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CHAPTER – I

INTRODUCTION

Customer is the king, but that doesn’t mean you are not. The new rule says body is

a king. It is a networking world – the society of persons. Management of promotional is

the latest tools from the information technology repertoire which enables, promotes and

develops business towards better profitability

Marketing is used to identify the customer, satisfy the customer, and keep the customer.

With the customer as the focus of its activities, it can be concluded that marketing

management is one of the major components of business management. Marketing is

evolved to meet the statics in developing new markets caused by mature markets and

overcapacities in the last 2-3 centuries. The adoption of marketing strategies requires

businesses to shift their focus from production to the perceived needs and wants of their

customers as the means of staying profitable.

The four main fields of the Marketing mix. The term "marketing mix" was first

used in 1953 when Neil Borden, in his American Marketing Association presidential

address, took the recipe idea one step further and coined the term "marketing-mix". A

prominent marketer, E. Jerome McCarthy, proposed a 4 P classification in 1960, which has

seen wide use. The four Ps concepts are explained in most marketing textbooks and

classes.

Elements of the marketing mix are often referred to as 'the four Ps':

• Product - A tangible object or an intangible service that is mass-produced or manufactured

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on a large scale with a specific volume of units. Intangible products are service based like

the tourism industry & the hotel industry or codes-based products like cell phone load and

credits. Typical examples of a mass produced tangible object are the motor car and the

disposable razor. A less obvious but ubiquitous mass produced service is a computer

operating system. Packaging also needs to be taken into consideration.

• Price - The price is the amount a customer pays for the product. A number of factors

including market share, competition, material costs, product identity and the customer are

perceived value of the product determines it. The business may increase or decrease the

price of product if other stores have the same product.

• Place - Place represents the location where a product can be purchased. It is often referred

to as the distribution channel. It can include any physical store as well as virtual stores on

the Internet.

• Promotion - Promotion represents all of the communications that a marketer may use in the

marketplace. Promotion has four distinct elements: advertising, public relations, word of

mouth and point of sale. A certain amount of crossover occurs when promotion uses the

four principal elements together, which is common in film promotion. Advertising covers

any communication that is paid for, from cinema commercials, radio and Internet adverts

through

Print media and billboards. Public relations are the communications which are not

directly paid for and includes press releases, sponsorship deals, exhibitions, conferences,

seminars or trade fairs and events. Word of mouth any apparently informal communication

about the product by ordinary individuals, satisfied customers or people specifically

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engaged to create word of mouth momentum. Sales staff often plays an important role in

word of mouth and Public Relations (see Product above).

Broadly defined, optimizing the marketing mix is the primary responsibility of

marketing. By offering the product with the right combination of the four Ps marketers can

improve their results and marketing effectiveness. Making small changes in the marketing

mix is typically considered to be a tactical change. ParmBains says making large changes

in any of the four Ps can be considered strategic.

Promotional Strategies: Promotion is the method you use to spread the word about your

product or service to customers, stakeholders and the broader public. Once you’ve

identified your target market, you’ll have a good idea of the best way to reach them, but

most businesses use a mix of advertising, personal selling, referrals, sales promotion and

public relations to promote their products or services.

Advertising

Selling

Sales Promotion

Public Relations

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NEED FOR THE STUDY

I. Today’s companies are facing the toughest competition ever, so the companies can

outperform the competition, they move from product and sales philosophy, they

have come up with more effective and sophisticated value as means to gain

competitive advantage.

II. The main reason behind doing this research is to obtain information regarding the

customers the customers of the product, and to motivate the customers who want to

purchase the insurance product.

III. This survey will fortunately help the company in measuring the brand awareness,

and improves the promotional strategy, through the recommendations suggested. It

will be beneficiary for the organization in rural marketing decision making.

IV. Recognizing the importance of promotional strategies and retaining customers is

very essential for a company.

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OBJECTIVES OF THE STUDY

This study is conducted with an aim to examine “Promotional Activities of

Adishwar Auto Diagnostics Pvt. Ltd (Mahavir Motors) in Visakhapatnam and customers

attitude towards all the products of Adishwar Auto Diagnostics Pvt. Ltd (Mahavir Motors).

The following are the specific objectives:

I. To study the awareness of the promotional activities and how it functions in

Adishwar Auto Diagnostics Pvt. Ltd (Mahavir Motors).

II. To understand the customer purchase behavior based on the promotional activities

III. To know the role of promotional activities of Adishwar Auto Diagnostics Pvt. Ltd

(Mahavir Motors) for the retention of the customers.

IV. To know how the company is achieving the competitive advantage through

promotional activities.

V. To offer suggestions for improving Promotional places of Adishwar Auto

Diagnostics Pvt. Ltd (Mahavir Motors) for increasing sales of Mercedes Benz

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METHODOLOGY

RESEARCH METHODOLOGY

Sample Size: 100 (customers are taken as the sample)

SAMPLING TECHNIQUE

Fact expressed in quantitative from can be termed as “data”. Data may be classified as

either “primary data or secondary data”.

PRIMARY DATA:

The primary data was collected with the help of a structural questionnaire targeting the

customers. The questionnaire consists of 15 and these questions involve the impact of

promotional activities on Adishwar Auto Diagnostics Pvt. Ltd (Mahavir Motors) sales as

well as customer purchase behavior and the benefits more which they are desired.

SECONDARY DATA:

The secondary data implies the data that is already available, collected, analyzed, and other

information in form reports, journals, newspapers and magazines. The secondary data

required for the study is obtained from the main office and websites.

SOURCES OF DATA:

After the objective has been stated clearly, the next task is to collect relevant data

regarding the research study. The data regarding the motor field in Indian scenario and

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Adishwar Auto Diagnostics Pvt. Ltd (Mahavir Motors) are collected from the internet. And

other relevant data are collected from internet. Although there are some data from

newspaper and magazines but the major portion is given by the company i.e. the Marketing

Manager of the department Most of the data and figures are collected from the record of

the company. In fact the above collected data is not enough so there is need of primary

source of data. So the primary data involved data collected from customers.

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LIMITATIONS OF THE STUDY

Some of the limitations felt and faced are;

I. The study will be undergone within the limited period of only 60 days

II. The major limitation in my study is, as most of the customers are illiterates they are

scared to answer the questions correctly.

III. The area selected is limited to Visakhapatnam only. The findings are regional and

do not represent state or country.

IV. The data which is used in the study is given by the Guide and which is assumed to

be true.

V. There is a possibility of biased answers from the respondents hence the information

collected might not be an accurate one

VI. Lack of customer’s viability for the interview.

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SCHME OF PRESENTATION

CHAPTER I

● Introduction

● Need for the study

● Objectives of the study

● Methodology

● Limitations of the study

CHAPTER II

● Industry Profile

● Company Profile

CHAPTER III

● Promotional Mix: An Overview

CHAPTER IV

● Analysis of Survey Results on Market Promotion: Customer’s Perspective

CHAPTER V

● Summary

● Findings

● Suggestions

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CHAPTER – II
INDUSTRY AND COMPANY PROFILE

AUTOMOBILE INDUSTRY IN INDIA

In 1769, a French Engineer Captain Nicholas built the first load vehicle propelled

by its own power. It was a 4 wheeler vehicles fitted with steam engine. It attained a speed

of about 2 Y 2 MPH for 15 minutes. In 1880, German and French efforts developed an

internal combustion engine vehicle. The present day automobile is the development of this

vehicle. In 1885, Bent in Germany built a tricycle propelled by an internal combustion

engine in Germany. In 1885-86, GottliefDaimlet patented an internal combustion engine in

Germany.

In 1895, Charles E. Duryes and Elwood and J. Haynes of USA developed an

experimental automobile. In this year Panchard and Levamor in France also developed a

car with minor modifications and incorporated the chief feature of the automobile, as we

know it today. In 1890-95, the European designers were also active in the development of

the automobiles. In 1895, European designers purchased engine from France and had if

placed in front of chasis; housed on to a sliding gear; transmission and incorporated brake

pedal, clutch and accelerator. In 1900, the design of the automobile was so improved that it

awakened the public to the fact that this new form of the transportation was really

practical. In 1906, many of the great names around which the world’s largest

manufacturing industry was to be built in America had already begun to manufacture the

automobiles vehicle Packard, Auto car olds Mobile, While, Bulk Over Land, Ford,
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Cadillac etc., All these names were on motor vehicles before 1905. Pirer-Arrow,

Locomotives, Maxwell, Franking and peerless were also important during that time in the

technical and commercial development of the motor vehicles.

