STRATEGIC MANAGEMENT

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TABLE OF CONTENTS

TOPICS PAGE NO.

Dedication i Acknowledgement ii Executive Summary iii

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Table Of Content iv

CHAPTER 1Introduction to Leadership Styles

1.1 INTRODUCTION 1

1.2 DEFINITION 1

1.3 QUALITIES/ CHARACTERISTICS OF LEADERS 2

1.4 FACTORS OF LEADERSHIP 3

1.4.1 LEADER 3

1.4.2 FOLLOWERS 4

1.4.3 COMMUNICATION 4

1.4.4 SITUATION 5

1.5 LEADERSHIP STYLES 5

1.5.1 AUTOCRATIC LEADERSHIP 5

1.5.2 BUREAUCRATIC LEADERSHIP 7

1.5.3 DEMOCRATIC LEADERSHIP 8

1.5.4 LAISSEZ-FAIRE LEADERSHIP 9

1.5.5 CHARISMATIC LEADERSHIP 10

1.5.6 TRANSFORMATIONAL LEADERSHIP 11

1.6 THEORIES ON LEADERSHIP 13

1.6.1 "GREAT MAN" THEORIES 13

1.6.2 CONTINGENCY THEORIES 13

1.6.3 RELATIONSHIP THEORIES 13

1.6.4 TRAIT THEORIES 14

1.6.5 BEHAVIORAL THEORIES 14

1.7 AUTHORITARIAN LEADER (HIGH TASK, LOW RELATIONSHIP) 14

1.8 TEAM LEADER (HIGH TASK, HIGH RELATIONSHIP) 15

1.9 COUNTRY CLUB LEADER (LOW TASK, HIGH RELATIONSHIP) 15

CHAPTER NO. 2CASE STUDY OF SOURAV CHANDIDAS GANGULY

2.1 INTRODUCTION 16

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2.2.2 NO PERSONAL INSECURITY 17

2.2.1 INDIFFERENCE TO CRITICISM 17

2.2 LEADERSHIP TRAITS OF SOURAV GANGULY 17

Chapter no. 3SWOT Analysis of SOURAV CHANDIDAS GANGULY

3.1 Strengths 19

3.2 Weaknesses 19

3.3 Opportunities 20

3.4 Threats 20

CONCLUSION 21

RECOMMENDATIONS 22

BIBLIOGRAPHY 23

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CHAPTER No. 1INTRODUCTION

T0

DIRECT MARKETING

1.1 DIRECT MARKETINGTarget marketing direct marketing is about making direct contact with existing and

potential customers to promote your products or services. Unlike media advertising, it

enables you to target particular people with a personalized message. Direct marketing can

be cost effective and extremely powerful at generating sales, so it is ideal for small

businesses. Direct marketing uses a variety of different methods. Direct mail, mailshots

and leafleting are widespread, and other forms of direct and integrated communication are

growing in popularity. Telephone marketing, mobile marketing, email and texting offer

more opportunities to reach your target market.

Direct marketing is a channel-agnostic form of advertising which allows businesses and

nonprofit organizations to communicate straight to the customer, with advertising

techniques that can include cell phone text messaging, email, interactive consumer

websites, online display ads, database marketing, fliers, catalog distribution, promotional

letters, targeted television commercials, response-generating newspaper/magazine

advertisements, and outdoor advertising. Amongst its practitioners, it is also referred to as

Direct Response. Direct marketing messages emphasize a focus on the customer, data,

and accountability. Hence, besides the actual communication, creation of actionable

segments, pre- and post-campaign analytics, and measurement of results, are integral to

any good Direct Marketing campaign. Characteristics that distinguish direct marketing

are:

A database of names (prospects, customers, businesses, etc.), often with certain other

relevant information such as contact number/address, demographic information, purchase

habits/history, company history, etc., is used to develop a list of targeted entities with

some existing common interests, traits or characteristics. Generating such a database is

often considered part of the Direct Marketing campaign.

Marketing messages are addressed directly to this list of customer and/or prospects.

Direct marketing relies on being able to address the members of a target market.

Addressability comes in a variety of forms including email addresses, phone numbers,

Web browser cookies, fax numbers and postal addresses.

