SME Times is powered by   
Search News
Just in:   • Adani Group to invest Rs 57,575 crore in Odisha  • 'Dollar Distancing' finally happening? Time for India to pitch Rupee as credible alternative: SBI Ecowrap  • 49% Indian startups now from tier 2, 3 cities: Jitendra Singh  • 'India ranks 3rd in global startup ecosystem & number of unicorns'  • LinkedIn lays off entire global events marketing team: Report 
Last updated: 27 Sep, 2014  

Marketing.9.Thmb.jpg SME marketing: Avoid a faulty approach

Marketing.9.jpg
   Top Stories
» 49% Indian startups now from tier 2, 3 cities: Jitendra Singh
» 'India ranks 3rd in global startup ecosystem & number of unicorns'
» Tripura exported over 9K tonnes of pineapples in 2 years
» CPI inflation eases to 6.71% in July, IIP falls to 12.3%
» Rupee depreciates 12 paise to close at 79.64 against US dollar
Bikky Khosla | 07 Feb, 2012
Marketing is the toughest challenge in any business, and when it comes to small and medium enterprises (SMEs), this is the area where they lack most. Resource constraint is cited time and again as the underlying cause, but I think there is another major challenge to deal with – it is their myopic vision about marketing.

Although our SMEs go for some form of marketing or other, their conception is, in general, too limited and substantially different from that proposed by academics or adopted by large firms. Informal organizational structure, resource constraint, high level of risk aversion, and lack of marketing knowledge and specialised expertise push most of them toward adopting a marketing approach that is loose, unstructured and spontaneous. This, in turn, leads to decision making in a haphazard and chaotic way, and as a result, the marketing results usually suffer.

To some extent, however, the simplicity of this marketing approach helps SMEs fill the voids arising from the approach's limitations. For example, high level of flexibility resulting from their informal organizational set-up helps SME owners make most decisions on their own, making the decision making process highly efficient. Also, the reactive nature of their marketing approach assists them to respond quickly to current opportunities and circumstances. In fact, more often than not, these benefits have remained key factors for our SMEs to energize their marketing in a simple but cost-effective way.

Given this phenomenon, should small entrepreneurs continue with their primitive conception of marketing? I think, they shouldn't. Due to some emerging drivers of market change in the recent years, particularly with increasing competition from global players and diffusion of IT in business, this traditional SME marketing concept has lost its relevance to a great extent. In this scenario, Indian SMEs can no longer afford to cling to this somehow-useful approach.

Of course, there is no doubt that resources, particularly those dedicated to marketing, are often tight in SMEs, but instead of continuing to complain about it, they should make every effort to adopt a marketing approach that suits today’s growing challenges. It is crucial for them to get rid of the misconception first, and then broaden their marketing knowledge and develop a marketing culture that emphasises innovation and risk-taking.

And fortunately, this can be done without spending much.
 
Print the Page Add to Favorite
 
Share this on :
 

Please comment on this story:
 
Subject :
Message:
(Maximum 1500 characters)  Characters left 1500
Your name:
 

SME marketing: Avoid a faulty approach
sidharth Bhardwaj | Thu Mar 29 09:53:23 2012
Sir, due to close working with the SME's I have seen that they still have the mind frame that it is more of relationships they build with the client and then become dependent on those clients which they have. What you say is still valid, but an article on how to chose your promotion, marketing partner would be a great idea. There has to be some basis on what the SME can decide that this kind of promotional partner would benefit them more. Unfortunately with the word competition we understand there is opportunity and let us grab it. But, there should be a system of partnering and specialization of trades for promotions in private sector, as the private sector is result oriented.


Building Trade Markets
Dinesh and Gail Rao | Fri Feb 17 00:29:09 2012
I am a 4th generation Canada citizen married to a wonderful Mumbai, India man.Long time friends first.We plan on developing markets in both India and Canada. We have begun a web site. We used two articles you wrote because we feel, know you are bang on in your views. IF you have any objections we will remove the articles. We do give credit to yourself for those. Kind Regards, Dinesh and Gail Rao


Marketing efforts by SMEs
Hitesh Joshi | Tue Feb 14 09:16:35 2012
I agreed that MNCs invest larger on Marketing which SMes can not afford. Thus the idea of freelance marketing option has already generated and duly implemented. SMEs must go for freelance marketing in Govt segment where retired officers cater marketing efforts on commission basis which is quite low compare to the emerging scope of growth of business. I strongly recommended that the SMEs must go for such freelance marketing concepts and tradeindia or MSME associations must organize seminar on this emerging and potential scope of business growth.


Marketing right
Anju Agarwal | Sun Feb 12 04:46:14 2012
Marketing must be for right product to right customer.


Marketing stratagy for SMEs
D Prashant | Sat Feb 11 11:35:33 2012
SME is either a proprietor or a partnership concern, basically with one man show, for all decisions. This generally happens, due to huge investment on one side and the worry that nothing should go wrong, right from the beginning so as to avert the losses. This process is maintained for long, having seen some profits on balance sheet. But the status of the organization doesn't change from a proprietor or a partnership firm. S M E's need to accept the professional approach for future with proper system that would enable the SME to run on its own. This has been proved in the industry that any organization, which has adopted a proper system to operate for itself, is giving the expected rewards for its own. Thus, SMEs need to change their own attitude, for the best expected rewards.