In 1920, there was a gradual change and refinement in automobile design. It was

clear by the fact that the spark ignition gasoline engine was the power plant of the modern

motor vehicle water–cooled engines was almost universal. The sliding gear transmission

had established itself as predominant. The puppet valve was used in almost every engine

design. Engines were also located in the chassis. In this period the major improvements

were made in very carry feature. The designers tried to produce a vehicle which functions

at all times under all conditions; which is comfortable to ride and easy to operate.

Increased life of tires, Independent front wheel suspension, and four wheels hydraulic

breaks, high compression ratio, higher power, use of new materials and hundreds of other

changes have been made. In recent years, the passenger’s car chassis construction has been

forced to shape itself to re designed bodies, while in the field of truck design, body- chassis

problems began to get simultaneous consideration greater than ever before. Fluid play

wheels, freewheeling over drives, automatic transmission and many other newer features

are in the today’s cars. The diesel engine was invented only a few years after the spark

ignition engine car had engine in the years has provided the owner with cars that are safe,

easier to drive, move reliable and comfortable.

HISTORY OF AUTOMOBILE IN INDIAN SCENARIO

These Manufactures continue to maintain their monopoly as the regulations that

then existed in the country did not permit any reputable overseas automobile manufacturer

to establish company here. While elsewhere in the world survival for automakers depended

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on introduction of new vehicles with better technology, our country was a mute spectator

as all these technological advances were protected by Govt. and monopolist regime. The

Indian automobile industry was at the threshold of the transition that affected all the

segments from two wheelers to tractors. The entrances of MNC’s by the infusion of

modern technology have necessitated this tradition. In the coming years all segments in the

industry will face challenges on accounts of either over supply prize war or a shift in

consumer’s preferences This is likely to be felt more intensively in passenger car segments

than in other segments in the industry with 25% growth of $ 8 billion. Indian automobile is

one of the fastest growing industries in the world. The major auto manufacturers are well

aware of the galloping growth rate and most of them have rushed to set up company in

India to grab a slice of the potentially gigantic market. The automobile industry, which

has long stifled in the era of the controls, is emerging as a driving force for the engineering

sector with almost all the global leaders in the industry setting up a company in India.

There is an old saying “take a pan with some water, put a frog in it and start heating it, frog

will never realize that with the rise in temperature it is nearing its death but if you put the

frog in a pan of hot water, it will at once jump out”. Indian industries are in a similar

situation, before liberalization, they never realized that they are nearing death. It was only

after the liberalization they realized. In the coming years all segments in the industry will

face challenges on account of either over supply, price wars are a shift in consumer’s

preferences. This is likely to be felt more intensively in the passenger car segments of the

industry. The trend in India is being changed by the so-called status, need and necessity the

people who previously went on bikes now go on cars not just one particularly car but

choice of cars among them. So, the need is to upgrade in the sales of cars in India, which

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was pretty low. The automobile is not only an issue of consumption and consumers. The

government regards it as a sector that drives an entire economy forward.

LIBERALISATION POLICY

In 1991, The Government of India announced an economic policy package and

initiated measures, which may be said to have brought about a qualitative change in the

pattern of government business relationship, and statically alerted the character of business

of environment. The policy changes involve far reaching structural reforms aimed at

leading Indian trade and industry away from a regulatory and protective regime to market

oriented, competitive environment. Which the entry of MNC’s growth of foreign

companies, domestic product markets is being increasingly subjected to forces of

competition. It was in july1991 that the liberalization of economic policy started in real

terms. India opened its gates to foreign investors who were seriously looking for untapped

markets to prop up the sagging. Most of the automobiles MNC’s entered into joint ventures

with existing Indian automobiles manufacturers and simply used up the existing facilities

to assemble their cars. So, the entry of MNC’s into the Indian protected market created a

wide range of choice for the buyers with latest models and enhanced features for the

ultimate satisfaction of the customers. Very soon one can expect a multitude of ears

specially designed and priced for Indians to hit the market. The new competitors are

offering product technologies that are far more advanced than the MARUTI of 800s

vintage. Many say that competition brings out the best in the people by posing challenges

to all the old and new in the automobile industry.

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ENTRY OF CARS IN INDIA

India until 1950 has an automotive industry of its own. Previously cars were imported from

countries like U.K, Belgium, France, Italy, Germany, and Canada, & U.S, The cars, which

British India used on its road, were Buick, Plymouth, Pontoon Ford, Dodge, Rolls Royce’s

for the elite class. Morris Minor, Limo etc, didn’t stay for much longer period as the

government had laid restrictions on imports to conserve foreign exchange. In 1950, India

came out with its first car from Hindustan Motors, by the name ‘Baby Hindustan”, later

“Land Master’ and “Ambassador later came out with different models Mark I, II and IISI.

The latest “Nova” version of present age is that of mark IV version, another car

Contessa Classic was a real driving one in the company. The other players of this car

segment were Standard Motors originally in collaboration with Vanguard Motors produce

the Standard Vanguard Motors. Later they came out with models of Standard 8, Standard

10, Standard 2000, Standard payment and Standard Gazelle. They then shifted to Standard

Herald with mark I, II and IV versions. Lastly, we had Fiat in a joint venture with

premier Automobiles Limited came out with its first model of Fiat 1100 followed by Fiat

Elegant, fiat Minnicent, Premier, premier Padmini etc. the Ambassador and the Fiat were

the front runners with Herald coming in the third place. Until 1981, there were the three

dominated players in Indian scene. They are Hyundai Motors, Premier Automobiles &

Standard Motors.

MARUTI ENTRY:

The first car came in 1984 with the entry of Maruti Suzuki. With the advent of Maruti

Suzuki, Indian customers got a taste of modern technology, reliability and an awareness of

international quality standards. The Indian automobile industry, which had never

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faced competition due to policy, protected and closed economy was still slumbering and

was slow to react. A limited number of manufacturers continued to provide old and out

dated technology. Despite the rumbling in the industry which was started by the entry

of Maruti Suzuki, the existing auto manufacturers did very little to upgrade their old and

outdated technology. Hence Maruti became the predominant player in the Indian passenger

car market. But sadly owing to the foreign exchange constraint Maruti could not keep

place with global technological advances. In spite of joint venture with one of the reputed

manufacturers, India did not again much by way of technological advancement. Many of

the auto components including the gearbox were still imported negating much of the

advantage. Otherwise India would have gained by a technology transfer.n1984,

MarutiUdyog Limited, over took all the dominate players with its attractive prices and with

introduction of fresh designs by1998, Maruti controlled 84% car market with its models

Maruti-800, Omni and Zen.

In1993, the opening up of the economy attracted several international manufacturers to set

up production facilities in India.

ENTRY OF PREMIUM CARS

The premium car segment was chosen by the new entrants as part of a market entrance

strategy to create brand awareness. Today we have the unusual spectacle of how many cars

chasing too few Indians for a country, which used to manufacture1.81 lakh cars per annum

in 1991.India today produces over 7.8 (2003) cars per annum, The Indian market has now

changed from sellers market to buyers market. The first MNC’s car to Indian market was

South Korea major DAEWOO. It’s Ceilo, in competition with Maruti Esteem

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followed by Peugeot 3091 Manufactured by premium automobiles in collaboration with

Peugeot of France.Premier again had a tie up with Fiat of Italy to launch Fiat- UNO in

competition with Zen. Mercedes tied up with Telco; General Motors tied up with

Hindustan Motors to bring out Opel Astra : Ford with Mahindra & Mahindra for Ford Ikon

: Mitsubishi with Hindustan Motors to produce “Mitsubishi Lancer” Honda’s tie up with

Hero Motors for the making of Honda City. Hyundai entered India through a 100% owned

subsidy to manufacture Hyundai Santro Followed by Telco’s own indigenous car Tata

Indica: finally Toyota with its version of Qualis all set to use the existing facilities and to

prop up the sagging global passenger car market. As mentioned earlier the premier car

segment was chosen by the new entrants are part of the market entrance to create brand

awareness. Almost all the entrants now have clear plans of introducing new products in the

mid size segments as step towards capturing volumes to make the business viable.

Customers tend hold back their purchase decisions in anticipation of new car launches,

price cuts, the glamour of millennium car and the other factors. All most all the entrants

created their own brand image for an average Indian car buyer; the entry of MNC’s is

definitely a big boon. The customer is getting the best technology on par with other

developed countries.

