IJMRS’s International Journal of Management Sciences, Vol.

01, Issue 02, June 2012, ISSN: 2277-968X

Marketing Strategies of Small and Medium Enterprises: A

Sample Survey
Sheetal1, Sangeeta2, Rajiv Kumar3
1
Research Scholar, Haryana School of Business, Guru Jambheshwar University of Science and Technology,
Hisar, Haryana, India
sheetaldeendyal1988@gmail.com
2
Research Scholar, Haryana School of Business, Guru Jambheshwar University of Science and Technology,
Hisar, Haryana, India
sangeeta047@yahoo.co.in
3
Assistant Professor, Haryana School of Business, Guru Jambheshwar University of Science and Technology,
Hisar, Haryana, India
rajivtamak@rediffmail.com

Abstract
The paper addresses to integrate marketing strategies comprising
marketing mix and marketing intelligence by SMEs and a
survey on customers has been conducted to validate the
marketing strategies. The survey logical view of the
entrepreneurs and customers has been integrated through
existing theoretical framework. An empirical study conducted in
small and medium enterprises in Hisar (India) enrich the
information base and government to boost the financial base
because small scale industries are an integral part of the
industrial background of the country and employment generator
segment of the economy. Furthermore findings suggest that
entrepreneurs should upgrade their information base to evoke
stream of consciousness and tested through exploratory factor
analysis and one sample t-test. The research finding implies that
there is a communication gap between consumers and
entrepreneurs. The study yields the implication for the service
provider.
Keywords: Entrepreneurs, Information system, marketing
strategies, marketing intelligence, Small and medium
enterprises.
The Indian market is growing rapidly and Indian industry
is making remarkable progress in various Industries like
Manufacturing, Precision Engineering, Food Processing,
Pharmaceuticals, Textile & Garments, Retail, IT, Agro&
Service sectors and pertaining industries in the form of
small and medium enterprises are increase by leaps and
bounds. To sustain the growth of a largely agriculture-
based Indian economy, the growth of other sectors such as
industry, services and manufacturing is imperative. SMEs
are an integral part of the supply chain of large-scale
industries and provide vital forward and backward
linkages to the overall industrial sector. SSI in Indian
economy as small scale industries occupies a special place
in the economy due to considerable contribution in terms
of production, sales and employment (Ranchy Bhateja et
al., 2007). SSI sector in India has been exhibiting a
striking export performance; export has grown up to
double digit from the last ten years (Govinda Sharma,
2011).

1. Introduction In India small manufacturing industries defined on the

The paper seeks to present the marketing strategies in
small and medium enterprises (SMEs) from service
provider’s perspective as well as customer’s perspective.
Marketing strategies are not one time process but a varied
and unique action which is prominently necessary to
revise year by year to attain predetermined objectives.
Whether the turnover is huge or marginal, marketing
strategies are applicable and advisable in case of every
small, medium and large enterprise. Marketing strategies
are quite comparable and measurable in nature so affected
by market fluctuations and trends of business cycle. Key
change involving the transition to a new kind of economy
is not only the concern of the scientific world.
basis of limit historical value of investment in plant and
machinery in the MSMED Act 2006 (Micro, Small &
medium enterprises act 2006) announced by the
government of India. As per the act the small sector has
been divided into two categories: Categories 1: units
engaged in manufacturing or production. Categories 2:
units engaged in providing or rendering of services. In the
category 1 (manufacturing sector) the MSMED Act 2006
defines the small units as an industrial units in which the
investment in plant and machinery in more than twenty
five lakh rupees but not exceed five crore rupees. In the
categories 2(service sector)the MSMED Act2006 defines
the small unit as an enterprise where the investment in
equipment is more than ten lakh rupees but does not
exceed than two crore rupees.

