Porter s five forces The method for examining the

Porter’s five forces The method for examining the competitive environment of a market

Threat of new entrants § § Strong brands Spend on plant and machinery Legal protection Control distribution channels

Bargaining power of customers § Merge or take over buyers § Tie consumers in

Threat of substitutes § Patents and copyrights § Focus on ensuring anti-competitive behaviour

Bargaining power of suppliers § Vertical integration § Range of suppliers

Competitive rivalry § § Price wars push prices and profits down Collusion. But cartels are illegal Innovation Marketing is trying to prove that your product is better than the other § http: //www. youtube. com/watch? v=ZSa. Gu. N CUCWs

Market research § Collection of objective data about the market, competitors and consumers § 2 categories: - primary and secondary § Primary means directly from cunsumers gathered by you § Seconary means using someone else’s, but it might be too general and not current

Quantitative market research § § Random sample e. g. from a voting list Stratified sample e. g. men who shave Cluster sample e. g. restaurant in local area Snowball sample e. g. social network But 15 of 20 is not 75%. Confidence level must be acknowledged

Qualitative market research § Looks in more depth for detailed view of consumers § Interviews and questionnaires § Expensive but shows processes behind buying decisions

BIAS § Leading in a certain direction § Phrasing TECHNOLOGY § Internet means easier and cheaper to carry out But need an incentive § loyalty card in supermarket to target specific group http: //www. youtube. com/wat ch? v=3 E 3 m. EKNuqu. Q Alexei Kabanov