consumer motivation 1

Project Report

“Consumer Motivation”

Department of Consumer BehaviourCurse code 8515

Prepared by: Presented to:Mustanser Waqas Miss.Aliya NoreenAT562212 Prof. Of AIOU

Consumer Motivation

[email protected] Islamabad

Acknowledgment

I am great thankful to Almighty Allah that help me to complete my assignments of ‘Consumer Motivation” .which are given to me by my honest teacher Miss.ALIYA NOREEN.

And I can’t forget the help of my friends my seniors and collogue to give me great support, guidance, about completion of my difficult task.

Finally, I would like to thank my brilliant Teacher because there was the

helping me in all the difficult tasks of this assignment. Regards especially

to my sweet parents for her unconditional love and support, without these

all support, this study was not possible for me to complete. It’s all

kindness of my beloved parents which pray to me and I will complete my

given task effectively and timely.

At the end I am again thankful to all which help and support of me.

AIOU Islamabad - 1 - Consumer Behavior

mailto:[email protected]

Consumer Motivation

Abstract

Understanding consumer problems is probably one of the most repeated expression in consumer behavior and marketing literature. Textbooks, trade books, journals, magazines, and other sources of knowledge in these fields stress the relevance of interpreting consumer problems for various marketing knowledge constituencies.

How have marketing scholars dealt with this concept to date? Do they agree on how to define this concept? What role could consumer problems play in a theory of consumption?

This research monograph tries to answer these questions through a literature review on consumer problems that covers the past 40 years. To gain a broader perspective on consumer problems, the review examines its relationship with offerings and outcomes of consumption experiences. This conceptual framework helps highlight both current drawbacks and solutions to address these weaknesses.

Furthermore, the book sheds light on the knowledge development system in marketing and specifically on its social infrastructure as the main factor affecting the production of knowledge. This provides a context to assess how the concept of consumer problems has evolved.

The monograph shows that consumer problems are a key element in a theory of consumption and the lack of such a theory requires a renewed interest in consumer motivation as a starting point to build it.


Consumer Motivation

Table of Content

Topics Page No.1.Introduction…………………………………………42.Positive and Negative Motivation…………….…….63.Success and Failure Influence Goals…………………..74.Defense Mechanisms:…………………………………….85.Practical study………………………………………11

5.1 Company Profile…………………………….115.2 Company Analysis…………………………125.3 Marketing Analysis………………………....145.4 Promotion …………………………………...155.5 Innovation……………………………………185.6 Swot Analysis………………………………..19

5.6.1 Strength……………………………5.6.2 Opportunities ……………………..5.6.3 Weakness …………………………5.6.4 Threats…………………………….

6.Findings……………………………..………………207.Conclusion…………………………………………..218.Recomendations…………………………………..…219.Referances……………………………………….…..23


Consumer Motivation

CONSUMER NEEDS & MOTIVATION

“Understanding human needs is half the job of meeting them”

Adlai Stevenson

What is Motivation?

Motivation can be described as the driving force within individuals that impels them to action. This driving force is produced by a state of tension, which exists as the result of an unfulfilled need.

Needs

Every individual has needs. Some are innate, others are acquired.

Innate Needs: are physiological (i.e., biogenic), they include needs for food, water, air, clothing, shelter or sex. Because they are needed to sustain biological life, the biogenic needs are considered primary needs or motives.

Acquired Needs: are needs that we learn in response to our culture or environment. These may include needs for self-esteem, prestige, affection, power etc. Because acquired needs are generally psychological (i.e., psychogenic), they are considered secondary needs or motives. They result from the individual’s subjective psychological state and from relationships with others.For example: All individuals need shelter; thus, finding a place to live fulfills an important primary need for a newly transferred employee. However, the kind of resident he rents or buys may be the result of secondary needs. He may seek a place in which he and his wife can entertain large groups of people (and fulfill social needs). The house of an individual ultimately purchases thus may serve to fulfill both primary and secondary needs.

Goals: are sought-after results of motivated behaviour. All behaviour is goal-oriented.

