

customers. Brand management is an art of

creating and sustaining the brand. Branding is

basically combining various marketing mix

medium into a whole in order to provide an

identity to the product.

Brand Management is the process of

identifying the core value of a particular

brand and reflecting it among targeted

consumers. The process of brand

management starts from identifying and

establishing brand positioning, plan and

implement brand marketing, measure and

interpret brand and grow and sustain brand

equity. Brand managers must research

consumer markets and monitoring market

trends, analyse the potential profitability,

exploring new ways to communicate with

customers and monitor consumer reactions

through focus groups and market research.

Tangible elements of brand management

include the product, look, price and

packaging. Intangible elements are the

experience that consumer takes away from

the brand and also relationship that they have

with the brand. A brand manager oversees all

of these things. Effective brand management

requires taking a long-term view of

marketing decisions. Any action that a firm

takes as part of its marketing has the potential

to change consumer knowledge about the

brand. It will also have an indirect effect on

the success of future.

Entrepreneurs explain that a brand is a

promise to the customer. The stronger the

brand it is most likely to be recommended by

the customer. The important characteristics

of brand management is excellent delivery of

desired benefits, maintaining relevance,

perception to match customers expectations,

proper positioning in minds of consumers,

right balance between change and continuity

and coordination of marketing activities.

Modern brands do multi brand processes and

business. Their portfolio will have a range of

products and services.

Brands are focused around a product by

product managers. While product managers

focus on design and features of a product,

brand managers focus on maintainence and

perception of a particular brand. Their work

is strategic involving high-level curation of

company’s image and practical steps to

maintain that brand. They aim to enhance,

maintain and inspire interest in their brand

with a strong emphasis on marketing and how

overall organization is viewed. They inspire

feelings, reaction and loyalty. A value

proposition is a business or marketing

statement that summarises why a consumer

should buy a product/use a service.

Brand managers are responsible for product

line depth width and extensions and they

prevent brand obsolescence and constantly

come up with new products to keep the brand

on top of the mind in the market. They create

a mindspace for the product. He aligns his

brand strategy with organisational goal and

builds awareness and consensus on the

strategy formulated.

This research paper studies Brand

Management and we have selected one of the

most valuable brands of India “Reliance” and

it will cover the the three main sectors namely

telecommunication, retail and electronics.

Reliance Trends: is a fashion and

accessories brand of Reliance Retail. It was

set up in the year 2008. It has a good social

media presence on various platforms. They

have a store locator app, videos on latest

trends and what celebrities are flaunting.

They focus on the product quality that attracts

and influences the customers. The staff work

on to reconnect with their customers through

various techniques such as discounts,

organise competitions, give style tips and

vouchers. They also have various touch point

such as cash counter, trial rooms, customer

service desk & entry.

Reliance Jio: it was launched on 27th

December, 2015. It is an LTE mobile

network operator in India. They initially

captured the market through free products

and service and provide affordable services to

all. Jio is earning a rich dividend by making

data the centre of attention. Jio brought a

great impact on the telecommunications

sector and is a great competitor to other

brands. India has a fast growing digital

audience and Reliance envisages creation of

Digital Revolution in India.

Reliance Digital: They collaborate with

various other brands in order to give the best

gadgets to their customers through their

services. They mainly focus on four sectors

such as enhancement, productivity,

entertainment and home appliances. Reliance

offers resQ. ResQ is a service tool by

Reliance Digital. Digital xpress and Mini

Stores provide after sale service to customers.

resQ is India’s first multi brand, multi

product and location service which provides

service from 10am to 10pm 365 days of the

year.

Literature Review

Several studies focus on the huge potential of

Brand Management in India and customer’s

preferences towards the brand of Reliance.

Few studies like the study by Francesca Dall

’Olmo Riley focuses on Brand and Brand

Management. It also describes the various

elements in brand management, issues and

challenges faced by brand managers and

brand equity.

De Chernatony and Mcdonald (2003)

highlights ‘brand’ as an added value to the

product and the success of the brand depends

on customer’s perceptions of the brand

matching their needs better than the other

brands. It then states that being able to sustain

customer perceptions of a brand’s differential

value is the key to successful brand

management.

Biradar (2018) (Customer satisfaction

towards Reliance Digital products)

highlights the understanding of customer

satisfaction towards Reliance Digital and its

products. Jangde and Sharma (2018)

evaluate the factors that influence customer’s

perception towards Reliance Retail. Kalyani

(2016) (Empirical study on customer

perception on Reliance JIO) states the

perception of customers about the Reliance

Jio effect.

Sousa and Tavares (2016) (Brand

management challenges in the context of

recession) pointed out through an extensive

research study about the challenges faced by

Indian companies in managing their brands

during recession. Contribution has been made

to identify and analyse the skills that brand

managers need to strengthen their brand in

uncertainity. Bergstrom, Landgren and

Muntzing (2010) (Successful brand

management in SME’s) investigates how

branding is exercised in SME’s and how it

can build and strengthen its brand.

Statement of Problem

Brand management is critical to differentiate

a product from its competitors by establishing

a unique selling proposition (USP). It boosts

the value of the product and builds devoted

customers.

Reliance has established a brand for itself by

innovation and diversification among various

sectors. It has emerged as one of the valuable

brands in India and they have spread their

operations over a number of years. They have

also contributed to CSR of the country.

This study makes an attempt to analyse the

customer’s perception of the Reliance brand

in telecommunications, retail and electronics

and aims at filling the research gap of many

authors as to why brand management is

important in success of a company.


1. This study aims at determining the factors

that influence customer’s perception

towards

Reliance Digital, Reliance Trends

and Reliance Jio.

2. To examine the reasons of successful

Brand Management of Reliance.

3. To determine the challenges of managing

brands in India.

4. To propose various strategies for

improved brand management of

Reliance.

Challenges for Brand Management

1) Consistency

The message should be kept

consistent across all platforms. A

brand must appear as a complete

entity that offers customers positive

experience across multiple devices.

2) Clutter and Connectivity

Challenge is to stand out among the crowd.

The company should carve a niche for

their product. The brand should be

memorable.

3) View your brand as asset

Continued pressure on short term

financial results and media fragmentation

will force companies to ignore the goal of

asset creation and focus on tactics and

performance.

4) Have a persuasive vision

The brand vision should be differentiated

from competitors and inspire employees.

It should be possible to implement and

operate. Surgical vision is usually

multidimensional and can be adapted in

various situations. The company must use

concepts of brand identity, organisational

value, higher goals and overall functional

benefits.

5) Create a new subcategory

With a few expectations, the only way to

grow is to develop innovations that define

new subcategories and barriers to keep

competitors on the side-lines. This

requires innovations that can drive

subcategory awareness.

6) Integrated Marketing

Communications achieved (IMC)

IMC needs to choose different methods

that are more complex and difficult than

advertising, sponsorship and social

networks, etc. These methods should be

more competitive because the media

scenes and options are too complex and

dynamic rather than cooperative and

communication.

7) Internal brand building

Internal brand building is difficult for

people to achieve. Successful integrated

marketing communications or innovative

marketing should not be done without

knowing the vision. Viewing a brand

without a higher goal has no purpose.

8) Establish a digital strategy

The strategy for building a digital arena

is complex, dynamic, and requires a

different mindset. The reality is that the

audience here is under control. New

ways of dealing with new marketing

opportunities, creative initiatives and

other marketing conditions are needed.

Develop a program around fun places

with renowned partners.

9) Developing a brand-portfolio strategy

that yields synergy and clarity.

Brands need a clearly defined role and

vision to support this role. Strategic

brands must identify and provide

resources, as well as create and manage

brand differentiators and activators.

10) Grow with brand assets

A brand portfolio is designed to drive

growth by offering new offers,

expanding brands vertically or extending

brands to different classes of products.

The goal is to use the brand in a new

context where it creates and adds value

and enhances itself.

Success of Reliance

Reliance wouldn’t have emerged without the

business icon Mr. Dhirubhai Ambani who

founded the company in the year 1960.

Reliance Industry was the first private

company to be rated by the international

credit agencies.

Reliance as a brand caters to the needs of

diverse range of customer segments with its

wide range of products and service ranging

from telecom to petrol stations. Reliance uses

various variables such as profession, age,

gender, income level, behaviour, region etc to

produce their products. They have more than

85 subsidiaries and continue maintaining

their market share in India which is

considered as the greatest strength of

Reliance. They also have an extensive

business network in 5 continents as well as in

India. Considering the domestic market in

India, there are hardly any competitors to

compete with such a successful industry.

Ability to influence the government decisions

has been an important facet of Reliance

industries.

Mission: “to create value to all stakeholders.

They grow through innovation and they lead

in good governance practises. They use

sustainability to drive product development

and enhance operational efficiencies”

Vision: Reliance adds value to the nation by

improving the quality of life in the socio-

economic sphere and help India to become a

world leader in domains where they operate.

Reliance is one of the largest companies in

India and has a strong “brand” that helps to

create a reliable image to its customers. They

are recognised through various awards,

excellent financial conditions and high

profitability. Participation in CSR activities

provides a positive brand image for various

stake holders and in “brand loyalty”.

Reliance seeks to attract consumers through a

variety of rehabilitation programmes and

campaigns such as education for all (EFA)

which is a social initiative of the Reliance

foundation that has helped to educate more

than 70,000 children.


Primary data has been collected from the

discussion of the focus group interview

conducted among M.Com students of Mount

Carmel College. It focused on their

perception towards Reliance as a brand. This

helped to get an insight into the mindset of

young adults towards the brand.

Secondary data has been acquired from

internet sources, websites, journals,

conference papers and published reports to

achieve the objectives of the study.

The study is a Descriptive research which

describes the brand preferences towards

Reliance and its various sectors. Descriptive

research describes the characteristics of the

population and it reports what has already

taken place. There is no control over the

variable like the other types of researches as

it describes what, when, why and how of the

features of the population.

Analysis of this data and interpretation has

helped in the development of findings and

conclusion.