Direct marketing seeks to drive a specific "call to action." For example, an advertisement

may ask the prospect to call a free phone number, mail in a response or order, or click on

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a link to a website. Direct marketing emphasizes track able, measurable responses, results

and costs from prospects and/or customers—regardless of medium.

Direct marketing is practiced by businesses of all sizes—from the smallest start-up to the

leaders on the Fortune 500. A well-executed direct advertising campaign can prove a

positive return on investment by showing how many potential customers responded to a

clear call-to-action. General advertising eschews calls-for-action in favor of messages that

try to build prospects’ emotional awareness or engagement with a brand. Even well-

designed general advertisements rarely can prove their impact on the organization’s

bottom line. The demonstrable result of Direct Marketing is the reason for its increasing

popularity.

http://en.wikipedia.org/wiki/Direct_marketing

1.2 IMPORTANCE OF DIRECT MARKETINGDirect marketing allows you to generate a response from targeted customers. As a result,

small businesses can focus their limited marketing resources where they are most likely to

get results. A direct marketing campaign with a clear call to action can help you boost

your sales to existing customers, increase customer loyalty, recapture old customers and

generate new business. Direct marketing can be evaluated and measured precisely. You

can analyses results to see which target group was most responsive. You can also test

your marketing with sample groups before you roll out the campaign that will deliver the

best response rate.

Whether you are targeting business (b2b) customers to consumers, direct marketing can

deliver results. Choosing the right communication method is vital. Businesses can be

more receptive to receiving sales calls than consumers, for example. Individuals will

prefer different ways of contact, so make sure you take account of their preferences.

1.3 GETTING THE MOST OUT OF YOUR DIRECT MARKETING CAMPAIGNYour database is at the heart of any good direct marketing strategy. It must be up to date

and accurate. Check your mailing lists regularly - remove duplicate entries, correct any

mistakes and, above all, delete names of people and businesses who have asked to be

removed. The information you hold on your database is marketing gold dust. It can tell

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you about your customers' buying habits and reveal other useful information such as age,

gender and location. You can use this data to divide your customers and prospects into

smaller groups and target them with special messages. You can build a profile of your

best customers and actively seek new contacts matching that description by buying or

renting new lists. Direct marketing works because it puts your message in front of people.

However, unsolicited letters, phone calls, faxes, emails and texts must only be sent to

people and businesses that have given permission to be contacted. The Data Protection

Act is complex and privacy laws are becoming tighter. It is your responsibility to check

that your direct marketing activities are within the law.

1.4 MEASURING THE RESULTS OF DIRECT MARKETINGWhereas it can be difficult to measure the effects of advertising or sponsorship, in

contrast, direct marketing is totally accountable. With any direct marketing campaign,

you can calculate a break-even point - the number of sales you need to make to cover the

cost of the marketing. In addition, you can work out the cost per response and the actual

return on investment. This simple analysis will enable you to tweak your campaigns in

order to improve your results. You can also identify those that are most responsive and

target them again in future.

http://www.marketingdonut.co.uk/marketing/direct-marketing

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http://pixshark.com/direct-marketing.htm

1.5 DIRECT MARKETING FUNDAMENTALSDirect marketing occurs when the “producer” connects with the end user. The end user

may be a consumer or a business. Direct marketing applies to product and service-

oriented businesses, and to nonprofit organizations. In all situations, there is no

intermediary involved. Direct marketing describes this interactive communication with

the end user. Direct marketing is not synonymous with mass marketing. The most

effective direct marketing takes place when there is a clear connection to reach the target

market. Organizations may use several ways to leverage direct marketing as they

communicate with and deliver products to their customers. This may include using a

direct sales force, catalogs, websites, email, direct mail, telemarketing, seminars, trade

shows, and other “one-to-one” techniques to communicate and sell to their customers and

clients.

Some of these direct marketing methods have grown dramatically, especially with the

growth of marketing over the Internet. There is evidence that other direct marketing

approaches have diminished, such as reports that the response to direct mail is often

below one percent compared to the five percent+ response rate numbers more commonly

experienced in the past.

