13. marketing department

Marketing Department

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MarketingMarketingMarketingMarketing

DepartmentDepartmentDepartmentDepartment


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IIIINDEXNDEXNDEXNDEX

Sr.Sr.Sr.Sr. ParticularsParticularsParticularsParticulars PagePagePagePage

1.1.1.1. IntroductionIntroductionIntroductionIntroduction 56565656

2.2.2.2. Organization ChartOrganization ChartOrganization ChartOrganization Chart 57575757

3.3.3.3. Marketing MixMarketing MixMarketing MixMarketing Mix 58585858

4.4.4.4. Product mix & Market segmentationProduct mix & Market segmentationProduct mix & Market segmentationProduct mix & Market segmentation 59595959

5.5.5.5. Market ResearchMarket ResearchMarket ResearchMarket Research 60606060

6.6.6.6. Pricing PolicyPricing PolicyPricing PolicyPricing Policy 61616161

7.7.7.7. Channels Of DistributionChannels Of DistributionChannels Of DistributionChannels Of Distribution 62626262

8.8.8.8. AdvertisingAdvertisingAdvertisingAdvertising 63636363

9.9.9.9. Sales PromotioSales PromotioSales PromotioSales Promotionnnn 65656565

10101010.... CompetitorsCompetitorsCompetitorsCompetitors 66666666

11.11.11.11. ExportsExportsExportsExports 67676767


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IIIINTRODUCTIONNTRODUCTIONNTRODUCTIONNTRODUCTION

Marketing occupies an important position in the

organization of business unit. The modern concept of marketing may

be viewed from the customers’ point of view. Modern Marketing begins

with the customer, not with the production, sales, technological and

marks and it ends with the customer satisfaction and social well

being.In this way Marketing performs all those function which are

necessary to pass on goods from producers to the consumers in a

process to satisfy their needs.

Marketing is a total system of interacting business activities

designed to plan, price, promote and distribute want satisfying products

and services to present and potential customer.

The main function of marketing department is to know what the

customer needs are and how it can provide the maximum measure of

satisfaction to them, according to the consumer needs, marketing

department has to alter in production, quality production capacity,

variety, price, packaging, channels of distribution etc.

Marketing department is the heart of Bharat Gears Ltd. They have

a dynamic sales force of 20 professional & experts in its department.

Marketing manager (Mr. Jagdeep Singh) has gone for almost the world

tour for marketing purpose. The main purpose is to promote the

company, find new customer & study more about the market. Their

aim is to make a strong position in a competitive world.


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OOOORGANIZATION RGANIZATION RGANIZATION RGANIZATION CCCCHARTHARTHARTHART

Marketing department has to perform various functions rightly from

production to sales to ultimate customers. We can say that

Marketing department is an agent between prod to the ultimate

customer and therefore marketing department has various functions

like product planning, marketing research, servicing to customer

etc.

Following is the structure of marketing department in Bharat Gears

Ltd:

As per the organization chart of marketing department chief

working partner is the head and has to take all important decisions

of marketing department.

Chief Working Partner Chief Working Partner Chief Working Partner Chief Working Partner

MarkMarkMarkMarketing Manager eting Manager eting Manager eting Manager

Officer SaleOfficer SaleOfficer SaleOfficer Sale Sales Engineer Sales Engineer Sales Engineer Sales Engineer


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Promotion Promotion Promotion Promotion

Mix Mix Mix Mix

PlacePlacePlacePlace

MixMixMixMix

Price Price Price Price

Mix Mix Mix Mix

Product Product Product Product

Mix Mix Mix Mix

Marketing Marketing Marketing Marketing

Mix Mix Mix Mix

MMMMARKETING ARKETING ARKETING ARKETING MMMMIXIXIXIX

Marketing mix is the set of marketing tools that the firm uses to

pursue its marketing objectives in the target market.

According to Jerom McCarthy, the well known American professor

of marketing who describes the marketing mix in terms of the four

P’s classifying the variable under four head.


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Domestic Domestic Domestic Domestic

Market Market Market Market

OEM’s [original OEM’s [original OEM’s [original OEM’s [original

equipment equipment equipment equipment

After market or After market or After market or After market or

replacement market replacement market replacement market replacement market

PPPPRODUCT MIXRODUCT MIXRODUCT MIXRODUCT MIX &&&& MMMMARKET ARKET ARKET ARKET

SSSSEGMENTATIONEGMENTATIONEGMENTATIONEGMENTATION

PRODUCT MIX

A product mix is the set of all items that a seller offers for sale.

Product mix of Bharat Gears Ltd are Follows:

☯☯☯☯ ProdProdProdProduct planninguct planninguct planninguct planning

☯☯☯☯ Branding decisionBranding decisionBranding decisionBranding decision

☯☯☯☯ LabelingLabelingLabelingLabeling

☯☯☯☯ PackingPackingPackingPacking

☯☯☯☯ After sales servicAfter sales servicAfter sales servicAfter sales serviceseseses

MARKET SEGMENTATION

The concept of Market segmentation is based on the fact that the

markets of commodities are heterogeneous. Two consumers of

same commodity are never in conformity with each other as far as

their nature, habits, taste, interest, income, age, mode of purchasing

or other attitudes are concerned.