Conclusion

This study starts with the introduction to

brand management in India. It also opens

with some information about Reliance

Trends, Digital and Jio and how management

of brand is taking place in these sectors. This

research is based on the existing literature

and research papers on management of

brands by various companies and the brand of

Reliance. It mentions the reasons for success

of Reliance as a brand. While brand

management of Reliance has been successful

in the past in building a value for the

company due to their competitive

differentiation in sustaining their brand, there

is a long way to go for utilising all the

strategies to the fullest potential. This is

because of the challenges that are presented

by the ever changing dynamics of customers

and their shift of brand loyalty. All these

difficulties lead to complications in

managing the value of the brand by the

managers. Therefore, from literature,

success, challenges in brand management and

from the discussion carried out in this paper

regarding the importance of brand

management in improving the brand value of

Reliance, it is recommended that brand

management plays a huge role in the

consumer purchases. Reliance has been able

to manage its brand because of

diversification, innovation and CSR

activities. Though Reliance has managed its

brand pretty well it can still tap the untapped

potential of brand management. Additionally,

the consumers must be made aware of brand

management and the benefits arising out of

brand loyalty.

Implications for Future Research

The following is a list of implications for the

future research:

• A survey in the consumer markets can

be conducted to comprehend how

people in these areas consider brands

in the purchasing of a commodity and

role played by brand loyalty in the

value of a company.

• Feedbacks can be collected from

customers regarding as to how

companies must manage their brands

• Extensive social media marketing can

help the Reliance brand managers

build and manage their brand

efficiently.

• Brand management is customer

driven and not product driven, and

thus an identification of the customer

needs and wants has to be undertaken.

• Reliance trends needs to innovate in

designing value proposition.

They spend a lot of money on

marketing and promotional activities

for driving customers into the store

but not converting them to final

customers.

• The retail sector is growing rapidly

due to the increase in foreign direct

investment (FDI) and they can take

advantage of this.

• Customers expect consistency in the

plans of Jio which has to be

developed by the company in order to

manage their brand in a better way.

References

Grant and Kenton, (2019). Brand Mangement

Retrieved from

https://www.investopedia.com/terms/b/bran

d-management.asp

Biradar, (2018). Customer satisfaction

towards Reliance Digital products at Bidar.

International Journal for Scientific Research

and Development, Vol. 6, Issue 3,

1262-1264.

Jangde and Sharma, (2018). Evaluation of

customer experience at Reliance Retail.

International Journal of Research, Vol. 7,

Issue 7, 537-549.

Mazumdar, (2017). From ‘outsider’ to

‘insider’: The case of Reliance. South Asia

Multidisciplinary Academic Journal

Article, “An Empirical study on Reliance

Jio” (2016)

Kalyani, (2016). An Empirical study on

Customer perception on Jio.

Journal of Management Engineering and

Information Technology. Vol. 3, Issue 5,

18-22.

Souse and Tavares, (2016). Brand

Management Challenges in the Context of

Recession. European Journal of Applied

Business Management. Vol. 2, Issue 1,

1-11.

Bergstrom, Landgren and Muntzing, (2010).

Brand Management, A Qualitative Study on

Branding in SME’s

Journal of Brand Management, Volume 26,

Issue 165

Juneja, Brand management meaning and

important concepts

Jangde, Volume 7, Issue vii, 2008, 539 and

540.

Rural Marketing Challenges And Strategies

Sarah N Augustine

[[email protected]]

Pearl Martina [[email protected]]

I M.Com General

Mount Carmel College, Autonomous

Abstract

Over the past few years, Rural Markets have been growing steadily and is now even bigger

than the urban markets. India has about 6,50,000 villages, making up for 70% of population.

They contribute to half of the country’s GDP, though majority of people who live in poverty

are from the rural areas, marketing firms are still struggling to turn them into their customer.

Therefore the overall growth of the economy has resulted in substantial increase in the

purchasing power of the rural communities.

Rural markets in India can be categorized into consumer goods which comprises of durable

and non-durable goods and goods for agricultural purposes. The Indian rural markets consist

of a special uniqueness which has always been difficult to predict. As the preferences of the

rural markets are changing, investors are keen on investing in the rural markets. Though there

is possible and considerable growth options in the rural markets, there are some challenges

too which causes hurdles in tapping the untapped markets. The main aim of the study is to

take a step forward in exploring various strategies which can be adopted in rural markets along

with current scenario, highlighting the key challenges relating to rural marketing.

Keywords: rural marketing, marketing, challenges in rural marketing, rural marketing

strategies

Introduction

Customer is the KING; today marketing has

evolved from basic pamphlets to digital.

Marketing needs to give the consumer

exhaustive information about the product, in

certain products it is mandatory to provide

the directions to use, lifespan of the product

and provide the contents of the product.

Advertisements are basically for targeting

kids and women in particular, since they are

the decision makers of the family.

Marketing’s major role is to create an

everlasting impression among the consumers.

The urban market needs to keep up to the

latest trends to survive.

Marketing of products started way back from

late 1960s which was unorganized and

mainly controlled by the Maharajas of the

various kingdoms. The first marketing started

during the barter system where the goods

were bought and sold from one kingdom to

the other. Due to the green revolution which

took place during the 1960-1990 involved the

improvement in the farming industries due to

scientific technologies .during this phase

many of the poor villages became prosperous

business centers. Many industries like khadi

and villages industries had bloomed. After

1990’s India’s industrial sector had gained

strength and many improvements had come

in place. the contribution of GDP had

increased substantially. Many government

policies and development programs where

initiated. The definition of rural marketing

was differentiated from agricultural

marketing.

Now With digitalization and logistics in

place, the markets have expanded from urban

to rural areas which are a vast and an

untapped market, the size of the untapped

market is 40% higher than the urban market.

With the development programmers in the

field of electrification, improved

infrastructure, connectivity of roads,

communication systems, agricultural related

activities, health and education facilities, this

has improved the lifestyle of the rural

population.


The main objective is to study the present

scenario in rural marketing, the various

challenges faced by the marketers and the

strategies which can be used to overcome the

challenges faced.


The present study is descriptive in nature.

The data used for this study is secondary data

which has been collected from various

websites and journals in order to achieve the

objectives of the study The discussion that

follows is also the perception of students

from the Marketing specialization from

Mount Carmel College, Autonomous.


Pawan Kumar and Noah Dange ( 2013) in

their study have covered the evolution of

rural marketing which started from the late

1960’s where the maharajas had dominance

and the development after 1990’s which

states the difference of agricultural marketing

from rural marketing . The objective of this

paper was to cover the various issues and

challenges the rural marketers faced, which

stays as a challenge till date in few areas

Nafeesa Fareda and Swathi (2016) have

also studied the various challenges and

startergies which have been a part of rural

marketing. The study also states the present

scenario and the needs for rural marketing

which is becoming an important part of

marketing as three fourth of the nation’s

income come from the rural part of the world.

Benefits of Expanding into Rural Areas

Increase in population automatically

increases demand; the rural population is

40% higher than the urban population.

Profitable farming, the Governments

developmental programme, migration from

rural to urban and foreign countries have

increased the financial and the purchasing

power of the people, and migration from

urban to rural adds to demand. Increases

employment opportunities, the changing

lifestyle in rural population has increased the

basic necessities, now-a-days every

household owns a two wheeler, television &

mobile thus giving opportunity for branded

companies.

Challenges in Rural Market

Today half of the nation’s income is

generated from the rural markets. There is no

doubt that rural market offers great

opportunities and attraction for investors to

invest in order to have a profitable return , but

it is not easy as it poses, it is not simple and

easy to enter and succeed in the rural market

. They pose a variety of challenges and the

marketers have to work very hard to

overcome these challenges, few of the

challenges faced by the marketers are listed

below:

1. Connectivity of Villages :-

The villages in India are situated in

remote location making it difficult for

them to get access to better goods and

services .most of the villages are not

connected properly poor road

facilities , non –availability of railway

services etc. make it extremely

difficult for the marketers to get in

touch with them. Few villages in

Rajasthan and Gujarat still use camel

carts to commute from one village to

the other

2. Ware Housing Problems :-

Warehousing is an important factor

the manufactures have to keep in

mind as there is a time gap between

the production and consumption of

commodities, facilities to store the

goods have to be made in order to

protect them and supply them at the

right time when they are needed

.suitable places for setting up these

warehouses in villages are not

available and the maintenance cost of

these warehouses are higher, due to

this goods cannot be stocked in proper

condition. .

3. Logistics :-

Transportation of goods plays an

important role as goods have to be

transported from the urban production

units to remote villages. In India the

transportation facilities are quite

poor. Nearly half of the villages

situated in Indian are not connected

by well-constructed roads, making it

difficult for marketers to get access to

these rural markets.

4. Banking / Usage of Payment

Gateways :-

Most of the villages are not provided

with the basic banking facilities they

need in order to carry on their day to

day activities as it is done in the urban

places. People in the rural areas are

not aware or not educated with the

different payment methods available

.like pat, phone pay, Google pay etc.,

they prefer to have cash transactions

as they hold cash in hand instead of

depositing it. The poor connectivity

of villages in terms of internet

facilities is also a concern in this era

of digitalization.

5. Designing of Products that Suits the

Rural Lifestyle :-

The lifestyle of village people are

completely different from the life

style of urban people., the choice of

brands the urban customer enjoy is

not available for a rural customer, a

urban customer are provide with a

variety of options and designs too

choose from, whereas the rural

customer has a traditional set of

design and taste according to which

they choose their products.

6. Understanding and usage of

Products or Services :-

There are certain products in the

market which is a basic need for an

urban customer whereas a luxury

product for a rural customer. The

luxury products seldom sell in the

rural sector, making it difficult for the

marketers to sell these products in the

rural areas.

7. Low Levels Of Literacy :-

The levels of literacy in the rural area

compared to the urban is very low,

due to this communication is

difficult for the marketer’s , print

media becomes ineffective, since

Its reach is very poor, so low levels

of literacy becomes a challenge for

them to market their products.

8. High Distribution Cost :-

As the roads connecting to the

remote villages are not constructed

well and rail services are not in place

, the lack of warehousing facilities

and an improper supply chain , the

manufactures incur high levels of

costs in order to market their

products in the rural areas , which in

turn will result in the increase in the

price of the product.

9. Customs and Traditions

Rural areas customer are very much

tradition oriented they follow the

customs very rigidly, in order to cater

to these category of people the

marketer’s have to design products

accordingly. This is not possible for

them as they have to cater to a large

number of people

10. Language Barriers :-

As we all know India is home to a

variety of people with different

religion , culture and languages , it

becomes a barrier for effective

communication . The languages vary

from state to state, region to region

and district to district, since messages

has to delivered in the local language,

it is difficult for the marketing team to

design promotional activities and

campaigns in different languages.

