RATAN TATA:- Leadership Skills

Ratan Tata says I don't believe in taking right decisions I take decisions and then make them right he is businessman investor philanthropist he has laid on the major Tata group composed companies Tata motors Tata steel Tata power Tata consultancy services Tata tea Tata chemical Indian hotels and TCS Tata group is India's and the world's largest business group ratan Tata is born in Surat city of India he is Grand daughter of jamshedji Tata father's name is novel data mother's name is Sunita brother's name is Jimmy Tata when the return data is 10 years old his father and mother got separated he is brought up by Nawaz by Tata his grandmother he has won more brother Noel Tata he learnt schooling from campion School Mumbai and cathedral and John connon School he has taken his graduation in engineering from architecture in Cornell University is graduated from Cornell University in architecture with structural engineering then he completed his advanced management program from Harvard business School in in in initial days he work on the shop floor the TATA group. Ratan Tata started his career with Tata group Shiva with the shop floor he worked with the Tata steel in initial days at shop floor then slowly started joining other group of companies then then he joined nelco nelco watch 40% in laws and it has got only 2% market share but when ratan Tata joined Danish company started earning profit and market share increased from 2 % to 25% j r d Tata then announced ratan Tata as the chairman of Tata group that time because of less experience lot of people criticize him from their own company people was seeing ratan Tata is not experience and it is in capable of handling Tata group but under his leadership Tata group has emerged a big player in the world he started working in very different areas and he taken the TATA group to the world wide then he started to work in passenger car business then after lot of research she introduce Tata Indica car expert show some defects in Tata Indica because of Tata Indica sloss some experts registered him to sell the Tata passenger car business that are also suggested or convinced that messenger ka business which road then he went to food he went to bill fort to meet and sell the company that meeting hi started and last for 3 and half hours Ford company insulted ratan Tata this is why did you enter in the passenger car business when you are not knowing of it it will be favour if we buy this business from you rajendra feel a shame that representative field insulted he cannot able to forgot the words said by Belfort then he decided not to sell this company to anybody then he started working on Tata Indica because of his hard work Research and planning Tata motors started growing and he got thought of prophet and worldwide Tata motors started recognising same time for was going in loss 44 owner wanted to sell Jaguar and Land Rover Tata group alter dataset we would like to purchase Jaguar and Land Rover then before accepted this proposal of Tata motors to acquire Jaguar and land or Jaguar and Land Rover was sold for 9300 crore then before said you are doing lot of favour to us by purchasing this group generator might might have insulted bill food then and there but he did not because he was a simple person then after that then also Jaguar and Land Rover was taken to a new house by the Tata within that has lot of interest in Tata motors he did used Tata indigo used sumo gold and nanoJodi. Then announced Ventura as a German of that group that time because of this experience lot of people criticizing from there own company people dressing return that is not experienced and it is incapable of handling turtles Robert under his dealership. Who has image of big play in the world started working in very different areas and he taking the red roof to the world wide then he started to work in passenger car business turn off them lot of research in the news 13 do car expert Sean some defects entertained eagle because of that in because lost cell expensive just tell him to send the doctor messenger car business.. also suggested countries that messenger got business with road then he went to for him vegetable phone to meet and send the company that meeting he started and last person of hours for company insulted return turtle they said why did you enter in the passenger car business when you are not knowing all fit it will Ratan Tata launch 100000 rupees car and he delivered his promise to the Indian citizen ratan Tata and Tata motors gives 6666 percent of their annual profit to the charity in 2015 Tata group of companies head 108 billion dollars profit revenue 108 billion he donated in India there is no other company or no other company owner who has donated 60% of his annual profit ratan Tata invested in Snapdeal E-Commerce company he has also invested in Gionee mobile company he is a president of Tata group and chairman of Tata group and chairman of Tata charitable trust he is also on the council on a trade for prime ministers help is also helping Indian industry manufacturing companies and other councils he is on the board of directors of so many companies in India and abroad in 2010 India awarded Padma Bhushan in 2008 awarded Padma vibhushan this which is second and third highest civilian award in India he is very shy in nature he is living in a flat in colaba Mumbai and he like to read lot of books he believes in not only earning profit by business but to understand the responsibility of the society doesn't always believe in if you want to move ahead in the life there will be ups and downs in your life which are very important to keep us going because a straight line even in the ECG means we are not alive urgent Tata has given lot of inspiration quotes written that has inspired lot of people

Top 10 countries in the world which has highest gold reserve

Top 10 countries in the world which has highest gold reserve 10 + India with highest reserve of 586 ton percentage of gold reserve is 5.7% population is 1.35 billion per capita income is $2200 at 2nd place it is Netherland gold reserve in 612 terms turn it has got 66% of its percentage in gold reserve population is 17 million per capita income $55,000 third place is Japan Japanese 765 tons of gold which is 2.4 % of freezer 126 million population per capita income is 40 $1,000 Switzerland at seven number in Switzerland 1040 tons of gold reserve which is 5.1 % of its reserve population is 8.5 million per capita income is $81000 6 number is China China has 1842 tons of gold which is 2.3 % of total population Accept number is Russia Russia's 2066 tons of gold percentage reserve is 17.6 percent of total reserve 145 million income is per capita income $11,000 at fourth place it's France which has got 2436 terms of 12 tense of gold 67 million population per capita income is 45000 at the number its Italy gold reserves 2004 852 which is 67.9 % of which reserve in percentage population is 61 million per capita income is $40,000 at number 2 position in Germany which has got 3371 tons of gold which is 7.6 % in percentage in reserve population is 83 million is USA it has got 8134 gold 75% percentage of population 325 million population 58500 per capita income

JAPAN - Adavced Technology - living Way Ahead of rest of the World

*******************************************************************************
JAPAN - Adavced Technology - living Way Ahead of rest of the World *******************************************************************************
Japanese Always at number one position in every aspects of life it is maybe regarding product or services or anything else Japan has won renovated so many things *******************************************************************************
any foreigner goes to Japan would astonish about its innovation everybody is thinking that Japanese are living in the next generation and it is living in the future and Japan has latest technology *******************************************************************************
example 1 super toilet Japanese toilets are smart and technological advance it has got heated think and tank super hi tech toilet are so much advanced it has got music system for automatic perfume system adjustable seat various handles it is advance it is equiped with the advanced technology and they are using this kind of toilet since last 30 years *******************************************************************************
Japanese bullet train Japanese bullet train travel with 300 to 350 km per hour comfortable safe and time manage . they have got 6 different types of bullet train Japan has introduced bullet train to the world before 50 years back .*******************************************************************************
black price fries word word me not be knowing about Black price but Japanese are eating black price these are made up of black spicy potato they are delicious and healthy *******************************************************************************
. portable ash trace . .*******************************************************************************
in Japan lot of people are used to smoke cigarettes but nowadays they are using portable ash trace so there should not be any any garbage / dust because of ashes . *******************************************************************************
. even streets are clean and clear . .*******************************************************************************
Shining in the dark tattoo. .*******************************************************************************
in all the world we have tattoos like they are not shine in the dark place . .*******************************************************************************
but in Japan they have take good technology in tattoo that tattoo is that is Brighten by UV rays. .*******************************************************************************
Japan there are lot of small shops roadside there are farmers used to come and drop different types of vegetables and people going by that area will take as much as vegetable as they want and they put a drop the money which is appropriate are affordable to them this is done to avoid food vestige vestige food wastage. .*******************************************************************************
Multi level parking system in Japanese what country so there is very less space and that cannot be utilised for the parking so multi level parking system is design one above the other one above the other lot of cars can be Park intelligent parking system this parking system is used since 1965 in Japan robots run hotel in Tokyo Japan capital there is a hotel where robots are working and there are few employees human they come just to charge these robot. .*******************************************************************************
Capsule hotel 4 feet by 7 feet small rooms are there these are made for the tourist who cannot able to afford costly hotels they can stay here for sometime and pay minimum rent and all the facilities are available tvac Wi-Fi charging fridge everything is available those who cannot afford costly hotels. *******************************************************************************
We are going to the space by by spacecraft rocket but Japan is going to the space by elevator normal man can go to the space by sitting at space elevator elevator can be prepared by carbon nanoparticle carbon nanotube the thread used for carbon nanotube anyone company in Japanese started working in which direction in this direction suit by 2035. Will prepare this space elevator so we can able to go to the space by this space elevator so this all these things indicate that Japanese living in next century and way ahead of other countries which is very admirable *******************************************************************************

Personal selling

Personal selling personal selling is a broader concept in which oral presentation is involved in converting one or more prospective buyers for the purpose of making sell it is marketing process in which consumers are personally persuaded for buying goods and services produced and offered by the manufacturer personal selling can be defined as personal or impersonal process of assisting for pursuing a prospective buyer customer to buy a commodity or service and to act favorably upon an idea that has commercial significance to the seller personal selling can also be regarded as an act of passing on the goods in exchange for the money received so it is also known as the direct selling or countably where the theme and the money cross the counter mechanical essential of effective personal selling knowledge of the company personal selling required thozha knowledge about the company's policies procedures image future target quality aspects of the product after sales service extra be knowledge of the product personal selling requires a complete and up to date knowledge of the product which is desired to be marketed it includes products strength quality weakness knowledge of the competition personal selling require up to date knowledge of the competition that prevails in the market knowledge of the prospective customers personal selling to become very effective must required knowledge about customers wants and their changing consumption pattern knowledge of the selling process also requires the complete knowledge about the various stages in selling process that is prospective representation and after sale services