HISTORY OF THE AUTOMOBILE

In 1769, a French engineer CAPTAIN NICHOLAS built first load vehicle propelled by

its own power. It was a three-wheeler, four-seated vehicle fitted with steam engine. It

attained a speed of about 21/2 M.P.H. for 15minutes. In 1880, German &French efforts

developed as internal combustion engine vehicle. The present day automobile is the

development of this vehicle.

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In1885, Benz in Germany built a tricycle propelled by an internal combustion engine. In

1885-86, GOTTLIEF DAIMLET patented an internal combustion engine in Germany. In

1985, CHARLES E. DURYES and ELWOOD and J.HAYNES in America developed

experimental automobile. In this year PANCHARD and LEVAMOR in France also

developed a car with minor executions, in corporate. The chief features of the automobile

as we know it today. In1890-95, the European designers were also active in the

development of automobile. In this period the Major developments were made in every

carry features. The designers tried produce a vehicle which will function at all times under

all conditions and which were comfortable to ride and easy to operate. Increased life of

tires, independent, front wheel suspension, four wheeler hydraulic brakes, high

compressions ratio, higher power, use of new materials and hundreds of other changes

have been made. In recent years the passenger’s car chassis construction has been forced to

shape itself redesigned bodies. While in the field of truck design, body-chassis problems

now get simultaneous consideration to a greater extent that every before. Fluid play

wheels, freewheeling over drives, automatic transmission and many other new features are

in the today’s car. The diesel engine was invented only a few years after the owners that

are safe, easier to drive, more reliable and comfortable.

Indian Automobile Industry

Overview:

The automotive sector is one of the core industries of the Indian economy, whose prospect

is reflective of the economic resilience of the country. With 4% contribution to the GDP

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and nearly 5% of the total industrial output, the automotive sector has become a significant

contributor to the exchequer. Continuous economic liberalization over the years by the

government of India has resulted in making India as one of the prime business destination

for many global automotive players. The automobile industry witnessed a growth of 19.35

percent in April July 2006 when compared to April July 2005.

The Indian automobile Industry has a mix of large domestic private players such as Tata,

Mahindra, Ashok Leyland, Bajaj, Hero Honda and major international players including

GM, Ford, Daimler Chrysler, Toyota, Suzuki, Honda, Hyundai and Volvo.

Advantage of India:

India holds huge potential in the automobile sector including the automobile component

sector owing to its technological, cost and manpower advantage. Further, India has a well-

developed, globally competitive Auto Ancillary Industry and established automobile

testing and R&D centers. The country enjoys natural advantage and is among the lowest

cost producers of steel in the world. The Indian automobile industry today boasts of being

the

Second largest two Wheelers manufacturers in the world, World largest Motorcycle

manufacturer is in India, Second Largest tractor manufacturer in the world, Fifth largest

commercial vehicle manufacturer in the world and Fourth largest Car market in Asia.

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Investment opportunities:

 Establishing Research and Development Centers

 Establishing Engineering Centers

 Passenger Car Segment

 Two Wheeler Segment

 Heavy truck Segment

Production:

One of the largest industries in India, automotive industry has been witnessing impressive

growth during the last two decades. Abolition of licensing in 1991, permitting automatic

approval and successive liberalization of the sector over the years have led to overall

development of the automobile industry. The freeing of the industry from restrictive

environment, on the one hand, helped it to restructure, absorb new technologies, align itself

to global developments and realize its potential and on the other hand, this has significantly

increased industry's contribution to overall industrial growth in the country. The

automobile industry witnessed a growth of 19.35 percent in April- July 2006, India is the

2nd largest two wheeler manufacturer in the world second largest tractor manufacturer in

the world, 5th largest commercial manufacturer in the world, 3rd largest car market in

Asia, Automobile industry Contributes 17% of the total indirect taxes collected by the

exchequer & is a driver of product and process technologies, and has become a excellent

manufacturing base for global players, because of its

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 High machine tool capabilities

 Extremely capable component industry

 Most of the raw material locally produced

 Low cost manufacturing base

 Highly skilled manpower

 Special capability in supplying large volumes

Auto Components industry:

Surge in automobile industry since the nineties has led to robust growth of the auto

component sector in the country. In tandem with the industry trends, the Indian component

sector has shown great advances in recent years in terms of growth, spread, absorption of

new technologies and flexibility. Indian auto component industry has seen major growth

with the arrival of world vehicle manufacturers from Japan, Korea, US and Europe. Today,

India is emerging as one of the key auto components center in Asia and is expected to play

a significant role in the global automotive supply chain in the near future. The auto parts

industry has emerged as one of India's fastest growing manufacturing sectors and a

globally competitive one. The auto components industry in India is dominated by around

500 key players, which contribute more than 85 percent of India's production. The industry

has very deep forward and backward linkages with almost every other engineering

manufacturing sector of the economy. It supports industries like automobiles, machine

tools, steel, aluminum, rubber, plastics, electrical, electronics, forgings and machining.

India has also emerged as an outsourcing hub for auto parts for international companies

such as Ford, General Motors, Daimler Chrysler, Fiat, Volkswagen, and Toyota.

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India enjoys cost advantage with regard to castings and forgings. The manufacturing costs

in India are 25 to 30 percent lower than its western counterparts. India's competitive

advantage does not come from costs alone, but from its full service supply capability.

To encourage the smooth growth of the industry, the government of India has allowed

automatic approval for foreign equity investment up to 100 percent of manufacture of auto

components. Further, the engineering export promotion council under the aegis of Ministry

of Commerce and Industry, Government of India, over the years has been engaged in

promoting exports of engineering goods including auto parts. Besides, the Automotive

Component Manufacturers' Association of India (ACMA) represents the Indian auto

component industry. The association is engaged in promoting trade, technology up

gradation, quality enhancement, and collection and dissemination of information.

Exports:

Auto component exports shot up phenomenally by 40 percent in 2004-05 to a level of US$

1.4 billion. A high growth of 30 percent is expected to continue in 2005-06 also. Indian

auto-components are being exported throughout the world. During the year 2004-05, total

export was of the order of Rs. 6237 Crore.

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Mahavir Motors

Started in the year 1998, we began our history by being one of the first to launch

Mercedes-Benz passenger cars in Hyderabad. Mahavir Group is the largest cars & bikes

dealers in Hyderabad, Vijayawada, Visakhapatnam&Odissa. They are also the Authorized

automobile dealership showrooms for 2 - wheeler & 4 - wheeler Mercedes-Benz, Isuzu,

Skoda, DSK Benelli& Indian Motorcycles for Hyderabad & Vijayawada. Through years of

dedicated hard work, we have become the leading dealerships in the states and cities of

Vishakhapatnam, Odisha and Hyderabad.

What started off as a dealership for only Mercedes-Benz passenger cars has moved on to

something larger. We are now the largest dealers for Mercedes cars, buses, trucks; Škoda

cars; Isuzu SUVs and pickups; Indian motorcycles, DSK Benelli superbikes and Suzuki

two-wheelers, superbikes & all-terrain vehicles.

Introduction of cars division:

The maruti showroom of jayabheriautomotives private limited has capital turn over 63 to --

-100 crores, it is the second largest company in India. The jayabehri group has expanding

their business to Visakhapatnam-

Product availability in jayabheriAutomotives Pvt. Ltd:-

Esteem.

Versa.

Zen Estilo.

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Maruti-800.

Ritz

Swift.

Swift Dzire.

Maruti SX4.

Grand vitara.

A – Star.

Wagon R.

