Analyzing the Distinguishing Features of Small Business Marketing Environment

This report analyzes the distinguishing features of the small business marketing environment, identifies key marketing and operational problems faced by SMEs, and compares standard marketing theory with small business research findings.

Entrepreneurial
Marketing

Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Analysing the distinguishing features of the small business marketing environment.................3
Key marketing and operational problems faced by SME............................................................4
Comparison and contrast of standard marketing theory..............................................................5
Learning skills required to achieve success and solve problems.................................................6
Articulate core ideas and concepts drawing on literature to support a conclusion......................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Entrepreneurial marketing can be defined as that process in which entrepreneur is been
engaged in promoting their business ideas and services. This type of promotion can assist
entrepreneur in making public aware about the various innovative and creative ideas brought up
by the organization or start-up. Present report will lay emphasis on Analyzing the distinguishing
features of the small business marketing environment. It will also Identify key marketing
operational issues faced by new ventures and small businesses in specified sectors and industries
in a global context. Assignment will also lay emphasis on comparing and contrast 'standard'
marketing theory and practice with that seen in the small business research findings
MAIN BODY
Analysing the distinguishing features of the small business marketing environment
As per the view of Verkade, (2018) the marketing environment in which small business
deals with really dynamic and changes in frequent basis. It has been analysed that there are
various external and internal factor that can affect the working of Small and medium sized
enterprises. Entrepreneurs of SME works in cautious working conditions. It has been analysed
that small business prefers in lowering down on selling out few number of differentiated
products. They also make sure that owners are engaged in analysing the needs and demands of
consumers. It has also been analysed that SME do not have access to high number of resources.
Small and medium sized enterprise works in that market conditions where consumers wait for
having different types of products and services with distinguish features.
So entrepreneurs of SME are engaged in providing consumers with high amount of creative
and innovative products. They are also engaged in giving high quality of services in order to
expand their business. Small business is also engaged in serving in area which is smaller in size
than large corporations. They are engaged in increasing their liking for specific communities. By
this way SME’s are engaged in setting up their market. Small scale business generally earns
lower amount of revenue than the large corporations as the area that has been covered by them is
also low. They make sure that their products and services are being liked by communities that
has been targeted by them. SME also have small team employed with them as the business that is
being served by them is also small. They are engaged in providing employment opportunities to
individuals who do not have any job. This has assisted them in enhancing life style of people.
SME also make sure that they are engaged in conducting loyalty program with consumers

personally. Entrepreneurs analyse the market conditions before entering to the business, they also
provide consumers with innovative and creative products so that loyalty can be enhanced. By
this way SME can increase their revenue and sales aspect. It is really essential for growth of
small business enterprise.
Key marketing and operational problems faced by SME
There are various marketing and operational issues which is being faced by small business
while setting up and expanding their enterprise. Like for example small business who are going
to enter into retail market faces challenges like lack of resources. They might do not have proper
plan or strategy related to how to manage resources and engaged in effective utilization of it.
Small business can also face various operational problems like for example it can be related to
health care (Lee, Che-Ha and Alwi, 2020). It is one of the most challenging aspect which needs
to be maintained by SME. Small business needs to make sure that employees are provided safe
and secure conditions. They might also face problem related to staying passionate. They might
lose confidence if consumers do not like their products and services.
Small business entrepreneurs who are running the business ion retail industry can face
operational issues like they do not keep up pace with ever changing expectations of consumers.
So they must be engaged in doing proper strategic planning. SME can also face difficulty in
promoting their products and services on online channels like social media. There might be
chances that they do not have an idea about how target consumers through Facebook, how to
communicate with them. This can lay serious impact on the quality of their work. SME’s
working in retail industry can also have problem relating to maintain trendy stores as they are
expensive (Mourtzis and et.al., 2018). This can reduce their efficiency in achieving their goals
and objectives. They can also find problems in choosing the right platform related to social
media channels. It has also been analysed that they can analyse the issues in producing and
delivering the right content through Facebook, Instagram and Twitter. So in order to overcome
form this problem SME can build up their business network. This can support them in
strengthening their business. It can also assist them in growing. Small business can also do not
have idea related to which outsourcing marketing activities can be used by SME. In order to
overcome the problem related to marketing and operational issues small business dealing in retail
industry can engaged in making marketing plan. This will assist them in analysing all the
strategies that can be implemented to overcome the problem.

Comparison and contrast of standard marketing theory
It has been analysed that in order to maximise the sales SME’s are being engaged in making
use of standard marketing theory. They are laying focus on increasing their profitability and sales
revenue. Research has provided us with details that in order to build up their brand it is really
necessary for company to make use of standard marketing theory rather than traditional
marketing theory. This will assist them in creating an image or brand. The standard marketing
theory basically includes PESTLE, SWOT, Ansoff matrix and Porters five forces. All these
frame work which is being used by business is different from each other. It also includes Maslow
hierarchy of needs.
PESTLE analysis can assist SME in analysing the internal and external factors that can lay
impact on working environment and decision making of company while SWOT analysis can
support company in knowing about their internal capabilities (Baronchelli and et.al., 2016).
Research has analysed that this model can assist Small business in knowing about their strength
and weakness. It also helps them in doing strategic planning so that they can maximise profit and
sales It can also assist various small and medium sized organization in knowing about the threats
and opportunities that is being faced by them. These standard marketing theories are really
essential for small business to make use of as it will help them in increasing profitability and
achieving their goals and objectives. Ansoff matrix model when used by SME can support them
in analysing growth opportunities. By this small business can analyse the areas where they can
expand their business.
It will also help small business in growing by increasing their business in new market area.
Porters five forces will allow SME in having an idea about the aspects that can assist them in
gaining competitive advantage. This framework will assist small business in analysing the
situation. It will be beneficial for firm. The other marketing theory that can be used by SME
includes Maslow hierarchy of needs. This will assist small and medium sized organization in
having an idea about the wants and preferences of employees who are working with them. It has
been analysed that marketing environment of small business is really competitive and dynamic.
So entrepreneurs need to be updated and also must be engaged in making use of advanced
technology for their growth. It will help them in creating consumer loyalty and will also attract
potential customers.

