Analysis of Nature of Capital and Motivational Factors of Marketing in MSMEs
monikapranavmahajan@gmail.com ,
Abstract: Marketing is a strategy that focusses on the client and serves the purpose of generating money for a company over an extended period of time. For the purpose of determining what the consumers want and need and then offering it to them, it is necessary for every department inside the organisation to provide feedback. Since marketing is such a fluid profession, it is inevitable that it would go through continuous modification. This is something that one would anticipate. On the other hand, marketing is growing more significant in every organisation and in our everyday lives in some different manner. Marketing is an integrated system of activities that offers shape, place, time, and ownership utilities. Value is added to commodities via the marketing process, which is an integrated system of actions. One of the primary goals of marketing is to steer the efforts of a firm towards meeting the needs and desires of consumers. The discovery of what people want, the creation of a product that satisfies those criteria, and the subsequent determination of how to sell, promote, and distribute the product are all components of marketing and distribution strategy. However, in the actual world, marketing is not only responsible for activities such as advertising, distribution, selling, and other similar activities.
Keywords: Nature , Capital , Motivational , Factors , MSMEs, Marketing
INTRODUCTION
Marketing and Customer:
Marketers would no longer be considered an afterthought; rather, they would be considered an essential component of the production process. There was a distinct divide between marketing and selling the product or service. One of the aspects of marketing that was realised was that selling is only one among many. As a result, marketing would play a far more significant role in the organisational structure of the company. Marketing is a strategy that focusses on the client and serves the purpose of generating money for a company over an extended period of time. For the purpose of determining what the consumers want and need and then offering it to them, it is necessary for every department inside the organisation to provide feedback. Since marketing is such a fluid profession, it is inevitable that it would go through continuous modification. This is something that one would anticipate. On the other hand, marketing is growing more significant in every organisation and in our everyday lives in some different manner.
At the core of marketing is the process of identifying and meeting the demands of both individuals and society. When it comes to marketing, the statement "meeting needs profitably" provides a concise explanation of the field. CarMax transformed the process of selling used cars in response to customers' demand for greater certainty in their purchases. Procter & Gamble, which produced Olestra in answer to consumers' need for tasty, low-fat food, is just one example of a company that has profited on consumer preferences for a long time.
Marketing Strategy in Haryana:
When it comes to marketing planning, the most significant part is the creation of a marketing strategy. After all is said and done, it guarantees that the company will be able to get the funds and earnings that were predicted. Furthermore, it is the strategy that differentiates one firm from another and makes its product unique in contrast to that of its competitors by causing it to stand out from the crowd. The business unit will be presented with a game plan after the strategy development process has been completed. This game plan will detail the activities that should be taken with each product or brand that comes within its jurisdiction, as well as the steps that should be taken to continue with those actions. A marketing strategy is the process of selecting a specific segment of the market to serve as the company's target market and then developing the appropriate combination of product or service, pricing, promotion, and distribution system in order to satisfy the desires and requirements of the customers who are a part of the target market. This process is what constitutes a marketing strategy.
The marketing strategy of a business is the plan that the firm employs in order to effectively give its customers with the value that they are looking for. In addition to this, it provides specifics of the ways by which the organisation would be enabled or empowered to provide that desired value. When it comes to picking values, developing values, and communicating values to consumers, the marketing strategy is the document that specifies the method in which the organisation will go about doing all of these things.
Importance of Small-Scale Industrial Sector
Small-scale enterprises have been playing a crucial role in the general economic development of India, which is located in a country where millions of people are either without jobs or working at jobs that pay less than they are worth. One of the most important problems that the country is now dealing with is the high percentage of unemployment, and another is the prevalence of poverty. One of the ways in which this business contributes to the settlement of these two problems is by facilitating the creation of fast job opportunities on a large scale while simultaneously needing less expenditures. It was said by Dr. Manmohan Singh that "the success of manufacturing in the small scale sector lies in the key to our success in employment." This assertion was made in a statement. building of industries, which need a significant amount of capital, is the fundamental factor that defines the economic progress of any country. This is because industries require building. In order to achieve balanced economic growth in a country like India, where capital is restricted and unemployment is prevalent, the expansion of small-scale firms is highly vital. This is because capital is limited and unemployment is widespread. Small-scale businesses have a number of advantages, including the fact that they are widely dispersed throughout rural, semi-urban, and metropolitan areas; they also foster the formation of an entrepreneurial base; they have a shorter gestation period; and they guarantee that income and wealth are divided in an equitable way.
