Original Service Marketing- brokerage

8/7/2019 Original Service Marketing- brokerage

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BROKERAGE SERVICES IN

CAPITAL MARKETS

Presented by:Roll No: 101-110


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Brokerage Firm

Brokerage firms, also known as broker-dealers, are licensed by theSecurities and Exchange Commission (SEC) to buy and sell securities forclients and for their own accounts.

A firm employed by others to plan and organize sales or negotiate

contracts for a commission.

Brokerage firms come in all sizes, from one- or two-person offices to hugefirms with offices around the world. They are sometimes differentiated asfull-service or discount firms, based on pricing structure and clientrelationships.

Brokerage firms derive their profit from commissions on orders given i.e.,they usually collect a percentage of the value of each transaction, thoughsome charge flat fees.


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Type of Brokerage firm

There are mainly two type of brokerage firm :

1. Full - service Broker

A broker that provides a large variety of services to its clients,

including research and advice, retirement planning, tax tips, and

much more. Of course, this all comes at a price, as commissions atfull-service brokerages are much higher than those at discountbrokers. For e.g. IIFL, Indiabulls, Religare etc

2. Discount Broker

A stockbroker who carries out buy and sell orders at a reducedcommission compared to a full-service broker, but provides no

investment advice. For e.g. Firm which are doing their transactiononline are mostly Discount brokers like geojit BNP paribus.


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Some brokerage firms in IndiaThere are many brokerage firms in India but here we named some

famous Firms in the basis of service provided by them to theinvestors (source: The economic times)


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Services offered by brokerage

firms Stock broking services

Commodity trading service

Provide trading tips to customers

Provides market research and analysis

Merchant banking services for IPO Issue.

Wealth management and portfolio services

Mutual funding and insurance services


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Some Brokerage Firms and their

services

1. India Infoline Ltd.

The IIFL (India Infoline) group, comprising the holding company,India Infoline Ltd and its subsidiaries, is one of the leading

players in the Indian financial services space.

IIFL is a dominant player in the retail as well as institutional

segments of the market. It recently became the first Indian

broker to get a membership of the Colombo Stock Exchange andis also the first Indian broker to have received an in-principleapproval for membership of the Singapore Stock Exchange. I hasa wide distribution reach which reach over 2500 businesslocations across over 500 cities in India.


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Services provided by IIFL

Media andResearch

Services

Investment Banking

Credit & Finance Insurance

WealthManagement

MarketingServices

Commodities

Equity Trading

India Infolineltd

Mutual Funds


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2.Religare

Securities Ltd

.

Religare Securities Ltd. ("RSL"), a wholly ownedsubsidiary of Religare Enterprises Limited (REL), a globalfinancial services group is a market leading securities

firm in India. The company offers equity broking servicesto more than half a million clients using both, offline andonline platforms and also offers, depository participantservices.

RSL is a member of the NSE, BSE, and a depositoryparticipant with NSDL and CDSL. RSL employs morethan 4300 employees (as on December 31, 2009) and hasa wide distribution reach that spans across more than1800 locations in India.


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S

ervice provided by Religare

Arts Initiative

InvestmentBanking

WealthAdvisoryServices

PersonalCredit

Insurance

Mutual Fund

Commodity

Equity

REL


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7Ps Of service Marketing

1. Product

2. Price

3. Place4. Promotion

5. Physical evidence

6. People7. process


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7ps adopted by mentioned brokerage firms

1. Product

Name of firm

Basis of

differentiation

Product Variation Dedicated Account SMS

Alertservice

1. Race

2. Rally

1. R-ACE(Basic)

2. R-ACE lite (Advanced)

3. R-ACE Pro (Professional)

Not avail.

No product

variation available

No dedicated A/c is available

but trading is done

through TTAdv software

and offline mode by calling

RMs.

1st to

introduce

Equity & Derivative:


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Portfolio Management Service (PMS)

Name of firmBasis of

differentiation

Product variety

1. Monarque- For HNI category to provide high returns

2. Panther - For High Risk High Return investor3. Tortoise- For Medium Risk Medium Return investor

4. Elephant- For Low Risk Low Return Investor

5. Caterpillar- For investor with high risk appetite.

6. Leo - Aimed at retail customers and misx of moderate and

aggressive investment strategies.

No product variety available. Same product is available for all

investors.


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2. Price

Apart from theses charges each firm charges their PMS serviceunder Price skimming strategies.

And for personal financing service they mostly use penetration

pricing.

Name of firm

Basis of

Pricing

Accountopening

charges(Rs.)

Annualmaintenance

charges(Rs.)

Brokerage rateintraday

On Delivery

500 250 0.05% 0.50%

555 Nil 0.05% 0.50%


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4. Promotion

For Promotion they mainly rely on :

Tele-marketing .

Advertising in business newspapers/ magazinesand TV channels.

Approaching clients References

Inviting students from different business schoolsfor summer internship

New trend is seen i.e creating page on socialnetworking sites.


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5. Physical Evidence

Demat account form

letter of authorization

Current account opened documents

Various other forms.

Bills and its receipt


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6. People

People are important because:

Providing a service, rather than selling a product.

Quality of personal relationships between companyand clients becomes vital.

New staff needs thorough training and constant

monitoring. Strategies and tactics for recruiting, training and

safeguarding relationships.

People Involved

Other people used are:

Agents, Technicians,

other employees.


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7. Process

1. Contact the firm or go directly

2. Ask for service you need

3. Take the form4. Fill it and submit with paying charges (by

bank DD or check)

5. Start Trading / use service6. Give the feedback or contact if any Query

arise.


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Firmsstatusthrough its Punch line

India Infoline Its all About Money. Honey! It shows that India Infoline is fully Focused on making money. Aspeople are conscious about earning money, It tries to capturethe mindset and sentiment of people .

Religare securities Ltd. V

alues That BindIt tries to focus on delivering value to its customer attached withreturns . It emphasis more on value service by delivering productvariation for investors of different level which forced them to bebound with the firm.

Sharekhan Ltd. your guide to the financial Jungle

It denotes the financial market as a jungle where competition isnot for survival of living but survival of investor to remain inmarket for longer time through proper guidance.


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Original Service Marketing- brokerage

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