What Small Businesses Identify as their Marketing Challenges: A Narrow or Broad View of Marketing?

Abstract

Over the past decade and a half, the industrialized nations have undergone major restructuring; large companies have eliminated thousands if not millions of jobs. Whatever growth in employment that has occurred has come in small, entrepreneurial businesses. Yet, small businesses continue to face changing customer expectations and competitive threats. Owners/managers increasingly report that marketing difficulties are their largest problem area. This study investigated small business operators’ understanding and use of marketing, focusing on major decision challenges. Marketing is still considered mostly as promotion, and small business owners report most problems with promotion decisions. Pricing is still competitor-based, but product assortment is becoming more consumer driven.