STRATEGIC MANAGEMENT

TABLE OF CONTENTS
TOPICS
Dedication
Acknowledgement
Executive Summary
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PAGE NO.
i
ii
iii

Table Of Content

iv

CHAPTER 1
Introduction to Leadership Styles
1.1

INTRODUCTION

1.2

DEFINITION

1.3

QUALITIES/ CHARACTERISTICS OF LEADERS

1.4

FACTORS OF LEADERSHIP

1.4.1

LEADER

1.4.2

FOLLOWERS

1.4.3

COMMUNICATION

1.4.4

SITUATION

1.5

LEADERSHIP STYLES

1.5.1

AUTOCRATIC LEADERSHIP

1.5.2

BUREAUCRATIC LEADERSHIP

1.5.3

DEMOCRATIC LEADERSHIP

1.5.4

LAISSEZ-FAIRE LEADERSHIP

1.5.5

CHARISMATIC LEADERSHIP

10

1.5.6

TRANSFORMATIONAL LEADERSHIP

11

1.6

THEORIES ON LEADERSHIP

13

1.6.1

"GREAT MAN" THEORIES

13

1.6.2

CONTINGENCY THEORIES

13

1.6.3

RELATIONSHIP THEORIES

13

1.6.4

TRAIT THEORIES

14

1.6.5

BEHAVIORAL THEORIES

14

1.7

AUTHORITARIAN LEADER (HIGH TASK, LOW RELATIONSHIP)

14

1.8

TEAM LEADER (HIGH TASK, HIGH RELATIONSHIP)

15

1.9

COUNTRY CLUB LEADER (LOW TASK, HIGH RELATIONSHIP)

15

CHAPTER NO. 2
CASE STUDY OF SOURAV CHANDIDAS GANGULY
2.1

INTRODUCTION
6

16

2.2.2

NO PERSONAL INSECURITY

17

2.2.1

INDIFFERENCE TO CRITICISM

17

2.2

LEADERSHIP TRAITS OF SOURAV GANGULY

17

Chapter no. 3
SWOT Analysis of SOURAV CHANDIDAS GANGULY
3.1 Strengths

19

3.2 Weaknesses

19

3.3 Opportunities

20

3.4 Threats

20

CONCLUSION

21

RECOMMENDATIONS

22

BIBLIOGRAPHY

23

CHAPTER No. 1
INTRODUCTION
T0
DIRECT MARKETING

1.1 DIRECT MARKETING

Target marketing direct marketing is about making direct contact with existing and
potential customers to promote your products or services. Unlike media advertising, it
enables you to target particular people with a personalized message. Direct marketing can
be cost effective and extremely powerful at generating sales, so it is ideal for small
businesses. Direct marketing uses a variety of different methods. Direct mail, mailshots
and leafleting are widespread, and other forms of direct and integrated communication are
growing in popularity. Telephone marketing, mobile marketing, email and texting offer
more opportunities to reach your target market.
Direct marketing is a channel-agnostic form of advertising which allows businesses and
nonprofit organizations to communicate straight to the customer, with advertising
techniques that can include cell phone text messaging, email, interactive consumer
websites, online display ads, database marketing, fliers, catalog distribution, promotional
letters, targeted television commercials, response-generating newspaper/magazine
advertisements, and outdoor advertising. Amongst its practitioners, it is also referred to as
Direct Response. Direct marketing messages emphasize a focus on the customer, data,
and accountability. Hence, besides the actual communication, creation of actionable
segments, pre- and post-campaign analytics, and measurement of results, are integral to
any good Direct Marketing campaign. Characteristics that distinguish direct marketing
are:
A database of names (prospects, customers, businesses, etc.), often with certain other
relevant information such as contact number/address, demographic information, purchase
habits/history, company history, etc., is used to develop a list of targeted entities with
some existing common interests, traits or characteristics. Generating such a database is
often considered part of the Direct Marketing campaign.
Marketing messages are addressed directly to this list of customer and/or prospects.
Direct marketing relies on being able to address the members of a target market.
Addressability comes in a variety of forms including email addresses, phone numbers,
Web browser cookies, fax numbers and postal addresses.
Direct marketing seeks to drive a specific "call to action." For example, an advertisement
may ask the prospect to call a free phone number, mail in a response or order, or click on
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a link to a website. Direct marketing emphasizes track able, measurable responses, results
and costs from prospects and/or customersregardless of medium.
Direct marketing is practiced by businesses of all sizesfrom the smallest start-up to the
leaders on the Fortune 500. A well-executed direct advertising campaign can prove a
positive return on investment by showing how many potential customers responded to a
clear call-to-action. General advertising eschews calls-for-action in favor of messages that
try to build prospects emotional awareness or engagement with a brand. Even welldesigned general advertisements rarely can prove their impact on the organizations
bottom line. The demonstrable result of Direct Marketing is the reason for its increasing
popularity.
http://en.wikipedia.org/wiki/Direct_marketing

