India’s newly digitized MSMEs need offline marketing as much as online
- Both online and traditional offline marketing tactics have to be used together to create an effective marketing strategy for MSMEs.
- Preeti Ubale noted that MSMEs need immediate revenues and mass media mediums can offer them that much more easily.
- While making marketing strategies, it is also important to define target audience and niche to develop brand awareness.
AdvertisementWhile digital marketing may be important to keep up with the digital trends that have emerged post Covid-19 pandemic, it may not be all that micro, small and medium enterprises (MSMEs) need.
According to a panel of speakers on Business Insider’s discussions around the need for digital marketing for MSMEs, both online and traditional offline marketing tactics have to be used to form smart hybrid brand awareness activities for these
Preeti Ubale, co-founder and COO of software company SMBXL, noted that MSMEs need immediate revenues and mass media like TV, radio, hoarding and pamphlets can offer them that much more easily. In comparison, digital marketing initiatives take time to show results unless they are paying a platform or marketplace.
“The only thing used to fetch them immediate sales [was] having feet on the street, going and approaching their customers, talking to them, convincing them. So this was immediate sales and when it comes to digital, it is not immediate,” Ubale added.
She noted that there is no specific formula for how to allocate funds for both these marketing initiatives, as it all depends on the stage a business is in.
Meanwhile, Amoli Nagpal, head of e-commerce and SME segment at IT company Admitad Affiliate Network India, also emphasizes on a ‘healthy mix’ of online and online marketing initiatives if a small business has a target to increase return on investment (ROI) and transactions. But while making marketing strategies, it is also important to define target audience and niche to develop brand awareness.
A business that caters to the needs of 20-30 year olds may do better if more funds are allocated to online campaigns.
Covid-19 was one of the major factors that led to the aggressive digitization of India’s 6.3 crore
Five in ten (or about 53%) micro and small enterprises in India were using digital sales channels such as online aggregators, marketplaces, social media and mobile marketing by January 2021, a Crisil report based on a survey of 566 companies noted. The number was at three out of ten (or about 29%) pre-pandemic.
Even Indian fintechs have jumped in to help this segment overcome their biggest challenge of access to capital. However, lack of data continues to be a hurdle for most fintechs that are trying to help and the solutions can only be fully utilized once that hurdle is crossed.
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