Generic Goals: General classes or cagegories of goals that consumers select to fulfill their needs.


Consumer Motivation

Product-Specific Goals: Specifically branded or lebelled products that consumers select to fulfill their needs. Example: Conveying the consumers information generally about usage of IT education, selection of best institute etc given by NIIT is generic. If NIIT conveys how it is superior than others its product/service specific.Example2: Dairy whitner usage information genericIf amul (amulya) comes out with this focus then it is product specific.

Selection of goals:

For any given need, there are many different and appropriate goals. The goals selected by individuals depend on their personal experiences, physical capacity, prevailing cultural norms and values, and the goal’s accessibility in the physical and social environment. For example, an individual may have a strong hunger need he may go to the college canteen and have some food (meat) if his doctor has advised not to take any meat -> then he may go for vegetarian if doctor again has adviced not to take oily substances he may go for something else.

It is based on individual perception again. Based on culture pizza/burger/fastfood/meat/fried rice etc will be consumed.

Interdependence of Needs and Goals:

Needs and goals are interdependent, neither exizsts without the other. However, people are often not as aware of their needs as they are aware of their goals.

For example,

a college student may not consciously be aware of his social need but may join a voluntary organization a women may not recognize her achievement needs but may strive to have the most successful internet browsing center/computer education center in her town.

Individuals are usually somewhat more aware of their physiological needs than they are of their psychological needs.


Consumer Motivation

Most people know when they are hungry or thirsty or cold, and they take appropriate steps to satisfy these needs. The same people may not consciously be aware of their needs for acceptance, for self-esteem, for status. They may, however, subconsciously engage in behaviour that satisfies the psychological (acquired needs).

Positive and Negative Motivation:

Motivation can be positive or negative in direction. We may feel a driving force toward some object or condition, or driving force away from some object or condition. For example, a person may be impelled toward a restaurant to fulfill a hunger need and away from motorcycle transportation to fulfill a safety need.

Rational Versus Emotional Motives:

Rationality has been used in traditional economic sense, which assumes that consumers behave rationally when they carefully consider all alternatives and choose those that give them the greatest utility (i.e., economic man theory)

In a marketing context, the term rationality implies that consumers select goals, based on totally objective criteria, such as size, weight, price, miles/litre etc.

Emotional motives imply the selection of goals according to personal or subjective criteria (For example, the desire for individuality, pride, fear, affection, status).

Consumer researchers come out with two persons:Positivist: who tend to view all consumer behaviour as rationally motivatedExperimentalists: who go for fun, or fantasy, or sensuality.

=>The Dynamic Nature of Motivation:

=>Needs and Goals are constantly changing:


Consumer Motivation

=>Needs and goals are constantly growing and changing in response to anindividuals’physical condition, environment, interactions with others, and experiences. As individuals attain their goals, they develop new ones. If they do not attain their goals, they continue to strive for old ones or develop substitute goals.

=>Needs are never fully satisfied

Most needs of the human being are never fully or permanently satisfied. For example, at regular intervals people experience hunger needs that must be satisfied. The same may be the case with higher order needs also.

1. New needs emerge as old needs are satisfied

Some motivational theorists behave that a hierarchy of needs exists, and

that new, high-order needs emerge as lower-order needs are fulfilled. For example, a man who has largely satisfied his basic psychological needs may turn his efforts to achieving acceptance among his new neighbours by joining their political clubs and supporting their candidates.

2. Success and Failure Influence Goals

In general, individuals who successfully achieve their goals usually set

new and higher goals for themselves, and vice-versa.

Substitute Goals:

When for one reason or another, an individual cannot attain a specific goal or type of goal that he or she anticipates will satisfy certain needs, behaviour may be directed to a substitute goal. Although the substitute goal may not be as satisfactory as the primary goal it may be sufficient to dispen uncomfortable tension. For example, a college student who cannot afford to a Suzuki Fiero may continue himself with some economy models.