SMEs do not have clear inputs on effective marketing
Nilay Narain, CEO Aedicon Engineering Resources Pvt Ltd | Sat Feb 11 05:36:21 2012
Yes. The article is very relevant but still as SMEs do not have clear inputs on effective marketing nor we know the firms which undertakes marketing assignments for the SMEs. It is very complex to adopt Straight Marketing rules as most of SMEs struggle due to its positioning as far as to attract best of the best lot in the business.


SME Marketing the toughest
Ashok | Sat Feb 11 04:22:10 2012
You have highlighted the problem which everyone is aware of. Please suggest solutions " Without spending much "


hello
Engineer Nabil Yassine | Fri Feb 10 19:13:20 2012
Pls request to give my email address to companies which interested in supply us with electrical power ,lighting ,control systems , solar energy units ---- we plan to have a branch in dubai ----- pls the contacts should not have an agent in egypt or dubai ..... Engineer Nabil Yassine


The pitfalls of faulty marketing
Marketing | Fri Feb 10 11:31:39 2012
The pitfalls of faulty Marketing is clearly delineated by the Editor.Although this is the age of Big firms there are a number of consultants who offer valuable services in various functions and particularly in Process , People and Product-Market. Many a Marketing personnel have branched out on their own after having acquired specialised exposure in various sub functions in Marketing and offer their Measurable services at a reasonable price. One has to only explore the Market to locate such bright Marketeers since they are available in most of the metros and even in smaller cities. It is pertinent to mention here are that on account of higher degree of specialisation of various sub functions within Marketing , these people moved out of Cushy jobs as they were looking forward retain their holistic Marketing approach which was getting to be rare in larger organisation Regards Krishnan manage.process@gmail.com perfectplacer@gmail.com mark.counselor@gmail.com markad.brand@yahoo.com


Marketing
Rohit | Fri Feb 10 06:19:03 2012
The article gives some pointers on marketing approach. The key message or options to overcome the marketing challenge is not coming out clearly. It would be helpful if you can share what are the various marketing options an SME should explore.


How it can be Done?
Jayant Kumbhalkar | Fri Feb 10 04:43:19 2012
The article captures quiet a true picture in Indian SMEs today.Thanks. Can you please write, by what ways in practical the necessary change can be brought out? The SME Marketing methods being practiced by now are evolved by the strong force of situation they are into not by any misconception. For them there is no way to opt any luxury of time, money and resources for decision making. In fact without abundance of these resources no so called ideal marketing can be done. Realising business in consuming low resources is ultimately a gain. What I feel SME can do is strengthen their following team by allowing reasonable resources and imparting knowledge , as they grow up. As long they are SMEs their Mkt.team has to work efficiently using resources judiciously. ...Any Way Out Please give example.


Toughest Challenge?
Greg | Wed Feb 8 17:29:52 2012
There are plenty of tough challenges in Business but marketing is not near the top. Academics and MNCs have the luxury of speculating within either a monopolistic environment or one in which the keys for success have already been defined. SMEs do not, and are searching for that place where some security can be found. Coming up with a compelling product offering and finding the right people to work through it with you are both tougher challenges than the marketing. SMEs all around the world know that the kind of formalized book learning espoused in the article is to be shunned because most SMEs can't afford the failures that go along with it. That's not to say that we disrespect marketing but its all too easy to kill the business with a myopic and academic view of what marketing is rather than a practical view of what it is not.


Want to reach customers in cost effective manner
Bhavin Shah | Wed Feb 8 05:59:36 2012
We are small IT company with limited resources but a set of products ready to be offered and implemented sooner. We need to reach maximum nos of potential customers in very cost effective manner. Please guide us on this aspect and suggest the appropriate marketing tools. Our target customers would be SME companies having about 10-20 users of IT in their organization and a appetite to spend about Rs. 50K to Rs. 2 Lakh on IT requirements and mainly in MIS reporting needs. Kindly reply to me on bhavin@yesha-it.com


Pricing is the problem for SMEs
Balakrishna Nuthakki | Tue Feb 7 15:16:02 2012
The toughest part of marketing is deciding the right price for the product. In the present scenario with lot of MNC companies in competition we have to offer more attractive prices and still maintain decent margins. Prices can be made attractive when manufacturing in quantity but we cannot afford to keep huge inventory in factor. 

  Re: Pricing is the problem for SMEs
Hitesh Joshi | Tue Feb 14 09:19:46 2012
There is MARKETING INTELLIGENT REPORTS which MNCs get easily with their track. SMEs must use such services as Business is the War and only winning is the singly option to get. Regards


 
  Customs Exchange Rates
Currency Import Export
US Dollar
66.20
64.50
UK Pound
87.50
84.65
Euro
78.25
75.65
Japanese Yen 58.85 56.85
As on 13 Aug, 2022
  Daily Poll
PM Modi's recent US visit to redefine India-US bilateral relations
 Yes
 No
 Can't say
  Commented Stories
» GIC Re's revenue from obligatory cession threatened(1)
 
 
About Us  |   Advertise with Us  
  Useful Links  |   Terms and Conditions  |   Disclaimer  |   Contact Us  
Follow Us : Facebook Twitter