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Marketing
is all about mutually satisfying exchange relationships for which the
catalyst is the producer's attempt to define and satisfy the customer's
need better.
Neglect
of competition is one of the major reasons why marketing plans fail. When
one examine the nature of competition, you can find there are five forces
that shape competition.
Most
competitors within an industry are jockeying for positions within a domain
dictated by external powers. Two of the powers, suppliers and customers,
are in the value chain which runs from raw materials to final consumption.
Some of the players in the various
industries in Malaysia are aggregated here.
A
powerful supplier can reduce an industry's profitability by raising prices
or reducing the quality of purchasing goods and services. The other two
dimensions limiting the competitive domain are the threat of substitute
products or services and the threat of new entrants.
Firms
in the industry try to differentiate themselves by having advertising
& promotional strategies to create a brand image or by developing
unique distribution channels like franchising, direct marketing, network
marketing, multilevel marketing to capture loyal customers or by
researching and commercializing new technologies and products.
Alternatively,
firms can use export marketing to enter new
market areas and expand market share.
Our Free Advice on
Marketing Matters
highlight some of these issues.
You
can also get more detail help from our Expert Advice
by subscribing as a Member. In this section, you can get practical tips and
marketing methods on what is multi-level marketing, how to avoid a pyramid
scheme and more ...
If you are not a member yet, we encourage you
to join our Membership and
access to all the benefits and advice from our panel of Experts.
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FINMART
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