INTRODUCTION

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INTRODUCTION

This project money investment has been done under the guidance of Mr.
Sujit Venugopalan at Reliance Money. Mr. Sujit venugopalan is the center
head of reliance money.

Reliance Capital Ltd is a part of the Reliance - Anil Dhirubhai Ambani

Group.

Reliance Capital is one of India’s leading and fastest growing private sector
financial services companies, and ranks among the top 3 private sector
financial services and banking companies, in terms of net worth.

Reliance Capital has interests in asset management and mutual funds, life
and general insurance, private equity and proprietary investments, stock
broking and other activities in financial services.

Reliance capital is a umbrella company which has several branch of it self.

Reliance money is the part of Reliance Capital and Reliance Capital has many
other branches, which are these

Reliance mutual fund

Reliance life insurance
Reliance general insurance
Reliance money

Here reliance money contains several different products in it. Which are these:

Reliance money
 Equity
Commodity derivatives
 Offshore investment
 Mutual fund

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 IPO’s
 Life insurance
 General insurance
 Money transfer
 Money changing and credit cards

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Company Profile

Regarded as one of the foremost corporate leaders of contemporary India,

Anil Dhirubhai Ambani is the Chairman of all listed Group companies,
namely: Reliance Communications, Reliance Capital, Reliance Energy and
Reliance Natural Resources Limited

He is also Chairman of the Board of Governors of Dhirubhai Ambani

Institute of Information and Communication Technology, Gandhi Nagar,
Gujarat.

Till recently, he also held the post of Vice Chairman and Managing
Director in Reliance Industries Limited (RIL), India’s largest private sector
enterprise.

Anil D Ambani joined Reliance in 1983 as Co-Chief Executive Officer, and

was centrally involved in every aspect of the company’s management over the
next 22 years. He is credited with having pioneered a number of path-breaking
financial innovations in the Indian capital markets. He spearheaded the
country’s first forays into the overseas capital markets with international public
offerings of global depositary receipts, convertibles and bonds. Starting in
1991, he directed Reliance Industries in its efforts to rise over US$ 2 billion.
He also steered the 100-year Yankee bond issue for the company in January
1997.

He is a member of:
• Wharton Board of Overseers, the Wharton School, USA

• Central Advisory Committee, Central Electricity Regulatory

Commission

• Board of Governors, Indian Institute of Management,

Ahmedabad

• Board of Governors Indian Institute of Technology, Kanpur

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 In June 2004, he was elected for a six-year term as an independent member
of the Rajya Sabha, Upper House of India’s Parliament a position he chose to
resign voluntarily on March 25, 2006.

Awards and Achievements

• conferred the ‘CEO of the Year 2004’ in the Platt Global Energy
Awards.

• Rated as one of ‘India’s Most Admired CEOs’ for the sixth consecutive
year in the Business Barons – TNS Mode opinion poll, 2004.

• conferred ‘The Entrepreneur of the Decade Award’ by the Bombay

Management Association, October 2002.

• awarded the First Wharton Indian Alumni Award by the Wharton India
Economic Forum (WIEF) in recognition of his contribution to the
establishment of Reliance as a global leader in many of its business
areas, December 2001

Selected by Asia week magazine for its list of ‘Leaders of the Millennium
in Business and Finance’ and was introduced as the only ‘new hero’ in
Business and Finance from India, June 1999

Business Overview:

RCL is registered as a depository participant with National Securities

Depository Ltd (NSDL) and Central Depository Services Ltd (CDSL) under the
Securities and Exchange Board of India (Depositories and Participants)
Regulations, 1996. RCL has sponsored the Reliance Mutual Fund within the
framework of the Securities and Exchange Board of India (Mutual Fund)
Regulations, 1996.RCL primarily focuses on funding projects in the

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infrastructure sector and supports the growth of its subsidiary companies,
Reliance Capital Asset Management Limited, Reliance Capital Trustee Co.
Limited, Reliance General Insurance Company Limited and Reliance Life
Insurance Company Limited. As of March 31, 2005, the company’s investment
in infrastructure projects stood at Rs. 1071 Crores. The investment portfolio of
RCL is structured in a way that realizes the highest post-tax return on its
investments.

Board of Directors:

• Amitabh Jhunjhunwala, Vice-Chairman

• Rajendra Chitale, Independent Director

• Shri C. P. Jain, former Chairman and Managing Director, NTPC

Equity

Equity is a share in the ownership of a company. It represents a claim on

the company's assets and earnings. As you acquire more stock, your ownership
stake in the company increases. The terms share; equity and stock mean the
same thing and can be use interchangeably. Holding a company’s stock means
that you are one of the many owners (shareholders) of a company, and, as such,
you have a claim (to the extent of your holding) to everything the company
owns. Yes, this means that technically, you own a portion of every piece of
furniture; every trademark; every contract, etc. of the company. As an owner,
you are entitled to your share of the company’s earnings as well as any voting
rights attached to the stock.

Another extremely important feature of equity is its limited liability, which

means that, as a part owner of the company, you are not personally liable if the
company is not able to pay its debts. In case of other entities such as

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partnerships, if the partnership goes bankrupt, the partners are personally liable
towards the creditors/lenders and they may have to sell off their personal assets
like their house, car, furniture, etc., to make good the loss. In case of holding
equity shares, the maximum value you can lose is the value of your investment.

Even if a company of which you are a shareholder goes bankrupt, you can
never lose your personal assets.

SOURCES OF STOCK INFORMATION

Any financial educator will tell you about the importance of the well-
informed investor. Investment in equity needs proper study and research before
putting your money on the line. There are various methods and strategies one
can adopt while investing in equity.

There are broadly two kinds of risks associated with investing in equity:
Systemic risks & Non-systemic risks. Once you have made your investment in
shares of the companies you have selected, you cannot afford to simply forget
about your investments. Once you sell your shareholding, you should compute
the returns you have earned on your investment.

IPO

When an unlisted company makes either a fresh issue of securities or an

offer for sale of its existing securities or both for the first time to the public.
This paves way for listing and trading of the issuers securities.

MUTUAL FUNDS

What is it about investing that irks you most? Is it the fact that it is time-
consuming since it involves researching the market for investment products and
then proceeding with the paperwork involved?

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 Or could it be that once you have made your investments, you cannot find
the time to monitor them? Like most of us, do you dread a situation wherein
you need your money all of a sudden and have no access to it or have to run
from pillar to post to get it back? Do you sometimes hesitate to invest because
you are unsure about how well regulated investment products are? Is your
approach to investing constrained by the fact that you possess limited
investment capital, which does not allow you to achieve the diversity that you
desire?

If these are some of the reasons that make you feel disinclined to undertake
an investment exercise, consider mutual funds. This investment vehicle
successfully addresses the above concerns and offers other benefits too. Lets
take a look at what exactly a mutual fund is and how it functions.

A mutual fund is an entity, which offers a number of investment schemes

with different investment objectives. An investor interested in investing in
these schemes needs to assess which scheme has an investment objective that
matches his, to make his selection from among the available schemes.

Mutual funds are well-structured and closely-regulated entities, which hire

investment professionals to invest and manage investor’s funds.

Mutual funds issue units to each investor based on the amount invested.
Units of mutual funds are similar to shares issued by companies. For instance,
if an investor invests Rs 5,000 in a new scheme of a mutual fund, which is
offering units at Rs 10 per unit, he will receive 500 units in the scheme (Rs
5,000 / Rs 10).

The mutual fund invests the money collected from unit-holders on their
behalf. Income earned on these investments is distributed by the mutual fund
among its investors in proportion to their holding in the scheme. For instance,
taking the above example forward, if the scheme issues a total of 1 lakh units
and earns a total income of Rs 1 lakh in a particular period, it would have
earned Re 1 per unit issued (Rs 1 lakh / 1 lakh units). The investor, who had

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applied for 500 units, will be entitled to receive Rs 500 (income earned per unit
Re 1 x 500 units).

Choice of investment strategies

From just two scheme types (equity scheme and debt scheme) offered when
the mutual fund industry was conceived more than four decades ago, today,
mutual funds offer a plethora of scheme types with different investment
strategies. Consider equity schemes. From just one scheme type, there are,
today, more than 10 types of schemes, each offering a unique investment
strategy. For instance, an index fund invests in stocks forming a stock market
index such as the BSE Sensex or NSE Nifty in order to make gains equivalent
to appreciation in the index. A sector fund invests in securities of companies
belonging to a specific sector (banking, IT, pharmacy, etc.) in order to make
gains when the sector is prospering.

Similarly, in case of debt schemes, from just a single debt scheme-type,

presently, there are more than 6 scheme types. Each debt scheme focuses on
specific debt securities with specified tenures. For instance, a long-term gilt
scheme will invest in government securities with long tenures (exceeding 7-8
years) while a short-term floating rate fund will invest in debt securities with
short tenures (1-3 years) whose coupon rates are reset at regular intervals
depending on change in prevailing interest rates.

In addition, there are schemes, which combine debt and equity to adopt
different investment strategies (balanced funds, MIPs, etc.). There are also
schemes, which invest in other mutual fund schemes (called Fund of Funds).

In other words, mutual funds have been able to envisage different

investment strategies that can be adopted by investors, and have created
scheme types to cater to each of these strategies.

Reliance mutual funds

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 1.Equity/Growth Schemes ---- Reliance Equity Advantage, Reliance
Equity Fund, Reliance Tax Saver (ELSS) Fund, Reliance Growth Fund,
Reliance Vision Fund, Reliance Equity Opportunities Fund, Reliance Index
Fund, NRI Equity Fund, Reliance Long Term Equity Fund, Reliance
Regular Savings Fund.

The aim of growth funds is to provide capital appreciation over the medium
to long- term. Such schemes normally invest a major part of their corpus in
equities. Such funds have comparatively high risks. These schemes provide
different options to the investors like dividend option, capital appreciation, etc.
and the investors may choose an option depending on their preferences. The
investors must indicate the option in the application form. The mutual funds
also allow the investors to change the options at a later date. Growth schemes
are good for investors having a long-term outlook seeking appreciation over a
period of time.

2.Debt/Income Schemes ---- Reliance Interval Fund, Reliance Fixed

Horizon Fund – III, Reliance Liquid Plus Fund, Reliance NRI Income Fund,
Reliance Income Fund, Reliance Fixed Tenor Fund, Reliance Floating Rate
Fund, Reliance Gilt Securities Fund, Reliance Liquid Fund, Reliance
Monthly Income Plan, Reliance Medium Term Fund, Reliance Short Term
Fund, Reliance Liquidity Fund, Reliance Fixed Horizon Fund, Plan C
Reliance Fixed Horizon fund I (Annual Plan), Reliance Fixed Horizon fund
II (Annual Plan).

