marketingmix pragatools

7/29/2019 MARKETINGMIX PRAGATOOLS

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INTRODUCTION:

Marketing has been for a long time a neglected area in India, because of

protective controls and a prevalence of a sellers market in most products. How

ever, the new trends as the government levels of fearing controls is bound to

results in increasing competition and a change over in many more products to a

buyers market.

Ordinarily marketing is a considered as an activity or function performed

by business firms. Marketing also can be carried out by other organizations or

even by individuals. Whenever we try to persuade somebody to do something, you

are performing, a marketing.

Marketing touches all of us everyday of our lives. We wake up to an

alarm. Then we brush our teeth with Colgate, shave with Gillette. Use

other toiletries and appliances, which are being used for our daily activities.

Computer which is being used for printing, all are produced and marketed by

manufacturers around the world.

In addition to the range of items normally considered as goods and a

services, what is being marketed may be ideas, such as reducing air pollution or

contributing to the united way; people , such as industrial plant sites or a place to

go for a variation.

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Marketing is the business function that identifies unfulfilled needs and

wants defined and measures their magnitude, determines which target markets

the organization can best serve, besides an appropriate product, services and

programmers to serve these markets and calls up on every one in the

organization to think and serve the customers form as a social point of view,

marketing is the force that harness a national industrial capacities to meet the

societys material wants. William Davidow observed. While great devices are

invented in the laboratory, great products are invented in the marketing

departments.

Definitions of Marketing:

The marketing concept is a point of view on business. It enunciates that

any business is essentially a need satisfying process. It also enunciates that all

the goals of the organization, integrated management action and generation of

consumer satisfaction.

-V.S. RAMASWAMY&S.NAMA KUMARI

Marketing is a social and managerial process by which

individuals groups obtain what they need and want through create, offering and

exchanging products of value with others.

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MARKETING REASEARCH

Several characteristics of modern business encourage the use of

marketing research by business. First the suppliers of product and services need to

have information about consumers in order to product and services more

effectively. Second, as the company grows and starts distributing its products to

different markets, the managers of the company find themselves becoming more

separated from the final consumer of their products.

Marketing research is the function of which links the consumer andpublic to the marketing through information information used to identify

and defining marketing opportunities and problem generate, refine and evaluate

marketing action; monitor marketing performance and improve understanding

of marketing as a process.

Marketing research specifies the information required to address these

issues; designing the method for collecting information; manage and implement

the data collection techniques the analysis and interpretation and communicates

the findings and suggestions.

The concept of markets brings us full circle to the concept of marketing,

marketing means human activity taking place in relation to markets. Marketing

means working with markets to actualize potential exchanges for the purpose of

satisfaction human needs and wants.

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Marketing Management:

Marketing Management is the process of planning and executing the conception,

pricing, promotion and distribution of ideas goods and services to create

exchanges that satisfy individual and organizational objectives.

-American Marketing Association.

Marketing is the performance of business activities that directs the flow goods and

services from products to customers or user to satisfy customer and

accomplish the firms objectives.

CUNDIFF

The aim of marketing is to make selling superfluous. The aim is to know and

understanding the customer as well as that the product or services fits and it self.

P.F DRUCKER

Marketing is the total system of business activities designed to plan, price, and

promote and distributing want satisfy products to target markets to achieve

organizational objectives.

-J. STANTAN

Thus marketing actually confines many activities such as marketing research,

product development, distribution, pricing, advertising, personal selling and

other designed to sense, serve and satisfy and consumer needs while meeting

the organizational goals.

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For a company or succeed and grow, all companies must look a head and

develop long-term strategies to meet the changing contribution in their

industries. Marketing plays an important role in strategic planning.

The company must look into its environment, which factors deeply effect the

company. The marketing environment offers both opportunities and threats

and the company must use its marketing research and marketing intelligence

systems to watch the changing environment.

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OBJECTIVES

To know the product line and products mix of Praga tools and trace

importance of branding and packaging in its marketing.

To know the effectiveness of pricing methods followed by Praga

tools ltd.

To know the row of distribution channels in making Praga tools a

successful market.

To evaluate the promotional strategies Praga tools and suggest some

measures for any drawbacks in those strategies.

To know the customer perception towards Praga.

To know the customer level of satisfaction.

To evaluate the service provided to the customers,.

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NEED FOR THE STUDY

Machine tools industry is the backbone of all major industries,

like automobiles. Heavy electronics, railways, defenses etc., in recent years

these industries has developed tremendously with the development of the huge

industries. The private entrepreneurs have shown a lot of interest in these

Industries. Even though the product is small it plays an important role in the

moving the other industries flexibly.

The strategies adopted by the company to sell the products and

to reach the targeted sales have a greater importance in to bringing out the best

possible result from various elements of marketing combinations.

In marketing there are two different but related processes.

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The first one deals with stimulation of deals while the second

deals with the physical distribution of goods.

SCOPE OF THE STUDY

The scope of the study is confined in the twin cities only

The study is limited to 45 days

The data collection from the respondents is qualitative in nature i.e.,

views, opinions, etc., so it is not a convenient data for the study for the

study for a longer duration.

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RESEARCH METHODOLOGY

The following is methodology adopted for study.

