Marketing Strategies of Small Scale Industries Essay Example

also turned to the "four CSS" theory.

A product is regarded as something that fulfills a consumer's needs or desires. It can be either a tangible good or an intangible service. Intangible products are service-based industries such as tourism and hotels, or code-based products like cell phone load and credits. Tangible products are those that can be physically felt.The motor car and disposable razor are common examples of mass-produced tangible objects. Additionally, the computer operating system is an often overlooked but widely available mass-produced service. All products experience a life cycle, involving a growth phase, maturity phase, and eventual decline in sales. Marketers must conduct thorough research to determine the duration of a product's life cycle and address the challenges that arise in each stage. They must also consider the product mix, expanding it by increasing the depth of a certain product line or adding new product lines. It is crucial for marketers to position the product effectively, leverage the brand and company resources, and configure the product mix so that each product complements the others. Price plays a significant role as customers pay for the product, determining the company's profit and survival. Adjusting the price can greatly impact the marketing strategy and potentially affect demand and sales depending on the price elasticity of the product. Hence, marketers should set a price that aligns with and supports the other elements of the marketing mix.When pricing a product, the marketer must consider the customer's perceived value. There are three main pricing strategies: market skimming, market penetration, and neutral pricing. The marketer must also take into account the consumer's reference value and differential value. Promotion involves various forms

of communication to inform different parties about the product, such as advertising, public relations, personal selling, and sales promotion. Advertising includes paid communication through cinema commercials, radio and internet ads, print media, and billboards. Public relations includes unpaid communication through press releases, sponsorship deals, exhibitions, conferences, seminars, trade fairs, and events. Word-of-mouth is informal communication by ordinary individuals, satisfied customers, or hired individuals for public relations. Place or distribution refers to making the product easily accessible to consumers.The marketer can employ various strategies, including intensive distribution, selective distribution, exclusive distribution, and franchising, to complement the other aspects of the marketing mix. These elements, namely product, price, place, and promotion, are collectively known as the four elements or "ups" of the marketing mix. The decision regarding the distribution channel holds significant importance. In theory, there is a perceived cost advantage in utilizing intermediaries for wider distribution. Consumer goods manufacturers, for instance, typically find it impractical to sell directly to consumers unless it is through mail order.

Small Scale Industries (SSI) hold a crucial position in the industrial sector of developing countries like India. They play a vital role in creating employment opportunities, utilizing resources effectively, and generating income. They also contribute to gradual and phased changes in the economy. Since the inception of Indian planning, SSIs have been prioritized for economic and ideological reasons. This is due to the limited availability of capital in India, which restricts the creation of non-farm jobs as large and medium industries require high investment costs per job.An effective development policy must aim to increase the use of labor compared to capital, as long as it is economically efficient. Small scale

enterprises are typically more labor-intensive than larger organizations and have become a dynamic and vibrant sector of the Indian economy in recent years. This sector has attracted attention from industrial planners, economists, sociologists, administrators, and politicians. Small scale industries play a vital role in the country's growth as they contribute almost 40% of the gross industrial value added in the Indian economy. These industries are discussed and satisfy local demand, thus playing a critical role in regional development. In the economic structure of a nation, small and medium enterprises are significant. Therefore, governments in developing countries offer various programs to support small enterprises and maintain their viability. To increase competitiveness, new strategies need to be implemented. In India, the business sector consists of a heterogeneous group, including restaurants, small shops (Koran Stores), handicrafts, handloom, etc.These village cottages and tiny units have a unique social and cultural bond that may not adhere to standard business rules, but they are innovative, dynamic, and growth-oriented. Micro enterprises are typically family businesses or self-employed individuals operating in informal environments, although they are capable of operating formally and employed wage earners. They can be competitive in both domestic and international markets. In recognition of their significant contribution to employment and economic benefits, different models have been developed for these units. These labor-intensive units employ a large portion of the labor force.
Studies in developing countries have found that both micro-firms and large firms are relatively inefficient compared to medium-scale firms. In India, small manufacturing industries are defined based on the historical value of investment in plant and machinery. The MESSED Act 2006, announced by the Indian government, categorizes the small sector

into two groups: manufacturing or production units (Category 1) and service providers (Category 2).