Consumer Motivation

Frustration

Failure to achieve a goal often results in feelings of frustration. At one time or another, everyone has experienced the frustration that comes from the inability to attain a goal. Regardless of the cause, individuals react differently to frustrating situations.

Defense Mechanisms:People who cannot cope with frustration often mentally redefine

the frustrating situation in order to protect their self-image and defend their self-esteem.

(i) Agression: Individuals who experience frustration may resort to aggressive behaviour in attempting to protect their self-esteem. Frustrated consumers have boycotted manufacturers to improve product quality, and boycotted retailers in efforts to have prices lowered.

(ii) Rationalization: Sometimes individuals redefine a frustrating situation by inventing plausible reasons for being unable to attain their goals. For example, consumers who cannot quit smoking may continue themselves and others by saying they use filter cigars only.

(iii) Regression: Sometimes people react to frustrating situations with childish or immatured behaviour. For example, in a bargain sale, the dissatisfied consumer may tear a garment (un)knowingly).

(iv) Withdrawal: Frustration is often resolved by simply withdrawing from the situation. For example, a person who has difficulty in achieving officer status in an organization may simply quit that organization. Further he may decide to use his time more constructively in other activities. Another example, VRS Schemes Mutual Funds LIC Schemes etc take hold of these consumers.

(v) Projection: An individual may redefine a frustrating situation by projecting blame for his own failures and inabilities on other objects or persons. For example, the driver who has an


Consumer Motivation

automobile accident may blame the other driver or the condition of the road.

(vi) Autism: Autism, or autistic thinking, refers to thinking that is almost completely dominated by needs and emotions, with little effort made to relate to reality. Such day dreaming, or fantasizing, enables the individual to attain imaginary gratification of unfulfilled needs. A person who is shy and lonely, for example, may daydream about a romantic love affair.

(vii) Identification: Sometimes people resolve their feelings of frustration by subconsciously identifying with other persons or situations they consider relevant. Marketers have long recognized the importance of this defense mechanism and often use it as the basis for advertising appeals. That is why slice-of-life commercials and advertisements are so popular. Such advertisements usually portray a stereotypical situation in which an individual experiences a frustration and then overcomes the problem that has caused the frustration by using the advertised product.

(viii) Repression: Another way that individuals avoid the tension arising from frustration is by repressing the unsatisfied need. Thus, individuals may “forget” a need; that is, they force the need out of their conscious awareness. For example, A couple who cannot/don’t have children husband will/may go to library and wife beng a school teacher in forgetting their sorrow.

Slice-of-life Commercials:

Television commercials that depict a typical person or family solving a problem using the advertised product or service. They focus on “real-life” situations with which the viewer can identify solutions to problems.

Multiplicity of Needs:

A consumer’s behaviour often fulfills more than one need. In fact, it is more likely that specific goals are selected because they fulfill


Consumer Motivation

several needs. We buy clothing for protection and for modesty; in addition, our clothing fulfills an enormous range of personal and social needs.

Needs and Goals Vary among Individuals:

People with different needs may seek fulfillment through selection of the same goals. For example, 3 peoples joining social club one – for time passing two – for developing contacts three – for social service

Arousal of Motives

Most of an individual’s specific needs are dormant much of the time. The arousal of any particular set of needs at a specific point in time may be caused by internal stimuli found in the individual’s physiological condition, emotional or cognitive processes, or by stimuli in the outside environment.

Physiological Arousal

Bodily needs at any one specific moment in time are rooted in an individual’s physiological condition at that moment. A drop in blood sugar level or stomach contractions will trigger awareness of a hunger need. Secretion of sex hormones will awaken the sex need.

Emotional Arousal

Sometimes thinking or daydreaming results in the arousal or stimulation of latent needs. People who are bored or frustrated attempts to achieve their goals often engage in daydreaming (autistic thinking), in which they imagine themselves in all sorts of desirable situations. These thoughts tend to arouse dormant needs, which may produce uncomfortable tensions that “push” them into goal-oriented behaviour. For example, A young woman who dreams of becoming a business tycoon may enroll in business school. A young man who dreams of becoming a grand master in chess may join country chess coaching (club)


Consumer Motivation

Cognitive Arousal

Sometimes random thoughts or personal achievement can lead to a cognitive awareness of needs. An advertisement that provides reminders of home might trigger instant recognition of the need to speak with one’s parents.