11. Local and Cheaper Products

Which are more Desirable :-

Local products play a major role in

the rural areas as they are not aware

of the brand, they are satisfied with

the product what the ancestors were

using and they make it mandatory to

use only those products, and they do

not believe in brand. Moreover a local

product is much lower in cost wise.

12. Seasonal Demand :-

Seasonal demand is a major

constraints .Agricultural situations

play a major role in the demand for

commodities as it is their main source

of income . The change in the weather

conditions affects their income from

agriculture resulting in the variation

in the buying capacity of the

consumer which affects the sales of

the manufactures making it a big

challenge for the manufactures to

keep up with the varying demands.

13. Under Developed Markets

Few remote villages in India are still

under developed .thought technology

has advanced in this era , it has not

contributed to the development in

these remote villages .

14. Media

Communication plays a vital role in

influencing the crowd especially

through television. Due to the under

developed situations in few of the

rural area, the lack of electricity and

television sets stand as a barrier.

Majority of the people are denied of

the various benefits.

Marketing Strategies

In order to overcome the various challenges

which the rural markets pose, the companies

keen in investing In these markets have to

come up with innovative strategies to flourish

. some of the strategies which can be adopted

by them are as follows:

1. Creative Team which can

Communicate in Vernacular

Languages

In a country of a billion people and a

million languages, no one language

has the capacity to bring us all

together. The British tried it with

English, but till date, the number of

fluent English speakers in India

reflects only a small percentage of our

populous. Given our size and

diversity, brands, too, need to find a

way to get our attention. Whether

you’re an Indian brand or an

international one, planting your roots

in Indian soil won’t work if your

digital-first marketing strategy uses

only English. You need to speak the

language of the locals.

If you are a company from India, then

multilingual marketing will be the

difference between reaching a limited

audience base versus reaching your

intended target audience. After all,

statistics show that Indian language

Internet users will be more than 2.5

times that of English users by 2021.

Multilingual or multicultural

marketing will help you take into

account cultural values and nuances

of vernacular languages. This strategy

can give your brand the benefit of

building trust with potential

customers who may not know your

brand or consider it to be international

brand.

You need to localise your content,

website and all brand to reflect

cultural nuances, as everything that

works in one language won’t have the

same effect in another.

The secret to building an effective

multilingual marketing strategy is to

ensure that every step of your

consumer’s journey is in a language

they are comfortable with.

https://www.socialbeat.in/blog/7-reasons-why-your-brand-should-have-a-digital-first-marketing-strategy/

https://www.socialbeat.in/blog/7-reasons-why-your-brand-should-have-a-digital-first-marketing-strategy/

2. Cater to Hetrogeneous Market

India being a diverse nation, it is a home to

a variety of people from various cultures

which creates a heterogeneous market, this

types of a market create opportunities for

manufacturer to start new lines of products

or to start a totally different types of

product to cater to the different need of the

people therefore , A distinctive and

different customer needs can be identified

and which can be used as a basis for market

segmentation

3. Digital Marketing to Engage the

Younger Generation

Digital marketing is advertisement delivered

through digital channels such as social media,

mobile applications, email, web applications,

search engines, website or any new digital

channels. The offline and online world are

colliding, traditional electronic equipment

such as refrigerator, micro oven, will be

connected to digital. Google and face book

generate more revenue than any traditional

media company, because the no of eye balls

they connect is the highest, that is why digital

marketing matters, it is where the attention is.

Digital marketing is responsible for

developing, implementing and managing

marketing campaigns that promote a

company and its products and services, he or

she plays a major role in enhancing brand

awareness within the digital space as well as

driving website traffic and acquiring leads.

4. Cultural Marketing According to

Festivals

Cultural marketing is a kind of marketing

where a message is promoted to a certain

group of potential customers who belong to

a particular culture or demographic. Culture refers to the influence of religious,

family, educational, and social systems on

people, how they live their lives, and the

choices they make. Organizations that

intend to market products in different

countries must be sensitive to the cultural

factors at work in their target markets.

So, culture holds a distinct and important

value in marketing. Cultural and religious

values are important because going very far

from them is not possible for consumers.

Brands are now establishing new

connections with local markets by utilizing

culture as the tool of connection.

Cultures influence each other by offering

knowledge, belief, art, customs, et cetera

that are compatible with their own values

and ways that they perceive the world. ...

Cell phones are adopted in most cultures

because they full-fill perceived needs.

5. Marketing Cycle

Marketing progresses through a series of

steps to get to a sale or repeat sale. The first

phase of marketing is getting Attention.

People need to know that you exist and what

it is that you do or offer before they can buy.

The second phase is positioning; before a

prospect will part with their hard earned

money, they need to get to know and trust

you and learn the value of what you provide.

The final phase of the marketing cycle is

Selling, getting first time and repeat sales.

6. Artificial Intelligence

Artificial intelligence is an incredible

technology that can work wonders for your

brand. Using AI for digital marketing

strategies will help brands deliver improved

customer experience and do more effective

marketing. It will also ensure faster

problem-solving for consumers

Artificial intelligence marketing is a

method of leveraging customer data, With

AI solutions, marketers know exactly what

consumers are thinking, saying, and feeling

about the brand in real time. Similarly,

marketers can truly understand what

customers are feeling, and then quickly

modify messaging or branding for

maximum effectiveness. Artificial

intelligence plays a vital role in the life of

many people. As the nation is growing

towards digitalization and the drastic

improvement in technology, many of the

marketers are suggested to use this

technological development in terms of

artificial intelligence in order to increase

their sales in the rural areas, and which

would be an interesting task for them to

implement.

Conclusion

India offers a vast untapped market creating

a wide range of opportunities for investors to

invest in for their growth and development.

However the companies have to face the

challenges in tackling the rural markets, but

the marketers are unable to tap these markets

due the lack of infrastructure facilities, under

developed markets and high rates of illiteracy

in terms of identification of brand

differences. The lack of proper

communication through media such as

television and social media also stands a

barrier in this era where technology has made

a big impact in the lives of many.

Like how HUL, BPCL, ITC had implemented

various strategies to improve their sales in the

rural markets, keeping in mind the income

status of the rural people. Many companies

have to use similar/ innovative strategies to

tap the rural markets.

Looking at the challenges which can be

overcome and the strategies which can be

adopted in rural marketing, the future is very

promising for companies who are ready to

accept the challenges and make use of them

to their best advantage. They can successfully

serve villages spread across the entire nation.

References:

Nafeesa Fareed, S (2016).

Recent trends in Rural Marketing.

International Journal of Latest Trends in

Engineering and Technology (Special Issue

SACAIM), 474-478.

Nasreen, V. N. (2017).

Development of Rural Marketing in India.

National Conference on Marketing and

Sustainable Development,, (pp.107-113).

Pawan Kumar, N.D. (2013).

Rural Marketing in India: Chanllenges and

Opportunities. International Journal of

Management and Social Sciences Research

(IJMSSR), Volume 2, No.8, 93-100.

A study on Issues and Challenges of Women Empowerment.

Ms. Ayesha Soubia

Research Student,

Al-Ameen Institute of Management Studies

Abstract

This paper attempts to research the status of women empowerment and highlights the

problems, and challenges of women empowerment. Today the empowerment of women has

become one among the foremost important concerns of 21st century. But practically women

empowerment remains an illusion of reality. We observe in our day-to-day life how women

become victimized by various social evils. Women Empowerment is the vital instrument to

expand women’s ability to possess resources and to form strategic life choices.

Empowerment of women is actually the method of uplifting of economic, social,

and political status of girls, the traditionally underprivileged ones, within society. It's the

method of guarding them against all sorts of violence. The study reveals that women of India

are relatively dis empowered and that they enjoy somewhat inferiority than that of men in

spite of many efforts undertaken by Government. It's found that acceptance of unequal

gender norms by the women are still prevailing within society.

Keywords: Women Empowerment, Issues, Challenges, Government, Society

Introduction

Women’s role in the economic development,

in most countries of the world, can't be

undermined. Although women constitute

almost half the total population of the planet,

their social, economic, and political status is

lower than that of men, and that they are

subjected to the tyranny and oppression of a

specific order for hundreds of years and de

facto even today. They are customarily

expected to confine themselves to household

environs and play a passive role as daughters,

daughters-in-law, wives, and mothers. They

are typically considered as weaker than men.

This attitude has constrained their mobility

and consequently lack of opportunities for the

development of their personalities.

Women belonging to underprivileged and

poorer sections, irrespective of their social

strata or region, are by themselves, in no

position to unravel their problems. They're

subject to discrimination and exploitation and

occupy an inferiority in domestic, political,

and economic scenario. Women, particularly,

in rural areas have proportionately the least

possessions, skills, education, social station,

leadership qualities and capabilities for

mobilization, which determines the degree of

deciding and power, and as a result, their

dependence on men increases. They need

been confined to the four walls of the

household, over burdened with

domestic works and controlled of their

mobility and private freedoms by the lads of

the household since time out of

mind. In order that they have lagged behind

within the fields of education, skill

development, employment and as a result,

their work is greatly undervalued in

economic terms. Women’s lack of

empowerment is believed to be a crucial

factor for this example and hence they require

social and economic protection. Therefore,

they have to be empowered economically,

socially and politically.

Women empowerment may be a critical

determinant of economic well-being, social

status and political power. Micro finance

aims at providing the urban and rural poor,

especially women, with savings, credit and

insurance and aims to enhance household

income security and

successively endeavors to empower the

ladies.

Empowered women who reach

unconventional positions make choices not

sacrifices, Empowerment of women is

essentially the tactic of uplifting of

economic, social, and political status of

women, the traditionally underprivileged

ones, within society. It's the method of

guarding them against all sorts of violence.

Everyone has the proper to life, liberty and

security of an individual. The status of

women in Republic of India has been

subjected to many good changes

over past few millennia. From equal standing

of men in the past, through the low points of

the medieval amount, through the promotion

of equal rights by several reformers, the

history of women in India has been eventful.

In modern India, women have held high

offices in India including that of the

president, prime minister, speaker

of lok Sabha and the leader of opposition.

Women's rights are secured below the

constitution of Republic of India

principally — equality, dignity and freedom

from discrimination.


