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A Project Report On Marketing & Sales In: YAMAHA at Mahesh Motors
A Project Report On Marketing & Sales In: YAMAHA at Mahesh Motors
Guided By:Mrs.AnuradhaYesugade
COMPANY CERIFICATE
This is to certify that the project report entitled Marketing &
Sales in YAMAHA at Mahesh Motors Submitted to the Bharati
Vidyapeeth Deemed University, Pune in partial fulfillment of the
requirement for the award of degree of MBA is an original work
carried out by Mr Prateek Kapil under the guidance of Mr ARUN
KUMAR. The matter embodied in this project is a genuine work
done by Prateek Kapil to the best of my knowledge and belief and
has not been submitted before, neither to this university nor to any
other university for the fulfillment of the requirement of any course
of study.
CERTIFICATE
This is to certify that the project titled Marketing & Sales in
YAMAHA at Mahesh Motors is an academic work done by
Prateek Kapil submitted in partial fulfillment of the
requirement for the award of degree of MBA Bharti Vidyapeeth
Deemed University ,Pune .it has been completed under the
guidance of Mrs. ANURADHA YESUGADE. WE are thankful to
Mahesh Motors for having allowed our student to undergo
project work training .The authencity of the project work will be
examined by the viva examiner which includes data
verification, checking duplicity of information etc. and it may be
rejected due to non fulfillment of quality standards set by the
Institute.
DR SACHIN S. VERNEKAR
(DIRECTOR IMED)
DECLARATION
PRATEEK KAPIL
ACKNOWLEDGEMENT
TABLE OF CONTENTS
DECLARATION.......................................................................................................................i
APPROVAL............................................................................................................................ iii
DEDICATION.........................................................................................................................iv
ACKNOWLEDGEMENT.......................................................................................................v
TABLE OF CONTENTS........................................................................................................vi
LIST OF TABLES...................................................................................................................ix
LIST OF FIGURES.................................................................................................................x
LIST OF ACRONYMS...........................................................................................................xi
ABSTRACT...........................................................................................................................xii
CHAPTER 1.............................................................................................................................1
1.0 Introduction........................................................................................................................1
1.1 Background of the study......................................................................................................1
1.2 Statement of the problem.....................................................................................................3
1.3 Purpose of the Study............................................................................................................4
1.4 Objectives of the study.........................................................................................................4
1.5 Research questions...............................................................................................................4
1.6 Scope of the study................................................................................................................5
1.6.1 Geographical scope...........................................................................................................5
1.6.2 Time scope........................................................................................................................5
1.7 Significance of the study......................................................................................................5
CHAPTER 2.............................................................................................................................6
LITERATURE REVIEW........................................................................................................6
2.1 E marketing........................................................................................................................6
2.2 components of e marketing..................................................................................................7
2.2.5 Mobile phone marketing.................................................................................................10
2.3 sales volume.......................................................................................................................11
2.4 Relationship between tele-marketing and sales volume....................................................14
2.5 conclusions.........................................................................................................................14
vi
CHAPTER 3...........................................................................................................................16
METHODOLOGY................................................................................................................16
Introduction............................................................................................................................16
3.1 Research design.................................................................................................................16
3.2 Study population................................................................................................................16
3.3 SAMPLING DESIGN.......................................................................................................16
3.3.1 Sampling techniques.......................................................................................................16
3.3.2 Sample size.....................................................................................................................17
3.3.3 Sampling procedure........................................................................................................17
3.4 Data sources.......................................................................................................................17
3.4.1 Primary sources...............................................................................................................18
3.4.2 Secondary sources...........................................................................................................18
3.5 Data collection tools..........................................................................................................18
3.5.1 Questionnaires.................................................................................................................18
3.5.2 Interview guide...............................................................................................................18
3.6 Data collection methods.....................................................................................................18
3.6.1 Survey.............................................................................................................................19
3.6.2 Observation.....................................................................................................................19
3.7 Data processing, analysis and presentation........................................................................19
3.7.1 Data processing...............................................................................................................19
3.7.2 Data analysis...................................................................................................................19
3.7.3 Data presentation............................................................................................................20
3.8 Limitations of the study.....................................................................................................20