Sources of data:

This methodology adopted and the information collected for this

study is exclusively Secondary data and has been compiled using the following.

Company files

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2) Developing the research plan:-

Most efficient plan for gathering the needed information to be developed

Contains

The following:

a) Data sources: -

Primary data. Secondary data.

primary data:- This is first hand information collected from original Sources

through various methods such as observation, interviews, etc primary Data

collected by interviewing persons chosen for this study. They include Students

for various academic backgrounds.

For the purpose of this study structured or directive interviews are

employed His is an interview with a detail standard schedule where in Information

is Collected in minimum time for respondent. Structured Interview makes use of a

questionnaire in collecting the information from the respondents.

There is various methods of data collection like:-

Methods of primary data collection:-

Observation

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Interviewing

Mail survey

Experimentation

Simulation

Projective techniques

Questionnaires

In this study, interview techniques of data collection are practiced.

Secondary data: - secondary data is the collected from sources which contain data

that has been collected and compiled for another purpose. It may be defined as

data that for an earlier purpose other than currently Pursued.

The secondary in this study consists of:-

1. published records reports

2. technical and trade journals

3. book magazines and newspapers

4. public records and statistics

5. related websites

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sampling procedure

i)Questionnaire:- The questionnaire is to get the specific information about

the specific problems so that the after analysis and interpretation results in

a better application of the problem.

ii) sample Selection:- The process includes:

sampling plan and unit

sampling size

sampling procedure

contact method

iii)Sampling plan and unit :- It is a detailed plan regarding the designs Prior

to the actual research work . it refers to the procedures the research Would

adopt in selecting items for the samples. Sample means representation Items of

the population. Since it is difficult the study the population, sample can be on the

population and study can be conducted. The sampling unit is the geographical one

such as state, district, village, and etc. or a construction unit such as House, flats,

and etc or it is social unit such as family club school etc , or it may be

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individual or a thing .The sample units for the survey were schools, College and

individuals in a given area.

iv)sample size:- this refers to the no of items selected from the universe to

constitute a sample in other words the number of respondents from which

data is collected.

vi) Sampling procedures:-This refers to the procedures to be followed in selecting

the sample from the population. The sampling procedure can be:

Method of sampling:- The important method of sampling are stated below . .

- Restricted or random sampling method

- Simple or unrestricted random sampling

A) Restricted or random sampling:-

It may be following types:

Stratified sampling

Systematic sampling

Cluster sampling

Area sampling

B) Non random sampling:-

It may be of following type:

1. Judgment or positive sampling

2. Quota sampling

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3. Convenience sampling

In this considered convenience and judgment sampling methods of

non random sampling and cluster and area sampling under restricted random

sampling. The total area of happened to be a big one. Hence the best and

convenient way is adopted in this study by dividing the area into a small non-

overlapping area and a sampling is drawn randomly which amounted to area

sampling.

3) COLLECT THE INFORMATION:-

The primary data is collected with utmost care , so to avoid any sample

Basis or error . It is the cost list , life - blood and time consuming aspect of

research.

4) ANALYZE THE INFORMATION:-

The data collected is tabulated with utmost care and caution by Employing

sample statistical tools like means , sample average , percentage etc To infer

the salient finding of the study. In order to strengthen the finding Pictorial and

graphical techniques are utilized.

5) PRESENTATION OF FINDINGS:-

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The findings are presented in sample language so as that manager in

Understand and get what he wants. The findings report has been prepared

such that it can be clearly understood by the reader and also useful for

the company it has been prepared keeping In view the requirements of

Osmania university.

LIMITATIONS

The scope of the study is limited to Hyderabad only.

This study is limited to Praga tools only.

The observation is there within a specific time i.e., 6 weeks.

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The data given by some of the respondents are not accurate

due to lack of time.

There is a possibility of causal or careless answers by the

respondent.

.

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INDUSTRY PROFILE

Introductionheavy machine tools industry

India ranks nineteenth in production and sixteenth in consumption of machine

tools in the world. The Indian machine tool industry averaged more than 35 per

cent growth in 2004-05. Imports exceeded production in the year 2004 with US$

356 million worth machine tools being imported while the production was only

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US$ 225 million. Machine Tools form 1 per cent of India's engineering industry

and contribute 0.3 per cent of total machinery exports.

The Indian machine tool industry currently consists of about 450

manufacturing units of which approximately 33 per cent (150 units) fall under the

organized category. Further, ten major Indian companies constitute almost 70 per

cent of the total production. The government-owned Hindustan Machine Tools

Limited (HMT) alone accounts for nearly 32 per cent of machine tools

manufactured in India. Approximately 75 per cent of the Indian machine tool

producers have received the coveted ISO certification. While the large organized

players cater to India's heavy and medium industries, the small scale sector meets

the demand of ancillary and other units

ORIGEN OF MACHINE TOOL INDUSTRY:

The oldest machine tools company with its decades in the field d of heavy

machine s is M/S PRAGA TOOLS LIMITED. It as a machine tool manufacturing

organization needs no reference. It has got a well-acknowledged product group

and brand images supported by world wide clientele.

