What advertising looks like for SMEs vs How it works for big companies
The sequential structure associated with marketing follows a similar framework for large corporations as well as small and medium enterprises. Both classes of businesses start their operational cycles with product/service development and later move on to marketing and sales. Customer research sits at the forefront of the business strategies implemented by companies of both sizes. However, at a fundamental level, the marketing strategies adopted by the two are completely different. The distinction emerges due to various reasons; all of which loosely derive themselves from basic functional protocols of the two types of organizations at play. More precisely, Small and Medium Enterprises(SMEs) don’t operate the same way big corporations do, and thereby the effective marketing strategy deployed by both are contrasting in nature.
To understand why the marketing strategies adopted by fortune 500 companies don’t work their charm for SMEs, let’s consider a few systemic differences between the two:-
Corporations spend a fortune on their marketing endeavors, whereas SMEs beat the odds with innovation
According to Microsoft’s annual report from 2018 (1), the multi-national corporation spent about $17.5 billion on sales and marketing. The expenditure amounted to 16% of the company’s total revenue, which marks a 13% increase in the allocated budget compared to the last fiscal year. On the other hand, a small business would be termed highly successful if it makes Microsoft’s advertising budget in total revenue. Evidently, large corporations have a big financial edge over SMEs when it comes to spending money on advertising. Therefore, to remedy this constraint, small businesses have no other choice than to base their marketing strategies on innovation.
Corporations have dedicated marketing personnel, whereas SMEs have more organizational flexibility
Apple Inc. follows an elaborate corporate hierarchical structure made up of various divisional characteristics. Product-based divisions take care of the staffing requirements of different important functional areas of the company (marketing being of them). The tenacious corporate handle over the company’s workflow does provide for a dedicated marketing team, but compromises on organizational flexibility. When compared to SMEs, the decision-making process in corporations follows a more carefully mapped out and somewhat longer route, which can hinder individual creativity. However, startups don’t face such issues owing to their comparatively lesser formal organizational structure. Innovation on the individual level often drives the marketing campaigns of small businesses. Conversely, SMEs cannot afford the multi-level expertise that a big corporation can.
Corporations market themselves with the brand-identity in mind, whereas SMEs leverage their entrepreneurial identity to remove constraints
When a large corporation launches a marketing campaign, it focuses on maintaining a consistent image and telling a story. For instance, Nike’s Just Do It campaign doesn’t directly advertise any of the brand’s products but focuses on selling a story that people come back for time and again. However, owing to financial constraints, a small business has to justify each and every penny spent on marketing. If the campaign doesn’t yield a positive response from the customer base while simultaneously fending off the competition, a crisis presents itself. Resource limitations cause the creative approach of SMEs to differ from large businesses in a drastic manner. Moreover, the marketing strategy of a small business keeps developing as the entrepreneurs acquire more knowledge by trial and error. In simpler words, corporations focus their advertising efforts mostly on staying true to the brand’s identity, while SMEs try to beat resource limitations by optimizing their unique business environments.
At the end of the day, neither big corporations nor small businesses can survive without an effective marketing strategy. Furthermore, the silver lining lies in the fact that as long as a business organization is self-aware in its marketing, the end result is always fruitful.
Source of the concept:- https://www.researchgate.net/publication/242342112_Innovative_marketing_in_SMEs
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Innovative marketing in SMEs, Marketing strategies, Advertising, Digital Marketing Trends, Best Online marketing strategies, social media campaigns, Latest Marketing News, Advertising Agency News, Fortune 500 companies, SMEs Marketing, Small and Medium Enterprises, Innovation, Innovative technology ideas, Effective marketing strategy
