Abstract

Small and Medium Enterprises (SMEs) are a vital part of the domestic and international economy. Some researches found that SMEs also become integral part of large industries. However, some researches argues that SMEs should expand their business into larger scale which beyonds their supporting role. In this context, SMEs should be able to formulate and to implement their marketing mix strategies (product, price, place, and promotion). This research aims to study the marketing strategies and to identify the problems on the implementation. This research also proposes policies to be taken by government based on each problems. This research uses qualitative approach and gives preliminary description on the SMEs marketing strategies. This research shows that SMEs which produces low involvement products focus on both product quality and packagings, use simple pricing formula,attempt to approach the potential buyers, while use printed media and product bundling as promotion tools. SMEs which produces high involvement products only focus on product quality, use premium pricing formula, do not attempts to approach the potential buyers, and use community as a promotion tools. SME which produces low involvement products experience high-intensity competition which reduce their profit margin. On the other hand high involvement products experience problems in expanding to international market. Therefore, government should limit numbers of low involvement products within the same category. Government should also strenghthen their support for high involvement products to expand into international market.

Full Text
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