SMALL AND MEDIUM ENTERPRISES

Designation for firms of a certain size which fall below certain criteria (that varies from country to country) in terms of annual
turnover, number of employees, value of assets, etc. is known as SME.

ROLE OF SMES
According to the statistics, in industrialized countries, SMEs are major contributors to private sector employment.
Empirical studies have shown that SMEs contribute to over 55% of GDP and over 65% of total employment in high income countries
.SMEs and informal enterprises, account for over 60% of GDP and over 70% of total employment in low income countries, while they
contribute about 70% of GDP and 95% of total employment in middle income countries.
According to the Small and Medium Enterprises Development Authority (SMEDA), "SMEs constitute nearly 90% of all the enterprises
in Pakistan; employ 80% of the non-agricultural labor force; and their share in the annual GDP is 40%, approximately.
In Pakistan SME sector is not only the minor sharer till yet, reality is that Pakistans whole economy is highly dependable on the pace
and productivity of SMEs. Out of Pakistans 3.2 million enterprises 95% are those who possess 99 employees in private industrial
sector and employ about 78% of non-agriculture labor force. SME contributes 25% export of manufacturing goods and 30% of GDP is
the outcome of business efforts of SMEs.

WHY IS MARKETING IMPORTANT?

1. IT HELPS BOOST SALES

Marketings primary function in most small businesses is to generate more sales. Commonly, this could be through either selling
more to current customers or increasing the number of customers. How marketing does this is by creating variables in one or more
of the 4Ps (i.e. product, price, place or promotion).
In the end, no marketing activity should be undertaken unless you are sure it will generate a decent return for your time, money and
effort.

2. IT HELPS YOU IDENTIFY AND FOCUS ON NEW OPPORTUNITIES

In cases where budgets are low, sales are stagnant or where you have too many ideas that you dont know where to begin, then the
marketing planning process helps you to focus your time and resources on where it will count. This could include developing new
product or service offerings, targeting new potential customers or even entering new markets altogether to achieve your overall
business objectives.
3. IT HELPS YOU MAINTAIN OR IMPROVE MARKET SHARE

Marketing is a fantastic weapon for nurturing your current customers so that they stay with you or lifting your head above water in a
competitive environment. Success here will depend on peoples perception of your business, your ability to develop meaningful
relationships with them and what value you can give them.
4. MARKETING CAN STEADY OUT YOUR REVENUE FLOWS

This is particularly a big issue in many small businesses (for example: florists, gift shops, etc) who experience seasonal peaks and
troughs in their sales. Unfortunately, when youre busy, you probably wont have time to look at building sales during quieter
periods and when you are quiet, its already too late. One of the many functions of marketing is to create a more even revenue flow,
but forward planning is of the essence.

WHAT TO DO:
1. UNDERSTAND YOUR MARKETS

This is all about research and information collection so that you get a clear picture of who your current customers are (i.e.
demographics, personal interests, buying behavior, etc.), what will influence their likelihood to buy and who else could be buying
from you.
Great places to start are customer feedback surveys, talking to your sales staff, the Australian Bureau of Statistics and the internet.
2. DEVELOP MARKETING STRATEGIES THAT WILL HELP ACHIEVE YOUR BUSINESS OBJECTIVES

There is no point in spending time, effort and resources on a marketing idea that sounds exciting if it doesnt contribute to your end
goals. By spending time to create the right strategies, you will avoid unnecessary risks, wastage of resources and get the biggest
bang for your dollar!
3. CREATE A REALISTIC MARKETING PLAN

To do this, you will need to generate ideas that fit with your strategies and business objectives. Marketing activities should increase
in the lead up to quieter sales periods and must take into account your current available resources (not just budgets). You also need
to understand that a marketing plan is a dynamic document, so it should be regularly reviewed especially as conditions change in
your operating environment.

PUNCH LINE
So, whether times are good or bad, marketing needs to be recognized as a fundamental operation for any small business, not just to
fix problems now but to also ensure future success. This means forward planning is of the essence.