Marketing Strategies of Small Scale Industries assignment

Marketing Strategies of Small Scale Industries assignment Words: 4482

The entrepreneur’s reception relating to these various Issues have been highlighted In this paper . A number of statements Indicating the marketing mix Issue have been developed and the respondents were asked to express their level of agreement/disagreement with this statement on five point Liker scale . The major finding reveals that small manufacture are not using well versed with the marketing mix techniques and do not use latest marketing tool such as e-marketing or web marketing.

The promotion of the products by advertising is not prevalent among these units. The major findings reveals that government policies is not favorable for the small call industries and government not providing any financial help to the small scale industries . The promotion of the products by advertising Is not prevalent among these units. Marketing strategies serve as the fundamental underpinning of marketing plans designed to fill [ 7 Market needs and reach marketing objectives.

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Plans and objectives are generally tested for measurable results. Commonly, marketing strategies are developed as multi-year plans, with a tactical plan detailing specific actions to be accomplished in the current year. Time horizons covered by the racketing plan vary by company, by industry, and by nation, however, time horizons are becoming shorter as the speed of change in the environment increases. Marketing strategies are dynamic and interactive. They are partially planned and partially unplanned.

Environmental factors Include the marketing mix, plus performance analysis and strategic constraints. External environmental factors Include customer analysis, competitor analysis, target market analysis, as well as evaluation of any elements of the technological, economic, cultural or political/legal environment likely to impact success. A key component of marketing strategy is often "marketing mix” was coined in 1953 by Neil Borden in his American Marketing Association presidential address. The marketing mix is a business tool used in marketing products.

The marketing mix is often crucial when determining a product or brand’s unique selling point (the unique quality that differentiates a product from its competitors), and is often synonymous with the ‘four AS’: ‘price’, ‘product’, ‘promotion’, and ‘place’. However, in recent times, the ‘four As’ have been expanded to the ‘seven As’ with the addition of ‘process’, ‘physical evidence’ and ‘people’. Recently, ‘four CSS’ theory is also in the limelight. Product A product is seen as an item that satisfies what a consumer needs or wants.

It is a tangible good or an intangible service. Intangible products are service based like the tourism industry & the hotel industry or codes-based products like cell phone load and credits. Tangible products are those that can be felt physically. Typical examples of mass-produced, tangible objects are the motor car and the disposable razor. A less obvious but ubiquitous mass produced service is a computer operating system. Every product is subject too life-cycle including a growth phase followed by maturity phase and finally an eventual period of decline as sales falls.

Marketers must do careful research on how long the life cycle of the product they are marketing is likely to be and focus their attention on different challenges that arise as the product moves through each stage. [l] The marketer must also consider the product mix. Marketers can expand the current product mix by increasing a certain product line’s depth or by increase the number of product lines. Marketers should consider how to position the product, how to exploit the brand, how to exploit the company’s sources and how to configure the product mix so that each product complements the other.

The marketer must also consider product development strategies. Price The price is the amount a customer pays for the product. The price is very important as it determines the company’s profit and hence, survival. Adjusting the price has a profound impact on the marketing strategy, and depending on the price elasticity of the product, often, it will affect the demand and sales as well. The marketer should set a price that complements the other elements of the marketing mix. [l] [l]n eating a price, the marketer must be aware of the customer perceived value for the product.

Three basic pricing strategies are: market skimming pricing, marketing penetration pricing and neutral pricing. The ‘reference value’ (where the consumer refers to the prices of competing products) and the ‘differential value’ (the consumer’s view of this product’s attributes versus the attributes of other products) must be taken into account. Promotion Represents all of the methods of communication that a marketer may use to provide information to different parties about the product. Promotion comprises elements such as: advertising, public relations, personal selling and sales promotion.

Advertising covers any communication that is paid for, from cinema commercials, radio and Internet advertisements through print media and billboards. Public relations is where the communication is not directly paid for and includes press releases, sponsorship deals, exhibitions, conferences, seminars or trade fairs and events. Word-of-mouth is any apparently informal communication about the product by ordinary individuals, satisfied customers or people specifically engaged to create mouth and public relations. Place Place refers to providing the product at a place which is convenient for consumers to access.