CHAPTER 4...........................................................................................................................21
PRESENTATION, INTERPRETATION AND DISCUSSION OF FINDINGS...............21
Introduction............................................................................................................................21
4.1 Findings on the background information...........................................................................21
4.2 Findings on the services offered through e marketing.......................................................24
4.3 Customer adaptation to e marketing..................................................................................28
4.4 Challenges associated with e marketing............................................................................31
4.5 Interview guide..................................................................................................................32
4.5.1 Tele-marketing services that IDEA is offering................................................................32
4.5.2 When IDEA introduced tele-marketing services ...........................................................33
4.5.3 How IDEA has been using tele-marketing in its operations...........................................33
4.5.4 How customer adaptation/response rate to tele-marketing services has been................34
4.5.5 Whether tele-marketing communications have proven to be beneficial to IDEA..........34
4.5.6 Whether introduction of tele-marketing services has led to an increase in sales volume .. 34
CHAPTER 5...........................................................................................................................38
SUMMARY, CONCLUSION AND RECOMMENDATIONS...........................................38
INTRODUCTION..................................................................................................................38
5.1 Summary of major findings...............................................................................................38
5.1.1 Tele-marketing services..................................................................................................38
5.1.2 Sales volume...................................................................................................................39
5.1.3 Relationship between tele-marketing and sales volume.................................................39
5.2 Conclusion.........................................................................................................................39
5.3 Recommendations..............................................................................................................39
REFERENCES.......................................................................................................................41
APPENDICES44
APPENDIX I: QUESTIONNARE FOR IDEA CUSTOMERS.........................................43
LIST OF TABLES
Table 1 Showing gender of respondents..................................................................................22
Table 2 Showing education level of respondents.....................................................................22
Table 3 Showing age of the respondents..................................................................................23
Table 4 Showing marital status of the respondents..................................................................23
Table 5 Showing whether respondents encounter tele-marketing services in their day to day
interactions with IDEA............................................................................................................25
Table 6 Showing how often respondents encounter/use tele-marketing service.....................26
Table 7 Showing whether tele-marketing services offered by IDEA influence the number of
times respondents use IDEA services......................................................................................28
ix
LIST OF FIGURES
Figure 1: Showing the duration respondents have been IDEA customers...............................24
Figure 2: Showing tele-marketing services respondents are familiar with..............................24
Figure3: Showing tele-marketing services respondents encounter in their day to day
interactions
with IDEA................................................................................................................................26
Figure4: Showing whether the current tele-marketing services offered by IDEA make it
competitive...............................................................................................................................27
Figure 5 Showing how respondents use tele-marketing services offered................................29
LIST OF ACRONYMS
SMS - short message service
E marketing- Electronic marketing
Current Status
Globalisation has made telecommunication an integral part of the infrastructure of the Indian
economy. The telecom sector in India has developed as a result of progressive regulatory
regime.
According to the TRAI, the total gross revenue of the Indian telecom services industry was
Rs 1,524 bn in FY10 up from Rs 1,291 bn in FY11 registering a growth of 18.03% over
FY12 and its subscriber base grew by 43% over FY08 to touch 429.70 mn subscribers in
FY14.
The telecom sector in India experienced a rapid growth over the past decade on account of
regulatory liberalisation, structural reforms and competition, making telecom one of the
major catalysts in Indias growth story. However, much of this growth can be attributed to the
unprecedented growth in mobile telephony as the number of mobile subscribers grew at an
astounding rate from 10 million in 2002 to 662 million in 2014. Besides, the growth in the
service and IT and ITeS sector also increased the prominence of the telecom industry in India.
Telecom has emerged as a key infrastructure for economic and consumer growth because of
its multiplier effect and the fact that it is beneficial to trade in other industries. The
contribution of the sector to GDP has been increasing gradually (its contribution in GDP has
more than doubled to 2.83% in FY07 from 1.0% in FY92).
Telecom is one of the fastest-growing industries in India; on an average the industry added 8
million wireless subscribers every month in FY08. The government had set a target of 1000
million telecom connections by 2020. However, according to the TRAI, the total subscriber
base (wireless and wire line) in the industry crossed the 500-mn-mark and reached 509.03 mn
by the end of September 2012, which took India to the second position in terms of wireless
network in the world next only to China. Prior to liberalisation, the telecom sector was
monopolised by the public sector and recorded marginal growth; in fact, during 1948-1998,
the incremental tele density in the country was just 1.92%. However, the introduction of
NTP99 accelerated the growth of the sector and the tele density increased from 2.33 in 1999
to 36.98 in 2009; however, much of this growth was brought about by the NTP-99 policy
changes such as migration from fixed license fee to revenue sharing regime and cost-oriented
telecom tariffs. From 2003 onwards the government has taken certain initiatives such as
unified access licensing regime, reduced access deficit, introduction of calling party pays
(CPP) and revenue sharing regime in ADC that has provided further impetus to the sector.
The Indian telecom industry is characterised with intense competition, and continuous price
wars. Currently, there are around a dozen telecom service providers who operate in the wired
and wireless segment. The government has been periodically implementing suitable fiscal
and promotional policies to boost domestic demand and to create volumes for the industry.
The Indian telecom industry has immense growth potential as the tele density in the country
is just 36 as compared with 60 in the US, 102 in the UK and 58 in Canada. The wireless
segment growth has played a dominant role in taking the tele density to the current levels. In
the next few years, the industry is poised to grow further; in fact, it has already entered a
consolidation phase as foreign players are struggling to acquire a pie in this dynamic industry.