The MESSED Act 2006 defines small units in the manufacturing sector as industrial units with an investment in plant and machinery ranging from more than twenty-five lakh rupees but not exceeding five crore rupees. In the service sector, small units are defined as enterprises with an investment in equipment ranging from more than ten lakh rupees but not exceeding two crore rupees. The table shows the investment criteria for micro, small, and medium enterprises in both categories. The information is sourced from the Development Commissioner, Ministry of MESS, Government of India, New Delhi in 2010.

A literature review was conducted to explore the economic rationale for intervention in support of small and medium-scale enterprises (SEEM). The author examined the theoretical and empirical grounds for intervention and discussed how governments and aid agencies can effectively promote their development. The author suggested a market-oriented strategy for SEEM based on a framework prepared by Juan Manuel Rajas to assist the bank Group's client countries in designing SEEM strategies.

He emphasized the importance of focusing on Seems rather than misunderstanding their development. He also recommended that the government provide an environment for these Seems in order to improve market access and gain economic benefits from small firms (Kristin Halberd, 2000). This report examined the institutional framework in which African Seems try to compete and identified the constraints they face and recommended priorities for action. Therefore, according to this report, many problems prevail in these countries, but some countries have a strategic framework to enhance the competitiveness of African Seems in regional and global markets. The report

found that African industrial indicators indicate low capabilities and relatively poor performance in exports. Finally, the report suggested that policy intervention is required at all levels in the design of the Seems' strategic framework (Economic Commission for Africa, 2001). Networking is an inherent tool of marketing that aligns well with Seems' decision-making characteristics regarding marketing activities. It was shown that in cases of competitor collaboration, caution is balanced with the benefits enjoyed by each party being proportionate to their respective inputs. Managers will be cautious about discussing certain matters, especially plans for significant changes to the firm or its direction.Furthermore, SEEM owner/managers heavily rely on their networks and networking skills for all aspects of marketing in relation to competitor activity. Additionally, they actively involve customers and potential customers in their networking efforts, recognizing that effective networking is crucial for maximizing marketing opportunities and ensuring the survival and growth of the enterprise through successful interactions with customers and competitors. The authors Gilmore et al. (2001) suggest that networking-based marketing can be further enhanced and improved with experience. Their monograph explores the key determinants of effective marketing through networking.
In his research, Hill (2001) conducted a detailed and longitudinal investigation into the nature of SEEM marketing. He employed both deductive and inductive approaches in his research agenda, focusing on marketing competencies in SEEM, their sales orientation, the types of personal contacts they utilized, and the nature of marketing planning in SEEM. Hill developed marketing competency at three levels: foundation, transitional, and marketing in practice. Ultimately, his study provided insights that facilitated the development of a new model for SEEM marketing.The text examines Unit's approach to improving the productivity

of Game's and evaluates the contributions and functions of Game's development. UNDID aims to enhance exports in developing countries by addressing the information and scale issues associated with exporting, particularly in the early stages. UNDID focuses on supporting lower income levels in developing countries, with a notable concern for the prevalence of Seems.

Unit plays a crucial role in promoting local productivity growth in the private sector to address global poverty challenges. Wilfred Alternators (2005) conducted a comprehensive study on marketing in Seems, providing both theoretical and practical insights. The study included a large-scale questionnaire survey, follow-up interviews with Seems owner-managers, and analysis of published accounts to assess company performance.

The study thoroughly examined and tested the role and relevance of marketing in Seems. It discovered that the model offers a systematic approach to diagnosing the situation within SEEMs, identifying both organizational and environmental issues within these companies.Furthermore, Simpson et al. (2006) conducted a study on the adoption of CIT by businesses in the southern region of Malaysia. They focused on the service sector in Amelia and Juror of Malaysia. It was observed that most businesses in Malaysia had already embraced CIT as a crucial tool to enhance their domestic and global operations. The researchers discovered that companies could enhance the utilization of CIT by utilizing internet connectivity. They emphasized that the use of CIT facilities was necessary for businesses to compete in the market. The study was limited to the service sectors of the northern region as the chosen research area. The researchers also predicted that CIT would experience rapid growth and increased significance in Malaysia.

Similarly, Llama ND Susan (2007) delved into the challenges faced by

legal practitioners in SEEM, particularly in marketing their services. They identified certain laws that imposed restrictions on marketing activities in the legal services field, especially in regards to using electronic media. They further investigated how different areas within service marketing were able to conform to these regulations. It was noted that some jurisdictions in Malaysia had extensive prohibitions against marketing activities by legal firms in the country.Their study recommended possible strategies for legal practitioners to use marketing tools and techniques to achieve business success. The authors also emphasized the importance of government involvement in educating legal practitioners. Additionally, they advised legal practitioners to be creative and innovative in utilizing marketing devices that comply with the law to promote their services. Abdullah et al.'s (2008) study focused on the Ethiopian government's DALI policy, introduced in 1994, and was based on a 6-year random sample of 500 small businesses in five major Ethiopian cities. The study identified key factors that determine viability and long-term survival. According to the authors, the failure of the DALI policy was due to a lack of political concern and necessary resources for successful implementation. The study also found that small businesses have the potential to generate employment opportunities for the poor. Lastly, the authors suggested further research to explore the full potential of small businesses and enterprises in Ethiopia. Buckle and Muncie (2009) conducted a study on marketing activities as part of market orientation in small businesses in Dalmatians County.The study found that small businesses in Croatia are generally market-oriented and implement marketing activities in a distinct manner. The most common activities include planning and controlling the key elements of the marketing

mix, such as product/service and price. Additionally, there is a significant focus on customers and competitors and their influence on product/service and price policies.

Another research conducted by Dads Dragging (2009) examined the growth factors of small businesses in developing countries. They identified four main factors: individual entrepreneur characteristics, firm characteristics, relational factors, and contextual factors. It was suggested that researchers should consider firms' opportunities, capabilities, and other mechanisms that potentially impact small business growth.

In a study by Inciter and Goldman (2009), the perceptions of marketing, marketing practices, and success were investigated in small businesses.SEEM marketers were found to have a perception of marketing that mainly focused on concrete practices relating to promotion, selling, and customer relationships. They did not profess a single business philosophy, but rather incorporated features from multiple philosophies that they deemed most relevant to their business operations. In terms of market orientation, SEEM marketers had partially adopted this concept, with a primary focus on gathering customer information. However, they paid less attention to the dissemination and implementation of market intelligence. In smaller SEEM businesses, marketing was not seen as a central aspect and was often carried out without care or consistency. Owner-managers in these businesses placed more emphasis on personally-related measures of success, such as job satisfaction. In a study by Rejoin (2009) on branding in small businesses, desk research using the internet and press sources identified the branding practices employed by small businesses and explored the dynamics of branding in this context. A notable contribution of the study was the revelation that small businesses employ various branding tactics, some of which are highly creative and go beyond typical branding manuals.Furthermore, entrepreneurs

have their own interpretation of branding, but this innovative performance brings new developments to the theory and practice of branding. Barb et al.(2010) analyzed the current marketing activities of Footman Ltd, which operated in an internet environment, and suggested possible improvements. They noticed a lack of business resources that was primarily faced by Seems. They also observed that e-marketing literature mainly focused on large business houses, neglecting Seems. Their study included both theoretical and practical questions, but they were unable to gather views from all planned interviewees due to reluctance caused by competition and data sensitivity. However, Barb et al. discovered that most respondents expressed optimism about the growth of e-marketing in Seems. Similarly, from literature review, Ben Theme (2010) emphasized the importance of Mess in economic development and poverty alleviation. He found that Seems played a significant role in job creation, tax contributions, export and import revenues, and various other benefits. Mess could be found in various fields in Ghana, including farming, fishing, small scale mining, restaurants, food processing, and other services.

However, these Mess were policy makers who aimed to provide support and create a favorable regulatory framework for Mess in order to tackle poverty and promote employment in Ghana. According to Daniel Gapping (2010), these Mess could be utilized as a means to reduce poverty in developing countries, particularly in Africa and Nigeria. Gapping's study focused on investigating the types and impact of innovation on firm performance in developing countries.

The study concluded that Seems should prioritize incremental product and process innovation based on their strategies and available resources. Additionally, the study found that sector characteristics influenced the types of innovations pursued

by Seems. Eggbeater et al. (2010) conducted a study to examine the role of marketing network structural dimensions as important moderators in the relationship between SMS and Seems' performance. They hypothesized that factors such as network size, formality, diversity, density, stability, and flexibility would positively influence the relationship between SMS and firm performance. This study aimed to address the lack of research on the SMS-Performance relationship in Seems' context.

The study conducted by Hookworm et al. (2011) focuses on the importance of marketing network dimensions as moderators in the relationship between strategic marketing planning (SMS) and Seems' performance. The study aimed to investigate how construction Seems in China compete for success through the use of marketing strategy and the influence of environmental factors on their performance. The researchers conducted a literature review in the areas of marketing management and interviewed managers in the construction industry in China. The findings revealed that Seems' performance is determined by competitive marketing strategy, relationship marketing strategy, and the business environment. Additionally, the study confirmed that effective marketing is crucial for Seems to gain a competitive advantage and achieve superior performance. Despite providing valuable insights into the determinants of construction Seems' performance, the study had a limitation of a lower than expected response rate compared to the sample size.
Similarly, Yen and Chew (2011) aimed to investigate potential barriers hindering internet marketing growth and its impact on small, medium, and micro enterprises in South Africa. The study also examined the opportunities for internet marketing adoption by these enterprises. The findings revealed a high level of interest among Seems in South Africa (91% approval) and their willingness to implement an internet marketing

strategy. Furthermore, 83% of these Seems recognized the need for internet marketing in their business.The text highlights that while there are countless technological advances, they also come with numerous challenges. However, understanding the concept of Industrial Marketing (IM) can lead to vast opportunities and benefits for both the parties involved and the South African economy as a whole. In relation to small scale industries, certain problems have been identified. These include the inability of small scale industries in Hisser to find new markets for their products, the lack of focus on distribution and logistics, and the failure to satisfy or follow-up with consumers. The main objective of the study is to develop marketing strategies for small scale industries, which include effectively making pricing decisions and strengthening the marketing intelligence system. Research is defined as a systematic effort to gain new knowledge, with some considering it as a movement from known to unknown. It is regarded as an art of scientific investigation. Hypotheses were formulated, including one stating that service providers are satisfied with the prevailing marketing strategies formulated by their corresponding Small Scale Industry (SSI) units regarding Product, Price, Place, and Promotion.H2O: The performance of service providers is significantly affected by the market intelligence system.
Customer: Customers are satisfied with the marketing strategies implemented by SSI units for Product, Price, Place, and Promotion. Also, consumers are satisfied with the market awareness and information provided by Design Exploratory UCM Descriptive the Isis.
Research design is the plan and structure used to obtain answers to research questions. It includes the sequence of research activities and data collection techniques. For this study, data will be collected personally from 120 units

in the Hisser region. The design is primarily descriptive, with support from literature exploration, websites, case studies, and opinions from officials.
The sample size will consist of 120 respondents, comprising of 60 SSI units and 60 customers in HISSER CITY (HARLAN). A structured questionnaire will be used for the survey. Although this study is primarily focused on primary research, exploration will be conducted at an early stage to identify factors contributing to growth, efficiency, and effectiveness.Websites of Journals are examined to obtain information on various marketing issues. Officials from business units are asked for their opinions on marketing strategies for Seems in order to gather suggestions. The research will involve systematic data collection, analysis, interpretation, and collection. The T-test will be used when the standard deviation is unknown and the sample size is small. Therefore, I will use the T-test statistic for data collection because my sample size is small and the standard deviation is also unknown. The primary data type will involve filling out questionnaires. Two surveys will be conducted: one for marketers and another for customers, in order to address the right marketing issues and create a strong strategic framework for Seems.