Environmental Arousal

The set of needs activated at a particular time are often determined by specific cues in the environment, without these cues, the needs would remain dormant. For example, Sakthi Chilli Chicken Masala Ad on Sunday morning

Narasus Coffee Ad on Everyday morning


Consumer Motivation

Practical study

IntroductionCompany profilePakistan telecom mobile ltd, operating under the brand name of‘ufone’ a wholly-owned subsidiary of ptcl commenced its operationsOn 29th january 2001 as a gsm 900 service provider. Since the outsetIt has expanded its coverage and customer base at a rapid pace andEstablished itself as one of the leading cellular service providers inPakistan. Ufone is now considered to be one of the most active,Aggressive and innovative players in the mobile sector of pakistan.The growth of cellular sector in pakistan can also be attributable toGood governance and conducive policies of the government of pakistanIn connection with that in april 2006 emirates telecommunicationCorporation, which is commonly known as etisalat, has assumedManagement control of pakistan telecommunication corporation ltd –Part of the $2.6bn deal to buy a 26% stake. The successfulPrivatization of ptcl, and consequently ufone, is hailed as ushering inA new era for telecommunications in pakistan.As mobile users in the country have reached 88 million at a very rapidPace, ufone has a subscriber base of nearly 17.5 million and a marketShare of nearly 21%. Ufone has seen a subscriber growth of over 10Million since july 2007 onto its network. Subsequently the growth inSubscriber base caused a healthy trend in its revenues and margins.Ufone has always played a pivotal role in the development of cellularMarket in pakistan. For most part it has been a step ahead inIntroducing innovative products to the market. Ufone was pioneer inLaunching the gprs services and multi-media messaging service (mms)In pakistan, including the lead in introducing gprs internationalRoaming and prepaid international roaming for these services in thePakistani market. Currently ufone has expanded its product portfolio toInclude black berry handsets and providing one of the largest edgeNetworks in the country today.Ufone understands the need to communicate effectively and efficientlyAt all levels of society, which is why various products are catering forThe needs of the pakistan corporate market.


Consumer Motivation

Company analysisOrganizational structureThe structure of ufone comprises of board of directors who are beingReported by ceo, chief executive officer.Ceo is a great supervision to the 8 major operations of the company.These operations are divided into departments that are:Finance departmentThe head of finance department is designated as cfo – chief financialOfficer or vice president of financial head. There are further 4 subheadsIn finance department:CNCThe department is responsible for credit exposure for ufonePostpaid connection. The department maintains the record of allPostpaid subscribers in order to ensure the subscribers validity.Budgeting and planningThe department is working over the budgets, the planning ofBudget and its reports to the authorities. This head provides theAnnual budget to be spent. The function of this head is also toForecast any opportunities or threats towards the organization.The reporting of the budget is being done on the monthly basisTo the head of financial officer to keep the record of the budgets.Relationship with banks are also being maintained in order to getHelp in the need time.AccountsThe accounting head is responsible for the book keeping of theRecords. The internal audits are done to ensure the stream linedWorking of the processes as well as external audit by theAccountancy firms.Revenue assuranceThere are revenue assurance policies & procedures being madeBy the personnel. This assurance head also liaise with otherDepartments, obtain, analyze and reconcile reports to ensurePrevention of revenue leakage. The sub-head also ensure errorFree billing operations, deployment of key revenue assuranceApplications/solutions, fraud management.Marketing departmentThe head of marketing department is designated as cmo- chiefMarketing officer or vice president of marketing head. The departmentHas further 3 subheads working in specialized manner according to theSkills and abilities of the employees.


