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sanjay-nagiTHMB.jpg Lack of awareness makes SMEs anti internet: Sanjay Nagi

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Saurabh Gupta | 14 Apr, 2009
All businesses mainly small and medium enterprises (SME) are unaware of the potential of the internet, Sanjay Nagi, Principal Consultant, Market Insight Consultants, told SME Times.
Excerpts of the interview...

In your opinion what is Internet marketing? And why is it important for businesses?
Sanjay Nagi: The internet has emerged as a fairly low cost medium of customer outreach from the supplier's point of view and knowledge from a customer point of view. It offers the potential customer much more than other passive media like banners/ press/ or even television.

Internet marketing is about using the power of this active medium to reach out and inform customers about the company's products and services, interact with them to respond to queries and even transact business depending on the nature of business. While most media are broadcast based and only provide reach out, the internet even enables sales transactions.

The other benefit of internet is the global reach out potential; as opposed to other media that are local/ national, the internet is a global media. Finally the internet enables all these at the fraction of costs that are applicable in traditional media and hence is becoming popular and important for businesses.

Who can take benefits of the Internet marketing?
Sanjay Nagi: All businesses - whether SME or big corporate can use the internet for their gain. Exporters are particularly disposed towards using internet. Finally portals that desire to sell are the most important customer segments as well.

It has been seen that small and medium enterprises (SMEs) in India are not aware about the benefits of Internet Marketing. Do you think that online marketing strategies can help small industries too?
Sanjay Nagi: SMEs are usually short term in their thinking and may not be easily able to accommodate changes in their business approaches and hence do not use internet as effectively as they can. There are fears of giving out too much information to competitors and that is another reason they do not adopt the internet. In many cases there may be lack of awareness as well. SMEs can very well benefit from internet and I believe  the government should come out with a campaign and some special tax incentives for SMEs through chambers like FISME.

Marketing is an expensive exercise and availability of money or liquidity is a challenge for most SMEs in India. In your opinion how expensive is Internet marketing compared to traditional or direct marketing?
Sanjay Nagi: Internet marketing is extremely low cost which is one of the main benefits of internet. Say a combination of own website, listing in key directories and participation in online market places/ portals would not cost more than a few lakh in a year and definitely would be more economical than media like press/ TV.

If Internet marketing is a cost-effective strategy then why it is not so popular? What are the challenges in the way of Internet marketing?
Sanjay Nagi: Lack of awareness and inertia to accept the new are the main barriers. The other barriers are fear of divulging information and finally the credibility of the providers. Most suppliers make extensive promises and then they do not fulfill their promises - as a result the customer who has just adopted internet, faces hardships and loss of money, that makes them ANTI internet. The suppliers need to be regulated to ensure that customer promises are maintained.

Do you agree that Internet marketing is the best way to market your products? Please explain.

Sanjay Nagi: As already explained internet not only informs the customer, like any other media, but goes beyond into assisting in the final sales transaction as well. Therefore the potential of the internet is much more than other media.

In your opinion, during this worst phase of economic meltdown, which one is the best marketing technique specially for small industries (SMEs) in India?
Sanjay Nagi: Tough times never last, tough people do! So businesses should gear up their competencies during this period and become stronger. The healthy times will come back again and SMEs should do cost cutting and also build competencies to survive and grow. 
 
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