Contribution of Entrepreneurial Theory to SME Growth: Marketing

This report delves into the realm of entrepreneurial marketing, examining its application within small and medium-sized enterprises (SMEs), with a specific focus on the 'need for achievement' theory and its influence on business growth. The report begins by defining entrepreneurial marketing and contrasts it with traditional marketing approaches, highlighting the importance of innovation. It then analyzes the marketing environment of SMEs, including demographic factors and the limited marketing area, using the Red and Blue restaurant as a case study. Key marketing operational issues faced by new ventures and SMEs, such as lack of funds, lower visibility, and limited marketing knowledge, are discussed. The report then compares and contrasts standard marketing theory with practical marketing applications like word-of-mouth and innovative techniques, emphasizing the advantages of the latter for SMEs. Furthermore, it differentiates between large companies and SMEs, focusing on employee strength, organizational structure, and the speed of implementing changes. The core of the report critically discusses the entrepreneurial theory of the 'need for achievement' and its relevance to marketing practices, highlighting the importance of marketing activities in enhancing sales and profits for SMEs. The report concludes by summarizing the key findings and reinforcing the significance of entrepreneurial marketing for SME success. The report uses various references to support its arguments and findings.

Entrepreneurial Marketing
Title: Contribution of entrepreneurial theory such as
Need of achievement in the growth of SME Red and Blue
restaurant.

Table of content
Introduction
Analysis of distinguishing features of small business marketing
environment
Key marketing operational issues faced by new ventures and small
businesses
Comparison and contrasting of standard marketing theory and practice
Difference between large companies and SMEs
Critical discussion of entrepreneurial theory and marketing practice
Conclusion
References

Introduction
Entrepreneurial marketing is the mode which is used by
organisations to market their products and services in different
manner as compare to traditional marketing (Mcmullan and
Kenworthy, 2016). Innovative ways are used in this mode to
enhance awareness of customers about the goods. The theory
which is selected for this presentation for Red and Blue
Restaurants is need of achievement.

Analysis of distinguishing features of
small business marketing environment
Marketing environment can be defined as the accumulation of
different internal as well as external forces and factors which
may affect ability of an organisation to maintain relationship with
customers and serve them better. Red and Blue restaurant is one
of the top small and medium business enterprises which is
operating its business in Manchester, United Kingdom.

Continued...
There are various features of its marketing
environment which are described below:
Demographic environment: Small
business entities such as Red and Blue
restaurant have demographic environment
where they operate business. All the food
items which are sold and marketed for the
customers are based upon their age,
income level, education, gender etc.

Continued...
Small area to market: Small businesses do not have to focus on
the marketing area because they cover a small area where they
are selling their products and services. Red and Blue restaurant is
also a part of SMEs which is covering Manchester and the
management in the organisation is not required to be worry about
the marketing area (Lechner and Gudmundsson, 2014).

Continued...
Productive employees: In most of
small businesses there are
productive employees who perform
all their jobs in appropriate
manner. In Red and Blue restaurant
there are various responsibilities
such as marketing, consumer
service etc. of staff members which
are required to be fulfilled by them
properly.

Key marketing operational issues faced
by new ventures and small businesses
Business entities conduct marketing activities to spread
awareness regarding different products and services which are
sold by them to the customers. Most of the small and new
business enterprises have to face different types of marketing
challenges (Burns, 2017).

Continued...
Some of them which are majorly affecting the procedures which are
followed by Red and Blue restaurant to market itself are described
below:
Lack of funds: In order to conduct marketing activities it is very
important for the companies to spend money in it. For small and medium
sized organisations such as red and Blue restaurants it is not possible to
invest higher monetary resources to market itself. It is one of the biggest
issue which is faced by the enterprise (Richter, Kraus and Syrjä, 2015).

Continued...
Lower visibility: Small businesses
have very low visibility all around
the world or the area where they are
operating executional activities. It is
also a issue which is faced by Red
and Blue restaurant because it is a
small enterprise which is famous in
the area where services are rendered
by it to clients.

Continued...
Lack of knowledge about
marketing processes:
Small businesses do not
have detailed knowledge of
marketing activities and to
overcome it they have to
hire experienced person
which results in increased
cost.

Comparison and contrasting of standard
marketing theory and practice
Standard marketing theory: It can be defined as the set of
different modes of advertisement and promotions which are used
by organisations to spread awareness regarding their products
and services. With the help of it sales and revenues could be
enhanced by the organisations. It could be used by small
businesses such as Red and Blue restaurants to attract large
number of customers by promoting the food (Hisrich and
Ramadani, 2017).