Alto

Ertiga

S Cross

MODELS AND PRICE LIST ON MARUTHI CARS

MARUTHI 800 On Road Price

STD BS-III

STD BS-III (M)

AC BS-III

AC BS-III (M)

STD LPG BS-III

STD LPG BS-III (M)

AC LPG BS_III

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AC LPG BS-III (M)

BS=-II Limited (Uniq)

BS-III Limited (Uniq) (M)

ALTO On Road Price

STD BS-III

STD BS-III (M)

LX BS-III

LX BS-III (M)

LXi BS-III

LXi BS-III (M)

OMNI On Road Price

5 SEATER-BS-III

5 SEATER-BS-III (M)

8 SEATER –BS-III

8 SEATER-BS-III (M)

5 SEATER-LPG BS-III

5 SEATER LPG-BS-III (M)

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WAGON R On Road Price

LX BS-III

LX BS-III (M)

LXi BS-III

LXi BS-III (M)

VXI BS III

VXI BS III (M)

LX Petrol/LPG

LX Petrol/LPG (M)

LXI Petrol/LPG

LXI Petrol/LPG (M)

VXI ABS BS III

VXI ABS BS III (M)

AX BS III

AX BS III (M)

A STAR On Road Price

A STAR LXI

A STAR LXI (M)

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A STAR VXI

A STAR VXI(M)

A STAR ZXI

A STAR ZXI(M)

ZEN ESTILO On Road Price

ESTILO – LX

ESTILO-LX (M)

ESTILO-LXI

ESTILO-LXI (M)

ESTILO-VXI

ESTILO-VXI (M)

ESTILO-VXI (ABS)

ESTILO-VXI (ABS) (M)

ESTILO-Sports

ESTILO Sports (M)

SWIFT On Road Price

LXI BS III

VXI BS III

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VXI WITH ABS

ZXI BS III ABS

LDI BS III ( DIESEL)

VDI BS III (DIESEL)

VDI ABS BS III (DIESEL)

SWIFT DZIRE On Road Price

Swift Dzire LXI

Swift Dzire VXI

Swift DzireZXI

Swift DzireLDI

Swift DzireVDI

Swift DzireZDI

SX4 On Road Price

SX4 VXI

SX4 ZXI

SX4 ZXI with LS

Service offered:

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• Three free services and paid service after sale of the car.

• Free check up complaints.

• Demonstration for new product.

• Acceptance of warranty claims.

• Finance through banks.

Working time:

Working hours inJayabheriAutomotives Pvt. Ltd are 8 hours per day commencing from
8AM to 6PM with two hours for lunch.

CHAPTER – III
PROMOTIONAL MIX: AN OVERVIEW
DEFINITION

Marketing is defined by the American Marketing Association (AMA) as "the

activity, set of institutions, and processes for creating, communicating, delivering, and

exchanging offerings that have value of customers, clients, partners, and society at large. "

The term developed the original meaning which referred literally to going to a market to

buy or sell goods or services. Seen from a systems point of view, sales process engineering

views marketing as "a set of processes that are interconnected and interdependent with

other functions, whose methods can be improved using a variety of relatively new

approaches."

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The Chartered Institute of Marketing defines marketing as "the management

process responsible for identifying, anticipating and satisfying customer requirements

profitably." A different concept is the value-based marketing which states the role of

marketing to contribute to increasing shareholder value. In this context, marketing is

defined as "the management process that seeks to maximize returns to shareholders by

developing relationships with valued customers and creating a competitive advantage."

Marketing practice tended to be seen as a creative industry in the past, which

included advertising, distribution and selling. However, because the academic study of

marketing makes extensive use of social sciences, psychology, sociology, mathematics,

economics, anthropology and neuroscience, the profession is now widely recognized as a

science, allowing numerous universities to offer Master-of-Science (M.Sc.) programmers.

The overall process starts with marketing research and goes through market segmentation,

business planning and execution, ending with pre and post sales promotional activities. It is

also related to many of the creative arts. The marketing literature is also adept at re-

inventing itself and its vocabulary according to the times and the culture.

PROMOTIONAL STRATEGIES:

Another one of the 4P's is 'promotion'. This includes all of the tools available to the

marketer for 'marketing communication'. As with Neil H.Borden's marketing mix,

marketing communications has its own 'promotions mix.' Think of it like a cake mix, the

basic ingredients are always the same. However if you vary the amounts of one of the

ingredients, the final outcome is different. It is the same with promotions. You can

'integrate' different aspects of the promotions mix to deliver a unique campaign.

29
The elements of the promotions mix are:

 Personal Selling.  Trade Fairs and Exhibitions.

 Sales Promotion.  Advertising.

 Public Relations.  Sponsorship.

 Direct Mail.

The elements of the promotions mix are integrated to form a coherent campaign. As

with all forms of communication. The message from the marketer follows the

'communications process' as illustrated above. For example, a radio advert is made for a

car manufacturer. The car manufacturer (sender) pays for a specific advert with contains a

message specific to a target audience (encoding). It is transmitted during a set of

commercials from a radio station (Message / media).

The message is decoded by a car radio (decoding) and the target consumer

interprets the message (receiver). He or she might visit a dealership or seek further

information from a web site (Response). The consumer might buy a car or express an

interest or dislike (feedback). This information will inform future elements of an integrated

promotional campaign. Perhaps a direct mail campaign would push the consumer to the

point of purchase. Noise represents the thousand of marketing communications that a

consumer is exposed to everyday, all competing for attention.

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PROMOTION MIX

Let us look at the individual components of the promotions mix in more detail.

Remember all of the elements are 'integrated' to form a specific communications campaign.

It is not enough for a business to have good products sold at attractive prices. To generate

sales and profits, the benefits of products have to be communicated to customers. In

marketing, this is commonly known as "promotion".

PROMOTION IS ALL ABOUT COMPANIES COMMUNICATING WITH

CUSTOMERS.

In a business the total marketing communications programmed is called the

"promotional mix" and consists of a blend of advertising, personal selling, sales promotion

and public relations tools. In this revision note, we describe the four key elements of the

promotional mix in more detail. It is helpful to define the four main elements of the

promotional mix before considering their strengths and limitations.

1. Personal Selling.

Personal Selling is an effective way to manage personal customer relationships.

The sales person acts on behalf of the organization. They tend to be well trained in the

approaches and techniques of personal selling. However sales people are very expensive

and should only be used where there is a genuine return on investment. For example

salesmen are often used to sell cars or home improvements where the margin is high.

A process of helping and persuading one or more prospects to purchase a good or

service or to act on any idea through the use of an oral presentation. Examples: Sales

31
presentations, sales meetings, sales training and incentive programs for intermediary

salespeople, samples, and telemarketing. Can be face-to-face or via telephone.

2. Sales Promotion.

Sales promotion tends to be- thought of as being all promotions apart from

advertising, personal selling, and public relations. For example the BOGOF promotion, or

Buy One Get One Free. Others include couponing, money-off promotions, competitions,

free accessories (such As. free blades with a new razor), introductory offers (such as buy

digital TV and get free installation), and so on. Each sales promotion should be carefully

coasted and compared with the next best alternative. Media and non-media marketing

communication are employed for a pre-determined, limited time to increase consumer

demand, stimulate market demand or improve product availability. Examples: Coupons,

sweepstakes, contests, product samples, rebates, tie-ins, self-liquidating premiums, trade

shows, trade-ins, and exhibitions.

3. Public Relations (PR)

Public Relations are defined as 'the deliberate, planned and sustained effort to

establish and maintain mutual understanding between an organization and its publics

(Institute of Public Relations). It is relatively cheap, but certainly not cheap. Successful

strategies tend to be long-term and plan for all eventualities. All airlines exploit PR; just

watch what happens when there is a disaster. The pre-planned PR machine clicks in very

quickly with a very effective rehearsed plan. The product can be as good as possible, but if

32
the company has a bad image already, people won't trust in the company, and won't be

buying the product.

4. Direct Mail.

Direct mail is very highly focused upon targeting consumers based upon a

database. As with all marketing, the potential consumer is 'defined' based upon a series of

attributes and similarities. Creative agencies work with marketers to design a highly

focused communication in the form of a mailing. The mail is sent out to the potential

consumers and responses are carefully monitored. For example, if you are marketing

medical text books, you would use a database of doctors' surgeries as the basis of your mail

shot.

5. Trade Fairs and Exhibitions

Such approaches are very good for making new contacts and renewing old ones.

Companies will seldom sell much at such events. The purpose is to increase awareness and

to encourage trial. They offer the opportunity for companies to meet with both the trade

and the consumer. Expo has recently finish in Germany with the next one planned for

Japan in 2005, despite a recent decline in interest in such events. . You make your product,

and let potential buyers try the product, this way; you know directly what people see in

your product. The downside, your competitor can see exactly what you are doing.

6. Advertising

33
Advertising is a 'paid form' communication. It is used to develop attitudes, create

awareness, and transmit information in order to gain a response from the target market.

There are many advertising 'media' such as newspapers (local, national, free, trade),

magazines and journals, television (local, national, terrestrial, satellite) cinema, outdoor

advertising (such as posters, bus sides).

7. Sponsorship

Sponsorship is where an organization pays to be associated with a particular event,

cause or image. Companies will sponsor sports events such as the Olympics or Formula

One.

