Marketing threats are always big challenges for business world. Competition in business and competition in marketing is inevitable. Nevertheless the marketers must face the many dimensions of threats and the associated challenges for marketing in order to survive in the competitive business world.
Threat of Market segment rivalry
Market segment becomes vulnerable and volatile. Competitors appear to be strong and aggressive. The situation gives rise to challenges relating to frequent pricing of products, new promotion activities and introduction of new products and services. The operation of marketing activities under this challenging situation becomes more expensive and harder.
Threat of overcapacity
In this case many new entrants in the market segment produce overcapacity. This situation hinders the normal and expected marketing operations and profitability of the business thus producing a new challenge for the marketers.
Threat of substitute products
The prices and profits in this case tend to fall significantly. This situation puts a cap and limitation on prices and profit. This appears to be a big challenge for the marketers to survive in the market.
Threat of buyer’s growing bargaining power
More varieties of similar products are available. The buyers become more prices sensitive. The buyers have more options and choices. This challenge requires marketers to become more innovative and selective in product development and introduction in the market.
Threat of supplier’s growing bargaining power
In this situation the suppliers become more powerful when they are organized and a few substitutes are available. This challenge may be faced through choices of multiple suppliers.
The marketing threats and challenges seriously limit the productivity, marketing operations as well as the profitability of a business. Appropriate steps must be taken to assess and face these threats vis-a-vis marketing challenges in order to survive successfully in any business.