James Belly

Which Factors Do Marketing Agencies Consider While Planning SME Marketing Strategies?

The need for having a good marketing strategy for SME (Small and Medium Enterprises) directors and owners is nothing short of a priority. Good promotional strategies can be useful in having optimal impact on businesses and getting maximum benefits. Find out about some of the top factors that are considered by marketing strategies for SME.

Market Competition

Marketing companies consider how strong the present market competition is. Professionals take different factors into account, such as level of exit barriers, diversity of competition, levels of product differentiation, customer switching costs, economies of scale, rate of market growth, number of firms in the industry etc.

Barriers

Experts also consider the barriers or the threats that the entry of new players into the market poses. These factors include government regulations, branding and scale of present competitors, protection level of necessary intellectual property, highly specialized equipment, capital costs of marketing campaign creation and more.

Substitutes

They also think about the threats that are posed by substitute services and products. The different factors to consider include product differentiation, relative price-performance of substitutes, buyer propensity to substitute, customers' expense of switching to an alternative etc.

Customers' bargaining power

Marketing specialists also determine the amount of bargaining power that customers tend to have. Availability of substitutes, product differentiation, brand name strength, number of other customers, volume of services or goods purchased etc are some factors that affect the bargaining ability of customers.

Suppliers' bargaining power

They also assess the extent of bargaining power that suppliers have. The different factors include vertical integration of suppliers, whether they can offer differentiated products etc. If you think digital marketing strategies for SME may be right for you, visit this website to learn more.

Author Bio:-

I'm James Belly, marketing consultant, providing info about digital marketing, small business marketing and small business advertising for the companies and SME's. You can find his thoughts at SME marketing blog. For more information on an advertising agency in Berkshire, check out this site.