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 IJMRS’s International Journal of Management Sciences, Vol. 01, Issue 02, June 2012, ISSN: 2277-968X
Every reform in an economy is double ended sword
which decides success and failure for every individual
unit. Liberalization and globalization is critical examples
of this view. Liberalisation is always seen as negative
factor for the SSIs because many industries demolished in
the wave of it (Ranchy Bhateja et al., 2007). The
implications of globalization and domestic economic
liberalization for small-scale industries and its growth
performance in terms of units, employment, output and
exports in context of India. So pertaining government
body should come forward because these assistances will
results in economic wealth of country. Strategies
regarding colonial management thoughts, post-colonial
thoughts, marketing problems of small business
enterprises, and entrepreneurship support strategies in
Nigeria, government-intervention strategies and
participation strategy are some recent examples in
developing country like Nigeria (Ayozie Daniel
Ogechukwu et al., 2010)
Government has to see the implementation phase of
developing industries in backward areas so that ancillary
units can get their share in national as well as
international markets.
Developing countries are identifying options to the new
type of economy by building an information society to
citizens, by extending the Internet, electronic commerce,
telecommunications, developing small and medium
enterprises, supporting scientific research as a vector of
competitiveness and the enhancement of human
resources, investing in education and training, promoting
social protection systems (Dan Popsecu, 2011).
The national objective of inclusive growth can be fulfilled
only by SMEs through the creation of highly productive
labor-intensive jobs, directly and indirectly. SMEs
produce from natural and local resources, utilizing local
skills, acting as a catalyst in not only increase local
employment and consumer growth around their
geographic areas, but also by developing the entire region.
As large firms outsource more of their value added
functions, SMEs get the opportunity to climb up the value
chain. In this way SMEs significantly contribute towards
economic value chain. SMEs boost industrial growth by
augmenting capacities and supplying quality goods and
services at competitive prices. Their role in industrial
growth, therefore, can hardly be overemphasized.
In the age of liberalisation and globalisation any attempt
at creation of a competitive small scale sector in the
country would need to explicitly take note of the
emerging global production and knowledge networks
(Sebastian and Rakesh Basant, 2010). An attention has
drawn to the key policy issues and suggested changes can
lead to a fast growing economy in which small firms play
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their natural and seminal roles. A better understanding of
the process of evolution of the modern small scale sector
in the late industrialising economies can help India make
appropriate policy choices.
As human has to face 4 phases of life, a product also
passes through 4 phases namely introductory followed by
growth, maturity and finally declining phase when sale
touches its lowest point. So marketing strategies are also
formulated concomitantly with product life cycle to face
fierce competition. Marketing mix in terms of product
can be enhanced by increase product line depth and width
considerably according to market demand. (Kotler and
Keller, 2008). Small businesses are using a variety of
branding tactics some of them very creative and one-step-
ahead of the branding manuals. Moreover, Branding is
understood in an own interpretation by the entrepreneurs
but this innovative performance adds new developments
to the theory and practice of branding (Barbu et al., 2010).
Price is the most effective constituent of marketing mix
strategies because it is lonely responsible for a company’s
profit, survival and growth pattern. Price is mainly
affected by ten factors (Jobber. D, 1995) Adequate
quantification of price is a difficult task in current holistic
marketing phase because it is highly dependent on price
elasticity of demand and demand & sales is heavily
dependent on price (Kotler and Keller, 2008). David
jobber points out those prices are highly affected due to
price determinants and level of output while Kotler and
Keller (2008) emphasis on product positioning and
targeting markets for price set. Profit margins, market
considerations, competitive pricing, customer awareness
through personal relationships and price flexibility are
some critical factors in determination of pricing. (David
Carson et al., 1998)
Promotion is the very first meeting of marketer message
to potential customers. Through promotional message,
marketer attempts to inform, persuade and remind
customers about the product in direct as well as indirect
way. Promotion mix consists of six major methods of
communication namely advertising, sales promotion,
events and experience, public relation and publicity,
direct marketing and personal selling. A better message
flourishes with the help of all six methods with adequate
budgeting and effectiveness and develops along with
identifying target audience, determining the objectives
and designs the message strategy. Promotion of SMEs is
flourishing by usage of clustering, networking and
technological innovation.
Place and distribution sometimes termed as synonym
because via distribution channel the product reaches to its
ultimate destination to customer. The distribution channel
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decision is also critical to make whether distribution
should be via retailer, wholesaler or direct approach to
customer.
Marketing as a strategy is a relevant phenomenon in
which 4P’s have been considered relevant factors to
influence the performance of small enterprises (Romano
et al., 1995). But in today’s contemporary turbulent
environment many new and emerging concepts have been