Role in Indias Development
Contribution to GDP
According to the UNCTAD, there is a direct correlation between the growth in mobile tele
density and the growth in GDP per capita in developing countries, which tend to have a high
percentage of rural population. The share of the telecom services industry in the total GDP
has been rising over the past few years (the telecom sector contribution in GDP went up from
2.52% in FY05 to 2.83% in FY07).
Employment
The Indian telecommunication industry employs over 400,000 direct employees and about
85% of these employees are from government-owned companies. The ratio of number of
subscribers to employees, an indication of efficiency and profitability, is much higher for
private companies than for government companies.
The Indian telecom industry has been an attractive avenue for foreign investors over the
years. As per DIPP figures, the cumulative FDI inflow during August 1991 to June 2009
period, in the telecommunication sector amounted to US$ 113 bn. FDI calculation takes into
account radio paging, cellular mobile and basic telephone services in the telecommunication
sector.
In the 2004-05 Budget, the government raised the FDI limit from 49% to 74% in the telecom
services segment subject to retention of local management control. According to the new
norms, 26% share out of the 74% should be held by an Indian company or an Indian citizen
with Indian management. Further, 100% FDI is permitted in telecom manufacturing, category
I infrastructure providers, ISPs without gateway, call centres and IT-enabled services. Further,
direct or indirect FDI up to 74% is permitted subject to licensing and security requirements
for ISPs with gateways, radio paging operators and category II infrastructure providers.
The relaxation in FDI norms has attracted many foreign telecom majors to the sector. The
presence of foreign players has not only encouraged faster infrastructure development and up
gradation but also has opened up the domestic industry to foreign competition. Since 2004,
there has been a large inflow of FDI in the sector. During 2004-05 and 2005-06, a period
during which the FDI norms were relaxed, the FDI inflow grew by an astounding 300% to
US$ 624 mn in 2005-06 from merely US$ 125 mn in 2004-05. The inflow of FDI has
provided tremendous impetus to the sector in the past few years and the attractiveness of the
sector has kept the FDI inflows growing steadily. During FY09 the FDI in the telecom sector
at US$ 2,558 mn was 103% higher than that seen in FY08 at US$ 1,261 mn. Further, the FDI
in the sector has already reached US$ 2010 mn for a six month period of FY10 (Apr-Sep 09)
and is expected to surpass the total FDI for FY09.
The governments liberalised FDI policies have resulted in several foreign companies
entering into the Indian markets. The influx of foreign players in the Indian telecom industry
has led to capacity creation, and better infrastructure, which in turn has bettered the network
quality. The rise in FDI has also enabled technology transfer, market access and has improved
organisational skills; going forward, FDI could be used for providing telecom services to
rural areas, where teledensity is still very low.
The change in FDI policy that has raised the FDI limit from 49% to 74% for the sector has
made it more attractive for foreign players. In the long run the growth prospects of telecom
players that have foreign partners will improve and other players will get new avenues to
raise capital.
Liberalisation
The relaxation of telecom regulations has played a major role in the development of the
Indian telecom industry. The liberalisation policies of 1991 and the consequent influx of
private players have led the industry on a high growth trajectory and have increased the level
of competition. Post-liberalisation, the telecom industry has received more investments and
has implemented higher technology.
Increasing Affordability of Handsets
The phenomenal growth in the Indian telecom industry was predominantly aided by the
meteoric rise in wireless subscribers, which encouraged mobile handset manufacturers to
enter the market and to cater to the growing demand. Further, the manufacturers introduced
lower-priced handsets with add-on facilities to cater to the increasing number of subscribers
from different strata of the society. Now even entry-level handsets come with features like
coloured display and FM radio. Thus, the falling handset prices and the add-on features have
triggered growth of the Indian telecom industry.
Prepaid Cards Bring in More Subscribers
In the late nineties, India was introduced to prepaid cards, which was yet another milestone
for the wireless sector. Prepaid cards lured more subscribers into the industry besides
lowering the credit risk of service providers due to its upfront payment concept. Prepaid cards
were quite a phenomenon among first-time users who wanted to control their bills and
students who had limited resources but greater need to be connected. Pre-paid cards greatly
helped the cellular market to grow rapidly and cater to the untapped market. Further, the
introduction of innovative schemes like recharge coupons of smaller denominations and life
time incoming free cards has led to an exponential growth in the subscriber base.
Introduction of Calling Party Pays (CPP)
The CPP regime was introduced in India in 2003 and under this regime, the calling party who
initiated the call was to bear the entire cost of the call. This regime came to be applicable for
mobile to mobile calls as well as fixed line to mobile calls. So far India had followed the
Receiving Party Pays (RPP) system where the subscriber used to pay for incoming calls from
both mobile as well as fixed line networks. Shifting to the CPP system has greatly fuelled the
subscriber growth in the sector.
