Marketing Research! Why for SMEs not to Lose Investment?

Dr. Sikder Md. Anowarul Islam

Organizing marketing research is costly and very much methodological to achieve the target market operation and organizational goal. Experienced professional found it loosing time to do marketing research. Small and Medium Enterprises (SMEs) have lot of limitations to do marketing research since they have budget limitations to enter into large market. Professionals in these sectors are normally taking marketing decisions on the basis of their present and past experiences and accordingly the trend of previous sales in an enterprise.

Marketing research is a continuous process to access and sustain in the market. Large Scale Industries (LSIs) have sufficient budget for marketing research and promotion. They can boost local and international market by producing innovative products through research and development. But it is difficult for SMEs to get the real market data of the consumer preference for some particular products. About 80% SMEs start their market promotion by entrepreneurial business activities. Initially they go door to door marketing and taking huge burden of credit facilities. They want to know the customer perceived value (CPV) by offering free samples to customers to get attention of their newly introduced product. They are changing production lines frequently and sometimes suffer for sufficient working capitals. By this process, 40% of SMSs normally disappear from the market since they can’t afford or confident to market their products before marketing research.

There is a tendency that SMEs are trying to market the traditional need based products that are available in the competitive market. These enterprises are observing the demand and supply trend of the market and they are usually followed by the opportunity of short supply in the market. These environments are normally observed in the poultry and fish production and processing industries as well as marketing in agricultural products.

There are big challenges for SME’s to shift from demand based production to supply base production. Demand based production is competitive and less revenue augmented. These products demand are changing frequently in accordance with demographic atmosphere. The selection and production of special products are more beneficial and profit augmented if they want to avoid marketing research for a certain period of time. Marketing research is always necessary not for the large scale industries but also for Small and Medium Enterprises (SMEs).

Small budget on ongoing marketing research also can change the effective decision making behavior of an enterprise. Avoiding marketing research for any reason may bring bad time for the organization. Effecting decision making process may be hampered even in highly experienced marketing professionals are involved in driving seat of the organizations. Enterprises either big or small never lose money if they are always conduct marketing research for organizing marketing activities for their product sales and development both in home and abroad. (Published in LinkedIn, August 27, 2014)


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