Different forms of sales promotion

Different forms of sales promotion sales promotion techniques and methods sales promotion are mainly of two kinds they are consumer sales promotion these are the activities intended to educate or inform the consumers and those intended to stimulate the consumers following are the devices of consumer sales promotion samples free samples of a product in a small quantity are distributed to the consumer other customer to introduce a new brand or type or to expand the market the consumers get the chance to try the product and they can be familiar with the product generally this policy is used for low unit value products like toothpaste bath soaps daily food products extra coupons on is a certificate that reduces price where a consumer is entitled to save some amount on the purchase of specific product coupons are usually issue directly by the manufacturers through mail or through the retailers when a buyer gives a coupon to the dealer he gets the product at a lower price for example if original price of the product is hundred with a coupon 80demonstration demonstration can be arranged for newly introduced products for portable products for technical products food processor mixer grinders office machine extra through demonstration features and final points of the product can be described in effective manner money refund orders this offer is usually stated as a media advertising that the manufacturer will be refunding the full purchase price within a stated period if the buyer is not completely satisfied with the given product referred offer creates additional interest and increases cells consider billi Considerably Premium offer premium means offering a gift article along with the purchase of a product value of a give article depends on the value of the product purchase example instant coffee sold in reusable Java on purchasing one pair of executive shirt and pant I can be offered freely trading stamps premium in the form of trading stamp is given for purchasing in a particular shop number and value of the stems that the buyer received from seller depend on the value of the purchase contest contest different types of contest work visa organised for the customers which help to stimulate the buyers interest in the product in this contest participant compete for the prices on the basis of their skills or create ideas institutes takes the submit their names to be included in a drawing of prize winners and those who are lucky they get the chance of winning cash prizes free air travels or luxurious articles the different types of contents are beauty contest quiz contest contest to complete a slogan for suggesting a correct brand name Catalogue catalogue price list are also used as a sales promotion device which contain the details about the type and the price of the product of the particular form now a days pictures of small poster of the product are also given in this pamplets the main objective of the catalogue are to get orders for the company products to develop the recognition among buyers to get product recommendation to get request for the detailed information and so on catalogues can be offered in case of portable products electrical appliances or products for technical nature discounts or concessions discount result in a deduction from the original price of the production is generally offered for a temporary period to clear unsold stock or to offer seasonal and festival discounts for example tourism companies or hotels usually offer price reductions for a specific period displays and shows in a big showrooms and retail shops counter boards banners displays being displayed in speak and attractive pictures of a famous personalities using the product are arranged and decorated in a such a manner that a customer passing by can get attracted towards the product the main aim of using display promotion is to remind the customer about the product when he is about to purchase the product trade dealer sales promotion trade promotions are arranged by the manufacturers to stimulate the dealers of a wholesaler to stock and boost the manufacturer's product the main objective is to reduce how to induce middlemen to stock and promote the manufacturer's product and stimulate him to push his brand in the market dealer sales promotion provides the following selling devices advertising and display material there is a provision for free advertising and display material like banners display boards posters of the products to dealers and middle man there at the point of purchase po po at the point of Celsius depending on once you. The kind of display consumers when they are buying or actually spending their money Trade all dealer sales promotion arranged by the manufacturers to simulate the dealers next store demonstration retail demonstration are supplied by the manufacturers for the preparing and distributing the product as a retail sample sample written demonstration are supplied by the manufacturers for the preparing and distributing the product as a retail sample for example in case of nescafe instant coffee to consumers the demonstrator representative immediately distribute the sample for trial on the spot or demonstration regarding method of using the product is shown this helps the dealer in attracting customers and convincing them about the utility of the product buy back allowance a short term allowance is offered to dealers on each each case bail or other quantity of product purchased during a stated period of time the purpose of providing such allowances as to encourage repurchases of the product immediately after another tradedeal it is also offered at the distribution of new product to motivate and compensate the buyer for the trouble of adding the new product to his top advertising advertising and displays may be given by the manufacturer dealer for featuring his products in his newspaper advertisement radio programs dealers advertisement in the amount of due to him organised by the manufacturer and wholesaler or this device is used to stimulate and motivate distributors and their cell participate in the contest and the highest sale dealer wholesaler or retailer is given a reward premium gift for an order is a given to the retailer for certain quantities of goods purchased in cash or kindsometimes a special incentive in the form of cash is given to his salesman also to post the manufacturers goods Rajasthan competitors goods free goods this device is also used by the manufacturer to promote his dealer or middle Man 2 by his product in a large quantity sailors give certain amount of free goods to wholesalers and retailers at no cost to them which depend on the purchase of a stated amount of the same or another product trade Fair and exhibition trade exhibition and fears are also used for the sales promotion these pairs are arranged by the manufacturer in which he gives invitation to his dealers and wholesalers to attend is fair and exhibition where the special displays and fashion shows are arranged to introduced the maximum number of customers price of this is the most common form of trade promotion with manufacturer of a certain amount of discount to the middleman on the listed price of the product higher the discount higher is the incentive for the dealer to push the products in the market

Sales promotion

Sales promotion meaning sales promotion includes personal selling advertising supplementary selling activities and supplementary selling activities in a broad sense promotion includes all those functions which have to do with the marketing of a product and all other activities to increase sales and expand the market sales promotion in a specific sense refers to the sales activities that supplement both personal selling and advertising and co-ordinate them and help to make them effective such as displays shows and exposition demonstration and other non recurrent selling efforts not enough not in the ordinary routine American marketing association definition by American marketing association objectives of sales promotion the following are the objectives of disseminating information information disseminating information disseminating information true salesman and dealers help to salesman to help salesman in selling more to the retailers and consumers third increasing sales the main objective of the sales promotion is to increase sales directly or with publicity through media advantages of sales promotion more acceptance most of the sales promotion devices like contest coupons premiums extra can be used faster than the other promotion methods such as advertisement effective sales support sales promotion policies are useful for personal and impersonal salesmanship it reduces salesman's efforts in prospective effective control the measures of the sales promotion and the management has effective control over the various methods unit cost search promotion is always the outcome of a large scale methods of large scale ceiling should be used

functions of advertising

re the functions of advertising may be classified as primary functions and secondary functions primary functions of advertising increase the sales advertising creates and stimulus demand opens and expands the market therefore it increases the sales of the product be providing dealers advertising helps to persuade dealers to maintain more and more stock of the goods advertise providing help to dealers it helps the wholesaler retailers and dealers to sell the advertised goods does the dealers can sell the goods quickly and can set and get more profits be creating insurance advertising helps to create insurance for the manufacturers business advertising creates brand image and ensures the manufacturer against business risk elimination of seasonal fluctuations it eliminates relations the season fluctuations seasonal fluctuations particularly for the seasonal products by describing their different uses during of seasons f of Turing advertising ensures the consumers better quality of goods the creation of confidence in the minds of the consumer or public for the products is done by advertising expansion of business advertising increases the demand for the commodities and this results in increased production raising standard of living advertising helps to raise the standard of living of the customer by increasing them to use new and better things at competitive rates secondary functions of advertising dissemination of information advertisement provide the necessary information regarding the product producer dealers salesman advertisement are very useful for dealers and salesman encouragement to salesman and lending of moral support advertising is very useful to salesman it helps to boost is moral due to increase volume of sales his income will also increase sense of belonging advertising often create good impact on workers who work in the factory producing advertised its impact on executives advertisement create a feeling among the executive and the administrative staff that they have some responsibilities towards the public creating a feeling of security a feeling of security develops among workers they feel that their job is permanent and they have better chances of promotion as business growth securing better employees the manufacturer can secure and appoint better employees due to advertising