Consumer Motivation

BrandsThere are basically two products of the ufone which serves asThe brands of the company. This sub-head is responsible for theExecution of the brand activities. Ufone is performing thePromotional activities in brands sub-head, including advertisingOver electronic media and print media. The promotionalStrategies are made by the sub-head to get the implementation.Marketing strategy and analysisThe sub-head is working in order to formularize the marketingStrategy according to the market requirement and consumerPreferences. The analysis about the market trend is done and theStrategies are made in relevance. Moreover, competitors areBiggest source of reacting towards the marketing activities.Ufone is having a proactive marketing concept in context ofCompetition.VAS – value added servicesVas sub-head is responsible for proficient functioning ofConveniences provided to the customers, these vas are virtual privateNetwork, call management, missed call notification, phonebook saver and Host of infotainment and entertainment services.

Customer operations departmentOne of the departments to preserve the existing consumers, ufone isHaving a department of customer operations; the head of thisDepartment is designated as vp cops – vice president customerOperations. The department is having 2 further sub heads.

Customer careUfone provides customer care through customer care centerLocated in all key cities, across the country. Ufone’s customerCare representatives are more helpful. They will not only resolveConsumers issues but also guide them into customizing ufone,According to their needs. Customers care is offered to through

Call centreCal centre representatives are providing services, 24 hoursA day. The customers can contact the ufone call center toGet answers to all their queries. Some of them include: bill enquiry (credit limit, expiry date etc.)


Consumer Motivation

reporting of lost phone number blocking in case of lost or stolen sims connection status (active / inactive) tariff products information ufone sales & service center information nearest dealer information ufone coverage areas emergency number information international roaming information value added services information missed call alerts call forwarding conference call fnf activation / changes post pay reward redemption

Marketing analysisUfone is having 2nd largest number of subscribers. Ufone has beenAttracting the masses since the time of its origination. Ufone is alsoKnown for its quick marketing.

Marketing mixI have analyzed the marketing mix of the ufone. Marketing mixIncludes the analysis of the firm’s product, pricing, promotion andPlacement. Ufone’s marketing mix can be

ProductUfone understands the value of words and the need to communicateEffectively and efficiently at all levels of society, which is whyCompany’s primary focus is on u. Ufone offers, prepay & postpayServices in the telecom sector.

Ufone prepayUfone prepay is the product segmented for theYoungsters. They are segmented on the basis ofTheir age and status. They recharge through thePrepaid cards whenever they feel comfortable toLoad the cards.

Ufone postpay


Consumer Motivation

Ufone postpay is created for the executives andBusiness class people, who require making callsWithin the country or internationally for theBusiness purposes. Business executives enjoy theBenefits and value added services connected with postpay product ofUfoneUfone for everyoneThe telecom market’s growing rate in pakistan isHigher than any asian country. Ufone offers lowerRates and better network then other alreadyEstablished cellular companies. All living standardsHave been captured by ufone, like students, labor and businessmen,Etc.Ufone aims to provide with wider coverage, superior connectivity, clearSignals & voice quality to their valued customers.

U-circlePrepay provides an easy way to call friends & family. Ufone is makingIt easy for its consumers to call friends & family with u circle. Now theConsumers can talk more for less with the most economical rates toCall their ufone circle.

U shareUfone prepay customers can now share their balance withEach other through a simple sms in 3 easy steps.

Mobile number portabilityUfone welcomes consumers to bring their mobile number to the bestService. Through mobile number portability (mnp), mobile phoneSubscribers can retain their mobile phone numbers when they changeMobile operators. Therefore a 0300-xxxxxx or 0345-xxxxxxx can be aUfone customer in the mnp regime.

PromotionFor the promotion of product, print media, electronic media, billboards,Broachers and leaflets has been utilized for the awareness of variousCustomers.Time to time, ufone promotes its services / schemes to their users andG;2eneral public via using various type of promotion channels. ThroughThe advertisements people get awareness about the product and areAble to choose the best one for fulfill their requirement in mobile


Consumer Motivation

Telecommunication.