HEAVY MACHINES A HISTORY:

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Heavy machine industry was incorporated as a joint stock company in private

sector in the year 1983. Technical assistance of Czechoslovakian engineers was

sought to make the beginning. Name Praga originated from this association

with Czech national after Prague their capital. Alter in March 1959, the

government of India acquired controlling interest by subscribing to the majority

shares in the erstwhile Praga tools limited. And placed the company under the

administrative control of the ministry of commerce and industry. Subsequently

ministry of defense took over the administrative control with effect from

December 27, 1963 and from April 25, 1986; the administrative control was again

transferred to the ministry of industry (department of public enterprise).

THE GROWTH OF MACHINE TOOLS INDUSTRY

Praga, s wisest investment has been in its excellent collaboration with world

famous names like Jones and shipman of U.K., Gambian of France and George

fisher of Switzerland, Mitsubishi heavy industries on Praga producing machine

tools of their highest quality conforming to international standards. y virtue of

their dependability, precision engineering and proven performance, Praga

machine tools are penetrating into larger segments of foreign markets including

U.K., C.I.S, Canada Australia, France, Singapore, Holland, Bulgaria, Indonesia,

Germany, Japan, U.S.A. etc.,

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Praga is even more proud of the fact it ahs contributed to the

development of the machine tool industry in the country and the creation of a vast

band of skilled technicians. Thus Praga today, is a name to recon with in the

machine tool industry.

Pragas most treasured testimonial is user preference for Praga products- the

expression of total satisfaction from its clientele.

EVOLUTION OF NEW TECHNOLOGY- CNC MACHINES:

because of the rapid advancement in technology, the need for use of computers

instead of control units arise and one needs to replace as much of the conventional

NC hardware with software as possible and simplify the remaining hardware. The

one that does this is the CNC. The CNC (computer numerical mini-computer,

controlled by stores instruction, to perform some or all of the basic numerical

control functions.

COMPANY PROFILE

Praga is one of the leading machine tool manufacturing units in India. Established

in 1943, pragas products are well known in the field of machine tools. The

company is organized in four divisions viz., the machine tool, forge, foundry and

C.N.C. Division which pulsate with the activities of 1940 employees, turning out

wide range of products. The four divisions, equipped with modern facilities for

design, development and manufacture of machine tools, are manned by

qualified personal record of technical knowledge and exquisite craftsman ship

over a period of time years.

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M/s Praga tools limited as a machine tool manufacturing organization

need as no references. As the oldest machine tools company with its decades of

starting of starting in the field and well acknowledged product group and brand

image supported by world wide clientele and then converted as 9001:2000

certificate it has acquired a testimony of impeccable accidentals.

Praga history

Praga tools limited, was incorporated as a joint stock company in private

sector in the year 1943. Technical assistance of Czechoslovakian engineers was

sought make the beginning. Name PRAGA organized from this association

with Czech national after Prague their capital. Later in March 1959, the

government of India acquired controlling interest by subscribing to the

administrative control of the ministry of commerce and industry.

Sub sequent ministry of defense took over the administrative control with

effect from December 27, 1963 and from April 25, 1986, the administrative

control was again transferred to the ministry of industry(department if public

enterprise).

Praga fame:

Praga is proud of its diverse range of machine tools the cutter and tool

grinders, surface grinders, milling machines, copy lathes, thread rolling machines

and drilling machines. In addition, the company also manufactures a wide range

of industrial forgings for railway, auto motives and ordnance applications. Praga

has now gone in for C.N.C. Machines keeping pace with the ever changing

technology.

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Praga s wisest investment has been in its excellent collaboration with world-

famous names like Jones and shipman of U.K., Gambian of France and George

fisher of Switzerland, Mitsubishi heavy industries Japan, kayo spiky also of

Japan. The collaborations have culminated in Praga producing machine tools

of the highest quality conforming to international standards. By virtue of their

dependability, precision engineering and proven performance, Praga machine

tools are penetrating into larger segments, Holland of foreign markets including

U.K,. C.I.S., Canada, Australia, Singapore, Holland, Bulgaria, Indonesia,

Germany, Japan, U.S.A. etc...

Praga is even more proud of the fact that has contributed to the

development of the machine tool industry in the country and creation of a vast

band of skilled technicians. Thus Praga today, is a name to recon with in the

machine tool industry.

There is a most treasured testimonial is user performance for Praga

products the expression of total satisfaction from its clientele.

There is a wide talk in the industrial sector that PRAGA stands for

1. Precision

2. Reliability

3. Adaptability

4. Genuine concern

5. Assurance in quality

Thus reveals the fame acquired by Praga in its long successful run for over

59years.

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DEMANDS OF

CUSTOMER

R&D P.P.C P.E.D

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PROCESS AT

PRAGA


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MARKETING

MATERIALS

M.T.-1 M.T.-11 M.T.A

ASSEMBLY

PRODUCT

CUSTOMER

SATISFACTION

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H R D

Customer Training employees


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ORGANIZATION CHART OF R&D

MANAGER

Divisional manager Divisional manager Divisional manager

Assistance manager Assistance manager

Jr.manager Jr.manager Jr.manager Jr.manager

Sr. Dosmen Sr.Dosmen Sr.Dosmen

Jr.Dosmen Jr.Dosmen Jr. Dosmen

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PRODUCTION PLANNING AND CONTROL:

P.P.C. Is a link between manufacturing department and materials

Department? It comes to know of the customer requirements through the

marketing Department and decides the sequence of operations as per the sales

plan.