8. Word Of Mouth

Among all the promotional activities, the word of mouth is the best activity. It is

used to develop attitudes, create awareness, and transmit information in order to gain a

response from the target market. There are many advertising 'media' such as newspapers

(local, national, free, trade), magazines and journals, television (local, national, terrestrial,

satellite) cinema, outdoor advertising (such as posters, bus sides).

ADVANTAGES AND DISADVANTAGES OF EACH ELEMENT OF THE


PROMOTIONAL MIX

Mix Element Advantages Disadvantages

Advertising Good for building awareness Impersonal - cannot answer all a

customer's questions
Effective at reaching a wide

Not good at getting customers to

34
audience make a final purchasing decision

Repetition of main brand and

product positioning helps

build customer trust

Personal Highly interactive - lots of Costly - employing a sales force

Selling communication between the buyer has many hidden costs in

and seller addition to wages

Excellent for communicating Not suitable if there are

complex / detailed product thousands of important buyers

information and features

Relationships can be built up -

important if closing the sale make

take a long time

Sales Can stimulate quick increases in If used over the long-term,

Promotion sales by targeting promotional customers may get used to the

incentives on particular effect

products
Too much promotion may

Good short term tactical tool damage the brand image

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Public Often seen as more "credible" - Risk of losing control - cannot

Relations since the message seems to be always control what other people

coming from a third party (e.g. write or say about your product

magazine, newspaper)

With the invention of the wheel in 4000 B.C, man's journey on the road of

mechanized transport had begun. Since then he continually sought to devise and

automated, labor savings machine to replace the horse. Innumerable attempts reached

conclusion in the early 1760s with the building of the first steam tractor driven by a French

Captain, Nicholas Jacob Cugnot.

It was however left to Karl Benz and Gottlief Daimler to produce the first vehicles

powered by the internal combustion engine in 1885. It was then that the petrol engine was

introduced, which made the car practical and safe proposition. The cars in this period were

more like the cars on our roads with cars came the era of speed.

The first ever land speed record was established about 100 years back, in 1898.

Count Gaston do Chasselouppp-laubat of France drove an electric car (in Archeries near

Paris) at a speed of 39.24 miles per hour. This flagged off the era of wheels were racing,

which lasted till 1964, after which et rocket propelled vehicles were allowed.

Marketing is the process by which companies determine what products or services

may be of interest to customers, and the strategy to use in sales, communications and

business development. Companies create value for customers and build strong customer

36
relationships in order to capture value from customers in return through an integrated

process.

Marketing is used to identify the customer, to keep the customer, and to satisfy the

customer. With the customer as the focus of its activities, it can be concluded that

marketing management is one of the major components of business management. The

evolution of marketing was caused due to mature markets and overcapacities in the last 2-3

centuries. N9edcdl Companies then shifted the focus from production to the customer in

order to stay profitable.

The term marketing concept holds that achieving organizational goals depends on

knowing the needs and wants of target markets and delivering the desired satisfactions. It

proposes that in order to satisfy its organizational objectives, an organization should

anticipate the needs and wants of consumers and satisfy these more effectively than

competitors

Promotion Strategies

37
A successful product or service means nothing unless the benefit of such a service

can be communicated clearly to the target market. An organizations promotional strategy

can consist of:

Advertising: Is any non-personal paid form of communication using any form of mass

media?

Public relations: Involves developing positive relationships with the organization media

public. The art of good public relations is not only to obtain favorable publicity within the

media, but it is also involves being able to handle successfully negative attention.

Sales promotion: Commonly used to obtain an increase in sales short term. Could involve

using money off coupons or special offers.

Personal selling: Selling a product service one to one.

Direct Mail: Is the sending of publicity material to a named person within an organization.

There has been a massive growth in direct mail campaigns over the last 5 years. Spending

on direct mail now amounts to £18 are a year representing 11.8% of advertising

expenditure (Source: Royal Mail 2000). Organizations can pay thousands of pounds for

databases, which contain names and addresses of potential customers.

Direct mail allows an organization to use their resources more effectively by

allowing them to send publicity material to a named person within their target segment. By

personalizing advertising, response rates increase thus increasing the chance of improving

sales. Listed below are links to organization whose business involves direct mail.

Message & Media Strategy

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An effective communication campaign should comprise of a well thought out

message strategy. What message are you trying to put across to your target audience? How

will you deliver that message? Will it be through the appropriate use of branding? Logos or

slogan design? The message should reinforce the benefit of the product and should help the

company in developing the positioning strategy of the product.

Companies with effective message strategies include:

 Nike: Just do it.

 Toyota: The car in front is a Toyota.

Media strategy refers to how the organization is going to deliver their message.

What aspects of the promotional mix will the company use to deliver their message

strategy. Where will they promote? Clearly, the company must take into account the

readership and general behavior of their target audience before they select their media

strategy. What newspapers do their target markets read? What TV programmers do they

watch? Effective targeting of their media campaign could save the company on valuable

financial resources.

Push & Pull Strategies:

Communication by the manufacturer is not only directed towards consumers to

create demand. A push strategy is where the manufacturer concentrates some of their

marketing effort on promoting their product to retailers or wholesalers or both, to convince

them to stock the product. A combination of promotional mix strategies are used at this

stage aimed at the retailer including personal selling, and direct mail. The product is

pushed onto the retailer, hence the name.

39
A pull strategy is based around the manufacturer promoting their product amongst

the target market to create demand. Consumers pull the product through the distribution

channel forcing the wholesaler and retailer to stock it, hence the name pull strategy.

Organisations tend to use both push and pull strategies to create demand from retailers and

consumers

Communication Model - AIDA

ATTENTON INTEREST DESIRE ACTION

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AIDA is a communication model, which can be used by firms to aid them in selling

their product or services. AIDA is an Acronym for Attention, Interest, Desire, Action..

When a product is launched, the first goal is to grab attention. Think, how can an

organization use it skills to do this? Use well-known personalities to sell products? Once

you grab attention how can you hold Interest, through promoting features, clearly stating

the benefit the product has to offer. The third stage is desire, how can you make the

product desirable to the consumer? By demonstrating it? The final stage is the purchase

action; if the company has been successful with its strategy then the target customer should

purchase the product.

Promotion through the Product life cycle:

As products move through the four stages of the product lifecycle different

promotional strategies should be employed at these stages to ensure the healthy success

and life of the product

Stages and promotion strategies employed.

41
Introduction:

When a product is now the organizations objective will be to inform the

target audience of its entry. Television, radio, magazine, coupons etc may be used to push

the product through the introduction stage of the lifecycle. Push and Pull Strategies will be

used at this crucial stage.

Growth:

As the product becomes accepted by the target market the organization at this

stage of the lifecycle the organization works on the strategy of further increasing brand

awareness to encourage loyalty.

Maturity:

At this stage with increased competition the organization take persuasive tactics

to encourage the consumers to purchase their product over their rivals. Any differential

42
advantage will be clearly communicated to the target audience to inform of their benefit

over their competitors.

Decline:

As the product reaches the decline stage the organization will use the strategy of

reminding people of the product to slow the inevitable.

Defining a Sales Promotion:

Short-term incentives to encourage purchase or sales of a product or service, "a

range of tactical techniques designed with in a strategic marketing frame work, to add

value to a product or service in order to achieve a specific sales & marketing objectives:

(Institute of sales promotion).

Alternative Definition:

A range of technical marketing techniques to incentive the sale of products and

services in order to achieve specific sales & marketing objectives.

Promotional & sales techniques aimed at short-term increases in sales.

The Appeal of Sales Promotions:

 They work.

 Their effectiveness is easily measurable.

43
 They can be clearly targeted.

 They fit with niche marketing.

 They are quick acting.

 They create interest.

 They cost of advertising is rising.

Objectives:

 To increase sales.

 To introduce a new product.

 To encourage consumers to buy more.

 To encourage consumer to try the product.

 To increase sales among existing customers.

 To regain future customers.

Objectives of Sales Promotion:

 To maintain competitiveness.

 To increase off peak sales.

 To support their forms of promotion.

 To extend the firm's database of customers.

 To challenge competitors.

Classification:

Sales promotion can be classified as

 Consumer promotion — targeted at the consumer.

44
 Trade promotion — targeted intermediaries in the channel of distribution.

 Sales force promotion — designed to motivate the sales force.

Consumer Promotions:

 Sales promotions aimed final consumers and designed to stimulate consumer

purchasing.

 Can be direct to consumer's home or in-stores.