H. Subrahmanyam (2011) compares

women education in India at present and

Past. Author highlighted that there features

a good progress in overall enrolment of girl

students in schools. The term empower

means to offer lawful power or authority to

act. it's the method of acquiring some

activities of women .

M. Bhavani Sankara Rao (2011) has

highlighted that health of women members

of SHG have certainly

taken address better. It clearly shows that

heath of women members discuss among

themselves about health related problems

of other members and their children and

make them conscious of various

Government provisions specially meant for

them.

Doepke M. Tertilt M. (2011) Does Female

Empowerment Promote Economic

Development? This study is an empirical

analysis suggesting that cash within

the hands of mothers benefits children.

This study developed a series of non

cooperative family bargaining models to

know what quite frictions can produce to

the observed empirical relationship.

Duflo E. (2011) Women’s Empowerment

and Economic Development, National

Bureau of Economic Research Cambridge

The study argues that the inter

relationships of the Empowerment and

Development are probably too weak to

be independent which continuous policy

commitment to equally for its own

sake could also be needed

to cause equality between men and

women .

Sethuraman K. (2008) The Role of

Women’s Empowerment and violence in

child Growth and Under nutrition during

a Tribal and Rural Community in South

India. This research paper explores the

connection between Women’s

Empowerment and violence , maternal

nutritional status and therefore

the nutritional status and growth over six

months in children aged 6 to 24

months during a rural and tribal

community. This longitudinal

observational study undertaken in rural

Karnataka. India included tribal and rural

subjects.

Venkata Ravi and Venkatraman (2005)

focused on the consequences of SHG on

women participation and exercising control

over deciding both in family matters and in

group activities.


• To study on the challenges and issues

faced by women

• To know the reasons for women

empowerment

• To know the schemes introduced by

Government for women

empowerment


This paper is basically descriptive and

analytical in nature. In this paper an attempt

has been taken to analyze the empowerment

of in India. The data used in it is purely from

secondary sources according to the need of

this study.

Analysis

India stands far below in gender related

indices. There are historical reasons for the

lower status of women in India especially in

rural areas. Patriarchal symbolism, ritualism,

dualism, marital traditions and caste systems

are some of the historical factors that

prescribe the status of Indian women. Some

of these traditions are thousands years old

and their impacts have become almost

irreversible. By socialization both men and

women develop gendered self-image since

childhood and carry these stereotypes till

their death. They bring up with them such a

mental set which do not permit them either to

perceive the reality properly or even to think

otherwise. Gender equality has become

unthinkable for Indian psyche. But efforts are

on from both governmental and non-

governmental sectors to reverse this situation.

Challenges and Issues Faced by Women.

• Family Restriction.

Cultures vary significantly in their degree

of governing gender roles in families.

Some cultures closely bring down male-

female roles, et al allow a variety of roles.

Worldwide, the male role in early cultures

is represented as hunter-warrior and

thus women role as gatherer and child

care giver. However, continued analysis

suggests that early cultures could have

practiced various gender roles.

Descriptions of wife-husband roles rising

from the nineteenth century Western

world assumed a male supplier role

and women mediator-nurturing role.

Crossing gender lines, like women doing

traditionally male tasks during war, was

tolerated and expected, but it followed that

with peace, traditional gender roles need

to follow. Deviance from gender roles met

with explicit and covert punishments and,

in some cultures, punishment by death.

Generally, punishments were additional

raspingly applied to women than men

(Stephens 1963). Cultures that strictly

enforce one role for men and one for

women are meeting with sizable criticism.

Such countries assume a division of

labor supported political and economic

conditions not suitable amidst economic

and industrial change (Ashford 2001).

Although disentangled roles may target

decrease feminine restrictions, both males

and females often see personal advantages

in moving toward more role options. Some

people want to include role dimensions

not currently assigned to their gender;

males might want to be more expressive

and nurturing and females more career-

oriented. Extensive analysis shows that

assumptions regarding roles and actual

role behavior don't essentially coincide.

Industrial and industrial cultures tend to

permit husbands and wives additional role

latitude. Cultures ease role restrictions by

permitting women to emulate men's larger

freedom within the marketplace and

causing men to have larger domestic

responsibilities. Single parenting needs

even additional flexibility in each

feminine and male parenting roles.

Although cultures allow multiple

parenting roles, parenting is

predicated on identity . There are signs

that married roles are becoming even

additional versatile, as reflected within

the individualized ways marriage

ceremonies are conducted. Individualized

ceremonies and agreements could

elaborate ancient norms or replicate

innovative lifestyles.

Lack of Finance.

Financial responsibility isn't gender

specific it's imperative for

women because it is for men. Financial

challenges that women face are

often overcome with certain wise actions

such as:

• If one isn't conscious of the way

to invest, it's never too late to find

out the art of investing.

• Look for friends and relatives who can

provide good advice on investments and

financial planning. Seeking support adds

to strength and overcome ones’

weakness.

• Be a part of the cash plan and be more

active in taking financial decisions.

• Be ready with a budget that lists your

assets, income and expenses that

becomes a reckoner of your financial

position.

• Analyze for well-being of oneself and

family money spent on life assurance ,

health or Medical claim policies, income

protection plans etc.

It is understandable that influencing the

society to vary its mindset goes to be

tough, and reworking workplaces to treat

women at par isn't easy, but women

taking financial control and managing

their finances is that the most suitable

option a women has. Only women

themselves can bring a difference

through wise investment, increasing their

confidence and enjoying the financial

freedom through money management

skills.

Lack of Education.

Today more girls than ever attend school.

However, despite progress, girls and

ladies still face multiple barriers

supported gender and its intersections

with various factors , like age, ethnicity,

poverty, and incapacity, within the equal

enjoyment of the proper to quality

education. This includes barriers, within

the least levels, to access quality

education and among education systems,

establishments, and faculty rooms, such

as, amongst others: harmful gender

stereotypes and wrongful gender

stereotyping; child marriage and early

and unintended pregnancy; gender-based

violence against women and girls; lack of

comprehensive and quality learning

environments and inadequate and unsafe

education infrastructure, along

side sanitation; poverty.

The international community has

recognized the equal right to quality

education of everyone and committed to

achieving gender

equality altogether fields, including

education, through their acceptance of

international human rights law. this

suggests that states have legal

obligations to get rid of all

discriminatory barriers, whether or not

they exist in law or in lifestyle , and to

undertake positive measures

to cause equality, along side in access of,

within, and thru education.

• Role Conflict.

Role conflict happens once there area

unit incompatible demands placed upon

someone concerning their job or position.

Persons expertise role conflict once they

notice themselves force in numerous

directions as they fight to reply to the

various statuses they hold. "Inter-role

conflict results from competing sets of

expectations that are aroused by

organizational, interpersonal, and

private conflicts”. One response to role

conflict is deciding that one thing should

go. quite one politician, for instance , has

decided to not run office due to the

conflicting demands of a busy campaign

schedule and family life. In alternative

cases, people postpone having

children so as to remain on the means for

career success. Even the roles

connected to at least one standing will

create competitor demands on us of

America. A plant supervisor could fancy

being friendly with employees. At

identical time, distance is important to

guage his staff. a private can alter

external, structurally imposed

expectations held by others,

regarding the acceptable behavior of an

individual in his or her position. the

foremost effective alteration is

change within the workplace. If the

task could also be a "family-friendly"

atmosphere, the requirements of a

parent could also be met easier. one

among the most important stress-

relievers for working parents is paid day

off including family sick days. A parent

could feel cornered if he or she must keep

home with their kid however is conscious

of that missing daily of labor can, in

return, dock them each day of pay.

If they need a couple of days of paid

leave they're going to be ready

to lookout of their child and not need

to worry about losing money for doing

so. Another workplace support of work-

family conflict is child-care. Some jobs

have a toddler care facility on website or

close, assisting parents in knowing their

children are well taken care of

while they're working. The latter

example distributes role expectations to

others so on alleviate role conflict.

"Another approach involves changing

one's attitude toward and perceptions of

one's role expectations,

as against changing the expectations

themselves. An example is setting

priorities among and among roles, being

positive that bound demands area

unit forever met (for example, the

requirements of sick children), whereas

others have lower priority (such as

dusting furniture).

• Lack of Persistent

Women generally have sympathy for

others. they're very emotional. This

nature shouldn't allow them to

urge easily cheated in business

• Unfavorable Environment

The society is dominated by males.

Many business men aren't interested to

possess account with women

entrepreneurs. Male

generally don't encourage women

entrepreneurs.

• Poverty

Poverty is taken into account the

best threat to peace within the world,

and eradication of poverty should be a

national goal as important because

the eradication of illiteracy. thanks

to this, women are exploited as domestic

helps.

• Health and Safety

The health and safety concerns of

women are paramount for the wellbeing

of a rustic and is a crucial think

about gauging the empowerment of

women during a country. However, there

are alarming concerns where maternal

healthcare cares.

• Professional Inequality

This inequality is

practiced employed sand promotions.

Women face countless handicaps in male

customized and dominated environs in

Government Offices and

personal enterprises.

• Morality and Inequality

Due to gender bias in health and

nutrition there's unusually high morality

rate in women reducing their population

further especially in Asia, Africa and

china.

• Household Inequality

Household relations show gender bias in

infinitesimally small but significant

manners all across the world , more so, in

India e.g. sharing burden of housework,

childcare and menial works by so called

division of labor.

• Lack of Mental Strength

Sadly, it isn't just the poor women who are

ill-treated. fairly often in wealthy

households too women live lives of

disrespect and even within the times there

are families who are getting fanatics and

forcing women into purdah, curtailing their

freedom and voice. the primary step in

women empowerment is education and also

the second money independence. So be

bold and breakthrough . make sure that the

women/girls of your house facilitate to

urge education. Teach illiterate women in

order that their men folk don't rob them of

their wealth and land. Work with self-help

groups, in many regions within the world

women have benefited by fixing self-help

groups and gaining economic and social

independence. Draw on the strengths

within don't fear the planet or cower when

being threatened. Predators always gain

strength from fear. So learn to

face firm and appearance at the predator

within the attention and say “no” firmly.

• Lack of Data

While the country has adult from leaps and

bounds since independence wherever

education cares . the gap between women

and men is severe. The gender bias is in

instruction, specialized professional

training's which hit women very

hard employed and attaining top leadership

in any field. Increasing education among

ladies is of important in empowering

them. it's conjointly noticed that variety of

women are too weak to work. They

consume less food but work more.

