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Market resistance the reasons are called, which lead to a failure of marketing planning on the part of the market.
Emergence
Market resistances express themselves in particular in rejecting customer behavior and strong competition pressure. The reasons are diverse; thus the following reasons were empirically raised:
- Underestimation of costs of conversion with the customers and the extent, in which by the new product existing production procedures as well as available know-how were obsolet;
- wrong estimate of the existing connections between the potenziellen customers and the past suppliers;
- attention lacking of the market structure as well as of restrictions in the potenziellen customer industries;
- wrong definition of the market segment, in which the new product would have exhibited the largest value for the customers;
- wrong estimate of the competition behavior, in particular regarding price competition.
Measurement
For the measurement of market resistances the following variables are consulted:
- Market entrance resistance (resistance against the successful entrance of a newcomer; Market entrance barriers),
- Segment resistance (resistance against a successful treatment of certain segments; Segment working on strategy of the competitors) and
- Purchase resistance (resistance against the purchase of a special product product resistance of a certain offerer manufacturer resistance).
Literature
- Walter, Michael: Market resistances and marketing planning - strategic and tactical solutions by the example of the text processing market, Wiesbaden: Gabler (management and marketing; 19) 1984.
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