With numerous economic reforms and liberalization of the economy since the 1990s, India has become a country with high growth rate after China. This has not been the outcome of random selection of processes but a well thought out and planned procedures and activities. Therefore, we cannot disregard or ignore the contribution of Small and Medium Enterprises (SMEs) in the Indian economy. But, having said that, there are multitudinous factors that still ail SMEs when facing competition with MNCs or large corporate businesses in every sector. This is where they need to sit up and take account of the changing business environment.
Branding and image building have become the touchstone of MNCs. It is the common marketing strategy for corporate houses to influence the market in their favour and therefore determine the chances of success. Most of the SMEs are comfortable in the present economic scenario and have not incorporated additional business management skills that have become essential for survival.
Thus, the role of triple A's - Awareness, Action and Audit in SME marketing will help to keep pace with the dynamic nature of the economy.
Awareness: The visible shift from the traditional to the new has led to increased competition. The market offers innumerable services and products and therefore the idea should be to have that competitive edge that differentiates the business from the rest. But to accomplish this, it is imperative to identify customer need, the target audience and the competitors. SMEs should be aware of the current on goings in the market and keep themselves updated with the information crucial to their business existence.
- Capitalizing on different marketing techniques: SMEs need to undertake innovative marketing techniques to maximize customer satisfaction. Providing best possible services where the buyer's experience leads to good word of mouth certainly results in building of positive image for the business. This is one of the surest way of influencing clients. Customer references, radio, outdoor marketing (eg. roadside billboards), print and email marketing, and internet are other ways of making one's existence felt in the market. The strong online presence in the market has become the need of the hour as far as marketing is concerned. Since many small businesses cannot invest money in television and other expensive medium to market their services and products, internet marketing can be the next best alternative as seen in the case of Madhulika Sweets, a Dhanbad-based sweet outlet that decided to graduate to internet. Mr. Kumar Manish, Owner of Madhulika Sweets, shares, “We experienced enormous increase in our sale when we associated ourselves with a B2B e-marketplace IndiaMART.com and started online marketing of our products through the website www.madhulikaonline.com.”
- Brand Management: Many SMEs still do not invest in advertising and branding. Branding helps in image building resulting in formation of favorable customers' opinion that increases credibility of the business. Small businesses should get effective branding and advertising strategies from experts to avail of the inherent opportunities present in the market.
Action: The information and knowledge gained should be put into practice. With the continuous change in the market, customer opinion changes simultaneously. Investing in effective and smart marketing and newer and better ideas can guarantee assured returns. Small businesses have immense growth potential but are also threatened with technological innovations and advancements. This makes it essential for them to streamline their marketing activities by keeping abreast with the local as well as the global competitors. Also, there should be a shift from profit-making business to relationship-building enterprises. Therefore, the SMEs should take appropriate action and adopt best practices that will be beneficial to their business operation.
Audit: SMEs should embrace processes that continuously review their activities. Any and every business wants to maximize profit but the question is to what extent should a business cut cost to achieve this. Cutting costs weakens the chances of increasing resources and investing in better tools and technologies. This harms small businesses which can have an adverse effect in the long run. Periodic evaluation of business strategies will lead to improved quality and productivity.
The last few years have seen a lot of change in the Indian economy. The multifarious products and services available to the buyers have resulted in complete makeover of the exhausted system of working. Today, every business is expected not only to offer what is wanted by the buyers but also to focus on cost management rather than cost cutting. Moreover, building assets are no longer associated with plants and machinery but with the brand that they are. Therefore, to survive and exist in this aggressive and combative conditions, businesses need to evolve with the change.
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