Electronic mediaUfone is making use of electronic mediaThrough television advertisements. Ufone isHaving its great deal of advertisement onTelevision, to aware its consumers about theLatest product offerings. The interesting partIs that ufone is sticking with its humorousAppeal and is doing really good in it. UfoneIs famous for its own style of humorousAdvertisements which are truly becoming the talk of the town. Ufone isMotivated with providing best ads to people with quick service.Advertising campaign is special and impressive than other cellularCompanies, like concept, models, colors scheme and visualizing. TheAdvertisement of post pay has been very much attractive for theBusiness class customers with the slogan of endless possibilities.

Print mediaUfone is actively providing its advertisements in print formAs well. They are using various ways as a means ofPromoting the brand. Ufone’s advertsisments can be seenIn newspapers and magazines. Ufone is vigorous inAttracting people and making them upo date about anyNew information through print media as well.

BillboardsBillboards (including skyscrapers) are theKey sources for the promotion of ufone.Ufone is also in practice with placingBillboards to the prominent areas, which are having the most contactOf the people. These billboards are the reminders of the brand throughWhich people get attracted. New packages or any updates about theProduct features are displayed. Different kind of advertisement can beSeen on television and billboards. Ufone is also a co-sponsor of cricketWorld cup 2007. Moreover, the shops title boards are also beingSponsored by ufone over all pakistan. Now retail stores and shops haveAlso “adopted” the mobile brands. People are seeing fabric stores, toyStores and even doctor’s offices displaying the phone company brandSignboards.


Consumer Motivation

Sms marketingU;fone is not only making a use of electronic media as its promotionalActivities. But ufone is also doing marketing of its new packages, theirUpdates, any new offerings through sms. Ufone is committed to retainIts existing customers to get switched to other network operator.Through sms marketing, ufone is making its consumers aware, withNew items launched and easy way to exercise those facilities by ufone.

Internet marketing

There are users who are activeUsers. They are in continuesContact with www i.e web.These users try to find theSolutions through internet.Ufone website(www.ufone.com) containsBunch of information about theProduct, services, coverage,Placement, and value addedServices. Website is playing aLeading and significant role for the promotion of product. Ufone isPromoting its brand through cyber marketing in which they havePlaced their brand’s slogans and latest reviews. For example they havePlaced banner ads on various sites. The renowned communityFacebook is also having its advertisements on the right pane of theWindow.Call operators of customer service department are professional andProficient to resolve consumer problems and they are 24 hoursAvailable to respond customer’s query.

Market segmentationUfone is segmenting the market according demographic segmentation,I.e. On the basis of age groups. Ufone has segmented its product on theBasis of its features.ufone prepay is segmented for the youngsters, whit attractivePackages to their requirements .ufone postpay is segmented for the people of mature age,Having their own business, belongs to business class or peopleWho are senior executives of the organizations

Target market


Consumer Motivation

Ufone has the target market concerning youth in the nation. This targetMarket of youngsters comprises of the 40% population. Ufone is havingFocused advertising towards the target market simultaneously focusedBrand building over the market segment of youth.Ufone is targeting the emerging segments of middle class in thePopulation to increase the number of subscribers as well as theRevenue generation from these subscribersUfone has also targeted the corporate class, for which ufone isCustomizing the packages in order to preserve the existing small butProfitable corporate of sme market segment..Innovation

The implementation of latest technologyPakistan telecom has a lot more to achieve, the industry may furtherExpand and lower tariffs can also be achieved. The present playersHave many chances to take lead, as consumers are more well-awareAbout their purchase decision concepts such as connectivity, coverage,Voice quality and value added services and will only go for the bestPackages available. Broadband in the last mile, value added productsAnd content development are rather barely explored markets and offerA great deal to an aggressive investor. 3g services in major citiesWould take a slow start but will catch on fairly well and will be a majorContributor in satisfying consumer’s needs provided these are offeredAt affordable cost with easy access, availability, reliability and withAbundant content.Our industry already has ll (local loop), wll (wireless local loop),Ldi (long distance and international), and isp (internet serviceProvider) players and wimax; 3g cellular systems are expected be aPart of this industry soon. Many actions have been started to make 3gServices casual in society.The recent focus of the industry is the proliferation of broadbandServices at affordable rates throughout the nation. The latestTechnology of 3g mobile communications (mobile broadband) has beenEarmarked and pta will soon be inviting applications for 3g spectrumAuction. This technology will increase operating capacity and revenuesBy using hspa technology; at the same time it will also provideSuperior and high speed broadband services, video telephony, internet,Video streaming, high quality mobile tv and a number of value addedServices. The players are focusing on mass advertisement, offeringExpanding coverage, customer services and unique and attractive


