Compulsory Industrial Training Report

8/6/2019 Compulsory Industrial Training Report

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Compulsory Industrial Training Report

On

Study On Marketing Of Service In IT IndustryPREPARED FOR AND PRESENTED TO

PATNI COMPUTER SERVICES

UNDER THE GUIDANCE OF

COMPANY SUPERVISOR NAME COLLEGEMENTOR NAME

Mr.Randhir Kumar Mr. Vishal Verma

SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD

OF POST GRADUATE DIPLOMA IN MANAGEMENT

BY

MR. ROSHAN PRASAD KARN

IEM MANAGEMENT COLLEGE

ANWARI BARABANKI

(2009- 2011)


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DECLARATION

I, Mr.Roshan Prasad Karn here by, declare that the CITreportentitled

Study On Marketing Of Service In IT Industry., has been done by me

under the supervision of Mr.Randhir Kumar Asst. Branch manger of

PCS, Lucknow and under the able guidance of Ms. Vishal Verma,

Faculty, I.E.M Management College, and it has not been submittedearliertoany universityoranyotherinstitution.

(ROSHAN PRASAD KARN)

PLACE: LUCKNOW

DATE:


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ACKNOWLEDGEMENTS

I wish toexpress my gratefulness toMr Vishal Verma,facultyand my mentorfor

the project, I.E.M Management College for her constant guidance during the

project.

I am extremely indebted to Mr. Randhir Kumar, Branch Manager, Service

Department, Patni ComputerServices, Lucknowforgiving permission to undertake

theproject work inhisorganization.

It isa greatprivilege to me toexpress mysincere thanks toMr., Asst. Manager,

Service Department, Patni Computer Services for his help, cooperation and

support during myproject work.

Lastly, I haveabsolutelyno words toexpress myfeelingsofgratitude to thestaff

members of marketing executives for their full cooperation and valuable

suggestions in thecompletionofmyproject work.

(ROSHAN PRASAD KARN)


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INTRODUCTION

STUDY ON MARKETING OF SERVICE IN IT INDUSTRY.,


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What Is Service?

A service is the action of doing something for someone or something. It is largely intangible (i.e.

not material). A product is tangible (i.e. material) since you can touch it and own it. A service

tends to be an experience that is consumed at the point where it is purchased, and cannot be

owned since is quickly perishes. A person could go to a caf one day and have excellent service,

and then return the next day and have a poor experience. So often marketers talk about the nature

of a service as:

Inseparable - from the point where it is consumed, and from the provider of the service. For

example, you cannot take a live theatre performance home to consume it (a DVD of the same

performance would be a product, not a service).

Intangible - and cannot have a real, physical presence as does a product. For example, motor

insurance may have a certificate, but the financial service itself cannot be touched i.e. it is

intangible.

Perishable - in that once it has occurred it cannot be repeated in exactly the same way. For

example, once a 100 metres Olympic final has been run, there will be not other for 4 more years,and even then it will be staged in a different place with many different finalists.

Variability- since the human involvement of service provision means that no two services will

be completely identical. For example, returning to the same garage time and time again for a

service on your car might see different levels of customer satisfaction, or speediness of work.


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Right of ownership - is not taken to the service, since you merely experience it. For example, an

engineer may service your air-conditioning, but you do not own the service, the engineer or his

equipment. You cannot sell it on once it has been consumed, and do not take ownership of it.

Services Marketing

Services marketing is marketing based on relationship and value. It may be used to market a

service or a product.

Marketing a service-base business is different from marketing a goods-base business.

There are several major differences, including:

1. The buyer purchases are intangible2. The service may be based on the reputation of a single person3. It's more difficult to compare the quality of similar services4. The buyer cannot return the service

The major difference in the education of services marketing versus regular marketing is that

instead of the traditional "4 P's," Product, Price, Place, Promotion, there are three additional "P's"

consisting of People, Physical evidence, and Process.Service marketing also includes the

servicewomen referring to but not limited to the aesthetic appearance of the business from the

outside, the inside, and the general appearance of the employees themselves. Service Marketing

has been relatively gaining ground in the overall spectrum of educational marketing as developed

economies move farther away from industrial importance to service oriented economies.


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DIFFERENT STRATEGIES OF SERVICE MKT.

The Arthur D Little (ADL)Strategic Condition Matrix offers a different perspective on

strategy formulation. ADL has two main dimensions - competitive position and industry

maturity.

Competitive position is driven by the sectors or segments in which a Strategic Business Unit

(SBU) operates. The product or service which it markets, and the accesses it has to a range of

geographically dispersed markets that are what makes up an organization's competitive position

i.e. product and place.

Industry maturity is very similar to the Product Life Cycle (PLC) and could almost be renamed

an 'industry life cycle.' Of course not only industries could be considered here but also segments.

It is a combination of the two aforementioned dimensions that helps us to use ADL for marketing

decision-making. Now let's consider options in more detail. Competitive position has five main

categories:

y 1. Dominant - This is a particularly extraordinary position. Often this is associate withsome form of monopoly position or customer lock-in e.g. Microsoft Windows being thedominant global operating system.

y 2. Strong - Here companies have a lot of freedom since position in an industry iscomparatively

powerful e.g. Apple's iPod products.


