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Customer Trend Toward SMS
Customer Trend Toward SMS
Customer Trend Toward SMS
Rahim Ejaz
CHAPTER 1
INTRODUCTION TO RESEARCH
Scope of Research
SMS are become very much important and significant, as people are more
educated, aware of and have considerable knowledge about different use
of SMS. People are much conscious about SMS.
On the same lines, the calls have also got the utmost importance.
Because, a greater number of customer make calls. Companies face much
and much competition from each other’s side, regarding promotional
campaign, obtaining market share and enhancing brand image among
consumers.
The demand for SMS is increasing steadily with the increase in the
population. So there is no need to boost up the demand but these three
sectors have to compete with each other in the competition. They attract
different market segments towards them by offering different
combinations of benefits, sought by those market segments.
The companies offering SMS packages to meet the needs and wants of
the customers:
• The customers want less and cheap SMS rate, that they satisfy their
needs and wants.
• People think that, these companies are charging the heavy cost of
promotion to us.
In Pakistan, the SMS are new, and they do not know well about the
Pakistani consumers. SMS are introduced in Pakistan just a few years
Here our research will address to all the potential problems, controversies
faced by the customers of telecom companies.
We have designed and conducted our research on the topic stated as:
Research objectives
We have undertaken conducted our research in D.G.Khan. So, in general,
the research will reveal and depict the response of Pakistani consumers,
and in particular the response of this backward area of the Punjab
province towards SMS trends.
• To explore the factors that why the performance of SMS are not up
to the mark in spite of huge investment in its promotion.
• A purchase manager may ask, “From where and from whom I can
purchase different things at lower cost with no commitment on
quality”.
CHAPTER 2
RESEARCH METHODOLOGIES
Problem Statement
We have stated our research problem in the following words:
How SMS capture the Pakistani marker while SMS are not so popular
Worldwide.
Type of Study
The main purpose and task of our research is to figure out and explore the
underlying factors due to which SMS could not perform up to the mark.
The misperceptions of people about SMS. The flaws in the promotional
campaign of SMS from different telecom companies. As exploratory
Exploratory Research
Initial research conducted to clarify and define the nature of a problem.
Survey Research
“Surveys require asking people, who are called respondents, for
information, using either verbal or written questioning. Questionnaires or
interviews are utilized to collect data through the mail, on the telephone,
or face to face.” The more formal term sample survey emphasizes that
the purpose of contacting respondents is to obtain a representative
sample of the target population. Thus a survey is defined as “a method of
primary data collection based on communication with a representative
sample of individuals.”
And in our research we will use sample questionnaire for the data
collection method, while meeting the respondents personally.
Sampling
The process of using a small number of items or parts of a larger
population to make conclusions about the whole population.
Sample
Population
A complete group of entities sharing some common set of characteristics
is called as population. The population of our research was the total
population of D.G.Khan city.
Sampling Unit
Non-Probability Sampling
In non-probability sampling the probability of any particular member of
the population being used in unknown. The selection of sampling units in
Quota Sampling
A non-probability sampling procedure that ensures that certain
characteristics of a population sample will be represented to the exact
extent that the investigator desires.
Convenience Sampling
The sampling procedure used to obtain those units or people most
conveniently available.
Questionnaire Design
• Our questionnaire is consisted of 30 item questions.
Sample Questionnaire
Our sample questionnaire is consisted of 30 item questions.
CHAPTER 3
LITERATURE REVIEW
Segment Marketing
A market segment consists of a large identifiable group within a market. A
Company that practices segment marketing recognizes that buyers differ
in their wants, purchasing power, geographical locations, buying attitudes,
and buying habits. At the same time, though, the company is not willing to
customize its offer or communication bundles to each individual customer.
The company instead tries to isolate some broad segments that make up
a market.
Market Segmentation
The telecom companies of Pakistan have not segmented a special market
for SMS subscribers. Companies set the cheapest rates of SMS and as well
as call, that now cell phone are easily accessible to all people of Pakistan.
Especially low income people are taking advantage of it. The target
market is whole country for cellular users.
Geographic Segmentation
Geographic segmentation calls for dividing the market into different
geographical units such as nations, states, regions, countries, cities, or
neighborhoods.
Demographic Segmentation
In demographic segmentation, the market is divided into groups on the
basis of demographic variables such as age, family size, family life cycle,
gender, income, occupation, education, religion, race, generation,
nationally, or social class.
Income
Income segmentation is another longstanding practice in such product
and service categories as automobiles, boats, clothing, cosmetics, and
travel.
Social class
Social class has a strong influence on a person’s preference in cars,
clothing, home furnishings, leisure activities, reading habits, retailers, and
so on. Many companies design products or services for specific social
classes.
Psychographic Segmentation
In psychographic segmentation, buyers are divided into different groups
on the basis of lifestyle and personality.
Behavioral Segmentation
In Behavioral Segmentation, buyers are divided into groups on the basis of
their knowledge of attitude toward, use of, or response to a product.
Occasions, benefits, user status, usage rate, loyalty status, buyer-
readiness stage, and attitude are used for constructing market segments.
Occasions
Buyers can be distinguished according to the occasions they develop a
need, purchase a product, or use a product.
Benefits
A powerful form of segmentation involves classifying buyers according to
the benefits they seek from product.
User Status
Markets can be segmented into groups of nonusers, ex-users, potential
users, first-time users, and regular users of a product.
Usage Rate
Markets can be segmented into light, medium, and heavy product users.
Heavy users are often a small percentage of the market but account for a
high percentage of total consumption.
Market Targeting
Once the firm has identified its market-segment opportunities, it has to
evaluate the various segments and decide how many and which ones to
target.