added among strategy group likewise relationship
marketing, network marketing, innovative marketing,
standardization vs. adaptation and clustering. With
contingency factors we mean those background forces -
firm, managerial, product, market and customer issues -
that may influence firms´ decision to standardize or adapt
their international marketing strategy (Jorma Larimo et
al., 2008).
Marketing through three dimensions namely marketing as
a culture, marketing as a strategy, and marketing as tactics
can be taken into account in respect of SMEs. A model
offers straightforward way to diagnose the situation
within an SME and the simplicity of the model allows for
a clearer understanding of often aroused complex and
disorganized situation in these units and their business
environment (Simpson et al., 2006). SER database has
been suggested to clarify major issues and obstacles for
smaller enterprises. A case study conducted on a vineyard
which has given more emphasis on combination of
entrepreneurial activities and long term sustainability to
thrive out in niche markets (Beverland and Lockshin,
2005). This strategy has been proved to be a milestone in
a short span success of Palliser. Small sector is often able
to offer the niche services which the larger manufacturers
are unable to offer. Countries such as China, Bangladesh,
Malaysia, Philippines, Sri Lanka have no reservation for
the garment industry and yet the small-scale units, are
thriving (Arti Singh, 2006).
Need of relationship marketing with already globally
recognized brands has also experienced by a case study
(Beverland and Lockshin, 2005). Through dyadic
approach the relationship between banks and small and
medium enterprises & demand engagement from both
sides has been suggested to establish a long term
relationship (Fatima Vegholm, 2011). The relationship
building between banks and SMEs helps to create a
relationship among SMEs customers and banks which
further results in strong corporate image of banks.
Satisfaction with financial institutions (banks) outcomes:
switching referrals and preliminary framework have been
suggested and also the relationship of satisfaction
between banking institutions and SME owners clarified
(Lisa Feeney et al., 2002).
Role of marketing and relevance has been defined by one
hypothetical deductive model through a matrix by
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(Simpson et al., 2006). The matrix suggests a positive link
between a company’s financial performance and its
approaches to marketing model. Moller and Anttila
(1987) examined the state of art of marketing in small
manufacturing companies through this model. Model
suggested by (Simpson et al., 2006) adds another
dimension not a critical one to model propounded by
Moller and Anttila (1987).
Only effective marketing could help SMEs to gain
competitive advantage via superior performance
competitive marketing strategy and relationship
marketing strategy (Yen and Chew, 2011). Marketing
strategies, marketing mix and market Intelligence system
in collaboration can benefit the small firms to a large
extent while emphasizing on networking as an inherent
tool of marketing (Gilmore et al., 2001). It is wholly
compatible with SME decision-making characteristics in
relation to marketing activities. In case of competitor
collaboration, it is balanced with caution when it is felt
that the benefits enjoyed by each party are proportionate
to their respective inputs and managers will guard against
speaking too freely about certain things, especially any
plans they might have for substantial changes to the firm
or its direction.
However the presence and implementation of the
marketing activities, in the category of small businesses in
the Splitsko-Dalmatinska County (Dasa Dragnic et al.,
2009) brings out as a part of the behavioural (managerial
and operational) aspects of market orientation. Marketing
orientation concept is a prominent concept of marketing
but still miss understood by market orientation (Harris et
al., 1998). The study concludes that most small business
entities in Croatia are oriented towards the market, their
customers and competitors as well as implement the
marketing activities in a distinct manner. The study is
confirmed by the significant consideration for customers
and competitors and their influence on product/service
and price policies. As we are well versed with the fact that
customer is the center of action so marketing is
incomplete without customer orientation. Customer
orientation towards SME products has been pointed out
by Kwaku and Satyendra Singh (1998) through the
performance measures in the form of success of new
product, sales growth pattern and return on investment.
Positive effect of customer orientation seems on
performance of SMEs.
Degree of standardization vs. adaptation of the marketing
mix elements by SMEs in their foreign sales integrating
selected contingency factors into the analysis. The total
results indicate relatively small difference in the degree of
adaptation between product, communication and
distribution strategies whereas pricing is more adapted.
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SMEs have adopted this to a certain extent and the focus
is on customer information gathering, whereas to
dissemination of and responding to market intelligence
has been paid less attention is confirmed to previous
findings (Reijonen et al., 2009). Especially in the smallest
of SMEs the role of marketing is not considered focal and
carried out.
2. Review of Literature
The paper addresses the literature on the marketing
strategies, market intelligence system, innovative
marketing and customer’s orientation towards the SMEs
in the Hisar region of Haryana and review guides us to
formulate research objectives and prepare hypotheses for
testing.
In regard with some contextual variables as control
variables Hakimpoor et al. (2011) investigated the role of
structural dimensions of marketing network as important
moderators on this relationship. Researchers hypothesize
