The third step of your marketing plan is to complete a detailed micro- and macro-analysis of your industry segments and competitors. You also need to develop a mastery of Porter’s Five Forces model and its relation to the competitive intensity and attractiveness of an industry.
In a 4–5 page APA style paper (12 point font, double spaced, with one inch margins), apply Porter’s Five Forces (Arline, 2015; QuickMBA.com, n.d.) model and address the following areas:
Porter's Five Forces
· What is the current environment of your industry? (Rivalry)
· Who are your suppliers, and what is their power relative to your firm?
· What is the power of your consumers? (Know the buying process for these target customers. What are the key decision factors? For example, some customers are more sensitive to price than others, some segments are more concerned about quality than price, and some care most about availability and convenience. In each case, those customers are willing to pay to realize the desired benefits.)
· Does your industry have new entrants? How easy is it for a new company to move into your market?
· Are there substitutes for your products or services?
Provide a basic description of each target segment that includes attributes that characterize the segment, such as number of potential customers, annual growth rate, annual spending, and market value. The more detail you include, the better.
Needs and Requirements
The best marketing always focuses on customer needs. Why do they need your product or service? What is going to make them buy? Don’t get trapped into merely marketing what you have when you should be identifying a customer need and working toward fulfilling it.
What are the standard channels of distribution for this customer segment? How are they different from other segments? This is especially important for product businesses marketing through channels, but in all cases you need to know where your customers go to satisfy the needs and requirements you’ve identified.
Keys to Success
What factors make the most difference to success or failure with this market segment? Key factors will vary between segments, and may include price, value, availability, image, features, financing, upgrade or return policies, and customer service. List the three or four most important factors.
At least 2 of the 4–5 pages should be dedicated to the five forces. Include at least 5 sources from the university library resources or the Internet that are different from those included in the Weeks 1 and 2 assignments. You may use diagrams, charts, or tables to help support your research.