Porter 5 forces of competition model
Marketing faces challenges in the 21st century to meet the following parameters:
1. The threat of the new entrants- which is the ratio of new to the industry, and the proportion is higher, the greater the intensity of competition.
2. Bargaining power of buyers – When the competition becomes intense and the number of producers is greater, the buyer has more options for switching product, this will increase the purchasing power of the buyer.
3. Threat of substitutes - the term for the more obvious is the threat of new competitors, results in greater competition and thus increase the number of substitutes.
4. Bargaining power of suppliers - large number of suppliers, provide the strongest purchasing power of the manufacturer client and vice versa.
5. The rivalry between competing firms in the industry - the large number of manufacturers and likewise most of the variety of products increases the rivalry between competitors.
The revolution in information technology
The information age, in particular, this Internet age is creating a huge impact on the direction of science and practice of marketing. The flow of digital information requires connectivity networks intra, extra and internet networks are key drivers of the new economy. The rise of information technology, telecommunications and information technology and the fusion of these technologies is having a big impact on how companies tend to add value to their customers.
Today, many vendors are realizing that they do not want to hit a macro level, but focus on a very niche and micro level, where more profitable customers are going. Retailers have responded by moving efficiently segmented marketing where they are correctly targeted the mortgage markets and even individual buyers.
Connections Marketing Partners
Connection within the company – Traditionally, marketers have played an intermediary role, responsible for understanding customer needs and customer accounts for different departments of the company, which in turn acts on the needs. Connection with external partners – most companies today are networked businesses, the heavy reliance on partnerships with other companies.
The Changing World Economy
Although the new markets open to increased prosperity in industrialized countries like the edge specific poverty in many areas and decreased in the economies of industrial nations has previously changed the world economy. The new economy is a new facet of challenges and opportunities for marketing. The most important point is that the new economy for sure that the customer places more firmly in the driver’s sear decisions about their brother / product and service options.