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?
