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Marketing Challenges of Small Scale Industries

In a small business, the marketing function comes across the entire company, affecting the entry aspect of its operation from production to marketing. These are the marketing challenges of small scale industries:

1. Low Product Quality
2. Problem of Brand Image
3. Limited Market
4. Lack of Bargaining Skill
5. Problem of Credit Sales
6. Lack of Market Research
7. Competition from Large Scale Units
8. Lack of Trained Personnel
9. Other Problems

Low Product Quality

It is very difficult for small units to have quality testing equipment. Therefore small units are compelled to compete in terms of product price rather than quality.

Problem of Brand Image

Large-scale units formulate their strategy and create a brand image with the help of advertisement and media. However small-scale units face a problem of brand image due to their limited propaganda.

Limited Market

Small-scale units lack transport, storage, and warehousing facilities. Thus generally they cater to the needs of the local and limited market.

Lack of Bargaining Skill

These are forced to sell their products at very low prices.

Problem of Credit Sales

Small units have to borrow excessive working capital than what is really needed. Therefore cost of production is increased due to interest lost.

Lack of Market Research

Due to the less capital small-scale units take less interest in market research.

Competition from Large Scale Units

Small-scale units face fierce competition from their counterparts in medium and large-scale industries. Small units are unable to compete with large-scale units as their size and scale of production are small and less cost-effective.

Lack of Trained Personnel

Most of the employees are untrained and inefficient having less knowledge of marketing.

Other Problems

• Poor Customer Satisfaction
• Outdated Technology
• Slow Speed of Market Communication

FAQs Section About the Marketing Challenges of Small Scale Industries