Roles:

 To encourage sales.
 To increase usage.
 Trade shows
 Banners & Streamers
 Trading stamps
 Loyalty cards
 Money off coupons
 Rebates
 Price off
 BOGOF
 Bargain packs
 Bundling.

Trade promotion:

Sales promotion to gain reseller support & to improve reseller effort. Sales

promotion aimed at distributors to encourage them to stock a particular product.

Roles of trade promotion:

 To obtain shelf space.


 To develop goodwill.
 To encourage retailers to promote the product.
 To increase the distribution network.

45
 To assist sales force.
Techniques of Trade Promotion:

 Price deals.
 Promotion allowances.
 Sales contests.
 Calendars.
 Gifts.
 Co-operative advertising.
 Trade shows.
 Meetings.
 Catalogues.
Sales force promotion:

Sales promotion designed to motivate the sales force & make sales force selling
efforts more effectiveness.

 Displays.
 Sales aids.
 Competition.
 Meetings & conventions.
 Sales promotion.
 Arguments against.
 Complements media advertising.

 Encourage cheers pricing.

 Purchasing only whist on promotion.

 Short-term boost to sales.

 Benefit short lived sales fall off after the promotion is finished.

 Add incentives to purchase. Can be measured in terms of sales.

 Excess use of sales promotion result in a cut price image.

46
Internet Promotion:

The development of the World Wide Web has changed the business environment

forever. Dot com fever has taken the industry and stock markets by storm. The e-

commerce revolution promises to deliver a more efficient way of conducting business.

Shoppers can now purchase from the comfort of their home 24 hours a day 7 days a week.

Owning a website is a now a crucial ingredient to the marketing mix strategy of an

organization. Consumers can now obtain instant information on products or services to aid

them in their crucial purchase decision. Sony Japan took pre-orders of their popular Play

station 2 consoles over the net, which topped a 1 million after a few days, European

football stars are now issuing press releases over the web with the sites registered under

their own names. Hit rates are phenomenal.

Advertisers have now moved their money over to the internet as customers are on

average spending more time online then watching TV. Popular ways to advertise seem to

be with banners and pop ups.

 Search volume for promotional strategy

 Promotion - advertising: introduction

The Institute of Practitioners in Advertising (IPA), the body that represents advertising

agencies, defines advertising as:

"The means of providing the most persuasive possible selling message to the right

prospects at the lowest possible cost".

47
Kotler and Armstrong provide an alternative definition:

"Advertising is any paid form of non-personal presentation and promotion of ideas, goods

and services through mass media such as newspapers, magazines, television or radio by an

identified sponsor".

There are five main stages in a well-managed advertising campaign

Stage 1: Set Advertising Objectives

An advertising objective is a specific communication task to be achieved with a

specific target audience during a specified period of time. Advertising objectives fall into

three main categories:

 To inform - e.g. tell customers about a new product

 To persuade - e.g. encourage customers to switch to a different brand

 To remind - e.g. remind buyers where to find a product

Stage 2: Set the Advertising Budget

Marketers should remember that the role of advertising is to create demand for a

product. The amount spent on advertising should be relevant to the potential sales impact

of the campaign. This, in turn will reflect the characteristics of the product being

advertised. For example, new products tend to need a larger advertising budget to help

build awareness and to encourage consumers to trial the product. A product that is highly

differentiated may also need more advertising to help set it apart from the competition -

emphasizing the points of difference.

48
Setting the advertising budget is not easy - how can a business predict the right amount to

spend. Which parts of the advertising campaign will work best and which will have

relatively little effect? Often businesses use "rules-of-thumb" (e.g. advertising/sales ratio)

as a guide to set the budget.

Stage 3: Determine the key Advertising Messages

Spending a lot on advertising does not guarantee success (witness the infamous

John Cleese campaign for Sainsbury). Research suggests that the clarity of the advertising

message is often more important than the amount spent. The advertising message must be

carefully targeted to impact the target customer audience. A successful advertising

message should have the following characteristics:

 Meaningful - customers should find the message relevant

 Distinctive - capture the customer's attention

 Believable - a difficult task, since research suggests most consumers doubt the truth

of advertising in general

Stage 4: Decide which Advertising Media to Use

There are a variety of advertising media from which to choose. A campaign may

use one or more of the media alternatives. The key factors in choosing the right media

include:

 Reach - what proportion of the target customers will be exposed to the advertising?

 Frequency - how many times will the target customer be exposed to the

advertising message?

 Media Impact - where, if the target customer sees the message - will it have most

49
impact? For example does an advert promoting holidays for elderly people have

more impact on Television (if so, when and which channels) or in a national

newspaper or perhaps a magazine focused on this segment of the population?

Another key decision in relation to advertising media relates to the timing of the

campaign. Some products are particularly suited to seasonal campaigns on television (e.g.

Christmas hampers) whereas for other products, a regular advertising campaign throughout

the year in media such as newspapers and specialist magazines (e.g. cottage holidays in the

Lake District) is more appropriate.

Stage 5: Evaluate the results of the Advertising Campaign

The evaluation of an advertising campaign should focus on two key areas:

1. The Communication Effects - is the intended message being communicated

effectively and to the intended audience?

2. The Sales Effects - has the campaign generated the intended sales growth? This

second area is much more difficult to measure.

Promotion - public relations Introduction:

The Institute of Public Relations defines public relations as follows:

"The planned and sustained effort to establish and maintain goodwill and natural

understanding between an organization and its publics"

What is meant by the term "publics" in the above definition?

50
A business may have many "publics" with which it needs to maintain good

relations and build goodwill. For example, consider the relevant "publics" for a publicly-

quoted business engaged in medical research:

 Employees
 Shareholders
 Trade unions
 Members of the "general public"
 Customers (past and present)
 Pressure groups
 The medical profession
 Charities funding medical research
 Professional research bodies and policy-forming organizations
 The media
 Government and politicians

The role of public relations is to:

 Identify their Levant publics

 Influence the opinions of those public

Reinforcing favorable opinions transforming perhaps neutral opinions into positive ones

changing or neutralizing hostile opinions

Public relations techniques

There are many techniques available to influence public opinion, some of which are more

appropriate in certain circumstances than others:

 Consumer communication
 Customer press releases
 Trade press releases
 Promotional videos
 Consumer exhibitions

51
 Competitions and prizes
 Product launch events
 Celebrity endorsements
 Websites
Business Communication

 Corporate identity design


 Company and product videos
 Direct mailings
 Website

Trade Exibitions

 Internal employee communication


 In-house newsletters and magazines
 Intranet
 Notice boards
 Employee conferences
 Email
External Corporate Communication

 Company literature (brochures, videos etc.)


 Community involvement programmers
 Trade, local, national and international media relations
Financial communication

 Financial media relations


 Annual report and accounts
 Meetings with stock market analysts, fund managers etc
 Shareholder meetings (including the annual general meeting
Given the wide range of techniques used in public relations, how is it possible to measure

the effectiveness of public relations?

52
It is actually quite difficult to measure whether the key messages have been communicated

to the target public. In any event, this could be quite costly since it would involve a large

amount of regular research. Instead, the main measures of effectiveness concentrate on the

process of public relations, and include:

 Monitoring the amount of media coverage obtained (press cuttings agencies play a

role in keeping businesses informed of this)

 Measuring attendance at meetings, conferences

 Measuring the number of enquiries or orders received in response to specific public

relations efforts.

Promotion - personal selling Introduction

Personal selling can be defined as follows:

Personal selling is oral communication with potential buyers of a product with the

intention of making a sale. The personal selling may focus initially on developing a

relationship wit/i the potential buyer, but will always ultimately end with an attempt to

"close the sale"

Personal selling is one of the oldest forms of promotion. It involves the use of a

sales force to support a push strategy (encouraging intermediaries to buy the product) or a

pull strategy (where the role of the sales force may be limited to supporting retailers and

providing after-sales service).

What are the main roles of the sales force?

53
Kotler describes six main activities of a sales force:

 Prospecting - trying to find new customers

 Communicating - with existing and potential customers about the product range

 Selling - contact with the customer, answering questions and trying to close the sale

 Servicing - providing support and service to the customer in the period up to

delivery and also post-sale

 Information gathering - obtaining information about the market to feedback into the

marketing planning process

 Allocating - in times of product shortage, the sales force may have the power to

decide how available stocks are allocated

What are the advantages of using personal selling as a means of promotion?