1.2 IMPORTANCE OF DIRECT MARKETING

Direct marketing allows you to generate a response from targeted customers. As a result,
small businesses can focus their limited marketing resources where they are most likely to
get results. A direct marketing campaign with a clear call to action can help you boost
your sales to existing customers, increase customer loyalty, recapture old customers and
generate new business. Direct marketing can be evaluated and measured precisely. You
can analyses results to see which target group was most responsive. You can also test your
marketing with sample groups before you roll out the campaign that will deliver the best
response rate.
Whether you are targeting business (b2b) customers to consumers, direct marketing can
deliver results. Choosing the right communication method is vital. Businesses can be
more receptive to receiving sales calls than consumers, for example. Individuals will
prefer different ways of contact, so make sure you take account of their preferences.

1.3 GETTING THE MOST OUT OF YOUR DIRECT MARKETING

CAMPAIGN
Your database is at the heart of any good direct marketing strategy. It must be up to date
and accurate. Check your mailing lists regularly - remove duplicate entries, correct any
mistakes and, above all, delete names of people and businesses who have asked to be
removed. The information you hold on your database is marketing gold dust. It can tell
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you about your customers' buying habits and reveal other useful information such as age,
gender and location. You can use this data to divide your customers and prospects into
smaller groups and target them with special messages. You can build a profile of your
best customers and actively seek new contacts matching that description by buying or
renting new lists. Direct marketing works because it puts your message in front of people.
However, unsolicited letters, phone calls, faxes, emails and texts must only be sent to
people and businesses that have given permission to be contacted. The Data Protection
Act is complex and privacy laws are becoming tighter. It is your responsibility to check
that your direct marketing activities are within the law.

1.4 MEASURING THE RESULTS OF DIRECT MARKETING

Whereas it can be difficult to measure the effects of advertising or sponsorship, in
contrast, direct marketing is totally accountable. With any direct marketing campaign, you
can calculate a break-even point - the number of sales you need to make to cover the cost
of the marketing. In addition, you can work out the cost per response and the actual return
on investment. This simple analysis will enable you to tweak your campaigns in order to
improve your results. You can also identify those that are most responsive and target them
again in future.
http://www.marketingdonut.co.uk/marketing/direct-marketing

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http://pixshark.com/direct-marketing.htm

1.5 DIRECT MARKETING FUNDAMENTALS

Direct marketing occurs when the producer connects with the end user. The end user
may be a consumer or a business. Direct marketing applies to product and serviceoriented businesses, and to nonprofit organizations. In all situations, there is no
intermediary involved. Direct marketing describes this interactive communication with
the end user. Direct marketing is not synonymous with mass marketing. The most
effective direct marketing takes place when there is a clear connection to reach the target
market. Organizations may use several ways to leverage direct marketing as they
communicate with and deliver products to their customers. This may include using a
direct sales force, catalogs, websites, email, direct mail, telemarketing, seminars, trade
shows, and other one-to-one techniques to communicate and sell to their customers and
clients.
Some of these direct marketing methods have grown dramatically, especially with the
growth of marketing over the Internet. There is evidence that other direct marketing
approaches have diminished, such as reports that the response to direct mail is often
below one percent compared to the five percent+ response rate numbers more commonly
experienced in the past.

1.6 THE MOST COMMON FORMS OF DIRECT MARKETING ARE:

1. Internet marketing
2. Face-to-face selling
3. Direct mail
4. Catalogs
5. Telemarketing
6. Direct-response advertising
7. Kiosk marketing
8. Lets look at these in more detail.

Leadership Styles

1.6.1 INTERNET MARKETING

The Internet has revolutionized direct marketing for promoting the sale of products and
services to targeted audiences. Access to the Internet provides users with services in four
basic areas:

Information

Entertainment

Shopping

Individual and group communication

Online channels can eliminate geographic considerations. With this capability people
around the world have the same access as the person across the street. Many businesses
that can sell their products and services through downloading, or who can economically
ship those products, have discovered an entirely new way to market. The Internet makes
direct marketing easier, more targeted, more flexible, more responsive, more affordable,
and potentially more profitable than ever. Virtually every business should seriously
consider the Internet as a part of their marketing mix and determine if it is a viable fit for
their direct marketing efforts.