1.6 THE MOST COMMON FORMS OF DIRECT MARKETING ARE:1. Internet marketing

2. Face-to-face selling

3. Direct mail

4. Catalogs

5. Telemarketing

6. Direct-response advertising

7. Kiosk marketing

8. Let’s look at these in more detail.

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1.6.1 INTERNET MARKETINGThe Internet has revolutionized direct marketing for promoting the sale of products and

services to targeted audiences. Access to the Internet provides users with services in four

basic areas:

Information

Entertainment

Shopping

Individual and group communication

Online channels can eliminate geographic considerations. With this capability people

around the world have the same access as the person across the street. Many businesses

that can sell their products and services through downloading, or who can economically

ship those products, have discovered an entirely new way to market. The Internet makes

direct marketing easier, more targeted, more flexible, more responsive, more affordable,

and potentially more profitable than ever. Virtually every business should seriously

consider the Internet as a part of their marketing mix and determine if it is a viable fit for

their direct marketing efforts.

1.6.2 FACE-TO-FACE SELLINGThe most traditional direct marketing involves the in-house sales force personally

contacting potential and established consumers. Examples of organizations that use face-

to-face selling include:

1. Mary Kay

2. Avon

3. Amway

1.6.3 DIRECT MAILDirect mail is described as sending information about a special offer, product or sale

announcement, service reminder, or some other type of communication to a person at a

particular street or electronic address. Historically direct mail has existed in the form of

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printed materials, but CDs, audio tapes, video tapes, fax mail, email, and voice mail are

also used in direct mail campaigns. For example, America Online experienced a highly

successful campaign through mailing out CD-ROMs to prospective customers. Direct

mail permits high target-market selectivity; it can be personalized, it is flexible, and it

allows early testing and response measurement to take place. A highly selective and

accurate mailing list often determines the success of direct mail efforts to enhance

response rates and control costs.

1.6.4 CATALOGSProduct catalogs are another version of direct mail where the catalogs are the

communication tool. The most common use of this approach involves featuring a variety

of products that target the needs of a specific audience who have shown a propensity to

order from catalogs. An increasing number of business-to-business marketers are sending

catalogs on CD-ROM to prospects and customers. The average U.S. household receives

more than 50 catalogs each year, ranging from general merchandise to specialty goods.

Examples of general merchandise catalogs are:

1. Spiegel

2. J.C. Penny

Examples of specialty goods catalogs are:

1. Pottery Barn

2. PC Connection

3. Telemarketing

The process of contacting people on a qualified list to sell services over the phone has

grown in popularity to the point that the average household receives 19 telemarketing

calls each year. Successful telemarketing campaigns depend on a good calling list, an

effective script and contact structure, and well-trained people that are compensated and

rewarded for making calls that result in sales. The telecommunications industry, for

example, has used telemarketing extensively to attempt to increase their market share.

This includes:

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1. AT&T

2. MCI WorldCom

3. Sprint

4. Direct-Response Advertising

Direct-response advertising is communicating with potential buyers through television,

radio, magazines, and newspapers. The prospective consumer watches, hears, or reads

about the product or service and initiates a call to a toll-free number to place their order.

Television, for example, offers a wide range of exposure, from a 30-second commercial

to a 60-minute infomercial.

1.6.5 KIOSK MARKETINGCustomer order machines, versus vending machines that actually provide products, are

another form of direct marketing. Examples are:

Eddie Bauer: Stores place computer terminals to order from the entire line of products not

available in the retail store.

Florsheim Shoe Company

Your bank’s automatic teller machines (ATMs) placed in convenient and high traffic

areas are another example of kiosk marketing. A combination of these direct marketing

techniques may offer the optimal revenue generating solution.

http://www.mplans.com/articles/direct-marketing-fundamentals/

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http://www.referenceforbusiness.com/encyclopedia/Dev-Eco/Direct-Marketing.html

