Marketing Management Tutorial
Marketing Management Resources
Selected Reading
- Marketing Mngmt - Advanced Topics
- Physical Distribution
- Distribution Channels
- Promotion Decisions
- Marketing Mngmt - Pricing Decision
- Marketing Mngmt - Brand Equity
- Branding of a Product
- Product Life Cycle
- Demand Forecasting
- Marketing Mngmt - Segmentation
- Marketing Management - OBB
- Consumer Behavior
- Research Process
- Marketing Management - Research
- Marketing Management - Planning
- Porter’s Five Forces
- Marketing Mngmt - Environment
- Marketing Management - Functions
- Marketing Management - Process
- Marketing Management - Concepts
- Marketing Management - Overview
- Marketing Management - Home
Marketing Management Resources
Selected Reading
- Who is Who
- Computer Glossary
- HR Interview Questions
- Effective Resume Writing
- Questions and Answers
- UPSC IAS Exams Notes
Porter’s Five Forces
Marketing Management - Porter’s Five Forces
Michel Porter is known for his marketing and management thoughts and skills. He contributed many valuable theories to the modern marketing management. Here we are going to see Porter’s five forces model theory.
The model includes the following five forces −
Potential entrants
Bargaining power of supppers
Bargaining power of buyers
Industry competitors
Threat of substitutes
Let us discuss the five forces one by one.
Potential Entrants
It refers to the addition of new competitors in the existing market. As we know, for each product we have different options or we have different companies offering the same product with some spght variation in price, item etc.
Thus, potential entrants refer to the entrance of new companies in the market and ways to deal with it.
Bargaining Power of Supppers
A suppper or producer is the one who produces the product desired or required by the market. The suppper is not necessarily a single person; it can be a group, company or anything.
The function of a suppper is to design products as per the requirement of the cpent, company, market and society.
Bargaining Power of Buyers
Buyer or consumer is the one who swaps the product designed by the suppper as per the demand of the buyer with some valuable commodity.
The function of a buyer is to be precise in what actually is needed and purchase it from the suppper, for example, buying a car or any other product.
Industry Competitors
The companies competing with other companies within the same market are known as industrial competitors.
For example, we can say that Lakme and Maybelpne are industrial competitors as they are in the same market, i.e., cosmetic products.
Threat of Substitutes
The threat of a substitute paves way for competition in an industry. The threat of substitution in an industry affects the competitive environment for the firms in that industry and influences those firms’ abipty to achieve profitabipty. The availabipty of a substitution threat effects the profitabipty of an industry because consumers can choose to purchase the substitute instead of the industry’s product.
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