Marketing of small business, A case of small business in India

Abstract

Marketing plays an important role in the success of any business organization. MSME sectors contributes towards growth the economy by creating employments and productivity. One of the typical problem faced by new start-ups are finding consumer for their goods and service. Though we know that marketing starts before the production of good s and services and doesn't end with the sell of the goods. Marketing is a continuous process focused towards identifying, creating and satisfying the customers. The task of the marketing is to minimizing the distance between producers and consumer so that both can establish an exchange relationship. In India most of the Micro small medium enterprises (MSME) units are started because of the subsidy and incentives of the government. They begins to face problem relating to promotion their units when the units become operational. This paper tries to evaluate the existing marketing system and different marketing issues faced by the MSME sectors. I. Introduction Identifying the needs and wants of the of the consumers and creating goods and services to fulfill these needs is the fundamental task of the marketing function. The main objective is to establish a profitable customer relationship with target customers. Achieving these objectives require far more effort than merely making goods and service available. Every new entrepreneurs must do a great deal of deeper marketing research to understand who are his customers and how best to serve them. Research activities is a must before opening the new ventures and it must continue so long the business exists. A budding entrepreneur must make a concerted effort to establish identify the customer segments and satisfy them by delivering superior value in products and services. The focus must be on long term profitability by creating reputation for service and quality. There must be integration of other business function with the marketing effort. The market research indicates the new opportunities which requires a marketing strategy to be developed by the entrepreneurs to succeed in the market. A well formulated strategy provides guidelines to for the entrepreneurs concerning the objectives to be achieved, allocation of results, tasks to be carried out by the marketing functions and controlling the activity of the enterprise. Indian MSMEs are in a better position than their counterpart in other Asian countries because of the growth prospects and higher level of incentives by the Govt. of India. The Micro Small and Medium Enterprises in India, constitute more than 90 per cent of the total number of industrial units and they form the backbone of industrial development. These unit are suffering because of the low scale of operation and lack of latest technology. The era of liberalization has created higher competition from the foreign imports, changing manufacturing processes, highly dynamic and changing market condition and the requirement for different strategies. There is need for MSMEs to innovate newer processes and strategies to develop products which differentiate form imported products. To face the higher level of competition from big corporates houses and MNCs, MSMEs need to be dynamic and proactive to the evolving marketing needs and innovations. The MSME sector needs to be supported with better market facilities so that they can sustain themselves and contribute to productivity, employment generation and foreign trades. Objectives of the study-  To evaluate the existing marketing framework for the MSME sectors  To highlight the problem faced by the MSME sectors in marketing products and services  To evaluate the international marketing opportunities.  To evaluate the different strategy in a competitive and globalised environment.