Investigating the Marketing Performance within SME's

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Introduction / Research Background

Marketing is a key function of every organisation, no matter how small or large the organisation is. However, understanding of marketing may be low in small and medium sized enterprises (SMEs) as compared to large organisations. The function of marketing in SMEs is affected by variety of constraints. These constraints include business size, poor cash flow, tactical and strategic customer-related problems and lack of marketing expertise (Chaston, 1998; Doole et al., 2006). In spite of such restrictions or constraints, SMEs have been successfully using marketing strategies to generate business (O'Dwyer, Gilmore & Carson, 2009, p. 47). This has been due to the differentiated and innovative marketing practices adopted by the SMEs that have helped them increased their sales. Since SMEs do not have high level of resources as compared to the resources available to the large organisations, it is important for them to utilise cost effective marketing strategies (Golfetto & Gilbert, 2006, p. 908). Thus, SMEs use both online and offline marketing tools that are cost effective. These tools include networking, social media, relationship marketing, pay per click, search engine optimisation and so on. These tools help SMEs spread their message to a wide range of audience at a very low cost. It is important to understand the performance differentiated and innovative marketing tactics adopted by SMEs to understand which tools have been more effective than others. Therefore, the purpose of this study is to investigate the marketing performance of SMEs in UK.

Project Aim and Objectives

The aim of this study is to investigate the marketing performance of the SME's. This aim will be achieved through the following objectives:

To highlight the characteristics of SME marketing

To identify the marketing tools adopted by SMEs in UK

To examine the performance of various tools adopted by SMEs in UK

To suggest ways through which UK based SMEs can increase their marketing performance

Review of Existing Work / Literature

Difference in Small and Large Business Marketing

The marketing requirements of small businesses are highly different from the marketing requirements of large organisations. Therefore, the marketing strategies also differ for both types of organisations (O'Dwyer, Gilmore & Carson, 2009, p. 51)

. The most important difference between the two types of organisation is the availability of funds and other resources that can help the marketing campaigns to sustain. Since SMEs have a low or limited budget, the firms need to make the most of it from it, which means developing a more focused and meaning marketing campaign (Zwick & Cayla, 2011, p. 27). On the other hand, the larger enterprises have extensive budgets at their hands and thus, they are able to afford to invest long-term in marketing activities in order to create a brand name (Zwick & Cayla, 2011, p. 29). The SMEs, however, market their products and services with the aim of selling them with immediate effect on consumers' minds. Thus, the marketing approach of SMEs is direct and personal and prefers reaching out to potential customers directly (O'Dwyer, Gilmore & ...