Cottages and other types of small-scale industrial units have been flourishing in India from the early days, prior to the country's declaration of independence. They were the principal sources of cash and employment, and the products that they created were acknowledged for their excellence and creative genius within the industry. When the West of Europe, which is considered to be the birthplace of the modern industrial system, was inhabited by barbarians who were not civilised, India was renowned for the wealth of her rulers and the great artistic talent of her artisans. This occurred during a time when the West of Europe was inhabited by barbarians who were not civilised. "The skill of the Indians in the production of delicate woven fabrics, in the mixing of colours, in the working of metals and precious stones, in the preparation of essences, and in all manner of technical arts has enjoyed a worldwide celebrity since very early times," Prof. Weber stated. "Their expertise has been recognised all over the world."
Initiatives for New Policy Starting In 1999
The developing economic scenario in the altered liberalised and competitive economic environment that has happened since the commencement of economic reform needed structural and fundamental adjustments in the policy framework that was put in place for the growth of small-scale companies. These changes were necessary because the economic environment and the economic environment have changed. Because of this, the emphasis shifted from protection to promotion as the primary concern. In the period of time that followed the reform, the government put into effect a number of different actions, some of which were partial de-reservation, modifications to investment constraints, enhancements to facilities for foreign engagement, and the building of development centres.
The promotion of exports, assistance with marketing, incentives for quality improvements, and other similar initiatives are all examples of important instances of these. The examples that follow are as follows:
On October 14, 1999, a new Ministry of Small-Scale Industries and Agro and Rural Industries was founded with the intention of increasing the focus that is directed towards the problems that are impacting the Small Scale sector. This was done with the intention of expanding the attention that is given towards these concerns. After then, a plan that was referred to as the "Agenda for the Millennium" was implemented inside this ministry.
Challenges Of Small-Scale Industrial Sector
Due to the fact that it was unable to overcome the fundamental challenges that it encountered, which included the capacity to inspire enormous potential, the Small Scale Industrial Sector in India was unable to make substantial development. This was the reason for this.
1. The problem of skilled manpower: One of the most important factors in determining the success of small-scale units is the entrepreneur as well as the workers of the unit, provided that the staff are both knowledgeable and effective. Due to the fact that inefficient human elements and a labour force that lacks expertise create an unlimited number of problems for the continuous survival of small enterprises, the number of challenges that small firms face is always growing.
2. A lack of machinery and equipment: A concentrated attempt is being made by small-scale businesses to include contemporary machinery and equipment into their production process. This is being done in order to compete with larger corporations. It is the case that the great majority of the smaller units make use of traditional and outmoded kinds of technology and gear. A big barrier that prevents the growth of small-scale businesses is the lack of appropriate technology and equipment. This is a huge impediment that stands in the way of the development of these businesses.
3. Competition from big and medium-scale units as well as imported goods: It is very difficult for small-scale units to compete with the goods that are produced by large-scale units and imported articles, which are of a better quality and significantly more inexpensive than the items that are produced by small-scale units.
OBJECTIVES OF THE STUDY
- To study on importance of small-scale industrial sector
- To study on challenges of small-scale industrial sector
RESEARCH METHOD
Research Design
It is the research plan that serves as the foundation upon which data is gathered for the goal of doing research. In light of this, it contributes to the effective execution of the study strategy. Beginning with the meticulous preparation of the procedures that will be used for the collection of the pertinent data, it is the first step.
Survey Procedure
Sample design
The sample design used for the study is explained in the following section:
a) Population
Those individuals, organisations, groups, or events that are the subject of an investigation are collectively referred to as a population. The businesses that are registered in each of Haryana's districts make up the population that is being studied for this particular research. The total number of micro, small, and medium-sized enterprises (MSMEs) registered in Haryana is 416849. (Directorate of Micro, Small, and Medium-Sized Enterprises, Haryana)
Data collection
For the purpose of this inquiry, both primary and secondary sources of information were researched. A questionnaire was sent to a representative sample of respondents from Ambala, Kurukshetra, Panchkula, and Yamunanagar. This questionnaire was used to obtain the main data for this research. Karnal, Panipat, and Kaithal (Karnal Division) are located in the Ambala Division. A primary investigation has been carried out in the way that is described below.
