Challenges faced by small companies in developing and implementing a markeing strategy
Growth Strategies In order for small businesses to be successful they must develop growth strategies. ... Smaller companies are advised to promote the uniqueness of their product and develop on the difference it has from their competitors in the market. ... Smaller companies should highlight the strengths of their products and their organisation if they are to grow successfully. ... The development of these growth strategies may lead smaller companies into a larger market. ... However, some of the problems that are faced by small companies who wish to expand their business abroad are as follows: · Although aid is sometimes given to smaller companies who wish to expand their market. Financing is sometimes more difficult to obtain as Institutions are more reluctant to finance smaller companies who have little or no collateral. · Small businesses must also be weary when choosing their foreign partner or distributor. ... · Smaller companies should not under estimate the guidelines and regulations that must be followed as part of exporting their product. ... · Geographical, which is defined by states, regions and countries · Behavioural bases, which is defined by product knowledge, usage, attitudes and responses · Psychological bases, which is defined by lifestyles, values and personality Larger companies usually segment their markets by conducting extensive market research projects. The money and the resources are usually unavailable to smaller companies to conduct such research. However smaller companies can use secondary data, resources and qualitative research. ... Target Markets It is particularly important in the cases of small businesses to focus clearly on their potential customers. ... Larger companies may use mass marketing in which they see everyone as their potential customer. ... Market Positioning The best way for small businesses to stand out in their target market is by taking time out to stand out to listen to their customers. ... SWOT ANALYSIS The SWOT Analysis is a business tool that is available to any small business owner. ... This allows us to see the opportunities and challenges that are faced by a small business owner. Strengths: v Small businesses have low costs and low overheads. ... v Small businesses are flexible. ... v In smaller companies there is generally a closer relationship with the consumer, which means problems can be identified quicker and rectified.