that the size, formality, diversity, density, stability and
flexibility of marketing network will positively moderate
the relationship between SMP and SMEs’ performance to
test the validity of model. The authors are intended to fill
up the gap about the lack of research on SMP-
Performance relationship in SMEs’ context. The study
proposed that structural dimensions of marketing network
are important moderators on relationship between
strategic marketing planning (SMP) and SMEs’
performance.
There is a strong orientation regarding marketing
practices as Yen and Chew (2011) examined how Chinese
construction SMEs compete for success in the use of
marketing strategy and the impact of environmental
factors on construction SMEs performance. By using a
desk research, Jimmy Hill (2001) evaluate the
multidimensional study of key determinants which affects
marketing activities of SME and longitudinal
investigation of the nature of SME marketing that was
undertaken. The study has focused on marketing
competencies in SMEs, their sales orientation, type of
personal contacts they used and the nature of marketing
planning in SMEs.
Gerald Susman et al. (2006) identify several cases of
successful implementation of innovative new product and
service development practices. The researcher develops
recommendations to enhance SME competitiveness and
the ability of MEP (manufacturer extension partnership)
consultants to assist SMEs in this endeavor.
A unique theoretical and practical insight enunciated by
Simpson et al. (2006) into the issue of marketing in SMEs
in the study, conducts to report on a full-scale testing of
the role of marketing and its relevance in small and
63
medium sized enterprises (SMEs). The role and relevance
model of marketing in SMEs has been thoroughly
investigated and tested in the study. Moreover, some
findings suggest a positive link between a company’s
financial performance and its approach to marketing
within the model.
Degree of standardization vs. adaptation of the four key
marketing mix elements - product, price, distribution, and
communication and the impact of selected contingency
factors on the strategies analysed by Jorma Larimo et al.
(2008).
Reijonen (2009) analyses the perceptions of marketing
held, the marketing practices adopted and the success
aimed at in SMEs. It is found that SME marketers
perceived marketing through concrete practices that often
relate to promotion, selling and customer relationships
and they professed a combination of several philosophies
to succeed.
Emerging from the exploration of product planning and
development, SME branding is heavily influenced by the
procrastination practices (Gillian Horan et al., 2011).
Egbetokun et al. (2010) found that SMEs would focus on
incremental product and process innovation. Critical
success factors for the product development process have
been explained with the help of an empirical research in
SMEs. The cost of product development projects that
discourages commitment to new product development and
the uncertainty of the market acceptance are found to be
the major factors (Isidre March-Chorda et al., 2001).
David Carson et al. ( 1998) focuses pricing in the form of
proactive terms which should consider the product
characteristics and market potential as opportunity and
potential threats criteria for competitive or environmental
influences.
Branding has regarded as the customers perspective in
small firms but in management perspective it is an
emerging area which enhance the entrepreneurial
personality on the branding. Richard Mitchell (2012)
presents a number of implications for managers of retail
SMEs and given the propensity to simplify the process of
branding found within SME retailers. This model may
provide a useful tool kits for retail SME owner managers
to aid the coordination of their brand communication
more effectively. A new model devised by Jimmy Hill
(2001) call for small and medium enterprises to depict
three level competencies at foundation level, transitional
and marketing practices which carry out relational
communication and commitment strategies broadly. It is
also recommended that owner managers adopt the
principles of wider large organisational branding.
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Moreover, it is important that owner managers proactively
seek to assess customer interpretation of brand meaning,
in order to maximise the effectiveness of SME brand
resources in general. Barbu et al., (2010) evaluate the role
of branding in small business in their study. By using a
desk research on Internet and the press they have
identified the practices small businesses use to enhance
their brand and the brand dynamics in small business.
Ben Othmen (2010) studies the current marketing
activities of Fotomina ltd that is operating in internet
environment and suggests some improvements which
were possible. E- Marketing literature is centered on
mainly large business houses and little attention is given
to SMEs. Competitive advantage mainly stems from price
and quality in case of small and medium enterprises
discussed by Beverland and Lockshin (2005). SMEs tend
to give greater importance to human resources than larger
organizations because of simplified hierarchical structure
in the SMEs of European Union. Dan Popsecu (2011)
considers the key changes involving the competitive
advantages for an organization lie in creating and
implementing the human resource development strategies
in the SMEs.
R.Gajanayake (2010) points out the most of the criteria
about the implementation of the marketing strategies in
SMEs in Sri Lanka. The paper find out the main reason
about the failure of the SMEs is the less awareness and
the less knowledge about the new methods and techniques
available in the business world. The findings revealed that
there was no significant impact of marketing strategies on
their business growth. Moreover there was no impact of
the behavior of the entrepreneurs and the business growth.
Effect of external environment and firm characteristics
also give emphasis on the innovative marketing (Michele
