National College Of Business Administration & Economics

Retailing e-commerce
Final project

Table of content:

 Methodology
 Origin of retailing
 Current Scenario
 Major Retailers space holders in Pakistan
 SWOT of the Market
 Strength

1|Page
  Weaknesses
 Opportunities
 Threats

 Retail Viability
 Big Bazar
 Drivers of changing in retailing
 Regional Facts
 Consumers expectations
 Characteristics of retailing
 Theories / Models of retailing
 Ecommerce
 Discount store
 Specialty store
 Retail organization
 The changing structure of retailing.
 Classification of retailing unit.
 Merchandising mix
 Retail in Pakistan
 Rural market penetration
 Retail outlet
 Why do people shop?
 Personal motive
 Social motive
 FACTORS EFFECTION DECISION MAKING
 Demographic factors
 Psychological factor
 Environmental factor
 Lifestyle
 Consumer large retail store.
2|Page
  Retail market segmentation.
 Segmentation. Targeting and positioning.
 Stages in marketing segmentation.
 Marketing trends
 Product management
 Retail pricing
 Pricing strategy
 Product oriented objective.

Methodology:

What is Research Methodology? Research methodology is the specific

procedures or techniques used to identify, select, process, and analyze
information about a topic. In a research paper, the methodology section
allows the reader to critically evaluate a study’s overall validity and
reliability. Hypothesis between Depend and independent variables is the
framework to check the foundation of positivity Basically we are
working in three steps making firstly testable hypostasis secondly it’s
recognizing factors to asses group assignments third and last one is
perform a empirical study build on the outcome of the experiment And
the results of these will used to enhanced and reinforced the theory The
other methodology Is sample and data collection two professional in
Sweden (A higher fast growing e-commerce and revenue generating
country) they gave a national lottery ticket to everyone who participated
in questionnaire That’s how they build there methodology for a research.

Origin of retailing:

3|Page
Basic Introduction The word retail comes from the Old French verb
tiller, meaning Divide into terms
“A SALE IN SMALL QUANTITY”
According to the
research paper: For various industries worldwide, recent years have been
defined by the remarkable growth of e-commerce. Enabled by the
Internet, retailers can reach more customers, spread much further in the
distribution chain, and optimize their resources. In the new market.
Moreover, The retail industry has changed drastically whereby in 2022,
a further evolution into the metaverse is having a dramatic effect on the
future of retail into virtual shopping and digital experiences.

Current Scenario:

The Global Retail Industry Retail has played a major role world over in
increasing productivity across a wide range of consumer goods and
services. The impact can be best seen in countries like U.S.A., U.K.,
Mexico, Thailand and more recently China. Economies of countries like
Singapore, Malaysia, Hong Kong, Sri Lanka and Dubai are also assisted
by Retail industry retail is the second largest industry in the United
States both in number of establishments and number of employees. It is
also one of the largest world wide. The retail industry Retailing is a U.S.
$7 trillion sector. AL-Mart is the world’s largest retailer. Wal-Mart has
become the most successful retail brand in the world due its ability to
leverage size, market clout, and efficiency to create market dominance.

4|Page
Major retailers space holders in Pakistan:

Names and revenues

• Junaid Jamshed J. (US$ 37.5M)
• Gul Ahmed Textile Mills, Ltd (US$ 35.9M)
• Limelight (US$ 34.2M)
• Davago.pk (US$ 29.4M)
• Sapphire.pk (US$ 28.1M)

The United States is home to the top three retail companies of the
world, namely Walmart, Amazon, and Costco. In 2021, the total retail
market of the United States reached a revenue of over 6.5 trillion U.S.
dollars.

SWOT of market:

Four strategies for SWOT analysis

1. Double-down on your strengths.
2. Turn your weaknesses into strengths.
3. Create a plan to act on opportunities.

4. Set up measures for mitigating threats.

5|Page
Strength:

Businesses can reach buyers anywhere with an online presence. No need

for a physical storefront: An online store eliminates the overhead costs
associated with renting or owning a brickand-mortar location. Using an
online marketplace provides a convenient way for sales too, as many
consumers will already have accounts and be able to make purchases
with just a few clicks. This will be quicker than having to enter their
details in your site and provides an easy way to compare prices with
other similar products.

Weaknesses:
There will always be multiple sellers that have a similar product
catalogue. In order to increase sales and revenue, different retailers
provide discount offers and freebies to their customers. Offline sales
allow immediate receipt of payment. In the case of online business, the
money is not credited to your account immediately. Once the order is
placed and the sales are made, it takes a few days before the money
reaches the seller. Due to the high level of competition, sellers need to
promote their products online on various social media channels. They
have to incur social media marketing costs to promote their products as
well, which ultimately impacts their profits.

Threats:

6|Page
Common threats to ecommerce businesses include fraud, malware, and
other security breaches, along with the illegal sharing of data. Digital
businesses should also be mindful of the risks associated with working
with third-party vendors, digital security regulations, data privacy laws,
and customer service issues. Human error remains the most common
source of data loss, and usually, it’s the result of an innocent mistake. A
well-meaning employee could delete valuable files and data in an
instant, causing irreparable damage to your digital business.

Opportunities:
Customers can spend less time shopping for what they want. They can
easily browse through many items at a time and buy what they like.
When online, customers can find items that are available in physical
stores far away from them or not found in their locality. A product
listing is what the customer sees when they search for an item. This is
one advantage in ecommerce meant for the seller. This online business
plus point is that you can personalise your product listing after creating
them. The best part? Creating a listing takes very little time, all you
require is your product name or codes like EAN, UPC, ISBN or ASIN.
Offline retail merchants can provide only some details about the product.
This can be a hassle as they have to keep repeating the same data to
every customer!! On the other hand, an online marketplace gives you
space to describe the product – just once and interested people will read
it. One can include even more information like reviews, demo videos,
offers ready and expected delivery timing.

Retail viability:

7|Page
The question of a company’s survival is called “business viability.” Its
financial health and performance are correlated with this survival. A
company can survive if it: It is making a profit that is sufficient to fulfil
its obligations to the company’s creditors and return money to the
proprietor.

Big bazar:

Big Bazaar seeks to provide consumers a great value for their money in
compared to other retail chains, which is shown in its competitive
pricing policy. Customers can always find reasonable things because to
the company’s everyday lowvalue pricing approach, which eliminates
the need for them to just purchase items during year-end sales. We can
Sells things at low price and can increase our sales.

Drivers of changing in retailing:

Changing in online retail sectors could be collapse by changing in

demographics, income disposal change in social media because in online
retail industry Social media has always a big hand in it so any changes
made in it caused a big change in retailing strategy like change in
technology or sustainability These all are obvious reasons describe in
article.

REGINOL FACTS
8|Page
The demographic, demand, competition, cultural, infrastructure and
economic characteristics are important in analyzing a country or region
Consumer expectations
One of the most important things a company can do is meet customer
expectations. Businesses can lose money and face brand image issues if
they don't take steps to ensure. Meeting and exceeding customer
expectations can be challenging, but making an effort in this direction
will lead to better results down the road.
So, in this article, we'll take you through the definition of customer
expectations, why customer expectations are essential for business, what
companies can do to ensure they meet customer expectations, and how a
can be proven an asset for your business.
Several factors influence customer expectations:
 Product or service quality: This refers to the level of
performance that customers expect from a company based on their
prior experience with the product or service. For example, if you
have purchased a new smartphone from a specific brand and find it
slow, you’ll have low expectations for future purchases of
smartphones from this brand.
 Brand reputation: This is how customers perceive your brand,
which is based on their past interactions with you or other people’s
opinions of your brand. For example, if you’re known for poor
customer service, customers will have low expectations when
contacting the helpdesk and having their issues solved.
 Price: The price of your products or services usually sets the bar
for what customers expect from you. The more expensive your
products, the higher your customers’ expectations will be.

9|Page
In order to understand what your customers expect from you, you must
first understand their needs and wants. By doing this, you can create a
customer experience that aligns with their expectations and ultimately
helps to ensure they’re satisfied with every interaction they have with
your brand. This is the best way to delight your customers.
To illustrate this, here are some examples of customer expectations for a
product-based business:
 Speed of delivery: Customers expect fast delivery on all orders.
 Quality: Customers expect products to work as advertised and
deliver on their promises.
 Value for money: Customers expect to get good value for money
when purchasing products from you.
Why Meet Customer Expectations?
Meeting customer expectations is the key to success in business. If you
fail to meet your customers' expectations, they will be less likely to buy
from you again
Characteristics of retailing
Retail units compared in terms of their characteristics can be grouped
into three main types: department stores, specialty retail stores, and
convenience stores.
Department stores are large retailers that carry a wide variety of
merchandise such as clothing, appliances, furniture, and electronics.
Specialty stores may focus on particular categories like fashion or home
goods and usually carry higher-end products.
Convenience stores are smaller, typically located near residential areas,
and offer a limited selection of items for quick purchase. Chain stores

10 | P a g e
are retail units that are part of a larger corporation and can be considered
as any of the three types mentioned above.
Some of the retailing characteristics you need to pay heed to are
1. Direct contact with the customer
Retailing involves direct contact with the customer, so retailers need to
understand customer needs and preferences to provide them with an
effective shopping experience.
Retailers must be able to build relationships with customers, offer
helpful advice and provide a positive shopping experience. It helps to
create an atmosphere in the store that encourages customers to shop,
thus increasing sales.
2. Marketing orientation
Retailing is mainly concerned with marketing products to customers, so
retailers must be able to identify customer needs and develop effective
strategies for meeting those needs. Retailers must also be able to develop
effective promotions so that customers are aware of product offers and
can decide which products best meet their needs.

Retailers must be marketing-oriented and strive to identify customer

needs and preferences and respond to them accordingly. This requires
having a comprehensive understanding of the target market, creating
effective promotional campaigns, and using data-driven decision
making.
3. Point-of-purchase Display and Promotions
Retailers also need to develop effective point-of-purchase displays so
that customers can easily find the products they are looking for. They

11 | P a g e
should also create attractive promotional materials, such as promotional
signs, brochures, and other forms of advertising so that customers are
aware of the products and services offered.
With the help of effective point-of-purchase displays and promotions,
retailers can attract more customers to their stores and increase sales.

Theories/ model of retailing

Cyclic Theories
Cyclic theories hypothesize the retail environment and competitive
practices of retailers will follow a slightly, repeating pattern, with clear
identifiable stages.

Wheel of Retailing Theory

The wheel of retailing theory is one of the most common cyclic retailing
theory. This was first proposed by McNair (1958) is one of the oldest
retailing theories, and is frequently cited. The idea is that retailers will
enter the market and progress through a cycle of strategies. Initially,
McNair believed that retailers would enter the market using a low-cost
strategy, and accepting low profit margins, as a method of acquiring
customers. Costs are kept to a minimum during this phase, with the
retailer offering only limited service and product range. This was
referred to as the entry phase.

Retail Accordion Theory

Retail accordion theory was developed to explain the way retailers
choose the number and type of product categories they would retail, with
the hypothesis that firms would go through a cycle of from general
goods, towards more specific products, and then back to general goods
again.
12 | P a g e
In the initial stages of setting up, and the early stages of retail, the retail
stores would carry a wide range of products to satisfy different consumer
category needs. As the retail environment grows there is an increased
number of specialists attracting consumer attention. However, this trend
of specialization may be shifted again to generalization as consumers
may be attracted to convenience of different goods on one store,
meaning specialist stores need to become more generalized to compete.

Retail Lifecycle Theory

This concept was developed in repose to weaknesses in the wheel of
retail model; the focus on costs and overcome the weakness of the
accordion theory which focuses on merchandise/goods. This theory
reflects the general lifecycle hypothesizing that retail stores will traverse
a lifecycle, starting with development introduction, and then growth
which may be divided into early and later growth, with the potential for
an accelerated growth category. Following this, the firm reaches
maturity, which may be followed by decline, or the lifecycle may be
restarted with a renewal. These may be applied not only to retail stores,
but also retail formats and selling channels. Retailers may be attracted
by new formats and trends which offer potential, but they may face
intense competition as many firms may be attracted to new
opportunities. Importantly, new opportunities may result from disruptive
innovations. When initially introduced in the 19th century department
stores were a , just as catalogues were in the nineteenth century and
ecommerce has been in the twentieth century.

Examining the current retail environment on the UK in 2016, the early

growth stage may be typified with the new single brand stores, such as
Apple and Samsung. Single price stores, such as £1 stores, and
warehouse clubs, may be classified as accelerate growth stores. Retail
stores in the mature category make up a large proportion of retailers,
these include supermarkets, fast food chains, and department stores. The
current retailers in decline include independent grocery stores and
catalogue retailers.
13 | P a g e
Ecommerce
Electronic commerce is buying and selling product through. Internet.
Through web channels websites Pages apps and other E-commerce
related fields ecommerce has evolved to make products easier to
discover and purchase through online retailers and marketplaces.
Independent freelancers, small businesses, and large corporations have
all benefited from ecommerce, which enables them to sell their goods
and services at a scale that was not possible with traditional offline retail
(by Shopify Staff Entrepreneurship Nov 15, 2022)

 Types of Ecommerce
1. Business to Business (B2B)
2. Business to Consumer (B2C)
3. Consumer to Customer (C2C)
4. Consumer to Business (C2B)

Example of Ecommerce
 Retail
 Wholesalers
 Services
 Drop shipping
 Crowd funding
 Subscriptions
 Physical product
 Digital product

Discount stores
14 | P a g e
Every retailer puts customer acquisition above all else at the top of their
priority list. Department stores, warehouse stores, dollar stores, specialty
stores, boutiques, and discount stores are just some of the innovative
retail business models that continue to emerge.

A bargain shop, as the name proposes, is a classification of retail

business where a retailer sells items at more prominent limits. Most of
the time, discount stores operate in the same way that department stores
do. However, discount stores also offer a one-stop shop for a wide range
of products. Discount stores, on the other hand, offer lower prices than
department stores
 How these discount stores work
 Discount stores come with huge investments.
 These retailers buy bulk quantities directly from the manufacturers.
 Discount store retailers mostly buy products during the off-season
to get bigger discounts.
 Discount stores focus on products with virtually no expiry dates
 Retailers buy directly from a manufacturer

Specialty stores
Specialty store is a business that spotlights on selling a particular item or
a thin line of items. Typically, specialty stores are retail establishments
that concentrate on specific product categories. Instead of selling items
in large quantities for later resale, retail stores sell them in small
quantities for immediate consumption. In addition, specialty stores may
offer a wide range of goods within a particular category. Small retail
establishments, national chains, or locally owned specialty stores all
qualify

15 | P a g e
 Reasons to choose the specialty stores
o Specialty stores have expertise on the details of their specific
product or product line.
o Specialty store employees can better support customers in
product selection or troubleshooting.
o Because a specialty store's focus is on a narrow line of
products, a specialty store typically is more organized and
aesthetically pleasing than other general retail stores.
o Specialty stores will most likely produce higher quality items
than other stores

Retail organization
In the rapidly evolving globalized and technology-driven business
world, the retail industry has undergone a radical transformation over the
past few decades. Walmart, the largest retailer in the world right now,
operates globally by establishing hypermarkets in a variety of nations
with the assistance of sophisticated communication and information
systems technology.
In the Fortune 500 list of organizations, 50 are from the retail industry,
and the world's No. 1 occupies the top spot, according to an in-depth
analysis of the trends. Walmart is a retail giant. The measurements
convincingly uncover how quick the retail business has developed and
cleared the way for extension of business as well as work amazing open
doors
Facilities provide by retailers:
 A retailer can provide credit facilities and heavy cash discounts on
the purchase of different products to the customers

16 | P a g e
  Retailers can provide additional services like free home delivery or
after sales services.
 Retailers introduce new products to the customers and also guide
them with the usage of the products.

How retailers help the wholesalers:

 Retailers are a valuable source of information and feedback for the

wholesalers who in turn pass on the same information to the
producers of the products.
 Retailer supports the wholesaler by acting as a channel for
distributing the goods to the customers
 Retailer acts as the point of contact between the customer and the
wholesaler

The changing structure of retailing

Classification of retailing unit:

“The term retail organization refers to the basic format or structure of a
retail business designed to cater to the needs of the end customer”

Conceptual classification of a business unit provides the marketers with

strategic guidelines, useful in the design of retailing strategy. Besides,
retail businesses are extremely diverse and there are quite a few types of
retail units. Therefore, retail units are classified on multiple of
ownership, geographical locations, kind of customer interaction level of
services provided etc.
 RETAILERS CLASSIFIED ON THE BASIS OF OWNERSHIP
 Manufacturer (e.g., company owned retail outlets)
 Wholesaler (e.g., Vastra outlet in Rajouri in New Delhi)
 Independent retailer (Chanakya Sweet Shop near Hazratganj in
Lucknow)

17 | P a g e
 Consumer (consumer owned grocery stores in man y residential
societies)
 Co-operative society (e.g., Mother Dairy milk booths in Delhi)
 Government (e.g., Cottage Emporia)
 Ownership shared among franchiser and franchisee (e.g., Archies
Gallery)

Merchandising mix
The term "merchandise mix" is essentially the product assortment
that a retail store offers. Whereas some stores have a wide merchandise
mix, such as Walmart, other stores have a smaller variety of products,
such as a shoe store.

How this effect the retail market

As the store has so many of product so it cause confusion to customer

like just instance But if your shoe store sold tires and flowers too, you
might wonder just how much it knew about shoes. With that said, if a
merchandise mix is too small or limited, the store runs the risk of
being overshadowed by better-stocked competitors. Using the shoe
example, a consumer might choose a department store, such
as Macy's to buy shoes, because they can also by the dress, jewelry, and
cosmetics to go with them.

Retail in Pakistan
Consumer lifestyles keep changing with growing consumerism in the
country. The change is more apparent in the urban centres where the
hypermarkets or supercenters are heavily concentrated in metropolitan
cities: Lahore and Karachi. The retail sector has an immense
contribution in the overall economic activity of the country Pakistan’s
retail sector has embarked on a growth trajectory that can predict the
industry becoming a major hub for growing businesses. Though retailers
have existed in Pakistan for a long time, the induction of global brands

18 | P a g e
and outlets has really kick-started the sector, forcing local retailers to
expand their boundaries to compete with their larger international
competitors.

With a rise in disposable income, especially in the middle class, this

sector is now flourishing even outside of Pakistan’s mega cities.
Pakistan is an emerging market where the size of the retail market is
estimated around $42 billion, growing faster than the economy at a rate
of 5.3%. The sector could possibly be a huge job creator, and attracting
foreign investment into Pakistan, attracting global brands to the local
market. All that is needed is skilled labour, education, training and a
retail body to promote the sector and engage the government - joining
hands with stakeholders to create a platform to address local issues and
to present Pakistan at global platforms in future

Types of Pakistani Retailers

The sector in Pakistan can be broadly classified as;
Local trade such as Agha’s, Naheed, Imtiaz, Best way, HKB, MCC
etc.
Traditional trade such as Kiryana stores, neighbourhood stores, Jodia
Bazaar etc. The traditional segment is largest in terms of trade.
International Modern Trade (IMT) such as Metro, Hyperstar, Green

Rural Marketing Penetration

Rural marketing is the process of developing, pricing, promoting and
distributing rural specific products and services leading to consumer
satisfaction and achievement of organizational objectives.
The process of change can be evolutionary and not revolutionary
The exposure of rural ties to variety of marketing transactions puts them
in the role of beneficiaries than just buyers of modern

19 | P a g e
Communication is the vital element of rural marketing it should serve to
reduce conflict encourage cooperation and strengths competitive spirit
between rural as well as within rural areas communication is the point of
retaliate from “induced beneficiary”
Rural marketing is the process of developing, pricing, promoting and
distributing rural specific products and services leading to consumer
satisfaction and achievement of organizational objectives.
High level of heterogeneity
We find different types of buyers in rural areas. Some are simple, while
some are sophisticated; some are extreme rich, while some are extreme
poor; some are highly educated, while some are complete illiterate; some
are dynamic and modern, while some are very rigid and orthodox; some
believe in quality and status, while some believe in availability and
price.

Predictability
Unlike urban markets, the rural markets are difficult to predict, and
possess special characteristics. The featured population is predominantly
illiterate, have low and irregular income, lack of monthly income, and
flow of income fluctuating with the monsoon winds.
Role of Government:
Demand of products depends on availability of basic facilities like
electricity, transportation, schools, hospitals, etc. The steps taken by the
Government of India to initiate proper irrigation, infrastructural
developments, prevention of flood, grants for fertilizers, and various
schemes to cut down the poverty line have improved the condition of the
rural masses. Rural market depends on government’s contribution to the
rural sector

Retail outlets
20 | P a g e
Since the customer is at the heart of retail, various combinations and
permutations are used to meet his needs and keep him coming back. So
to match his requirements and request the retailers has emerged with
different stores or retail outlet design. This is located close to residential
areas so as to make easy access to the customers. It offers a limited
range of products like groceries, daily needed FMCG products, etc. It is
small in size as compared to other retail outlets.
Types of retailing outlets

Chain of stores
Franchisee
Specialty Store
Departmental Stores
Super Market
Hypermarket

Shopping Malls

Discount Store
Why do people shop
Personal motives
Personal motives are somehow the desire to do something for personal
satisfaction or it’s the internal drive that leads us to take action towards a
goal. It keeps us moving forward, even when we don't want to like how
a person’s motivation to buy a product is his personal desire, feelings,
and thoughts comprises to buy a product
The main four personal motives to buy a product
The Four Forms of Motivation: Extrinsic, Identified, Intrinsic, thoughts
21 | P a g e
Social motives
Social motives to buy products are any motive acquired as a result of
interaction with others. It could be anything like inspiration or jealousy
or affiliation, aggression, power, altruism, achievement, and approval,
among others. These motives have basic characteristics in common in
the way they are associated with specific goal- directed behavior. They
form a specific system, a culture-related connection of emotion and
cognition
There are five social needs to buy a product in a person
Belonging, Understanding, Controlling, Enhancing Self, and Trusting
Factors affecting decision making
Demographic factors:
The father of demographic John Graunt any statistical factors that have
an effect on population growth or decline can be included in
demographics, but the following parameters are particularly significant:
Size, density, age distribution, fecundity (rates of birth), mortality (rates
of death), and sex ratio. Demographers typically focus on four main
factors when attempting to forecast changes in a population's size:
fertility rates, mortality rates (life expectancy), the population's initial
age profile (whether it is young or old at birth), and migration.
There are five types of demographic
Age, Gender, Occupation, Cultural Background, and Family status

Psychological factors
The quality of the food and drink that people have consumed, their age,
and other physiological factors include how people feel, their physical
health, and their levels of fatigue during learning. When you try to learn
something new for yourself, think about some physiological factors that
22 | P a g e
are important. Vital exhaustion, depressiveness, hopelessness, and
hostility are all psychological risk factors. Adapting can be characterized
as a positive reaction result hope. This expectation is based on how an
exposure and the response to that exposure interact.

Environmental factors
Factors in the Environment Our health is impacted by numerous
environmental factors. Pesticides, lead, increased computer screen time,
carcinogens in food, pollution in the air we breathe, and so on are all
examples of this. Understanding genomics requires an understanding of
environmental factors. Genetic damage that leads to disease can be
caused by environmental factors. Gene-environment interactions, or a
complex interaction between genes and environment, also frequently
underlie disease risk and development. Our ability to measure genetic
variation has significantly improved since the Human Genome Project's
conclusion. While costs have decreased, accuracy has increased. In the
interim, the natural elements stay various, perplexing, hard to normalize,
and profoundly factor after some time. Identifying the most effective
methods for measuring, integrating, and analyzing environmental data as
part of our genomic studies will be a major obstacle to comprehending
the impact of genomics on disease.
Following are the major five environmental factors
Air, water, climate, soil, natural vegetation and landforms

Lifestyles
Personality, culture, context, the availability of information, and
education level are the factors that influence decision-making. When
making a decision, a person should keep these things in mind because
some of them, like personality or culture, can be controlled. Moreover,
in other factors which effect decision making personality is one the
major Decision-makers score high on openness to experience and
consciousness and low on extraversion, agreeableness, and neuroticism,

23 | P a g e
according to the Big Five Factor Model. Because they must exercise
emotional control and make decisions with a rational mind while also
taking into account the emotions of others and themselves, decision-
makers are low on agreeableness and neuroticism. On the off chance that
they are hypochondriac, their feelings could impact their choices. While
"agreeableness" is defined as "going with the flow," effective decision-
makers should have a different perspective on the bigger picture.
Because they are well-organized and disciplined, they have a high level
of consciousness. Most of the time, people who make decisions appear
to have serious personalities and are reserved, so they don't have much
extraversion. They are also more effective decision-makers because they
are punctual and disciplined.

Consumer large retail store:

The aspect of a store's personality that influences a customer's
perception of the establishment. Result of many variable factors which
can be manipulated by a retailer to influence consumer mood and
subsequently the buyers behavior. nt of retail image is a topic of great
interest in retailing research and there are several ways to measure retail
images and brand positions In an increasingly competitive environment,
companies must be customer oriented After all, the underpinning of the
marketing concept is that identification and satisfaction of customer
needs leads to improved customer retention It is thus not surprising that
companies spend substantial resources to measure and manage customer
satisfaction It has been maintained that correct market positioning-based
on a combination of price and product differentiation can provide an
important competitive advantage for commercial organizations This is
especially so within retailing, where effective positioning can lead to a
variety of trading benefits During the past decades both marketing
academics and practitioners have been intrigued by the relationship
between satisfaction and loyalty However, these studies were mainly
concentrated on products (brands) and to a somewhat lesser extent on
services or channel intermediaries. Whereas research on the relationship
between store satisfaction and store loyalty has remained limited, both in

24 | P a g e
actual number as well as in scope. In the present competitive
environment with rapid market entry of new store concepts which affect
the impression and preferences of shoppers. It argues that the levels of
customer preferences determine the influence of the setting of the store
on its image. Studying customer perceptions on store image further
enhances the knowledge of marketers; marketers can use this knowledge
in acquiring more loyal customers and meeting their requirements in
terms of store image. This study identifies the factors that are deemed to
be the most important by customers and provides marketers with
awareness regarding the psychological elements of customers that
influence their perception of store image. A survey was conducted on
customers in shopping malls to identify the effects of the principal
factors of store image on customer perception. It has been shown that
customer behavior is significantly influenced by a store's image, and it is
generally acknowledged that psychological variables play a key role in
the development of a store's image. Research in the past has frequently
measured observable characteristics or examined relationships between
store images and customers' self-images. By examining the relationship
between perceived store image and the personal values that guide
behavioral decisions, this study was conducted to advance to the next
stage. The well-established correlations between clothing preferences,
personality, self-concept, and personal values led to the choice of
fashion retailing as an ideal research domain. Interviews with 30 female
respondents were conducted using the laddering methodology and the
means-end theory. Consumers were shown to be particularly interested
in the terminal values of "enjoyment and happiness" and "quality of life"
in relation to shop image. These were connected to the material qualities
of "price," "quality," and "reputation" through the resultant "nice
feeling." The results of the study serve as a foundation for image and
positioning strategies for fashion stores and serve as an example of how
means-end methodology may be applied in a retail setting. There are
suggestions for additional investigation.

Retail market segmentation:

25 | P a g e
Understanding Market Segmentation
Companies can generally use three criteria to identify different market
segments:

1. Homogeneity or common needs within a segment

2. Distinction or being unique from other groups
3. Reaction or a similar response to the market

For example, an athletic footwear company might have market

segments for basketball players and long-distance runners. As
distinct groups, basketball players and long-distance runners
respond to very different advertisements. Understanding these
different market segments enables the athletic footwear company
to market its branding appropriately.
Market segmentation is an extension of market research that seeks
to identify targeted groups of consumers to tailor products
and branding in a way that is attractive to the group. The objective
of market segmentation is to minimize risk by determining which
products have the best chances of gaining a share of a target
market and determining the best way to deliver the products to the
market. This allows the company to increase its overall efficiency
by focusing limited resources on efforts that produce the
best return on investment (ROI).
Market segmentation allows a company to increase its overall
efficiency by focusing limited resources on efforts that produce
the best return on investment (ROI).
Types of Market Segmentation
There are four primary types of market segmentation. However, one
type can usually be split into an individual segment and an organization
segment. Therefore, below are five common types of market
segmentation.

Demographic Segmentation
Demographic segmentation is one of the simple, common methods of
market segmentation. It involves breaking the market into customer

26 | P a g e
demographics as age, income, gender, race, education, or occupation.
This market segmentation strategy assumes that individuals with similar
demographics will have similar needs.

Example: The market segmentation strategy for a new video game

console may reveal that most users are young males with disposable
income.

Firm graphic Segmentation

Firm graphic segmentation is the same concept as demographic
segmentation. However, instead of analyzing individuals, this strategy
looks at organizations and looks at a company's number of employees,
number of customers, number of offices, or annual revenue.

Example: A corporate software provider may approach a multinational

firm with a more diverse, customizable suite while approaching smaller
companies with a fixed fee, simpler product.

Geographic Segmentation
Geographic segmentation is technically a subset of demographic
segmentation. This approach groups customers by physical location,
assuming that people within a given geographical area may have similar
needs. This strategy is more useful for larger companies seeking to
expand into different branches, offices, or locations.

Example: A clothing retailer may display more raingear in their Pacific

Northwest locations compared to their Southwest locations

Behavioral Segmentation
Behavioral segmentation relies heavily on market data, consumer
actions, and decision-making patterns of customers. This approach
groups consumers based on how they have previously interacted with
markets and products. This approach assumes that consumers prior
spending habits are an indicator of what they may buy in the future,
though spending habits may change over time or in response to global
events.
27 | P a g e
Example: Millennial consumers traditionally buy more craft beer, while
older generations are traditionally more likely to buy national brands

Psychographic Segmentation

Often the most difficult market segmentation approach, psychographic

segmentation strives to classify consumers based on their lifestyle,
personality, opinions, and interests. This may be more difficult to
achieve, as these traits (1) may change easily and (2) may not have
readily available objective data. However, this approach may yield
strongest market segment results as it groups individuals based on
intrinsic motivators as opposed to external data points.

Example: A fitness apparel company may target individuals based on

their interest in playing or watching a variety of sports

Benefits of Market Segmentation

Marketing segmentation takes effort and resources to implement.

However, successful marketing segmentation campaigns can increase
the long-term profitability and health of a company. Several benefits of
market segmentation include

 Increased resource efficiency.

 Stronger brand image.
 Greater potential for brand loyalty
 Stronger market differentiation
 Better targeted digital advertising.

Limitations of Market Segmentation

 Higher upfront marketing expenses

 Increased product line complexity
 Greater risk of misassumptions
 Higher reliance on reliable data.

28 | P a g e
Examples of Market Segmentation

Market segmentation is evident in the products, marketing, and

advertising that people use every day. Auto manufacturers thrive on
their ability to identify market segments correctly and create products
and advertising campaigns that appeal to those segments. Cereal
producers market actively to three or four market segments at a time,
pushing traditional brands that appeal to older consumers and healthy
brands to health-conscious consumers, while building brand
loyalty among the youngest consumers by tying their products to, say,
popular children's movie themes. A sports-shoe manufacturer might
define several market segments that include elite athletes, frequent gym-
goers, fashion-conscious women, and middle-aged men who want
quality and comfort in their shoes. In all cases, the manufacturer's
marketing intelligence about each segment enables it to develop and
advertise products with a high appeal more efficiently than trying to
appeal to the broader masses (By EVAN TARVER Updated March 30,
2023 Reviewed by KHADIJA KHARTIT Fact checked by YARILET
PEREZ)
Segmentation:

It is a method of classifying clients into distinct groups in accordance

with their needs for particular goods or services. The retail
organization's marketing can use market segmentation to develop a
unique marketing mix for different target markets

Targeting

Targeting in marketing involves breaking the target audience into

segments and then designing marketing activities that will reach the
segments most likely to be responsive to your efforts. Target marketing
can greatly increase the success you have in reaching potential
customers.

29 | P a g e
Positioning

Positioning refers to the place you want your brand or product to

have within a particular target market. More specifically, the process
of market positioning and brand positioning involves how you market
your brand or product to consumers to achieve that position

Stages of market segmentations

Segmentation refers to the process of creating small segments within a

broad market to select the right target market for various brands

1. Identify the target market

The first and foremost step is to identify the target market. The
marketers must be very clear about who all should be included in a
common segment. Make sure the individuals have something in
common. A male and a female can’t be included in one segment as they
have different needs and expectations. Burberry stocks separate
merchandise for both men and women. The management is very clear
on the target market and has separate strategies for product promotion
amongst both the segments. A Garnier men’s deodorant would
obviously not sell if the company uses a female model to create
awareness. Segmentation helps the organizations decide on the
marketing strategies and promotional schemes.

2. Identify expectations of Target Audience:

Once the target market is decided, it is essential to find out the needs of
the target audience. The product must meet the expectations of the
individuals. The marketer must interact with the target audience to know
more about their interests and demands. Kellogg’s K special was
launched specifically for the individuals who wanted to cut down on
their calorie intake. Marketing professionals or individuals exposed to
sun rays for a long duration need something which would protect their
skin from the harmful effects of sun rays. Keeping this in mind, many

30 | P a g e
organizations came with the concept of sunscreen lotions and creams
with a sun protection factor especially for men.
3. Create Subgroups

The organizations should ensure their target market is well defined.

Create subgroups within groups for effective results.
Cosmetics for females now come in various categories.
1.Creams and Lotions for girls between 20-25 years would focus
more on fairness.
2. Creams and lotions for girls between 25 to 35 years promise to
reduce the signs of ageing.
4. Review the needs of the target audience

It is essential for the marketer to review the needs and preferences of

individuals belonging to each segment and sub-segment. The
consumers of a particular segment must respond to similar
fluctuations in the market and similar marketing strategies.
5. Name your market Segment

Give an appropriate name to each segment. It makes implementation

of strategies easier.
A kids section can have various segments namely new born, infants,
toddlers and so on.
6. Marketing Strategies

Devise relevant strategies to promote brands amongst each segment.

Remember you can’t afford to have same strategies for all the
segments. Make sure there is a connect between the product and the
target audience. Advertisements promoting female toiletries can’t
afford to have a male model, else the purpose gets nullified.

31 | P a g e
 A model promoting a sunscreen lotion has to be shown roaming or
working in sun for the desired impact.
7. Review the behavior

Review the behavior of the target audience frequently. It is not

necessary individuals would have the same requirement (demand) all
through the year. Demands vary, perceptions change and interests
differ. A detailed study of the target audience is essential.
8. Size of the Target Market

It is essential to know the target market size. Collect necessary data for
the same. It helps in sales planning and forecasting.
https://www.managementstudyguide.com/

Marketing trends

A market trend is a tendency of financial markets to move in a

particular direction over time. [1] These trends are classified as
secular for long time frames, primary for medium time frames, and
secondary for short time frames.
Influencer marketing will evolve into a common marketing tactic
Influencer marketing really picked up steam in 2022, and we predict this
trend will keep pace in 2023. Why? 89% of marketers who currently
engage with influencer marketing will increase or maintain their
investment next year.
On top of that, 17% of marketers are planning to invest in it for the first
time next year.
When marketers collaborate with influencers and industry thought
leaders in their industry, they can expand brand awareness and gain fans
from the influencer's own audience.

32 | P a g e
Can't afford to hire a celebrity influencer with millions of followers?
That's okay. In fact, more than 56% of marketers who invest in
influencer marketing work with micro-influencers

Micro influencers

Micro-influencers are social media promoters with a smaller following

(typically, thousands to tens of thousands of followers). Although they
have fewer followers, their posts often pack more punch due to their
higher level of engagement.

Video marketers will keep content short.

Short-form video has taken the marketing world by storm, and we
predict it will carry over in 2023. A staggering 90% of marketers using
short-form video will increase or maintain their investment next year,
and 1 in 5 marketers plan to leverage short-form video for the first time
in 2023. While long-form videos can offer depth and large amounts of
information about a product, brand, or services to audiences,
both B2C and B2B marketers have learned that getting to the point with
short-form videos can actually be much more effective.

Social media will become a customer service tool.

Leveraging social media as a customer service tool is relatively new, but
this trend is quickly gaining steam. So much so, more than a quarter of
marketers use direct messages (DM's) to offer customer support, and
15% of marketers plan to try it for the first time in 2023.
It's no coincidence that this trend is emerging at a time when many
social media platforms — namely Instagram and Facebook — are
expanding their e-commerce capabilities. For this reason, providing
customer service on these platforms will become even more crucial

33 | P a g e
More businesses will leverage SEO to concur search traffic.
As marketers, we must ensure that our websites and content are as
discoverable as possible — especially on Google — which can provide
both long-term and short-term traffic returns. And, while SEO is not
new, it's strategies are becoming even more ingrained within modern day
marketing strategies.
When it comes to the trend marketers will invest the most money in for
2023, SEO ranks third behind short-form video and influencer
marketing. Further, 88% of marketers who have an SEO strategy will
increase or maintain their investment in 2023, which is a slight uptick
from the year before

Mobile optimization will be even more important.

Consumers are spending more and more time on mobile devices. In
fact, more than half of annual online website traffic comes from mobile
devices, including tablets.
As millennials and Gen Z audiences continue to grow buying power,
mobile-optimized digital experiences will be even more vital to consider
as a business owner who markets to these fast-paced, highly connected
generations.
Below are just some of the reasons why:
 33% of global marketers invest in mobile web design,
 64% of SEO marketers call mobile optimization an effective
investment

More companies will prioritize social responsibility

89% of marketers who create social responsibility content plan to
increase or maintain their investment in 2023, which is almost double
34 | P a g e
from the year before. The trend is clear: social responsibility, ethics, and
transparency matter to the modern consumer.
For instance, 50% Gen Z-ers and 40% of Millennials want companies to
take a stance on social issues, specifically racial justice, LGBTQ+ rights,
gender inequality, and climate change. When companies advocate for
these issues, it has a strong impact on their purchase decisions
Aligned marketing and sales teams will win.
As we inch closer to 2023, it's becoming increasingly crucial for sales
and marketing teams to work together. When these teams are aligned,
marketers can get a more complete picture of their customers, including
their interests, hobbies, and demographics.
But when this doesn't happen, it creates a flurry of problems for
everyone involved. Most notably, it's more challenging to share and
access data across teams — which 1 in 5 marketers currently struggle
with.
Worryingly, only 31% of marketers say their sales and marketing teams
are strongly aligned. It's no surprise that almost half of marketers are
shifting their goals in 2023 towards sales and marketing alignment.
8. Experiential marketing could make a comeback.
Experiential marketing campaigns enable audiences to step into an
immersive experience that is often in a physical place or via an AR/VR
platform. One example of an experiential campaign you might have seen
in the past was M&M's Flavor Room pop-up. he experience included
orb-shaped "rooms," which were each complete with decor and
fragrances unique to a certain candy flavor. The pop-up, which was
based in NYC back in 2018, also included snack and drink lounges with
M&M-themed cocktails — which, I'm willing to bet, we're great
opportunities for M&M to appear on different attendees' social pages.
Although immersive experiences like these were fun, effective, and
highly shareable on social media, they ran into barriers in 2020 and 2021
as businesses, public venues, and entire countries were forced to shut
down public operations in the global pandemic. And, because producing
35 | P a g e
a branded AR/VR experience is a high-budget bet that can also rely on
audiences to have tools like AR/VR headsets or the latest smartphone
technology to access the content -- fewer small brands have invested in
digital experiential marketing.

Inbound marketing will remain a best practice for growing brands.

In a time of digital transformation, embracing inbound marketing is an
incredibly smart move. Throughout the last two years, the world's dealt
with unprecedented change, and outbound marketing tactics have
become even less effective in reaching prospects and leads. The shift
from in-person to hybrid work from home (WFH) business practices
have made inbound marketing come to the forefront of effective tactics.
For example, there’s been a significant rise in virtual events due to
COVID-19 forcing marketers to get creative to catch the attention of
customers.
Product management

Product management is a field that has gained significant traction in

the last several years. More and more businesses across the world
understand that the proper management of their assets is key to
promoting overall business growth and innovation. According to the
2021 Product Plan’s State of Product Management Report , interest in
product management has doubled in the United States. That said,
people across the globe still struggle to understand what product
management is. After all, product management remains an innovative
domain that is in constant development. In this post, we will break
down what product management is. We will also discuss why it is an
important area for many modern businesses.

36 | P a g e
Product management is a practice that a company adopts to oversee a
product’s development and eventual launch. As a comprehensive field
of management, product managers are responsible for the following
disciplines:

 Product Development
 Product Planning
 Customer Research
 Product Forecasting
 Product Pricing
 Product Launch
 Product Marketing

Product management is different from project management. However,

they are similar. Like the former, project management is a multi-
dimensional branch of company leadership that encompasses several
areas such as finance, marketing, strategy, and engineering. Agile
product management is an approach that describes how teams create
product strategies and product roadmaps in Agile companies. Agile
product management is an approach that describes how teams create
product strategies and product roadmaps in Agile companies. Product
managers are at the center of the product development team. They are
responsible for finalizing the product vision and making sure that
everyone involved stays true to it throughout the entirety of the product
roadmap.

Product Management Responsibilities

Product Manager roles are now more diverse than ever in terms of
specific responsibilities. However, there are still some basic tasks that

37 | P a g e
all product managers have to take on as part of the role. Here are some
of the main responsibilities of a product manager.

Customer Research
Detailed customer research is the cornerstone of any good product
strategy. As a product manager, your job is to lead the product
management team’s research efforts in order to uncover useful insight
that will help to craft a solid product strategy.

In order for any product to achieve maximum impact in its target

market, it must solve an actual problem for the user. For that reason,
product leaders must aim to understand the intricacies of the product
market to whom they are serving. Best practices point to the need to
conduct research on market trends and predictions that can be seen in a
given product industry in order to better judge product market fit.

Developing Product Strategy & Roadmap

All of your product management efforts will be null and void if you do
not base them on a product strategy. A strong product strategy involves
developing a concise product vision that articulates the goal you hope
your product will achieve. In doing so, the product strategy must aim
to position the product in its target market in such a way that it
maximizes its chances for success. As a result, product managers
anchor their respective strategies around addressing customer pain
points by providing clear value to their target market. You will
therefore use your industry knowledge to create practical objectives
and goals for the product team. Once you have your product objectives
and goals, you will then prioritize the decisions that your team makes
based on the overall business strategy. As a product management

38 | P a g e
leader, you will also have to communicate the plan you’ve laid out for
product development to the rest of the product team. In order to do
that, product managers create product roadmaps. These
roadmaps dictate the activities that will take place as well as who will
be carrying out each one.

Coordinating Product Development

Once you’ve built your product strategy and its respective product
roadmap, product managers can then get the product development
phase underway.

In product development, the product team will design, prototype, and

build the product. In most organizations, the product manager will not
be the one who does the hard labor in the design or development
process. For that, a product manager relies on the help of UX
designers, graphic designers, and software developers who will put in
the hard work for them. Instead, the product manager has to coordinate
all of the teams involved in product development to ensure that they
are all working in an optimal fashion to meet the product goals.

Analyzing Customer and Market Data

Once the product manager has launched the product, the time has come
to analyze all new product data that comes in. On one hand, this will
include data regarding the product’s performance over a given period
of time. On the other hand, it will also involve analyzing customer
feedback and other product user data that will help the product team to
improve upon their creation.

Retail pricing

39 | P a g e
The retail price is what consumers pay for the finished product when it
is sold. These customers don't purchase the item to resell it but to use
it. The fundamental objective for a retailer when setting a price is to
maximize the profit while setting a price that customers will be ready
to pay. Business A bought 100 pieces of T-shirts at a cost price of the
business owner decided to put a 100% markup on this product and set
the retail price at $ 9. This price will give the business a 50% gross
margin on this product. In more brief words retailing is Retail pricing is
a core aspect of any business that sells products to customers. After
all, consumers may care about a number of factors when making
purchasing decisions, but the price they will pay for an item is almost
always among their top concerns.
When it comes to setting prices for products offered at your retailer,
there are numerous approaches you could take, depending on your
short- and long-term business goals. However, generally speaking, the
retail price you set for any given item must include the cost of that
item plus any markups you make in order to gain a profit from selling
that item.
Factors that affect retail pricing
Although retail pricing is a complex topic with many different
components, the factors that affect how you price your products can
be broadly categorized as either internal or external.
Internal factors are elements of your business that are generally
under your control, such as the costs and processes associated with
manufacturing, or how much you invest in promotions and marketing.
Internal factors are important because they give you an idea of your
baseline, or how much you must earn from retail sales to keep your
business profitable.
External factors, on the other hand, are largely out of your control.
These factors include the proximity and price range of your
competitors or the buying power of your consumers. When assessing
external factors, it’s important to consider macro trends such as the
current state of the national, regional, and global economy, as they
hugely impact customer purchasing behavior.

40 | P a g e
Manufacturer Suggested Retail Price (MSRP)
This pricing strategy is perhaps the most familiar for consumers. The
idea behind the Manufacturer Suggested Retail Price (MSRP) is to
standardize the prices of products sold across multiple locations, and
it is often used for mass-produced items like consumer electronics or
household appliances.
This approach can also be referred to as cost-based pricing, since it
takes into account the cost of manufacturing the product, a profit
margin for both the manufacturer and the retailer, as well as the prices
of similar products. Generally, the manufacturer provides the products
to the retailer at roughly half the MSRP, enabling the retailer to turn a
profit from the sale.
Pros: This approach takes the guesswork out of price-setting for
retailers, saving them time and energy.
Cons: Offering certain products at the MSRP can lower your
competitive edge on those particular products—after all, if you offer
the same item at the same price as other retailers, how do you set
yourself apart?
Keystone pricing
Keystone pricing is essentially doubling the wholesale or production
cost of a product to determine the retail price.
This practice actually stems from the MSRP, which, as we mentioned,
is generally double the wholesale price.
Pros: Similar to the MSRP, this approach saves retailers time and
energy, as it doesn’t require too many calculations to determine the
retail price of a product.
Cons: Although keystone pricing may work for some items, it won’t
work for all of them. For items that are truly worth more, you may be
setting the price too low, which means you won’t achieve the profit
margins you feasibly could on that item. For other items, keystone
pricing may be too high, which will end up hurting your sales—
especially if there is a nearby competitor selling the item for cheaper.

41 | P a g e
3. Bundle pricing
Also known as multiple pricing, bundle pricing is when you sell a
group of products for a single price—think three-pack socks or five-
pack underwear.
Retailers often prefer bundle pricing because it streamlines their
marketing campaigns, as they have to promote a single price instead
of several price points. Customers also love bundle deals, since they
believe they’re getting more bang for their buck.
Pros: Bundle pricing often leads to larger-volume purchases of
certain products or product groups, so if you have unsold inventory
you’re trying to move, this could be a smart tactic to employ.
Cons: Once you offer items in a bundle package at a low cost, it can
be harder to sell them separately at their original price. This is due to
what is called cognitive dissonance, whereby the consumers believe
they’re getting less value for the amount they pay because they’re
comparing it to the bundle deal that was previously available (even if
the bundle deal was more expensive than the individually priced
item).
Discount pricing
As the name suggests, discount pricing is the practice of selling
products at a discount, whether it’s through sales codes or coupons
sent directly to the customer or through in-store discounts or even
store-wide markdowns. Although retailers don’t love the idea of
discounting items as it generally eats into their profit margins,
offering the occasional sale can do wonders for getting more people
into your store and attracting new groups of customers who are out
looking for a deal.
Pros: Discount pricing can be a great way for retailers to get rid of
slow-moving or out-of-season items.
Cons: If you offer discounts too frequently, it can lower your brand’s
perceived value in customers’ eyes, making them unwilling to pay full
price for your goods and services.

42 | P a g e
5. Penetration pricing
Often preferred by newer brands who are set to enter the
market, penetration pricing is the practice of initially keeping
product prices low so as to introduce the brand and its products to as
many people as possible.
The idea is that by generating word of mouth among consumers,
retailers can save on advertising and customer acquisition costs down
the road.
Pros: Offering lower prices than the established competition can help
retailers strike the right chord with shoppers, helping them to build a
loyal customer base from day one.
Cons: If you make the switch from your initial low prices to regular
pricing too abruptly, it has the potential to backfire and alienate the
customers you had acquired by that point.
6. Loss-leading pricing
This is the approach of luring customers in by offering a discount on a
product they want, then encouraging them to buy more products along
with the original one once they’re in your store.
By using the loss-leading pricing, retailers hope to offset their profit
loss on the discounted item by selling additional products the
consumer hadn’t initially thought of buying.
Pros: This approach often increases the average transaction value
(ATV), or the amount a shopper spends in a single shopping trip.
Cons: When it comes to implementing loss-leading pricing, it’s
crucial to strike the right balance in customer service. Just as you
don’t want your customers to feel forced by staff to purchase items
they don’t need, you also don’t want to risk losing money by only
selling the discounted items and not much else.
7. Psychological pricing
Although the concept may sound like something out of a research
paper, we all encounter psychological pricing on a daily basis.
Also known as “charm pricing,” this approach relies on the theory
that customers place greater trust in prices that end with odd numbers
like 5, 7, or 9, the last one being the most popular. So, instead of

43 | P a g e
offering an item for a rounded $200, the retailer may choose to price
it at $199, and customers will perceive this to be a better deal based
on the number alone.
Pros: Psychological pricing is especially useful for brands that want
to increase their overall sales volume by driving customers to make
impulse purchases of cheap to mid-range items.
Cons: Not all brands should implement psychological pricing. In fact,
if you’re a premium or luxury brand, implementing psychological
pricing can have the opposite of the intended effect in that it makes
you seem “cheap” or “gimmicky” in the customers’ eyes.
8. Competitive pricing
As the name suggests, competitive pricing is the practice of using
your competitors’ prices as a benchmark and setting your prices
lower. Again, retailers who take this approach hope to offset their
reduced profit margins by increasing the total volume of sales.
Pros: For large retailers who are able to negotiate deals to lower their
unit costs, the competitive pricing approach can really make a
difference in getting ahead of the competition.
Cons: For smaller retailers, the only way this practice can be
sustainable is to ensure that you sell high volumes of the product.
Also, depending on the product, it can make customers think of your
brand as the discount alternative to other brands.

Pricing strategy

Pricing Strategies Mobilink uses psychological pricing. They have set

their target price on consumer perception of the product value e.g.
outgoing calls at any 3 Mobilink numberscostRs.0.99/min. They haven’t
set the price exactly on Re.1 but have used psychological pricing to
attract customers. Mobilink is the only telecommunication network in
Pakistan , which has reached maturity and is the market leader. This is
why, there prices are somewhat higher than its competitors like PTCL
Wireless and World Call Wireless (at introduction), Warid (at growth) and
Paktel (at decline).They made use of psychological pricing also by
44 | P a g e
offering free roaming facility during Hajj here I explain pricing strategy
in Pakistan as we discuss overall of it above but here I discuss the
pricing strategy of popular mobilink brand in Pakistan
Product oriented objectives
Product-oriented companies are tech-savvy. They can innovate with new
technologies to address customer needs—even if they are unknown—
and generate market demand. The primary goal is to delight the
customer with a high-quality product that caters to their needs better
than those offered by competitors. Product orientation is a business
approach that focuses on a company's products to represent the brand.
It's a type of market orientation, which is when companies emphasize
consumer needs over other priorities. Company leaders who adopt a
product orientation typically invest heavily in research and development
for new products and product lines. They may also rely on customer
feedback to improve their products. For these companies, their products
represent their brand values to potential consumers. Product-oriented
companies span a wide range of industries, including technology,
consumer goods and personal care items.

BENEFITS
Workplace satisfaction
Employees who work in a product-oriented company might find it
rewarding to strive for excellence in product design. If the entire
company focuses on the same goal, it can motivate employees to surpass
goals and innovate new work methods. For example, an outdoor gear
company with a product orientation might emphasize design and
construction quality in every aspect of production, from sourcing
materials to packaging. Product designers, assembly workers and
logistics professionals might feel a sense of pride in working together to

45 | P a g e
create a high-quality product, particularly if the product represents the
company's brand.
Customer loyalty
Companies with a product orientation might build a core of dedicated
customers, which can help ensure repeat purchases. For example, if a
watch manufacturer adopts a product orientation, the company's
management and designers might focus on creating artisan timepieces
from unique materials, like reclaimed driftwood or antique leather.
Customers who appreciate the high level of design and engineering of
the watches might buy multiple products, recommend them or purchase
them as gifts for friends and family members. They might also spend
more money on a watch from the company because they trust in the
product's quality.
Emphasis on innovation
When a company's leadership decides to adopt a product orientation,
they usually commit a significant amount of money and resources to
research and development. While the goal of a product-oriented
company's research is to improve their chosen product, this emphasis on
innovation can lead to additional research discoveries and new
opportunities. For example, a product-oriented electric car company
might have a dedicated team of scientists working on extending the
battery power in the company's cars. In their research, they might make
other scientific breakthroughs that can allow the company to expand into
other areas of renewable energy.
Challenges of adopting product orientation
Here are some ways that a product orientation can be challenging for a
company:
Competition
Adopting a product orientation can be especially successful in
companies with unique products, because they can use this focus on
46 | P a g e
product quality to develop a market niche. If other companies create
similar products, that niche market might offer less profit for the
company. For example, if a fashion denim company gains a reputation
for high quality and style, their market share might shrink because of the
growth of another fashion denim company with similar styles. Some
company leaders manage this risk by increasing their marketing efforts
to distinguish their product from others in the market.
Slower market growth
As product-oriented companies focus on creating products that attract
and satisfy customers, it might take time before their brand gains the
good reputation that might lead to bigger profits. For example, a coffee
mug company might raise money to design a new kind of thermos using
recycled materials. It might take months or years for their product to
become the preferred choice of coffee-drinkers. Also, these companies
often rely on customer feedback to improve their products, so they might
also spend time on limited product launches that allow them to gather
feedback and improve the product line.
Obsolescence
Product-oriented companies in the technology and life science industries
might emphasize their product's innovative features, but this focus on
innovation might require the company to release new products
frequently. As technology increases, a company might encounter more
competitors in their market niche. For example, a technology company
might sell innovative smartphones and tablets, gaining a reputation for
technological superiority. To maintain the brand's image, the company's
engineers might constantly release updates and new versions of the
devices, which might cost the company money
Elements of product orientation
Here are some key elements of a product-oriented approach:
Research and development

47 | P a g e
To ensure that their product attracts and satisfies customers, companies
with a product orientation often have strong research and development
departments. The type of researchers these companies employ usually
depends on the industry. For example, product-oriented technology
companies might have teams of software engineers, coders and
application developers, while personal care product companies might
employ biochemists, medical researchers and lab technicians. In some
companies, the research and development departments play a role in
marketing efforts, as campaigns for new products and services might
emphasize the expert knowledge of the company's research teams.
Quality assurance
To ensure that products meet high standards, product-oriented
companies often have large quality assurance departments. Quality
assurance professionals test and inspect products for design and
function. For example, a quality assurance team for a company that
makes fitness devices might select random devices from each batch and
test them to see if they count steps, measure heart rate and perform other
tasks effectively. They might also stamp the product batch, verifying the
products' quality.
Brand recognition
Product-oriented companies can be especially successful when the
company's brand becomes a symbol of quality in the market. To ensure
that customers can identify their products easily and quickly, the
development and marketing teams in these companies might create a
style guide for products, packaging and promotional material. That way,
the company presents a unified image to customers. For example, a
personal care product company might use the same color and fonts in all
products, logos and the company website. As the company gains
customers, the brand image might become a symbol of quality to users.
Related: What Is Product Marketing? Definition, Tasks and Phases
Consumer feedback
48 | P a g e
Customer service representatives from product-oriented companies
might ask current customers for their opinion of the product and brand,
which can help the company's developers improve the product.
Companies might also solicit feedback from customers about new
products or services. For example, a company that makes high-quality
hiking shoes might conduct a survey to find out whether their current
customers might be more interested in hiking sandals or rain boots. As
these companies rely on customer loyalty, they might use these new
products to encourage their current customers to buy more merchandise.
Long-term planning
Product-oriented company leaders might set long-term goals that allow
their products to grow in popularity and attract customers. These
companies might take a longer time to become widely successful than
companies that focus on sales or other metrics. For example, a new
watch company's leadership board might set lower growth goals for the
first few years of its operation as the company releases its first line of
products. Once the company establishes a successful product line,
leaders might increase growth goals.

49 | P a g e