The aim of income funds is to provide regular and steady income to

investors. Such schemes generally invest in fixed income securities such as
bonds, corporate debentures, Government securities and money market
instruments. Such funds are less risky compared to equity schemes. These
funds are not affected because of fluctuations in equity markets. However,
opportunities of capital appreciation are also limited in such funds. The NAVs

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of such funds are affected because of change in interest rates in the country. If
the interest rates fall, NAVs of such funds are likely to increase in the short run
and vice versa. However, long-term investors may not bother about these
fluctuations.

3. Sector Specific Schemes ---- Reliance Banking Fund, Reliance Pharmacy

Fund, Reliance Diversified Power Sector Fund, Reliance Media &
Entertainment Fund.

These are the funds/schemes, which invest in the securities of only those
sectors or industries as specified in the offer documents. e.g. Pharmaceuticals,
Software, Fast Moving Consumer Goods (FMCG), Petroleum stocks, etc. The
returns in these funds are dependent on the performance of the respective
sectors/industries. While these funds may give higher returns, they are more
risky compared to diversified funds. Investors need to keep a watch on the
performance of those sectors/industries and must exit at an appropriate time.
They may also seek advice of an expert.

DERIVATIES

Derivative products have been around for a long, long time. In fact, as early
as the 1650s, dealings resembling present day derivative market transactions
were seen in rice markets in Osaka, Japan.

The first leap towards an organized derivatives market came in 1848, when
the Chicago Board of Trade (CBOT), the largest derivative exchange in the
world, was established.

Today, equity and commodity derivative markets are rapidly gaining in size
in India. In terms of popularity too, these markets are catching on like a forest
fire. So, what are these markets all about? What are the products that they trade
in? Why do people feel the need to trade in such products and what sort of

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traders benefit from such trades? Do these markets hold scope for retail
investors too? And if so, how exactly can you go about trading in them?

What are derivatives?

Derivatives, as the name suggests, are financial instruments that derive their
value from an underlying security or asset. The underlying could be equity
shares or an index, a commodity, a currency or the exchange rate, bonds, etc.
Sounds

Complicated? In a way, it is. But once you are clear about how a derivative
product derives its value from an underlying asset and yet has a price and an
identity of its own, it will become just another financial product to you. Then
again, derivative products have more variants than any other financial products
since they have been created to meet a variety of niche needs.

Here a little story about a sugarcane contract. There is a farmer who will be
harvesting a crop of sugarcane three months down the line. As he is uncertain
about how high or low the price of sugarcane will be then, he decides to
negotiate a price with his purchase agent right now. They fix a price per
quintal, which is suitable to both of them and ink it into a contract that specifies
how much the farmer will supply, on what date and at what price.

Now, suppose after one month, the purchase agent decides that he does not
want to be a counter party to this contract anymore; he may find another agent
who is ready to relieve him of the contract. However, if the price of sugarcane
has already begun to fall in the market, the second agent may not be one
hundred percent comfortable with the terms printed in the contract. He may
feel that the contracted price is too high. So, to compensate him, the first agent
may pay him the difference between the original contracted price and the price
that he feels is right.

If you can imagine that this contract can be traded over and over again,
between agents or any intermediaries, replicating the transaction described

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above, until its expiry date, you have envisaged a derivative product. You have
understood how the value of the contract depends upon the price of sugarcane
but the actual price that the contract commands could keep changing every time
it changes hands, for a variety of other reasons too.

There are various derivative products, which derive their value from equity
shares or an index, a commodity, a currency or the exchange rate, bonds, etc.
These derivative products vary according to their structure and terms and
conditions. The most popular derivative products are Forwards, Futures,
Options, Warrants and Swaps. Some of these are short term in nature while
others are long term. For example stock and index options that can be traded on
stock exchanges are short term in nature, while options like warrants and rights
have a longer term.

Financial Derivatives

Derivative products have been around for a long, long time. In fact, as early
as the 1650s, dealings resembling present day derivative market transactions
were seen in rice markets in Osaka, Japan. The first leap towards an organized
derivatives market came in 1848, when the Chicago Board of Trade (CBOT),
the largest derivative exchange in the world, was established.

Today, equity and commodity derivative markets are rapidly gaining in size
in India. In terms of popularity too, these markets are catching on like a forest
fire. So, what are these markets all about? What are the products that they trade
in? Why do people feel the need to trade in such products and what sort of
traders benefit from such trades? Do these markets hold scope for retail
investors too? And if so, how exactly can you go about trading in them?

Types of Derivatives

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The most popular derivative products are Forwards, Futures, Options, Warrants
and Swaps. These are discussed below:

• Forwards
A forward contract or forward is an agreement between two parties, wherein
one will sell an asset to the other on a certain future date at an agreed price.

• Futures
Futures contracts or futures are an improvement over forward contracts as they
are standardized and tradable.

• Options
An option is a contract where the writer of the option grants the buyer of the
option the right to purchase.

• Warrants
A warrant is a call option, which gives you the right (but you are not obliged)
to buy a predetermined number of equity shares within a stipulated time frame
at an agreed price.

• Swaps
A swap is an agreement between two parties to exchange their cash flow
streams, without liquidating the asset that generates those flows.

COMMODITY

Commodities mean rice, wheat, sugar, gold etc. And did you know that you
could trade these commodities without owning a piece of the commodity you
trade in.
Commodities, which you have been eating or using all this years or
donning it as a fashion accessory or even running you car with, can be now

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traded on the Indian exchanges. It has always been traded in the Global
exchanges, now it is your turn to experience the power of commodities.

Commodity - Tutorials

Brief Introduction & Importance of Agricultural Commodities

Currently, it is largely the agricultural commodities, which are traded on

the existing commodity derivatives markets in India. Agriculture is a key sector
in the Indian economy. But the share of non-agricultural commodities, like
metals particularly bullion - in the basket of commodities traded at the Indian
commodity derivatives markets, has a potential to grow rapidly in the near
future, Even though the share of agriculture in the Gross Domestic Product is
declining and estimated to be around 23 per cent, it has backward and forward
linkages with other sectors.

Commodity - Trading Strategies

1. Derivative Strategy

This is the simplest strategy and involves a directional trade. There are only
two options:
• Buying (Going Long) to profit from an expected price increase:

Someone expecting the price of a particular commodity or item to increase

over a given period of time can seek to profit by buying futures contracts. If
correct in forecasting the direction and timing of the price change, the futures

Contract can later be sold for the higher price, thereby yielding a profit. If the
price declines rather than increases, the trade will result in a loss. Because of
leverage, the gain or loss may be greater than the initial margin deposit.

For example, assume it's now January, the July soybean futures contract is
presently quoted at Rs 1300 per quintal, and over the coming months you
expect the price to increase. You decide to deposit the required initial margin

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of, say, Rs. 13,000 and buy one July soybean futures contract. Further assume
that by April the July soybean futures price has risen to Rs.1340 per quintal and
you decide to take your profit by selling. Since each contract is for 10 metric
tones (1 MT = 100 quintals), your Rs. 40 per quintal profit would come out to
be 100 x 40 = Rs. 4000.

• Selling (Going Short) to profit from an expected price decline:

However, someone expecting the price of a particular commodity to fall

would do just the opposite, though the concept is almost identical. The only
way going short to profit from an expected price decline differs from going
long to profit from an expected price increase is the sequence of the trades.
Instead of first buying a futures contract, you first sell a futures contract. If, as
expected, the price declines, a profit can be realized by later purchasing an
offsetting futures contract at the lower price. The gain per unit will be the
amount by which the purchase price is below the earlier selling price.

For example, assume that in January your research or other available

information indicates a probable decrease in prices of Urad over the next
several months. In the hope of profiting, you deposit an initial margin of say
Rs. 30,000 and sell one April Urad futures contract at a price of, Rs. 3000 per
quintal. Each contract is for 10 MT (10 MT = 100 quintals), meaning each 1
rupee per quintal change in the price of Urad will increase or decrease the value
of the futures contract by Rs. 100. If, by March, the price has declined to Rs.
2850 per quintal, an offsetting futures contract can be purchased at Rs 150 per
quintal below the original selling price. On the 100-quintal (10MT) contract,
that's a gain of 150 x 100. Or Rs 15,000.

2. Spread Strategy

While most speculative futures transactions involve a simple purchase of

futures contracts to profit from an expected price increase--or an equally simple

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sale to profit from an expected price decrease--numerous other possible
strategies exist. Spreads are one example. A spread, at least in its simplest
form, involves buying one futures contract and selling another futures contract.
The purpose is to profit from an expected change in the relationship between
the purchase price of one and the selling price of the other.

As an illustration, assume it's now November, that the March soybean

futures price is presently Rs 1200 per quintal and the May soybean futures
price is presently at Rs. 1250 per quintal, a difference of Rs. 50 per quintal.
Your analysis of market conditions indicates that, over the next few months,
the price difference between the two contracts will widen to become greater
than Rs. 50. To profit if you are right, you could sell the March futures contract
(the lower priced contract) and buy the May futures contract (the higher priced
contract).

Commodity - Margins

Basics & Importance of Margins

An important aspect of futures trading, a must read before trading the

futures market. Unlike in the case of spot markets where the buyer pays the
entire purchase price in one go, in the futures markets only a partial or token
amount is to be paid upfront for taking a position. This money is taken by the
broker as mandated by the exchanges and the FMC to safeguard against
defaults caused by sudden abrupt movements in the prices of the underlying
commodity.

For example if the price of Gold is Rs. 10,000 per 10gms and the contract
size (or lot size) is 1kg of gold, the total rupee amount of the contract is
10,000x1000/10 = Rs.10 lakhs (This is merely the cost of 1kg of gold).

Whereas a physical market buyer would have to pay the entire sum of Rs.
10 lakhs upfront, a buyer of a futures contract of 1kg Gold only has to pay a

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margin of 10 per cent or so (These are constantly subject to change by the
exchanges and brokers). Assuming a margin of 10 per cent, the buyer of a 1kg
Gold futures contract only has to pay a sum of Rs. 1 lakh as margin to control a
position of 1kg of Gold. He is thus leveraged ten-fold. Though he has paid only
one tenth the cost of the 1 kg gold, he is entitled to all the profits arising from
the price changes of 1 kg of gold. His returns are therefore ten-fold what a
physical buyer would obtain.
As a trader in the commodity futures markets, one should know about the
following types of margins:

Initial Margin: This is the amount of money deposited by both buyers and
sellers of commodity futures contracts to ensure the performance of trades
executed. Initial margin is payable on all open position at any point in time, and
is payable upfront by the members/brokers in accordance with the margin
computation mechanism.

Maintenance Margin: A trader is entitled to withdraw any balance in the

margin account in excess of the initial margin. To ensure that the balance in the
margin account never becomes negative, a maintenance margin, which is
somewhat lower than the initial margin, is set. The trader is not allowed to
withdraw any amount, which causes the margin account to fall below the
maintenance margin.

