Question

Long answer type questions.

Explain how marketing problems lead to industrial sickness in case of small business.

Answer 1

The problem of industrial sickness arises when a business unit is unable to sustain itself financially. There are many internal as well as external factors such as faulty planning, lack of raw materials and capital, obsolete technology, etc., that result in industrial sickness. Among them, one of the important factor is the lack an efficient system of marketing. This problem arises due to the fact that small businesses face shortage of funds as a result of which they cannot invest in research and development (R&D) and advertising and publicity. Because of the lack of an efficient marketing system, small enterprises fail to utilise resources optimally. This, in turn, increases operating costs and wastage of resources. Eventually, it results in sickness and the closure of small units.