PRODUCT ENGINEERING DEPARTMENT (P.E.DE):

The main function of this department is tool design and tool planning it

receives the component drawing from R & D and designs the Tools required to

produce those components and sends them for assembly.

MATERIALS AND SCIENCE DEPARTMENT:

The chief activity of this department is to procure raw materials to

Manufacture products and tools as inferred from the rout card prepared by

P.P.C. It also procures some bearings, forgings, castings etc.

M.T.-1 & M.+.- 11:

The machines manufactured in M.T- 1 are cutter and tool grinder and

surface grinder. On the whole, M. T.-1 caters to the production of heavy

components

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M.T-11 mainly manufactures smaller components various rolling and

grinding Machines used in M.T.11 are:

1. Surface grinding machine used for flat jobs.

2. Thread formed rolling machine -used for the manufacture of automobile parts.

3. Hi-fin dry rolling machine.

4. CNC lathe.

MACHINE TOOL ACCESSORY (M.T.A):

It receives the raw materials from materials department to produce

chucks which are job holding devices. This department produces two type of

chuck that is, lathe chucks used in conventional lathes and over chucks in CNC

machines.

ASSEMBLY:

The products of M.T.-1, M.T.-11&MTA are sent to his department for

final assembly. Hence all the mentioned above in M.T.-1&M.T.-11 are obtained

as finished product from assembly with the machines being even painted and

polished.

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QUALITY CONTROL INSPECTION (Q.C.1):

This department assures the customer of the quality of products

through Documentation. It checks for the variation in the production of any

component at every stage of operation analysis the variation and takes

corrective action against i Final inspection that is performance tests of machines is

done in assembly.

FINANCE:

Two divisions look after the two major activities of finance department

that is the purchase accounts division & the par-roll division. Purchase accounts

division looks after payment to parties and pay-roll division looks after the

payment to employees.

HUMAN RESOURCE DEVELOPMENT DEPARTMENT:

The functions of HRD are:

1. To create facilities for employees to enhance their skills.

2. To provide skilled man power for present and future needs.

For this performance evaluation is done on a quarterly basis to

encourage the employees.

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ELECTRONIC DATA PROCESSING DEPARTMENT (E.D.P):

This department processes the data related to pay roll, inventory man

machine Utilization etc. It also acquired the data related to provider. Fund trust,

income tax evaluation and return etc. Attendance of the workers is also Taken

care by this department.

COMPUTERISED NUMERICAL CONTROL DIVISION (C.N.C):

The various machines in their functions are briefly described below:

1. Horizontal machining centers have axes(x, y, z and rotary axes) and are

used in the Production of automobile and defense parts.

2. Horizons and vertical milling machines are four axes machines used for

milling and drilling.

3. Grinding and Plano milling machines used for roughing only. These are

not computerized.

4. C.N.C. Lathe is a 2 axis machine (x & y axes). Manual data input is

given for small functions and the mechanism is same as that of machining

center.

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FORGE AND FOUNDARY DIVISION:

Various heat treatment processes are carried out in the forge shop and

later the components are hammered using pneumatic hammer, hydraulic

hammed, counter Bolt hammer etc,. To the required dimension.

In foundry, carbon dioxide is passed though sand mixed with sodium

silicate. The Induction furnace and cupola here 3 tones capacity each and

used for charge preparation.

TYPES OF MACHINE TOOLS PRODUSED:

The various types of machines tools and accessories produced in Praga

are here under:

1. Conventional machine:

a. Cold forming machines

1.thread rolling machines.

2. Spine rolling machines.

3. Pulley forming machines.

4. Tube finishing machines.

b. Milling machines

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c. Surface grinding machines

d. Cutter and tool grinding machines

2. CNC machines

a. Horizontal machining center

b. Lathe

c. Milling machines

d. Cutter tool grinding machines

e. Surface grinding machines

3. machine tools accessories & forgings:

a. Chucks

b. Forged flanges

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EVELUTION OF CNC MACHINES:

Because of the rapid advancement in technology, the need for use of

computers in stand of controller units arise and one needs to replace as much

of the conventional NC hardware with software as possible and simply then

remaining hardware. The one that does this is the CNC. The CNC (computernumerical control) is a self contained NC system for a single for a single

machine tool and it includes a detailed mini-computer, controlled by stores

instruction, to perform some or all of the basis numerical control functions.

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PRAGA view on the business and their customer can be received from their

statement as follows:

We are in business for profit.

Profit comes from customers.

Customers want service.

Speed needs control.

Control comes from efficiency.

Efficiency demands high tech C.N.C.

Money comes from profit.

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PRAGA view from Housekeeping to Happiness is as follows:

Housekeeping means orderliness.

Orderliness means cleanliness.

Cleanliness means quality.

Quality leads to productivity.

Productivity leads to prosperity.

And prosperity means happiness.

PRAGA distinguishes the winner and the looser as fallows:

The winner is always a part of the answer

the looser is always a part of the problem.

The winner always has a problem

the looser always has an excuse.