Delivery Margin

Additional Margin In case of sudden higher than expected volatility, the

exchange calls for an additional margin, which is a preemptive move to prevent
breakdown. This is imposed when the exchange fears the market have become
too volatile and may result in payments crisis, etc.

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RELIANCE LIFE INSURANCE

Reliance Life Insurance is an associate company of Reliance Capital Ltd.,

which along with its associates has acquired 100% shares in AMP Sanmar Life
Insurance Co Ltd.
Reliance Life Insurance has a pan presence and a range of products catering
to individual as well as corporate needs. A total of 16 products covering
savings, protection & investment requirements.

Reliance Life Insurance would strive hard to achieve the following goals:-
1. Emerge as transnational Life Insurer of global scale and standard.

2. Achieve impeccable reputation and credentials through best business

practices.

Vision:

Empowering everyone live their dreams.

Mission:

Create unmatched value for everyone through dependable, effective,

Transparent and profitable life insurance and pension plans.
Guiding Principles:
Customer Care and Satisfaction,
Corporate Governance,
Creativity and Innovation,
Competitiveness.

RELIANCE GENERAL INSURANCE

Reliance General Insurance, a Subsidiary of Reliance Capital, is one of the

first non-life companies to get the license from the IRDA. RGICL offers an
exhaustive range of insurance products that covers most risks including
Property, Marine, Casualty and Liability.

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Vision

To be an insurer of World Standards and the most preferred choice for

clientele at the domestic and global level.

Mission

Our Mission is to keep the customer satisfaction as focal point of all our
operations, adopt the best international practices in underwriting, claims and
customer service, be the most innovative in product development, establishes
presence all over India, ensure sustained value addition to all stake holders and
to uphold Corporate Value & Corporate Governance.

Objectives

1. Make affordable insurance accessible to all.

2. Keep customer as focal point for all operations.
3. Protect policy holder’s interests.
4. Adopt best international practices in claims, underwriting and policy
servicing.
5. Be the most innovative in product development.

DEMAT ACCOUNT

If yes, this is what you need to do.

First, open a demat account.
Let's tackle a few questions that come to mind.

What's the difference between a depository and a depository participant?

A depository is a place where the stocks of investors are held in electronic

form. The depository has agents who are called depository participants (DPs).

Think of it like a bank. The head office where all the technology rests and
details of all accounts held is like the depository. And the DPs are the branches
that cater to individuals.

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 There are only two depositories in India -- the National Securities
Depository Ltd (NSDL) and the Central Depository Services Ltd (CDSL).
There are over a 100 DPs.

What's a demat account?

Demat refers to a dematerialized account.

Just as you have to open an account with a bank if you want to save your
money, make cheque payments etc, you need to open a demat account if you
want to buy or sell stocks. So it is just like a bank account where actual money
is replaced by shares.

You have to approach the DPs (remember, they are like bank branches), to
open your demat account. Let's say your portfolio of shares looks like this: 40
of Infosys, 25 of Wipro, 45 of HLL and 100 of ACC. All these will show in
your demat account.

So you don't have to possess any physical certificates showing that you
own these shares. They are all held electronically in your account. As you buy
and sell the shares, they are adjusted in your account. Just like a bank passbook
or statement, the DP will provide you with periodic statements of holdings and
transactions.
Is a demat account a must?

Nowadays, practically all trades have to be settled in dematerialized form.

Although the market regulator, the Securities and Exchange Board of
India (SEBI), has allowed trades of up to 500 shares to be settled in physical
form, nobody wants physical shares any more.
So a demat account is a must for trading and investing.

Where do I begin?

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 • Look for a DP to have an account with

Most banks are also DP participants, as are many brokers.

You can choose your very own DP. To get a list, visit the NSDL and CDSL
websites and see who the registered DPs are. A broker is separate from a DP. A
broker is a member of the stock exchange, who buys and sells shares on his
behalf and on behalf of his clients.

A DP will just give you an account to hold those shares. You do not have to
take the same DP that your broker takes. You can choose your own. But many
brokers offer special incentives in the form of lower charges for opening demat
accounts with their DPs.

• Get your documents in place

Once you approach your DP, you will be guided through the formalities of
opening an account. You must fill up an account opening form and sign an
agreement with your DP.

The DP will ask for some documents as proof of your identity and address.
Check with them what they require. For instance, some may accept a driver's
license, others may not. Here is a broad list (you won't need all of them
though):
1. PAN card
2.Voter's ID
3.Passport
4.Ration card
5.Driver's license
6.Photo credit card
7.Employee ID card
8.Bank attestation
9.IT returns

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10.Electricity/ Landline phone bill

While they only ask for photocopies of the documents, they will need the
originals for verification. You will have to submit a passport size photograph
on which you sign across.

• How many shares you need to have to open an account

When opening an account with a bank, you need a minimum balance. Not
so with a demat account. A demat account can be opened with no balance of
shares. And there is no minimum balance to be maintained either. You can
have a zero balance in your account.

• what will it cost?

The charges for account opening, annual account maintenance fees and
transaction charges vary between DPs. To get a comparative idea, visit the
websites of NSDL and CDSL.

• Can I nominate?
Sure. You can nominate whoever you like by filling up the nomination
details in the account opening form.
This is to enable the nominee to receive the securities after the death of the
holder of the demat account.

All set?

When you open an account, the DP will allot a unique BO ID (Beneficial

Owner Identification) Number, which you need to quote for all future
transactions.
If you want to sell your shares, you need to place an order with your broker and
give a 'Delivery Instruction' to your DP.
The DP will debit your account with the number of shares sold. You will
receive the payment from your broker.

23
If you want to buy shares, inform your broker about your Depository Account
Number, so that the shares bought are credited into your account.

24
OBJECTIVE AND RATIONAL OF
THE PROJECT

25
 OBJECTIVE AND RATIONALE OF THE PROJECT

OBJECTIVE

The primary objective of the project “Money Investment” is to find out

the money investment criterion of public through understanding the
marketing planning, consumer behavior, direct sealing, market segmentation,
and marketing communication.

So that the company can came to know about the psychology of the
general people that while making the decision for investment of money which
factors are considered by the people and also the age factor of the people that
effects the decisions of the investment of money. This project helps us in
coming to know about the no of people that how many people invest in which
financial field.

This objective also helps in coming to know the customer satisfaction of

their field of investment that how much they are satisfied of the facilities
which are provide to them.

.RATIONALE OF THE PROJECT

Each project has the objective because with out objective every project is
worth less and uncompleted. The fundamental reason and the logical basis,
which are known as rationale of the project, which makes the project complete.
These fundamental reason makes the basis of the project thereby this project
also has the fundamental reason called rationale of the project
.
The rational of this project are problems, which are being faced by the
company in increasing the sale of the project and the less awareness about the
market, which is totally new for the company. These problems were being
faced by the company because the company has passed only few months in
jaipur Rajasthan.

26
Here this project has few fundamental reasons for the project

1. Investment criterion of people

2. Sales increase

3. Existence in market

4. Less awareness about the market

5. Risk from the competitors

6 To find out the causes which affects the financial market?

7. Product differentiation

8. To find out new areas

9. Less awareness about the company in market

10. Advertisement

11. To get over the investment mistakes that is done by investors

27
REVIEW OF LITRATURE

28
 REVIEW OF LITRETURE

INTRODUCTION & BODY

INTRODUCTION; - This project money investment is based on the

investment habits of the people so in this project to find out the investment
habits and to find out the mistakes what they do in investment we have to learn
consumer behavior, buying behavior.
Along with this for the completion of this project we have to go through the
this topics:
Marketing Management
Market Segmentation
Marketing Communication
Direct sales
Marketing Strategies
Marketing Planning

BODY:-For the given objective In the project I went through and reviewed this
literature that includes the given topics.

MARKETING

Marketing is one of the most important functions in business. It is the

discipline required to understand customers' needs and the benefits they seek.
Academia does not have one commonly agreed upon definition. Even after a
better part of a century the debate continues. In a nutshell it consists of the
social and managerial processes by which products (goods or services) and
value are exchanged in order to fulfill the needs and wants of individuals or
groups. Although many people seem to think that "marketing" and
"advertising" are synonymous, they are not. Advertising is simply one of the
many processes that together constitute marketing.

29
 A market-focused, or customer-focused, organization first determines what
its potential customer’s desire, and then builds the product or service.
Marketing theory and practice is justified in the belief that customers use a
product/service because they have a need, or because a product/service has a
perceived benefit.

Two major factors of marketing are the recruitment of new customers

(acquisition) and the retention and expansion of relationships with existing
customers (base management).

For a marketing plan to be successful, the mix of the four "Ps" must reflect
the wants and desires of the consumers in the target market. Trying to convince
a market segment to buy something they don't want is extremely expensive and
seldom successful.

Within most organizations, the activities encompassed by the marketing

function are led by a Vice President or Director of Marketing. A growing
number of organizations, especially large US companies, have a Chief
Marketing Officer position, reporting to the Chief Executive Officer. The
American Marketing Association (AMA) states, “Marketing is the process of
planning and executing the conception, pricing, promotion, and distribution of
ideas, goods, and services to create exchanges that satisfy individual and
organizational objectives".

7Ps of marketing
Product

Prising

Promotion

Placement

People

Process

Physical evidences

30
Marketing management

This project money investment, which is on marketing management.

Marketing management is a business discipline focused on the practical
application of marketing techniques and the management of a firm's marketing
resources and activities. Marketing managers are often responsible for
influencing the level, timing, and composition of customer demand in a manner
that will achieve the company's objectives.

There is no universally accepted definition of the term. In part, this is due to

the fact that the role of a marketing manager can vary significantly based on a
business' size, corporate culture, and industry context. For example, in a large
consumer products company, the marketing manager may act as the overall
general manager of his or her assigned product category or brand with full
profit & loss responsibility. In contrast, a small law firm may have no
marketing personnel at all, requiring the firm's partners to make marketing
management decisions on a largely ad-hoc basis.But we can define marketing
management as "the art and science of choosing target markets and getting,
keeping and growing customers through creating, delivering, and
communicating superior customer value."

Activities and functions

Marketing management therefore encompasses a wide variety of functions

and activities, although the marketing department itself may be responsible for
only a subset of these. Regardless of the organizational unit of the firm
responsible for managing them, marketing management functions and activities
include the following

1. Marketing research and analysis.

2. Marketing strategy.

3. Implementation planning.

31
 4. Project, process, and vendor management.

5. Organizational management and leadership.

6. Reporting, measurement and control systems.

MARKETING PLANING

A marketing plan is a written document that details the actions necessary to

achieve one or more marketing objectives. It can be for a product or service, a
brand, or a product line. It can cover one year (referred to as an annual
marketing plan), or cover up to 5 (sometimes referred to as five) years.

