1.

1 INTRODUCTION

Introduction to Promotion

Promotion is one of the key factors in the marketing mix and has a key role
in market success. Promotion is used to ensure that customers are aware of the
products that the organization is offering. The promotional mix is the combination
of the different channels that can be used to communicate the promotional
message to the customers. The channels to be used are; advertising, direct
marketing, public relations and publicity, personal selling, sponsorship and sales
promotion.
The importance of sales promotion has increased since the 1960’s and also the
sophistication of methods used. Sales promotion is sometimes considered as an
activity of less importance but companies increasingly realize the importance of
having a well planed and structured program for sales promotion. All businesses
need to communicate to the customer what they have to offer.

Dwyer & Tanner (2006) states that Business customers are larger than individual
customers; meaning that each business customers is more important to the
economic situation of the business marketers company. There are also fewer
business customers, so each business customer is also more important to the
economical situation of the company; unhappy customers can affect the
business marketers business in a noteworthy way. (Ibid) According to Fill and Fill
(2005) the B2B market for goods and services bought and sold is far larger than the
consumer market. The business market includes many different types and sizes of
organizations that cooperate and create relationships of different importance and
duration.
Introduction to B2B Marketing
Today, there are several definitions explaining the concept of B2B marketing;
Dwyer and Tanner (2006) states that business marketing is about marketing
services or products to other companies, government’s institutions, and other
organizations.
The B2B marketing concept is also explained by Brierty, Eckles, &
Reeder (1998) as; “Business marketing consists of all activities required to
provide goods and services to customers these customers include producers of
both natural and fabricated products, government agencies and service
producing organizations including institutions, wholesalers and retailers. These
diverse customers can use products and services to fabricate their own end
products or to facilitate the operation of their business”.

B2B marketing is totally differentiated from consumer marketing because the

business buyers are not acting as consumers consuming the products themselves.
(Fill & Fill, 2005)
The factors that are significant for business markets are the, nature of demand, the
buying process, international dimensions and the importance of development and
improvement of the relationship between organizations in the buying and selling
process
B2B SALES PROMOTION
“Sales promotion are marketing and communication activities that change the
price/value of a product or service perceived by the target, thereby (1) generating
immediate sales and (2) altering long-term brand value”. (Shultz, Robinson, &
Petrison, 1998)
According to Kwok (2005) there are two types of sales promotion; monetary
and non- monetary. These two types of sales promotion are separated and
categorized by their significant differences: Monetary sales promotion are
transactional and recognized for providing immediate rewards to the customer,
e.g. discounts, coupons, rebates and price packs; non monetary sales promotion
are recognized for providing delayed rewards and being relationship-based, e.g.
sweepstakes, free gifts and loyalty programs.

Shultz, et al. (1998) says that sales promotion generally works on a direct
behavioral basis rather than effecting awareness or attitude. It is continuously said
that most types of sales promotions affect the decision-making and purchasing
stages of the buying-process directly. Compared with other tactics sales promotion
generally has less long-term effectiveness, this means that that sales promotion
generally has less long-term effects and creates more immediate results. (Ibid)

The extensive use of sales promotion has led to considerable debates concerning
whether or not it is effective. Critics mean that sales promotion are ineffective in
the long run and lead to loss in market share since it makes the consumers
promotion prone. Other researchers have shown the opposite; that sales promotion
is effective in the long-run since it leads to increased sales and profit. (Kwok &
Uncles, 2005)
1.2 SCOPE OF THE STUDY
 1.3 OBJECTIVES OF THE STUDY
Primary objective
To analyze the impact of promotion on B2b Marketing

Secondary objective:
 To analyze the function of marketing

 To examine the history, growth and development of the organization.

 1.4 LIMITATIONS OF THE STUDY
 Lack of experience.

 Unwillingness to provide information.

2.1 INDUSTRY PROFILE
COMPANY PROFILE

BOARD OF DIRECTORS
PRODUCT PROFILE
 Gold
 Diamond
 Pearl
 Precious gems
 ORGANIZATION STRUCTURE