The winner says let me do it for you

the looser says that is not my job.

The winner sees the answer in every problem

the looser sees a problem in every answer.

The winner says it may be difficult but it is possible

the looser says it may possible but it is too difficult.

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Praga suggests you to be WINNER

Praga defines a customer as fallows:

a customer is the most important visitor on our premises He is not

dependent on us. We are dependant on him. He is not an outsider on our business.

He is part of it. We are not doing him a favor by serving him He is doing us

favor by giving us an opportunity to do so.

- MAHATMA GANDHI

Praga says all of us need to accept then fact that from this Movement our

situation and future is in capable hands of ours.

Pragas successes and happiness starts with you.

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CONCEPTUAL FRAME WORK

MARKETING MIX THE THEORY

MARKET

A Market consists o all the potential customers sharing a particular

need or want who might be willing and able to exchange to satisfy that need

or want.

-Philipkotler

Thus the size of the market depends upon the no of persons who

exhibits the need have resources interest others and are willing to offer these

resources in exchange for what they want.

Marketing

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Marketing is a social and managerial process by which

individuals groups obtain what they need and want through creating, offering and

exchange products of value with others.

-Philipkotler

The concept of markets brings us full circle to the concept of

marketing. Marketing means human activity taking place in relation to markets.

Marketing mean working with markets to actualize potential exchanges for the

purpose of satisfying human needs and wants.

Marketing management:

marketing management is the process of planning and

executing the conception, pricing, promotion and distribution of ideas goods and

services to create exchanges that satisfy individual and organizational objectives

-American Marketing Association.

This definition recognizes that marketing management is a

process of involving analysis planning, implementation, and control; that

covers ideas. Goods an services , that it rests on the notions of exchange; and

that the goal is to produce satisfaction for the parties involved.

Industrial marketing

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Industrial buyers constitute the largest market of the rupee volume of

transactions; involved in industrial buying significantly exceeds that of ultimate

consumers market.

Industrial or business marketing is the process

1. .Determining the needs and requirements of commercial

enterprises Governments and institutions and,

2. Developing the appropriate products, services, prices, distribution

channels and communications to satisfy those requirements

An industrial marketer , as opposed to a consumer goods marketer, concentrates on

meeting the needs of organizations (business, government, institutions)

which purchase goods and services that are incorporated into a finished

products, used to produce a finished products ,or used to facilitates a production

process.

Thus from above understanding we can define industrial marketing

management as marketing of products and services to commercial enterprises,

governments and not-for-profit institutions, either for resale to other industrial

consumer or for use in the production of their own products or services.

1. What customer comprises the industrial market?

2. Similarities between the customer and consumer goods customer.

3. What forces influence the behavior of industrial market demand?

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Marketing mix:

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

pursues its marketing objectives in the target market.

Philipkotler

There are literally dozens of marketing mix tools. Mc Carthy popularized a four

factor classification of these tools called the 4 P`s

1.Product

2.Price

3.Place

4.Promation

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Marketing

Mix

Produc

t

Price

Place

Sales Promotion

Discounts

Allowances

Payment period

Credit terms

Advertising

Sales force

Public relations

direct marketing


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PRODUCT

People satisfy their needs and wants with products. Let us define

products broadly to cover anything that can be offered to some one to satisfy a

need or want. Normally the word product brings to our mind a physical object,

such as an automobile, a television set or a soft drink.

Since a product is simply a bundle of properties, it should posses those

properties which fit into the needs of target market s in any way which will give

the marketer the greatest competitive advantage. Due to the diversity of needs a

product a single product or even a single line of products, i.e. products which

serve the same general purpose or are so closely associated with the customers

who buy them together.

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Promoti

on

Product variety

Quality

Design

Features

Brand name

Packaging

Sizes

Services

Warranties

Returns

List price

ChannelsCoverage

Assortment

s

Locations

Inventory

Transport


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PRODUCT TYPES

Classification of products

Consumer goods industrial goods

1. Consumer goods are products intended for use by ultimate household

consumers for non business purposes.

2. Industrial products intended for use in producing other goods or in rendering

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A) Convenience

Goods

b) Shopping Goods

c) Specialty Goods

A) Material & Parts

b) Capital items

c) Supplies &

Services


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services in business.

Product line

A product line is groups that are closely related because they perform a

similar function, are sold to the same customer groups, are marketed through the

same channels or make up a particular price range.

-Philipkotl

er

A group of similar products intended for essentially similar use.

A group of products that are closely related, because they function in a

similar manner, are sold to the same customer groups. And are marketed through

the same types of outlets or fall within given ranges.

Product line analysis:

Product line managers need two types of information. First they must

know the sales and profits of each item in the line. Second, they must know their

product line is to be compared with competitors product lines.

Product Mix

A product mix (also called product assortment) is the set of all product lines and

items that a particular seller offers sale to buyers.

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-Philipkotler

the set of all products lines and items that a particular seller offers for sale to

buyers.

Or

The full list of products offered for sale by a company

PRICE

All profits organizations and many non-profit organizations set prices on

their products or services. Price goes by names. Price is all around us. You pay

rent for your apartment, tuition for education, and a fee to your physician or

dentist. The airlines, railway, taxi and bus companies charge you a fare; the

local utilities call their price a rate; and the local bank charges you the money you

barrow.