Therefore, from the health purpose of

read, women who are to be weaker are to

be made stronger. Another problem is that

workplace harassment of girls. There

are numerous cases of rape, kidnapping of

girl, dowry harassment, and so on. For

these reasons, they require empowerment

of all types so as to guard themselves and

to secure their purity and dignity. To sum

up, ladies authorization can't be potential

unless ladies accompany and facilitate to

self-empower themselves. there's a desire

to formulate reducing feminized poorness,

promoting education of girls , and

prevention and elimination of violence

against women. the primary and foremost

priority need to run to the education of

women , which is that the grassroots

problem. Hence, education for

girls possesses to be paid special attention.

• Stiff Competition

Women entrepreneurs face a stiff

competition in creating themselves stand

determined in their venture to become

fortunate. There are many restraining

forces which stop them. Women are still

given suspicious appearance after they

leave late within the evening. Thus ladies

face a big challenge in facing the cruel

attitudes of officers and also the toil

needed to start up a business. thanks

to restricted quality they realize tough

to deal with men.

Ways To Empower Women

To recognize International Day of the Girl

Child on Oct. 11, there are many ways to

make a big difference in the lives of

daughters, sisters, and mothers around the

world — and right in our own

neighborhoods. To mention few are :

Provision the ticket to a better life (emphasis

is more hygiene and health); Support girls

and women in crisis that is they are subject to

abuse, child labour, trafficking, child

marriage and any other offences; Mentor a

girl / women close to home; Invest them in a

small business owner; aid the girls in

education, that is to ensure they finish

secondary education and enjoy better health;

Changes in women’s mobility and social

interaction; Changes in women’s labor

patterns; Changes in women’s access to and

control over resources; Changes in women’s

control over Decision making; Self-

employment and Self-help group; Providing

minimum needs like Nutrition, Health,

Sanitation, Housing; Other than this society

should change the mentality towards the

word women; Encouraging women to

develop in their fields they are good at and

make a career; The internet as a tool of

empowerment.

https://www.un.org/en/events/girlchild/

https://www.un.org/en/events/girlchild/

Reasons For The Empowerment of

Women.

Today we've noticed different Acts and

Schemes of the Central

Government, also as Government to

empower women of India. But in India

women are discriminated and marginalized

at every level of the society

whether it's social participation, political

participation, economic participation,

access to education, and also reproductive

healthcare. Women are found to be

economically very poor everywhere the

India. A few women are engaged in

services and other activities. So, they

have economic power to face on their own

legs on per with men. Other hand, it's been

observed that ladies are found to be less

literate than men. Increasing education

among women is of vital in empowering

them. It has also noticed that a number

of women are too weak to figure . They

consume less food but work more.

Therefore, from the health point of

view, women who are to be weaker are to

be made stronger. Another problem is that

workplace harassment of women . There

are numerous cases of rape, kidnapping of

girl, dowry harassment, and so on.

For these reasons, they require

empowerment of all types so as to

guard themselves and to secure their purity

and dignity. To sum up, women

empowerment can't be possible unless

women accompany and help to self-

empower themselves. there's a

requirement to formulate reducing

feminized poverty, promoting education of

girls , and prevention and elimination of

violence against women.

Government Schemes For Women

Empowerment.

• Rastria Mahila Kosh (RMK) 1992-

1993.

• Indira Mahila Yojana (IMY) 1995.

• Women Entrepreneur Development

program given top priority in 1997-

98.

• Mahila Samakhya being implemented

in about 9000 villages.

• Swayasjdha.

• Swa Shakti Group.

• Support to Training and Employment

Program for Women(STEP).

• Swalamban.

• Crèches/ Day care center for the

children of working and ailing

mother.

• Hostels for working women.

• Swadhar.

• National Mission for Empowerment

of Women.

• Integrated Child Development

Services (ICDS) (1975),

• Rajiv Gandhi Scheme for

Empowerment of Adolescence Girls

(RGSEAG) (2010).

• The Rajiv Gandhi National Crèche

Scheme for Children of Working

Mothers.

• Integrated Child Protection scheme

(ICPS) (2009-2010).

• Dhanalakahmi (2008).

• Short Stay Homes.

• Ujjawala (2007).

• Scheme for Gender Budgeting (XI

Plan).

• Integrated Rural Development

Program (IRDP).

• Training of Rural Youth for Self

Employment (TRYSEM).

• Prime Minister’s Rojgar Yojana

(PMRY).

• Women’s Development Corporation

Scheme (WDCS).

• Working Women’s Forum.

• Indira Mahila Kendra.

• Mahila Samiti Yojana.

• Khadi and Village Industries

Commission.

• Indira Priyadarahini Yojana.

• SBI’s Sree Shakti Scheme.

• SIDBI’s Mahila Udyam Nidhi Mahila

Vikas Nidhi.

• NGO’s Credit Schemes.

• National Banks for Agriculture and

Rural Development’s Schemes.

• Mahila Samridhi Yojana (MSY)

October,1993.

Constitutional Provisions For

Empowering Women In India.

The principle of gender equality is enshrined

in the Indian Constitution in its Preamble,

Fundamental Rights, Fundamental Duties

and Directive Principles. The Constitution

not only grants equality to women, but also

empowers the State to adopt measures of

positive discrimination in favour of women.

Within the framework of a democratic polity,

our laws, development policies, Plans and

programmes have aimed at women’s

advancement in different spheres. India has

also ratified various international

conventions and human rights instruments

committing to secure equal rights of women.

Key among them is the ratification of the

Convention on Elimination of All Forms of

Discrimination against Women (CEDAW) in

1993.

Constitutional Provisions

The Constitution of India not only grants

equality to women but also empowers the

State to adopt measures of positive

discrimination in favour of women for

neutralizing the cumulative socio economic,

education and political disadvantages faced

by them. Fundamental Rights, among others,

ensure equality before the law and equal

protection of law; prohibits discrimination

against any citizen on grounds of religion,

race, caste, sex or place of birth, and

guarantee equality of opportunity to all

citizens in matters relating to employment.

Articles 14, 15, 15(3), 16, 39(a), 39(b), 39(c)

and 42 of the Constitution are of specific

importance in this regard. Constitutional

Privileges (i) Equality before law for women

(Article 14) (ii) The State not to discriminate

against any citizen on grounds only of

religion, race, caste, sex, place of birth or any

of them (Article 15 (i)) (iii) The State to make

any special provision in favour of women and

children (Article 15 (3)) (iv) Equality of

opportunity for all citizens in matters relating

to employment or appointment to any office

under the State (Article 16) (v) The State to

direct its policy towards securing for men and

women equally the right to an adequate

means of livelihood (Article 39(a)); and equal

pay for equal work for both men and women

(Article 39(d)) (vi) To promote justice, on a

basis of equal opportunity and to provide free

legal aid by suitable legislation or scheme or

in any other way to ensure that opportunities

for securing justice are not denied to any

citizen by reason of economic or other

disabilities (Article 39 A) (vii) The State to

make provision for securing just and humane

conditions of work and for maternity relief

(Article 42) (viii) The State to promote with

special care the educational and economic

interests of the weaker sections of the people

and to protect them from social injustice and

all forms of exploitation (Article 46) (ix) The

State to raise the level of nutrition and the

standard of living of its people (Article 47)

(x) To promote harmony and the spirit of

common brotherhood amongst all the people

of India and to renounce practices derogatory

to the dignity of women (Article 51(A) (e))

(xi) Not less than one-third (including the

number of seats reserved for women

belonging to the Scheduled Castes and the

Scheduled Tribes) of the total number of

seats to be filled by direct election in every

Panchayat to be reserved for women and such

seats to be allotted by rotation to different

constituencies in a Panchayat (Article 243

D(3)) (xii) Not less than one- third of the total

number of offices of Chairpersons in the

Panchayats at each level to be reserved for

women (Article 243 D (4)) (xiii) Not less than

one-third (including the number of seats

reserved for women belonging to the

Scheduled Castes and the Scheduled Tribes)

of the total number of seats to be filled by

direct election in every Municipality to be

reserved for women and such seats to be

allotted by rotation to different constituencies

in a Municipality (Article 243 T (3)) (xiv)

Reservation of offices of Chairpersons in

Municipalities for the Scheduled Castes, the

Scheduled Tribes and women in such manner

as the legislature of a State may by law

provide (Article 243 T (4)) xiv

Legal Provisions:

To uphold the Constitutional mandate, the

State has enacted various legislative

measures intended to ensure equal rights, to

counter social discrimination and various

forms of violence and atrocities and to

provide support services especially to

working women. Although women may be

victims of any of the crimes such as 'Murder',

'Robbery', 'Cheating' etc, the crimes, which

are directed specifically against women, are

characterized as 'Crime against Women'.

These are broadly classified under two

categories. (1) The Crimes Identified Under

the Indian Penal Code (IPC) (i) Rape (Sec.

376 IPC) (ii) Kidnapping & Abduction for

different purposes ( Sec. 363-373) (iii)

Homicide for Dowry, Dowry Deaths or their

attempts (Sec. 302/304-B IPC) (iv) Torture,

both mental and physical (Sec. 498-A IPC)

(v) Molestation (Sec. 354 IPC) (vi) Sexual

Harassment (Sec. 509 IPC) (vii) Importation

of girls (up to 21 years of age) (2) The Crimes

identified under the Special Laws (SLL)

Although all laws are not gender specific, the

provisions of law affecting women

significantly have been reviewed periodically

and amendments carried out to keep pace

with the emerging requirements. Some acts

which have special provisions to safeguard

women and their interests are: (i) The

Employees State Insurance Act, 1948 (ii) The

Plantation Labour Act, 1951 (iii) The Family

Courts Act, 1954 (iv) The Special Marriage

Act, 1954 (v) The Hindu Marriage Act, 1955

(vi) The Hindu Succession Act, 1956 with

amendment in 2005 (vii) Immoral Traffic

(Prevention) Act, 1956 (viii) The Maternity

Benefit Act, 1961 (Amended in 1995) (ix)

Dowry Prohibition Act, 1961 (x) The

Medical Termination of Pregnancy Act, 1971

(xi) The Contract Labour (Regulation and

Abolition) Act, 1976 (xii) The Equal

Remuneration Act, 1976 (xiii) The

Prohibition of Child Marriage Act, 2006 (xiv)

The Criminal Law (Amendment) Act, 1983

(xv) The Factories (Amendment) Act, 1986

(xvi) Indecent Representation of Women

(Prohibition) Act, 1986 (xvii) Commission of

Sati (Prevention) Act, 1987 (xviii) The

Protection of Women from Domestic

Violence Act, 2005

Special Initiatives for Women

(i) National Commission for Women : In

January 1992, the Government set-up this

statutory body with a specific mandate to

study and monitor all matters relating to the

constitutional and legal safeguards provided

for women, review the existing legislation to

suggest amendments wherever necessary,

etc. (ii) Reservation for Women in Local Self

-Government : The 73rd Constitutional

Amendment Acts passed in 1992 by

Parliament ensure one-third of the total seats

for women in all elected offices in local

bodies whether in rural areas or urban areas.