Changing Demographic Profile
The changing demographic profile of India has also played an important role in subscriber
growth. The changed profile is characterised by a large young population, a burgeoning
middle class with growing disposable income, urbanisation, increasing literacy levels and
higher adaptability to technology. These new features have multiplied the need to be
connected always and to own a wireless phone and therefore, in present times mobiles are
perceived as a utility rather than a luxury.
Outlook
The telecom industry in India has experienced exponential growth over the past few years
and has been an important contributor to economic growth; however, the cut-throat
competition and intense tariff wars have had a negative impact on the revenue of players.
Despite the challenges, the Indian telecom industry will thrive because of the immense
potential in terms of new users. India is one of the most-attractive telecom markets because it
is still one of the lowest penetrated markets. The government is keen on developing rural
telecom infrastructure and is also set to roll out next generation or 3G services in the country.
Operators are on an expansion mode and are investing heavily on telecom infrastructure.
Foreign telecom companies are acquiring considerable stakes in Indian companies.
Burgeoning middle class and increasing spending power, the governments thrust on
increasing rural telecom coverage, favourable investment climate and positive reforms will
ensure that Indias high potential is indeed realised.
Profile of Organization
Who we are
We at Sandesh Solutions have best in calls financial advisors who understand and help you to
save utilize and resolve your finances. With best in class technology and support team we
have are and in future have all ways and means to achieve our goals.
Commenced operations on 3rd December 2012 with all three locations. We started with a
small team and within months have proved to be one of proud partners with our client. We at
Sandesh are looking forward to expand our limits to new campaigns such as customer
service, Telemarketing, Backend support, Technical help desk, and so on
We have a best in class technical environment and highly experienced technical team who
prim objective is to make sure productivity and quality of the business is met on every
standard. We dont grade people on level of their qualification or background each individual
is being reward and is appreciated with a token of blessing and goodies to motivate him/her
and help him grow with the organization. We make sure a healthy and wealthy environment is
maintained at work and each individual enjoys what he does how he does and but of courses
Where he does...
About Us
The journey was started with the advent of inflation hitting the market. As we all know that
market has taken a dip for good. It was then our prime pillars have decided to upgrade the
stats and facts by using their utmost skills and experience. This gave birth to sandesh
solutions private limited. We started with a small setup and by the grace and support of the
team we are now at a substantial count and are spreading out karizma day by day moment by
moment.
Our Partner
We are proud partner with the renounced brand ruling in the market since ages IDEA
CELLULAR LIMITED, ICICI PRUDENTIAL LIFE INSURANCE COMPANY LIMITED,
TATA TELESERVICES LIMITED, HDFC LIFE LTD...
Company Details
Tata DOCOMO
Tata Teleservices Limited
Tata DOCOMO is Tata Teleservices Limited's telecom service on the GSM platformarising out of the Tata Group's strategic alliance with Japanese telecom major NTT
DOCOMO in November 2008. Tata Teleservices has received a license to operate
GSM telecom services in 19 of India's 22 telecom Circles-and has also been allotted
spectrum in 18 telecom circles. Of these, it has already rolled out services in all the 18
Circles that it received spectrum in from the Government of India-Tamil Nadu,
Kerala, Orissa, Karnataka, Andhra Pradesh, Maharashtra, Mumbai, Madhya PradeshChhattisgarh, Haryana-Punjab, Kolkata, Rest of West Bengal, Jharkhand, Bihar, UP
(East), UP (West), Gujarat, Himachal Pradesh and Rajasthan.
Tata DOCOMO has also become the first Indian private operator to launch 3G
services in India, with its recent launch in all the nine telecom Circles where it bagged
the 3G license. In association with its partner NTT DOCOMO, the Company finds
itself suitably positioned to leverage this first-mover advantage. With 3G, Tata
DOCOMO stands to redefine the very face of telecoms in India. Tokyo-based NTT
DOCOMO is one of the world's leading mobile operators-in Japan, the company is
the clear market leader, used by nearly 55 per cent of the country's mobile phone
users.
ICICI Prudential
Life Insurance Company Limited.
ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a
premier financial powerhouse, and prudential plc. A leading international financial
services group headquartered in the United Kingdom.
ICICI Prudential was amongst the first private sector insurance companies to begin
operations in December 2000 after receiving approval from Insurance Regulatory
Development Authority (IRDA).
Strengths:
The kind of subscriber base it has in the Indian market.
It has the 2nd highest market share in India .
It has a 2nd highest subscriber base in India 1st being airtel
Its strong advertising strategies and impact on people
Its Indias 3rd biggest mobile carrier
The brand name it has in the Indian market
Weaknesses:
Low RHD
Less man power
Rural India unable to relate to the brand
Poor network coverage in rural area.
