Learn how SMEs can use Porter’s 5 Forces to assess marketplace viability when planning
Right now, Porter's 5 Forces is the most useful tool for owners and managers to stay one step ahead of the competition in a challenging market. The Porter's 5 Forces model has always been popular with SMEs in particular, looking to invest for growth and manage risk to their limited resources.
Earmarked as the best marketing model to help small businesses analyze the competition in the marketplace, balancing these 5 forces is a must for your 2021 marketing action plan.
What are Porter’s 5 Forces?
Porter’s 5 Forces is an analytical model that helps marketers and business managers look at the ‘balance of power’ in a market between different organizations on a global level, and to analyze the attractiveness and potential profitability of an industry sector.
Threat of substitute products
Bargaining power of buyers
Digital Marketing Optimization is transforming recession marketing strategies. These 5 tactics for managing customer experience will set you apart from your competitors
Surviving this recession is all about, you guessed it, your customers! As we have seen clearly in 2020, being able to anticipate and respond, fast, to changes in the market can mean the difference between make or break in a challenging environment. And, when it comes to managing customer experience, haven't we all seen some rapid changes?
"Recessions inevitably lead to changes in consumer spending and demand for products and services."
- Dr. Dave Chaffey
As Dr. Dave Chaffey asserts in our recession-beating marketing tactics for growing your business guide, changes in consumer spending require marketers to 'prioritize marketing activities with the biggest potential'. After all, to survive this recession, marketers need to make strategic decisions to outpace their competitors and acquire and retain valuable customers.
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What needs to go into a marketing communications action plan to survive a recession?
In March 2020, we saw global brands like Apple, Nike and Starbucks closing stores around the world and posting Coronavirus advisories to their websites and social networks. Since then, many businesses and individuals have seen their fortunes transformed by the COVID-19 pandemic and following recession.
By May, we saw many countries moving from lockdown to re-opening some businesses, with new measures in place. But this wasn't enough.
By mid-June, the impending global recession had been confirmed, the worst economic hit since WWII. This forecast by the World Bank demonstrates a GDP drop in 2020 for all regions, Latin America and the Caribbean being hit the worst and East Asia Pacific the least.
To help consider the priorities and options from…