(iii) The National Plan of Action for the Girl

Child (1991-2000) : The plan of Action is to

ensure survival, protection and development

of the girl child with the ultimate objective of

building up a better future for the girl child.

(iv) National Policy for the Empowerment of

Women, 2001 : The Department of Women

& Child Development in the Ministry of

Human Resource Development has prepared

a “National Policy for the Empowerment of

Women” in the year 2001. The goal of this

policy is to bring about the advancement,

development and empowerment of women.

Findings of the Study

• Globalization, Liberalization and other

Socio - Economic forces have given

some respite to a large proportion of the

population. However, there are still

quite a few areas where women

empowerment in India is largely

lacking.

• There needs to be a sea – change in the

mind set of the people in the country.

Not just the women themselves, but the

men have to wake up to wake up to a

world that is moving towards equality

and equity. It is better that this is

embraced earlier than later for our own

good.

• There are several Government

programmes and NGOs in the Country,

there is still a wide gap that exists

between those under protection and

those not.

• Poverty and illiteracy add to these

complications, The Empowerment of

Women begins with a guarantee of

their health and safety.

• Empowerment of Women could only

be achieved if their economic and

social status is improved. This could be

possible only by adopting definite

social and economic policies with a

view of total development of women

and to make them realize that they have

the potential to be strong human beings.

• In order to create a sustainable world,

we must begin to Empower Women.

Suggestions

1. The first and foremost priority should be

given to the education of women, which is the

grassroots problem. Hence, education for

women has to be paid special attention.

Protecting girls and women by equipping

skilled, local staff to offer training, education,

counseling, medical care, small business

loans, and other programs that reach women

and girls as well as boys — helping to end

cycles of gender-based violence.

2. Awareness programmes need to be

organized for creating awareness among

women especially belonging to weaker

sections about their rights.

3. Women should be allowed to work and

should be provided enough safety and

support to work. They should be provided

with proper wages and work at par with men

so that their status can be elevated in the

society.

4. Strict implementation of Programmes and

Acts should be there to curb the mal-practices

prevalent in the society.

Conclusion : Thus, the attainment in the field

of income / employment and in educational

front, the scenario of women empowerment

seems to be comparatively poor. The need of

the hour is to identify those loopholes or

limitations which are observing the

realization of empowerment of women and

this initiative must be started from the women

folk itself as well as more importantly policy

initiative taken by the state and society. Let

https://donate.worldvision.org/give/girls-women-in-crisis

us take the oath that we want an egalitarian

society where everybody whether men or

women get the equal opportunity to express

and uplift one’s well being and well being of

the society as whole. Women’s

empowerment is not a Northern concept

women all over the world, including

countries in South, have been challenging

and changing gender inequalities since the

beginning of the history. Struggles have also

been supported by many men who have been

outraged at injustice against women. Women

represent half the world’s population and

gender inequality exists in every nation on

the planet. Until women are given the same

opportunities that men are, entire societies

will be destined to perform below their true

potentials. The greatest need of the hour is

change of social attitude to women. “When

women move forward the family moves, the

village moves and the nation moves”. It is

essential as their thought and their value

systems lead the development of a good

family, good society and ultimately a good

nation. The best way of empowerment is

perhaps through inducting women in the

mainstream of development. Women

empowerment will be real and effective only

when they are endowed income and property

so that they may stand on their feet and build

up their identity in the society. The

Empowerment of Women has become one of

the most important concerns of 21st century

not only at national level but also at the

international level. Government initiatives

alone would not be sufficient to achieve this

goal. Society must take initiative to create a

climate in which there is no gender

discrimination and women have full

opportunities of self decision making and

participating in social, political and economic

life of the country with a sense of equality.

References.

• Kishor, S. and Gupta, K. (2009), Gender

Equality and Womens Empowerment in

India, NATIONAL FAMILY HEALTH

SURVEY (NFHS-3) INDIA, 2005-06,

International Institute for Population

Sciences, Deonar, Mumbai. 8. Suguna,

M., (2011). Education and Women

Empowerment in India. ZENITH:

International Journal of Multidisciplinary

Research, 1(8), 19-21.

• http://www.slideshare.net/puneetshar

ma5688/women-

empowermentpuneet-sharma.

• https://www.academia.edu/27408340

.

• https://www.slideshare.net/raghurh/

women-empowerment-2.

• https://accountlearning.com/challeng

es-problems-faced-women-

entrepreneurs-remedial-measures/

• https://www.iaspaper.net/women-

empowerment-in-india/amp/

• http://www.business-

standard.com/article/current-

affairs/domestic-violence-

topscrimes-against-women-says-

report-115120200013_1.html

• https://en.wikipedia.org/wiki/Women

_in_India

• http://www.indiacelebrating.com/ess

ay/women-empowerment-essay/

• http://www.importantindia.com/1905

0/essay-on-women-empowerment/

• http://wcd.nic.in/schemes-

listing/2405

http://www.slideshare.net/puneetsharma5688/women-empowermentpuneet-sharma



https://www.slideshare.net/raghurh/women-empowerment-2

https://www.slideshare.net/raghurh/women-empowerment-2

https://accountlearning.com/challenges-problems-faced-women-entrepreneurs-remedial-measures/



A Study on Recent Trends in Marketing Strategy with reference to Banking Sector

Anirban Roy

Student

Ramaiah Institute Of Management Studies

Bangalore

E-Mail Id: [email protected]

Shruthi J

Assistant Professor

Department Of Commerce

Gfgc Saragur

E-Mail Id: [email protected]

Abstract

Indian banking sector historically developed under five stages that are stated as pre-

independence, post-independence, pre-nationalization, nationalization and post-liberalization

stages. In all these stages, other than post liberalization stage, marketing was always

considered not to be a banker’s cup of tea. But today, it is considered to be an integral

management function in the banking sector. India’s banking sector has made rapid strides in

reforming and aligning itself to the new competitive business environment. Traditionally,

Indian banks have not really paid adequate attention to marketing and market research. The

paper focuses on the recent macro and micro trends in the marketing of the banking sector.

The paper also develops the conceptual frame work in the form of model relating banks with

each touch point of customer exposure. Finally, the paper ends with the conclusion that

marketing services are not only for the survival but also needed for improving the efficiency

of banking services and building a loyal customer base.

Keywords - Banking sector, Service Marketing, Macro and Micro trends, Touch point.



Introduction

The banking sector is an integral part of the

economy. Hence this sector plays a key role

in the wellbeing of the economy. A weak

banking sector not only jeopardizes the long-

term sustainability of an economy, it can also

be a trigger for a financial crisis which can

lead to economic crises. Majority of the

banking institutions are now putting

emphasis on marketing to make customer

aware about the services and benefits offered

by them.

Marketing is the crucial connection between

banks and customers, no banks can expect to

succeed without putting substantial

investments in its marketing efforts. Banks

nowadays are coming up with surprising and

impressing ways to lure the customers and

retaining their customer base. These days’

banks are focusing heavily on building long

term relationships with their existing

customers and thereby gaining new

customers. Hence, relationship marketing

becomes very important for the banks. It is

concerned with mapping out all the touch

point and evaluating what services are

provided, by whom, and when, and how, and

what is expected by customers.

Bank marketing is the aggregate of

functions, directed at providing services to

satisfy customers’ financial and other

related needs and wants, if more effectively

and efficiently than the competitors

keeping in view the organizational

objectives of the banks.

All the techniques and strategies of

marketing are used so that ultimately, they

induced the people to do business with the

particular bank. To create and keep a

customer means doing all those things so that

people would like to do business and

continue to do it with the particular bank

rather than with the competitors. It cannot

stay in business if it does not attract and hold

enough customers, no matter how efficiently

it operates

Increasing Importance of Marketing in

Banking Industry

The reasons for marketing scope to have

importance in banking and for banks to

interest in marketing subject can be

attributed to the following factors:

Change in demographic dynamics

Cut throat competition in the service

industry

Increased profit consciousness of the

banks

Deregulation of interest rates

Entry of various private and foreign

banks

Increasing awareness, education and

urbanization

Indigenous growth of non-banking

financial institutions

Disintermediation

Advent of the technology

Increasing the reach of innovative

banking products

Literature Review

The effort to promote banking business is

quite distinguished affair. At present, it has

become very tricky due to the changing

trends of industry, increasing competition

and efficiency of regulatory environment,

and the financial system. The complexity in

the banking services is also an issue of vital

importance. This is the time when banks are

offering new and innovative services,

frequently in the market. The content of

promotional tools should help the customer

in making most valuable decision. This can

be firmly said that well-designed

promotional strategies are very important

to promote banking services effectively. In

marketing any product or service, customer

satisfaction has been given the prime

importance. The most frustrating aspect of

marketing of banks is lack of management

support, lack of inter-departmental

cooperation, government regulations and

advertising & media problems.

Berry & Lindgreen, 1980; Sarin & Anil

2007 recommended that manpower in

service organizations must work with the

focus of satisfying the customer.

Promotional packages are very important

for financial service industry (Ananda &

Murugaiah, 2003). Thus, the orientation of

banks should be with a much wider focus in

relation to consumer and market needs, and

the consequent marketing strategies. The

challenges put forth by the changing

environment have to be effectively tackled

to identify the consumer needs and

providing valuable services through

product innovation (Nair Raman, 2006).