Learning skills required to achieve success and solve problems
Small and medium sized organizations is being engaged in providing high number of
innovative and creative products and services. So in order to grow it is really necessary for
entrepreneurs to have better learning skills and abilities. This will assist them in driving success
and also will help them in achieving goals and objectives. It will help entrepreneurs of small
business in growing. Various skills that needs to be built by them in order to achieve their short
term as well as long term goals and objectives includes the following:
Problem solving: Entrepreneurs of small business must possess this skill; it is necessary for
them to be a problem solver. It will help them in surviving through complex situation and make
better decisions (Musa and et.al., 2016). It will also assist SME in solving problem that is being
faced by them. If entrepreneurs of small business do not have this ability than their business
might go through loss. This can reduce their operational efficiency and productivity. If
entrepreneurs of small business are engaged in solving problem than it will assist them in making
better bond with their employees. It will help SME in creating employee loyalty which is really
necessary for their growth. It has been analysed that entrepreneur who are able to solve problems
that has been faced by their business can directly lay impact on quality of services provided by
them. This can assist them in expanding their business in new market.
Effective communication: It has been analysed that it is really necessary for entrepreneurs
to have effective communication skills so that problems can be solved at an urgent basis. SME’s
are being engaged in sharing their ideas with big enterprises by making use of effective
communication. They are involved in using advanced technology like Facebook, skype, video
chat to share their ideas with them. This will assist them in entering into new market. Effective
communication by entrepreneurs of SME will help them in building better relationship with
employees. It will also support them in analysing their needs and demands which can reduce
employee turnover in organization. It will also small business sin enhancing their profit share
and revenue.
Self-management: Entrepreneurs must also be engaged in self-managing themselves. This
will assist them in stopping the delays in task. It will also help them in improvising the quality of
services that is been provided by their small business. When entrepreneurs self-managed their all
task it can help them in making better decisions and achieving their goals and objectives. It can
support them in enhancing their confidence as well as esteem. Also it will help entrepreneurs in

clearly delivering the ideas which is really necessary for their growth. It will support small
business in increasing their profitability as well as revenue.
Articulate core ideas and concepts drawing on literature to support a conclusion
It has been analysed from the report that there are various marketing and operational issues
that can be faced by small business (Margaretha and Supartika, 2016). Like for example they do
not have adequate information and resources related to expanding business. They might do not
have proper plan or strategy related to how to manage resources and engaged in effective
utilization of it. It has been identified from the report that there is various framework which are
being related to marketing. Models like SWOT has assisted SME in knowing about their strength
and weakness.
CONCLUSION
From the above study, it has been summarized that SME has been working in dynamic and
changing environment. They have been affected by various internal and external factors lay
positive and negative impact on the working of firm. It has also been analyzed from the report
that small business is also engaged in giving high quality of services in order to expand their
business. They are also engaged in serving in area which is smaller in size than large corporation.
It has also been analyses from the report that SME has faced problems related to various
marketing and operational activities. They do not have an idea about which outsourcing channels
needs to be analyzed and used by them. It has also been analyzed that SME also do not have
adequate resources that can assist them in expanding their services and products.

REFERENCES
Books and Journals
Verkade, J., 2018. Credit scoring for small medium enterprises using transaction data.
Margaretha, F. and Supartika, N., 2016. Factors affecting profitability of small medium
enterprises (SMEs) firm listed in Indonesia Stock Exchange. Journal of Economics,
Business and Management.4(2).pp.132-137.
Lee, C.M.J., Che-Ha, N. and Alwi, S.F.S., 2020. Service customer orientation and social
sustainability: The case of small medium enterprises. Journal of Business Research.
Musa, H. and et.al., 2016. Adoption factor of mobile marketing: the case of small medium
enterprises in Malaysia. International Review of Management and Marketing. 6(7S),
pp.112-115.
Padachi, K., Narrainen, D. and Boolaky, A., 2018. Prototyping an innovative e-platform of
financial assistance for small medium enterprises in Mauritius.
Baronchelli, G. and et.al., 2016. The impact of family involvement on the investments of Italian
small-medium enterprises in psychically distant countries. International Business
Review.25(4). pp.960-970.
Mourtzis, D. and et.al., 2018. Enabling Small Medium Enterprises (SMEs) to improve their
potential through the Teaching Factory paradigm. Procedia Manufacturing, 23, pp.183-
188.

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