Thursday, 17 January 2013
CONTEXT
It is very important for entrepreneurs to carefully handle their marketing mix variables i.e. product, price, placement, and promotion. A smart entrepreneur carefully examines the product’s acceptability, price strategies, product placement at different locations and promotional activities. Promotional activities play an important role in the overall success of a business. Multinational companies and local manufacturers operating large firms allocate millions of rupees to promote their product and snatch a bigger pie of market share. Same promotional pattern is least observed among small business owners. They give least importance to promotional activities and consider promotional budget as unnecessary expense. But proactive entrepreneurs have clutched the importance of promotion in increasing sales and allocate some amount for their promotional activities.
In Pakistan, more than 3.2 million small and medium size businesses are operating. These businesses contribute around 30% of Pakistan’s GDP and employ a large number of people. Small businesses are comparatively easy to start and operate. They have great potential for growth but performing below the expected rate. One leading factor
responsible for this stagnancy among SMEs is lack of promotional activities. As mentioned above, they are not familiar with the fact that how a simple promotional activity can sustain the competitive edge over competitors. They prefer to follow the traditional methods of running the business. In fact, they are losing a big share of the market due to this lethargic attitude towards promotional methods.
REQUIREMENTS
Q1. In your opinion which factors hinder the small business owners to stay away from promotional activities in Pakistan? Give sufficient arguments in the favor of your answer.
(15 marks)
Q2. What methods a small business owner can use to promote his product/service within a small budget?
It is very important for entrepreneurs to carefully handle their marketing mix variables i.e. product, price, placement, and promotion. A smart entrepreneur carefully examines the product’s acceptability, price strategies, product placement at different locations and promotional activities. Promotional activities play an important role in the overall success of a business. Multinational companies and local manufacturers operating large firms allocate millions of rupees to promote their product and snatch a bigger pie of market share. Same promotional pattern is least observed among small business owners. They give least importance to promotional activities and consider promotional budget as unnecessary expense. But proactive entrepreneurs have clutched the importance of promotion in increasing sales and allocate some amount for their promotional activities.
In Pakistan, more than 3.2 million small and medium size businesses are operating. These businesses contribute around 30% of Pakistan’s GDP and employ a large number of people. Small businesses are comparatively easy to start and operate. They have great potential for growth but performing below the expected rate. One leading factor
responsible for this stagnancy among SMEs is lack of promotional activities. As mentioned above, they are not familiar with the fact that how a simple promotional activity can sustain the competitive edge over competitors. They prefer to follow the traditional methods of running the business. In fact, they are losing a big share of the market due to this lethargic attitude towards promotional methods.
REQUIREMENTS
Q1. In your opinion which factors hinder the small business owners to stay away from promotional activities in Pakistan? Give sufficient arguments in the favor of your answer.
(15 marks)
Q2. What methods a small business owner can use to promote his product/service within a small budget?