Advertising media

advertising media a priest publicity this remains the most popular method of publicity today newspaper and magazine have become a part of cultural and political life of people now where is publicity takes two forms newspaper and magazines newspapers are brought largely for their news values as such they are appropriate for announcing new products and new additions to the existing product because of the frequency of publication they are also well suited to opportunity markets the various advantages maybe some has follows there is very NOOK and corner and hence coverage is high high frequency enables speedy preparation and publication of advertisement newspapers of for a lot of flexibility according to the convenience and necessity of the advertiser the shape and the size of advertisements could be changed advertising in newspaper is comparatively achieve method of advertising from the cost of point of you by inserting local advertisement in local paper the effectiveness of advertising copy could be tested visual appeals could be created the reputation of the newspaper is available to the advertiser's and their products also disadvantages visual effects may not be created in practice as the papers are usually printed on the chief news print the life of the newspaper is extremely short so frequent advertising is required there is a waste of circulation advertisement is carried out places where there is no market existing no possibility of creating a new market however this effect is avoided in local newspaper advertising local paper advertising says they have a concentrated coverage of limited area of uniformity in advertising requirements example rated prescribed for popular dehleez is high so advertisements have to be small in size newspaper maybe national Hindu anandabazar patrika or they may be local they are also categorised into morning papers evening papers the life of morning papers is more because they can read at anytime throughout the day while the lifespan of evening paper is short magazine another medium under the press publicity is magazines and journals they also offer good facility because magazines are read leisurely when The reader is mentally prepared to receive advertisement merits better production better reproduction of advertisements in newspapers larger duration of interest magazines are highly selective in nature and waste of circulation is avoided trade magazine reach specialised groups magazine advertising creates prestige reputation and an image of quality there is no crowded atmosphere of advertisements as in the case of newspaper because of small size of magazines the number of advertisement in the page would be one or at most two this increases appearance and makes the advertisements attractive demerits of LIC ability is the chief demerit preparation cost of magazine is high is advertising cost also would be high in elasticity the coverage of magazine and the coverage of the distribution of the goods may not be synchronised advertisements cannot be brought out in time as needed by the advertiser usually the preparation of magazine takes time and urgent advertising cannot be undertaken direct mail this method is direct in its approach and hence often referred to as direct advertising but it retains some of the characteristic of press advertising for instance here also printed materials are used to spread information merit merits of direct mail selectivity advantage network postal services the advertiser advertiser could reach any part of country because of the widest network of postal services advertiser reach any part of the country and have his message conveyed ability in creating a personal contact advertising is made for large masses where as direct mail is intended for the address only the message that cannot be given through advertisement could be managed by direct mail demerits it is not cheap especially when the printing and postal charges are high the preparation of the proper mailing list is not an easy job even the least prepared with utmost care would be become obsolete in short span it has not proved it supremacy in all fields forever it has proved to be ineffective in case of product which need personal examination however it is most suitable method in the field of publication of books readers digest and other popular publishing companies Adobe these methods most effectively outdoor advertising historical historical e it is the oldest form of advertising and remains the most common medium even today is publicity is basically indoor advertising as previous years papers are generally read indoor outdoor advertising project the message to a large number of people of heterogeneous interest as search the products that need avoid a pill use this method outdoor advertisement ameen for the moving population and provide the advantage advantage of reminding the people frequently of the product does it successfully incorporate the advantage of reputation found in good advertisement merits outdoor advertisement is capable of gaining more attention in office grade selectivity it could be used local originally anime nationally flexibility is present it is semi permanent was the board is exhibited it could be kept their for quite a long time it is very good medium to stress brand names and package identity coverage is greater low cost demerits it has to be prepared for detailed explanation is not possible low prestige the exact effect created on prospects is difficult to measure it could be used only as a supplementary form to other kinds of advertising for example it cannot be used for introducing a new product but it is effective for reminding of an existing product Audiovisual methods film advertising advertising could be effectively carried out through the use of motion pictures through it is it is comparatively a new medium it has become one of the most popular once this mail attributed to it's a feeling nature to all class of people merits coverage is quite why Apple is hemanth is a mail to all sections of people it is able to explain and demonstrate the use of product demonstrations make the product more appealing unacceptable it is never wasted has no advertisement can escape the tension it is stated that unless removing movie Goa deliberately talks to his neighbour or walks out of the theatre we cannot escape the advertising message demerits production cost and film of a film is high production cost of film restriction imposed against Sikh Siri screening film example there is censoring a film can only be shown to the people who come to the theatre the selection of people are outside the scope of search advertising for screening films the cooperation of the theatre is inevitable in editable crowding of such a advertisement films which is common noun makes the audience feel bored next next next next radio advertising merits coverage is widely coverage is very wide even illiterate people are covered psychologist are of the opinion that what is learnt through years is not easily forgotten the radio is advertising claims the advantage of memorising value does radio advertising claims the advantage of memorising value flexible it may be used as a national local level according to the need it is easily catches the attention of the people demerits demerits demerits all people do not on the radio set even if they own one large number of people do not care to listen to all programs advertising of the products unknown to the average listener often becomes a waste soaps powder extra are known to them but various industrial products are beyond their purview the more attractive program alone create interest among listeners there is a possibility that a listener me immediately forget product after announcement is over as there is a multiplicity of the advertisement in short time radio edit is radio advertisement are very brief and details cannot be elaborated there is no possibility of demonstration

Benefits of advertising CHAPTER NOTES

Benefits of advertising Benefits of advertising to the advertiser advertising broadens the knowledge of consumer with their of advertising consumers find and buy necessary products without waste of time the speed of the cells of commodities deficiency of labour in distribution increases and the cost of selling diminishes the benefits of advertising maybe narrated as follows increase sales volume on one hand it reduces the cost of production and on other hand it increases profit it helps easy introduction of products into the markets it helps to create an image and reputation not only of the product but also of the advertiser retail price maintenance is possible helps to establish a direct contact between manufacturers and consumers steady demand advertising brings stability in demand it measure as an aid in stabilizing production by encouraging buying when normal buying is slow benefits of advertising to the wholesalers and retailers advantages to wholesalers and retailers are also important it plays an important role in selling the wholesaler as well as the retailers take interest in dealing in advertise products wholesalers develop their own brands and advertise them in the same manner as the original manufacturer benefits of advertisement to wholesalers and retailers are easy sale of product scenes consumers are aware of the product and its quality it increases rate of turnover of stock its its supplements the selling activities the reputation created is shared by wholesalers and retailers I like it enables them to have product information benefits of advertising to consumer advertising stresses quality and very often reduces prices this forms and indirect guarantee to the consumers further more large scale production assured by the advertising enables to sell the product at low cost helps them to know where and when the product is available this reduces their shopping time it provides an opportunity to the customer to compare the merits and demerits of various substitute products this is perhaps the only medium through which consumer could know the various new uses uses of the product model advertisement are highly informative

ADVERTISING CHAPTER NOTES

ADVERTISING elements of elements and objects of advertising advertising is mass communication the ultimate purpose of which is to import information develop attitude and induce action beneficial to advertiser generally the sale of the product or services advertising is mass communication of information intended to persuade the buyers so as to maximize profits Webster says advertising is to give public notice or to announce publicity according to Gardner it is a means of mass selling that has grown up parallel Hindi and has been made necessary by mass production copeland includes in advertising all non-personal methods of stimulating cells and of increasing or retaining patronage in the words of Albert advertising is any form of selling other than personal contacts between the sailors representatives and the prospective customers as defined by starch selling in print for presenting a commodity in print two people in such a way that they may be induced to buy it it is sometimes called printed salesmanship encyclopaedia Britannica defines advertising as an essential form of communication through such a diverse media as handbills newspapers magazine billboards letters radio and television broadcast and motion pictures elements of advertising on the basis of various definitions as given above it may be stated that advertising purchase certain basic elements such as a it is a mass non-personal communication needs reaching large group of buyers it is a matter of record giving information for the benefit of buyers episodes the buyer to purchase the goods advertise the ultimate objective of the advertising is to earn maximum net profit in long run objective of advertising the primary objective of advertising is to increase the sales in modern times it has become the lybrate breadth of modern business economy as people themselves se selling is the name of the game besides increasing the sales order objectives of advertising may be stated below 1 to increase the number of units purchase to produce new products or new version of an old product to increase sales in off season 4 to maintain brand loyalty 52 counter at counter act competition to counteract competition next to build positive business image to obtain dealer support to secure leads for sales people to build primary demand to introduce a price deal to inform about the products availability to build brand recognition or brand insistence to help salesman by building and awareness of product among retailers to create a reputation for service reliability or research strength to increase market share to modify existing product appeals and buying motives to inform about new product availability or features or price to inform about new uses of product to increase the number or quality of retail outlets to reach New areas or new population with an existing areas

PROMMOTION MIX - CHAPTER - NOTES

*******************************************************************************

Promotion MIX

*******************************************************************************
Elements of promotion mix elements are variables of promotion mix are as follows
marketing mix decisions must be made for influencing the trade channel as well as final consumer and organisation preparing to offering mix of products services and prices utilizes a promotion mix consisting of the following elements are variables
*******************************************************************************
A)sales promotion
*******************************************************************************
in the case of services the sales promotion techniques which are VARIED it and VARY in number
*******************************************************************************

a car Mechanic may offer a guarantee for repairs undertaken up to 3 months
a doctor mey charge less amount of free on the subsequent visit to encourage the patients loyalty in services
sales promotion techniques are used to observe their perishability characters example family discount offered by hotels in off season in which two children are under 12 are allowed free of charge and to overcome the problem faced by the customers in evaluating and judging the quality of before making the purchase
sales promotion techniques reduce the risk associated with the purchase

*******************************************************************************
B) advertising
*******************************************************************************
advertising is the art of influencing human action awakening of the desire to purchase product
it is a mass persuasion that is any form of publicity given to product or services at the expense of person who wants such publicity for bringing his products and services to the notice of the general public the real objective of advertising is effective communication between product
producer and consumer in other was the ultimate purpose underlying all advertising is increase awareness

*******************************************************************************
C) direct marketing
*******************************************************************************

Without using mark middleman marketing middleman selling goods to consumer is called direct marketing
telemarketing email catalogues interaction extra now merit direct market as use direct marketing to build a long term relationship with the customer that is relationship marketing
the relationship marketing marketing sales birthday card small gifts information materials extra hotels airlines build strong customer relationships through club programs direct marketing saves time and introduces consumers to enlarge large section of the merchandise build a continuous relationship with each customer it is more interested prospectus which have been the most profitable public relations department of the organisation and distribute the information and communication department of management to add a positive programs
*******************************************************************************

Salesforce

*******************************************************************************
companies paying huge amount on the basis on the business and sales force promotion tools these tools are used together business leads impress and reward customers and motivate the sales force to achieve greater heights through in case if cell contains are declared to induce sales force or dealers to increase their sales results overstated period with prices in the form of money tips gives to those who succeed
*******************************************************************************

FACTORS INFLUENCING PROMOTION MIX - CHAPTETR - NOTES

*******************************************************************************
Factor influence promotion mix *******************************************************************************
*******************************************************************************
size of incentive *******************************************************************************
A. for promotion campaign to be successful the size of promotional incentive is very important it should not be too small or to insignificant example rupees one of on 200 grams Colgate worth 50 rupees will be insignificant and non attractive
*******************************************************************************
B conditions for participation *******************************************************************************
promotional incentives might be offered to everyone or to selected group targeting young people middle age people or female class only
*******************************************************************************
C. Duration of promotion
*******************************************************************************
according to one research optimal frequency should be for 3 weeks in one quarter and optimal duration should be length of average purchase cycle
*******************************************************************************
D. distribution vehicle
*******************************************************************************
the marketer should use a proper distribution vehicle example rs 10 off coupon can be distributed in the package or in stores or by mail or through advertising in newspapers
*******************************************************************************
E. Timing of promotion
*******************************************************************************
marketing manager must established the timing of promotion that is promotional would likely be more effective in certain time when initiated and would this be more successful as compared to other period
*******************************************************************************
F total sales promotion budget
*******************************************************************************
This is the most important factor influencing a promotion mix the cost of particular promotion consists of the administrative cost and the incentive cost multiplied by the expected number of unit to be sold on the deal
*******************************************************************************

