issues related to marketing
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ISSUES RELATED TOMARKETING
IN SMEs
BY:POOJA SHARMA
SMRITI KHANNA
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Marketing
Marketing is "the activity, set of institutions,and processes for creating,communicating, delivering, andexchanging offerings that have value forcustomers, clients, partners, and society
at large.
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Marketing in SME
Manufacturer Consumer
Manufacturer Retailer consumer
Manufacturer wholesaler Retailer
consumer
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ISSUES RELATED TO MARKETING INADEQUACY OF FUNDS
LACK OF PROFESSIONAL KNOWLEDGE
UNFAMILIARITY WITH EXPORT ACTIVITIES
LEGAL ISSUES
IRRELEVANT MARKETING STRATEGY UNFAIR COMPETITION
REDUCED PROTECTION
LACK OF MODERN SCEINTIFIC MARKETINGMETHOD
TRANSPORTATION ONLINE MARKETING
OTHER ISSUES
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Inadequacy of funds
SMEs cannot afford to spend as heavilyas a large unit does on marketing
because of their weak financial base.
They cannot meet the expenses ofadvertisement which creates the problemof customer awareness .
Most of their products are sold throughword of mouth publicity and direct selling.
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Lack of Professional Knowledge
The sector is mostly consisting of family runbusinesses which generally employs family
members at various positions of hierarchyin the business. Some times these peoplelack professional knowledge and wisdomneeded to market their products and
services.
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Unfamiliarity with export
activities
The SMEs particularly in the field of exportslack in awareness about the institutional
support in terms of provision of foreigncurrency payments and other relatedactivities of imports and exports.
This is resulting in of less percentage of
utilization of the available opportunities inthe overall exports and related activitiesby these institutions.
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Legal Issues
One problem of marketing for a small-scale business is the issue of certification.
Whatever your product, it is subject tolaws and regulations regardingconsistency, purity and the like.
The impact of the agreements underWTO- The agreements under TRIPS calls for
tighter patent laws through regulation ofintellectual property rights which isbecoming a costly affair to the SMEs.
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Irrelevant and Inconsistent
Marketing strategy
They dont follow the relevant marketingstrategy and end up with wrong
marketing strategy applicable to thesegment or the total market.
Most of the SMEs jump from onemarketing strategy to another for no valid
reasons. This confuses the prospectivebuyers and also creates a low opinion ofthe company and its product line.
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Unfair Competition
The resources required for taking care ofthe various marketing aspects are
obviously lacking with the SMEs withwhich they are not in a position tocompete with large well establishedbusiness houses and have to face unfair
competition.
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Reduced Protection
Reduced protection has already loweredthe SMEs competitive strength. The sector
may face dumping by foreigncompetitors like China . The cost ofantidumping investigations may beprohibitive for SMEs.
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Lack of modern scientific
marketing method
Still in India we have many SMEs whichare not well equipped with different
software automations and variousmarketing techniques which endows theenterprise with a competitive advantage.
Example. Supply chain management
software.Potentious marketing concept
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Transportation
Majority of the SMEs are unable toparticipate in the Industrial exhibitions and
Expos organized nationally andinternationally. This is due to the high costassociated with transportation andtraveling costs of the entrepreneurs
themselves.
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Online marketing
Several enterprises have the notion that
one has to be a big company to enterthe online arena to market their products.Most of the SMEs are yet to realize thatonline marketing can and is the only be
the cost effective, measurable andtargeted advertising channel.
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Other issues
Lack of standardization
Poor Designing and quality
Lack of quality control
Poor bargaining power
Ignorance of potential markets
Distribution contacts Lack of service after sales
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SUGGESTION FOR IMPROVEMENT
1. There must be some programme onmaking these organisations aware of the
modern business tools. SMEs can begreatly benefit if they recognize thepower of internet for exploring andmanaging the market online.
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2. They should develop their websites in
English language for spreading their reachbeyond India. Bodies such as CII, Trade Indiacan take up awareness programmes for themin systematic way and monitor the changes.
3. SMEs cannot do conventional marketingbecause of the limitation of resources. Theyneed to think beyond conventional marketingpractices of large companies and search foralternative marketing approaches such as
personal contact networks, socialnetworks,B2B portals, E-Commerce tools,Business Networks and Industry and Marketingnetworks.
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4. SMEs should realize that on the Internet, a
big company will have the same chances asan SME to make an impact on the buyer.With the correct techniques any SME canmake it to the top leaving behind even the
biggest of the companies.
5. Indian SMEs have to take note of technicalbarriers to trade(TBT) in view of technical
standards set by developed countries.
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6. Good planned strategic approach, ifadopted by SMEs can help them toovercome many of the barriers andobstacles that they face now.
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Institutional support
Many forms of assistance are given from theinstitutions including
Assistance in expansion of markets includingGovernment purchases, reservation of certainitems for government stores, price preferencesand support in joint tendering for governmentpurchase contracts.
A Market development scheme is speciallyoperated by the Ministry of Small and MediumEnterprises (MSME) to encourage exports fromthis sector.
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1.NSIC
2.SSIB
3.SIDO
4.SIDBI
5.SISI
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As a part of the comprehensive policypackage for promotion and development ofMSMEs announced on 30th August, 2000, itwas decided that the Small IndustriesDevelopment Organisation (SIDO) shouldhave a Market Development Assistancescheme similar to the one obtaining in theMinistry of Commerce.
This scheme will operate in addition to theSIDO scheme for participation in theinternational fairs will cover all activities for
which direct assistance is given under theexisting scheme MDA Scheme of the Ministryof Commerce.
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SIDBI operates a scheme for directassistance for financing activities relatedto marketing of the products of MSMEsector.
SISI provides aid regarding promotionalactivities and information about trading.
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Conclusion The nature of marketing is dynamic so does
the problems associated with the marketing.
SMEs have to broaden their horizon in this eraof globalization. In SME sector, particularly forthe area of marketing, government shouldlaunch programmes which provideawareness about E- commerce tools and itsproper installation.
SMEs need to imbibe these technical upgradation in order to gain a competitiveadvantage.
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