Marketing for small-to-medium enterprises 765
SME marketing based on strengths
A number of approaches are described here,
which both reflect and contribute to SME
marketing based upon strengths. In this section
the following are considered:
adaptation of standard textbook marketing
frameworks
marketing in ‘context’ (situation specific
marketing)
‘alternative’ SME marketing
competency marketing
network marketing
scope of ‘innovative’ marketing
It needs to be recognized that while each of
these approaches are about marketing, in prac-
tice none of these are likely to be performed as
marketing. Instead, they will be performed as
part of ‘doing business’ and taking decisions. As
an illustration of this notion, consider the
marketing activity of pricing. Decisions on
pricing will probably be driven by considera-
tions with regards to cost or cash flow, as much
as any specific pricing policy. Of course, such
decisions will impact upon pricing and an
entrepreneur will be intuitively aware of this in
the same way s/he will be aware of a price
change because of competitive pressure and
how this will impact upon bottom line costs and
cash flows within the business. Thus, although
the following descriptions focus upon market-
ing aspects, they must be considered in the
wider context of overall business decision
making as much as marketing decision making.
Adaptation of standard textbook
marketing frameworks
In most SMEs marketing will be performed in
some form or other. Marketing is inherently
and intuitively performed in SMEs. Since most
SMEs will have a productorservicewhich they
will offer at a priceand they will promotethis
through some kind of medium that reaches
their market place, it can be easily determined
that SMEs marketing can be described under
the frameworks of the ‘four Ps’. Again, at the
general level, this is undoubtedly true, how-
ever, in just about every circumstance an
entrepreneur will ‘adapt’ this concept to suit
the situation specific of his/her firm. Since this
situation specific will be structured around the
functions and activities of the firm itself, the
marketing activity will be closely allied to this.
Therefore, if image and personal service are
important features of an enterprise’s standing,
these will be an integral part of its marketing
mix. Often the product isthe firm, so this too
will be an integral part of its mix. Such an
SME’s marketing mix therefore, may be noth-
ing more than this. Of course, many of the 4P
aspects will be inherent in the SMEs activities,
for example, communication and delivery will
be inherent aspects of image and personal
service. Clearly, the concept of the ‘4Ps’ will be
adapted to suit the SME. An entrepreneur may
find it sufficient to describe a marketing mix as
product, image and personal service.
For an SME practitioner to accept a concept
such as the ‘4P’s’ it must have relevance,
therefore, if a simple ‘4Ps’ description is not
relevant to an entrepreneur it will not be used.
There is a significant point here, that is,
marketing activities in SMEs will always by
pragmatic, practical and relevant to the individ-
ual SME; anything which does not meet these
conditions is academically theoretical and of
little value.
An illustration of ‘pragmatic, practical and
relevant’ adaptation is provided by the market-
ing planning process. This was highlighted
earlier as being of little relevance to SMEs
because of its logical foundations which are
incompatible with the inherent characteristics
of SMEs and entrepreneurial decision making
practices. However, some aspects of the mar-
keting planning process may be performed in a
pragmatic, practical and relevant sense. Take as
a point in example, the notion of market