Long answer type questions.
“Problems in marketing field has resulted in under utilization of small business” Explain
Small business units lack an efficient system of marketing due to the shortage of funds. Because of the lack of efficient marketing systems, small enterprises fail to utilise the resources optimally and fail to gain from the small business. This, in turn, leads to an increase in the operating costs of the business and adds to wastage of resources. Moreover, as the small businesses lack the necessary infrastructure, they are unable to compete with big units in the fields such as marketing and advertising. Eventually, all this results in sickness and closure of small units. The following are some of the major problems that are faced by the small units related to marketing:
i. Issues related to lack of advertising due to low funds
ii. Non-branding and poor quality of products
iii. Problems related to transportation and far-away locations
iv. Huge competition from large sector units
v. Lengthy and complicated marketing procedures
Thus, it can be concluded that as small-scale units do not have any marketing strategy this, in turn, leads to the low level of production and adds to various other problems for the businesses, ultimately, resulting in under-utilisation of resources.
Org of Comm & Mgmt (2014)