A marketing plan may be part of an overall business plan. Solid marketing

strategy is the foundation of a well-written marketing plan. While a marketing
plan contains a list of actions, a marketing plan without a sound strategic
foundation is of little use.

The marketing planning process

In most organizations, "strategic planning" is an annual process, typically

covering just the year ahead. Occasionally, a few organizations may look at a
practical plan which stretches three or more years ahead.

To be most effective, the plan has to be formalized, usually in written form, as

a formal `marketing plan'. The essence of the process is that it moves from the
general to the specific; from the overall objectives of the organization down to
the individual action plan for a part of one marketing programmer. It is also an
iterative process, so that the draft output of each stage is checked to see what
impact it has on the earlier stages - and is amended accordingly.

Corporate mission
Behind the corporate objectives, which in themselves offer the main
context for the marketing plan, will lie the 'corporate mission'; which in turn
provides the context for these corporate objectives. This `corporate mission'

32
can be thought of as a definition of what the organization is; of what it does:
'Our business is …'.

This definition should not be too narrow, or it will constrict the development of
the organization; a too rigorous concentration on the view that `We are in the
business of making meat-scales', as IBM was during the early 1900s, might
have limited its subsequent development into other areas

Corporate vision

Perhaps the most important factor in successful marketing is the `corporate

vision'. Surprisingly, it is largely neglected by marketing textbooks;
although not by the popular exponents of corporate strategy - indeed, it
was perhaps the main theme of the book by Peters and Waterman, in the
form of their `Super ordinate goals. Theodore Leavitt said: "Nothing
drives progress like the imagination. The idea precedes the deed."
Marketing audit

The first formal step in the marketing planning process is that of conducting the
marketing audit. Ideally, at the time of producing the marketing plan, this
should only involve bringing together the source material which has already
been collected throughout the year - as part of the normal work of the
marketing departments.

The emphasis at this stage is on obtaining a complete and accurate picture.

In a single organization, however, it is likely that only a few aspects will be
sufficiently important to have any significant impact on the marketing plan; but
all may need to be reviewed to determine just which 'are' the few.

In this context some factors related to the customer, who should be included in
the material collected for the audit, may be:

• Who are the customers?

• What are their key characteristics?
• What differentiates them from other members of the population?

33
 • What are their needs and wants?
• What do they expect the `product' to do?
• What are their special requirements and perceptions?
• What do they think of the organization and its products or services?
• What are their attitudes?
• What are their buying intentions?

Analysis

The analysis of this material will, no doubt, require significant effort. In

the first instance it is a matter of selection, of sorting the wheat from the chaff.
What is important, and will need to be taken into account in the marketing plan
that will eventually emerge from the overall process, will be different for each
product or service in each situation. One of the most important skills to be
learned in marketing is that of being able to concentrate on just what is
important

Marketing objectives

It is only at this stage (of deciding the marketing objectives) that the active
part of the marketing planning process begins'.

This next stage in marketing planning is indeed the key to the whole
marketing process. The marketing objectives state just where the company
intends to be; at some specific time in the future. James Quinn succinctly
defined objectives in general as: "Goals (or objectives) state 'what' is to be
achieved and 'when' results are to be accomplished, but they do not state 'how'
the results are to be achieved".

They typically relate to what products (or services) will be where in what
markets (and must be realistically based on customer behaviour in those
markets). They are essentially about the match between those 'products' and
'markets'. Objectives for pricing, distribution, advertising and so on are at a

34
lower level, and should not be confused with marketing objectives. They are
part of the marketing strategy needed to achieve marketing objectives.

To be most effective, objectives should be capable of measurement and

therefore 'quantifiable'. This measurement may be in terms of sales volume,
money value, market share, percentage penetration of distribution outlets and
so on. An example of such a measurable marketing objective might be `to enter
the market with product Y and capture 10 per cent of the market by value
within one year'. As it is quantified it can, within limits, be unequivocally
monitored; and corrective action taken as necessary

Emergent strategy

In this case, the intended strategy decided upon traditionally or

incrementally, is overtaken by events in two main ways. One, which will
probably be recognized by the organization, is that of unrealized strategy;
where it proves impossible to implement the chosen strategy in practice.

Less obvious is the emergent strategy which is decided by events in the

external environment; and, thus, forced upon the organization. This may not
necessarily be recognized, in its totality, by the organization - since many of its
implications may be hidden. As markets become more complex, however, such
emergent strategies are becoming more common.

Marketing strategies

There are numerous definitions of what strategy is, but again James Quinn
gave a succinct general definition: "A strategy is a 'pattern' or 'plan' that
'integrates' an organization's 'major' goals, policies and action sequences into a
'cohesive' whole"

35
 He went on to explain his view of the role of `policies', with which strategy
is most often confused: "Policies are rules or guidelines that express the 'limits'
within which action should occur.

Performance analysis

The most important elements of marketing performance, which are normally

tracked, are:

Sales analysis

Most organizations track their sales results; or, in non-profit organizations

for example, the number of clients. The more sophisticated track them in terms
of 'sales variance' - the deviation from the target figures - which allows a more
immediate picture of deviations to become evident. `Micro- analysis', which is
a nicely pseudo-scientific term for the normal management process of
investigating detailed problems, then investigates the individual elements
(individual products, sales territories, customers and so on) which are failing to
meet targets.

Market share analysis

Relatively few organizations, however, track market share. In some

circumstances this may well be a much more important measure. Sales may
still be

increasing, in an expanding market, while share is actually decreasing - boding

ill for future sales when the market eventually starts to drop. Where such
market share is tracked, there may be a number of aspects which will be
followed:

• Overall market share

36
 • Segment share - that in the specific, targeted segment

• Relative share -in relation to the market leaders

Use of Marketing Plans

A formal, written marketing plan is essential; in that it provides an

unambiguous reference point for activities throughout the planning period.
However, perhaps the most important benefit of these plans is the planning
process itself. This typically offers a unique opportunity, a forum, for
`information-rich' and productively focused discussions between the various
managers involved. The plan, together with the associated discussions, then
provides an agreed context for their subsequent management activities, even
for those not described in the plan itself.

Sales

A sale is the act of meeting prospective buyers and providing them with a
product or service in turn of money or other required compensation. A sale is
an act of completion of a commercial activity. The "deal is closed", means the
customer has consented to the proposed product or service by making full or
partial payment (as in case of installments) to the seller.

Selling is a practical implementation and part of marketing. It often forms a

separate grouping in a corporate structure, employing separate specialist
operatives known as salespersons (singular: salesperson). A sale is considered
by many to be a sort of persuading "art". Contrary to popular belief, the
methodological approach of selling refers to a systematic process of repetitive
and measurable milestones, by which a salesperson relates his offering of a
product of service in return enabling the buyer to achieve his goal in an
economic way.

37
Contents

1 Agents

2 Sales Techniques

3 Sales/Marketing relationship

3.1 Single purchases

3.2 Repeat purchases

4 Criticisms

4.1 Deceitful selling practices

5 References

Agents

Agents in the sales process can be defined as representing either side of the
sales process for example:

Sales broker or Seller agency or seller agent

This is a traditional sales person role where the sales person represents a
person or company on the selling end of the deal.
Buyers broker or Buyer brokerage
This is where the sales person represents the consumer making the
purchase. This is most often applied in large transactions.
Disclosed dual agent
This is where the sales person represents both parties in the sale and acts
as a mediator for the transaction. The role of the sales person here is to
over see that both parties receive an honest and fair deal, and is
responsible to both.
Transaction broker

38
 This is where the sales person doesn't represent either party, but handles
the transaction only. This is where the seller owes no responsibility to
either party getting a fair or honest deal, just that all of the papers are
handled properly.

Sales Managers

It is the goal of a qualified and talented sales manager to implement various

sales strategies and management techniques in order to facilitate improved
profits and increased sales volume. They are also responsible for coordinating
the sales and marketing department as well as over site concerning the fair and
honest execution of the sales process by his agents.

Salespersons

The primary function of professional sales is to generate and close leads,

educate prospects, fill needs and satisfy wants of consumers appropriately, and
therefore turn prospective customers into actual ones. The successful
questioning to understand a customer's goal, the further creation of a valuable
solution by communicating the necessary information that encourages a buyer
to achieve his goal at an economic cost is the responsibility of the sales person
or the sales engine (e.g. internet, vending machine etc).

Sales Techniques

The sale can be made through:

• Direct Sales, involving person to person contact

• Agency-based

o Sales agents (real estate, manufacturing)

o Transaction sales

o Consultative sales

39
 o Complex sales

o Consignment

o Telemarketing or telesales

o Retail or consumer

• Door-to-door or traveling salesman

• Request for Proposal is an invitation for suppliers, through a bidding

process, to submit a proposal on a specific product or service. An RFP is
usually part of a complex sales process, also known as enterprise sales.

• Business-to-business — Business-to-business sales are much more

relationship based owing to the lack of emotional attachment to the
products in question. Industrial/Professional Sales is selling from one
business to another

• Electronic

o Web — Business-to-business and business-to-consumer

o Electronic Data Interchange (EDI) is a set of standards for

structuring information to be electronically exchanged between
and within businesses

• Indirect, human-mediated but with indirect contact

o Mail-order

Sales/Marketing relationship

Marketing plays a very important part in sales. If the marketing department

generates a potential customers list, it can be beneficial for sales. The
marketing department's goal is to bring people to the sales team using

40
promotional techniques such as advertising, sales promotion, publicity, and
public relations. In most large corporations, the marketing department is
structured in a similar fashion to the sales department and the managers of
these teams must coordinate efforts in order to drive profits and business
success. Driving more customers "through the door" gives the sales department
a better chance by ratio of selling their product to the consumer.

SALES PLANING

INTRODUCTION
University departmental activities are supported by 8 major categories of
revenue. External sales represent one of these categories of revenue:

• Tuition and Fees

• Government Appropriations

• Sponsored Projects

• Gifts

• Investment Income

• Patient Care Reimbursement

• Sales to University Departments

• Sales to External Customers

WHAT ARE EXTERNAL SALES?

An external sale is an exchange by the University of Tangible Or Intangible

Property or service for monetary consideration with external customers.
Transactions handled by SPA related to technology transfer, licensing or
trademark agreements are excluded from this policy. See Appendix F for
examples of external sales.

Sales to external customers include the following:

41
 • Department sales of property and services

• Auxiliary enterprise sales (Housing, Bookstores, etc.)

• centrally negotiated agreements involving U-wide property or services

(e.g. exclusive use contracts)

• ISO sales to customers that are NOT University departments

At times, it is difficult to determine if an activity is an external sale or if it is a

sponsored project or gift. To help with this determination see Appendix E.