 Personal selling is a face-to-face activity; customers therefore obtain a relatively


high degree of personal attention
 The sales message can be customized to meet the needs of the customer
 The two-way nature of the sales process allows the sales team to respond directly
and promptly to customer questions and concerns
 Personal selling is a good way of getting across large amounts of technical or other
complex product information
 The face-to-face sales meeting gives the sales force chance to demonstrate the
product
 Frequent meetings between sales force and customer provide an opportunity to
build good long-term relationships
Given that there are many advantages to personal selling, why do more businesses not

maintain a direct sales force?

54
Main Disadvantages of Using Personal Selling

The main disadvantage of personal selling is the cost of employing a sales force.

Sales people are expensive. In addition to the basic pay package, a business needs to

provide incentives to achieve sales (typically this is based on commission and/or bonus

arrangements) and the equipment to make sales calls (car, travel and subsistence costs,

mobile phone etc).

In addition, a sales person can only call on one customer at a time. This is not a

cost-effective way of reaching a large audience.

Advertising - setting the advertising budget Introduction

A famous comment usually attributed to Lord Leverhulme goes:

"I know that half of my advertising budget is wasted, but I'm not sure which half

It is notoriously difficult to measure the effect of advertising on a business' sales.

Advertising is just one of the variables that might affect sales in a particular period. These

include:

 Consumer and business confidence

 Levels of disposable income

 Availability of product (e.g. does the retailer actually have stock to sell?)

 Availability of competing products

 The weather (often blamed by retailers for poor sales!)

How can a business know whether a specific advertising campaign was effective?

55
As a percentage of sales, advertising expenditure varies enormously from business

to business, from market to market. For example, the leading pharmaceutical companies

spend around 20% of sales on advertising, whilst business such as Ford and Toyota spend

less than I %. An average for fast- moving consumer goods markets ("FMCG") is around

8-10% of sales.

In practice, the following approaches are used for setting the advertising budget:

Method (1) Fixed percentage of sales

In markets with a stable, predictable sales pattern, some companies set their

advertising spend consistently at a fixed percentage of sales. This policy has the advantage

of avoiding an "advertising war" which could be bad news for profits.

However, there are some disadvantages with this approach. This approach assumes

that sales are directly related to advertising. Clearly this will not entirely be the case,

since/other elements of the promotional mix will also affect sales. If the rule is applied

when sales are declining, the result will be a reduction in advertising just when greater

sales promotion is required!

Method (2) same level as competitors

This approach has widespread use when products are well-established with

predictable sales patterns. It is based on the assumption that there is an "industry average"

spend that works well for all major players in a market.

A major problem with this approach (in addition to the disadvantages set out for the

example above) is that it encourages businesses to ignore the effectiveness of their

56
advertising spend — it makes them "lazy". It could also prevent a business with

competitive advantages from increasing market share by spending more than average.

Method (3) Task

The task approach involves setting marketing objectives based on the "tasks" that

the advertising has to complete.

These tasks could be financial in nature (e.g. achieve a certain increase in sales,

profits) or related to the marketing activity that is generated by the campaigns. For

example:

• Numbers of enquiries received quoting the source code on the advertisement

• Increase in customer recognition / awareness of the product or brand which can be

measured

• Number of viewers, listeners or readers reached by the campaign

Method (4) Residual

The residual approach, which is perhaps the worst of all, is to base the advertising

budget on what the business can afford — after all other expenditure. There is no attempt

to associate marketing objectives with levels of advertising. In a good year large amounts

of money could be wasted; in a bad year, the low advertising budget could guarantee a

further low year for sales.

57
Marketing planning - setting marketing objectives Introduction

Objectives set out what the business is trying to achieve. Objectives can be set at two

levels:

(1) Corporate level

These are objectives that concern the business or organization as whole Examples

of "corporate objectives might include:

 We aim for a return on investment of at least 15%

 We aim to achieve an operating profit of over £10 million on sales of at least £100

million

 We aim to increase earnings per share by at least 10% every year for the

foreseeable future

2) Functional level

E.g. specific objectives for marketing activities

Examples of functional marketing objectives" might include:

 We aim to build customer database of at least 250,000 households within the next

12 months

 We aim to achieve a market share of 10%

 We aim to achieve 75% customer awareness of our brand in our target markets

Both corporate and functional objectives need to conform to the commonly used SMART

criteria.

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The SMART criteria (an important concept which you should try to remember and apply

in exams) are summarized below:

 Specific - the objective should state exactly what is to be achieved.

 Measurable - an objective should be capable of measurement - so that it is possible

to determine whether (or how far) it has been achieved

 Achievable - the objective should be realistic given the circumstances in which it is

set and the resources available to the business.

 Relevant - objectives should be relevant to the people responsible for achieving

them

 Time Bound - objectives should be set with a time-frame in mind. These deadlines

also need to be realistic.

Introduction to Values and Vision

Values form the foundation of a business' management style. Values provide the

justification of behavior and, therefore, exert significant influence on marketing decisions.

Consider the following examples of a well-known business

BT Group - defining its values:

BT's activities are underpinned by a set of values that all

BT people are asked to respect:

 We put customers first

 We are professional

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 We respect each other

 We work as one team

 We are committed to continuous improvement.

These are supported by our vision of a communications-rich world - a world in which

everyone can benefit from the power of communication skills & technology.

A society in which individuals, organizations and communities have unlimited

access to one another and to a world of knowledge, via a multiplicity of communications

technologies including voice, data, mobile, internet - regardless of nationality, culture,

class or education. Our job is to facilitate effective communication, irrespective of

geography, distance, time or complexity.

Why are values important in marketing?

Many Japanese businesses have used the value system to provide the motivation to

make them global market leaders. They have created an obsession about winning that is

communicated at all levels of the business that has enabled them to take market share from

competitors that appeared to be unassailable. For example, at the start of the 1970's

Komatsu was less than one third the size of the market leader — Caterpillar — and relied

on just one line of smaller bulldozers for most of its revenues. By the late 1980's it had

passed Caterpillar as the world leader in earth-moving equipment. It had also adopted an

aggressive diversification strategy that led it into markets such as industrial robots and

semiconductors. If "values" shape the behavior of a business, what is meant by "vision"

and how does it relate to marketing planning?

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To succeed in the long term, businesses need a vision of how they will change and

improve in the future. The vision of the business gives it energy. It helps motivate

employees. It helps set the direction of corporate and marketing strategy.

What are the components of an effective business vision? Davidson identifies six

requirements for success:

 Provides future direction

 Expresses a consumer benefits realistic

 Is motivating

 Must be fully communicated

 Consistently followed and measured

Methods of Sales Promotion

Some of the most common methods used in sales promotion strategies include:

 Coupons
 Price discounting
 Gift with purchase offers
 Sweepstakes
 Sampling
 Mail in offers and rebates
 Refund and premium offers
 Group promotions
 Frequent user/loyalty incentives
 Point-of-sale displays

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CHAPTER – IV
ANALYSIS OF SURVEY RESULTS ON MARKET PROMOTION: CUSTOMERS
PERSPECTIVE
1. Table 4.1 Customers Response
Age

Options No. Employees %of Response

21-30 27 27

31-40 26 26.

41-50 24 24

51 & Above 23 23

Total 100 100

Figure 4.1 Status of Customers Response

Interpretations: Above table 4.1 indicates that age of respondents, 27% age in between

21-30. 26% in between 31-40 and 24% age In between 41-50 years. The same

presented in figure 4.1.

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2. Table 4.2 Customers Response

Gender

Male 83 83%

Female 17 17%

Total 100 100%

Status of Customers Response

Interpretations: Above table 4.2 indicates that gender of respondents, 83% male and 17%

are the female respondents. The same presented in figure 4.2.

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3. Table 4.3Customers Response

Educational Qualification

Undergraduate 12 12%

Graduate 43 43%

Post Graduate 45 45%

Total 100 100%

Status of Customers Response

Interpretations: Above table 4.3 indicates that educational qualifications of respondents,

12% undergraduates, 43% are the graduates and 45% are the post graduates. The same

presented in figure 4.3.