Primary Data
1 Sampling
When conducting an intensive and in-depth study of marketing techniques used by small size enterprises in Himachal Pradesh, the sampling method was utilised as the research method of choice. The finding of the research is based on the gathering of primary data via a survey sample consisting of three hundred individuals who participated in the study. It has been decided to use the Muiti stage sampling method in order to obtain samples for the purpose of the research. The first step was dividing the whole state into twelve districts, which encompassed the full geographical region of the state. Among the twelve districts, four districts, namely Ambala, Kurukshetra, Panchkula, and Yamunanagar (all belonging to the Ambala Division), Karnal, Panipat, and Kaithal (all belonging to the Karnal Division), have been chosen because they include the greatest number of small-scale enterprises. Over the course of the subsequent step, a complete sample was chosen from each district. Despite the fact that the researcher has chosen the respondents in a random fashion to the greatest extent feasible, it is essential to point out anything here. The researcher was able to identify respondents who were able to supply all of the information by using this approach, which was beneficial to the researcher.
b) Sample unit
Enterprises that are registered with the various district industries corporation in their different districts in Haryana will serve as the sample unit for the duration of the research.
Table 1 sample size of respondents
Sr. No. |
District |
Micro |
Small |
Medium |
Total |
1. |
Kurukshetra |
1324 |
313 |
10 |
1647 |
2. |
Kaithal |
378 |
144 |
7 |
529 |
|
Total |
1702 |
457 |
17 |
2176 |
c) Sample techniques
The whole of Haryana state is divided into six divisions from which two divisions were selected.
Table 2 District selected from Division
Sr. No. |
Division |
District |
1 |
Ambala Division
|
Ambala, Kurukshetra, Panchkula, Yamunanagar |
2 |
Karnal Division |
Karnal, Panipat, Kaithal |
One district from each division was selected using simple random sampling.
Statistical Techniques
Following the acquisition of data from both sources, it has been appropriately categorised, analysed, and interpreted by making use of a wide range of statistical and mathematical tools and procedures in order to arrive at acceptable inferences and conclusions. In this particular investigation, the statistical and mathematical methods that were used include the mean, the standard deviation, skewness, kurtosis, chi-square, zero order correlation, and factor analysis, amongst others.
DATA ANALYSIS
Table 3 Kind of Establishment and Motivational Factors: An Analysis
Kind of Establishment |
Demand of Product |
Large Scale Industries |
Any other Agency |
Total |
Sole Ownership |
194 (64.7) |
12 (4.0) |
32 (10.6) |
238 (79.3) |
Partnership |
40 (13.3) |
0 (0) |
0 (0) |
40 (13.3) |
Pvt. Ltd. |
14 (4.7) |
3 (1.0) |
5 (1.7) |
22 (7.4) |
Total |
248 (82.7) |
15 (5.0) |
37 (12.3) |
300 (100) |
Data Compiled through Questionnaire. x2 = 14.84 P< 0.05 Figures in parenthesis depict percentage. C = 0.217
The vast majority of respondents were of the view that they conducted market research before to the manufacture of a certain product. On the other hand, 39 percent of respondents were of the opinion that they did not do any significant and thorough market research prior to the production of a specific product. At a significance threshold of five percent, the chi-square test of independence reveals a significant result. Therefore, it is possible to draw the conclusion that there is a considerable link between the kind of ownership and the replies about market research. There is a wide range of opinions surrounding marketing research, and these opinions vary depending on the sort of business. To a greater extent than private enterprises, sole proprietorships and partnership firms are more conscientious. The companies in question have limited resources, and they assume that doing market research would safeguard them and reduce the likelihood that their product will fail completely.
Table 4 Kind of Establishment and Market Research: An Analysis
Kind of Establishment |
Yes |
No |
Total |
Sole Ownership |
154 (51.3) |
84 (28.0) |
238 (79.3) |
Partnership |
23 (7.7) |
17 (5.6) |
40 (13.3) |
Pvt. Ltd. |
6 (2.0) |
16 (5.4) |
22 (7.4) |
Total |
183 (61.0) |
117 (39.0) |
300 (100) |
Data complied through Questionnaire x2 12.099 P<0.05 Figures In parenthesis depict percentage C=0.197
The following table presents the opinions of the respondents about the role that technological advancement plays. It was found that the majority of respondents, who accounted for 92.3% of the total sample, were of the view that technical advancements play a significant influence in increasing the quality of the product. On the other hand, just a small percentage of business owners, 7.7 percent, said that technical advancements did not contribute in any way to the enhancement of the quality of their product. The chi-square test of independence revealed a significant result at the five percent level of significance when it was used. A additional argument in its favour is provided by the magnitude of the contingency coefficient. Consequently, it is possible to draw the conclusion that the two variables are connected to one another. In addition, this demonstrates that the opinions of business owners shifted in accordance with the transformation of the kind of institution. It gives the impression that they do not share the same viewpoint about the advancement of technology. Partnership corporations and private companies are of the opinion that there is a correlation between technical advancement and an improvement in the quality of the product. For this reason, it is possible to draw the conclusion that business owners think that technical advancements assist them in the production of high-quality goods. Furthermore, it suggests that in order for them to survive in the competitive situation, they need to keep themselves up to speed with the ever-changing technical environment to ensure their survival.