Through most of history, prices were set by buyers and sellers

negotiating with each other. Seller would ask for a higher price than they

expected to receive, and buyers would offer le s than they expected to pay.

Through bargaining they would arrive at an acceptable price. Setting the price.

Pricing is a problem when a firm has to set price for the first time. This

happens when the firm develops or acquires a new product, when it introduces its

regular product into a new distribution channels or geographical area, and when it

enters bids on new contract work.

The most decide where to position its product, quality and price. One firm

offers a high quality product at a higher price; another firm offers an average

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8. Social and ethical considerations

9. Government polices

10. Buying patterns of the consumers

PLACE

A channel of distribution or marketing is the structure of intercompany

organization units and extra-company agents, dealers, wholesalers, and retailers

through which a commodity or products or services are marketed.

The distribution channel is the movement of goods and services between

the point of production and the point of consumption through institutions that

perform a verity of marketing activities. The major participants in the destitution

channel are:

Producers, intermediaries and consumers, the participants in the industrial

marketing system are linked by both direct and indirect channels. The direct

channels is traditionally defined as one in which the producers control the

distribution of their products from to user or OEM customer

At the risk of over simplification it may be useful to identify some of

the more common channels arrangements through which industrial goods reach

user and OEM customers.

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Distribution channels

i. Manufacturer to branch house or branch office to customers.

ii. Manufacturer to distribution to customer.

iii. Manufacturer to agent to customer.

iv. Manufacturer to agent to distributor to customer.

PROMATION

the coordination of all seller initiated to set up channels of information

and persuasion to facilitate the sale of goods or services or the acceptance of an

idea.

The word promotion originates from the Latino word promo ere. The meaning

is to move forward or to push forward or advance an idea.

Promotion is the final element in the marketing mix, after nature of the

product is decided Its price is fixed and methods of distribution are adopted,

the producer has to take effective steps to meet the consumer in the market. In

consumers oriented markets the producer must know what are required by the

consumers and to make the consumers know from where, when, how and at

price the products would be available. They have to apply the promotional

Methods like advertising and personal selling.

.

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Sales promotion:

sales promotion is an organized effort applied to selling job to secure the

greatest effectiveness for advertising and dealers help

George. W. Hopkins.

Purpose of sale promotion:

Customers are selective in their buying choices and a good promotional

program me is needed to reach them. The basic purpose of promotion is to

disseminate information to the potential customers. Sellers use incentive type

promotion to attract new customers. To reward l royal customers and to increase

the repurchase rates of occasional users sales promotion yield faster responses in

sales than advertising. Sales promotion is considered as a special selling effort to

accelerate sales. Brand switchers are primarily looking for low price, goods

valve and premium. Sales promotion is likely to turn them into loyal brand users.

MARKETING CHANNELS

To reach the target market, the marketer uses three kinds of marketing

channels communication channels deliver and receive message from target buyers

and include newspapers, magazines, radio, television, mail, telephone, bill boards,

posters, filers, CDs, audiotapes, and the internet. Beyond these communications

are conveyed by facial expressions and clothing, the loll of retail stores, and many

other media. Marketers are increasingly adding dialogue channels (e-mail & tool

free numbers) to counter-balance the normal monologue channels (such as ads).

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The marketer uses distribution channels to display, sell, or deliver the

physical product or services to the buyer or user. They include distributors,

wholesalers, retailers, and agents.

The marketer also uses services channels to carry out transactions with

potential buyers or services channels include warehouses, transportation

companies, bank and insurance companies that facilitate transactions. Marketers

clearly face a design problem in choosing the best mix of communication,

distribution, and services channels for their offerings.

CHANGING MARKETING PRACTCES IN CUSTOMER RELATIONSHIP

MARKETING

In addition to e-marketing, companies are becoming more skillful

customer relationship. Marketing and database marketing .customer relationship

marketing (CRM) enables companies to provide excellent real-time customer

service by developing relation ship with each valued customer through the

effective use of individual account information. Based on what they know about

each customer, companies can customize market offering, services, programs

messages and media.

Customer relationship marketing holds that a major driver of company

profitability is the aggregate value of the companys customer base.

Winning companies are more productive in acquiring and growing

customers. These companies improve the of their customer base by excelling the

fallowing customer strategies.

Reducing the rate of customer definition.

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Increasing the longevity of customer.

Enhancing the growth potential of each customer through share

of wallet cross and up selling.

Making low profit customers more profitable or terminating them.

Focusing disproportionate effort or high value customers.

of the groundwork for customer relationship marketing was laid by the Dom

peppers a Martha Rogers in their book, the one to-one future. Pepper and Rogers

used a four structural framework for one-to-one marketing.

Identify your prospects and customers. Do not go after everyone.

Differentiate customers in firms of their needs and value to your

company. As for customer value, companies should proportionately more

effect on their most valuable customers. Customer value is estimated as the

net present value of all future profits coming from purchases, margin

levels, and referrals, less customers specific serving costs.

Interact with individual customers to improve your learning about

their individual needs and in build stronger relationships.

Customize products, services and messages to each customer.

