Characteristics of SME's Marketing
Characteristics of SME’s Marketing
Marketing is regarded as relevant to both large and small organisations and basic marketing principles are seen to apply to both of them. It plays a significant role for SMEs as it is essential to the survival and growth of the enterprises but in the same time it is the biggest problem which owner-managers face in their business operations.
Chaston (2000) says that truly entrepreneurial firms have a distinctively different approach to marketing which he defines as ‘the philosophy of challenging established market conventions during the process of developing new solutions’. The entrepreneurial marketing process is essentially simple, involving understanding conventional competitors and then challenging the approach they adopt. Marketing activities in SMEs are shaped through a process where competitors, customers, the business environment and the limited resources are taken into account.
There is no clear definition or grand unifying theory of marketing in SMEs – where it has unique characteristics that differentiate it from that of large organisations, rather strategy features of several philosophies that are estimate to fit the best for the business operations.
Marketing practices in SMEs are described as:
Haphazard
Informal
Unstructured and spontaneous
Practices are oftern relate to promotion, selling and customer relationships
Often driven by innovation
Seen to operate close to their customers
Quick response to the changing needs of customers
Flexible
It is, however, suggested that market orientation gives small firms a potential competitive advantage over larger enterprises as they: are closer to customers and able to respond their needs and wants quickly and flexibly are able to share customer information quickly and with fewer modifications, because of less organisational bureaucracy can implement marketing plans quickly, as it is more informal
In addition, small firms appear to have
Marketing is regarded as relevant to both large and small organisations and basic marketing principles are seen to apply to both of them. It plays a significant role for SMEs as it is essential to the survival and growth of the enterprises but in the same time it is the biggest problem which owner-managers face in their business operations.
Chaston (2000) says that truly entrepreneurial firms have a distinctively different approach to marketing which he defines as ‘the philosophy of challenging established market conventions during the process of developing new solutions’. The entrepreneurial marketing process is essentially simple, involving understanding conventional competitors and then challenging the approach they adopt. Marketing activities in SMEs are shaped through a process where competitors, customers, the business environment and the limited resources are taken into account.
There is no clear definition or grand unifying theory of marketing in SMEs – where it has unique characteristics that differentiate it from that of large organisations, rather strategy features of several philosophies that are estimate to fit the best for the business operations.
Marketing practices in SMEs are described as:
Haphazard
Informal
Unstructured and spontaneous
Practices are oftern relate to promotion, selling and customer relationships
Often driven by innovation
Seen to operate close to their customers
Quick response to the changing needs of customers
Flexible
It is, however, suggested that market orientation gives small firms a potential competitive advantage over larger enterprises as they: are closer to customers and able to respond their needs and wants quickly and flexibly are able to share customer information quickly and with fewer modifications, because of less organisational bureaucracy can implement marketing plans quickly, as it is more informal
In addition, small firms appear to have