Table 5 Kind of Establishment and Technological Upgradation: An Analysis
Kind of Establishment |
Yes |
No |
Total |
Sole Ownership |
215 (71.6) |
23 (7.7) |
238 (79.3) |
Partnership |
40 (13.3) |
0 (0) |
40 (13.3) |
Pvt. Ltd. |
22 (7.4) |
0 (0) |
22 (7.4) |
Total |
277 (92.3) |
23 (7.7) |
300 (100) |
Data complied through Questionnaire. x2- 6.796 P< 0.05 Figures in parenthesis depict percentage. C=.14
The data shown in the table makes it abundantly clear that the majority of respondents, who come from a variety of company ownership contexts, are of the view that quality awareness drives up the price of the product. A very small number of business owners were in disagreement with the view. It seems that some of the small business owners were concerned about quality, but that some of them were unaware of this idea. An inconsequential result was obtained using the Chi-square test of independence when the significance threshold was set at five percent. Therefore, it is possible to draw the conclusion that the two variables, namely the kind of ownership and the view on quality awareness, are not linked to one another in any connection. Each and every sort of entrepreneur has the same attitude with regard to the idea of quality awareness. When it came to the point that quality awareness contributes to an increase in manufacturing costs, they were all in agreement.
Table 6 An Analysis of Nature of Capital and Motivational Factors
Nature of Capital |
Demand of Product |
Large Scale Industries |
Any other Agencies |
Total |
Owned |
75 (25.0) |
7 (2.3) |
8 (2.7) |
90 (30.0) |
Loaned |
173 (57.7) |
8 (2.7) |
29 (9.6) |
210 (70.0) |
Total |
248 (82.7) |
15 (5.0) |
37 (12.3) |
300 (100) |
Data complied through Questionnaire x2- 3-23 C= 0.103 Figures in parenthesis depict percentage P >0.05
An analysis of the respondents' opinions has also been conducted, taking into consideration the nature of capital and their perspectives on market research. The data shown in the table makes it abundantly evident that sixteen percent of the business owners carried out market research prior to the manufacture of a certain product in large quantities. At a significance threshold of five percent, the chi-square test of independence yields a result that is inconsequential, as shown by the computed value. Consequently, the contingency coefficient is used in order to answer the inquiry about the nature of the link that exists between the two variables that are taking into consideration. The result that was determined, which was.04, provides further support for the study that was presented earlier. Taking into consideration the data presented above, one may get the conclusion that the kind of money does not have any impact on the marketing research. This demonstrates that business owners do, in fact, feel that doing market research does play a significant part in the process of establishing product strategy.
Table 7 Test Marketing and Various Market Factors – An Analysis
Factors |
LE |
SE |
Not at all |
Total |
X̄ |
σ |
Sk. |
Kt. |
χ² |
P Value |
Consumer’s reaction |
138 (46%) |
132 (33%) |
30 (10%) |
300 (100%) |
2.36 |
0.68 |
-0.54 |
-0.69 |
73.68 |
.000 |
Competitor’s reaction |
179 (59.67%) |
71 (23.67%) |
50 (16.67%) |
300 (100%) |
2.43 |
0.76 |
-0.90 |
-0.70 |
95.82 |
.000 |
Product weaknesses and deficiencies |
146 (48.67%) |
112 (37.33%) |
42 (14%) |
300 (100%) |
2.35 |
0.71 |
-0.62 |
-0.83 |
56.24 |
.000 |
Demand of product |
154 (51.33%) |
113 (37.67%) |
33 (11%) |
300 (100%) |
2.40 |
0.68 |
-0.71 |
-0.62 |
75.74 |
.000 |
Data complied through Questionnaire. x2=33.066 P<0.05 Figures in parenthesis depict percentage.