1.7 STRATEGIES ADOPTED BY PUBLIC AND PRIVATE SECTOR BANKSIn financial services, people are primarily bothered about security of their funds and

default risks. After the year1969, the deposits of banks increased more than 80times as a

result of the nationalization of banks. Paul Cox, (2007) revealed a fact that financial

service providers are not perceived highly trusted, so that they might have difficulty in

selling risk-based products. 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

bank marketing are lack of management support, lack of inter-departmental cooperation,

crisis management, government intrusion and advertising & media problems(Berry &

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Lind green, 1980). Sarin & Anil (2007) recommended that manpower in service

organizations must work with the focus of satisfying the customer. Banking should bring

out the areas requiring improvement and which further throw light on the measures to

improve the quality of services. 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). In banking the temporal and spatial

dimensions are perceived as more important than traditional dimensions based on

outcome and process elements (Kristina Heinonen, 2006). Tokunbo Simbowale (2005)

examined the usage of marketing concepts & techniques and recommended that a well-

structured marketing department in banks is essential for profitability & effectiveness. 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 storyt elling

methodology using sequence of events (Sehgal Roli,2004). Location convenience, speed

of service, competence and friendliness of bank personnel are also the most important

points with maximum value in banking services (Laroche, & Manning, 1986).

Meidan(1976) revealed that about 90% of the respondents banked at the branch nearest to

their home place and place of work. Convenience, in terms of location, was also found to

be the single most important factor for selecting a branch. It has been generalized in the

studies that services marketing advertisement is more challenging than the advertising of

tangible products (Ray and Bose, 2006). Winning new customers costs10 times more than

simply holding onto existing ones. The case should be taken in the marketing of financial

services very seriously (Farrokhtakin, Stavash, 2000).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 (Kumar Ashok, 1991). With the same

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perspective, the prime objectives of the study are:(i)To know about the various

promotional tools of Private and Public sectors banks in India(ii)To make a comparative

analysis of customers ‘perception for promotional strategies of private and public sector

banks in India(iii)To find out the key promotional tools for banking services on the basis

of customers’ responses

1.8 DATA ANALYSIS AND INTERPRETATIONThe responses have been captured in a scale of 5 to1 from strongly agreed to strongly

disagree. Similarly in other questions ‘5’ is for very effective and ‘1’ is for not at all

Effective. Table 1 show that the promotional strategies of private and public sector banks

are almost similar. Both types of banks take the help of almost all type of media to

promote their services. The first objective of the study deals with the analysis of the

promotional strategies adopted by both. The analysis is done on the basis of review of

existing literature and with personal contact and informal interview with the personnel of

the private and public sector banks. The major difference in the promotional strategies

adopted by banks is in the two techniques of the promotion and they are “Personal

Selling” and “Direct Marketing”. The difference is that public sector banks do not adopt

the strategies of promotion as personal selling and direct marketing; on the other hand the

same are adopted by private sector banks. The reasons for this are higher liability and less

profit orientation of public sector banks. Public sector banks do not go for innovative

strategies of promotion, however they go for interactive marketing through internet but

that is not promoted so much like private sector banks. This has been demonstrated in

Table 2 that the respondents in the present study are mixed and are seem representative,

they include – farmers (19%), shopkeepers, students(31%), highly (23%) as well as low

educated (25%)persons. Table 3 states that the maximum respondents(48.33%) were

availing the services of Saving Accounts, which is followed by current account service

holders(28.33), only few are availing the service of fixed deposits(11%) and Loans (7%).

The loan takers also include the students in the form of education loans. Most of the

respondents answered that they were influenced by Friends and Relatives (42%) for

choosing the services from a particular bank. This is the power of “word of mouth”. This

shows that the impact of opinion leadership and reference group is very much in banking

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services however advertising (21%) also affects the decision of selecting a particular bank

(Table4). As per the responses given in Table 5, the difference between public and private

sector banks is known to the maximum number of people (85%). Table 6 gives a clear

idea about the question related to the perception of customers about private and public

sector banks the results are not so surprising. People think that the advertisements and

promotional efforts of private sector banks are more effective than public sector banks

with a weighted mean score 3.51 for 5. The respondents strongly agreed that Private

Sector Banks do more advertisement than Public Sector Banks (3.81). Further, one more

aspect, that is very important in the case of services and especially in financial services

i.e. truthfulness, and completeness in advertising. The respondents look agree with the

statement that the information provided by Public Sector Banks is more reliable than

private sector banks because that is truer and complete (3.62).This has been narrated in

