The barriers of entry that could possibly affect the market in which my event planning business operates is brand loyalty and economies of scale.
Economies of scale are a barrier to entry that affects the market in which my business operates as well. Moreover, I see economies of scale as a barrier because when many event planning businesses start out they are not able to fully produce goods and services on a larger scale right then and there without incurring many large costs. However, when they have been around for a while and have gained substantial amounts of business then they essentially are able to produce more of their goods/services on a larger scale with less input costs, therefore, economies of scale are said to be reached. So,
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So, furthermore, it is quite easy to enter and exit the market however, brand loyalty can influence how well your event planning does in the industry. Thus, consumers tend to look at the level of knowledge, expertise, and experience many event planning businesses entails in order to differentiate one from other competitors. Therefore, you tend to see that many consumers generally base their decisions and choices on if they have utilized the services previously, does the company have a great reputation, is the company known for exceptional services and events, and does other consumers speak highly about the business. All these factors contribute to how well a company excels over its competitors in the market. Moreover, these attributes and qualities brings forth and bridge brand loyalty among its consumers and potential consumers looking for quality services and companies within the event planning business and causes many event planning businesses to stand out and reign supreme over others. All the more making it harder for other incoming event planning business to excel due to others in the industry have the upper hand when it comes to knowledge and expertise according to many …show more content…
In addition, this barrier to entry essentially results from many profitable event planning businesses incorporating trust, reliability, credibility, and responsibility. Besides, advertising is a very keen objective that serves a grand purpose in brand loyalty. Likewise, many established businesses have more opportunity and awareness through advertising. The role of advertising serves as a barrier to entry within my market in that it strengthens buyer preferences for the products/services of recognized existing firms (Thomas & Maurice,
This organization belongs to the oligopoly market structure. The oligopoly market structure involves a few sellers of a standardized or differentiated product, a homogenous oligopoly or a differentiated oligopoly (McConnell, 2004, p. 467). In an oligopolistic market each firm is affected by the decisions of the other firms in the industry in determining their price and output (McConnell, 2005, P.413). Another factor of an oligopolistic market is the conditions of entry. In an oligopoly, there are significant barriers to entry into the market. These barriers exist because in these industries, three or four firms may have sufficient sales to achieve economies of scale, making the smaller firms would not be able to survive against the larger companies that control the industry (McConnell, 2005, p.
A particular market executive said that the benefit of advertising to the company comes into play when company is giving ad campaign in order for the stockholders and investors to maintain faith in the company and keep the capital rolling in, to produce the products. Some marketers believe that their ads do not affect the consumer, but does affect the ways in which they are viewed by distributors and retailer (Schudson 2). Sales people do not want to sell products that they have not heard of before, and whether the advertisements influence consumers or not, the sales people believe that they do, which causes retailers to have that product in stock to sell. So even if the ad does not influence the consumer, as long as the ad can influence the investors, salespeople and retailers, the company will be prosperous. This produces product availability and that will shape the consumer
...price, it also allows for them to increase their sales and enter into new markets, which in turn would help to increase their profits.
Armstrong, Gary, and Philip Kotler. Marketing: an introduction. 11th ed. Upper Saddle River, NJ: Pearson Prentice Hall, 2013. Print.
Barrier to entry: - High barriers to entry, to a certain extent help understand the risks involved in operating in the aircraft industry.
Examples of factors that affect a business’s buying decisions are economic conditions, regulations, government policies and the social environment. Businesses must also stay ahead of the competition, this can be done through product development, utilizing new technologies or even partnering with established brands. One way in which marketers can encourage a business to purchase a particular brand/ service is to offer some sort of partnership or sponsorship opportunity. A partnership between a business and community organization can benefit both
The hotel industry performs within a saturated market, driven by customer loyalty and competitive pricing to stand-out. This competitive nature makes it extremely important to capitalise on strengths while improving on
The several factors that make it very difficult for the competition to enter the soft drink market include:
When a business aims to be as successful as possible in selling its products and services, it must examine in detail whether or not the products will be attractive and necessary; if the price is optimal; if the product is being distributed in the best locations; and finally, how interest and awareness can be created for the products. In order for a business to target all of these elements at the right people at the right time, it must employ the right type of marketing mix: Product, Price, Place and Promotion.
New entrants to an industry, with a desire to gain market share, will put pressure on prices, costs and capital needed to compete. It can affect the profit potential.
Nowadays, advertising is a very big business. Very often is the major means of competing among firms. Furthermore, supporters of advertising claim that it brings specific benefits for consumers.
The threat of new entrants is moderately strong. Incumbents do not strongly contest entry of newcomers, but existing industry members are consistently looking to expand their geographic reach and offer a broad product assortment. Brand awareness and customer loyalty are high and greatly important i this industry.
According to Shimp (2007), there are five important factors which determine the purpose of advertisement in terms of marketers’ communication with consumers. He listed these five factors as follows: “(1) informing, (2) influencing, (3) reminding and increasing salience, (4) adding value, and (5) assisting other company efforts.” (p.246). To clarify that, the first most important aspect is informing people which means company needs to enhance the awareness of the consumer about their products by mentioning its advantages and features. Advertising also affect the products in two ways. Firstly, by basic demand, which build consumer desires for old products of the company and secondly, refers to a new brand of the company. In addition, effective advertising can retain consumer’s mind fresh about the image of a brand which develops the trace of the memory where consumers have to choose between two or more products. Moreover, it may change the product quality, create new, well-designed and elegant product and change consumers view towards the product. Lastly, by effective advertising program, company may save money and time as s...
Advertising lies in the Promotion part of Marketing Mix, but it applies to all the other P's as well. Promoting one’s business is the key ingredient to making one’s business successful. Promotion, along with a great product, key placement, and a reasonable price, will help a marketer work his way to the top. Promoting does not mean leaving his advertising up to the word of mouth of his current customer.
The modern customer wants much more than a pitch when making purchase decisions or evaluating solutions. Events offer a unique opportunity for them to interact with brands to get the best sense of a company’s focus, personality and perspective.