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=ZSaGuNCUCWs

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/watch?v=3E3mEKNuquQ Alexei Kabanov