NEW MARKETING PARADIGM FOR SMALL AND MEDIUM SIZED ENTERPRISES

Abstract

Due to the difference that exists between small and medium sized enterprises (SME) on one side and big enterprises on the other, traditional marketing applied by big enterprises is inappropriate for SMEs, particularly within the framework of marketing mix. Modern literature, which studies SMEs marketing, most often points to the need to apply relationship marketing (RM) which results in marketing network. The role of owner/manager is given a particularly prominent place in this framework, it being a key characteristic that differentiates SMEs from big enterprises. Creating personal networks with stakeholders, the owner/manager influences SME marketing, which is crucially important for making successful marketing decisions. The main topic of this paper is analysis of relationship marketing as a quality framework for SMEs marketing. The paper aims to show that for SMEs relationship marketing is appropriate, and that there is a strong tie between relationship marketing, personal networks and SMEs. SMEs practice has long been subject to criticism, and researchers have claimed that small and medium sized entrepreneurs have limited knowledge of marketing. Experience, however, has shown that SMEs possess unique characteristics which differentiate them substantially from big enterprises. Due to the said, a need has arisen to develop a new marketing framework which would be more acceptable for them. With occurrence of a new paradigm, such as relationship marketing, marketing is undergoing a transformation and becomes more applicable in SMEs practice.