Marketing services market feasibility analysis1.0 Introduction The marketing services industry is a very competitive industry with highly professional firms out there to help companies position themselves well in the industry to respond to competition and consumer preferences. The Australian industry has very successful marketing companies like Leo Burnett and The Monkey. The companies have dedicated much of their effort into assisting companies advertise their products and services and also manage their promotion activities. It is a large industry with the main players dedicating their concentration into the big corporates industry. However Joyner (2009) argues that as economic hardships set in, companies are rethinking their strategies and continuously reviewing their budgets to reduce their expenditure in order to fund growth and also keep a check on their expenditure levels.
It is the new reality that the advertising and marketing agencies have to deal with. 2.0 Overview of the marketing services industryThe business environment is changing rapidly, there is a trend of small businesses being started at a high rate as companies restructure and lay off some of their staff. Small businesses account for about 96% of the businesses in Australia employing at least 4.8 million people.
It is estimated that 9 out of 10 small businesses don’t celebrate their 3rd year in business due to a multiplicity of factors chief among them lack of an effective marketing plan. It is this target market that has been ignored by the seasoned marketing services firms. The sector has a very high potential for growth due to flexibility and unique business opportunities. In the near future, marketing firms will have to shift their focus to at least dedicate substantial effort and resources towards addressing the marketing needs of small enterprises.
These enterprises are normally run by the owner-managers and a few averagely skilled staff members. The marketing function may not be effective or efficient. This is what impacts negatively on the businesses. The small business are looking for a firm that is specifically dedicated to handling small firms marketing affairs from marketing research, marketing planning, advertising, marketing advice and brand promotion. This provides an opportunity to be exploited and although the profits may not be so encouraging in the short run, the small businesses sector is growing at a high rate providing a wider client base if a marketing firm will consolidate its position in the market as the marketing services firm of choice for the small business.
3.0 Target market for marketing servicesThe marketing services will specifically be targeting the small and medium business in the Australian economy. According to Connolly& Norman (2012) these businesses in 2009 were about 1.9 million, making 96% of all business enterprises in the Australian economy. These enterprises have little knowledge of conventional marketing strategies maybe due to financial incapability or use of unconventional marketing methods to survive in the markets they are operating in.
most of the major marketing services companies have dedicated themselves to serving large scale enterprises with massive resources to fund highly expensive marketing plans. The marketing services firms have ignored or have not taken notice of the phenomenal growth of small and medium firms in the economy. According to Rigby (2009) these small and medium size companies have devised their own unique ways of marketing their products and the entrepreneurs have taken it upon themselves to develop and implement their marketing plans due to the uncertain nature of the business environment they operate in.
understanding the unique attributes of small enterprises and fitting into their way of doing things is probably the first step into understanding the kind of marketing support you can give a small business.