BOARD OF DIRECTORS

MANAGING DIRECTOR

DIRECTOR

HR PURCHASE PRODUCTION FINANCE MARKETING

DEPARTMEN DEPARTMENT DEPARTMENT DEPARTMENT DEPARTMENT
TTRTT

PURCHASE MARKETING
MANAGER MANAGER

EMPLOYEES EMPLOYEES EMPLOYEES EMPLOYEES EMPLOYEES

 DEPARTMENTS
A brief description regarding departments
 Production Department
 Purchase Department
 HR Department
 Marketing Department
 Finance Department
 PURCHASE DEPARTMENT
Purchasing refers to a business or organization attempting to acquire goods or
services to accomplish the goals of the enterprise. Though there are several
organizations that attempt to set standards in the purchasing process, processes can
vary greatly between organizations. Typically the word “purchasing is not used
interchangeably with the word “procurement since procurement typically
includes Expediting, Supplier Quality, and Traffic and Logistics (T&L) in addition
to Purchasing.
Functions of purchasing department in Joy alukkas
 PRODUCTION DEPARTMENT
Functions of Production Dept:
 FINANCE DEPARTMENT
Finance is very important aspect of every business organization for their
existence and growth. So business needs investments of money in order to earn
more financial returns. It involves rising administrating and controlling the fund
used in business. The main objective of financial management is profit
maximization of the owners’ economic welfare. Finance varies from enterprise
depending upon its nature, size, and other requirement. The management has to
take correct and timely decisions after considering the financial position of the
concern.

CAPITAL STRUCTURE OF THE COMPANY :

Details of share capital
Current financial position
 INVENTORY DEPARTMENT

Details regarding storage, keeping of products

 HUMAN RESOURCE DEPARTMENT
Human resource is the Assets of the organization so proper maintained should be
required. Human resource department deals with managing, recruiting, directing,
staffing and providing training and development programs to employees for
increasing their skill, knowledge and productivity. Human resources of the
company contribute their effort to attain the goal of the organizations.

No of employees
QUALITY CONTROL DEPARTMENT
 ROLE OF MARKETING DEPARTMENT IN AN ORGANIZATION

For a successful business it is important that marketing plays a pivotal role.

Marketing department is one of the most important components of a business’s
survival in the market. The main aims of the marketing department revolve around
understanding the customers and their needs. Marketing activities involve
designing, promoting, pricing a product according to the needs of the market and
customers.
Below summarized are the main aims of the marketing department of any
organization.

To Identify Consumers’ Needs

Businesses today revolve around customers and their needs. It has become
all the more important to identify what exactly a consumer expects from a
product or service. If a particular product or service does not fit in with the
customer requirements, they will not buy it. Here the Marketing departments
come to play a very important role. Their aim is to ensure that new
customers buy products or services offered by their organization and the
older ones make repeat purchases.

Today the competition is gradually increasing with the increase in

customers’ expectations and needs. The aim of the marketing department is
to ensure that the changing requirements of the customers are well
understood and product or service is developed or altered to meet these
requirements. Customers’ buying decision is influenced by various factors
just as product features, price, quality packaging, and prompt delivery and
after sales support.
 The aim of marketing department is to ensure that all these criteria are met
and customers are satisfied. Marketing department aims to work towards
finding out the present and future needs of the customers. In order to
anticipate future needs, proper analysis of customer trends should be
undertaken. In order to gain a competitive advantage it is necessary that the
firm has the capability to develop new products quickly.

2. To Work in Coordination with Various Departments of an Organization

Marketing department needs to work in close coordination with the other

departments such a purchasing, sales, finance etc to ensure that the customer needs
are satisfied while generating profits for the organization.

CRITICAL FUNCTIONS OF MARKETING DEPARTMENT

1. Identifying the important constituencies within the marketplace. Yes, there are
customers and prospects, but there are also groups that set rules and regulations,
influence or recommend, establish barriers, service the product after the sale, and
review the product. All of these groups and more are constituencies that play a role
in the successful marketing of a product or service.

2. Identifying and valuing specific target purchaser/user groups for the product.
(Also known as target audiences or market segments.). Marketing should answer
the questions focusing on who will be a likely prospect, who will be the best
customer. Keep in mind that within the target audience there may be groups that
will be readily obvious as "end users" but there may also be groups that specify,
recommend, purchase, service, pay for; without a great stretch of the imagination,
they may all be considered customers or prospects.
3. Communicating with the marketplace. This function may involve traditional
communications disciplines (public relations, advertising, sales promotion, face to
face selling) along side new disciplines (the Internet). Each target audience
segment within the marketplace may play a different role in the success of
marketing so different techniques or disciplines may be required to communicate
effectively. Objectives need to be set for each discipline used and for each
audience group or segment that is targeted.

