The marketing concept has now changed dramatically over the last few decades, and recently the focus has increasingly moved to the customers (versus products and selling) marketing globally and the various technological issues that have an impact on the market. In addition, there is a renewed emphasis in marketing on creating and innovating with new and better products and services rather just competing against other firms and following the marketing patterns established by competitors.

Porter’s 5 forces model of competition

Marketing is facing challenges in the 21st century to meet up the following:
1. Threat of the new entrants – it is the ratio of the new entrants in the industry; and greater the ratio is, greater will be intensity of competition.

2. Bargaining Power of Buyers – When the competition gets intense and the number of manufacturers are greater, the buyer have more options for product switching over, this will increase the buying power of buyer.

3. Threat of Substitute – As obvious from the term greater the threat of new entrants, results in greater competition and so the number of substitutes increases.

4. Bargaining Power of Suppliers – Greater the number of the suppliers, will provide the stronger buying power to the manufacturer / customer and vice versa.

5. Rivalry Among Competing Firms in Industry – the large number of the manufacturers and similarly the greater number of the product variety increases the rivalry amongst the competitors.

The Information Technology Revolution

The information age, particularly this era of the internet is creating a major impact on the direction of marketing science and practice. The flow of the digital information requires connectivity intra nets, extra nets, and the internet are they key drivers of the new economy. The boom in computer, telecommunications and the information technology and the altogether merging of these technologies, is to have a major impact on the way the businesses tend to bring value to their customers.

Connections with the Customers

Today, many marketers are realizing that they do not want to hit up at macro level; instead they are focusing on a very niche and micro level where more profitable customers are targeted. Marketers have responded efficiently by moving to more segmented marketing where they are successfully targeting the sub markets and even individual buyers.

Connections with the Marketing Partners

Connecting inside the company – traditionally, marketers have played the role of intermediary, charged with understanding customer needs and representing the customer to different company departments, which then acts upon the needs. Connecting with the outside partners – most companies today are networked companies, relying heavily on the partnerships with other firms.

The Changing World Economy

Even as new markets open to rising affluence in such countries as the industrialized specific rim, poverty in many areas and slowed economies in previously industrial nations has already changed the world economy. The new economy is anew facet of challenges and opportunities for the marketer. The most important point is that the new economy assuredly places the customer more firmly in the driver’s sear for decisions on her/his product and service choices.

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