Tools for tracking and measuring customer satisfaction

Complaint and suggestion system

Customer satisfaction surveys

Ghost shipping

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PROMOTUION MIX

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Produ

cts

COMPANY Services

Prices

Sales promotion

Advertising

Sales force

Public relations

Distribution

channels

Targe

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THE NATURE OF HIGH PERFORMANCE BUSINESS

The consulting firm of ArthurD little proposed a model of the

characteristics of a high performance business. It pointed to four factors as fallows:

Stake holders

Processes

Resources

Organization

.Set strategies to

satisfy key stakeholders

.By improving critical

business process

.And aligning resources

and organizations

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Direct mail,

Telemarketing

And internet

SHAKE HOLDERS

PROCESSES

RESOURCE

ORGANIZATIONS


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RELATIONSHIP MARKETING

To understand customer relationship marketing, we must review the process

involved in attracting and keeping customers. The following figure shows the main

steps in the customer development process

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Prospec

ts

Suspec

ts

First

time

custom

ersRepeat

custom

ers

Clients

MembersAdvocates

Disqualified

prospects

Inactive or

ex-customers

Partners


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Suspects:

The starting point is suspects, everyone who might conceivably buy

the product or services. The company looks hard at the suspects to determine who

most likely prospects.

Prospects:

Those people who have a strong potential interest in the products and the

ability to pay for it.

Disqualified prospects:

They are those, the company reject s because they have poor credit or

would be unprofitable.

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First-time customers:

The company hopes to convert many of its qualified prospects into first-

time customers.

Repeat customers:

The company after converting into first-time customers then converts them

into repeat customers.

Both the first-time customers and repeat customers may continue to buy

from competitors as well.

Clients:

The company converts repeat customers into clients people whom the

company treat very specially and knowledgeably.

Members:

The next challenge is to turn clients into members, by starting a

membership program that offers a whole set of benefits to customers who join.

Advocates:

Hopefully then, the members will turn into advocates. Customer who

enthusiastically recommend the company and is products and services to others.

Partners:

The ultimate challenges are to turn advocates into or drop out for reasons

of bankruptcy, moves to other locations, dissatisfaction, and soon. Here the

companys challenge is to reactive dissatisfied customers through customer win-

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back strategies. It is often easier to retract ex-customers, because the company

knows their names and histories, than to find new ones.

We need to distinguish five different levels of investment in

customer-relationship management

1. Basic marketing:

The salesperson simply sells product.

2. Reactive marketing:

The sales person sells the product and encourages the customer to

call if he or she has questions, comments, or complaints

3. Accountable marketing;

The sales person phones the customer a short a short time after the

sale to check whether the product is meeting expectations and also asks

the customer for suggestion to improve the service and performance.

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4. Proactive marketing:

The company salesperson contacts the customer from time to time

with suggestions about improved product uses or hopeful new products.

5. Partnership marketing ;

The company works continuously with the customer to discover ways

to perform better.

Many companies practice only basic marketing when their markets contain

many customers and their unit profit margins are small.

LEVELS OF RELTAIONSHIP MARKETING

HIGH

MARGIN

MEDIUM

MARGIN

LOW

MARGIN

Many customers/

distributors

Accountable

Reactive

Basic or

reactive

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1. Adding financial benefits:

Two financial benefits that companies can offer are frequency

marketing programs and club marketing programs. Frequency

marketing programs (FMPs) are designed to provide rewards to

customers to who buy frequently and/or in substantial amounts.

Frequency marketing is an acknowledgement of the fact that 20

percent of a company`s customers might account for 80 percent of its

business.

American airlines were one of the first companies to pioneer a

frequency marketing program.

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2. Adding social benefits:

Here company personal work on increasing their social bonds with

customers by individualizing and personalizing customer relationship;

in essence, thoughtful companies turn their customers into clients.

Donnelly, berry and Thompson draw this distinction:

Customers may be nameless to the institution; clients cannot

be nameless. Customers are served as part of the mass or as part of

larger segment; clients are served on an individual basis customers are

served by anyone who happens to be available; clients are served by the

professional assigned to them.

3. Adding structural ties:

The company may supply customers with special equipment or

computer linkages that help customers manage their orders, payroll,

inventory, and so on. A good example for this is McKesson

Corporation, a leading pharmaceutical wholesaler; which invested

millions of dollars.

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DATA ANALYSIS & INTERPRETATION

Customers dealing with praga tools

S.NO PARTICULARS NO.OF

RESPONDENTS

1 0-5 Years 19

2 5-10 Years 3

3 10-15 Years 114 15-20 Years 9

5 Above 20 Years 6

From te above table we can conclude that major number of respondents i.e, 19 are

dealing with praga from 0-5 years. The next major number of resondents i.e., 11,

are dealing with from 10-15 years. 6 respondents are dealing with praga from the

20 years and 9 respondents are dealing with praga since 15 years , only 3

respondents are dealing with from 5-10 years which is the least one.

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Influencing factors dealing with praga tools

S.NO PARTICULARS NO. OF RESPONDENTS

1 Good quality 20

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2 Pricing 6

3 After sales service 18

4 goodwill 8

From the above table we can that major number of respondents felt that after

sales service of Praga is then factor to deal with i.e., 18 which comprises 35% of

the total. Some respondents deal because of its good quality and goodwill i.e., 20

to 8 which comprises 38% and 15% of the total respectively. Only few

respondents deal because of its pricing factor i.e., which comprises 12% of the

total.