POSITIONING - MARKETING - NOTES - CHAPTER-

*******************************************************************************

*******************************************************************************
Positioning is important concept in marketing it plays a crucial role in the success of product or service in the market
*******************************************************************************

in the era of hyper competition and over communication it becomes extremely difficult for the company to differentiate which product from the competition

in almost all the product categories there are 10 to 15 companies which are fine for the consumer attention
Communication media makes the job even more difficult for the marketers to communicate to the consumer
that's why it becomes extremely important for the marketer to create distinct and persuasive image in the minds of customer so that it stands out from the crowd

so positioning is is all about creating the image in the minds of customer and in the minds of the consumer
term positioning is first coined by the Jack trout
positioning is a game people play in the today's me to market place
It is first mentioned in the publication - in industrial marketing
then it was expanded in the first groundbreaking book positioning the battle for your mind written by jack trout and Al ries this book is very essential for any marketing student and professor according to Al rise and jack trout positions start with the product
positioning is this something which happens in the minds of the customer or the target market

It is the aggregate perception the market has about a particular company or product or service in relation to perception of the competitors in the same category and it will happen whether or not company management is proactive reactive or passive about the ongoing process
*******************************************************************************

But company can positively influence the perception through good strategic action that's why perception becomes important as per as positioning is concerned
*******************************************************************************

7 P's of marketing - Notes - Chapter-

*******************************************************************************

7 P's of marketing

*******************************************************************************
In case of goods 4 P's are ruling the market.

*******************************************************************************
But in case of services and knowledge based economy booze and bitterness has suggested beside 4 P's, three P's in addition to that people
process physical evidence totalling into 7 P's of marketing
This additional P's of marketing are required for services marketing
Services marketing is very different from goods marketing
services have got the characteristics of inseparability intangibility heterogeneity and perishability
it becomes very essential to market to address 7 P's of marketing
services range from the airline services to banking services two courier services to hotels
in addition to 4 PS, three P's extra which are people, process and physical evidence
people all people who directly or indirectly influence the perceived value of the product or services including knowledge workers employees management and consumers
*******************************************************************************
process :- in case of process procedure mechanism and flow activities helps the marketer to satisfy the consumer in better way
it is all due to process you get the pizza delivered from dominos within 30 minutes in India
if you talk about McDonald's mcdonald's serve its customer with freshly made burger and french fries within within 2 minutes of the order because
of its streamline of process
*******************************************************************************
now let's talk about the physical evidence through this server physical through the physical evidence service marketing gives the tangible character

*******************************************************************************
by using certificate, tickets, logos,

*******************************************************************************
physical evidence deals with the direct sensory experience of a product or service that allows a customer to measure whether he or she has received value value or not
*******************************************************************************
if you travel first class in aircraft you expect enough legroom to be there to lie down
once you walk into the restaurant you expect a clean and friendly environment all these factors are very very important in the giving right value to the customer that's why we talk about people process and physical evidence

*******************************************************************************
if you are talking about the banking services in India there is ICICI Bank who is providing you the services at ICICI Bank services are the promises are provided by the ICICI bank employees once ICICI banks providing services through its own employees so bank is very keen about to have right kind of employees that that's why people become very very important in that case because those people will serve you ultimately the branch
*******************************************************************************
in services marketing we also talk about heterogeneity heterogeneity it means service delivery will be very very different two different customers and it will be different for different employees also for example we say if you are going to ICICI Bank the same person will not behave in the same way on all the days so what is the way out
*******************************************************************************
for example if the employee has fought fight had a fight with the with his wife what is the problem there and he comes there to the match branch and he supposed to deliver some kind of services to the customer and if he is not happy one she is not happy it also impact his own personal behaviour while providing the services to the customer and that's why customer and banks or any kind of service provider will have process in place.

*******************************************************************************
so that process will say if I want to open a bank account I need to open the bank account within that 15 minutes or 20 minutes
if I want to get the cash payment I should get it in next 10 minutes so that is all about the process
if you go to the McDonald's you will get the same kind of burger mechanism

*******************************************************************************
if you go to the McDonalds because there are good services in place you will get the same kind of burger on all the days all the time
*******************************************************************************
now physical evidence once you go to the restaurant you'll understand we will go to the 5 star hotel 5 star hotel you'll understand by interior and payments are made according to the services

*******************************************************************************
if you go to the three star hotel then also you will understand

*******************************************************************************
that service through the physical evidence what kind of hotel you are give getting into 3 star or 4 star or 5 star
*******************************************************************************

What is MARKETING-

What is marketing marketing as a term widely used in the management of business and in our day to day life that's why marketing is very important if you go back into the history you will find the existence of marketing in the beginning of Civilization it all started with the barter system when the buyers and sellers exchange their goods and services marketing as a topic first appeared in the first half of the 20th century with reference to distribution the process of distribution and the determination of price and the demand of supply demand and supply pave the way for the studies in the marketing that's why economics is the known as mother of marketing marketing is a very very simple term to understand Marketing is the process of understanding and meeting the needs of the customer fulfilling the needs of the customer as a marketer you need to identify the needs of the customer and fulfill the needs of the customer if you are able to identify the needs of the customer in a better way you are a good marketer it is very very simplea company can fulfill your unmet needs as well as maid needs if you are getting into some kind of new product category or if you are great getting into new service category then you are trying to fulfill the unmet needs but there are several product category and there are several services category where the services and products are already existing your you are going to need fulfill the needs already made by the various companies so so many times you will see that many companies will go for identifying the identifying the met needs and only few companies will go for identifying and fulfilling the animate news so that is the difference between the good company and a great company good companies will always fulfill the meat needs and great companies will always go for made needs as well as unmet needs you think about Facebook Apple Twitter Reliance you think about Nela Tata Wikipedia Facebook Twitter these companies are trying to fulfill the maid needs as well as unmet needs that's why this companies are of very very successful in the world in the India so many companies are doing the good job PVR Mahindra Tata all are equally successful by fulfilling the needs of the customer this is simplest way to need to understand Philip kotler definition he says marketing is all marketing is all about CCD vtp CCD vtp creating communicating delivering value target market and profit creating communicating delivering the value to the target market at profit objective of business is making profit Philip kotler is talking in terms of values so what do you mean by value value is all about benefits and cost if you are buying a product or if you are microservice Europe a lot of money once your pay money that becomes your cost wise you pay that amount you expect certain rent returns and benefits values all about cost versus very benefit if you are getting benefit more than cost then you are successful marketer Bose imported definition reported definition American marketing association defines marketing is the activity set of institutions and process for creating communicating delivering and exchanging offering that have value for customer clients partners and Society at large

Difference between need want and demand

*******************************************************************************

Difference between need want and demand

*******************************************************************************

marketing is all about identifying the needs of the customer and fulfilling the needs of the customers

needs are basic human requirements you need you need food clothing shelter food to survive you also need education as well as entertainment Once it is needs a specified by you this become wants
for example if you are hungry you wanted to eat something you wanted to have a burger you wanted to have a corn flakes you wanted to have a masala dosa so that becomes your wants
want is directed by our society and culture in India in the breakfast you will find aloo paratha masala dosa idli while in USA America you will find cornflakes and milks
wants become demand when it is backed by ability to pay
everybody want to buy Mercedes but everybody cannot able to pay for the Mercedes or everybody cannot afford it that's why only those wants which are backed by purchasing power will be calculated as demand
for example everybody would like to have a Mercedes or BMW or it may be just want for a customer from the customer if it is not backed by the ability to pay
If the customer is able to purchase the car then it may be calculated as a demands and
In marketing we are concerned more about demand for a marketer demand is very very important it plays a great role in managerial decision making it
has to forecast the demand while doing the stratgeic marketing and planning that's why it is very very relevant in each and every company
*******************************************************************************