O’Dwyer et al., 2009). Relation of Market differentiation,
focus, innovation strategy, strategic alliance on SMEs’
performance has been shown through empirical analysis
in Chinese context by Shigang Yan et al., (2010).
Innovative marketing not only consider technological
development, new product development and products
specifications but it is quite specific to the needs of SMEs
and decision making in context of market focus and
customer focus. Ayozie Daniel Ogechukwu et al.(2010)
identifies the marketing problems of SMEs and
entrepreneurships in Nigeria, the provision and enactment
of beneficial and supportive laws, the provision of
infrastructural facilities, constant man-power and
development, direct financial assistance to SMEs and the
establishment of finance institutions to support SMEs.
Marketing centric approach and unique selling
proposition further demands adequate promotional
strategies. The promotional activities for SSI in India
need to concentrate on improved credit flows, human
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resource development, appropriate technology and funds
for modernization (Rajesh Kumar Shastri et al., 2011).
Chrysoula and Angela (2011) added clustering as another
dimension which has got very early recognition due to
vertical relation rather than horizontal relations.
Networking also emerges from this concept which helps
in brand recognition from point of view small and
medium enterprises.
The institutional technology support for small scale
manufacturing enterprises in the developing countries has
been analysed by Henny Romijn (2001). SMEs need to
use and adapt product and process technologies which are
demand driven and help them to organize themselves in
collective bodies that can evolve into self-help institutions
include appropriate incentive structures based on market
principles. Enterprises could use internet facility which
would certainly increase their capacity (Alam and Ahsan,
2007).
Common distribution approach has been changed, a
plethora of directions are adding incidentally, ICT is the
need of the hour to be at par with the competitors of
national as well as of international level. One of the
initiatives by the Government of Malaysia as a support
system for technology based small and medium
enterprises in Malaysia described by Avvari V. Mohan et
al., (2006). The MTD programme uses the entrepreneurial
life cycle as a framework for developing the support
programme to spur the growth of SMEs in the ICT sector.
Most of the businesses in Malaysia had already adopted
ICT as an important tool to increase their business at all
levels domestic as well as global level (Alam and Ahsan,
2007).
A theoretical framework is developed to examine the
relationship among marketing strategy, business
environment and performance of construction SMEs in
China (Shigang Yan et al., 2010). The integration of
environmental management perspective, strategic choice
approach and resourced-based view provide a warm
emergence to marketing strategy which can yield in green
posture in survival of SMEs. Contrary to the prediction in
the research, environment dynamism is not related to
construction SMEs’ performance. Resource based theory
may produce remarkable success moreover it should be
combination of innovation, immediate delivery and
appropriate marketing. (Stephen Duhan et al., 2005)
The above review of literature induced us to add yet
another dimension to the existing body of knowledge on
the subject. Though the existing literature is no less rich
and mind boggling, a study on marketing strategies of
SMEs, which have historically been important in India, is
expected to make a good decision.
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3. Research Methodology
3.1 Sample and survey method
The sample survey, using a self administered
questionnaire verified by several professionals has been
conducted encompassing 100 industrial units of small and
medium type falling in the Hisar, Haryana. The
questionnaire has been used to elicit the responses of the
entrepreneurs as well as customers. Though the study is of
primary nature but sill exploration has been done at early
stage of research work to identify different factors of
SMEs for their growth, efficiency and effectiveness.
Opinions of some officials from business units are sought
on marketing strategies for SMEs so that suggestions can
be drawn.
Two surveys have been conducted, one for the SMEs and
other for the customers so that according to the
respondents right marketing issues can be raised and good
strategic framework can be drawn for SMEs. Sixty units
have been selected for final survey based on convenience
sample. In case of customers only sixty respondents have
been considered for analysis and results.
3.2 Objectives
The main objective of the study is to develop marketing
strategies for the small and medium enterprises. To
achieve these main objective organizations need to
achieve more sub- objectives like:
1. To workout the 4P’s decisions effectively in the
organization.
2. To strengthen the marketing intelligence system.
3.3 Hypothesis
For this purpose, the following null hypotheses were
framed for testing:
1. Entrepreneurs
H1: The entrepreneurs are satisfied with the prevailing
marketing strategies formulated by their corresponding
SME units regarding marketing mix.
• H1a: The entrepreneurs are satisfied with the
prevailing marketing strategies formulated by
their corresponding SME units regarding Product
positioning.
• H1b: The entrepreneurs are satisfied with the
prevailing marketing strategies formulated by
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their corresponding SME units regarding
Promotion.
• H1c: The entrepreneurs are satisfied with the
prevailing integrated marketing strategies
formulated by their corresponding SME units.
• H1d: The entrepreneurs are satisfied with the
prevailing marketing strategies formulated by
their corresponding SME units regarding Price.
H2: Market intelligence system has a significant effect on