PLANNING QUESTIONS

Can I conduct this activity?

External sales activity must be consistent with the University mission or be

undertaken to maximize the use of existing University resources consistent
with the objectives of the University. These activities should be pursued in a
commercial and competitive manner and whenever feasible provide learning
opportunities for students and foster good relations with outside constituencies.
The following are some examples of activity that would be appropriate and
inappropriate.

Potentially Appropriate Activity (Subject to Procedures in this Policy)

• Operate medical testing labs 24 hours a day for commercial testing

• Operate a veterinary medicine clinic for routine care on nights and
weekends
• Test commercial software products
• Provide medical/surgical services to community hospital
• Sell advertising space on the WWW
• Provide parking and shuttle service to the general public for non-
University sports events

• Use University labs and equipment to consult with business and industry

42
Potentially Inappropriate Activity
• Operate businesses such as a shoe store entirely unrelated to the U
mission

• Contract with a vendor in a manner that violates existing exclusive

University vendor agreements

• engaging in activities that violate federal or state laws or University

policy (copyright, trademark, conflict of interest)

• Seek unfair competitive advantage by using government

appropriations, tuition revenues, or other U funds to subsidize operations
(e.g., no charge for space or utility costs)

• engaging in activities that expose the University to unresolved

insurance, legal, tax, or environmental health and safety risks

Once you have determined that the business activity you are considering is
appropriate, you should then decide if you have the appropriate staffing to
handle this activity. The External Sales Coordinator can help with these
questions.

Should I Conduct This Activity?

A major purpose of conducting these activities is to generate profits to
support the department and University mission. To determine profit, you must
estimate the revenue and expenses related to the activity. Expenses include not
only the direct expenses of the activity (i.e. salaries and cost of goods sold) but
also indirect expenses (i.e., space, utilities, administrative support, and
depreciation). An external sales activity should generally not be undertaken if it
couldn’t be sustained as a self-supporting activity. In situations where
University facilities would otherwise sit idle, incremental revenue may be
desirable even if allowable indirect expenses are not fully recovered. Many

43
University facilities carry fixed overhead costs that will be incurred regardless
of how a facility might be used with an external customer base.

External sales activities can also enhance student experiences and expand
relationships with entities outside the University. These goals along with the
chance to generate profits must be balanced with the risks associated with the
activity. Consideration should be given to risks such as legal, tax, or insurance
issues as well as the consequences of sales on major donors or supporters.

If you have been operating a business activity on a commercial,

competitive, and profitable basis for some time, you may want to consider
contacting SPA about making a technology transfer decision.

44
CONSUMAR BEHAVIOUR

What is Consumer Buying Behavior?

Definition of Buying Behavior:

Buying Behavior is the decision processes and acts of people involved in
buying and using products.

Need to understand:

• Why consumers make the purchases that they make?

• What factors influence consumer purchases?

• The changing factors in our society.

Consumer Buying Behavior refers to the buying behavior of the ultimate

consumer. A firm needs to analyze buying behavior for:

• Buyers reactions to a firms marketing strategy has a great impact on the

firms’ success.

• The marketing concept stresses that a firm should create a Marketing

Mix (MM) that satisfies (gives utility to) customers, therefore need to analyze
the what, where, when and how consumers buy.

• Marketers can better predict how consumers will respond to marketing

strategies.

Stages of the Consumer Buying Process

Six Stages to the Consumer Buying Decision Process (For complex

decisions). Actual purchasing is only one stage of the process. Not all decision
processes lead to a purchase. All consumer decisions do not always include all
6 stages, determined by the degree of complexity...discussed next.

The 6 stages are:

45
1. Problem Recognition (awareness of need)--difference between the
desired state and the actual condition. Deficit in assortment of products.
Hunger stimulates your need to eat.

2. Information search--

o Internal search, memory.

o External search if you need more information. Friends and relatives

(word of mouth). Marketer dominated sources; comparison shopping; public
sources etc.

A successful information search leaves a buyer with possible alternatives, the

evoked set.

3. Evaluation of Alternatives--need to establish criteria for evaluation,

features the buyer wants or does not want. Rank/weight alternatives or resume
search.

If not satisfied with your choice then returns to the search phase. Can you
think of another? Information from different sources may be treated differently.
Marketers try to influence by "framing" alternatives.

4. Purchase decision--Choose buying alternative, includes product,

package, store, method of purchase etc.

5. Purchase--May differ from decision, time lapse between 4 & 5, product

availability.

6. Post-Purchase Evaluation--outcome: Satisfaction or Dissatisfaction.

Cognitive Dissonance, have you made the right decision. This can be reduced
by warranties, after sales communication etc.

Categories that Affect the Consumer Buying Decision Process

A consumer, making a purchase decision will be affected by the following

three factors:

46
1. Personal

2. Psychological

3. Social

The marketer must be aware of these factors in order to develop an appropriate

MM for its target market.

Return to Contents List

Personal

Unique to a particular person. Demographic Factors. Sex, Race, Age etc.

Who in the family is responsible for the decision making?

Young people purchase things for different reasons than older people.

Psychological factors

Psychological factors include:

• Motives--

A motive is an internal energizing force that orients a person's activities

toward satisfying a need or achieving a goal.

Actions are effected by a set of motives, not just one. If marketers can
identify motives then they can better develop a marketing mix.

MASLOW hierarchy of needs!!

o Physiological

o Safety

o Love and Belonging

o Esteem

o Self Actualization

Need to determine what level of the hierarchy the consumers are at to

determine what motivates their purchases.

47
Motives often operate at a subconscious level therefore are difficult to measure.

• Perception--

What do you see?? Perception is the process of selecting, organizing and

interpreting information inputs to produce meaning. IE we chose what info we
pay attention to, organize it and interpret it.

Information inputs are the sensations received through sight, taste, hearing,
smell and touch.

Selective Exposure-select inputs to be exposed to our awareness. More

likely if it is linked to an event, satisfies current needs, intensity of input
changes (sharp price drop).

Selective Distortion-Changing/twisting current received information,

inconsistent with beliefs.

Advertisers that use comparative advertisements (pitching one product

against another), have to be very careful that consumers do not distort the facts
and perceive that the advertisement was for the competitor. A current
example...MCI and AT&T...do you ever get confused?

• Ability and Knowledge--

Need to understand individuals capacity to learn. Learning, changes in a

person's behavior caused by information and experience. Therefore to change
consumers' behavior about your product, need to give them new information re:
product...free sample etc.

When making buying decisions, buyers must process

information.Knowledge is the familiarity with the product and expertise.
Inexperience buyers often use prices as an indicator of quality more than those
who have knowledge of a product.

Learning is the process through which a relatively permanent change in

behavior results from the consequences of past behavior.

48
• Attitudes--

Knowledge and positive and negative feelings about an object or activity-

maybe tangible or intangible, living or non- living.....Drive perceptions
Individual learns attitudes through experience and interaction with other
people.

Consumer attitudes toward a firm and its products greatly influence the
success or failure of the firm's marketing strategy. Attitudes and attitude change
are influenced by consumer’s personality and lifestyle.

Consumers screen information that conflicts with their attitudes. Distort

information to make it consistent and selectively retain information that
reinforces our attitudes. IE brand loyalty. There is a difference between attitude
and intention to buy (ability to buy).

• Personality--

All the internal traits and behaviors that make a person unique, uniqueness
arrives from a person's heredity and personal experience. Examples include:

o Compulsiveness

o Self confidence

o Friendliness

o Adaptability

o Ambitiousness

o Dogmatism

o Authoritarianism

o Introversion

o Extroversion

o Aggressiveness

o Competitiveness.

49
 Traits affect the way people behave. Marketers try to match the store image
to the perceived image of their customers.

There is a weak association between personality and Buying Behavior; this

may be due to unreliable measures. Consumers buy products that are consistent
with their self concept.

• Lifestyles--
Recent US trends in lifestyles are a shift towards personal independence and
individualism and a preference for a healthy, natural lifestyle.

Lifestyles are the consistent patterns people follow in their lives.

Social Factors
Consumer wants, learning, motives etc. are influenced by opinion leaders,
person's family, reference groups, social class and culture.

• Opinion leaders--

Spokespeople etc. Marketers try to attract opinion leaders...they actually use

(pay) spokespeople to market their products. Michael Jordon (Nike,
McDonalds, Gatorade etc.)

• Roles and Family Influences--

Role...things you should do based on the expectations of you from your

position within a group.

People have many roles.

Husband, father, employer/ee. Individuals role are continuing to change

therefore marketers must continue to update information.

Family is the most basic group a person belongs to. Marketers must
understand:

o that many family decisions are made by the family unit

o consumer behavior starts in the family unit

50
o family roles and preferences are the model for children's future family
(can reject/alter/etc)

o family buying decisions are a mixture of family interactions and

individual decision making

o family acts an interpreter of social and cultural values for the individual.

The Family life cycle: families go through stages; each stage creates different
consumer demands:

o bachelor stage...

o newly married, young, no children...

o full nest I, youngest child under 6

o full nest II, youngest child 6 or over

o full nest III, older married couples with dependant children

o empty nest I, older married couples with no children living with them,
head in labor force

o empty nest II, older married couples, no children living at home, head |
retired

o solitary survivor, in labor force

o solitary survivor, retired

o Modernized life cycle includes divorced and no children.

• Reference Groups--

Individual identifies with the group to the extent that he takes on many of
the values, attitudes or behaviors of the group members. Families, friends,
sororities, civic and professional organizations.

Any group that has a positive or negative influence on a person’s attitude

and behavior.

51
Membership groups (belong to)

Affinity marketing is focused on the desires of consumers that belong to

reference groups. Marketers get the groups to approve the product and
communicate that approval to its members. Credit Cards etc.!!

Aspiration groups (want to belong to)

Disassociate groups (do not want to belong to)

Honda tries to disassociate from the "biker" group.

The degree to which a reference group will affect a purchase decision

depends on an individual’s susceptibility to reference group influence and the
strength of his/her involvement with the group.

• Social Class--
An open group of individuals who have similar social rank. US is not a
classless society. US criteria; occupation, education, income, wealth, race,
ethnic groups and possessions.

Social class influences many aspects of our lives. IE upper middle class
Americans prefer luxury cars Mercedes.

o Upper Americans-upper-upper class, .3%, inherited wealth, aristocratic

names.

o Lower-upper class, 1.2%, newer social elite, from current professionals

and corporate elite

o Upper-middle class, 12.5%, college graduates, managers and

professionals

o Middle Americans-middle class, 32%, average pay white collar workers

and blue collar friends

o Working class, 38%, average pay blue collar workers

o Lower Americans-lower class, 9%, working, not on welfare

o Lower-lower class, 7%, on welfare

52
 Social class determines to some extent, the types, quality, and quantity of
products that a person buys or uses. Lower class people tend to stay close to
home when shopping; do not engage in much prepurchase information
gathering.

