Transcript Marketing problem

Marketing Management
Are You Making Any of These
10 Deadly Small Business Mistakes?
 Getting Wedded To an
Idea And Sticking With
It Too Long.
 No Marketing Plan.
 Not Knowing Your
Customers

 Ignoring Your Cash
Position
 Ignoring Employees.
Are You Making Any of These
10 Deadly Small Business Mistakes?
 Confusing Likelihood with Reality.
 No Sales Plan.
 Being a Lone Ranger
 No Mastermind
 Giving Up.
CASE STUDY:
 Small Scale industrial
enterprises of Assam
& the North-East
Region
 failed to meet the
requirements of the
marketing philosophy
 Marketing practises
cover a wide range of
activities which have a
direct or indirect
bearing upon the
marketing practises
Area of operation:
Sl
 The market area spread of a
unit denotes its marketing
strength
 largest market area spread is
to be found within the district
 25.3% of the units surveyed
have their marketing thrust
within the district only. while
21.8% of the units are having
their market spread within the
region
 represented by the State of
Arunachal Pradesh
Geographical area
N
spread of market
o
:
No of
u
n
it
s
Percentag
e of
total
1
Local area only
9
11.4
2
Neighbouring towns also
13
16.5
3
Within district only
20
25.3
4
Within the state only
10
12.7
5
Within the region
18
21.8
6
Other region
8
10.1
7
Abroad
1
1.2
Total
79
100.0
Ranking table
Sl no
The entrepreneurs
were asked to rank
their market area in
the order of their
performance
Weighted scores
were calculated for
each of the market
1
2
3
4
5
6
7
Market area
No of entreprenrenuers giving Total rank
the rank of
weight
Local area
32 8 8 4 - - Neighbouring towns 13 14 1 - - - Within the district 17 17 4 - - - Within the state 8 7 3 - - - Within the region 3 10 4 1 - - Other region
6 - 2 - - - Abroad
- - - 1 - - -
316
180
241
113
105
52
4
1
3
2
4
5
6
7
Ranking table
major marketing operation
of the small scale units
concentrates within the local
area
ranking of all the 79
entrepreneurs on the basis
of their performance
Only 8 (10.1%) units could
affect their marketing thrust
in other region, while out of
these 8 units, 6 units have
their main marketing
operation in those areas.
Ranking table
negligible proportion
of the sample units
could send their
marketing thrust to
the foreign market.
The market area
spread of the
sample small scale
units is not much
extensive in a
regular basis
Standard and quality:
an important aspect of
production which has a
significant bearing upon the
marketing of a product
consumers are both quality
and fashion conscious, any
disregard to this vital aspect by
a producer is bound to create
marketing hardship to the
sellers of the product.
Table showing the standards
Standard and quality:
Sl
Standard followed
n
o
No of
units
Percentag
e of
the
total
1
Own
44
55.7
2
ISI
3
3.8
3
Govt
3
3.8
4
Buyers’
22
27.8
5
Both own and
buyers’
7
8.9
Total
79
100.0
Channels of distribution
The entrepreneurs
were asked to
specify whether
they sell their
products directly to
the consumers
“direct selling” is
the most popularly
used channel of
distribution among
the sample units.
S Channel
l
n
o
No of
unit
s
Percenta
ge
of
the
tota
l
1 Direct selling
35
44.3
2 Selling through
intermediar
ies
24
30.4
3 Both
20
25.3
Total
79
100.0
Channels of distribution
The entrepreneurs
were asked to specify
whether they sell their
products directly to
the consumers
“direct selling” is the
most popularly used
channel of distribution
among the sample
units.
Channels of distribution
The simplest form of
distribution for the producers is
to sell directly.
market intermediaries have
come to occupy a significant
place.
numerous specialised
marketing functions like
distribution of the products,
warehousing, sales promotion
services like advertisement,,
selling against credit are
entertained by the
occupational traders
Channels of distribution:
 market intermediaries are in
touch with the market
environment, they well gauge
the possible change that may
take place in the market
environment and suggest to
the entrepreneurs
 in case the consumers are
very few in number and the
product requires special
services after sale, then a
direct line of contact between
the producer and the
consumer should be preferred.
Channels of distribution:
the channels of
distribution are
considered
between two broad
groups, viz. “direct
selling” and “selling
through intimidates
Direct selling
Selling through
intermediaries
Government
organisations/de
pts.
Sole selling agents
Large and medium
Selling agents
Industrial units
Stockists
Door to door
Wholesalers
Branch/show room
retailers
two broads of distribution channels
Direct Selling (N=
55)
Channel decryption No of
units
Govt
28
organisations/depts.
Large and medium 15