A study by Krishna, Suryanarayana &

Srikant (2005) recommended that

promotional strategies should be designed

as per the nature of the services to be

promoted. The advertisers should seek a

narrative approach to communicate the

service experience rather than a logical,

argumentative approach. Narrative

approach involves storytelling

methodology using sequence of events

(Sehgal Roli, 2004). It has been generalized

in the studies that services marketing

advertisement is more challenging than the

advertising of tangible products (Ray and

Bose, 2006). The case should be taken in

the marketing of financial services very

seriously (Farrokhtakin, Stavash, 2000).

Kumar Ashok (1991) states that while

formulating marketing strategy, a bank

should focus attention on (i) consumer

sovereignty, (ii) attitude, (iii)

responsiveness and personal skills of bank

staff, (iv) revitalizing the marketing

department, (v) top management support to

the marketing department, (vi)

participation of marketing personnel in key

bank decisions.

Conceptual Model for Bank Marketing

Recent Trends in Marketing Strategies

of Banks

Traditionally, banks were seen as the

holders of the money, which gradually

changed their role as the creators of money.

Today, the scope of banks has widened

phenomenally, now the banks are seen as

the purveyor of finance for the entire

nation. A sound banking system is the life

blood of any developing economy and it

reflects the growth of the economy.

Financial inclusion is a major agenda for

the Reserve Bank of India (RBI). Without

financial inclusion, banks cannot reach the

un-banked. It is also a major step towards

increasing savings and achieving balanced

growth. Recently two conferences were

held in Mumbai highlighting these issues;

The Sixth Banking Tech Summit of

Confederation of Indian Industry (CII) and

another one organized by the Society for

Worldwide Interbank Financial

Telecommunication, SWIFT.

Of the 6.9 billion people on the planet, just

30 per cent (2.1 billion) have bank accounts

while 75per cent— 5.2 billion people—

have mobile phones. In India, only 200

million people have access to a bank

account while 811 million have a mobile

phone. For a population of 1.2 billion

people, this translates into 68 per cent

having a mobile phone and only 17 per cent

having a bank account. The numbers speak

for themselves: when it comes to reaching

the ‘un-banked’ and extending financial

inclusion for the larger population, mobile

phone is the key, stated by Wim

Raymaekers, Head of Banking Market,

SWIFT.

Observing the above statistical data, it can

be concluded that there is still an ample

scope for the growth of banking sector.

Hence, it requires sound and innovative

marketing strategies to capture the

untapped market.

Following trends have been observed in the

marketing strategies of banks recently:

• Advertising remains the undisputed

promotional tool for banks so far

among the other promotional tools.

Advertising, which includes direct

mail, accounted for the largest share of

marketing expenditures at 52 percent,

compared to 58 percent in 2007. Public

relations accounted for 27 percent of

marketing budgets compared to 21

percent in 2007.

• Consumer expectations are growing.

With the increase in the education of

the consumers, they are now

demanding more and more value-added

services and are ready to pay premium

for it.

• Mobile banking is the need for today. It

has become the blessing for the

consumers who don’t have the time to

visit the bank personally. The biggest

advantage that mobile banking offers to

banks is that it drastically cuts down the

costs of providing service to the

customers. Also, service providers are

increasingly using the complexity of

their supported mobile banking services

to attract new customers and retain old

ones.

• Social media is also a tool for marketing

the banking services. Forty percent of

banks used social media for marketing

purposes in 2009. Twenty-nine

percent used social networking (i.e.,

Face book, Twitter, etc.). Face book,

used by 76% of banks, is the most

popular among various social media

outlets, followed by Twitter at 37%.

The main reasons for using social

media were for communication and

competitiveness.

• Due to increased use of technological

bases has increased the operational

efficiency of the Indian banks. By

2009, virtually all banks had embraced

the Internet and most had websites.

Marketer said e-newsletters were the

most effective form of Internet

marketing, followed by search engine

marketing and then sponsorships.

• Marketing expenditure has witnessed

the tremendous growth in last few years

as the percentage of total banking

expenditure.

• Despite the overall state of the economy

and the banking industry, marketing

expenditures were up in 2009. Nearly

60 percent of banks said they planned

to increase their marketing

expenditures in 2009, the same amount

as in 2007. Most of the banks view

marketing as a strategic driver for their

business.

• Focus on Incremental New Customer

Growth: Instead of generating as many

accounts as possible, banks will be

focusing on the potential value of

relationships including the likelihood of

engagement and retention.

• Gathering Email Addresses: With other

communication channel cost increasing

and the improved results achieved

when email is combined with more

traditional channels, the importance of

collecting and using email addresses

has never been more important.

Conclusion

With the increased competition and

awareness about the banking sectors,

customers are now becoming over

demanding about the services offered. New

and new trends are being witnessed now

days. Banks have also realized that social

channels need to be used differently in

financial services than with retail or other

industry verticals. As opposed to trying to

find 'friends' of our brands, social media has

been used most effectively for customer

service (Twitter) and for the promotion of

broad-based public relations initiatives. No

communication channel is 'free'. While email

may seem like costly channel to use for

reaching customers, the lack of clear

targeting and message development may

prove costly as customer’s opt-out of future

communications or simply ignore email

messages. As per the studies within the

banking industry, email has not proven to be

as good of a replacement for channels like

direct mail as it has been a good supplement

for improved results.

References

• Blech and Blech (2009),

Advertising Management, Tata

McGraw Hill Publishing

Company Limited.

• Jarnsdorf (2010), “Information

regarding trends in marketing of

banking sector is obtained

Available at:

http://jarnsdorf.blogspot.in

(Accessed 20 February,2012)

• Ravi Shanker (2003), Services

Marketing—The Indian

Perspective, Excel Books.

• http:// www.texasbankers.com

(Accessed 20 February,2012)

• http://www.brandingstrategyinsid

er.com (Accessed 18

February,2012)

• http://mediamaistro.wordpress.co

m (Accessed 19 February,2012)

• http://www.aba.com (Accessed

17 February, 2012)

• http://articles.economictimes.indi

atimes.com (Accessed 17

February, 2012)

Technology Advancement And Fraud’s In Banking

Subhashree.K,

[email protected]

Mount Carmel College Autonomous

M.Com

Harshitha.S

[email protected]

M.Com

Mount Carmel College Autonomous

Abstract

Technology plays an important role in our day-to-day life and make our life easier. Technology

serves various functions in our modern life like education, communication, business, banking etc.

It makes our life easier and securer in business and personal life. Banking has grown a lot from

barter system to internet banking with technological advancement. The growth and advancement

in technology has led to the paradigm shift in the entire banking operations and systems.

Technological advancements have made way to the growth of digitalization. Internet banking came

into existence with development of the Internet technology around the globe. Technological

advancements play a major role in the economic development. Using technological advancements'

payment, transactions, deposits, and withdrawals are made easier and convenient for the customers.

Banks using technological advancements have come up with developments in mobile banking,

telephone banking, internet banking, ATM, debit cards and credit cards, computerizes banking

software’s, core banking solutions, MICR cheque processing, cheque transaction, and online loan

processing. There is increase in technological advancement, there is also a drawback in the

technology, with the increase in technology advancement in bank also facing its adverse effect in

the form of bank frauds. The major pitfalls of technological advancement in the banking is, the

personal relationship with banks and customers are reduced. There are many complex transactions

which cannot happen without face to face interaction. The major bank frauds are fake apps,

malware, fraud through SIM swap, unsecured Wi-Fi connections, PIN crack, password hacking,

ATM cloning fraud.

The objective of this research is to identify a massive change in terms of fulfilling customer needs

through e-banking, impact of technology in banking and creating awareness among the people

regarding the frauds in banking due to the technological advancements. Measures to improve

services and how the future holds good for technology

Keywords: Technological advancements, Bank frauds, Security, Customers, Internet

Banking, ATM.



Introduction

Banking plays an important role in today’s

world and development of economy. Banking

ensures quality services to customers as well

as to the government. Modern banks deal with

banking activities on the on large scale and

abide by the rules made by the government.

Annual data are used to analyze the growth of

economic development and banking sector.

Development of banking sectors has increased

the number of private banks and nationalized

banks. Private bank development has led to

increase in foreign banks entering the global

market. Nationalized banks have been

improving with policies, schemes, initiatives

of providing loans with low rate of interest and

encouraging people for savings. Increase in

deposits make the banks to invest in different

portfolios and manage their operations which

in turn leading to increase in economic

growth. Technological advancements had led

to the massive growth and development in the

banking sector. The developments are making

our life to go cash less which in turn leads to

digitization of economy. Customers are made

easy for making their transactions, withdraw,

make deposits, and borrow loans without the

lengthy procedures. It help in maintaining

good relationship with the customers. In early

days availing banking services were very

complicated, the procedures and process in

making transactions were different, to avoid

these banks have upgraded with the

technology, ATMs were introduced, debit

cards and credit cards were introduced to make

the transactions easier. These made customers

retrieve and maintain good relationship

between banks and customers. Now a

days there are so many apps and software

introduced by banks which make payments

easier in the single touch. All our banking

services from opening a bank account,

payments, transactions, shopping, ordering

things through online were made easier with

the help of technological advancement in

banking. Banks frauds are also taking place

due to the technological advancements. ATM

attacks are very common, PIN hacking,

account number are hacked. Just taking a

phone number of a person will make to crack

the bank account number as the phone number,

and Aadhar card is linked to the banks to

overcome these frauds banks have to provide

proper security measures. Impact of banking

frauds is increase in complexity, increase in

expenses, risk and effective and intelligent use

of funds. It is a big challenge for the banks to

offer a solution and security.


Madan Bhasin (2016), Frauds in banking

sectors: This research focused on growth of

banking industry and ensures that reporting

system in the bank suitably satisfied so that

frauds are reported without delay and fix staff

accountability. Bank must provide sufficient

focus on the fraud, prevention,

and management functions. To enable

effective investigation of fraud cases, fraud

risk management, fraud monitoring, and fraud

investigation function

K C Chakraborty (2003), focused on the

impact of fraud on entities like banks which

are engaged in financial activities

involves intermediation of funds. The

economic cost of fraud can be a

huge regarding distributing the works of the

market, financial institution and the payment

system. The vulnerability of the banks to

frauds has been heightened by technological

advancement in recent times.

Madan Bhasin (2015), an empirical study if

frauds in banks; This study revealed there is a

poor employment practice, and lack of

effective training and focuses on how

economic development is effected by frauds

in the banking sector.