Consumer Motivation

Packages.

SWOT Analysis of Ufone Every Organization has some Strengths, Weakness, Opportunities and Threats. Strengths and Weakness are the Internal Factors and Opportunities and threats are External Factors.

STRENGTHS:

They have the latest technology as compared to any other mobile company

As government is backing them they can get as many fund as required by them to introduce the new technology

Good quality service Pakistan's second GSM network Established customer base including lower middle class Less rate than competitors Only company present in all four provinces Highly motivated and trained work force Offering products like mobile office, mobile Internet and MM

WEAKNESSES:

Less coverage in remote areas Not targeting the rural areas at the moment No proper planning to cater the excessive demand

OPPORTUNITIES:

They can start their services in other cities of Pakistan


Consumer Motivation

As they are the subsidiary of Pakistan telecommunication limited, they can acquire as much fund needed to improve their technology

They can also target corporate secto New Technology

THREATS:

Legal environment, government interference PTCL has been given license for cellular operation Mobilink is also going to introduce some new technology and

committed to invest more in Pakistan ZONG, Mobilink and Telenor phone have more coverage in

different cities of Pakistan then Ufone High taxes are imposed on the cellular industry in Pakistan ZONG also now has the GSM technology that is another threat for

UfonFindingsI observed a trend of aggressive marketing and advertisement by theMobile operators in pakistan. They proudly announce 50 paisa, 3 paisa,1 paisa call rates. Trying to one-up other competitors, theAdvertisements emphasize the lowest possible rate to grab theConsumer attention.In reality the low rates being advertised come up with manyConditions. To figure it out one has to read the fine print carefully thatUsually marked with * (asterisk). I think this is unfair to the consumersAnd we need to criticize this trend which some may characterize asDeceptive marketing.Pakistan has remarkable growth in telecommunication industry. It isFound that 75% population of pakistan has mobile phones and theCounting is increasing day by day. Pta recorded customers are about88 million. This is huge craze in mobile industry.Since i am working on this project, i found some irregularities:

Network connectivity problemPeople are worried about cellular service they often complaint thatCellular operators are not willing to enhance their services. Caller feelsDisturbance, busy network, and unauthorized call ending.

Dirty smsCellular operators provide bundle sms / mms offers which results hugeLoad on networks. Bundle offers also cause dirty and unethical jokesAnd sms.


Consumer Motivation

Rough/unreal ideas in advertisingMany cellular service companies are using rough ideas for tvAdvertisement. Specially prepaid products are not belonging toRealities. The imagination is not attractive and not belongs to human.

Too much advertisementCellular companies are having bombardment of advertisement on tvChannels. People are fading up with this type of unnecessaryAdvertisements.Advertising budgetCompanies are spending millions dollars for in favor of advertising butThey don’t pay attention for the improvement in network or service.Although ufone’s management has signed rupees 550 million contractTo spend its operation in interior areas and villages of pakistan butThere is still more amount required to provide better service forCustomers.ConclusionTelecom industry is most growing industry of pakistan still hugeInvestment required for coverage. The market also has strongCompetition after the entrance of china mobile company as player.Competitors are hiring professionals to entertain the consumer which isResulting technological implementation and value added services.Ufone is a place where one can live his dreams and pursue a careerThat reflects his skills and passions. People in ufone give flexibility forChange, the opportunity to learn, and providing career options withEndless possibilities the managers at ufone believes that allEmployees have a right to offer input and be involved in helping theirOrganization grow.All departments are working together and they wants to create a workEnvironment in which employees can improve their minds,Continuously learn, gain professional growth and feel inspired bySimilarly motivated individuals. The ufone takes pride in providing theBest possible working environment. They take a constant interest inOnes progress by conducting evaluations and offering the support andResources one needs.I reveal some complications in “findings”. It has been analyzed thatPeople are concerned about call rates they do not prefer any particularCompany. Consumer searches good service with lowest call rates,Although companies are minimizing call rates this will result moreGrowth in the market and to meet the customer needs by satisfyingThem.