Export Export Export Export

Market Market Market Market

OEM’s [OrigOEM’s [OrigOEM’s [OrigOEM’s [Original inal inal inal

equipment equipment equipment equipment

manufactures]manufactures]manufactures]manufactures]

After market or After market or After market or After market or

replacement market replacement market replacement market replacement market


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MMMMARKETING ARKETING ARKETING ARKETING RRRRESEARCHESEARCHESEARCHESEARCH

Modern marketing system management does not produce what it

can sell but it puts the goods in the market whatever is desired or

required by the consumers what are the customer desires? Or what

does consumer what? It is a burning problem before marketing

executive. Marketing Research helps in gathering the useful info this

regard.

“ Marketing Research is systematic problem analysis model building

& fact finding for the purpose of important decision making &

control in the market of goods & services.

---- Philip Kotler

In Bharat Gears Ltd for domestic market, Marketing Research is

done by the company in participating in trade fair held anywhere in

the country. And secondly there is physical movement of their sales

people all over the country which give them the feed back about the

trend, competition, demand etc of the products.

After doing market research in domestic market they introduced

white metal PB-15 which lead to around 25% cost saving where by

the market share increased substantially.

For export market they started with engineering spares catering

after doing market research.


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PPPPRICING RICING RICING RICING PPPPOLICYOLICYOLICYOLICY

☯☯☯☯ Pricing policy:Pricing policy:Pricing policy:Pricing policy:

In Bharat Gears Ltd pricing policy is divided on the basis of the

products. They have two main categories of products. There is

original products and after replacement products.

☯ For they follow two types of pricing policy;

1. Tender system: It means that prices of product are often

fixed on tender basis.

2. Standard prices: It means that prices remain same for a

period of time either manufactures asks for increase or

customers asks for decrease.

☯ Bharat Gears Ltd follows the following pricing policy:

1111.... ““““What the traffic can BearWhat the traffic can BearWhat the traffic can BearWhat the traffic can Bear”””” pricing: pricing: pricing: pricing:

2222.... Skimming pricing:Skimming pricing:Skimming pricing:Skimming pricing:

3333.... Penetration pricing:Penetration pricing:Penetration pricing:Penetration pricing:

☯☯☯☯ Factors affecting pricing

In Bharat Gears Ltd the following are the factors that influence

prices:

� Quality of inquiryQuality of inquiryQuality of inquiryQuality of inquiry

� CompetitionCompetitionCompetitionCompetition

� Future of the pFuture of the pFuture of the pFuture of the productroductroductroduct

� The customer’s status (Creditability of that co.)The customer’s status (Creditability of that co.)The customer’s status (Creditability of that co.)The customer’s status (Creditability of that co.)


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Bharat Gear Limited Bharat Gear Limited Bharat Gear Limited Bharat Gear Limited

Customers from OEM’s Customers from OEM’s Customers from OEM’s Customers from OEM’s Distributor/Dealer network for after Distributor/Dealer network for after Distributor/Dealer network for after Distributor/Dealer network for after

mamamamanufacturingnufacturingnufacturingnufacturing

CCCCHANNELHANNELHANNELHANNELSSSS OOOOF F F F DDDDISTRIBUTIONISTRIBUTIONISTRIBUTIONISTRIBUTION

☯☯☯☯ Channels of distribution:Channels of distribution:Channels of distribution:Channels of distribution:

The entire function of getting goods into the hand of the consumer is

often referred to as distribution. It is the channel through which goods

are made to move as smoothly as possible to the desired place. In

other words, the route & pathway through which goods flow form the

place to consumption is termed as “ Channels of distribution”

☯ Different patterns of Distribution channels

1. Manufacturer�Consumer

2. Manufacturer�Retailer �Consumer

3. Manufacturer�Wholeseller �Retailer �Consumer

4. Manufacturer�Agent �Whole.S �Retailer �Consumer

As BGL is producing industrial prod its channels of distribution for

its industrial product is as follows:

Bharat Gears Ltd has large network. There are around 200

distributors & retailers in the network.


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AAAADVERTISINGDVERTISINGDVERTISINGDVERTISING

☯☯☯☯ Objective of advertising:Objective of advertising:Objective of advertising:Objective of advertising:

Advertising objectives are essential because it help the advertiser to

know in advance what the company wants to achieve:

☯ Objective of Bharat Gears Ltd:

1. Having major market shareHaving major market shareHaving major market shareHaving major market share

2. To develop & maintain good brand image due to tuff To develop & maintain good brand image due to tuff To develop & maintain good brand image due to tuff To develop & maintain good brand image due to tuff

competitioncompetitioncompetitioncompetition

3. To create demand for the product To create demand for the product To create demand for the product To create demand for the product

4. Increase in salesIncrease in salesIncrease in salesIncrease in sales

☯☯☯☯ Advertising Budget:Advertising Budget:Advertising Budget:Advertising Budget:

How much should a company spend on Advertising? This is

undoubtedly a major decision area in Advertising. This company

produces industrial goods advertising is not done on large

scale.Advertisement budget is decided on the basis of some

percentage of the total sales.