Opportunities:
Emerging markets and expansion abroad
Innovation
Product and services expansion
Growing data business and 3G auctioning
Growing Enterprise solution market
Large capital can be raised by listing Vodafone on Indian Stock Exchange (IPO)
Tower sharing business with Indus Towers
Threats:
Highly competitive
Extremely high
CHAPTER 1
1.0 Introduction
This chapter presents the background of the study, statement of the problem, purpose of the
study, objectives of the study, research questions, scope of the study and the significance of
the study.
Mobile phone tele-marketing refers to direct marketing to consumers via cell phones.
Technologies such as sms, mms, Bluetooth and infrared are used to distribute commercial
content to mobile phones. The pitch by Richard Mukoma, Daily Nation July 13 2010.
This commercial content includes advertising a new product, information about a sale,
information about products and services, sales promotion and other commercial activities. It
is also important to note that mobile phones can also access the internet making them very
versatile mediums
The tele-marketing platform gives companies an opportunity to reach a large number of
people, for example, in Eat Africa; there are 50 million mobile phone subscribers and at least
15 million web users. It was of crucial importance to investigate whether the platform could
be productive and whether it could yield desirable results, for instance, increased revenue
streams in a market like Pune.
Sales volume is defined as the quantity of total sales achieved in units or dollars. Sales
volume explains important product development concepts since it provides the stakeholders
with the figures on which analysis can be based to project further development. Therefore, the
study was investigating whether tele-marketing promotes the quantity of goods and services
sold by IDEA. For example, now that consumers can purchase airtime directly from their
mobile money accounts, has this led to an increase in the quantity of airtime purchased by the
consumers? Another important question that was considered is whether tele-marketing has led
to an increase in the customer base. Have the IDEA website and the IDEA facebook page led
to an increase in the number of customers who have decided to subscribe to IDEA or use
IDEA products?
The case study was IDEA which is a telecommunication company in India. It offers a wide
range of communication solutions like calling services, sms and internet services. It also
offers services like mobile banking and money transfer services through mobile money.
IDEA is one of the pioneers of tele-marketing in the country and it has managed to harness it
in different forms, for example,IDEA has a fully functional website. IDEA being a
telecommunications company has also harnessed e-marketing through the mobile phone
platform.IDEA uses sms and its customer service center to communicate directly with its
customers, for instance, IDEA regularly sends its customers, sms updates of its current
promotional activities. One of its current promotional activities is that consumers subscribed
to IDEA can access facebook on their mobile phones for free.
That being the case, the study was seeking to investigate whether the investment in emarketing is a worthwhile venture and what companies can achieve by investing in it. The
study also critically examined how receptive the Penne market is to such a platform.
CHAPTER 2
LITERATURE REVIEW
2.1 E marketing
It is also known as internet marketing, digital marketing, online tele-marketing or web
marketing and it is the tele-marketing of products and services over the internet. Internet
marketing is considered to be broad in scope because it not only refers to marketing on the
internet, but also includes marketing done via e mail and wireless media. Digital customer
data and electronic customer relationship management (ECRM) systems are also often
grouped together under internet marketing.
Lancaster and Withey 2006, the growth of electronic marketing such as the internet, email,
mobile phones and so on has allowed information to become more rapid and global. The
explosion in wireless technologies has led to a massive increase in mobile communication
and as a result the growth of mobile tele-marketing and advertising. The increased use of the
internet and particularly websites as a promotional tool for individuals and companies has
offered many marketers a further effective tool resulting in more control and evaluation of the
communications.
Hughes and Fill 2007, the pace of technological change is facilitating an increasing variety
of communication tools which can be used for marketing purposes. This includes so called
new media channels such as the internet, email and mobile phones and the changes in the
use of more traditional media forms. The benefits of the internet, extranet and intranet
applications need to be fully understood and their strategic role in the way in which
organizations can reduce costs, improve communication effectiveness and provide value
added services to consumers, employees and business partners is highly significant.
2.2 components of e marketing
th
refers to direct marketing to consumers via cell phones. Technologies such as sms, mms,
Bluetooth and infrared are used to distribute commercial content to mobile phones. Mukoma
suggested that with the growing popularity of mobile phones, mobile phone tele-marketing
has the potential to be the fastest growing and most targetable method of brand marketing.
Dushinski 2010, points out that mobile technology not only lets marketers reach customers
where they are, it allows them to engage mobile users by targeting their immediate and
specific needs. He also suggested that it is giving users what they want when they want it and
that is the unique value proposition of mobile phone tele-marketing and businesses, agents
and non profit organizations of all types can have successful campaigns without breaking the
bank.
Mobile marketer 2013, brands and marketers can use the mobile channel to increase their
brand affinity, recognition and customer loyalty. The attraction to mobile is the channels
ability to acquire new customers, increase customer loyalty and generate brand awareness
and affinity, the ability to monetize content and the fact that it lets marketers provide
convenience to consumers.
