The paper "Small Businesses Challenges" is a great example of a Business Case Study. Small businesses are an important part of any country’ s economic and social fabric. Small businesses face challenges from large firms that command resources as well as global reach. Some crucial innovations have been engineered by small businesses particularly in the technological realm but these have often been attributed to large firms. Large firms have the resources to create an image and perception hence outshining small businesses in marketing. There are many challenges encountered by small businesses in the course of their operations and their quest to penetrate the existing marketing.
Emerging trends take small businesses by surprise since they do not invest sufficiently in market research to determine the changing needs of customers (Thomas, Shaw & Page, 2011). Large firms use all means to lure experienced and competent workers from small businesses into their circle. Small businesses struggle to keep experienced marketing staff once they have gained the needed skills and competence to perform their duties. It is upon the small firms to devise ways in which they will keep their customers using a small budget and penetrate new markets through promotion and advertising.
From a marketing perspective, small firms have to contend with many challenges that are posed by the market and the large firms. This essay explores some of the challenges that are encountered by small firms from a marketing perspective as compared to large firms. Discussion Small businesses have the challenge of information overload. Information keeps on changing and small businesses have to keep track of this. The business world is rapidly changing. Businesses have to adapt quickly to entirely new marketing channels, choose how to invest as well as utilize new technologies and compete on the global stage.
This is a new age and things have changed with the new role of technology in business. Market trends are changing rapidly and small businesses have the challenge of keeping up with the trend by rummaging through volumes of available data (Kaplan & Haenlein, 2010). Small businesses are unable to keep pace with the emerging trends owing to their financial challenges as compared to large firms. Financial resources are limited for small firms which is a crucial part of creating a marketing mix.
New data and facts keep on emerging and replacing old trends and beliefs. Small businesses find it difficult to have solutions for their marketing problems. It is a huge challenge for small businesses to sort through the data and develop workable solutions. There is a lot to be done compared with the amount of time and resources available to small businesses. Small businesses are largely built around the new emerging technology but large businesses work on emerging technologies for the purpose of improving a product line or business that is existing (Michaelidou, Siamagka & Christodoulides, 2011).
Filtering through the enormous data available for small businesses is a very big challenge and firms have to engage in consultants who sometimes they cannot afford. When it comes to advertising and promotion the small businesses cannot outshine the big firms that are well established. The large firms have the financial muscle to use reputable advertising companies as well as establishing marketing consultants who spice up their marketing campaigns. Information overload can be dealt with through ensuring that the small businesses have a network through friends and associates that can be used as sources of information.
The credibility of information can be confirmed by searching through the internet and asking trusted friends as well as affordable consultants (Thomas, Shaw & Page, 2011). Small businesses can outsource services of other established firms or consultants to get direction on emerging trends and the possible strategy to use in dealing with the current challenges. Small businesses can also content being market followers where they wait for market leaders to set the pace and they follow through by meeting the needs of market niches that can be ignored by large firms. Small businesses have to contend with small budgets that put them at a disadvantage point as compared to large firms.
This is a big challenge for small businesses. Large firms outshine small businesses in their marketing strategy and small firms have sometimes to make way for large firms where they cannot stand the heat of the competition (Kaplan & Haenlein, 2010).
The small firms have to do with small budgets that limit the type of channels that can use in promoting their products. It is difficult for small businesses to catch up with the large firms. The small firms have to contend with using social media and other inexpensive channels to promote their products in the market. Big firms can afford billboards at strategic points in towns and adverts during prime time on main channels on Television and Radio. Small firms do not have the capacity to recruit top talent in the marketing realm (Lovelock, 2011).
Once work has the necessary skills and competence to perform their duties in small firms, large firms come for that person and offer huge salaries and employment benefits. Small firms lose some of their experienced marketing staff to big firms who are able to remunerate them better. Big firms raid small firms and snatch employees who are resourceful. Small businesses lose their seasoned workers to established large firms in case of financial strain. Small firms have to deal with the challenge by working within their budget and looking for people who are passionate about business growth.
The employees must have a passion to grow through ranks and carry out the mission of the small businesses. Employees that are money-driven will always leave when the big firms come-calling. Small businesses have to use people who are passionate about the business idea and want to see it grow to maturity. Small firms have to use methods that are inexpensive like social media and personal selling. Connecting on social media through group pages and personal friendship is fundamental (Hotho & Champion, 2011).
Small businesses depend on word buzz and word of mouth through friends and relatives. Social networking is a strong way that small businesses can reach out to potential customers and penetrate existing markets. Small firms have to take advantage of technology to create a buzz around their business idea so that potential customers get to know about it and ask questions leading to purchasing decisions. Small businesses do not have the time and resources to carry out satisfactory marketing research. Small businesses have few employees who are engaged in the day to running of the business and cannot afford to commit others on extra responsibilities.
Big firms use consultant firms and research companies that are established when looking for primary information about markets and existing opportunities. On the other hand, small businesses depend on trending information on social media and other social circles that may not be credible at all. Small businesses have to evaluate carefully the information they obtain in the social circles because some may be misleading. Marketing research is very important for any business to understand the market and the emerging needs of customers.
Inadequate cash flow means it difficult for small firms to use research companies in determining the strength of their products and the opportunities available in the market (Kotler et al, 2015). Small businesses can overcome the problem by using databases with marketing information that is credible. Government sources on population and demographic can help small businesses to understand the size of the market and some of the customers’ needs that are unfulfilled. Small companies can use information from large firms to learn about emerging customers’ needs and design their products to meet these needs.
Small businesses have to learn how to use information from mainstream media and also leading companies to learn about the market and customer needs. Conclusion There are many marketing challenges that small businesses face on their account of their capacity in terms of resources and marketing personnel. Small businesses are overwhelmed by information overload and how to filter through and find working solutions for the business. Small businesses have to contend with using circles of friends and relatives in the verification of the enormous databases of information that are available.
Small budgets do not give small businesses the luxury of hiring experienced and competent staff like large firms. Small businesses have to grow their talent into experienced workers who are sometimes snatched from them by established firms. Small businesses cannot carry out comprehensive marketing research due to budget constraints. Government sources and information from established firms can help small businesses in learning about existing market needs and how to fulfill them. Trending topics on social media can give small firms a cue on what is happening but this is subject to verifications.
Small businesses face various challenges in their marketing agenda but they can look for ways working out solutions to every challenge that comes in their quest for growth.
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