PRODUCT - NOTES

*******************************************************************************
PRODUCT *******************************************************************************
Demand for the product is constantly shifting as needs, wants and technology all have changed as a result companies must always evaluate their existing product line and look for ways to ensure that it is up to date and in line with the consumer desires Continuous decision must be made about whether new product should be added and weather all products should we remove. A product is anything that can be used to satisfy a particular need. the word product is generally associated with the tangible offering but it is more than just a tangible offerings. *******************************************************************************
Product is anything that can be offered to a customer to satisfy a want or need *******************************************************************************
Product as physical goods service experience event, person, places, properties organizations, information and ideas that can be offered to a market for satisfying a particular want or need *******************************************************************************
Philip Kotler Defines product is a bundle of physical service and symbolic particular expected to yield satisfactions or benefits to the buyer Concept of the product is not restricted to physical goods. *******************************************************************************
Example Toothpaste it is an example of physical goods purchase Train ticket is an example of purchase of service Purchase of TICKET of movie is a purchase of experience entertainment experience Purchase of a ticket for a concert is purchasing for an event Purchasing house is a purchase of a place *******************************************************************************
products can be tangible or intangible for example toothpaste is tangible product where is a doctor service is intangible products service Differences between goods and services Goods are tangible objects that can be offered to a customer to satisfy his need or want Service as an act or performance that one party can offer to another that is essentially intangible and does not result in the ownership of anything Its production may or may not be tied to physical product *******************************************************************************
Example when we purchase pen in the legal terms we have the title to the pen on the other hand when we go to the doctor to get treatment for an element neither do we own the doctor not the treatment that he gives us nor his diagnosis of the element for that matter so the purchase of the service does not result in the ownership of anything *******************************************************************************
3. Goods generally first manufactured at the place of the manufacture then distributed through the various distribution channel then sold to the customer and finally consumed in case of services the manufacturing selling and consumption happen simultaneously. Physical goods can be separated from the manufacturer of the goods and also from the customer services cannot be separated from the service provider and the service receiver customer that is services are inseparable *******************************************************************************
Manufacturers of goods differentiate their goods on the basis of services where as manufacturers of the services differentiate their services on the basis of goods Example washing machine will differential their product from that of the computer on the basis of the service like extended warranty extra Whereas the manufacturers of the services like gymnasium or health club in differential their service on the basis of physical goods like latest equipment's *******************************************************************************
5 Goods are generally consistent in nature Services are inconsistent that is if we buy a particular soap today and the same brand and variety of soap a month later there will be no difference in the two goods purchased however if we avail the service of beautician it may vary from one location to another Services are provided by people Services may vary because of change in the beautician Time when the service is availed Change in the place where services availed Change in the mindset of the customer *******************************************************************************
Goods can be stored for inventory by this we mean that goods can be stocked depending upon the demand and supply situation if a retailer of shoes knows that there is a good demand for a particular brand of shoes he will stock them in large quantities so as to meet the demand of the customers if he has stopped 500 pairs of shoes and has been able to sale only hundred days on a particular day the rest of the shoes can be carried forward for sale in the coming days however some does not hold the two same does not hold the two for the services Example of a restaurant that has seating capacity of hundred people if on a particular day there are four hundred people wanting to eat at the restaurant owner cannot create additional capacity the capacity is finite and cannot be inventoried similarly if one particular day he finds that only 50 people have availed the service balance capacity of 50 expires on the same day he cannot carry it forward to another day Difference between goods and services Goods are tangible services are intangible Goods result in ownership of the product services do not result in the ownership of anything Goods are manufactured then stored then distributed then sold and finally consumed in case of services the manufacturing and selling happen simultaneously *******************************************************************************
goods can be separated from the manufacturer and the customer services cannot be separated from the service provider and the service receiver goods can be inventory IT services cannot be inventoried often we find that manufacturers of the goods differentiate there goods on the basis of services, manufacturers of the services differentiate their services on the basis of goods Goods are consistent in nature service are variable and are inconsistent in nature Levels of the product *******************************************************************************
Core benefit :- level basic product level expected product level augmented product level potential product level each of these levels and add more customer value and five levels together constitute a customer value hierarchy *******************************************************************************
Fundamental level is the core benefit level that the customer need that the marketer tries to satisfy example if a customer is going to a restaurant to eat food the core benefit level is that the product food satisfy the hunger of the customer here the benefit that the customer seek is to satisfy his hunger by means of food. Marketers need to look upon themselves as a benefit providers other than product sellers *******************************************************************************
Second basic product level this is a second level where marketer mass now turn the core benefit into basic product Example the food that is the hunger satisfying core product is turned into a basic program is an editable tasty dish *******************************************************************************
Expected product which is a set of attributes and constituent conditions that customers will normally expect example :- Food set should be neat and clean dishes with good cutlery set on a properly led table having a proper sitting arrangement with sufficient lighting arrangement *******************************************************************************
IV Augmentation product level:- trying to meet the customers desires beyond his expectation example Fresh flowers laid on the table, alive band playing music etc. From the marketer point of view this level is very important because in today's world competition happens at this level only upto the expected level all the marketer will stand at the more or less same platform the differentiation will happen at the augmented level and potential product level. Fifth level at this level the marketer has to take into consideration all possible augmentation and transformations that the product is likely to undergo in the future *******************************************************************************
The potential product describes the future possible innovation of the product Example the restaurant providing the guest with the facility to oversee the preparation of the food and having it Customized / made to the requirements of each customer Or having a menu card that would suggest menu combination at click of a button *******************************************************************************

A STUDY OF CUSTOMER SATISFACTION LEVEL AND CUSTOMER PERCEPTION OF OYO HOTELS WITH SPECIAL REFERENCE TO PUNE CITY.

*******************************************************************************

A STUDY OF CUSTOMER SATISFACTION LEVEL AND CUSTOMER PERCEPTION OF OYO HOTELS WITH SPECIAL REFERENCE TO PUNE CITY.

*******************************************************************************
*******************************************************************************

ABSTRACT:

*******************************************************************************
OYO Rooms, an aggregator in online hotel booking service organization is getting popularity and fame across various cities/countries for their technology based and innovative services. In this century almost everyone has smart phones and people are becoming more tech savvy and they are booking hotel rooms online via internet. And hence it is important to know what are the factors affecting or determining the consumer’s changing behaviour. The purpose of the research paper is to understand the factors influencing the consumer’s decision to stay at OYO Rooms. An exploratory research study was conducted by taking 200 individual responses from Pune and analysing them statistically with the help of Chi-square analysis. The contribution of study is that it develops an additional insight to understand consumer behaviour in online hotel booking services. *******************************************************************************

INTRODUCTION:-

*******************************************************************************
OYO is India's largest hospitality company offering standardized rooms in different locations across the india. OYO Rooms, commonly known as OYO, is India's largest hospitality company, consisting mainly of budget hotels. It was founded in 2013 by Ritesh Agarwal and has since grown to over 8,500 hotels in 230 cities in India, Malaysia, UAE, Nepal, China and Indonesia. In 2012, then 18-year-old Ritesh Agarwal, hailing from Odisha's Rayagada district, launched Oravel Stays, a website designed to enable listing and booking of budget accommodation. OYO partners with hotels to give similar guest experience across cities. In late 2017, OYO launched OYO Home, an Airbnb-like marketplace for short-term managed rentals. In September 2018, OYO raised $1 billion. The majority of the funding — $800 million, to be exact — was led by Softbank’s Vision Fund with participation from Light speed, Sequoia and Green oaks Capital. The network of branded hotels currently includes over 8500+ hotels spread across 230 cities with more cities and hotels planned to come up very soon Rooms usually start at Rs 999 but can be lower than this price due to Sale, Coupon Discounts etc. There are no hidden charges. The standard check-in time is 12 PM and the standard check-out time is 11 AM. One can cancel room booking using OYO website or mobile app *******************************************************************************

OBJECTIVES:

*******************************************************************************
-To understand and study the consumer satisfaction level of OYO.
-To understand the business model of OYO Rooms and services provided by OYO Rooms.
-To study the strategies used by OYO for their business expansion in India and other countries
-To understand the problems faced by customers while using OYO and providing solutions for existing problems.
-To suggest the ideas on new segment to target and how to position it better.
*******************************************************************************

REVIEW OF LITERATURE:

*******************************************************************************
OYO Rooms is the largest branded network of hotels currently operating in various countries as the firm organizes the unorganised business operating under the same domain, they make them work as their partners by signing a contract and sell their products under its own brand. The main focus is on quality of services provided. To make the services visible to their user-base, OYO makes their partners provide services at predetermined standard. OYO Rooms is the hotel aggregator and not a marketplace because customers buy the services from the brand OYO Rooms and they are not bothered who the partner is. A. CHANGE IN BUSINESS MODEL: OYO Rooms, a Soft-Bank based startup has changed its business model from aggregation to franchise, or operating hotels under the OYO brand introduced in May,2017. The hotels that were the part og aggregation business model have converted to franchises. To improve serviceability, and to reduce operational costs, this transition was incurred by OYO Rooms. This change was to rationalise the cost of resources deployed at partner hotels. The operational cost was increasing as OYO had to keep one OYO captain at hotels where they had 5 to 15 rooms or so. But after this transition in business model, OYO has improved their serviceability as they are using same number of resources but at fully operated hotels. B. BUSINESS MODEL OF OYO ROOMS:
1. Adopts hotels to get them in fold by booking a part of hotel’s inventory beforehand.
2. It gets them to follow certain standards of servies , features, staff, pricing, security etc. and invests in marketing and management of quality improvement for the hotels under its fold.
3. And these rooms are sold to customers under its own brand name: OYO Rooms through their website and mobile application.
(a)Partnership Model: Provides visitors/guests with quality hotel rooms staying at different places around India and other countries too. OYO Rooms has partnered with hotels and made them work under their name.
(b)Franchise Model: The hotels that were the part of aggregation business model have now become the part of franchise business model, they have converted to franchises operating under OYO’ s brand name to reduce operational cost and improve serviceability.
C.SERVICES PROVIDED BY OYO ROOMS:
OYO believes in changing the way people stay away from home.
1. Hotel Rooms: Standardized, Affordable and Technology driven, fully furnished rooms.
2. OYO Flagship: OYO Rooms has started giving hotels on lease where they have full control over day-to-day operations to expand the business. These leased properties come under OYO Flagship.
3. Long Stays: OYO Rooms provides hotel rooms for family functions such as wedding, parties etc. as well as corporate functions such as seminars, meetings, parties etc. to stay for long.
4. Corporate Stays: OYO also provides fully furnished rooms and flats for long stays like internships, corporate stays, work etc. The rooms can be rented on single occupancy as well as twin sharing basis.
5. OYO Total Holidays: In this holiday package segment, OYO mainly targets couples, families and friends travelling together between 25-45 years.
6. OYO Bazar: OYO Rooms has set up OYO Bazar, which is a one-stop solution for hotels to procure their daily essentials. This is not done only for profitability but to grow and maintain their partnership with hotels, they need to expand their services.
*******************************************************************************