Fill 2007, mobile phones provide another logical platform for marketers to channel targeted
text (sms) messages to millions of users. Additionally, video technology is beginning to allow
TV programme transmission through mobile phones creating other advertisement
opportunities. For example, IDEA sends its users information about its current promotional
activities thus giving them up to date information that motivates consumers to purchase more
of the companys services like IDEA zone.
Greco 2007, there are unique set of limitations that mobile branding presents. Mobile users
are besieged by constant distractions, noisy environments and low bandwidth. This causes
them to move through the day in a state of discontinuous interaction. So although design is
king in the mobile branding world, it must be used efficiently and intelligently. Content has to
be brilliant, easy and fast. Yet from these substantial limitations, new creative opportunities
continue to emerge and forward thinking brands are beginning to reap the benefits. The
mobile phone laces marketers right inside persistent computing. They can catch people
everywhere on the internet, in train stations, on the phones. They can communicate with
consumers on every possible level.
Or it refers to the quantity or number of goods sold or services rendered in the normal
operations of a firm in a specified rendered in the normal operations of a firm in a specified
period.
Jobber and Lancaster 2000, state that the selling process is complicated by the fact that
there are often many alternative ways in which each objective can be achieved, for example,
an increase in revenue of 10% can be achieved by increasing prices, increasing sales volume
at the company level (market share) or increasing industry sales. This shows how an increase
in sales volume at the end of the day is expected to increase the revenue flow into the
company.
Jobber 1997, sees sales volume as a type of sales quota and states its advantages as easy to
calculate and administer and simple to understand. The disadvantages are that emphasis is
only on sales volume but not on profits, it leads to imbalances in selling activity (for example,
stress volume sales at the expense of non selling activities).
Nobilis 2010, sales volume is the core interest of every organization that is based on sales and
profit. When the volume goes up, everything else is manageable (margin, profit, numerical
distribution) but when the volume goes down it is difficult to manage the business
parameters. Sales do not go up or down just like that, the company manages and directs its
sales volume through the portfolio and channels. There different ways that the company can
use to influence volume increase.
Hatton and Adroyd 1995, discuss the growth stage in the product lifecycle and how sales
volume increases at this stage. The conditions of market change such as high prices and
profits attract new firms and resources to the field. Supply and competition increase, making
demand more price elastic. A competitive feature of this stage is the emphasis on branding,
used to differentiate the products and resist the tendency towards greater price sensitivity.
This increased promotional activity in the industry also changes the conditions of demand
and so results in a general increase in generic product demand as new consumers increase
sales volume, costs may fall with economies of scale and prices do fall. The scholars also
discuss more effective ways of increasing sales volume. A marketer wishing to sell more of a
price inelastic product shouldnt reduce prices to increase sales. Although more will be
bought at lower prices, it will not be much more and total revenue will fall as sales increase.
For this category of product, the marketers would have to use the non price variables of the
tele-marketing mix and develop strategies to increase sales by means of promotions,
advertising or increased distribution.
Hill and O Sullivan 2004, providing a new product satisfies customer needs, it will be
fuelled by repeat purchases and word of mouth publicity and sales will start to climb rapidly
as a large number of new customers are attracted to the product for the first time. Profits start
to be made as sales revenue increase faster than costs. Confident that the product is likely to
be a success, competitors start to enter the market, copying much of the pioneers basic idea
but perhaps introducing new product features too. As the total size of the market is growing,
the new competitors can increase their sales volume by attracting new customers than
undercutting on price so they too are likely to be able to trade profitably. Only when the
marketer starts to move toward maturity and fewer new customers are buying the product for
the first time is price competition likely to increase, undermining levels of profitability.
Smith 1995, good sales forecasting provides targets and yardsticks for measurement. Sales
forecasts can be drawn up by sales representatives for each month and eventually put together
to form an overall sales representative forecast. Sales volume as a percentage of sales
potential is a more sophisticated forecasting model which takes into account a host of factors
including prices, competitors and the state of the economy.
2.5 conclusions
Tele-marketing is a tool that seems to provide new and exciting opportunities to marketers.
Marketers can easily reach consumers, communicate with them and immediately get their
feedback at low cost compared to other media. The markets seem to be open to technology
and if harnessed well, tele-marketing can reap significant benefits to marketers. Before
venturing to use tele-marketing tools, marketers must scrutinize each local market to find out
what tool is most important for that particular market and customize this accruing to the
markets needs. Tele-marketing may also not be effective for all markets so marketers should
consider this and take appropriate action. When using tele-marketing tools, its important to
take into consideration the rights of consumers and use these tools in a way that does not
offend or turn them off.
CHAPTER 3
METHODOLOGY
Introduction
This chapter describes the research design, study population, the sampling design, sources of
data and the various data collection methods and analysis that will be used in the research.
The limitations of the study were also presented.
3.5.1 Questionnaires
A questionnaire refers to a set of questions arranged logically and systematically to achieve
specific research objectives; some questions were open ended while others were closed
ended.
