CHAPTER 29
Marketing for small-to-medium
enterprises
DAVID CARSON
Introduction
What is ‘marketing for SMEs’ and why should
it be treated as a separate topic? There are two
strong reasons why it is important to view
marketing as being different in this context.
One is the recognition that SMEs (small to
medium sized enterprises), are not simply little
big business. By a definition of size they are
certainly small to medium sized in relation to
large corporations; however, as a consequence
of its size an SME has unique characteristics
which make it distinctly different, not only to
large corporations but also to many or all other
enterprises. A significant second factor is the
relative number of SME enterprises to large
corporations; in any market or region the vast
majority of enterprises will be SMEs with only
a few large corporations. A consequence of this
is that most people who work in marketing are
likely to work in SMEs. Of course, many high
profile marketing jobs will belong in large
organizations but most marketing and related
jobs are to be found in SMEs. Further support
for this argument can be found by recognizing
the growing size of the service sector of any
economy and acknowledging that most service
firms are inherently marketing orientated and
also SMEs.
There are a number of implications arising
from the above which this chapter attempts to
address. Consideration is given to the unique
characteristics of SMEs and how these charac-
teristics impact upon the activities of SMEs.
Recognition is also given to the influence of the
entrepreneur/owner/manager and his/her
strengths and weaknesses. A significant realiza-
tion arising out of this is the incompatibility of
SME capabilities and activities and much of
marketing theory. This is illustrated in this
chapter by comparing textbook marketing the-
ory and SME marketing in practice. Following
this an examination is made of the nature of
SME marketing which allows a framework to
be devised for effective SME marketing based
upon the inherent strengths of such enterprises.
This framework is presented as a model of SME
marketing.
At the conclusion of this chapter the reader
can expect to have gleaned an understanding of
SMEs’ marketing practices and a realization that
this marketing is different to conventional
descriptions and practices as preached in the
textbook literature. The reader is not required to
decide whether one or the other is better, but it is
hoped that s/he will have an appreciation that
there is some sort of difference which needs to be
acknowledged. The reader can expect to know
how an SME entrepreneur can improve his/her