Challenges of Market Environment

• Challenges of Market

  • Competition
  • Shortage of Suppliers
  • Changes in consumer behavior
  • Demographics and Psychographics
  • Socio-Culture Factors
• Competition

  • sell similar substitute products
  • can't match price/quality> lose customers
  • demand is not high enough to support the supply of the same goods/ services
  • Dissatisfied customers can damage the reputation and threaten the future of the business
• Shortage of Suppliers

  • Raw materials needed to meet demands
  • Business depends on supplier
  • Right time, quantity, quality, price
  • Imported goods may not arrive when the country of origin has transport/political problems
• Changes in Consumer Behaviour

  • A business is dependent on its customers to purchase its products
  • Economic conditions
  • Consumers are influenced by many factors and are mostly unpredictable in their buying behaviour.
  • challenges include keeping up with changes in consumer tastes and demand by doing research
• Demographics

  • Population stats
  • Age, Gender
• Psychographics

  • Lifestyle and Behavior
  • Attitudes, interests, opinions
• Socio-culture Factors

  • Language, custom, income levels, preferences of culture
  • Affects production and marketing> NO offensive marketing
  • Shape way people live, work, produce, consume
• Overcome competition

  • Unique/differentiated product
  • personalised services> responsive to customer need/want
  • Priced lower than competitors
  • High quality
  • Positive business image
  • improve customer service
  • marketing campaigns
  • low cost-extras >credit terms
  • well trained and dedicated employees