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y 3. Favourable - Companies with a favourable position tend to have competitive strengthsin segments of a fragmented market place. No single global player controls all segments.

Here product strengths and geographical advantages come into play.

y 4. Tenable - Here companies may face erosion by stronger competitors that have afavourable, strong or competitive position. It is difficult for them to compete since they

do not have a sustainable competitive advantage.

y 5. Weak - As the term suggests companies in this undesirable space are in an unenviableposition. Of course there are opportunities to change and improve, and therefore to take

an organization to a more favourable, strong or even dominant position.

From here the strategic position of an organisation can be established. Managers then need to

decide upon the best strategic direction for the business. For example they might use a Gap

Analysis. According to ADL, there are six generic categories of strategy that could be employed

by individual SBU's:

y Market strategies.y Product strategies.y Management and systems strategies.y Technology strategies.y Retrenchment strategies.y Operations strategies.

This well known marketing tool was first published in the Harvard Business Review (1957) in an

article called 'Strategies for Diversification'. It is used by marketers who have objectives for

growth.


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Ansoff's Product/Market Matrix

y Market Penetrationy Here we market our existing products to our existing customers. This means increasing

our revenue by, for example, promoting the product, repositioning the brand, and so on.

However, the product is not altered and we do not seek any new customers.

y Market Developmenty Here we market our existing product range in a new market. This means that the product

remains the same, but it is marketed to a new audience. Exporting the product, or

marketing it in a new region, are examples of market development.

Product Development

This is a new product to be marketed to our existing customers. Here we develop and innovate

new product offerings to replace existing ones. Such products are then marketed to our existing

customers. This often happens with the auto markets where existing models are updated or

replaced and then marketed to existing customers.

Diversification

This is where we market completely new products to new customers. There are two types ofdiversification, namely related and unrelated diversification. Related diversification means that

we remain in a market or industry with which we are familiar. For example, a soup manufacturer

diversifies into cake manufacture (i.e. the food industry). Unrelated diversification is where we

have no previous industry nor market experience. For example a soup manufacturer invests in

the rail business.


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Benchmarking

Benchmarking relies upon a comparison between the activities of your own organization and

those of another. Originally benchmarking was used in manufacturing operations where one

process could be compared and contrasted with another.

Think about it in basic terms - you measure a piece of wood along your bench. You keep one end

of the wood level/flush with the end of the bench and cut a notch in the bench itself with your

chisel at the other end. Then you place other pieces of wood in the same location - the shorter

ones you reject and the longer ones you cut down. A benchmark is a measurement tool.

Xerox is commonly cited as the original proponent. More recently the definition has broadenedto include all business processes, competitive advantages, performance and strategies (Prasnikaret al 2005)

The Boston Matrix

Like Ansoff's matrix, the Boston Matrix is a well known tool for the marketing manager. It was

developed by the large US consulting group and is an approach to product portfolio planning. It

has two controlling aspect namely relative market share (meaning relative to your competition)

and market growth.

You would look at each individual product in your range (or portfolio) and place it onto the

matrix. You would do this for every product in the range. You can then plot the products of your

rivals to give relative market share.


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In true customer orientated fashion, at this stage the organisation prepares the offering to meet

the needs of targeted customers. This area focuses strongly upon marketing communications and

the promotions mix.

Service.

This includes all areas of service such as installation, after-sales service, complaints handling,

training and so on.

Support Activities.

Procurement.

This function is responsible for all purchasing of goods, services and materials. The aim is to

secure the lowest possible price for purchases of the highest possible quality. They will be

responsible for outsourcing (components or operations that would normally be done in-house are

done by other organisations), and ePurchasing (using IT and web-based technologies to achieve

procurement aims).

Technology Development.

Technology is an important source of competitive advantage. Companies need to innovate to

reduce costs and to protect and sustain competitive advantage. This could include production

technology, Internet marketing activities, lean manufacturing, Customer Relationship

Management (CRM), and many other technological developments.

Human Resource Management (HRM).

Employees are an expensive and vital resource. An organisation would manage recruitment and s

election, training and development, and rewards and remuneration. The mission and objectives

of the organisation would be driving force behind the HRM strategy.

Firm Infrastructure.

This activity includes and is driven by corporate or strategic planning. It includes the

Management Information System (MIS), and other mechanisms for planning and control such as

the accounting department.


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INDUSTRIAL PROFILE


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of the largest industries worldwide, connecting the world in ways that was unimaginable some

time ago.

During the early 1990s the company was too focused on its hardware market and couldnt take

advantage of the growth of software opportunities. It was then that Naren Patni roped in

consulting group McKinsey to recommend how to scale up their business. The firm

recommended massive restructuring of the organization into strategic business units based on

market segments and technological expertise supported by horizontal groups. From an 80 crore

company in 1996, the companys revenues have grown to 656 million USD till 2009.

Narendra Patni

Global Expansion

The companys global expansion began when they set up an office in London UK in 1993. It was

followed by a surge of expansion in different parts of United States as well as in various

European and Asian countries including Japan. Along with offices pan-India, now Patni has 28

offices worldwide.