Grading of pricing of praga tools

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S.NO PARTICULARS NO.RESPONDENTS

1 Excellent 122 Very good 133 Good 114 Average 65 poor 0


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From the above table we can conclude that major number of respondents felt

that the pricing of excellent and very good i.e., 12 and 13 which comprises 29%

and 31% respectively. Some respondents felt that they were good and average i.e.,

11 and 6 respectively had complained about their pricing.

Quality of machines & accessories


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RESPONDENTS

1 Excellent 152 Very good 123 Good 94 Average 5

5 poor 2

From the above table we can conclude that the major number of respondents i.e.,

15 felt that the machines are of excellent quality which comprises 34% of the total.

The next major number of respondents felt that they are of very good quality

which comprises 28% of the total. Some respondents felt that they are of good and

average quality i.e., 9and 5 respectively. Only few respondents felt that they were

poor i.e., 2 which comprises 5% of the total. On the whole that the machines &

accessories are of excellent quality.

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S.NO PARTICULARS NO.OF RESPONDENTS

1 Exceeds expectation 9

2 Meets expectation 27

3 Bellow expectation 5

From the above table we can conclude that major number of respondents felt that

the delivery schedule is meeting expectation i.e., 27 which comprises 66% of the

total. Some respondents i.e., 9 felt it that was exceeding expectation which

comprises 22% of the total. Only few respondents felt that it was below

expectation i.e., 5 which comprises 12% of the total. On the whole the delivery

schedule is meeting expectation.

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Graph representing service


RESPONDENTS

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1 Very fast 20

2 Fast 18

3 Slow 17

4 Very slow 9

From the above table we can say that the major of respondents felt that the

service is very fast which comprises 31% of the total. Some respondents felt that

the services are fast and slow i.e., 18 and 17 which comprises 28% and 27%

respectively. Only few respondents felt that the service is poor which comprises

14% of the total. Of the total. On the whole the service is very good

RELATIONSHIP WITH CUSTOMERS

S.NO PARTICULARS CONTACT PARSONS

1 Excellent 6

2 Very good 9

3 Good 8

4 Average 14

5 poor 13

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From the above table we can conclude that we can conclude that major

number of respondents feel that the relationship of Praga with the customers is

average and poor. This comes to 14 and 13 respectively. And the relationship is

excellent to 6 very good to 9 and good to 8.

SERVICE PROVIDED BYSERVISEMEN


RESPONDENTS

1 Excellent 152 Very good 14

3 Good 10

4 Average 8

5 poor 4

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From the above table we can conclude that the major number of respondents

feel that the service provided by the service men at Praga is excellent and very

good which comes to 15 and 14 of the total respectively. And some respondents

feel that it is good and average which are 10 and 8 respectively.

CUSTOMERS PRESPONSE


RESPONDENTS

1 Fast 14

2 Friendly 18

3 Slow 12

4 poor 5

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From the above table we can conclude that most of the respondents felt

that the machines are really useful which are 23. Some respondents feel that are

quite good which are 16 and some feel it as average which are 13.

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FINDINGS

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The following are the finding from the project done in Praga tools limited.

1. The sales have been gradually decreasing. The reasons may be

Excessive dependences on the traditional customer segments

Unfavorable sales mix and a the absence of strategy

Lack of customer focus- delayed deliveries of machines tools and services

poor marketing skills contributed to the decline in performance of the

company.

Economic imbalances.

2. It is doing well in CNC machines.

3. There is a need of highly technician personal.

4. Pricing of the products is quite satisfactory.

5. There is need of more distribution channel so as to capture of market.

6. Customer care services are also recognizable.

SUGGESTIONS

Highly qualified engineers are required to be appointed.

To complete the present market more promotional strategies are required.

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The strategy adopted present products for the present markets is quite

good.

The service provided by the servicemen is satisfying the customers.

Same is the case with the social benefits.

Financial benefits to the customers to maintain the good relationship is not

implemented by the company.

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EFFECTIVENESS OF MARKETING MIX OF PRAGA TOOLS

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QUASTIONNAIORES FOR CUSTOMERS

NAME:

ADDRESS:

DESIGNATION:

1. How long are you dealing with Praga tools?

a)0-5 yrs b)5-10 c)10-15 d)15-20 e)above 20

2. What are the factors are influenced to deal with Praga tools?

a)good quality b)prices c)timely delivery

3. How fast the quotations offers are provided by Praga tools?

a)very fast b)fast c)slow d)very slow

4. How do you rate the quality of Praga machines and accessories?

a)excellent b)very good c)good d)bad e)satisfactory

5. What is your opinion on distribution system?


6. What is your opinion on Praga tools doing?


7. Are the Praga tools providing any financial benefits?

a) yes b)no

8. 9) Are the Praga people are providing any social benefits? (Yes/no)

(If yes, specify)

9. 11) What would you think of the usefulness of the machines/accessories

supplied by us?

a) Really useful b) quite good c) average d) no use

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