Advertising expenses incurred in

2008-2009 � 26, 00, 000

2009-2010 � 35, 00, 000


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☯☯☯☯ Advertising media:Advertising media:Advertising media:Advertising media:

Media consist of channels for carrying the intended advertising

message to a selected audience.

☯ There are various media of Advertising product:

1. Newspapers 6 .Outdoor media

2. Magazines 7. Transistor

3. Television 8. Window display

4. Direct mail 9. Point of purchase

5. Broad cast media 10. Through exhibition

6.

In Bharat Gears Ltd the most commonly used median are direct mail,

through exhibitions, window display & point of purchase. Through

direct mail they establish a direct communication to a number of

selected members of the target market. In print message they inform

them about new product or development or regular products.

☯☯☯☯ Advertising agency:Advertising agency:Advertising agency:Advertising agency:

Advertising agency has become a major institution

in the field of advertising & marketing. It is an independent concern

acting as a specialist in Advertising.


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SSSSALES PROMOTIONALES PROMOTIONALES PROMOTIONALES PROMOTION

Sales promotion includes those sales activities that supplement both

personal selling, advertising & coordinate them & help to make them

effective, such as display, shows and expositions, demonstration and

other non-recurrent selling efforts not in the ordinary routine.

☯☯☯☯ Objectives of Sales promotion:Objectives of Sales promotion:Objectives of Sales promotion:Objectives of Sales promotion:

Giving the gifts to the dGiving the gifts to the dGiving the gifts to the dGiving the gifts to the dealersealersealersealers

Special discount to the dealers & retailersSpecial discount to the dealers & retailersSpecial discount to the dealers & retailersSpecial discount to the dealers & retailers

☯☯☯☯ Sales promotion tools:Sales promotion tools:Sales promotion tools:Sales promotion tools:

DemonstrationsDemonstrationsDemonstrationsDemonstrations

Free samplesFree samplesFree samplesFree samples

Discounts Discounts Discounts Discounts

o Trade discounts to dealersTrade discounts to dealersTrade discounts to dealersTrade discounts to dealers

o Cash discount to customersCash discount to customersCash discount to customersCash discount to customers

Contest for DealersContest for DealersContest for DealersContest for Dealers

Premiums for DealersPremiums for DealersPremiums for DealersPremiums for Dealers

Coupons for DealersCoupons for DealersCoupons for DealersCoupons for Dealers

Gifts for DealersGifts for DealersGifts for DealersGifts for Dealers

In Bharat Gears Ltd they have various sales promotional tools.

Firstly they do promotion through coupons (for after market only).

Secondly they have cash discount. Thirdly have turnover discount.

Fourthly they are giving gift of Rs 11, 00, 00011, 00, 00011, 00, 00011, 00, 000 approx or any

amount mention in the scheme.

The expenses incurred on sales promotion are:

2008200820082008----2009200920092009 �� 50,00050,00050,00050,000

2009200920092009----2010201020102010 �� 80,00080,00080,00080,000


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CCCCOMPETITORSOMPETITORSOMPETITORSOMPETITORS

The major Competitors of Bharat Gears Ltd are:

☯☯☯☯ Gajra Gears LTD (Indore)Gajra Gears LTD (Indore)Gajra Gears LTD (Indore)Gajra Gears LTD (Indore)

☯☯☯☯ Patel Gears Ltd (Chennai)Patel Gears Ltd (Chennai)Patel Gears Ltd (Chennai)Patel Gears Ltd (Chennai)

☯☯☯☯ Balu India Gears LtBalu India Gears LtBalu India Gears LtBalu India Gears Ltd (Harayana)d (Harayana)d (Harayana)d (Harayana)

In domestic market i.e. within India they sell their products to most

of the cities like Jaipur, Bhopal, Kolkata, Bubneshwar, Mumbai,

Hyderabad, Banglore, Chennai, Delhi, etc. For after market products

they cover over 25% markets in India. They have very good market

status & image all over the country.


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EEEEXPORTSXPORTSXPORTSXPORTS

Bharat Gears Ltd exports its product in more than 8 countries in

the world.

Following are some of the countries in which the company exports:

Bharat Gears Ltd is regular supplier of Gears, Cranks to its

customers all over the world. Apart from existing manufacturing

product line exports, Bharat Gears Ltd also involves itself in the

export of critical spares / parts for marine application. Their market

performance in international market is just fantastic.

13. marketing department

Education