Place is synonymous with distribution. Various strategies such as intensive distribution, selective distribution, exclusive distribution and franchising can be used by the marketer to complement the other aspects of the marketing mix. The marketing mix elements called product, price, place, and promotion these are called the four elements of marketing mix and also called ups of the marketing mix. The distribution channel decision is very important. In theory at least, there is a form of read-off: the cost of using intermediaries to achieve wider distribution is supposedly lower.

Indeed, most consumer goods manufacturers could never Justify the cost of selling direct to their consumers, except by mail order Meaning and Concept of Small Scale Industry: In most of the developing countries like India, Small Scale Industries (AS’) constitutes an important and crucial segment of the industrial sector. They play an important role in employment creation, resource utilization and income generation and helping to promote changes in a gradual and phased manner. They have been given an important place in the framework of Indian planning since beginning both for economic and ideological reasons.

The reasons are obvious. The scarcity of capital in India severely limits the number of non-farm Jobs that can be created because investment costs per Job are high in large and medium industries. An effective development policy has to attempt to increase the use of labor, relative to capital to the extent that it is economically efficient. Small scale enterprises are generally more labor intensive than larger organizations. As a matter of fact, small scale sector has owe emerged as a dynamic and vibrant sector for the Indian economy in recent years.

It has attracted so much attention not only from industrial planners and economists but also from sociologists, administrators and politicians. The small scale industries play a vital role in the growth of the country . Let contributes almost 40 % of the gross industrial value added in the Indian economy Small scale industries are discussed all over the states and they satisfy local demand . Thus they play a critical role in the development of regions. In the economic structure of a nation the role of Cicero, small and medium enterprises are very significant.

Therefore the Government in developing countries provide different variety of programs to support the small enterprises s that their viability can be maintained. In the search of more effectiveness some new strategies need to implement to increase competitiveness. In India business comprises of a very heterogeneous group. It include variety of firms which include restaurants, small shops (Koran Stores), Handicrafts, handloom etc. These small village cottage and tiny units have special social and cultural bonding which necessarily not followed standards business rules but seems to be very innovative, dynamic and growth-oriented.

Micro enterprises are normally family business or self-employed persons operate in informal environment. Seems usually operate in formal kind of environment and are organized enterprises, employed wage earnings works and may become competitive in both domestic and theses small enterprises s that they can proved to be more competitive not only in domestic market but also at international level. Even Goof workout different models for these units only because of their relatively more contribution to employment and economic benefits. These are labor intensive units and employ a large share of labor force.

Some studies in developing countries results in that the smallest I. E. Micro-firm and large firms both are relatively inefficient as compared to medium scale firms. Definition of Small Manufacturing Industry in India In India small manufacturing industries defined on the basis of limit historical value of investment in plant and machinery in the MESSED Act 2006 enterprises act 2006)announced by the government of India. As per the act the small sector has been divided into two categories : Categories l:units engaged in manufacturing or production. Categories 2:units engaged in providing or rendering of services .

In the category 1 (manufacturing sector )the MESSED Act 2006 defines the small units as an industrial units in which the investment in plant and machinery in more than twenty five lack rupees but not exceed five core rupees. In the categories 2(service sector )the MESSED Acetate defines the small unit as an enterprise where the investment in equipment is more than ten lack rupees but does not exceed than two core rupees. Category I Manufacturing Enterprises I Service Enterprises I Micro I Up to RSI. 25 lack I Up torso. 10 lack I Small I More than RSI 25 lack undue to RSI. 5 core I More than RSI. 10 lack undue to RSI. core I Medium I More than RSI RSI 5 corroded up to RSI. 10 core I More than RSI 2 core undue to RSI. 5 core I Table A Investment criteria of micro,small and medium Enterprises Source: Development Commissioner, 2010. Ministry of MESS, Government of India,New Delhi. Literature Review To investigated the economic rationale for intervention in support of Seems, on both theoretical and empirical grounds. He dealt with small and medium scale enterprises ND how governments and aid agencies can best encourage their development. He took a different look at the issues and provided a market-oriented strategy for Seems.

His study was based on literature prepared by Juan Manuel Rajas. He suggested a framework for SEEM to help the bank Group’s client countries to design SEEM strategies. He focused on Seems as opposed to misinterpreted development. He also suggested that government should provide environment to these Seems so that market access can be improved as well as economic benefits provided by small firms could be gained Kristin Halberd (2000). To examined the institutional framework in which African Seems try to compete. Report identified constraints faced by Seems and priorities for action that can be recommended.

According to this report there are many problems prevailing in these countries, but some countries there are Sea’s strategic framework to enhance the competitiveness of African Seems in regional and global markets. Report found that Africans industrial indicators reveal its low capabilities and relatively poor performance in exports. Lastly, report suggested that policy intervention is required at all level design of Sea’s strategic framework. Economic Commission for Africa (2001) Networking is an inherent tool of marketing which is wholly compatible with SEEM decision-making characteristics in relation to marketing activities.

It was illustrated that in case of competitor collaboration, it is balanced with caution when it is felt that the benefits enjoyed by each party are proportionate to their respective inputs and managers will guard against speaking too freely about certain things, especially any plans they might have for substantial changes to the firm or its direction. Moreover, in doing all of this, SEEM owner/ managers rely heavily on using their networks and their networking skills for all aspects of marketing in the context of competitor activity.

In addition, SEEM owner- managers often make a concerted effort to include customers and potential customers in their networking. They explored that creation and existence of effective networking will be concerned with maximizing marketing opportunities and ensuring the enterprise’s survival and development through successful interactions with customers and competitors. They suggested that marketing by networking would be enhanced and improve with the advent of experience . Gilmore et al. (2001). The monograph detailing that could examine the key determinants offset marketing.

He investigated in-depth and longitudinal investigation of the nature of SEEM marketing that was undertaken. His research agenda was both deductive as well as inductive. His study was focused on marketing competencies in Seems, their sales orientation, which type of personal contacts they used and the nature of marketing planning in Seems. He developed marketing competency at three different levels, foundation, transitional and marketing in practice. At last he concluded that insights provided remission to enable the development of a new model of Seems marketing.

Jimmy Hill (2001) The role of the private sector as engine of growth for poverty reduction. He reviewed Unit’s approach to achieve productivity enhancement of Game’s and also examined the development contributions and functions of Game’s. The main purpose of UNDID programmer is to foster developing countries exports by enabling Game’s to overcome the information and scale problems associated with exporting, mainly at early stage of exporting. UNDID is particularly concerned that its support to lower income level of developing countries, the prevalence of Seems was particularly renounced.

Unit’s role to the global poverty challenge assigned a key role to the build-up of local productive in mainly private sector full growth. Wilfred Alternators (2005) A unique theoretical and practical insight into the issue of marketing in Seems in the study, conducted to report on a full-scale testing of the role of marketing and its relevance in small and medium sized enterprises (Seems). This paper was reported on a large-scale questionnaire survey, follow-up interviews with Seems owner-managers and the use of published accounts to show how companies have performed during the study.

The role and relevance model of marketing in Seems had been thoroughly investigated and tested in the study. It found that the model offers a straightforward way to diagnose the situation within an SEEM and the and disorganized situation within these companies and their business environment. Moreover, some findings suggested a positive link between a company’s financial performance and its approach to marketing within the model. Simpson et al. (2006) Seems in the southern region in country Malaysia were prepared for CIT adoption. Their study comprised all Seems from service sector in Amelia and Juror of Malaysia.

Most of the businesses in Malaysia had already adopted CIT as an important tool to increase their business at all levels domestic as well as global level. They found that in order to increase the use of CIT in businesses, companies could use internet facility which would certainly increase their capacity. To compete in the market Seems had to use CIT facilities. Their study was limited to the service sectors of northern region selected as research area for to be studied. They also found CIT would grow more rapidly in the Malaysia and its importance would certainly be increased.

Llama ND Susan (2007) The limitation faced by SEEM legal practitioners especially in the area of marketing of their services. Certain laws restricted marketing activities in legal services particularly in the use of electronic media. They also studied the different areas in marketing of services that were able to accommodate the regulations. There were some Jurisdictions in Malaysia that had extensive prohibitions against legal firms’ in Malaysia on their marketing activities. Their study suggested on possible approaches for legal practitioners in exploiting marketing tools and techniques for their business success.

According to them government should play a vital role in educating the Seems. Also, the legal practitioners must be very creative and innovative in fully exploiting other marketing devices which are still acceptable by law to promote their services. Abdullah et al. (2008) The Landmark Agricultural Lead Industrialization (DALI) policy of the Ethiopians government that was introduced in 1994. Study was based on a 6-year random sample of 500 small businesses selected from five major cities of Ethiopia. The study identified key predictors of viability and long term survival.

They viewed that the failure of DALI is attributed to lack of political concern and important resources that are required for the successful implementation of the policy. Study showed that Seems have potential to provide employment opportunities for the poor. Lastly, study suggested that further research is required for exploring the full potential of small businesses and enterprises in Ethiopia. Buckle and Muncie (2009) The presence and implementation of the marketing activities, as a part of the behavioral (managerial and operational) aspects of market orientation, in the category of small businesses in the Splits-

Dalmatians County. It was resulted that most small business entities in Croatia are, at least to some extent, oriented toward the market, their customers and, in particular, toward the competitors, as well as implement the marketing activities in a distinct manner. In addition, it was concluded that the most frequent marketing activities are those of planning and control of the key elements of the marketing mix – product/service (including the product range) and price (including terms of payment), as well as research and analysis of customers and competitors.

It was also confirmed y the significant consideration for customers and competitors and their influence on product/service and price policies. Dads Dragging (2009) countries in context with findings from developed countries. They studied heterogeneous context and samples of MESS in developing countries and investigated factors associated with MESS growth. They found mainly four factors: (1) Individual entrepreneur characteristics; (2) firm characteristics; (3) relational factors and (4) contextual factors.

They further suggested that other researchers could keep in mind firms’ opportunities and capabilities, as well as to other mechanisms by which factors potentially affect MESS growth. Inciter and Goldman (2009) The perceptions of marketing held, the marketing practices adopted and the success aimed at in Seems. It was found that SEEM marketers perceived marketing through concrete practices that often relate to promotion, selling and customer relationships and they professed no single business philosophy but rather features of several philosophies that they perceived most relevant to their business operations.

Regarding market orientation, Seems had adopted this to a certain extent and the focus was on customer information gathering, whereas to dissemination of and espousing to market intelligence were paid less attention. Especially in the smallest of Seems the role of marketing was not considered focal and it was often carried out unsympathetically and sporadically. In addition, instead of traditional financial success measures, owner-managers emphasized personally related ones, such as Job satisfaction. Rejoin (2009) The branding in small business in their study.

By using a desk research on Internet and the press they have identified the practices small businesses use to enhance their brand and the brand dynamics in small business. Their main contribution is that they tried to figure out the strategy of branding in small business and they explored that small businesses are using a variety of branding tactics some of them very creative and one-step-ahead of the branding manuals. Moreover, Branding is understood in an own interpretation by the entrepreneurs but this innovative performance adds new developments to the theory and practice of branding.

Barb et al. (2010) The current marketing activities of Footman Ltd that was operated in internet environment and suggested some improvements which were possible. This many kept an eye on the lack of business resources that Seems mostly faced. He viewed that e- marketing literature was centered on mainly large business houses and little attention was given to Seems. He interviewed questions that had been correlated to both theoretical and practical questions. His study faced the limitation that he could not obtain the views of all interviewees originally planned.

This was due to reluctance of most of the respondent due to competitive environment and sensitive nature of data. He found that most of the respondents were optimistic about the growth of e-marketing concept in Seems. Ben Theme (2010) The literature on the importance of Mess to economic development and poverty alleviation. From the reviewed literature he found that Seems play a significant role in creating Job, contribution to tax, export and import revenues and various other benefits. He found Mess in various fields of Ghana, e. G. Farming, fishing, small scale mining, restaurants, food processing and various other services.

However these Mess were policy makers to provide support to Mess a favorable regulatory framework as that would help create employment as a way to tackle poverty. These Mess could be a mean to reduce poverty of Ghana. Daniel Gapping (2010) The types and impact on developing country Seems in general, and African as well as Nigerian Seems in particular. They investigated which types of innovation were important in Seems of developing countries and to find out the impact of these innovations on different dimensions of firm performance.

They found that Seems would focus on incremental product and process innovation. They concluded that Seems should focus on such innovations which are according to their strategies and are within their resources. Also, their cross-sectional study found that sector characteristics influenced the hypes of innovations that Seems pursued. Eggbeater et al. (2010) To investigate the role of structural dimensions of marketing network as important moderators on this relationship, in regard with some contextual variables as control variables.

They hypothesize that the size, formality, diversity, density, stability and flexibility of marketing network will positively moderate the relationship between SMS and Seems’ performance to test the validity of model. The authors were intended to fill up the gap about the lack of research on SMS-Performance relationship in Seems’ context. And they proposed that structural dimensions of marketing network are important moderators on relationship between strategic marketing planning (SMS) and Seems’ performance. Hookworm et al. 2011 To investigated how construction Seems in China competes for success in the use of marketing strategy and the impact of environmental factors on construction Seems performance. Their study was based on literature review in the areas of marketing management and field interview of managers in the construction of Seems in China. They found that the Seems performance was based on competitive marketing strategy, elating marketing strategy and business environment. Study also proved that only effective marketing could help Seems to gain competitive advantage and superior performance.

Their study provided the best picture of the determinants’ of construction Seems performance. Limitation of their study was low response rate than expected sample size. Yen and Chew 2011 To investigated the potential barriers that obstruct internet marketing growth, the influence it could have on small, medium & micro enterprises and examined the opportunity for internet marketing for small, medium and micro enterprises in South Africa. They found that Seems in South Africa were showing interest (91% approved of the idea) and were willing to implement an internet marketing strategy.

And 83% of these Seems felt that there is a need for IM in their business. It was found that technological advances are countless, but accompanied by many challenges. Nevertheless, if the idea of IM is grasped, it might create vast opportunities and benefits for not only the Seems involved, but for the South African economy as a whole. Katie & Parker. After reviewing the above literature following problems are identified in small scale industries. Identification of Problem * Small scale industries at Hisser are unable to find new market for their products. Has been done to satisfy or follow -up the consumers. The organizations have not focused on distribution and logistics. Objectives of the Study * The main objective of the study is to develop marketing strategies for the small scale industries. To achieve these main objective organizations need to achieve more sub-objective like: * To Workout the ups decisions effectively in the organization. * To strengthen the marketing intelligence system. Research Methodology Research simply means, “Search for knowledge”. It is a systematized effort to gain new knowledge. Some people consider research as movement from known to unknown. In fact research is an art of scientific investigation.

Hypotheses For this purpose, the following null hypotheses were framed: 1 . Service Provider HI : Service provider is satisfied from the prevailing marketing strategies formulated by their corresponding SSI units regarding Product, Price, Place, and Promotion. H2O: Market intelligence system has a significant effect on performance of service providers. 2. Customer: HA: The customers are satisfied from marketing strategies adopted by SSI units guarding Product, Price, Place, and Promotion . HA: Consumer are satisfied from market awareness and information provided by Design Exploratory UCM Descriptive the Isis.

Research Research design is defined as the plan, structure and strategies of investigation conceived as to obtain answers to research questions. Research design will include the exact sequence of the research activities, data collections techniques etc. Therefore the proposed study will be based on 120 units in the Hisser region to collect the data personally and to carry out further research analyses and for formulation of traceries data collection techniques is required. The design adopted is primarily of descriptive type with support from exploration of literature, websites, case studies and opinions of the officials of different units.

Sample Size 120 respondents (60 SSI units and 60 customers) Nature of data The sample survey will be conducted into HISSER CITY (HARLAN). The structured questionnaire will be used. Though the study is primary in its nature but sill exploration will be done at early stage of research work to identify different factors of Seems for its growth, efficiency and effectiveness. Websites of Journals are explored to octet information on different issues related to marketing problems. Opinions of some officials from business units are sought on marketing strategies for Seems so that suggestions can be drawn.

Techniques of Data Collection The research will be based on systematic collection, analyses, interpretation and collection and interpretation . T test used when the standard deviation is unknown and the sample size is small. So I use t test statistic for data collection because my sample size is small and standard deviation also unknown. Data Type Primary: filling of questionnaires. Questionnaire Method Two surveys will be conducted one for the marketer and other for the customers so that according to the respondents right marketing issues can be raised and good strategic framework can be drawn for Seems.