performance of their units.
2. Customers
H3: The customers are satisfied from marketing strategies
adopted by SME units regarding marketing mix
• H3a: The customers are satisfied from marketing
strategies adopted by SME units regarding
Product.
• H3b: The customers are satisfied from marketing
strategies adopted by SME units regarding price.
• H3c: The customers are satisfied from marketing
strategies adopted by SME units regarding Place.
• H3d: The customers are satisfied from marketing
strategies adopted by SME units regarding
promotion.
H4: The customers are satisfied with their own market
awareness and information provided by the SMEs.
3.4 Survey development and measurement
As we are developing the marketing strategies for SMEs
in Hisar region of (Haryana) India, Five major marketing
strategies identified namely strategies related with
product, place, price, promotion and market intelligence
system. Five point likert scale has been used to assess the
variables. Questionnaire consisting 30 variables has been
sent to small and medium enterprise’s entrepreneurs.
The statistical software SPSS 16.0 was used to analyze
the data. A simple statistical analysis which includes
descriptive statistical analysis is carried out to assess
whether entrepreneur is satisfied from the prevailing
marketing strategies. Factor analysis was conducted to
reduce the underlying variables among a set of specific
attributes. Data is conceptualized as orthogonal hence
varimax rotation was applied. The Kaiser-Meyer-Olkin
criterion is used to retain the factors having Eigen value
greater than one and to check out the sphercity Bartlett’s
test was applied. The value of KMO should lie between
.500 to 1 and significance level for Bartlett test should be
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less than .003. One sample t-test is carried to test the
hypotheses constructed for service provides and
Table 4.1 factors and variances
Factors Descriptive names of factors
F1 Strategies regarding product positioning
F2 Strategies regarding promotion of the product
F3 Strategies regarding market intelligence system
F4 Integrated marketing strategies
F5 Strategies regarding pricing
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
(1951) has been employed. By using “Corrected Item-
Total Correlation” & “Cronbach's Alpha if Item deleted”
insignificant items have been deleted and 16 items have
been taken into consideration for further analysis. The
items which were showing correlation less than .300 has
been deleted because due to deleting them reliability of
Cronbach’s Alpha is increasing.
4. Analysis
The results of a principal components factor analysis
followed by a varimax rotation are shown in the table 4.2.
Results shows that corresponding to the two major
constructs of the study (marketing mix and market
intelligence system), items loaded on five separate factors
from retained 16 variables. The extra factors resulted
from the negative items are the integral part of the study
and carefully explained in findings. Value of Cronabach’s
α for the items, provides the reliability of the instrument
employed as value exceeds the 0.7 level (Nunnally, 1978)
and therefore acceptable. The values of Cronabach’s
Alpha values lie between .801 to .833. Along with Kaiser-
Meyer-Olkin Measure of Sampling Adequacy has also
been assessed as .725 which shows higher sampling
adequacy and Bartlett test shows higher sphercity .000.
These factors have explained 67.746% of total variance
and first factor explaining 30.972% of the total variance
as shown in table 4.1. All the factors are both
conceptually and empirically different from each other
(Fornell and Larcker, 1981).
These factors has been recalled as strategies regarding
product positioning (F1), Strategies regarding promotion
66
consumers. For checking internal consistency and assess
the reliability of the underlying dimensions Cronabach
Eigen value Variance (%) Cumulative Variance
4.955 30.972 30.972
1.826 11.415 42.386
1.515 9.471 51.857
1.345 8.405 60.262
1.197 7.483 67.746
of the product (F2), Strategies regarding market
intelligence system (F3), Integrated marketing strategies
(F4), Strategies regarding pricing (F5).
Table 4.2 interprets the results of t-test (William Sealy
Gosset, 1908) along with above explained factor loadings.
. One sample T-test statistic used for data interpretation
and test value is assumed as 4 at 5% significance level. If
the p- values are greater than .05 (α) than hypotheses will
be accepted otherwise not. Variables related to the
product positioning showing insignificant hypothesized
values results in rejection of H1a. Satisfaction towards
their own promotional strategies shows hypothesized
values less than .05, concludes that service providers are
highly dissatisfied and H1b has been highly rejected.
Integrated variables are showing negative pattern
according to t-test proposition hence H1c rejected. One of
the Pricing variable subsidies offered to SMEs values less
than .05 which theoretically implies that pertaining
government body is not much inclined for the welfare of
small and medium enterprises. While SMEs are highly
satisfied from the pricing strategies adopted. In this
context H1d will be rejected because of highly negative t-
value.
SMEs are not well versed with more information systems
used in contemporary environment to be at par with
globally recognized enterprises (Beverland and Lockshin
(2005). H2 supports the views of extant literature and p-
values are extremely less than .05, results in rejection of
H2.
For analysing the difference between satisfaction levels of
customers using SMEs products; variables regarding
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Service satisfaction, Quality and cost effectiveness has Information provided by the customers are segmented
been studied. One sample t-test statistics used for data into five constructs including two major categories,
interpretation for the customers and test value is assumed Marketing mix (Product, Price, Place, Promotion) and
as 3. Market awareness of customers.