Consumer Motivation

RecommendationsInstallation of equipment with professionalEngineers

Cellular companies must understand the worth of their presence in theMarket. If there is a growth, there is immense competition. CellularCompanies should pay attention on the service which is providing toCustomers. They just spend on their network growth but don’t realizeThe value of service. Advanced technological equipment should beInstalled with professional engineers this will benefit the consumers.

Call rates & sms bundle offerCompanies should minimize the call rates instead of sms rates. LowSms rates causing dirty and non-sense jokes which is buildingUnsecured society. Adults are wasting their time in sending andReceiving unnecessary messages on mobile phone.

Attractive advertisingAfter having comments on advertising campaigns with different livingStandards, i observed that companies are not efficient in advertising.Mostly cellular advertisers are using rough and unreal ideas which areNot changing consumer’s perception towards any cellular service.Marketers should convince in polite way instead of bhangra style.Companies should implement the effective advertising strategiesWhich affect the consumer and easily deliver message.

Control on advertising and budgetToo much advertising lost its importance; companies should control theSpots of advertising. They should avoid too much repetition of ad.People faded up and don’t want to watch ads. They should educate the


Consumer Motivation

People and give proper complete message against call rates and otherValue added services.Companies spend much money on advertising campaigns; they shouldControl it and pay attention on service.

Recommendations 3g - the major force for broadband penetration. The following are

someOf the recommendation for the growth of 3g broadband market inPakistan.

Government should provide tax holiday to the wireless operatorsFor the implementation of 3g services in pakistan.

The expected 3g license cost should be kept at a reasonable rateTo spur growth in the broadband segment and should not beUsed as a vehicle for earning additional revenues forGovernment.

Usf should also encompass the broadband services and shouldHelp the operators in their expansion in semi urban areas andLater on in the rural areas of pakistan.

Subsidies should be given on the computers, customer premisesEquipment and other hardware. Steps should be taken toEncourage local manufacturing of such items.

Local content developers should be given special incentives andOutside purchase of such content should be discouraged.

Regulation of pricing for maintaining businesses profitable 3g licensing

Existing cellular industry is one of the most competitive industriesAnd it is recommended that no new entrant is offered licenses in 2gOr 3g market. As 3g is a natural evolution for gsm and theBroadband market is its infancy with limited market size. It isRecommended that (1 x 5 mhz) spectrum is allocated to eachOperator and auction of remaining 5mhz at a higher price toInterested operator for additional spectrum. This is help inDeveloping the broadband market with significant coverage for 3gServices.

R&d fundThe r&d fund is not being used for sectors benefit and it isRecommended that either the r&d fund is abolished or reduced to aLogical level with considering historical utilization with respect to


Consumer Motivation

Growth in cellular industry. The scope and utilization of the r and dFund needs to focus on:1. Establish of local manufacturing of handsets2. Subsidy on alternate uses of energy and local development3. Training and development of human resources for call centersAnd research and telecom education4. Development of local content and software development.

ReferencesThe information has been gathered through the various sourcesIncluding

ufone – department of strategic planning pakistan telecommunication authority – annual reports

2007-2008 www.ufone.com www.telecompk.net www.pta.gov.pk . www.propakistani.com www.financialdaily.com


http://www.propakistani.com/

http://www.pta.gov.pk/

http://www.telecompk.net/

http://www.ufone.com/

consumer motivation 1

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