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4. Table 44 Customers Response

Martial Status

Married 84 84%

Unmarried 16 16%

Total 100 100%

Status of Customers Response

300

250
No.of respondents

200

150

100

50

0
Married Unmarried
Marital Status

Interpretations: Above table 4.4 indicates that the martial status of respondents, 16% are
unmarried and 84% are unmarried .The same presented in figure 4.4

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5. Table 4.5 Customers Response

Occupation

Employed 90 90%

Housewife 2 2%

Business 5 5%

Retired 3 3%

Total 100 100%

Status of Customers Response

Interpretations: Above table 4.5 indicates the occupation of respondents, 90%employed,


2%housewives, 5%businessmen, 3%retired .The same presented in figure 4.5

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Table-4.6:Why Have You Chosen This Model When You Can Find Similar Model In
Other Brands?

S.NO REASONS NO OF PERCENTAGE


RESPONDANT
1. STYLISH 30 30
2. COMFORT 40 40
3. SAFETY 10 10
4. LOW PRICE 20 20
5. TOTAL 100 100

Chart-4.6: Status Customers Response

40
35
30
25
20
15
10
5
0
STYLISH COMFORT SAFETY LOW PRICE

INTERPRETATION

People choose the brand mostly because of the comfort it has. That’s why 40% of people
chosen comfort. 30% because of its stylish features.

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Table-4.7: Where Do You Go To Service Your Vehicles Regularly?

S.NO SERVICE NO OF PERCENTAGE


LOCATIONS RESPONDANT
1. VARUN 25 25
2. AVINASH 20 20
3. ADISHWAR 20 20
4. OTHERS 35 35
5. TOTAL 100 100

Chart-4.7: Customers Response

35

30

25

20

15

10

0
VARUN AVINASH ADISHWAR OTHERS

INTERPRETATION:

People go for servicing there vehicles either to the service locations like varun,avinash
,Adishwar or 35% mostly other locations

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Table-4.8: If the answer for the above question is other, why do you choose other
garages when qualified garages are there to service your vehicles?

S.NO REASONS NO OF PERCENTAGE


RESPONDANTS
1. QUICK TIME 40 40
2 SERVICE COST 30 30
3. DISTANCEIS SMALL 30 30
4. TOTAL 100 100

Chart
-4.8:
45 Custo
40 mers
Respo
35 nse
30

25

20

15

10

0
QUICK TIME SERVICE COST DISTANCEIS SMALL

INTERPRETATION

For servicing car people mostly go for other garages due to quick time delivery 40% of
people agree for it

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Table-4.9: Have Do You Come Across Any Promotional Activity Of The Company?

S.NO OPTIONS NO OF PERCENTAGE


RESPONDANTS
1. YES 40 40
2. NO 60 60
3 TOTAL 100 100

Chart-4.9: Customers Response

70

60

50

40

30

20

10

0
YES NO

INTERPRETATION

60% of people are not aware of the promotional activities of the company

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Table-4.10:Do You Known That Company Providing Financial Assistance Througth
Banks For Purchasing The Product?

S.NO OPTIONS NO OF PERCENTAGE


RESPONDANTS
1. YES 60 60

2. NO 40 40

3. TOTAL 100 100

Chart-4.10: Customers Response

60

40

Yes No

INTERPRETATION:
Company is providing financial assistance through banks 60% of people are aware of this
assistance

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Table-4.11:Which Of The Add Is More Attractive And up to The Mark Among
Mercedes Benz Models?

S.NO MODELS NOOF PERCENTAGE


RESPONDANTS

1. 20 20

2. WAGONR 20 20
3. SX4 60 60
4. TOTAL 100 100

Chart-4.11: Customers Response

60

20 20

SWIFT DZIRE WAGNOR SX4

INTERPRETATION:
60% of people are attracted and impressed with sx4 advertisement

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Table-4.12: Is Jayabheri Automobile Providing Any Other Offer More Than
The Competitors Do?

S.NO OPTIONS NO OF PERCENTAGE


RESPONDANTS
1. YES 30 30
2 NO 45 45
3 NOT RESPONDED 25 25
4. TOTAL 100 100

Chart-4.12 Customers Response

45

40

35

30

25

20

15

10

0
YES NO NOT RESPONDED

INTERPRETATION:
30% of people said that jayabehri is providing other offers compare to there competitor

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Table-4.13: Did You Buy Your vehicle During the Festival Promotion?

S.NO OPTIONS NO OF PERCENTAGE


RESPONDANTS

1. YES 25 25
2 NO 75 75
3. TOTAL 100 100

Chart-4.8: Customers Response

80

70

60

50

40

30

20

10

0
Yes No

INTERPRETATION:

75% of people do not buy any vehicle on festival promotion

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Table-4.14: Who’s Advertising Strategies Has Highest Rating among the Following?

S.NO OPTIONS NO OF PERCENTAGE


RESPONDANTS
1. HUNDAI 25 25

2 MARUTI SUZUKI 55 55
3. TATA MOTORS 10 10
4. HONDA MOTORS 10 10

5. TOTAL 100 100

Chart-4.9: Customers Response

60

50

40

30

20

10

0
HUNDAI MARUTI SUZUKI TATA MOTORS HONDA MOTORS

INTERPRETATION:
Hyundai advertisement strategy is very impressive when compare with others

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Table-4.15: Overall Satisfaction?

S.NO OPTIONS NO OF PERCENTAGE


RESPONDANTS
1. EXCELLENT 30 30
2. GOOD 50 50
3. AVERAGE 10 10
4 POOR 10 10
5. TOTAL 100 100

Chart-4.15: Customers Response

60

50

40

30

20

10

0
EXCELLENT GOOD AVERAGE POOR

INTERPRETATION:
Response to overall satisfaction 50% of people said good and 30% people said excellent.
This shows the maruti Suzuki brand image.

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CHAPTER-V
FINDINGS AND SUGGESTIONS
Findings

 It is observed that 90 %t of the respondents who visit the showroom, most of them

like the various models of cars, offered in the showroom and the ambience,

specially the interior designing.

 The reception in the showroom is average and sales persons response is very

effective.

 Even though people contemplate to buy four /two wheelers they will decide their

preference on the combination of comfort and price, and price and brand image.

 It is observed that majority of the customers are satisfied the services of Adishwar

Auto Diagnostics Pvt. Ltd.

 The various promotional activities at that “Mahavir Motors” are advertisement

which is major activity involving in print media and video media.

 From the detailed study it is arrived that most of the samples are not aware of

Mercedes Benz products.

 In the study it was experienced that company’s sales promotion activities are based

on “Pull- Push” strategies.

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Suggestions

 Advertisements relating to sales promotion offers of Mahavir Motors(Adishwar

Auto Diagnostics Pvt. Ltd.)have to be made more often in all leading local cable

networks, regional newspapers.

 It is being found that only for new launch model, Mahavir Motors(Adishwar Auto

Diagnostics Pvt. Ltd.)is making sales promotional offers vary frequently hence it is

being strongly suggested.

 Mahavir Motors (Adishwar Auto Diagnostics Pvt. Ltd.) offers various sales

promotional programmers for its customer’s which includes contests,

 The Mahavir Motors(Adishwar Auto Diagnostics Pvt. Ltd.) should use more

consumer promotional tools like price discounts contest and sweep stakes, coupons,

free service camps, product warranties, low interest finance.

 Exchange offer will attract majority of customers. Hence it is strongly

recommended to implement exchange offer schemes to its customers.

 Mahavir Motors(Adishwar Auto Diagnostics Pvt. Ltd.) should conduct market

research program very frequently to find out the performance.

 Mahavir Motors(Adishwar Auto Diagnostics Pvt. Ltd.) can also conduct some road

shows relating to the sales promotional offer provided by them to its customers

which will increase awareness relating to the offers made by them.

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Conclusion

This organization was a place where there are few major players and many local and

regional players. The company which I represented was Mahavir Motorswith reference to

Adishwar Auto Diagnostics Pvt. Ltd which gave me lot of opportunity and scope to

understand Automobile Industry and regarding the brands.Lot of valuable information

regarding the company and also the customers has been collected from the survey, which

helped me to clearly understand the real problems faced by the marketers to distribute and

also make the distributors to sell the company’s product in market.The suggestion made to

the company is applicable for the benefit of the company in order to survive and grow in

the existing scenario with large number of competitors craving for the same market.Thus,

finally it can be said that the industry needs lot of change in management activities to be

done along with various promotional strategies for the customers.

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BIBLIOGRAPHY

BOOKS:

 ADVERTISING MANAGEMENT : PHILLIP KOTLER

 MARKETING MANAGEMENT: KOTLER KELLER

WEBSITES:

 www.mahavir-motors.in

 www.google.com

JOURNAL:

 FORTUNE MAGAZI NE

 COMPANY REPORTS

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