Table 4.2-Variable measurement and exploratory factor analysis

Variables Standardized t-value Sig (2 tailed) Cronabach’s

loadings alpha
Factor 1: Strategies regarding product positioning
Are you satisfied from your new product development .777 3.356 .001 .806
process
Whether current product development approach leads to .673 4.537 .000 .806
profitability?
Are you satisfied from your distribution channel of the
.606 3.369 .001 .807
product?
Are you satisfied from your way to produce the product?
.554 2.429 .018 .809

Factor 2: Strategies regarding promotion of the product

Are you satisfied from your current supplier of the product? .790 .813
3.288 .002
Is exiting product best fit for your potential market? .689 .842
2.588 .012
Are you satisfied from your communication channels to .579 .812
approach to the target segment? 2.078 .042
Are you satisfied from your periodic product promotions .511 .814
schemes? 1.040 .303

Factor 3: Strategies regarding market intelligence system

Is market awareness is important for a company? .858 4.361 .000 .833

Is a marketing strategy important to the company?
.846 6.303 .000 .801
Are you satisfied from your marketing strategy process?
.639 3.969 .000 .810

Factor 4: Integrated marketing strategies

Is the existing method of promotion is best fit for the .715 2.496 .15 .802
organization?
Does pricing strategy influence the marketing strategy of .708 .806
2.256 .028
the SMES?
Are you satisfied from your distribution channels of the .671 .817
product? 4.386 .000

Factor 5: Strategies regarding pricing

Whether subsidies encourage market in long run? .769 .813

-15.867 .000
Are you satisfied from your pricing of the product? .751 .811
-1.277 .207

Extraction Method: Principal Component Analysis.

Rotation Method: Varimax with Kaiser Normalization.

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Table 4.3- t test statistic regarding consumer satisfaction towards pricing of the SMEs

Construct 1:consumer behavior towards products offered by SMEs t values Sig. two
tailed

Whether SMEs produces poor quality & delivered less standardized product or Service? -1.651 .104
Are you satisfied from Current brand name of the product supplied by SMEs? 2.381 .020
Are you satisfied from current product & service of the SMEs? 5.793 .000

Do you want to suggest any change in the product, price, package & supplier of SMEs? 2.124 .038
Do the SMEs products meet the market need? 2.348 .022
Are you satisfied from new product developments of the SMEs? 3.027 .004
Do SMEs products compete with big company’s products? 1.277 .207

Construct 2:consumer behavior towards pricing offered by SMEs

5.465 .000
Is product or service provided by SMEs cost effective?
Are you satisfied from pricing of the SMEs products? 3.756 .000

Construct 3:consumer behavior towards place offered by SMEs

Are you satisfied from distribution channel of the product?
3.624 .001
Are you satisfied from your current supplier of the SMEs products?
1.169 .247
Are you satisfied from current method of convenience of the SMEs?
4.589 .000

Source: primary data

Significant at 5% level

suppliers for the products of SMEs and highly dissatisfied

In table 4.3 p-value is less than level of significance
(α=.05) so H3a has been rejected and consumers are
highly dissatisfied with the products & services of SMEs
units. t-test statistics regarding price of the SMEs
products has signified the lower p-values and therefore
reject the H3b.Construct- 3 in table 4.3 has carried out the
criteria of consumers towards the placement of the SMEs
products.
Distribution related variables show that consumers are
only satisfied with the current suppliers for the products
of SMEs and highly dissatisfied with the distribution
channel and convenience. So H3c has been rejected.
Distribution related variables show that consumers are
only satisfied with the current
with the distribution channel and convenience. So H3c
has been rejected. Customers are highly dissatisfied with
the promotional mode adopted by SMEs except multiple
offers and regular information delivery provided to
ultimate consumers. So H3d will be rejected because
majority of variables favors the rejection trend towards
promotion.
As far as concerned with market awareness on the behalf
of customers regarding products provided by SMEs data
shows that hypothesized values are less than α=.05.which
allows rejection of H4, implies that customers do not
favor to get informed at every marketing mix addition by
SMEs. It leads to that mode to approach the customer is
not appropriate which is further gargantuan support in
rejection of H4.