This expansion was not just geographical. Across the years, Patni has added various services to

their offerings as well as practices like engineering services, enterprise application solutions, e-

business solutions, BPO services and so on. They have acquired companies like The Reference

Inc, Cymbal Corporation, ZAiQ Technologies, Taratec, Logan Orviss and very recently CHCS.

Patni collected various accreditations like ISO 9001:2000, CMM Level 5 and P-CMM Level 3

certifications and integrated Six Sigma techniques.


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IPO

Soon after implementing McKinseys restructuring, a model that would be adopted later by most

competitors, Naren Patni took a very important decision. He decided to invite Merrill Lynch to

act as advisor for their Initial Public Offering (IPO). According to their analysis, Patni had all the

trappings to attract private investments critical mass, proven track record and stable customer

base. By a combination of coincidences General Atlantic, a global leader in private equity

investment, was looking for a suitable Indian software player to invest in and invested US $ 100

million in September 2002. Patni underwent an IPO on February 2004 which was oversubscribed

22 times. They are currently listed on Bombay Stock Exchange (BSE), National Stock Exchange

(NSE), India and New York Stock Exchange, US.

In the same year, Patni acquired Fremont, California based Cymbal Corporation for a sum of

US$78 mn. Cymbal's acquisition allowed Patni to enter $60 billion IT services market in the

telecom vertical which was previously not available to Patni on their business landscape.[9] This

acquisition also allowed Patni to spread its Non-GE Business, and added a development center

in Hyderabad, India.

In December 2005, Patni listed its ADRs on the New York Stock Exchange (NYSE) under the

ticker PTI. The board of directors includes chairman Narendra Patni

Patni Knowledge Park

Patni Knowledge Park, Airoli, Navi Mumbai

Patnis first foray into a knowledge park was when Patni Knowledge Park opened its gates in

September 2006 in Airoli near Mumbai, India.

In 2008, Patni launched its first Green IT-BPO knowledge centre in Noida, India. The state-of-

the-art environment-friendly

facility complements the organizations green initiatives aroundefficient utilization and conservation of energy, water and natural resources. The centre is spread

over5 acres (20,000 m2) and has a seating capacity of over 3500. Later the same year, it was

awarded the LEED Platinum (Leadership in Energy and Environmental Design) rating for its

Green IT-BPO Centre inaugurated earlier this year in Noida. This makes the Patni Knowledge

Centre the second largest Platinum rated building in the world, and the largest Platinum rated

building outside the United States.


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The Patni Logo

The Patni logo is a circle formed by individual spiraling shapes.The circle, a symbol of

completeness, represents the holistic solutions that Patni creates. Just as the individual spirals

come together to form a circle, so the diverse elements of Patni's global resources work together

to deliver a complete solution to clients.

The individual spirals are moving together in synchronicity - moving forward to achieve a

common goal. The entire image is skewed forward to communicate a multi-dimensional,

dynamic perspective.

The name Patni is presented in lowercase letters to appear more approachable, contemporary and

innovative. Using the full name Patni gives the company a stronger sense of identity while

moving away from generic initials that have become indistinguishable from the rest of the

industry.

The red color in the icon represents the progressive, energetic part of the company while the grey

of the Patni word represents its dependability and trustworthiness

Company Vision

Company Value

To be a trusted partner, powered by passionate minds, creating innovative options to

excel.

PassionZeal to exceed expectations by challenging the status quo.

Honesty & Integrity

Driving all actions based on openness, trust and ethical conduct.

Operational Excellence

Striving for excellence with an operating discipline, benchmarked with the best

globally.

InnovationCreating innovative solutions for success.

Customer Centricity

Ensuring customer delight. Always


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Service Offerings

o Application Development o Application Management

o Verification and Validation o IT Consulting

o Process Consulting o Enterprise Application Solutions

o BI and DW o Enterprise Integration

o Business Process Management o IT Governance

o Web Technology Solutions o Enterprise Mobility Solutions

o Open Source Software Services o CIS and BPO

o RFID o Infrastructure Management

o Embedded Systems o Engineering Services

INDUSTRY THEY SERVE

Insurance & Healthcare


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PROJECT PROFILE

The project was primarily aimed at studying the marketing of services with special reference

to Information Technology Industry. Patni Computer System was the company where I have

done this research to find out the strategies they are adopting to promote there services to theretargeted customers. And to find out the strategies adopted by different firm for marketing

there services.

On the project I did survey in different sites of Patni Lucknow on the basis of

questionnaire I had prepared. The project was all survey based and the result which came

out is all based on the factual information provided by the customers which had filled

my questionnaire form.

After collecting information I analyzed all data under the process of research

methodology and then drawn a result from that.

This study will help in know, what kind of strategy Patni and its competitors is making to

compete its competitors.

As service is intangible and perishable so it is difficult to promote it but with several

marketing strategies it could be done . Does this research will focus on that strategies

which are adopted by IT Industry to be specific in the cut throat competition.

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Compulsory Industrial Training Report