Stores project definite class images.

Family, reference groups and social classes are all social influences on
consumer behavior. All operate within a larger culture.

• Culture and Sub-culture--

Culture refers to the set of values, ideas, and attitudes that are accepted by a
homogenous group of people and transmitted to the next generation.

Culture also determines what is acceptable with product advertising. Culture

determines what people wear, eat, reside and travel. Cultural values in the US
are good health, education, individualism and freedom. In American culture
time scarcity is a growing problem. IE change in meals. Big impact on
international marketing.

MARKET SEGMENTATION

Market segmentation is the process of segmenting market in to different –

different segments.A Market segment is a subgroup of people or organizations
sharing one or more characteristics that cause them to have similar product
needs.

Market segmentation is the process in marketing of dividing a market into

distinct subsets (segments) that behave in the same way or have similar needs.
Because each segment is fairly homogeneous in their needs and attitudes, they
are likely to respond similarly to a given marketing strategy. That is, they are
likely to have similar feelings and ideas about a marketing mix comprised of a
given product or service, sold at a given price, distributed in a certain way and
promoted in a certain way.

53
 Broadly, markets can be divided according to a number of general criteria,
such as by industry or public versus private sector. Small segments are often
termed niche markets or specialty markets. However, all segments fall into
either consumer or industrial markets. Although it has similar objectives and it
overlaps with consumer markets in many ways, the process of Industrial market
segmentation is quite different.

The process of segmentation is distinct from targeting (choosing which

segments to address) and positioning (designing an appropriate marketing mix
for each segment). The overall intent is to identify groups of similar customers
and potential customers; to priorities the groups to address; to understand their
behavior; and to respond with appropriate marketing strategies that satisfy the
different preferences of each chosen segment. Revenues are thus improved.

Improved segmentation can lead to significantly improved marketing

effectiveness. With the right segmentation, the right lists can be purchased,
advertising results can be improved and customer satisfaction can be increased.

The requirements for successful segmentation are:

• Homogeneity within the segment

• Heterogeneity between segments

• Segments are measurable and identifiable

• Segments are accessible and actionable

• Segment is large enough to be profitable

These criteria can be summarized by the word DAMAS:

• D Differential: it must respond differently to a different marketing mix

• A Actionable: you must have a product for this segment to be accured

• M Measurable: size and purchasing power can be measured

54
 • A Accessible: it must be possible to reach it efficiently

• S Substantial: the segment has to be large and profitable enough

The variables used for segmentation include:

• Geographic variables

o region of the world or country, East, West, South, North, Central,

coastal, hilly, etc.

o country size/country size : Metropolitan Cities, small cities,

towns.

o Density of Area Urban, Semi-urban, Rural.

o climate Hot, Cold, Humid, Rainy.

• Demographic variables

o age

o gender Male and Female

o sexual orientation

o family size

o family life cycle

o Education Primary, High School, Secondary, College,

Universities.

o income

o occupation

o education

o socioeconomic status

o religion

55
 o nationality/race

o language

• Psychographic variables

o personality

o life style

o value

o attitude

• Behavioral variables

o benefit sought

o product usage rate

o brand loyalty

o product end use

o readiness-to-buy stage

o decision making unit

o profitability

When numerous variables are combined to give an in-depth understanding

of a segment, this is referred to as depth segmentation. When enough
information is combined to create a clear picture of a typical member of a
segment, this is referred to as a buyer profile. When the profile is limited to
demographic variables it is called a demographic profile (typically shortened to
"a demographic"). A statistical technique commonly used in determining a
profile is cluster analysis.

56
PRICE DISCRIMINATION

Where a monopoly exists, the price of a product is likely to be higher than

in a competitive market and the quantity sold less, generating monopoly profits
for the seller. These profits can be increased further if the market can be
segmented with different prices charged to different segments (referred to as
price discrimination), charging higher prices to those segments willing and able
to pay more and charging less to those whose demand is price elastic.

The price discriminator might need to create rate fences that will prevent
members of a higher price segment from purchasing at the prices available to
members of a lower price segment. This behaviour is rational on the part of the
monopolist, but is often seen by competition authorities as an abuse of a
monopoly position, whether or not the monopoly itself is sanctioned. Examples
of this exist in the transport industry (a plane or train journey to a particular
destination at a particular time is a practical monopoly) where Business Class
customers who can afford to pay may be charged prices many times higher
than Economy Class customers for essentially the same service. Microsoft and
the Video industry generally also price exactly the same product at widely
varying prices depending on the market they are selling to, and try to enforce
this with a mix of legislation and Digital Rights Management.

MARKETING COMMUNICATION

Marketing depends heavily on an effective communication flow between

the company and the consumer manufacturing a product and making it
available on the is only part of the company’s job .it is equally important, or
perhaps more important, to make it known to the consumer that the product is
available in the market .in a competitive market where several are striving to
win over consumer, it is not enough if the availability is made known. it is the
essential to prorogate the distinctive feature of the product. The process does
not end here end either. The firm should also get the feed beckon the consumer
accept its product and interpret its massage.

57
 Traditionally the, marketing men have been of the view that the promotion
mix consisting of personal selling, advertising, sales promotion and publicity is
the only instrument available for communicating for people and consumer . I
the past marketing literature too adopted the same approach and describe the
promotion mix as the sole instrument of marketing communications.

Definition of marketing communication

Marketing can be defined as the Endeavour of presenting a set of massage

to a target market through multiple cues and media, with intention of creating
favorable response from the market for the company’s total product offering
and simultaneously providing for marketing feed back for improving and
modifying the offering.

This means that the firm is a sender of market message and also a receiver
of market response. In its role as a sender of a message the firm communication
with the market not only through promotional stimuli but through product, and
place point of sale. In its role as a receiver of a market response the firm collect
the information through market research and marketing communication system,
this particular aspect of the comnicationflow is dealt with in the chapter of
marketing research and marketing information system. In this chapter we shall
confirm our discussion to communication flow from the firm to the consumer.

58
MARKETING COMMUNICATION MIX

PRODCUCT COMMUNICATION

PRICE COMMUNICATION

PLACE COMMUNICATION

PROMOTION COMUNCATION

1. ADVERTISING COMUNICATES

2. PERSONAL SALING COMMUNICATION

3. SALES PROMOTION COMUNICATION

4. PUBLICITY COMMUNICATION

59
RESEARCH METHODOLOGY

60
RESEARCH METHDOLOGY

RESEARCH DESIGN :-

Development of research design is very important step in the project .The

choice of research design depends on the depth and extant of the data required,
that cost and benefits the research. Research design is acutely the blue print of
the research project, and when implemented it it must bring the information
required for solving the problem. The research design indicates the method of
research (the method of information gathering),The instrument of research ,the
method of sampling etc. again the it is the research design that will largely
determine where the information finally collected by will relevant to the study
, whether the information will be collected in an objective and scientific way ,
and where it will be collected at the reasonable cost

Research procedure springs from research design. It spells out the plan for
securing the information.Each and every research requires Data collection and
data collection is the heart of every marketing research .it is an elaborate
process through which the researcher makes a plan ed search for relevant data
which is required and the required data for the assignment
Data is the raw with which a market researcher functions.

Primary and secondary data:-

Data, or facts, may be derived from several sources. Data can be classified
as primary data and secondary data .primary data is data gathered for yhe first
time by the researcher and secondary data is data taken by the researcher from
the secondary resources, internal or external.Primary can be collected through
observational studies, market surveys, or experiments, . it is a task that
demands technical expertise

61
 Here this project has also been required the research design for collecting
the information required therefor I made a research design where I designed my
whole process for data collection, Interpretations and analysis.

This research has also been designed in to several steps .the objective of
this project was to find out the investment criterion of the general people .and
according to this objective I designed this process into these following steps.

First step:- In first step I prepared 60 questionnaire for collecting the data
required for this project , that questionnaire is mentioned with this
project also .
This has both kind of questions the open ended and the close end
questions

Second step:- In second step I divided these 60 questionnaire in to 3

different groups of three different age groups 20-35 years,36-50 years
and 51-above

Third step:- in third step while executing my work of sales I made two
segment of customer first the person who they works in industrial sector
and second the person who they do not work in industrial sector

Fourth step:- in fourth step I got filled all 60 questionnaire by the different
– different persons in two segments. 20 questionnaires to each age
group.

Fifth step: - In fifth step I collected all data which has been collected
through questionnaires by open ended and close ended questions.

Sixth step :-this step is the step of interpreting the date in this step I
interpreted the data which I collected through the questionnaires

62
 Seventh step :- In this seventh step I canalized the data I collected for this
project through different techniques and presented the research findings
through graphs and tables.

By this way I designed my research in seven different steps and worked

up on my research design which I made for this project.

SAMPLE SIZE:-

Every research requires the data for the project and this data comes from
the data collection tools .these data collection tools can be anything it can
be questionnaire or mechanical and electronically device like it can be
collected through interviews, mail interview, telephonic interview, personal
interview,.

In many market research project, conducting a census study or study of

entire universe will be impractical on account of limitation of time and
money .Hence sampling becomes inevitable.

Sampling is used to collect primary data when the sources of data are
far too many to be exhaustively handled. In review of the importance of
sampling in the data collection process we are discussing the subject at
length. Obviously the sample is only a portion of the universe or population
the success of sampling depends on the on extent to which the
characteristics of the sample truly those of universe.

Sampling have many advantage in itself .sampling saves cost and time
.It enables collection of information that is ok for given purpose at lesser
cost and time .it enables butter supervision of information gathering task
and presentation of the data it also helps ensure the required degree of
precision

SAMPLE:-sample is a part of population or universe.

63
Sampling Method:-

Different methods can be employed to select the sample unites .these

methods termed as sampling methods, fall under two bride categories.

Probability/random sampling methods

Non-probability sampling methods

In this process I choused the second category of sampling in this I choused

the two areas for my sampling in that I can get relevant data which I required
for the given project

As a sample size I choused the sample size of 60 person because it is the

research which finds out the market structure of market and this is known as
the exploratory kind of research.

RESEARCH TOOLES AND QUESTIONNAIRE:-

Research tools and questionnaire are very important in research and with it
any one can not think about the research. Research is those tools which are
used in data collection and questionnaire. In this I made questionnaire which is
attached with this . These tools help allot in preparing the research and
execution of project

ACTION PLAN FOR DATA COLLECTION:-

As action plan for data collection for this project I developed the sampling
design and these following componsnts come in this sampling design. These
are the steps of action plan which is also known as sampling

At First I choused the sample unit that who are to be surveyed. I choose it
on probability basis I choose two segments of customer 1. The person who they
are in the industrial field and 2. The person who they are not in the industrial
field.

