Marketing Problems of Small Scale Units
All sorts of businesses confront marketing challenges, but small-scale businesses encounter them much more acutely due to a lack of knowledge, enough funding and experience. The following are some of the marketing issues that small business owners in India frequently face :
1) Large-scale sector competition : Due to a lack of resources, small businesses often adopt inferior technologies. As a result, their goods are not uniform. They use antiquated technology, which translates into lower product quality.
2) Lack of marketing knowledge : The majority of small-business owners are not well-educated or professionally equipped to understand marketing concepts and strategies. Their lack of expertise makes it even more difficult for them to recognize industry trends.
3) Product quality : Having quality testing and assessing equipment is expensive and challenging for a small business.
4) Weak bargaining power : Large-scale entrepreneurs are able to obtain significant discounts and credit when purchasing inputs. Small businesses do not have access to such amenities.
5) Lack of sales promotion : Small units lack the resources and knowledge necessary for effective sales marketing, whereas large-scale units typically have well-known brands names. They also have a lot of money to spend on advertising and other forms of sales promotion. Smaller units on the other hand, must pay a high commission to dealers for their frothier sales efforts, reducing profit margins.