REASEARCH METHODOLOY:

*******************************************************************************
Research methodology is the process of collecting information and data for the purpose of business decision making.
(a)Time and Date of data collection :
(b)Research Design : The research follows an exploratory research approach to analyse the propositions, and satisfaction level of consumers of OYO Rooms and to determine why certain group of consumers prefer other online hotel booking applications over OYO Rooms. (c)Research Instrument : A structured questionnaire was circulated and was administrated by personal and telephonic interview and in some cases questions were mailed to respondants.
The interviews help to elicit further detailed information. During the study, important factors were considered viz., Age, Occupation, Education, Demographic factors etc. (d)No of Respondants : 200 Sampling method : Convenient sampling Sample size : 200 *******************************************************************************

DATA ANALYSIS :

*******************************************************************************
The data analysis has been discussed from responses collected from 200 various age group people who were using OYO Rooms for online hotel booking in Pune city. Data has been analysed and presented in a meaningful way to facilitate the research to find out the customer satisfaction level of OYO Rooms with the help of tables and diagrams.
*******************************************************************************

SWOT ANALYSIS :

*******************************************************************************
(A) STRENGTH :
*******************************************************************************
0  Though OYO Rooms are mostly owned by the various providers but they are standardized under the OYO franchise and thus people experience the same standardized service in all OYO Rooms wherever they may be located.
 OYO started off as a one room one hotel thing in Gurgaon and now it has around 8500 properties in 230+ cities that’s its clear strength.
 It is one of the one stop shop for a budget stay in India. OYO Rooms was conceptualized with a root idea of innovation for making the hotel stays more comfortable and easy.
 OYO focuses on making rooms available in affordable prices for its customers by subsidizing them.
 Excellent use of advertising for high brand recall. *******************************************************************************

(B) WEAKNESS :

*******************************************************************************
 OYO has tried to provide standardized amenities in less prices but they have not been able to do the same with services.
 Customer is more concerned with the privacy hence they hesitate to book a hotel room online.
 OYO seems to have less integration with customer loyalty programs.
 The main drawback of OYO Rooms is that it is restricted only to budget hotels/lodges.
*******************************************************************************

(C) OPPORTUNITIES :

*******************************************************************************
 As most of the population in India is trying to minimize their spending and focus on savings hence they prefer affordable budget travels and stays which leads to business growth of OYO Rooms.
 People are becoming more tech savvy these days which makes OYO a overgreen.
 As the number of people who travel on business tours from both the genders is increasing in the emerging economies which in turn increases the demand for OYO budget stays.
*******************************************************************************

(D) THREATS :

*******************************************************************************
 Every entrepreneur in this business is looking at aggregating services. There are various online portals such as Goibibo, Trivago, makemytrip etc. which offer various gamut services similar to OYO Rooms.
 As the number of cases of harassment are increasing, there is a negative imagery of unsafe stays. Though OYO is not providing guarantee safety in the hotel rooms but ensures that no such incidents happen by giving the moral commitment.
*******************************************************************************
PORTER’S FIVE FORCES MODEL :
*******************************************************************************
Porter’s five forces model tries to analyse the level of competition within the market and business development.
*******************************************************************************
(1) INDUSTRY RIVALRY :
*******************************************************************************
OYO is making remarkable growth in its business but its real challenge is to make this growth steady. Competitive advantage is the area where company lacks hence it may take no time for any other company to enter into the market and make a benchmark.
*******************************************************************************
(2) THREAT OF NEW ENTRANTS :
*******************************************************************************
There are new international competitors entering into the new attractive domestic market such as Goibibo, Trivago, makemytrip etc. As these new entrepreneurial players are emerging in the market customers get attracted towards them due to various discount offers and services provided.
*******************************************************************************
(3) THREAT OF SUBSTITUTE PRODUCTS :
*******************************************************************************
Though in the emerging economy people travelling to various cities/countries for business tours is increasing day by day but there are various technological substitutes available such as Video conferencing, Delphi method etc. Due to these changes in technology which after demand for technology.
*******************************************************************************
(4) BARGAINING POWER OF SUPPLIERS :
*******************************************************************************
As the competitors are increasing this in turn makes the suppliers to increase simultaneously. As OYO doesn’t own any hotels by its own, it depends on hotels behaviour to collaborate with OYO or not which makes supplier to be stronger on his side.
*******************************************************************************
(5) BARGAINING POWER OF BUYER :
*******************************************************************************
As buyers/customers have lot of options available such as Goibibo, Trivago, makemytrip etc. and they are not dependent on OYO. Hence OYO needs to stand out by differentiating itself from others so that the customers prefer OYO Rooms as their first choice.
*******************************************************************************

DATA ANALYSIS:-

*******************************************************************************
Interpretation: - It can be seen from the above graph that 32% respondents were Salaried employee, 25% were self-employed, 25% were professional and 18% were Students.
Interpretation: - Major 61% age group was 21-30 yrs followed by the 0-20 yrs, followed by the 31-40 yrs, followed by the 41-50 yrs.
Interpretation: - It is reported that 77% respondents preferred Oyo hotel booking App followed by the GOIBIBO 14%, followed by the Make my Trip, followed by the Trivigo (4%).
Interpretation: - It is reported that 81% respondents said their purpose behind the stay at hotel was Fully furnished hotel rooms 81%, followed by the OYO total Holidays (9%), followed by the Long Stays (6%), followed by the Corporate stays(4%)
Interpretation: - It is reported that most of the respondents 41% agree that Discount & Offers were major motivational factors followed by the strongly agree 30%, followed by the Neutral 9%, followed by the Disagree 6%, followed by the Strongly Disagree 4%.
Interpretation: - It is reported that 84% respondents were agreed that App was convenient, 7% respondents were Neutral, 9% respondents were Disagree.
Interpretation: - It is reported that 74% respondents were agreed that personal safety and Security were major influencing factor, 17% were disagreed, 9% were Neutral.
Interpretation: - Good Promotion & Branding were major motivational factors reported by the 83% of the respondents and 9% were disagree
Interpretation: - It is reported that 87% respondents were agreed that Stays and Check in and Check out were comfortable while 8% were Disagree.
Interpretation: - It is reported that 77% were agreed that Cancellation of Booking was easy, simple and Fast
Interpretation: -It can be seen that 81% respondents reported that service quality was good.
Interpretation: - It is reported that 87% respondents said officials and staff were good and cooperative.
Interpretation: - It is reported that 89% respondents said that brand image of the OYO hotels was good and it’s a major motivational factor
*******************************************************************************

FINDINGS AND CONCLUSION :

*******************************************************************************
(1)It is found from the research that mostly ‘students’ are using OYO Rooms, an online hotel booking app having age from 21-30 years and below 20 too, whereas people having age more than 40 years don’t seem to be using online hotel booking apps more.
(2)It can be inferred from the study that, when it comes to booking a hotel room online ‘OYO’ is the first preference followed by ‘Goibibo’ and the most important purpose behind stay at OYO is ‘fully furnished hotel rooms’ followed by ‘OYO total holidays’.
(3)Discount offers, affordable prices for stay, convenience of using the app, personal safety and security, quality of hotel rooms, comfortable check ins check outs and stays, easy cancellation of bookings, accessibility and availability of staff to solve problems, brand image of OYO are the most important motivating factors behind choosing OYO Rooms for online hotel booking over its competitors and people are interested in giving recommendations of OYO Rooms.
*******************************************************************************

FUTURE SCOPE:

*******************************************************************************
OYO is growing fast and has set his name as the high quality budget hotel network. It is possible that OYO may increase its prices but due to newly launched model of flagship, there are chances that prices might be kept as they are now.
OYO is a technologically driven model of business. It has its first technology development centre in Gurgaon, now opened in Hyderabad and Telangana as well and planning to build many more.
Also OYO has come up with OYO Total Holidays and is expecting 10% of its total revenue to come from OYO Total Holidays.
OYO Rooms is also piloting OYO Café, an aggregator platform for listing its hotels food items to be sold under the OYO Cafe brand. OYO Cafe will make use of excess hotel inventory and may also make possible use of zomato or swiggy for delivering the food. For cleaning services, it will also pilot housekeeping services on demand.
*******************************************************************************

SUGGESTIONS:

*******************************************************************************
-OYO Rooms should think upon targeting niche market by having tie ups with elite hotels or premium end hotels to target the customer base that wants luxury.
-OYO should do a proper study and record of hotels before partnering with them as many times photos and actual hotel rooms are misleading during online hotel booking.
-OYO should work upon the problems with usage rate and build more customer loyalty.
-OYO Rooms should focus on their PODs(Point of Differentiation) by focusing on customization i.e. customizing the product as per consumer’s needs.
*******************************************************************************

REFERNCES:

*******************************************************************************
• https://www.feedough.com/business-model-oyo-rooms/ - features and costomers
• https://www.business-standard.com/article/companies/oyo-is-clocking-annualised-revenue-of-400-million-ritesh-agarwal-117080201348_1.html-annual revenue
• https://www.oyorooms.com/about - about oyo n of hotels
• https://www.leadersleague.com/en/news/oyo-rooms-ritesh-agarwal-oyo-was-conceptualized-to-solve-a-really-big-problem-in-the-hospitality-sector - interview of CEO
• http://www.ijemr.net/DOC/OnYourOwnAnOyoStory(325-331).pdf
• http://www.jetir.org/papers/JETIR1802111.pdf
*******************************************************************************