industrial units
Door to door selling 2
Brach/show room
34
Selling
%
50.9
27.3
3.6
61.8
Channel
description
Sole selling
agents
Selling
agents
Stockists
Wholesalers
Retailers
Through
Intermediaries
(N=44)
No of units %
2
4.5
4
9.1
2
24
26
4.5
54.5
59.1
Mode of Sale-Credit:
The producers in most
cases are forced to sell on
credit to satisfy the needs
of the customers.
In Buyers market the
entrepreneurs are always
at the mercy of the buyers
in regard to receiving their
sale proceeds and keeping
demand for their products
at proper footing.
delay in receiving salesproceeds creates severe
financial constraints to the
entrepreneurs
effects like delay in supply,
degradation of quality
Marketing Survey:
to attain success -a planned
effort in every direction of
business activity
management must acquire a
thorough and adequate
knowledge about the prevailing
market condition of the product
Enterprise must make a
market survey, before the
project is started
It requires specialized
knowledge and experience
Marketing Survey:
Small scale business do not
possess technical functions on a
regular basis, nor it becomes
possible for the small
entrepreneurs to employ
professional experts.
in many cases, the units run only
on a marginal basis and are
unable to undertake promotional
activities incurring heavy cost
that most of the entrepreneurs do
not have any plan for their future
course of action and they are
unaware of the importance of
market research or survey.
Advertising:
advertising informs the consumers
about the existence of a particular
brand of product in the market, its
quality and comparative
superiority etc
As Fedrick R.Gamble mentioned
that “Advertising is the greatest
accelerating force in distribution
reaching many people rapidly with
low cost, advertising speed up
sales, turns customers in large
number at right speed.”
 advertising has the greatest
opportunity and responsibility for
finding consumers in an economy
with mass production and high
consumption.
Media of advertisement adopted
by the sample units:
Medium of Advertisement
No. of units
Percentage of the total
Calendar
Usable free gifts
Local newspapers/
journals/souvenirs etc
Advertising in hoarding
Advertising in cinema
slides
Radio / T.V
17
8
53.1
25
5
2
15.6
6.3
1
-
3.1
-
Break-up of the units which suffer from marketing
problem, according to industry groups and reason
behind marketing problem:
No. Industry
Groups
facing
marketing
problem
1
Food and
allied
products
2
Textiles
3
Wood
products
4
Leather and
allied prod.
5
Plastic
products
6
Chemical
7
Ceramics
8
Transport
equipments
and repairing
9
Metal
products
10 Machinery
11 Non-metallic
mineral
products
12 Miscellaneous
Total
No. of
units
facing
marketing
problem
9
Competition Competition Competition
with the
with the
with the
local units
local units
units of the
other region
Change in
technology/
consumers’
habit
6
3
-
-
5
3
3
1
2
2
-
-
2
-
2
-
-
1
-
-
-
1
3
1
4
1
4
3
-
-
-
7
7
-
-
-
5
3
1
1
1
1
3
-
1
3
46
2
26
1
15
3
1
2
Break-up of the units which suffer from marketing
problem, according to industry groups and reasons
behind marketing problem
competition is found to be most keen in
case of two industry groups viz. transport
equipment and repairing and metal
products.
Competition with the industrial units
operating from other region of the country
is prevalent in case of 8 industry groups,
while the severity is to be found in case
leather and allied products, and chemical
industries.
Break-up of the units which suffer from marketing
problem, according to industry groups and reasons
behind marketing problem
Decay of the industrial
units using products of
small scale units as raw
materials led to marketing
setback of the latter in the
district
Changes in technology
and consumers’ habit
have also brought about
marketing barrier among
small scale units of the
district
Marketing problem
No. Reasons for
marketing
problem
1
2
3
4
Competition
with the local
units
Competition
with the units
of other
regions
Downfall of
the industrial
units
Change in
technology/
consumer’s
habit
Total
No. of units giving the rank
of
Total
Total
weighted no. of
units
scores
3
2
1
18
6
2
68
26
8
7
-
38
15
1
2
-
7
3
1
1
-
5
2
28
16
2
118
46
Marketing Strategy:
Determining the
present situation
determining
marketing goals
developing a logical
plan for getting from
the present situation
to the final goal.
Good entrepreneur identifies
marketing goals
Specific c – for example,
earn $30,000 in net sales
 Measurable - target date
for completion
Attainable – not so high
that you cannot reach them
Rewarding – they reflect
the reasons you started the
business in the first place
Timeline – they should
include short term and long
term goals

THANKYOU