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5. Findings
The study shows that the service providers are not
satisfied regarding their product development and process
because lack of financial resources is an obstacle.
Financial incapability in developing countries is not up to
the mark due to dearth allotment of subsidies to small
scale industries. This dilemma has two sided effect; one is
born in the form of cost burden which significantly results
in huge quantum of price. The ultimate victim is
consumer and it clearly depict from the dissatisfaction
level of the consumer towards the pricing strategies of
SMEs. Small industries need to be very careful about
pricing decision in highly competitive environment.
Product should be offered at highly competitive price
after doing comparative market analysis. The findings of
the study show that small and medium enterprises are
highly satisfied regarding their product’s price and pricing
methods. But SMEs should concentrate on pricing
strategies because it affects their overall marketing
strategies. Customer also highly satisfied from pricing of
the small and medium enterprises products. SMEs should
focus on cutting the product cost at the operational and
marketing level with use of latest management
approaches.
Small manufacturer think that local market is the
limitation for them and they also want to open access of
the market. From this study we find that most of the small
manufacturers are not feared from the fluctuation in the
market. Furthermore, the study extends the product
development issue in the form of non-fitting of existing
product in the market due to emergence of products
containing same quality contents at cheaper rates from
Foreign Service providers.
The study reveals that small and medium enterprises are
not using appropriate marketing strategies in the highly
competitive environment. Small and medium enterprises
are weak in differentiation strategy. As small and medium
enterprises are following low cost pricing strategies, so it
is also essential to follow product differentiation for
product development. The small manufactures need to use
selective product positioning strategies for different
products because same product positioning strategies for
all products are not beneficial.
Brand has the power of instant sale. They convey a
message of confidence, quality and reliability to target
market. Customers are not well aware about brand name
of small and medium enterprises. So SMEs should also
need to work on brand endorsement for enhancing
profitability. So for this purpose small manufacturer also
need to improve their product design as well as their
branding and research base.
69
Small and medium enterprises are not satisfied their
distribution channel or place so small industries need to
improve their distribution channel for maximum coverage
of the buyer. For maximum coverage of the market latest
technology e-marketing or web marketing may help the
small manufacturer to place the product to large number
of buyer. Customers also highly dissatisfied from the
distribution channel and current method of convenience
of the small and medium enterprises. Small manufacturer
should adopt new methods of the convenience to the
customers.
In Hisar region district SMEs should play important role
of intermediaries which will increase the distribution
facilities and also more customers being aware of the
SMEs product through intermediaries. Cost effective
broadening of distribution channel is required by
improving the supply chain management technologies.
In the era of globalization product, placement, promotion,
brand building and sales maximization depend on the
right type of advertisement. Study investigates that
promotional base in the form of multiple offers at the
regular intervals is showing a high level of significance
but communication is showing reverse trend. This
contradictory approach stems positively from the personal
interaction (Beverland and Lockshin, 2005) with the
consumers directly. Indirect mode of communication is
not possible because of poor advertisement base. Small
manufacturer should go for regular advertisement and
promotional methods to increase information towards
their product for the consumer. Integrated marketing
communication should be taken into account. Better
positioning of the product, by providing variety of rebate
coupons in newspaper, magazines should be offered.
Market intelligence system is important for small
manufactures and customers. Through the market
awareness they can get the market information which is
helpful for small manufacturer and customer to decide the
product, price, place and promotional schemes. Selling
approach cannot increase profitability because market
awareness is also important for the profit motive. SMEs
are playing important intermediate role as business
suppliers. Extant research shows that lack of long term
approach and less knowledge of competitive pressures
instead, their marketing strategies often rely on crisis
management, gut feelings and actions designed to deal
with immediate competitive pressures.
It is not possible to carry out all strategies simultaneously
but a set of strategies that can serve as a skeletal
framework for customized approach is necessary to
contact more customers towards the small and medium
enterprises products.
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Limitations and Future Research
The study has several limitations arises from small sample
size because large sample size always yields affirm
results. The study covers full fledge marketing strategies
but all of the strategies can be taken into consideration in
isolation. Further insights can be encapsulated by
concentrating on strategies for industry specific and
product specific.
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