Retailing - Notes -

*******************************************************************************

RETAILING:-

  MBA / BBA MARKETING MANAGEMENT QUESTION PAPER 2020 PUNE UNIVERSITY

 *******************************************************************************
Retailing consists of all business activities associated with the sale of goods and services to ultimate consumers.
*******************************************************************************
Retailing involves a retailer—traditionally a store or a service establishment—that deals with consumers who are acquiring goods or services for their own use rather than for resale.
Of course, Shopper’s stop, Ebony, Parnami Jaipur and other familiar organizations offering products for sale to consumers are retailers.
However, the definition of retailing includes some less-than-obvious service marketers, such as hotels, movie theaters, restaurants, and ice-cream trolly operators. And even if an intermediary calls itself a “factory outlet,” a “wholesale club,” or a “shopping channel,” it is a retailer if its purpose is to sell to the ultimate consumer.
*******************************************************************************
Furthermore, Amazon.com and many other new “dot-com” companies that sell on the Internet are retailers. Because these retailers are e-commerce firms, they are often called e-tailers. Retailing : All business activities concerned with the sale of products to the ultimate users of those product.
e-tailers : e-commerce firms with retailing operations on the Internet.
Viewed in the context of the channel of distribution, retailers are the important final link in the process that brings goods or services from producers to consumer. Poor marketing on the part of retailers can negate all the planning and preparation that have gone into other marketing activities.
In the United States, there are more than 15 lac retailing institutions accounting for about Rs. 9600 crore in sales. About 15 percent of U.S. workers are employed in retailing.
*******************************************************************************
Retailing Institutions—
*******************************************************************************
Toward a System of Classifications Retailers are a diverse group of businesses. In the distribution of food there are supermarkets, convenience stores, restaurants, and various specialty outlets. Merchandise retailers may be department stores, apparel stores, consumer electornics stores, home shopping. Service retailers, such as movie theaters and banks, are as diverse as the types of services offered for sale. *******************************************************************************
Retailing is dynamic, and retail institutions evolve constantly. For example, institutions such as “mom and pop” grocery stores are at the end of their life cycle. Individual companies like Sears, which began in the late 1880s as a mail-order retailer of watches and jewelry, are continually transforming themselves into new types of retailers. Warehouse clubs and interactive shopping on the Internet are but two retailing innouvations that have developed in recent decades. In the next 20 years, retailers will inevitably adjust to their changing environments by transforming themselves further. Retailing is dynamic, and retail institutions evolve constantly. *******************************************************************************
In light of this constant change, and of the very large number of retailers in the United States, how can retail institutions be sorted into more easily analyzed groups ? Two commonly used methods classify retailers on the basis of ownership and prominent strategy. *******************************************************************************
Classifying Retailers by Ownership *******************************************************************************
Independent retailer : A retail establishment that is not owned or controlled by any other organization. One popular method of categorizing retailers is by ownership. Most retailers are independent retailers, operating as single-unit entities. Independent operations may be proprietorships, partnership, or corporations, but they are usually owned by one operator, a family, or a small number of individuals. They are not generally integrated into a larger corporation. These retailers are often thought of as small, but some are quite sizable. Taken together, they are the most important part of the Indian retailing scene. *******************************************************************************
An independent retailer that owns the merchandise stocked but leases floor space from another retailer is a leased department retailer. A leased department—for example, a branch bank, a jewelry department, or a watch repairer—operates independently from the lessor retailer (the retailer that rents out the floor space), although it often operates under the lessor’s name. The lessor grants leased department retailers this degree of independence because they have special expertise in handling the particular product line, will increase total store traffic, or are necessary to the lessor because consumer expected to find the department’s merchandise in the store. *******************************************************************************
If a retail establishment is not independent, it is classified as either a chain or an ownership group. The more familiar of these classifications is the chain store— one of a group of shops bearing the same name and having roughly the same merchandise assortment and store image. Chain-store systems consist of two or more stores of a similar type that are centrally owned and operated. Chains have been successful for a number of reasons, but one of the most important is the opportunity they have to take advantage of economies of scale in buying and selling goods. *******************************************************************************
Conducting certralized buying for several stores permits chains to obtain the lower prices associated with large purchases. They can then maintain their prices, thus increasing their margins, or they can cut prices, attracting greater sales volume. Unlike small independents with lesser financial means, chains can also take advantage of promotional tools, such as television advertising, by spreading the expense among many member stores, thus stretching their promotional budget. Other expenses, such as costs for computerized inventory control systems, may also be shared by all stores. According to the U.S. Department of Commerce, the term corporate chain is used for chains with 11 or more stores. Typically, as the number of units in a chain increases, management becomes more centralized, and each store manager has less autonomy in determining the overall marketing strategy. Although corporate chains possess many advantages over independents, some analysts say independents and smaller chains are more flexible. They may be better able to apply such marketing techniques as segmentation than are bigger operations, whose appeal must be more general. *******************************************************************************
Retail franchise operations are a special type of chain. Although the broad marketing strategy in such chains is centrally planned, the retail outlets are independently owned and operated. Franchises provide an excellent example of the evolution of retail institutions to fit the American culture. As the country’s mobile citizenry moves from place to place, a familiar retail outlet is “waiting” for them when they arrive. Each new franchise benefits from the company’s experience, reputation, and shared resources. *******************************************************************************
Chain store : One of a group of two or more stores of a similar type, centrally owned and operated. Corporate chain : A chain consisting of 11 or more stores. *******************************************************************************
Ownership group : An organization made up of stores or small chains, each with a separate name, identity, and image but all operating under the control of a central owner. The other type of retailing organization is the ownership group—an organization made up of various stores or small chains, each having a separate name, identity, and image but all operating under the ultimate control of a central owner. Typically, the members of such groups are former corporate chains bought out by much larger ownership groups. *******************************************************************************
Classifying Retailers by Prominent Strategy *******************************************************************************
Retailers can also be classified based on their most prominent retail strategies. The decision as to whether to market products and services with an in-store retailing strategy (also called a bricks-and-mortar strategy) or a direct marketing (nonstore) retailing strategy is such an important discriminating factor that these two major groupings will be discussed separately. Figure 11.1 shows these groupings and their subcategories. In-Store Retailing Many fundamental strategies differentiate in-store retailers. The variety of products they sell, store size, price level relative to competitors, degree of self-service, location, and other variables can be used to categorize retailers. Each strategy has its particular advantage and disadvantages, and each fits particular markets and situations. Try to envision the following store classes as responses to pariticular marketing opportunities Specialty store : A retail establisment that sells a single product or a few related lines. *******************************************************************************
Specialty Stores Specialty stores, also called single-line retailers or limited-line retailers, are differentiated from other retailers by their degree of specialization—that is, the narrowness of their product mixes and the depth of their product lines. These traditional retailers specialize within a particular product category, selling only items targeted to narrow market segments or items requiring a particular selling expertise, such as children’s shoes, contact lens, swimming costumes, or wall clocks. Service establishments, such as restaurants and banks, are often classified as specialty retailers. These retailers do not try to be all things to all people. In fact one can never be all things to all peoples. *******************************************************************************
General stores dominated Indian retailing and they are likely to dominate because, except in large cities, too few people could be found to justify specialty retailers. The remarkable success enjoyed by specialty stores in recent years, however, illustrates the importance of effective market segmentation and target marketing. The major reason for their success is the development of considerable expertise in their particular product lines. *******************************************************************************
Department store : A departmentalized retail outlet, often large, offering a wide variety of products and generally providing a full rang of customer services. *******************************************************************************
Department Stores Department stores are typically large compared with specialty stores. They carry a wide selection of products, including clothing, furniture, home appliances, housewares, and—depending on the size of the operation—good many other products as well. These stores are “departmentalized” both physically and organizationally. Each department is operated largely as a separate entity headed by a buyer, who has considerable independence and authority in buying and selling products and who is responsible for the department’s profits. Independent department stores do exist, but most department stores are members of chains or ownership groups. Most department stores are characterized by a full range of services, including credit plans, delivery, generous return policies, restaurants, and a host of other extras such as fashion clinics, closed-door sales for established customers only and even etiquette classes for customers’ children. *******************************************************************************
Department store Generally chain operations, wide variety, full range of services Supermarket Wide variety of food and nonfood products, large departmentalized operation featuring self-service aisles and centralized checkouts Convenience store Little variety, shallow selection, fast service General mass Wide variety, shallow selection of highmerchandiser turnover products, low prices, few customer Services Catalog showroom General mass merchandiser that uses a catalog to promote items Warehouse club General mass merchandiser that requires memberships if customers wish to shop; store goods warehouse-style Specialty mass Less variety but greater depth than general merchandiser mass merchandiser, low prices, few customer services Off-price retailer Specialty mass merchandiser that sells a limited line of nationally known brand names Category superstore Specialty mass merchandiser that offers deep discounts and extensive assortment and depth in a specific product category Supermarkets and Convenience Stores The supermarket of today differs greatly from the “grocery store” from which it evolved. The grocery operator of the early part of last century knew most customers, personally filled customers’ orders and was likely to offer both delivery service and credit. With the advent of the telephone, the grocer accepted phone orders and dispatched a delivery boy to the customer’s home. Supermarket : Any large, self-service, departmentalized retail establishment, but especially one that sells primarily food items. *******************************************************************************