1.6.2 FACE-TO-FACE SELLING

The most traditional direct marketing involves the in-house sales force personally
contacting potential and established consumers. Examples of organizations that use faceto-face selling include:
1. Mary Kay
2. Avon
3. Amway

1.6.3 DIRECT MAIL

Direct mail is described as sending information about a special offer, product or sale
announcement, service reminder, or some other type of communication to a person at a
particular street or electronic address. Historically direct mail has existed in the form of
printed materials, but CDs, audio tapes, video tapes, fax mail, email, and voice mail are
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also used in direct mail campaigns. For example, America Online experienced a highly
successful campaign through mailing out CD-ROMs to prospective customers. Direct
mail permits high target-market selectivity; it can be personalized, it is flexible, and it
allows early testing and response measurement to take place. A highly selective and
accurate mailing list often determines the success of direct mail efforts to enhance
response rates and control costs.

1.6.4 CATALOGS
Product catalogs are another version of direct mail where the catalogs are the
communication tool. The most common use of this approach involves featuring a variety
of products that target the needs of a specific audience who have shown a propensity to
order from catalogs. An increasing number of business-to-business marketers are sending
catalogs on CD-ROM to prospects and customers. The average U.S. household receives
more than 50 catalogs each year, ranging from general merchandise to specialty goods.
Examples of general merchandise catalogs are:
1. Spiegel
2. J.C. Penny
Examples of specialty goods catalogs are:
1. Pottery Barn
2. PC Connection
3. Telemarketing
The process of contacting people on a qualified list to sell services over the phone has
grown in popularity to the point that the average household receives 19 telemarketing
calls each year. Successful telemarketing campaigns depend on a good calling list, an
effective script and contact structure, and well-trained people that are compensated and
rewarded for making calls that result in sales. The telecommunications industry, for
example, has used telemarketing extensively to attempt to increase their market share.
This includes:
1. AT&T
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2. MCI WorldCom
3. Sprint
4. Direct-Response Advertising
Direct-response advertising is communicating with potential buyers through television,
radio, magazines, and newspapers. The prospective consumer watches, hears, or reads
about the product or service and initiates a call to a toll-free number to place their order.
Television, for example, offers a wide range of exposure, from a 30-second commercial to
a 60-minute infomercial.

1.6.5 KIOSK MARKETING

Customer order machines, versus vending machines that actually provide products, are
another form of direct marketing. Examples are:
Eddie Bauer: Stores place computer terminals to order from the entire line of products not
available in the retail store.
Florsheim Shoe Company
Your banks automatic teller machines (ATMs) placed in convenient and high traffic areas
are another example of kiosk marketing. A combination of these direct marketing
techniques may offer the optimal revenue generating solution.
http://www.mplans.com/articles/direct-marketing-fundamentals/