3.6.1 Survey
This refers to collecting information from people through a face to face meeting where the
respondents answered different questions and it was facilitated by an interview guide.
3.6.2 Observation
It refers to collecting information by viewing or observing the respondents, their actions and
situations. In this case, the researcher was observing respondents to collect information on
their reaction to certain tele-marketing services, for instance, when they get SMS from IDEA
regarding certain promotions going on, how do they react? It may be anger for being sent an
unwarranted SMS or joy at being able to save some money through the promotion.
CHAPTER 4
Introduction
In this chapter, the findings of the study are analyzed and presented according to the research
questions and study variables. The relationship between tele-marketing and sales volume is
also established. The purpose of the study was to establish the impact of tele-marketing on
sales volume in the telecommunication industry. The analysis aimed at satisfying the research
objectives which were:
1. To establish the relationship between e-marketing and sales volume in Sandesh Solutions,
Pune.
2. To establish the different services offered through e-marketing in Sandesh Solutions, Pune.
3. To assess how customers are adapting to e-marketing and the challenges associated
with e-marketing
Frequency
% Response
Female
18
46.2
Male
21
53.8
Total
39
100
Frequency
% Response
Primary
2.6
Secondary
12.8
Diploma
10.3
Degree
29
74.4
Total
39
100
Frequency
% Response
10-20
21-30
30
76.9
31-40
20.5
41-50
2.6
Above 60
Total
39
100
Frequency
% Response
Married
12.8
Single
34
87.2
Total
39
100
From figure 1, its indicated that 56% of the respondents have been IDEA customers between
0- 5years. 39% of total respondents have been IDEA customers for 6-10 years and 5% of
respondents have been customers for over 10years. This shows that a majority of MTN
customers joined the network in the past 5years.
Frequency
% Response
Yes
34
87.2
No
12.8
Total
39
100
Frequency
% response
Always
18
46.2
Sometimes
19
48.7
Never
2.6
Not sure
2.6
Total
39
100
encounter tele-marketing services and 2.6% are not sure. This therefore means a big
percentage
of IDEA customers regularly encounter or use tele-marketing services.
Figure 4: Showing whether the current tele-marketing services offered by IDEA make
it competitive
Frequency
% Response
Yes
30
76.9
No
23.1
Total
39
100
Frequency
% Response
Computer
2.6
Mobile phone
21
53.8
Both
17
43.6
Other
Total
39
100
Table 8 shows that the majority of respondents use or encounter tele-marketing services
through their phones; they are 53.8% of the total population. A fairly large number of
respondents use both computers and mobile phones to access/encounter tele-marketing
services; they make up 43.6% of the population. Only 2.6% access/encounter tele-marketing
services through computers only. There was no other media that respondents were familiar
with that they could use to access these services. This could indicate that mobile phones are
the most important media to reach IDEA customers. This could be because they are cheap
and a lot of people can access them.
Figure 5: Showing how respondents use tele-marketing services offered
Number of respondents
% Responses
Yes
35
89.7
No
10.3
total
39
100
Frequency
% Responses
Yes
21
53.8
No
18
46.2
Total
39
100
and the responses from IDEA are faster. Some respondents believe that the different telemarketing platforms offer them a wider range of ways to communicate or give feedback, for
instance, through calling, sending email or leaving messages on the IDEA facebook page.
Most respondents who do not believe that the tele-marketing services have facilitated easier
feedback explained that IDEA lines were always congested and thus communication between
IDEA and the respondents is 1 way. Some also believe IDEA does not respond to customers
on time.
Frequency
% Responses
Yes
20
51.3
No
19
48.7
Total
39
100
Frequency
% Response
Yes
19
48.7
No
20
51.3
Total
39
100
Majority of the respondents agree that it is not difficult to access tele-marketing services;
they are 51.3% of total respondents. Quite a big number, 48.7% to be exact disagree and
they believe that it is difficult to access tele-marketing services, mostly because of poor
network services, slow internet connection and congestion of IDEA lines.
Table 13: Showing whether some tele-marketing communications from IDEA have
been a nuisance/bothersome
Nuisance/bothersome
Frequency
% response
Yes
16
41
No
23
59
Total
39
100
Ideas robust pan-India coverage is built on a network of over 100,000 2G and 3G cell sites,
spread across over 55,000 towns in India.
Using the latest in technology, Idea provides world-class service delivery through the most
extensive network of customer touch points, comprising nearly 4,500 exclusive Idea outlets,
and over 7,000 call centre seats. Ideas customer service delivery platform is ISO 9001:2008
certified, making it the only operator in the country to have this standard certification for all
22 service areas and the corporate office.
Idea has consistently stayed ahead of the industry in VLR reporting. Ideas thought leadership
on Mobile Number Portability (MNP) has enabled it to stay as the top gainer with the highest
net gain. Every 4th mobile user who exercises choice through MNP, prefers Idea.