64
 Second I choosed the sample size that how many are to be surveyed in this
I choused the size of 60 person who are to be surveyed and in this I
differentiated the sample size of 60 person in three groups on the basis of age
that are these
1. 20-35 years
2. 36-50 years
3. 50- above years
Because it is the research which describes the market structure and for this
research it requires the sample size of more then 30 samples .so this research
is a kind of exploratory research .Then in third step I choosed sample
procedure that how to ensure those who are to be interrogated are include in the
sample

Then in fourth step I choused the sample media in this I choused the media
by which I can collect the best data for my research and for this I went for
questionnaire This was the action plan through which I collected the data for
given research project

DATA ANALYSIS AND REPORT PREPRATION

Data analysis is the process in which a researcher analyzes the collected

data and interprets this data. This process is known as the analysis and report
preparation of data. Each project has to have research findings to become
complete in it self thus this process of research analysis helps in finding out the
research findings and makes it complete.

In process of data analysis we analyze the data through different measuring

techniques and measurement of data gathered from the respondent is an
important aspect of any research study

Measurement may be easy if the answer consist the wholly consist of

questionnaire but in any marketing situation the response sought from the

65
respondents are qualitative in nature, relating to perception, feeling and dislikes
inclination and preferences. Suitable devices have to be found out for
measuring such response For measuring the quantities data a researcher has the
many other techniques to measure that gathered data.

In I measured the gathered data through different techniques and presented

that by the help of tables and graphs .i collected the data of 3 different age
group of people who they work in the industrial sector and who they do not
work in the industrial sector for this I went to the corporate reason of the city
and collected the data from there.
Here I have presented the gathered data of different age of people in tables
according to their habits of money investment and their age group also affects
their habits of money investment.
I separated the people in the age group of -
Group 1:-20-35 years
Group 2:- 36-50 years
Group 3:-51- above

66
Table 1 :- age group 20-35 years

Table 1.1

Bank Equity Commodit

y
Often 70 70 60
Some time 20 14 10
Do not 10 16 30

10 0

90
P 80
E
70
R
60
C O fte n
E 50
S o m e tim e
N 40
Do not
T 30
A 20
G
10
E
0
Ba nk Eq uity C om m odity

Table 1.2

Mutual Derivatives Offshore

fund investment
Often 60 20 6
Some time 30 10 10
Do not 10 70 84

100
90
P
80
E
R 70
O fte n
C 60
E 50 Som e
tim e s
N 40 Do no t
T
30
A
20
G
E 10
0
M u tu a l fu n dD e riv a ti ve s O ffsh o re
i n v e stm e n t

67
Table 1.3

Life General Others

insurance insurance
Often 80 68 26
Some time 12 6 16
Do not 8 26 68

100
P
90
E
R 80
C 70
E 60
N 50 O f te n
T 40 S o m e tim e
A 30 D o not
G 20
E
10
0
L ife G e n e r a l O th e r
in s u ra n in
c es u r a n c e

Group 2:- 36-50 years Of Age Group

Table 2.1

Bank Equity Commodity

Often 92 60 40
Some time 6 26 36
Do not 2 14 44

100
P 90
E 80
R 70
C
60 O ft e n
E
50 S o m e tim e
N
40 Do not
T
30 T a b le 2 .1
A
G 20

E 10
0
Ba n k E q u ity C o m m o d ity

Table 2.2

68
 Mutual Derivatives Offshore
fund investment
Often 80 40 10
Some time 14 18 5
Do not 6 42 85

90

P 80
E 70
R
60
C
E 50
O fte n
N 40 S o m e tim e
T
30 D o not
A
G 20
E 10

0
M u tu a l fu n d D e ri va tiv e s O ffsh o re
in v e stm e n t

Table 2.3

Life General Others

insurance insurance
Often 86 60 70
Some time 10 30 20
Do not 4 10 10

90

80
P
E 70
R 60
C
50
E Ofte n
N 40 S o m e tim e s
T 30 Do n ot
A
G 20

E 10

0
Life Ge n e ra l O th e rs
insu ra n ce insu ra nce

Table 3:- Age group 51- above

Table 3.1

69
 Bank Equity Commodity
Often 96 40 20
Some time 2 20 16
Do not 2 40 64

100
90
80
70
60
Often
50
Some times
40 Do not
30
20
10

0
Bank Equ ity Com modity

P
E
R
C
E
N
T
A
G
E

Table 3.2

Mutual Derivatives Offshore

fund investment
Often 50 20 4
Some time 20 14 13
90
Do not 30 66 83
80

70

60

50
O fte n
40 S om e ti m e s
30 D o no t

20

10

0
70
M u tu al fu n dDe r iv ati v e s O ffs h ore
i nv e s tm e nt
 P
E
R
C
E
N
T
A
G
E

71
Table 3.3

Life General Others

insurance insurance
Often 60 20 83
Some time 10 40 4
Do not 30 40 13

90
P 80
E 70
R
60
C
E 50
Ofte n
N 40 Som e tim e s
T 30 Do n ot
A
20
G
E 10

0
Life Ge n e ra l O the rs
insura nce insur a nce

72
1. Pie chart 20-35 years Age Group

Bank
Equity
Commodit y
Mutual funds
Derivatives
offshore investment
Life insurance
General insurance
Others

Pi-chart tables

Table: -1

NAME PEOPLE (often) PERCENTAGE

Banks 70 15.21%
Equity 70 15.21%
Commodity 60 13.04%
Mutual funds 60 13.04%
Derivative 20 4.34%
Off shore investment 6 1.30%
Life insurance 80 17.39%
General insurance 68 14.78%
Others 26 5.68%
Total 460 100%

73
2. Pie chart 36-50 years Age Group

Bank
Equity
Commodit y
Mutual fund
Derivative
Offshore investment
life insurance
General insurance
Others

Table: -2

NAME PEOPLE (often) PERCENTAGE

Banks 92 17.10%
Equity 60 11.15%
Commodity 40 7.43%
Mutual funds 80 14.86%
Derivative 40 7.86%
Off shore investment 10 1.85%
Life insurance 86 15.98%
General insurance 60 11.15%
Others 70 13.01%
Total 538 100%

74
3. Pie chart 51-above years Age Group

Bank
Equity
Commodity
Mutual fund
Derivative
Offshore investment
life insurance
General insurance
Others

Table no.: -3

NAME PEOPLE (often) PERCENTAGE

Banks 96 24.42%
Equity 40 10.17%
Commodity 20 5.08%
Mutual funds 50 12.72%
Derivative 20 5.08%
Off shore investment 4 1.01%
Life insurance 60 15.20%
General insurance 20 5.08%
Others 83 21.11%
Total 393 100%

Here all pi-charts are showing the percentage of the general people they invest
most of times and often in their field of investment.

75
RESEARCH FINDINGS

76
RESEARCH FINDING

After analyzing the data I have found these research findings

20-35 age group:

Here I have presented the gathered data of different age of people in tables
according to their habits of money investment and their age group also affects
their habits of money investment.
I separated the people in the age group of -
Group 1:-20-35 years
Group 2:- 36-50 years
Group 3:-51- above

Table 1 :- age group 20-35 years

Table 1.1
This table no. 1 shows the data of the people who they have the age 0f 20-35
years. This data shows the investment habits of this age group .in this age
group generally 70% people invest their money often in banks, 20% of people
they invest their money some times in banks and 10% of people don’t invest
their money in banks.

In other field of investment, which is, equity contains basically d-mates in it

self 70% people in the age group of 20-35 invest often in this field. 14% of that
people invest some times in this field and 16%people do not invest in this field.

In field of commodity we found that 60% of people invest often their

amount of money in the field of commodity and only 10% of people invest
their money some times in this field but 30% of people do not invest their
money in this field which has been shown in Table 1.1.

77
Table 1.2

This table no. 1.2 shows the data of the people who they have the age 0f 20-
35 years. This data shows the investment habits of this age group .in this age
group generally 60% people invest their money often in Mutual funds, 30% of
people they invest their money some times in Mutual funds and 10% of people
don’t invest their money in Mutual funds.

In other field of investment, which is Derivatives, contains basically d-

mates in it self 20% people in the age group of 20-35 invest often in this field.
10% of that people invest some times in this field and 70%people do not invest
in this field.

In field of Offshore investment we found that 6% of people invest often

their amount of money in the field of Offshore investment and only 10% of
people invest their money some times in this field but 84% of people do not
invest their money in this field which has been shown in table 1.2.

Table 1.3

This table no. 1.3 shows the data of the people who they have the age 0f 20-
35 years. This data shows the investment habits of this age group .in this age
group generally 80% people invest their money often in Life insurance, 12% of
people they invest their money some times in Life insurance and 8% of people
don’t invest their money in Life insurance

In other field of investment that is General Insurance contains basically d-

mates in it self 68% people in the age group of 20-35 invest often in this field.
6% of that people invest some times in this field and 26%people do not invest
in this field.

In field of Others we found that 26% of people invest often their amount of
money in the field of Others and only 16% of people invest their money some

78
times in this field but 68% of people do not invest their money in this field
which has been shown in table 1.3.

Table 2 :- Age Group 36-50 years

Table 2.1

This table no. 2.1 shows the data of the people who they have the age 0f 36-
50 years. This data shows the investment habits of this age group .in this age
group generally 92% people invest their money often in banks, 6% of people
they invest their money some times in banks and 2% of people don’t invest
their money in banks

In other field of investment that is equity contains basically d-mates and i-

pos in it self 60% people in the age group of 36-50 invest often in this field.
26% of that people invest some times in this field and 14%people do not invest
in this field.

In field of commodity we found that 40% of people invest often their

amount of money in the field of commodity and only 36% of people invest
their money some times in this field but 44% of people do not invest their
money in this field which has been shown in table 2.1.

Table 2.2

This table no. 2.2 shows the data of the people who they have the age 0f 36-
50 years. This data shows the investment habits of this age group .in this age
group generally 80% people invest their money often in Mutual funds, 14% of
people they invest their money some times in Mutual funds and 6% of people
don’t invest their money in Mutual funds.

In other field of investment that is Derivatives contains basically d-mates

in it self 40% people in the age group of 36-50 invest often in this field. 18% of

79
that people invest some times in this field and 42%people do not invest in this
field.

In field of Offshore investment we found that 10% of people invest often

their amount of money in the field of Offshore investment and only 5% of
people invest their money some times in this field but 85% of people do not
invest their money in this field which has been shown in table 2.2.

