issues related to marketing

7/28/2019 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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