Idea offers a range of high-speed mobile broadband devices including Android based 3G
smartphones, dongles etc. Ideas wide portfolio of 3G smartphones offer the latest in 3G
applications and high-end data services such as Idea TV, games, social networking etc. at
affordable prices.
Idea has been a pioneer in introducing customised product offerings for segmented
customers. It is the first mobile operator to introduce innovative value added services in the
Indian telephony market, and has remained ahead of the industry in data product offerings.
Idea has received several national and international recognitions for its path-breaking
innovations in mobile telephony products and services. Idea won the prestigious NDTV
Business Leadership Award in the telecom category for its solid, consistent performance in
2012. It was the winner of ET Telecom Awards 2012, in the categories Customer
Experience Enhancement, Excellence in Marketing, and Innovative Products. Idea also
won the Best Ad Campaign of the Year award for the popular Honey Bunny campaign at the
Tele.Net Telecom Awards 2012.
emails. Mobile phone tele-marketing has been used on many levels, sometimes IDEA sends its
customers sms of current promotional activities, it also provides mobile internet and advertises
through this forum., IDEA partnered with Google to provide its customers with a virtual market
4.5.9 How tele-marketing works with forms of marketing and communication that
IDEA uses
The respondent explained that communications are placed on the tele-marketing platform
after they have already been communicated through other media like newspapers, TV and
radio. Thus tele-marketing serves to reach those people who have not been able to access the
traditional media.
CHAPTER 5
5.0 Introduction
This chapter presents the summary discussion, conclusion and recommendations of the
findings. The summary focuses on the findings in relation to the objectives of the study. The
summary is followed by the conclusion, which is also based on the findings of the study and
lastly the recommendations.
5.2 Conclusion
Most IDEA customers are familiar with tele-marketing services but the most popular
platforms are social network marketing and mobile phone marketing. This tends to suggest
that the market is open to tele-marketing services but most companies have not exploited
them yet they seem to be very effective means of communicating and interacting with
customers. The companys task is to try and optimize these platforms that customers enjoy
and seem to be interested in and at the same time maximize the revenue streams from these
platforms.
5.3 Recommendations
IDEA should reduce the information gap between the company and its customers. They
should educate their customers on how to effectively harness tele-marketing services so as to
enable customers to easily communicate their opinions or comments and complaints. This
will ensure there is two way communications between the company and its customers thus
improving the relationship between IDEA and its customers.
Since most customers use or encounter mobile phone tele-marketing and social network
marketing a lot than the other platforms, IDEA should fully exploit these two platforms. They
should focus on generating mobile phone content that will attract customers and at the same
time maximize the social network platform because this is where most customers seem to be
active.
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Hughes and Fill, Marketing Communication, CIM, Butterworth Heinemann
Beamish and Ashford, Marketing Planning, CIM, Butterworth Heinemann
Geoff Lancaster and Frank Withey (2006-2007), Marketing Fundamentals, CIM, Butterworth
Heinemann
David Jobber (1997), The CIM Handbook of selling and sales strategy, Butterworth
Heinemann
William C. Monarief and Shannon H. Shipp (1997), Sales Management, Addison Wesley.
PR Smith (1995), Marketing communication an integrated approach, Clays LTD, St. Ives
PLC.
Angella Hatton and Mike Adroyd (1995), Economic Theory and Marketing Practice,
Butterworth Heinemann.
Liz Hill and Terry O Sullivan (2004), foundation Marketing, prentice Hall.
Kotler Phillip and Gary Armstrong (2010), Principles of Marketing, Pearson Prentice Hall.
th
Kui Kinyanjui, Tuesday July 27 2010, kenyas techpreneurs take on the world with mobile
software apps, Business Daily
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APPENDICES
Female
Secondary
Diploma
Degree
Other,specify
3. What is your occupation?
.
4. What is your age?
10-20
21-30
31-40
41-50
Above 60
5. What is your marital status?
E mail marketing
Websites
No
Please tick the tele-marketing services that you access/ encounter in your day
to day interactions with IDEA.
Social network marketing
E mail marketing
IDEA website
Sometimes
Never
Not sure
Does accessing tele-marketing services influence the number of times you use
IDEA services?
Yes
No
..
3. Which media do you use to access tele-marketing services?
Computer
Both
How do you use tele-marketing services
4. offered?
Interaction
Accessing information
mobile phone
other (specify)
work/ education
other (specify) .
No
6. Why would you like to experience/ not experience tele-marketing services from
other companies?
...
7. Through the tele-marketing services offered by IDEA has it become easier to
communicate with IDEA in regard to complaints about services or expression of
satisfaction?
Yes
No
...
No
No
..
4. Have some e marketing communications from IDEA been a nuisance/
Bothersome?
Yes
No
.
Thank you For your Time and corporation.