760 The Marketing Book
distinctive style and focus of decision making.
In compensating for much of the limitations it
is recognized that entrepreneurs will possess or
develop counteractive capabilities for decision
making specifically refined to exploit the
opportunities best suited for an SME.
Incompatibility of marketing theory to SMEs
It is clear from the previous section that the
inherent characteristics and style and influence
of entrepreneurs will impact substantially, per-
haps even completely upon the type and nature
of marketing in SMEs. An interesting question
is to ask, ‘What is the type and nature of
marketing in SMEs’? Simply by asking such a
question suggests that somehow SME market-
ing may be different to marketing elsewhere. In
which case how and in what way might it be
different? Perhaps more fundamentally, do
SMEs perform marketing according to textbook
frameworks and if so, then what are the
differences? Alternatively, if SMEs do not do
marketing according to textbook frameworks
then why not and what is the type and nature
of such marketing if it does not conform to
textbook frameworks?
In considering some of these issues it is
perhaps useful to examine the inherent charac-
teristics of some textbook marketing approa-
ches. The rest of this section considers these
characteristics in relation to marketing plan-
ning and market research and also by way of
example, textbook issues of segmentation and
niche marketing, market share and pricing.
Marketing planning
This is a much vaunted tool of good pro-
fessional marketing which has many clear and
precise descriptions in the textbook literature.
There is no doubt that it has substantial benefits
when used comprehensively. The literature is in
general agreement that it is a valued tool of
marketing. Consider for a moment, the inherent
characteristics of marketing planning. It is
fundamentally sequential in that it follows a
careful and logical process from appraisal
through to evaluation and analysis before
devising carefully considered and alternative
courses of action for implementation. It is also
formal and structured in its frameworks. By its
very nature it carries comprehensive time
scales covering short-, medium-and long-term
dimensions.
The prior debate on entrepreneurial charac-
teristics contended that decision making is
inherently simplistic and haphazard, undis-
ciplined and spontaneous, unstructured and
irrational and invariably short-term in time
scales. In comparison to the inherent character-
istics of marketing planning outlined above,
there is a clear incompatibility between this
textbook technique and the way entrepreneurial
decision making is naturally performed. Indeed,
it would be very unnatural, if not impossible, for
an SME entrepreneur/owner/manager to plan
marketing according to textbook frameworks.
SMEs, because of their relative smallness and
therefore their lack of market or industry
dominance, must be very flexible and reactive to
changes in market circumstances; a formal
marketing planning procedure would inhibit
such flexibility and reactiveness.Market research
Textbook market research frameworks can be
traced back to the rigour and validity require-
ments of social science research. Again such
rigour requires formality, sequentiality, validity
and correct application of one best method for
research. As with the incompatibility of market-
ing planning, SME’s inherent limitations make
it virtually impossible for such enterprises to
carry out market research according to textbook
principles. Lack of money and expertise com-
bined with short time scales would make it
unlikely that SMEs entrepreneurs/owner/
managers would do textbook market research.
Instead, the inherent characteristics of the