4. Conducting transactions with the marketplace. Most people think of marketing

activities as advertising or promotional events -- very visible, very costly. But other
interactions are part of the marketing process and should be viewed as such. (Here
is where the outside-in perspective of marketing plays a vital role.) Order
processing is not just an inventory transaction, but a marketing one as well — the
timely delivery of a product in good condition goes a long way in helping establish
a positive attitude about the company and provides another reason for the end-user
to purchase again and to recommend the company and its products to others.
Payment processing is not just a financial transaction; it is an important element in
the marketing process — payment is what is given in exchange for the item that
will satisfy a need (or an itch). Shipping the product is not just the act of putting
something in a box and handing it over to UPS; it is a marketing transaction as well
— satisfaction with the product or the company is never higher than when the box
or envelop is just about to be opened.
5. Obtaining on-going feedback from the marketplace. An important function of
marketing is to measure the performance of the enterprise in its efforts to acquire
and maintain customers. What does it cost to acquire a customer? What does it cost
to obtain the second order or purchase? Establishing performance metrics is often
an afterthought in the planning process and, in many instances, superficial.

Market share is but one measure of marketing performance. Share of Customer is

equally, if not, more important: if a customer purchases 100 units/year from
enterprise ‘A’ but purchases 500 units /year in total, enterprise ‘A’ has a Share of
Customer of 20%. How much effort should be expended to increase Share of
Customer? Or, how much should be spent to maintain the customer at that level?

Obtaining feedback also means understanding the environmental conditions that

the enterprise operates in, the product is marketed in. Spending on research is
essential to direct the development of a product or service and the development of
communications messages necessary to acquaint potential customers with the
product or service instill in them positive feelings about the product or service and
motivate them to purchase.

Marketing Departments need to be open minded. Marketing Departments often fall

into the trap of thinking they already know all the answers — and all of the
questions. In fact, many Marketing Departments are just as isolated from the
marketplace as the third-shift maintenance group. Constant dialogue with all of the
component elements of the marketplace is one way to avoid missing opportunities
or missing problems before disaster strikes.

SWOT ANALYSIS
It is a tool that identifies the Strengths, Weaknesses, Opportunities and Threats of an
organization. Specifically, SWOT is a basic, straightforward model that assesses
what an organization can and cannot do as well as its potential opportunities and
threats. The method of SWOT analysis is to take the information from an
environmental analysis and separate it into internal (strengths and weaknesses) and
external issues (opportunities and threats). Once this is completed, SWOT analysis
determines what may assist the firm in accomplishing its objectives, and what
obstacles must be overcome or minimized to achieve desired results.

STRENGTHS
WEAKNESSES

OPPURTUNITIES
• Export quality product.
 • International marketing opportunities.
• Arrival of new technology.
• Increase in demand for the product by both domestic and industrial sectors.
• Wide range of marketing facilities.

THREATS
• Emergency of substitute product from competitors.
• Expectation of stake holders.
• Strategic alliance.
• Change in existing government policies.
• Ironased trade barriers.

PERFORMANCE ANALYSIS
Performance analysis is the process of analyzing the total performance of the firm
i.e. efforts taken by employees and executives in increasing the turnover and profit
of the company.
A performance analysis is generally called for when you want to
improve a part of the organization or to fix a problem that someone has brought
forth. When performing an analysis, it is best to take long term approach to ensure
that the performance improvement initiative ties in which the organization’s vision,
mission and values.
Some Synonyms are planning, scoping, auditing and diagnostics. Financial
analysis refers to an assessment of the viability, stability and profitability of a
business, sub-business or a project.

Method used by interested parties such as investors, creditors, and

management to evaluate the past, current, and projected conditions and
performance of the firm. Ratio analysis is the most common form of financial
analysis. It provides relative measures of the firm's conditions and performance.
Horizontal Analysis and Vertical Analysis are also popular forms. Horizontal
analysis is used to evaluate the trend in the accounts over the years, while vertical
analysis, also called a Common Size Financial Statement discloses the internal
structure of the firm.

It indicates the existing relationship between sales and each income

statement account. It shows the mix of assets that produce income and the mix of
the sources of capital, whether by current or long-term debt or by equity funding.
NET SALES ANALYSIS

years Sales
2004
2005
2006
2007
2008
2009
2010

Here we have to put a diagram showing sales using above figures.

INTERPRETATION

The above shows bar diagram implies the growth of the company for the last five
years regarding their sales.
 NET PROFIT ANALYSIS

years Profit
2006
2007
2008
2009
2010
Same like sales…we have to put a diagram showing profits

Interpretation: