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Write 8 pages with APA style on Porter’s Five Force in Strategic Marketing. An important method of finding competitiveness is by using the Five Force Analysis devised by Porter M.E. (1985), often call
Write 8 pages with APA style on Porter’s Five Force in Strategic Marketing. An important method of finding competitiveness is by using the Five Force Analysis devised by Porter M.E. (1985), often called Porter’s five force analysis. This will help the management to devise an appropriate marketing strategy to take care of vital issues. Porter divides the competitive environment into five forces of ‘powers’, these are the Power of buyers, power of suppliers, the threat of new entrants, the threat of substitutes, Intensity of rivalry between existing firms. .In fact, the Five Force Analysis is the answer to the problem questions posed earlier and therefore can be stated to be a critical constituent of any purposeful marketing strategy.
Marketing Strategies
The Power of Buyers
Four different reasons influence a buyers’ decision. They are also known as 4Ps as explained by McCarthy (1964). This needs careful study to understand customer behavior.
Product. The buyer is greatly influenced if the product or service is perceived as useful for him. Sometimes it may not be of immediate use but its uniqueness is the attraction. Future valuation is also a decision making factor.
Price. The price is not usually a stand-alone factor. It has to be comparable with other products or services but with weight given to factors like quality and after-sale service. In the case of tenders, it has been seen that the highest and lowest bidders fail and the middle bidder is often successful. There is a play on the mind of the buyer that the middle ground is best for him. He also considers price in the context of the privileges attached to it.
Promotion. The image plays a very important role. Whether it is the image of the product which enhances value or status or the image of the buyer when he acquires a product or service, both factors are extremely important for the buyer in arriving at a purchase decision.
Place or Time of offer. It is of great value to the buyer if a product or service is offered to him at a place and time that suits him. .