According to the observations of business owners from Karnal, Karnal, and to determine whether or not test marketing assists them in gaining knowledge about the responses of consumers, the reactions of competitors, the flaws and shortcomings of goods, and the demand for products. Exhibit 5.5 demonstrates that test marketing is beneficial to them in gaining an understanding of the response of the customer. It has been determined that the mean value is 2.36, which is more than the mean standard score on a scale of three points. Observation is made of the deviation from the average value. A distribution that is negatively skewed and moved towards the upper side of the mean value is indicated by a skewness value that is negative (-.54), as seen in the previous sentence. The value of kurtosis provides further support for the conclusion presented above. At a significance threshold of five percent, the Chi-square test of goodness of fit reveals a significant result. It suggests that the business owners would have the opportunity to get further information on their potential clients.
Additionally, they will be able to determine whether or not customers are willing to pay for their items and get knowledge on how to enhance the products in order to entice new customers to join their newly established firm. It is possible to examine the response of competitors with the assistance of test marketing. The value of the statistical mean, which is 2.43, reveals this information. There is a notation of the standard deviation. On the other hand, the value of skewness indicates that the opinions of the respondents are skewed towards the upper side of the mean value. The kurtosis indicator has a value of -.70. The results of the Chi square test of goodness of fit indicate that the views of the respondents are not distributed in an equal manner. As a result, it is possible to reach the conclusion that entrepreneurs are able to come to some significant conclusions on their direct and indirect rivals. It will be possible for them to get information about the precise response regarding their rivals. The majority of respondents, who accounted for 48.67 percent of the total, were of the view that test marinating is beneficial in determining the shortcomings and shortcomings of a product.
According to the results of the calculations, the mean and standard deviation are found to be 2.35 and.71 respectively. In spite of the fact that the values of skewness and kurtosis are recorded as -.62 and -.83 separately. It may be deduced from this that the bulk of the replies are moving in the direction of the increased side of the mean value. An further chi square test reveals a significant result at a level of significance of five percent. This demonstrates that marketing gives business owners the ability to avoid the possibility of their products failing. They will be able to become aware of the preferences of their clients, both positive and negative. The table reveals that the majority of the respondents, out of the entire sample, believed that the demand for the product could be assessed with the assistance of test marketing. This sentiment was expressed by the majority of the respondents. On a scale of three points, the mean value is found to be greater than the mean standard score, which is equal to two. In terms of deviation from the mean value, the value is.68. The skewness and kurtosis values that were computed result in a value of -.71 and -.62, respectively. It is clear from this that the distribution is skewed in a negative direction and has moved towards the upper side. The results of the Chi-square test of goodness of fit indicate that the sentiments expressed by the respondents are not evenly distributed and are moving in the direction of the upper side.
Discussion
The study's results show that despite the important role that SSIs play in Haryana's economy and job creation, there is still cause for worry over their marketing management procedures. Due to a lack of knowledge or money, many businesses continue to depend primarily on antiquated techniques of advertising rather than investing in more contemporary digital strategies. Their competitiveness is hindered, particularly in national and international markets, by challenges such as a lack of branding initiatives, restricted access to distribution channels, and poor market intelligence. While certain districts, like as Karnal and Kurukshetra, do better than others in terms of female employment and the number of businesses, the area as a whole still has little export activity. This points to unrealised potential that may be enhanced with strategic interventions like marketing education, stronger institutional backing, and the use of cutting-edge infrastructure. To improve SSIs' marketing capacities and guarantee their long-term success in a highly competitive market, the panellists agree that entrepreneurs, government agencies, and trade groups must work together.
CONCLUSION
This study aims to get an understanding of the present aspects of marketing and marketing strategies by attempting to grasp these developments. Marketing is an integrated system of activities that offers shape, place, time, and ownership utilities. Value is added to commodities via the marketing process, which is an integrated system of actions. One of the primary goals of marketing is to steer the efforts of a firm towards meeting the needs and desires of consumers. The discovery of what people want, the creation of a product that satisfies those criteria, and the subsequent determination of how to sell, promote, and distribute the product are all components of marketing and distribution strategy. However, in the actual world, marketing is not only responsible for activities such as advertising, distribution, selling, and other similar activities. Over the course of time, it evolves into an integration of several company functions with the ultimate objective of meeting the needs and desires of consumers. Through the process of influencing people's shopping behaviours, the marketing business enhances the standard of living of individuals. To put it simply, marketing is the study of making things happen, both in terms of place and about the passage of time.