Marketing is decisive in developing countries like India.
The prominence of Small and medium enterprises (SMEs) is seen as these are allied with the balanced growth of Indian economy, playing an important role in generating millions of jobs.
Arriving up of SMEs calculations depend upon how well they market their products in this pulsating competitive market. Effective marketing strategies ensure higher levels of income, intake and employment further increasing the standards of living of the people.
Some statistics tell the story:
- India has the second largest number of SMEs in the world e. 51 million.
- It brings on approximately 45% of industrial output, 40% of exports.
- There are 8 million enterprises in various industries, employing 69 million people.
- The sector includes 2.2 million women-led enterprises.
- It creates 1.3 million jobs every year.
- An online presence helps SMEs save 51% higher revenue and 49 % higher profit than those without it.
- The contribution of SMEs to India’s GDP has been growing consistently at 11.5% a year, which is higher than the overall GDP growth of 8%.
“Marketing is not only much broader than selling; it is not a specialized activity at all. It encompasses the entire business. It is the whole business seen from the point of view of its final result, that is, from the customers’ point of view. Concern and a responsibility for marketing must, therefore, permeate all areas of the enterprise”.Peter Drucker , (1954) took an advanced outlook
This case study aims to know various innovative marketing practices at SMEs, and trends.
Marketing is an essential input for the success of SMEs producing wide range of products. Enterprises need to move from traditional marketing to modern marketing.
A few of the aspects adding up to the marketing problems of the SMEs in modern days are:
- Increasing competition
- Consumer awareness for quality goods
- To set up distribution networks for reaching out widely spread markets
- Poor cash flow and Lack of marketing expertise
Today’s marketing demands
- Better dedication
- Quality products
- Enhanced ability to market
- Online Presence
Why innovative marketing strategy is important for SMEs?
SME leaders are gradually adopting a global approach as they face strong competition from big companies and empowered customers. In this scenario, effective execution of a brand marketing strategy for SMEs is vital.
- A reliable marketing strategy to make the way to the minds of customers.
- To confirm that all products and services have a visual uniqueness and good positioning in the segment
- To allow their target audience to identify and distinguish their brands in the muddled marketplace.
What are the Strategies?
Due to the change in the technology and the taste in the customer choices, the SMEs need to adapt the below mentioned innovative techniques for marketing.
- An effective tool being a direct channel
- Can reach to customers without using marketing distributors
- Helps in avoiding dubious costs
- Direct Mails
- Face-to-face selling
- Tele Marketing
- Catalogue Marketing
- Indirect approach, yet possess a long-term outlook
- Flexible and careful in nature
Paper inserts, local magazines, and outdoor medium such as pamphlets, posters, banners, hoardings etc.
- Latest practice
- Brings remarkable revenue growth opportunities
- Helps you spread the wings
- Offers global presence
Websites, Blogs, Social Networking, E-newsletter, Email Marketing, ECRM
How to market yourself digitally?
Digital advertisement can be used innovatively through fusion of the advanced digital solutions in the areas of cloud computing, e-invoicing, social media channels and E-commerce.
Now, the role of digital media in making a purchase decision has gone up considerably. SMEs have to sharply upsurge their focus on digital marketing. It is no longer adequate to have a void presence on the web.
SMEs have to treat their website as their primary asset and offer useful and related content to predictions and customers. It is important for SMEs to create a digital marketing strategy or plan to increase digital presence.
- Helps you understand the importance and benefits of internet in today’s competitive era
- A cost-effective way
- Brings modest and overwhelming reach
- A great way to be in touch with customers
# Mobile Applications
- Works as the service tool
- Convenient for users
- A great way to convey all the updates & changes
Why Customer Relationship Management (CRM) becomes Significant?
The business cannot survive without understanding the importance of CRM.
This can be easily understood by the 80:20 principle of Pareto’s law:
The 20% of the business customers bring 80% of the business and 20% of the sales executives bring 80% of the revenue to the organization. CRM can be the most interesting factor that SMEs can look upon to bring the desired outcomes.
The simpler way for SME to play a larger role in international space is by embracing strategic advantage of adopting information technology driven Supply Chain Management (SCM) and Customer Relationship Management (CRM).
# You need to have Fresh Ideas
SMEs need not rely entirely on a small team or just the marketing staff to produce fresh ideas. It is up to the companies to take advantage of the scope available for fresh ideas and products and you can approach any competent person in your organization for it. Openness to ideas may give an organization a new attitude in whole and ensure in being innovative.
SMEs have become the sector showing the spirit of entrepreneurship of a country. The marketing can function effectively only when the commitment from the management and people in the organization comes.
The SMEs can easily bring in the innovative marketing practices as they don’t have layers between the higher level and the people who implement these decisions. SMEs’ innovative marketing strategy can work, if it is based on clearly expressed marketing programme to reach the potential and existing customers.