Leadership Styles

http://www.referenceforbusiness.com/encyclopedia/Dev-Eco/Direct-Marketing.html

1.7 STRATEGIES ADOPTED BY PUBLIC AND PRIVATE SECTOR

BANKS
In financial services, people are primarily bothered about security of their funds and
default risks. After the year1969, the deposits of banks increased more than 80times as a
result of the nationalization of banks. Paul Cox, (2007) revealed a fact that financial
service providers are not perceived highly trusted, so that they might have difficulty in
selling risk-based products. The effort to promote banking business is quite distinguished
affair. At present, it has become very tricky due to the changing trends of industry,
increasing competition and efficiency of regulatory environment, and the financial
system. The complexity in the banking services is also an issue of vital importance. This
is the time when banks are offering new and innovative services, frequently in the market.
The content of promotional tools should help the customer in making most valuable
decision. This can be firmly said that well-designed promotional strategies are very
important to promote banking services effectively. In marketing any product or service,
customer satisfaction has been given the prime importance. The most frustrating aspect of
bank marketing are lack of management support, lack of inter-departmental cooperation,
crisis management, government intrusion and advertising & media problems(Berry &
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Lind green, 1980). Sarin & Anil (2007) recommended that manpower in service
organizations must work with the focus of satisfying the customer. Banking should bring
out the areas requiring improvement and which further throw light on the measures to
improve the quality of services. Promotional packages are very important for financial
service industry (Ananda & Murugaiah, 2003). Thus the orientation of banks should be
with a much wider focus in relation to consumer and market needs, and the consequent
marketing strategies. The challenges put forth by the changing environment have to be
effectively tackled to identify the consumer needs and providing valuable services
through product innovation (Nair Raman, 2006). In banking the temporal and spatial
dimensions are perceived as more important than traditional dimensions based on
outcome and process elements (Kristina Heinonen, 2006). Tokunbo Simbowale (2005)
examined the usage of marketing concepts & techniques and recommended that a wellstructured marketing department in banks is essential for profitability & effectiveness. A
study by Krishna, Suryanarayana & Srikant (2005) recommended that promotional
strategies should be designed as per the nature of the services to be promoted. The
advertisers should seek a narrative approach to communicate the service experience rather
than a logical, argumentative approach. Narrative approach involves storyt elling
methodology using sequence of events (Sehgal Roli,2004). Location convenience, speed
of service, competence and friendliness of bank personnel are also the most important
points with maximum value in banking services (Laroche, & Manning, 1986).
Meidan(1976) revealed that about 90% of the respondents banked at the branch nearest to
their home place and place of work. Convenience, in terms of location, was also found to
be the single most important factor for selecting a branch. It has been generalized in the
studies that services marketing advertisement is more challenging than the advertising of
tangible products (Ray and Bose, 2006). Winning new customers costs10 times more than
simply holding onto existing ones. The case should be taken in the marketing of financial
services very seriously (Farrokhtakin, Stavash, 2000).While formulating marketing
strategy, a bank should focus attention on (i) consumer sovereignty, (ii) attitude,(iii)
responsiveness and personal skills of bank staff,(iv) revitalizing the marketing
department, (v) top management support to the marketing department, (vi)participation of
marketing personnel in key bank decisions (Kumar Ashok, 1991). With the same
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perspective, the prime objectives of the study are:(i)To know about the various
promotional tools of Private and Public sectors banks in India(ii)To make a comparative
analysis of customers perception for promotional strategies of private and public sector
banks in India(iii)To find out the key promotional tools for banking services on the basis
of customers responses

1.8 DATA ANALYSIS AND INTERPRETATION

The responses have been captured in a scale of 5 to1 from strongly agreed to strongly
disagree. Similarly in other questions 5 is for very effective and 1 is for not at all
Effective. Table 1 show that the promotional strategies of private and public sector banks
are almost similar. Both types of banks take the help of almost all type of media to
promote their services. The first objective of the study deals with the analysis of the
promotional strategies adopted by both. The analysis is done on the basis of review of
existing literature and with personal contact and informal interview with the personnel of
the private and public sector banks. The major difference in the promotional strategies
adopted by banks is in the two techniques of the promotion and they are Personal
Selling and Direct Marketing. The difference is that public sector banks do not adopt
the strategies of promotion as personal selling and direct marketing; on the other hand the
same are adopted by private sector banks. The reasons for this are higher liability and less
profit orientation of public sector banks. Public sector banks do not go for innovative
strategies of promotion, however they go for interactive marketing through internet but
that is not promoted so much like private sector banks. This has been demonstrated in
Table 2 that the respondents in the present study are mixed and are seem representative,
they include farmers (19%), shopkeepers, students(31%), highly (23%) as well as low
educated (25%)persons. Table 3 states that the maximum respondents(48.33%) were
availing the services of Saving Accounts, which is followed by current account service
holders(28.33), only few are availing the service of fixed deposits(11%) and Loans (7%).
The loan takers also include the students in the form of education loans. Most of the
respondents answered that they were influenced by Friends and Relatives (42%) for
choosing the services from a particular bank. This is the power of word of mouth. This
shows that the impact of opinion leadership and reference group is very much in banking
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services however advertising (21%) also affects the decision of selecting a particular bank
(Table4). As per the responses given in Table 5, the difference between public and private
sector banks is known to the maximum number of people (85%). Table 6 gives a clear
idea about the question related to the perception of customers about private and public
sector banks the results are not so surprising. People think that the advertisements and
promotional efforts of private sector banks are more effective than public sector banks
with a weighted mean score 3.51 for 5. The respondents strongly agreed that Private
Sector Banks do more advertisement than Public Sector Banks (3.81). Further, one more
aspect, that is very important in the case of services and especially in financial services
i.e. truthfulness, and completeness in advertising. The respondents look agree with the
statement that the information provided by Public Sector Banks is more reliable than
private sector banks because that is truer and complete (3.62).This has been narrated in
Table 7 that private sector banks are slightly better in catching the awareness of people
than Public Sector Banks in mass media advertising. 69% respondents accepted that they
have exposure of advertising on television and 61% of advertising in newspapers in case
of private sector banks. However in the case of public sector banks it is 66% and 52%
respectively. Table 8 gives descriptive idea about the exposure of various promotions. In
outdoor advertising and online marketing, private sectors banks are again more successful
to spread awareness than public sector banks, but the total awareness level has stayed low.
In public sector banks21% of the respondents were accepted that they have an exposure
of outdoor advertising while the respondents for it in case of private sector banks
were28%. As online marketing is not so much adopted by public sector banks only 7%
customers have the exposure of the same, while for private sectors banks the exposure of
respondents is 17%. Tele calling and personal selling did not show high exposure.
Almost26% people are exposed to tele calling. Another important aspect has been
discussed in Table 9. When customers were asked about the most effective tool for
promotion of banking services, very meaningful results have come. The most effective
tools in respondents opinion is advertising on television with weighted mean value 3.84
and advertising in newspapers was at second place (3.59). This is followed by personal
selling (3.43) and advertising in journals and magazines (3.26).Advertising on Television

