International Journal of Management and Commerce Innovations ISSN 2348-7585 (Online) Vol. 7, Issue 2, pp: (1280-1282), Month: October 2019 - March 2020, Available at: www.researchpublish.com
Small and Medium Sized Enterprises (SMEs) and Innovative Marketing 1
Aravind A, 2Ashil George
Christ University, BGR campus, Bengaluru, India
Abstract: The purpose of this paper was to investigate the concept of innovative marketing and how it manifests itself in the context of small‐to medium‐sized enterprises. This paper also helps to find out certain challengers faced by the SMEs. The literature relating to the characteristics of SMEs, and innovative marketing are reviewed to identify the key elements of innovative marketing and SMEs. This research and the key elements identified contribute to an overall conceptualisation of innovative marketing for SMEs. Keywords: SMEs, MSME, Innovation.
1. INTRODUCTION SMEs play an important role in the development of the economy and in the growth of the world economy as well. In India the 36 million-unit MSME sector provides employment to more than 80 million people. The sector through more than 6000 products contributes about 8% to GDP besides 45% to the total manufacturing output and 40% to the exports from the country. The importance of SMEs to growth of the Indian economy is on the whole. Indian are classified according to Micro Small and Medium Enterprise (MSME) Act 2006 considering investment rations for manufacturing sectors and service sectors both it considers investment in plant and machinery. There are different contextual factors and pressures that help to affect the marketing of SMEs in a way that maximizes SME benefits. Components of this moulding phase involve modifying operations to run in a complex competitive environment with various resource constraints, separating decision-making and networking between owner / manager and client focus. Thus SME marketing activities and practices are moulded to take account of competitors, customers, the business environment and the SME's resource limitations and are heavily influenced by the owner / manager's decisionmaking and inherent skills and abilities. Given that marketing creativity plays a fundamental role in the effectiveness of SEMs in the current competitive environment, knowing the effects of various marketing activities on creative marketing is important. Certain marketing approaches traditionally focus on the marketing mix. However, instead of focusing on the traditional marketing paradigm of the 4Ps (product, price, place and promotion), or the 7Ps adopted by service marketing (product, price, place, promotion, people, process and physical evidence), entrepreneurs stress the importance of promotion and word-of-mouth, and have identified one of the unique selling points of their business as the nature of their personal contact with customers and their focus on the four Is (Information, Identification, Innovation and Interaction) SMEs are also confronted with HRD-related issues, infrastructure-related issues and global environmental challenges in terms of lack of skilled manpower, lack of training, lack of motivation, lack of water, lack of transportation, political challenges, social challenges, cultural challenges, lack of market knowledge, lack of public awareness, etc.
2. LITERATURE REVIEW According to Gisha. P.Mathai (2015), the problems faced by small and medium-sized enterprises in India are the problems of lack of bank credit facilities, infrastructure problems, lack of raw materials, lack of technology, lack of training, lack of managerial and technical skills, lack of labor laws, competition from big companies Neeru Garg (2014) says MSME's in India face a lot of possibilities and problems. He found that many opportunities from external environment are finance and subsides provided by government, by globalization, credit & finance, competitive
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