The research study is descriptive in nature. To

accomplish the objectives of this study,

secondary data from various websites,

journals, and articles have been used. The

discussion is based on the review of the

customers who regularly use the banking

technologies for their day-to-day activities.

Discussion

Technological advancement in banking:

1. ATM: Automatic Teller Machine was first

technology which was introduced by the

banking sector. ATM made withdrawal and

deposit easier. ATM was available on all the

streets, and areas. It’s convenient for the

people to withdraw cash and make deposit. Not

only deposit and withdrawal, ATM also helps

to check account balance, last few transactions

shown on mini statement. This made

customers easy and convenient to check their

balance. ATM also reduced the cost on human

resources. ATMs are available 24×7 for

services. There are other automated services

such as cash deposit machine, passbook

printing, money transfer, etc. Passwords are

encrypted and protected and customer personal

identification number. ATM makes our life

easier to withdraw cash in emergency purpose.

ATM can also a transfer fund and accepts

cheque through cheque deposit machines. It

also reduces the work of customer and staffs.

It also reduces the human error. It benefits

travelers as they don’t have to carry large

amount of cash. ATM’s can provide fake

currency. ATM centers are under CCTV

surveillance.

2. Telephone Banking: This avails services of

bank through telephone line. It almost provides

all the services that a tradition brick and motor

bank provided. Telephone banking is used to

check account balance and customer can also

inquire about the information regard to their

account. Any queries such as deduction of

money from accounts, schemes of making

deposits and regarding the investment

portfolio. Telephone banking also makes

generation of PIN and password. Customer

can also inquire on how to resist telephone

banking PIN. It also provides customer

services with extreme services 24×7 within

any geographical area. It also reduces the cost

because of outsourcing call center. This is

where the call centers merged with banks.

Facilities were taken through interactive voice

response with the convenient regional

languages available. It also provides services

example: account information, current balance

and transaction.

3. Mobile Banking: Mobile banking refers to

provision of banking and financial service with

the help of mobile telecommunication devices.

The scope of offered services may include

facilities to conduct bank and stock market

transactions to administrate accounts and to

access customized information. Ever since the

Internet has taken over there is a major shift in

the personal and business life. Before the

mobile, and Internet banking, it was very

difficult of carrying a bank transaction, where

customer had to go to the bank and wait in

queue for the whole day to check the balance,

deposits, withdrawal of money and transfer of

funds. Now, everything has changed due to the

technological advancement. Transactions of

money from one account to other account,

making payments, and banking services can be

availed from anywhere in the world with the

help in Internet in the mobile. Mobile banking

provides services such as account information,

transaction, investment, support, and content

services. Mobile banking also gives SMS

alerts. Use of mobile banking among the

people have increased from 9.7% to 20.4%.

Improved customer service: 58% reduction in

misdirected inbound cells, 75% can self serve

and make payments, 97% satisfied with

service they receive. Decrease in frauds with

30% of alerts confirmed has frauds within 10

minutes, customers contacted within 30

seconds of suspicious truncation, 50% in cut in

bank losses from reaching customers faster,

35% cut in overall bank frauds.

4. Debit Cards: Debit card is a plastic

payment card that is used instead of cash while

making purchase and payments. It eliminates

the need of carrying cash. It’s used for

shopping purposes in malls, theaters, and

markets. It holds the information of the

account such as balance and soon. The

customer should have sufficient amount in the

account to make transactions and payments.

5. Credit Cards: Credit cards are similar to

debit card. Payments and transactions can be

made easier through credit cards. It does not

require having a certain balance in the account.

Credit cards can be used to make purchases,

shopping, paying bills like electricity bills,

recharge, etc. Credit limit is provided by the

bank based on the credit score. The credits

used should be repaid based on the credit card

features, and bank policies.

6. Online banking: Online banking is done

through web with the Internet connection.

Online banking is also called as internet

banking. It replicates all the services that a

physical existence bank. It identifies the

problem of the customers. Processing

capabilities gets transferred from bank staff to

the users. In this bank, it saves time, cost, and

reduces the work of bank staff. Bank also insist

customers on educating customers. Every

person in rural area can avail services through

Internet.

7. NEFT: National Electronic Fund Transfer is

a service provided to the customers for

transferring large amount of funds from one

account to another account. There is no limit

on minimum and maximum amount to be

transferred.

8. RTGS: Real Time Gross Settlement

provides services to customer for transferring

large amount of funds. The minimum amount

should be 200,000 and maximum amount is

unlimited for fund transfer.

Recent Innovations:

• Pay tm: Pay tm apps were introduced to make

payments easy and prepaid online recharge and

wallet payment. It helps to make payment for

paying bills, online recharge, movie tickets,

and electricity bill payment. Pay tm is an

Indian e-commerce payment system and

digital wallet. Payments are made easier with

help of QR code.

• Aadhar pay: payments are made through

Aadhar payment apps. Payments can be made

without phone. Payments and transaction are

made with help of a particular Aadhar number

which is linked to bank account. This app is

made for merchants, business men’s,

shopkeepers. Finger print for authentication is

required for making payments. Based on this

authentication the money is paid from Aadhar

linked account.

• POS terminal: point of sale terminal

computerized for cash register, it tracks and

record customer activity of credit and debit

cards which is connected to the system through

a network. Imps: immediate payment service:

instant transfer of funds from one account to

another account through mobile phones.

Bank Frauds:

1. ATM Card Cloning: ATM card cloning is

skimming theft of card information, which

steals information of the card. When the card

is swiped at the machine the device captures

the information from the magnetic strip of the

card. How it works? Thief places skimmer on

the ATM card swiping machine and place a

camera in the ATM and hack the camera to get

the PIN. Once it’s recorded it's stored in the

skimmer, this makes them to create clone

cards. Customer should be aware of this

skimmer and hacker of their PIN. Customer

should also check the ATM and the card reader

section which is extended.

2. Fake App: There are many fake apps, which

are replications of the original apps of the

banks. Many banks have come up with their

apps, which helps the customer to make

payments and transactions easier. These apps

are introduced to make the customers service

convenient. There are fake apps which have

come up to make frauds, taking technology has

an advantage. All apps in the Google Play

Store, Google is constantly removing the

fraudulent apps from the market place such as

fake anti-virus, browser and games.

3. Malware: it is a program which is harmful

to the system such as virus, worms, Trojan,

horse and spyware. Malware spreads virus to

systems and network. It can be delivered by

USB drive and through automatic downloads.

Phishing is also a kind of hacking system and

information. Types of malware:· Virus

attached their malicious code to clean code and

wait for an automated process to execute them.

Like a biological virus, they can spread quickly

and widely, causing damage to the core

functionality of systems, corrupting files and

locking users out of their computers. They are

usually contained within an executable file.

Worms get their name from the way they infect

systems. Starting from one infected machine,

they weave their way to the network,

connecting to consecutive machines to

continue the spread of infections. This type of

malware can infect entire networks of device

very quickly. Spyware as the name suggest, is

designed to spy on what a user is doing. Hiding

in the background on a computer, this type of

malware will collect information without the

user knowing, such as credit card details,

passwords and other sensitive information.

4. Password hacking: pass word hacking can

happen by phishing, ATM skimmer. Password

or PIN of customers can be hacked through

random phone calls. The thief makes phone

calls and when the receivers attend the call all

the information of the customer will be hacked.

5. Unsecured Wi-Fi connection: unsecured

Wi-Fi connection and hack all the personal

information of the people and automatic

downloads of fake apps can be takes place

through unsecured Wi-Fi connection.

6. Cheque frauds: Changes and alteration in

the cheque is a criminal offence. Counterfeit

and forgery of cheque is common. People

should be aware of this kind of frauds that are

happening in banking sectors.

7. Loan frauds: loan frauds are similar to

cheque frauds. Money loaning agencies only

requires a small amount of information in their

lending to application process. This is easy to

identify thieves to use stolen information

anything from social security number to your

banking information.

Some other banking frauds are shortage of

cash in account; opening bank account in the

name of nonexistence person, fraudulent

endorsement of cheque, drafts, bills, etc., fake

telegrams and emails, misuse of computer

code, fudging of financial statement,

discounting of foreign trade document without

proper trade transactions.

Suggestions:

Customer’s awareness can be created through

these measures, namely, customers should

have a receipt of that payment that is made

through physical, or online payments;

customers should check the holograms of

customers copy. Customers should check the

mode of making payment; customers should

always have a copy of the online transaction

made as evidence. The very common thing is

the customers should not share their opt, PIN

and passwords· The websites of RTGS and

NEFT will start from http; customers should

avoid unauthorized emails. Customers should

be always monitor their account and check the

balance constantly.

Conclusion

Technology places a major role in today

economic development of the country.

Technology in banks is improving day by day,

using technology advancement. Bank services

and growth of banking sector is tremendous.

Availing banking services has become easy by

technological advancement. In other hand

technology also gives way for criminal frauds.

The objective of this research is to bring

awareness among the customers. Many

customers who avail banking services through

technology should also be aware of banking

frauds. Banking frauds are such as ATM card

cloning, fake apps, fake websites, hacking of

PIN,, etc. customers should be aware of such

frauds that are taking place due to

technological advancement. Many banks and

RBI has come up with certain remedies to

prevent banking frauds. Customers should use

authorized apps of that particular bank and

websites of that particular bank. If in case

customers find themselves cheated, they

should compliant immediate to the particular

bank. Example: ATM card skimmers are

placed in magnetic strips, so, the

customers should check the reader whether the

number is extended or not. So customers

should be aware of these frauds that are

happening through banking technology

advancement. As the technology is very

important in today’s world. It has good and bad

impacts on the future holding of technology.

People should use technology according to

their need and requirement. The development

of economy depends on the technology in all

the sectors. In the same way it is also harmful.

The criminal activities will also increase. The

people in the country should use technology

for useful and effective needs. Criminal and

fraud activities have to be prevented. This

paper focus on preventive measures to avoid

bank frauds by sticking to the rules and eternal

vigilance has basic preventive measures.

Banks has to provide internal control system

security measures to protect their customers.

Bank staffs, offices, and management should

come up with policies and rules to bring

customers awareness.

References

bhasin, m. (2016). frauds in banking sector:

expericence of a developing country. asian

journal of social science and management

studies , 3, 1-9.

Bhasin, M. (2015). imperical study of frauds

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http://www.google.com/searech?q=infographic+on

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