Today’s supermarket is a large departmentalized retail establishment selling a variety of products, mostly food items but also health and beauty aids, housewares, magazines, and much more. *******************************************************************************
The dominant features of a supermarket marketing strategy are large in-store inventories on self-service aisles and centralized checkout lines. Often, supermarkets stress the low prices resulting from self-service. The inclusion of nonfood items on supermarket shelves was once novel, in that it represented the stocking of items that did not traditionally belong in the supermarket’s group of offerings. The name given to this practice is scrambled merchandising Scrambled merchandising permits supermarkets (as well as other types of retailing institutions) to sell items that carry a higher margin than most food items; thus it provides a means to increase profitability. Across the board, however, supermarket profit margins are slim—only 1 to 2 percent of total sales. Supermarkets rely on high levels of inventory turnover to attain their return on investment goals. *******************************************************************************
Scrambled merchandising : The offering by retail establishment of products not traditionally associated with that establishment. *******************************************************************************
Supermarkets were among the first retailers to stress discount strategies. Using such strategies, large self-service retail establishments sell a variety of highturnover products at low prices. A good part of a retailer’s ability to hold process down stems from the practice of offering few services. Other than the costs of the goods they sell, most retailers find that personnel costs are their largest financial outlay. Thus, by eliminating most of the sales help, having no delivery staff, and hiring stock clerks and cash-register operators rather than true salespeople, discounters are able to take a big step toward reducing their prices. Buying in large volume also reduces the cost of goods sold. Convenience store : A small grocery store stressing convenient location and quick service and typically charging higher prices than other retailers selling similar products. *******************************************************************************
Convenience stores are, in essence, small supermarkets. They have rapidly developed as a major threat to their larger cousins. 7-Elevens, Quick-Trips, and other imitative convenience store have sprung up and multiplied across the United States. These stores carry a carefully selected variety of high-turnover consumer products. As their names generally imply, the major benefit these stores provide to consumers is convenience— convenience of location and convenience of time. By choosing handy locations and staying open 15, 18, or 24 hours a day, 7 days a week, convenience stores offer extra time and place utility. Consumers must pay for these conveniences and seem quite willing to do so. Managers of these stores price most of their “convenience goods” at levels higher than supermarketers, to provide high profit margins. Convenience stores are unusual among retailers because they have both a high margin and a high inventory turnover. *******************************************************************************
Mass merchandise retailer : A retailer that sells products at discount prices to achieve high sales volume; also called a mass merchandise discount store. There are two basic types of mass merchandise retailers: general mass merchandesers and specialty mass merchandisers. *******************************************************************************
Mass Merchandisers Mass merchandise retailers, sometimes called mass merchandise discount stores or superstores, sell at discount prices to achieve high sales volume. Mass merchandisers cut back on their stores’ interior design and on customer service in their efforts to reduce costs and maintain low prices. Supermarkets were the forerunners of mass merchandisers. In fact, the term supermarket retailing has been used to describe Target, Wal-Mart, and many other stores that have adopted the supermarket strategy, incorporating large inventories, self-service, centralized checkouts, and discount. Using supermarket-style discount strategies helps mass merchandisers to offer prices lower than those at traditional stores. *******************************************************************************
Mass merchandisers can be classified as general or specialty. General mass merchandisers, such as Wal-Mart, carry a wide variety of merchandise that cuts across product categories. They may sell everything from drug and cosmetic items to electrical appliances to clothing, toys, and novelty items. The wide variety of goods general mass merchandisers offer at low prices means that they usually cannot afford to carry a deep selection of goods in any product line. Retailers usually carry either a wide variety or a deep selection, but not both. The expense associated with having many kinds of goods and many choices of each kind makes the two possibilities largely mutually exclusive. (Indeed, small retailers can often compete with giant mass merchandisers on the basis of selection. *******************************************************************************
In contrast with general mass merchandisers, specialty mass merchandisers carry a product selection that is limited to one or a few product categories. For example, some specialty mass merchandisers sell only clothing. We will discuss two types of gerneral mass merchandisers, catalog showrooms and warehouse clubs, and two types of specialty mass merchandisers, category superstores and off-price retailers. *******************************************************************************
Catalog showroom : A gerneral mass merchandise outlet where customers select goods from a catalog and store employees retrieve the selected items from storage. Catalog showrooms, like Service Merchandise, publish large catalogs identifying products for sale in the store. Typically, these are high-margin items. The catalog—or an accompanying price list—shows the “normal” retail price of the item and the catalog discounter’s much lower price. Often, the discounter’s price is printed without a dollar sign in the form of an easily decipherable “code” to let the buyer know that a special deal—not available to just anyone—is being offered. Catalog discounters, like other discounters, do not offer customer conveniences or salesperson assistance. Service is slowed by the need to wait for purchased products to be delivered from a storage place. However, this successful formula permits lower prices. Door-to-Door Selling Cutlery, vacuum cleaners, magazines, and cosmetics are among the many products successfully sold door-to-door. This kind of retailing is an expensive method of distribution. Labor costs, mostly in the form of commissions, are quite high. Yet many consumers enjoy the personal in-home service provided by established companies like Cutco, Fuller Brush, and Avon. In general, products sold door-to-door are of the type that particularly benefit from demonstration and a personal sales approach. Vacuums and carving knives are among the many products that lend themselves to such demonstrations. In-home retailing is often performed by organizations with outstanding reputations. Unfortunately for the many legitimate companies practicing this form of retailing, the image of the door-to-door approach has been tarnished by some unethical salespeople. A number of laws make door-to-door selling difficult. For example, Green River ordinances, in effect in many local areas, put constraints on the activities of door-todoor salespeople by limiting the hours or neighborhoods in which they may call or by requiring stringently controlled licenses. It is interecting to observe that while door-to-door retailing is decreasing in importance in the United States, it is growing in some less-develop countries. Avon, for example, has a major door-to-door organization in China, and Tupperware parties are popular in many countries. Vending Machines The coin-operated vending machine is an old retailing tool that has become increasingly sophisticated in recent years. For the most part, items dispensed through vending machines are relatively low-priced convenience goods. There is a vending machine for about every 40 people in the United States. Vending machines can be found almost everywhere—and this is a big part of their appeal to the marketers that use them. Cigarettes, gum, and other items can be sold in hotels, college dormitories, and church basements without an investment in a store or in personnel. Items sold through vending machines are generally small, easily preserved, high-turnover goods such as candy and soft drinks. Technological improvements in vending machines have allowed machines to dispense airline tickets, travelers insurance, customized greeting cards, and breathalyzer tests. e-tailing on the Internet The newest development in nonstore retailing is e-tailing, or computer-interactive retailing on the Internet. Consumers can shop from their homes or offices by using personal computers to interact with retailers via the Internet. For example, Egghead.com sells consumer eletronics products and computer software. Preview Travel.com allow owners of personal computers to book airline flight and hotel reservations on-line. E*Trade makes it possible for investors to buy and sell stocks via the Net. The number of Internet Web sites, or “store fronts,” where products can be ordered has been growing very rapidly. And the operations of e-tailers are expected to continue expanding dramatically. Two years ago, Amazon.com was only an Internet bookstore, but today shoppers can find thousands of items ranging from toys to sporting goods to consumer electronics products at the Amazon.com site. Its slogan, “Earth’s Biggest Selection,” communicates the message that no physical store could possibly offer the variety and depth of merchandise available at Amazon.com. An Internet retailing strategy is not limited by the geographical store. An e-tailer can market to customers every where. An e-tailer must maintain a web site, which requires high-speed computers and sophisticated software, but it does not have to maintain physical stores or employ sales clerks and other store personnel. In some cases, etailers do not even hold any inventory. Hence, marketing costs can be relatively low. Savings from operations may be passed on to customers. *******************************************************************************
Interactivity is a fundamental and vital aspect of an Internet retail strategy. Shoppers visiting an internet store use hyperlinks to narrow their search efforts or to get additional details about a product. When consumers provide information about their unique needs, marketers can address their specific requirements on a one-to-one basis. For example, customers who return to a Web site can be greeted by name and offered product recommendations based on their past purchases and their specific tastes. In addition to interactivity, e-tailing offers many other advantages for consumers. Internet shopping at home is convenient. No travel is required, and consumers have access to etailers 24 hours a day, 7 days a week (24/7). Prices are often lower than prices at bricks-and-mortar stores. Priceline.com, Buy.com, and numerous other e-tailers offer rockbottom prices—some even let you name you own price. The Internet allows many retailers to offer broader and deeper product lines than they could in bricks-and-mortar stores or through printed catalogs. Shelf space does not limit the number of items in a product line. For example, Amazon.com offers an assortment of 3,500 video games, three times the selection of a typical electronics store. Because going from one Web site to another is a simple task, comparison shopping can be done relatively easily. Automated Shopping Tasks Performed by Shopbots *******************************************************************************
Shopbot : A smart agent software program that performs shopping tasks for online shoppers. Several companies provide automated shopping programs known as “shopbots” to make shopping easier for their customer. Shopbots are smart agent software programs designed to perform shopping tasks, as summarized in Exhibit 13.2. Search, Alert, Compare, and Negotiate. For example, Saleseeker.com and Bottomdollar.com provide lists of items and prices available at various Web site stores. MySimon.com locates goods and services based not only on price but also on certain policies (e.g., merchandise return and technical support policies), shipping time, and overall quality of the marketers. Respond.com connects buyers and sellers via email. Mercata.com uses a shopbot to aggregate buyers and use the power of volume purchasing to drive down prices. The more people who want to buy the same item, the lower the price. *******************************************************************************
Shopping on the Internet is not without its disadvantage. The most obvious disadvantage is that a shopper cannot touch, pick up, or carefully examine a product. Although Furniture.com and other companies make furniture available online, consumers cannot sit on a couch without visiting a bricks-and-mortar store. Another disadvantage is that consumers who purchase goods online must wait for delivery. (However, there are exceptions. For example, software and digital music can be purchased and downloaded from the Internet extremely quickly). Finally, a major disadvantage of Internet shopping for many consumers is potential problems with privacy. Many are reluctant to provide credit card numbers online, even though credit card fraud on the Internet is no more likely than credit card fraud in other retail situations.