11

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has been given the first rank and Publicity (2.25) is given the last. However there is no so
significant variability in the factors if we move from one.
http://www.academia.edu/3672177/Comparative_Study_of_Promotional_Strategies_adop
ted_by_Public_and_Private_Sector_Banks_in_India

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CHAPTER NO. 2
CASE STUDY

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2.1 INTRODUCTION

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CHAPTER NO. 3
SWOT ANALYSIS

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3.1 STRENGTHS

Direct marketing emphasizes track able, measurable responses, results and costs
from prospects and/or customers regardless of medium.

Direct marketing can be evaluated and measured precisely

Whether you are targeting business (b2b) customers to consumers, direct

marketing can deliver results.

3.2 WEAKNESSES

In financial services, people are primarily bothered about security of their funds
and default risks.

The effort to promote banking business is quite distinguished affair.

At present, it has become very tricky due to the changing trends of industry,
increasing competition and efficiency of regulatory environment, and the financial
system.

3.3 OPPORTUNITIES

A direct marketing campaign with a clear call to action can help you boost your
sales to existing customers, increase customer loyalty, recapture old customers and
generate new business.

You can build a profile of your best customers and actively seek new contacts
matching that description by buying or renting new lists.

Direct marketing works because it puts your message in front of people.

3.3 THREATS

The Data Protection Act is complex and privacy laws are becoming tighter.

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The most frustrating aspect of bank marketing are lack of management support,
lack of inter-departmental cooperation, crisis management, government intrusion
and advertising & media problem.

CONCLUSION
Promotion has different aspects for different industries, products and services. Its final
goal is to communicate positive word of mouth among existing and potential
customers about the corporate, product and service. In banking the customers must be
ensured that services provided by a particular bank have been designed to give them
maximum value of their money. In brief, it can be said that in India wherever the
dilemma of private and public sector comes always two things are considered. Public
sector is more reliable but not so good in the quality and innovativeness. Private sector
is not considered so reliable, there may be hidden charges in the services and false and
misleading information in the advertising but they are better in the service quality.
Private sector banks must be more true and reliable first. They have to win the hearts
of the customers, after that they will be able to win minds as well. In traditional tools
of promotion both sectors banks are almost same. Private Sector banks are adopting
more push strategies to attract and catch the customers. This creates the difference
between promotional strategies adopted by Public and Private Sector Banks.

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RECOMMENDATION
Banking sector reforms have changed the traditional way of doing banking
business. Mainly technology is the outcome of banking reforms. Customer is now
the king and customer focus or satisfaction of customer is the main aim of the
banks. With the introduction of new products and services competition has grown
up among the banks. Only those banks will survive who face the competition with
the effective ways of marketing. Complete analysis of the present marketing
management strategy and the constraints of the business of the bank show that the
bank is not performing well in the student and rural segment of India. The
marketing mix and the branding strategy used by the bank are not targeting the
consumers belonging to the student and rural segment. These segments constitute a
huge population within India. Missing out such segments with huge potential is like
a missed opportunity

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2
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