Second, the firm must consider whether investing in the segment makes
sense given the firm’s objectives and resources. Some attractive
segments could be dismissed because they do not mesh with the
company’s long-run objectives. Even if the segment fits the company’s
objectives, the company must consider whether it possesses the skills and
resources it needs to succeed in that segment. The segment should be
Selective Specialization
Here the firm selects a number of segments, each objectively attractive
and appropriate, given the firm’s objectives and resources. There may be
little or no synergy among the segments, but each segment promises to
be a moneymaker. This multi-segment coverage strategy has the
advantage of diversifying the firm’s risk. Even if one segment becomes
unattractive, the firm can continue to earn money in other segments.
Undifferentiated Marketing
In undifferentiated marketing, the firm ignores market segment
differences and goes after the whole market with one market offer. It
focuses on buyers’ needs rather than differences among buyers. It
designs a product and a marketing program that will appeal to the
broadest number of buyers. It relies on mass distribution and mass
advertising. It aims to endow the product with a superior’ image in
people’s minds.
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M. Rahim Ejaz
When several competitors practice undifferentiated marketing, the result
is intense competition in the largest market segments and under-
satisfaction of the smaller ones.
Differentiated Marketing
In differentiated marketing, the firm operates in several market segments
and designs different programs for each segment.
Advertisement
Advertising is any paid form of non-personal presentation and promotion
of ideas, goods, or services by an identified sponsor.
Message Generation
In principle, the product’s message – the major benefit that the brand
offers should be decided as part of developing the product concept. Yet
even within this concept, there may be latitude for a number of possible
messages. And over time, the marketer might want to change the
message without changing the product, especially if consumers are
seeking new or different benefits from the product.
Message Execution
The message’s impact depends not only upon what is said but also on
how it is said. Some ads aim for rational positioning and others for
emotional positioning. The choice of headlines, copy, and so on, can make
a difference in the ad’s impact.
Creative people must also find a style, tone, words, and format for
executing the message. All of these elements must deliver a cohesive
image and message.
Style
Any message can be presented in any of the following different execution
styles, or a combination of them:
Slice of Life: Shows one or more persons using the product in a normal
setting.
Fantasy: Creates a fantasy around the product or its use. Perfume ads
commonly use fantasy to appeal to consumers.
Tone
The communicator must also choose an appropriate tone for the ad
Procter & Gamble is consistently positive in its tone – its ads say
something superlatively positive about the product, and humor is almost
always avoided so as not to take attention away from the message. In
contrast, ads for Staples office-supply super-stores, while advertising
equally mundane products, focus on a humorous situation rather than on
the products themselves. Other companies use emotions to set the tone
particularly film, telephone, and insurance companies, which stress
human connections and milestones.
Words
Memorable and attention-getting words must be found. The following
themes listed on the left would have had much less impact without the
creative phrasing on the right.
Let us drive you in our bus instead “Take the bus, and leave the of
driving your car. Driving to us”.
Creativity is especially required for headlines. There are six basic types of
headlines:
News
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M. Rahim Ejaz
“New Boom and More Inflation Ahead … and What You Can Do About It”
Question
“Have You Had It Lately?”
Narrative
“They Laughed When I Sat Down at the Piano, but When I Started to
Play!”
Command
“Don’t Buy Until You Try All Three”.
Format
Format elements such as ad size, color, and illustration will make a
difference in an ad’s impact as well as its cost.
Target Audience Media Habits: For example, radio and television are
the most effective media for reaching teenagers.
Another promising new media site is the store itself. Older promotional in-
stores vehicles, such as end-aisle displays and special price tags, are
being supplemented by a flurry of new media vehicles. Some
supermarkets are selling space on their tiled floors for company logos.
Advertising Effectiveness
Ads may be more effective when their message is congruent with their
surroundings. For example, a “happy” commercial placed within an
Business Research Methods | Customer trend towards SMS 21
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M. Rahim Ejaz
upbeat television show is more likely to be effective than a downbeat
commercial in the same place. Similarly, a “serious” commercial usually
works best when placed within a serious program. In addition, people are
more likely to believe a TV or Radio advertisement, and to become more
positively disposed toward the brand it supports, when the ad is placed
within a program that they like or with which they are heavily involved.
CHAPTER 4
RESEARCH ANALYSIS
Telecom Market
Before making the analysis of SMS, following are the major characteristics
of our respondents, which include their mean age, region etc. These
things are important to understand because these determine the type and
nature of our respondent and the area to which they belong and these will
be helpful in understanding the differences among their behavior.
Introduction
The basic and fundamental element is to set some objectives for a
research. Every research needs an objective. The objective of our
research is Customer trend towards SMS packages. The basic purpose is
60
50
40
30
Customer Trend toward SMS
20
10
0
SMS Call
20
15
SMS Consumption
10
0
500 1000 1500 2000 2500
40
35
30
25
20
SMSConsumption
15
10
5
0
500 1000 1500 2000
40
35
30
25
20
SMSConsumption
15
10
5
0
1000 1500 2000 2500
60
50
40
30
SMS consumption
20
10
0
-500 500 1000 1500
50
40
30
SMSConsumption
20
10
0
1000 1500 2000 2500
Price Analysis
Customer Preference toward SMS Rates
30
25
20
0
Ufone Telenor Warid Mobilink Zong
70
60
50
40
30 SimPortabilityRatio
20
10
0
yes No
Money Consumption
Hoe much customers consume money on SMS
50
40
30
MoneyConsumptiononSMS
20
10
0
50 100 150
Results
• All the customers of SMS subscribers consume more then 1000 SMS
in a month.
• 80% customers are cell phone users for more then 2 years.
CHAPTER 5
FINDINGS
Findings
After analyzing the questionnaire from various aspects, we came to know
the following points: