“An Enterprise may have a great product, but it will not translate into success unless it is marketed well”.
This statement tends to be true especially for SMEs and start ups, which may not have huge funds for spending on promotional exercises or may lack skilled resources to conceptualise a need for a marketing plan. Research by various agencies suggests that SMEs in pursuit of organizational goals do not adopt the marketing concept to the same extent as the large firms do. Also, marketing practice at SMEs, tends to be situation specific and variable in terms of sophistication & effectiveness.
However, SMEs need to understand that a good product backed by comprehensive marketing initiatives can effectively take them on the path of growth. But at the same time, only marketing efforts may not be enough in this uncertain environment that is characterised by rapid globalization and trade liberalization. Innovative marketing could be the key.
Utilising innovative marketing efforts, SMEs can overcome challenges like poor cash flow, tactical customer related problems etc. to generate higher sales. Let us now look at few innovative marketing initiatives that could be undertaken by SMEs.
Marketing of any firm is characterised by 4Ps namely product, promotion, placement and price, all of which together constitute the offering to customers. I would like to put them as ‘Marketing Variables’. Few initiatives under this could be:-
• Product innovation with an incremental approach that incorporates the customer in this process, resulting in a more customised product for the customer.
• Alteration of marketing mix that could involve developing creative & novel solutions to problems along with emphasising on the implementation of these solutions.
• Altering distribution channel by utilising alternative distribution channels & methods of product distribution which could give competitive advantage, cost efficiency and customer satisfaction.
Being Proactive and embracing change are critical elements of innovative marketing. A monthly review of marketing plan towards its validity & results, as against set targets can give the firm a sense of need for pro-action and a change.
Integrated Marketing is core to innovative marketing idea. So all the innovative marketing activities must be guided by profit, are market led, reactive and are continuous. These activities should be grounded in existing activities & practices and be built upon an integrated approach to doing marketing.
Innovative marketing depends a lot on the ‘Unique proposition’ offered by the firm. The unique proposition could be derived from new products/ processes or unconventional tactics & activities.
Lastly Customer Focus and Market Focus are two key elements of innovative marketing. Incorporation of Customer satisfaction and Customer orientation should be given prime importance, because these attributes lead to establishment of loyal customers & also to certain degree of relationship with them. A vision is the guiding force for all marketing decisions at the firm. So having a proper vision in place is important. Market focus involves establishing a vision, setting profit goals and having a market centric approach. Market centred approach can help exploit the opportunities that larger firms have either ignored or have not been able to exploit due to bureaucratic structures and rigid processes.
This list may not be an exhaustive one, but with these few innovative strategies SMEs can look forward to higher sales and better profitability.
Contributed by Manohar Gadre
SME JoinUp Blog (2012) 