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html. In a survey of 400 small businesses, each with fewer than 100 employees, it was reported that the Internet had significantly improved growth and profitability while helping to reduce costs. Some businesses even indicated that they rely on the Internet to survive. Interestingly, the survey participants themselves took advantage of e commerce to purchase computers and office technology online 54 percent, capital equipment and supplies 48 percent, and office furnishings 21 percent; one third bought inventory for online resale, and 59 percent purchased other business related goods online. Robyn Greenspan, Net Drives Profits to Small Biz, ClickZ, March 25, 2004, accessed October 7, 2011, . E commerce offers many benefits to small businesses, including the following:E commerce: Small Businesses Become Virtual Giants on the Internet, SCORE, accessed October 7, 2011, a virtual giant. pdf. These benefits make it possible for a small business to compete with, perhaps even overtake, larger companies that do not have the agility and innovation of a smaller company. The realities of Internet usage make a strong case for small businesses to integrate e commerce into their operations, including the following:We live in a society of 24/7 immediacy, where the equivalent of foot traffic is increasingly becoming eyeballs on a website. Sramana Mitra, The Promise of E Commerce, Forbes. com, April 9, 2010, accessed October 7, 2011, intelligent technology ecommerce.
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If they dont promote their business, it will eventually dry up and blow away, no matter how well their product or service is. Generally in small businesses, the overall management is quite unstructured, informal and unorganized and, the critical processes, sustaining the organisation belongs to the business executives. Small businesses tend to have limited resources in terms of both financial and human to assign to marketing, and frequently the owner manager has considerable expertise in development and production, but is less skilled in bringing products to market. The high fixed costs of marketing also mean that small businesses must spend proportionately more of their income on marketing than larger firms. As marketing itself is a complex, expensive and resource intensive activity, the management of small firms see marketing as a cost rather than an investment. They fail to understand that competitive advantage can be developed and maintained through anticipating customer needs, through understanding market dynamics and trends, and through communicating effectively and efficiently with customers. It is better for small firms to have a marketing advantage rather than a cost advantage. Hence, marketing is an investment that, if done wisely, not only pays for itself but allows the business to grow. When proper marketing gets the message to the right audience, delivered in the right context, and at the right price, it cant go wrong. One of the greatest needs of managers of small businesses is to understand and develop marketing programs for their products and services. Small Business success is based on the ability to build a growing body of satisfied customers.
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