Marketing Strategies of Small Scale Industries Persuasive Essay Example

load and credits are also considered intangible products.

Products that can be physically sensed are considered tangible. Examples of mass-produced tangible goods include cars and disposable razors, as well as computer operating systems, which are a commonly utilized mass-produced service. All products undergo a life-cycle consisting of growth, maturity, and eventual decline when sales decrease.

Thorough research is necessary for marketers to understand a product's life cycle and address obstacles that arise in each stage. [1] The product mix should also be considered, including enhancing the depth of a specific line or adding new lines. Careful consideration of aspects such as positioning, branding, resources, and configuration ensures that each product complements the others.

In addition to formulating product development strategies, marketers must also take pricing into account. The price reflects the amount paid by the customer and is vital for the company's survival as it impacts profitability. Modifying prices can greatly influence marketing strategies and may affect demand and sales depending on a product's price elasticity. Thus, it is crucial for marketers to establish prices that harmonize with other aspects of their marketing mix.

When deciding on a price for their product, it is important for the marketer to take into account the perceived value that customers hold. Three main pricing strategies that should be weighed are market skimming, market penetration, and neutral. In order to determine an appropriate price point, it is essential to consider both the "reference value" (i.e., competitor prices) and the "differential value" (how this product compares in consumers' minds). Promotion encompasses all communication methods used by marketers to provide information about their product.

Various approaches can be utilized to advertise a product,

such as advertising, public relations, personal selling, and sales promotion. Advertising consists of compensated communication through various mediums like radio and internet commercials, cinema advertisements, billboards and print media. Public relations refers to uncompensated communication that involves press releases, exhibitions, sponsorship deals, events and conferences. Word-of-mouth marketing indicates informal product-related communication by satisfied customers or advocates. Sales personnel can play a significant role in word-of-mouth marketing as well as public relations. Ultimately, place denotes the guarantee of convenient product access for consumers.

Distribution, a crucial element of the marketing mix alongside product, price and promotion (also known as the 4Ps), is interchangeable with place. Marketers use strategies such as intensive, selective, exclusive and franchising to complement other aspects of marketing. The decision on distribution channels involves balancing wider distribution costs through intermediaries against direct sales costs. For most manufacturers of consumer goods, selling directly to consumers is not cost-effective except via mail order. Small Scale Industry (SSI) is a key sector in developing countries like India's industrial sector.

Small industries are crucial for creating employment, utilizing resources, and generating income while promoting gradual changes. The Indian planning framework has recognized their importance from the outset for both economic and ideological reasons. This is because large and medium industries have higher investment costs per job, which hinders the creation of non-farm jobs in India due to limited capital availability.

To drive progress in the Indian economy, effective policies must be implemented to boost labor utilization over capital. Small businesses have a higher proportion of labor than larger companies and are recognized as a vital part of the country's development by experts and politicians.

Small scale industries are an important contributor,

providing nearly 40% of the gross industrial value added in the Indian economy. These industries are present in all states and fulfill local demand, making them critical for regional development. Micro, small and medium enterprises play a significant role in a nation's economic structure. Developing nations offer various programs to support these small enterprises and ensure their viability. However, new strategies are needed for increased competitiveness. India's business landscape is highly diverse.

The text discusses a range of businesses, including restaurants, small shops (known as Kirana Stores), handicrafts, handlooms, and other village cottage and tiny units. Despite not following traditional business standards, these micro enterprises are innovative and growth-oriented, with strong social and cultural bonds. On the other hand, SMEs are organized businesses employing wage earners, operating in formal environments, and poised to compete in domestic and intermediate markets. The study aims to develop marketing strategies that will help these small enterprises become more competitive not just domestically but also internationally. Government efforts to support these units reflect their significant contribution to employment and economic benefits.

According to studies conducted in developing countries, micro-firms and large firms are relatively inefficient compared to medium-scale firms. These labour-intensive units also employ a significant portion of the labour force.

References: http://www.mnmk.ro/documents/2010special/3BarbuOgarca.pdf