Table 2.3

This table no. 2.3 shows the data of the people who they have the age 0f 36-
50 years. This data shows the investment habits of this age group .in this age
group generally 86% people invest their money often in Life insurance, 10% of
people they invest their money some times in Life insurance and 4% of people
don’t invest their money in Life insurance

In other field of investment that is General Insurance contains basically d-

mates in it self 60% people in the age group of 36-50 invest often in this field.
30% of that people invest some times in this field and 10%people do not invest
in this field.

In field of Others we found that 70% of people invest often their amount of
money in the field of Others and only 20% of people invest their money some
times in this field but 10% of people do not invest their money in this field
which has been shown in table 2.3.

Table 3: - age group51-above Years

Table 3.1

This table no. 3.1 shows the data of the people who they have the age 0f 51-
above years .this data shows the investment habits of this age group .in this age
group generally 96% people invest their money often in banks,2% of people

80
they invest their money some times in banks and 2% of people don’t invest
their money in banks

In other field of investment which is equity contains basically d-mates

and i-pos in it self 20% people in the age group of 51-above invest often in this
field . 40% of that people invest some times in this field and 40%people do not
invest in this field.

In field of commodity we found that 20% of people invest often their

amount of money in the field of commodity and only 16% of people invest
their money some times in this field but 64% of people do not invest their
money in this field which has been shown in table 3.1.

Table 3.2

This table no. 3.2 shows the data of the people who they have the age 0f 51-
above years .this data shows the investment habits of this age group .in this age
group generally 50% people invest their money often in Mutual funds, 20% of
people they invest their money some times in Mutual funds and 30% of people
don’t invest their money in Mutual funds.

In other field of investment which is Derivatives contains basically d-

mates in it self 20% people in the age group of 51-above invest often in this
field . 14% of that people invest some times in this field and 66%people do not
invest in this field.

In field of Offshore investment we found that 4% of people invest often

their amount of money in the field of Offshore investment and only 13% of
people invest their money some times in this field but 83% of people do not
invest their money in this field which has been shown in table 3.2.

Table 3.3

81
 This table no. 3.3 shows the data of the people who they have the age 0f 51-
above years .this data shows the investment habits of this age group .in this age
group generally 60% people invest their money often in Life insurance,10% of
people they invest their money some times in Life insurance and 30% of
people don’t invest their money in Life insurance

In other field of investment which is General insurance contains basically

d-mates in it self 20% people in the age group of 51-above invest often in this
field . 40% of that people invest some times in this field and 40% people do not
invest in this field.

In field of Others we found that 83% of people invest often their amount of
money in the field of Others and only 4% of people invest their money some
times in this field but 13% of people do not invest their money in this field
which has been shown in table3.3.

Here we have taken 60 samples through 60 questionnaire and we divided

these 60 samples in 3 different age group people in 20 samples each.

Research findings

The project Money Investment is based on the consumer behavior.

Consumer behavior which basically based on the buying behavior. This buying
behavior tells about the buying habits of customers. This buying behavior
helped us in finding out the buying behavior of customer while doing are direct
sales of Reliance Money Products and helped us a lot in gathering the data
required for the completion of given project.

This given project Money Investment finds out the investment criteria of
general people and helps in finding out the categories that affect investment
habits of general people categories those make positive affects on investment

82
habits and categories those make negative affects on investment habits on
general people.

This project Money Investment made us aware about the marketing

planning, market segmentation and also about the direct sales. This project
Money Investment also addressed us about the marketing management that
how to manage the market and marketing. At the completion of this project we
came to know about the investment habits of people.

Thinks that make affects on the investment .

Through this we came to know about the thinks that affect the investment
habits of people. That why they invest their money in their field. These thinks
varies with the age group of people. On these thinks few factor makes strong
affect. That is these
Psychological factors
Sociological factors
Personal factors

Age group 1:- 20 to 35 years

For this age of people these are the positive factors which they inspire
them to invest their money in the particular field-

In this project we found out that the people of age group of 20 - 35 years
invest more in Banks (17.10%people), Mutual Fund (14.86%people) , Life
Insurance(15.96%people) & others (13%people).

About the age group of 36-50 years these age group age people invest their
money more in mutual funds (14.60%people), bank (16.79%people), equity
(10.95%people), Others (12.77%people), general insurance (10.95%people),
life insurance(15.59% people).

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 About the age group of 51-above they invest more in banks
(24.12%people), Life insurance (21.11%people), and mutual fund (12.56%
people).

Positive factors: -

Banks –
Safe
Money saving
Reliable
No risk
Long-term benefits
Loans
Convenient

Equity-
High risk
High profit
More benefits
Healthy returns
Less time required

Mutual funds-
Less risk
Nice profit
Systematic plane
Less money required
Easy access

Life insurance-
Life safety
Risk management
Reliable

Less money required

More beneficial
Easy access

General insurance-
Easy access
Safety
Negative factors:-

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Banks-
No profit in short term
Fewer schemes
Less chances to earn money

Equity-
High amount
More time for intra day trading
Unreliable
Unsystematic
High risk
High loss
Market dependence

Mutual funds-
Market dependence
Less awareness
Irregular
Risk

Life insurance-
Fewer returns
Long term

General insurance-
No returns
Idleness

These are the cause that affects investment habits of people positively and
negatively.
Along with this some psychological affects social affects and personal
affects also contribute in changing the buying habits like we found that in the
age group 1 the people of the age group 20-35 they are not much aware about
the equity and they don’t have sufficient amount of money in equity so they
don’t invest more in this field.

So this comes in personal factors. And in the age group 2 the people of the
age group of 35-50 they have sufficient amount of money and awareness about
the equity but they don’t want to take the risk so this comes in psychological

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affects and number of people think about the equity that they can not benefits
like others because they don’t have good luck and in age group 3 the people
age group 51-above they don’t want to take risk and they believe in safety so
this comes in philological and personal effects.

And through this I learnt that how to address the customer and how to full
fill their requirement.

I also learned about the marketing planning that how to do marketing planning
and we did in project. We planed our project did the project marketing and
advertisement through canopies, umbrellas, through contacts, and through
mouth.

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 CONCLUSION

CONCLUSION

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 For the conclusion of this project I fond that generally people invest their
money in banks, equity, mutual funds, life insurance, general insurance, and in
others like real estate. I also found out the percentage of people that how many
people invest in which field.

And while investing their money they do mistakes in this so we have come
up with mistakes and with the suggestions to remove the mistakes in their field
of the investment

INVESTMENT MISTAKES

Investment mistakes that comes in investment and generally done by

people. Here while completing are project we came to know about the mistakes
which are done in investment so here we are addressing to some tips that each
investor suppose to remember while doing his investment:

Investment in the stocks of nice repotted companies.

Always book your profit
Keep safe your documents and documents of profit
Diversify of investment
Give preference to systematic investment plans
Investment Money in mutual fund like fields
Keep in touch of professional persons
Do those kinds of investments that save your tax
Do not think that chip is batter
Do not think that temporary is batter
Invest money after planning
Do not forgot invest after doing it that you have done it
Invest in risk free fields

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 And we have also come up with the suggestions that a company can apply
in their marketing planning and in their products. Along with this they are
supposed to take care of the prizing of their products because Indian market is
very price sensitive so they must not increase the price of their products with
the demand of the product.

Each company supposed to choose the write marketing planning for getting
the high profit because if the people will not aware about the product then
obviously companies will not high profit out their products Companies can get
the benefits by converting the thinks that makes negative affect on the
investment habits of general people in the thinks that makes positive affect on
the peoples:

Here the objective of the project “Money Investment” is to find out the
money investment criterion of public through understanding the marketing
planning, consumer behavior, direct sealing, market segmentation, and
marketing communication.

So that the company can came to know about the psychology of the
general people that while making the decision for investment of money which
factors are considered by the people and also the age factor of the people that
effects the decisions of the investment of money.

And these are the rationale of the project

1. Investment criterion of people

2. Sales increase

3. Existence in market

4. Less awareness about the market

5. Risk from the competitors

6 To find out the causes which affects the financial market?

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 7. Product differentiation

8. To find out new areas

9. Less awareness about the company in market

10. Advertisement

For getting this objective and for these getting these rationales of the
project I reviewed the literature that is required for this project. Literature of
this project makes aware about us about the marketing planning, consumer
behavior, direct sealing, market segmentation, marketing communication, and
marketing management.

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ANNEXURE

• Questionnaire:

Questionnaire
Dear Respondent,

Thank you for taking the time to tell us about your experiences,

Q.1) Do you invest money?

(1)YES (2) NO

If no then jump to question number (8)

Q.2) If yes then where do you invest your money?

(1)-BANK (a) Often

(b) some times
(c) Do not invest

(2)-EQUITY (a) Often

(b) some times
(c) Do not invest

(3)-COMMODITY (a) Often

(b) some times
(c) Do not invest

(4)-MUTUAL FUND (a) Often

(b) some times
(c) Do not invest

(5)-DERIVATIVES (a) Often

(b) some times
(c) Do not invest

(6)-OFFSHORE INVESTMENTS (a) Often

(b) some times
(c) Do not invest

(7)-LIFE INSURANCE (a) Often

(b) some times
(c) Do not invest

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 (8)-GENERAL INSURANCE (a) Often
(b) some times
(c) Do not invest

(9)-OTHERS- ----------------------------------

Q.3) Why this/these particular field only?

Ans-
-----------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------
------------------------------

Q.4) Are you satisfied with your investments?

(1) YES (2) NO

Q.5) If” yes” why?

Ans-
-----------------------------------------------------------------------------------------------
------------------------------------------------------------

Q.6) If” no” why?

Ans-
-----------------------------------------------------------------------------------------------
------------------------------------------------------------

Q.7) Do you invest your money for long term or short term?
Ans- --------------------------------------------------------------------------

Q.8) if no then where would you like to invest your money?

(1)-BANK (6)-DERIVATIVES
(2)-EQUITY (7)-OFFSHORE INVESTMENTS
(3)-COMMODITY (8)-LIFE INSURANCE
(4)-MUTUAL FUND (9)-GENRAL INSURANCE
(5)-IPO’S (10)-ALL OF ABOVE

Q.9) Why this/these particular field only?

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 Ans-
-----------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------
------------------------------

Q.10) What other facilities according to you should be provided in your field of
investment?

Ans-
-----------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------
-------------------------------------------

PERSONEL DETAILS

NAME: -- -------------------------------------------------------------

AGE: - -------------------------------------------------------------

OCCUPATION: -- --------------------------------------------------

CONTACT NO.: -- -------------------------------------------------

ADDRESS: -- -------------------------------------------------
-------------------------------------------------------------
--------------------------------------------------------------

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 BIBLIOGRAPHY & WEBLIOGRAPHY

REFERENCES:-

Sites:

www.reliancecapital .com
www.reliancemoney.com
www.google.com

Books:

KOTHARI C.R., RESEARCH METHODOLOGY, NEW AGE INT.

PUBLISHERS, 2nd edition.

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