Table 7 that private sector banks are slightly better in catching the awareness of people

than Public Sector Banks in mass media advertising. 69% respondents accepted that they

have exposure of advertising on television and 61% of advertising in newspapers in case

of private sector banks. However in the case of public sector banks it is 66% and 52%

respectively. Table 8 gives descriptive idea about the exposure of various promotions. In

outdoor advertising and online marketing, private sectors banks are again more successful

to spread awareness than public sector banks, but the total awareness level has stayed

low. In public sector banks21% of the respondents were accepted that they have an

exposure of outdoor advertising while the respondents for it in case of private sector

banks were28%. As online marketing is not so much adopted by public sector banks only

7% customers have the exposure of the same, while for private sectors banks the exposure

of respondents is 17%. Tele calling and personal selling did not show high exposure.

Almost26% people are exposed to tele calling. Another important aspect has been

discussed in Table 9. When customers were asked about the most effective tool for

promotion of banking services, very meaningful results have come. The most effective

tools in respondents’ opinion is advertising on television with weighted mean value 3.84

and advertising in newspapers was at second place (3.59). This is followed by personal

selling (3.43) and advertising in journals and magazines (3.26).Advertising on Television

11 Leadership Styles

has been given the first rank and Publicity (2.25) is given the last. However there is no so

significant variability in the factors if we move from one.

http://www.academia.edu/3672177/Comparative_Study_of_Promotional_Strategies_adopted_by_Public_and_Private_Sector_Banks_in_India

12 Leadership Styles

CHAPTER NO. 2

CASE STUDY

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2.1 INTRODUCTION

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CHAPTER NO. 3

SWOT ANALYSIS

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3.1 STRENGTHS

Direct marketing emphasizes track able, measurable responses, results and costs

from prospects and/or customers regardless of medium.

Direct marketing can be evaluated and measured precisely

Whether you are targeting business (b2b) customers to consumers, direct

marketing can deliver results.

3.2 WEAKNESSES

In financial services, people are primarily bothered about security of their funds

and default risks.

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.

3.3 OPPORTUNITIES

A direct marketing campaign with a clear call to action can help you boost your

sales to existing customers, increase customer loyalty, recapture old customers

and generate new business.

You can build a profile of your best customers and actively seek new contacts

matching that description by buying or renting new lists.

Direct marketing works because it puts your message in front of people.

3.3 THREATS

The Data Protection Act is complex and privacy laws are becoming tighter.

The most frustrating aspect of bank marketing are lack of management support,

lack of inter-departmental cooperation, crisis management, government intrusion

and advertising & media problem.

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CONCLUSION

Promotion has different aspects for different industries, products and services. Its final

goal is to communicate positive word of mouth among existing and potential

customers about the corporate, product and service. In banking the customers must be

ensured that services provided by a particular bank have been designed to give them

maximum value of their money. In brief, it can be said that in India wherever the

dilemma of private and public sector comes always two things are considered. Public

sector is more reliable but not so good in the quality and innovativeness. Private sector

is not considered so reliable, there may be hidden charges in the services and false and

misleading information in the advertising but they are better in the service quality.

Private sector banks must be more true and reliable first. They have to win the hearts

of the customers, after that they will be able to win minds as well. In traditional tools

of promotion both sectors’ banks are almost same. Private Sector banks are adopting

more push strategies to attract and catch the customers. This creates the difference

between promotional strategies adopted by Public and Private Sector Banks.

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RECOMMENDATION

Banking sector reforms have changed the traditional way of doing banking

business. Mainly technology is the outcome of banking reforms. Customer is now

the king and customer focus or satisfaction of customer is the main aim of the

banks. With the introduction of new products and services competition has grown

up among the banks. Only those banks will survive who face the competition with

the effective ways of marketing. Complete analysis of the present marketing

management strategy and the constraints of the business of the bank show that the

bank is not performing well in the student and rural segment of India. The

marketing mix and the branding strategy used by the bank are not targeting the

consumers belonging to the student and rural segment. These segments constitute a

huge population within India. Missing out such segments with huge potential is like

a missed opportunity

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