Internet -based services across the SME Value chain

Free and cost -effective online applications are available for all typical business processes of SMEs. However,there are a number of operational processes that are more technical in nature and are industry specific such as designing,production,quality control and safety. Even though there are online software applications to support these processes,there are specialised tools meant for specific industries and purposes. In line with our focus, we have developed a series of posts which present some of the more generalised areas of business operations of SMEs and highlight how internet-enabled technologies can help them in increasing efficiency and achieving faster growth. In this post we will focus on the Marketing tools which are available for SMEs

A. Marketing

Some of the biggest challenges that SMEs face are reaching out to the target audience for their products and services and locating new markets to expand their businesses. Most of the SMEs find it difficult to allocate funds for marketing due to budgetary constraints and depend on goodwill ,personal-contacts  and word-of-mouth for their sales.The general trend is to invest in tangibles such as plant,machinery and office space. However, with greater availability of information loyalty of buyers cannot be taken for granted and systematic marketing and brand building by using the internet as a medium,comes as a boon in such a scenario.

a. Business to Business (B2B) Marketplaces

SMEs generally find it difficult to advertise their products and services in paid media such as newspapers, banners and television. It is also not possible for them to meet large number of potential clients physically in order to market their products, which makes targeting international buyers even more difficult.    B2B marketplaces can provide solutions to many of these issues that restrict SMEs from expanding their market. There are several online B2B marketplaces that offer a wide range of services specifically targeted at the SME sector . These services can be utilised for various aspects of marketing either for free or by spending some nominal amount. These are platforms where both sellers and buyers can leverage the power of internet to have worldwide visibility,interact and conduct business. These portals also support their communication needs and help them display an array of products in variety of ways. Some of the major services offered by B2B portals include:

• Listing of the enterprise:  SMEs can  list themselves in the directory of enterprises on these portals and provide details about their products and services . This service is provided free by most of the B2B portals.  Although these are usually  restrictions in terms of numbers of products that can be uploaded for free ,there are B2B portals that allow suppliers to upload unlimited number of products and services . These portals are great platforms for suppliers to interact with potential buyers and have been very successful for export oriented SMEs. Both national as well as international players looking for specific products can be members of the directory. Any potential buyer searching for similar products or services can view the offerings and contact the suppliers through mail or phone.
• Sales leads: These refer to some specific product/service requirement of a potential buyer posted on the portal. This lead can be used by listed enterprises to sell their products as per their requirement.
• Web-site building: Those SMEs that do not have a website of their own can access this facility to build a simple website for free that can be  used as an interface to reach out to prospective buyers.
• Tenders: A large number of local , national and international  tender documents are available on these portals. These can be accesses for free and the bidders  have to incur costs only while applying. At present , IndiaMART is the only portal in india that offers free tender service in the market.
• Trade shows: These portals regularly update the members regarding various local, national and international trade shows where they can participate and promote their products.
• Latest news on the sector: The SMEs can keep track of various activities and policy changes  in both domestic and international markets and get up-to-date  information about sector’s performance.
• Value-added services: These are generally paid services offered  at a much lower rate than the market . For instance, partnering with a payment gateway for online money transaction,accessing MIS software ,taking help from a recruitment consultant for getting employaable candidates are some of the value-added services offered by these B2B portals.
• Building Credibility and Bridge Trust Gap: In order to make a purchase decision by global buyers ,they need relevant,unbiased information about the business status of  the sellers. Most B2B portals have processes in place to check authentication and data validation of the supplier. They offer various credibility products by which suppliers can establish their credibility and win confidence of buyers  from across the globe. These products highlight suppliers legal, statutory and infrastructure capability information and add authenticity to their online profiles/websites.

b. Social Media Marketing

Free world-wide visibility through participation in online social media such as social networking sites ,blogs,online platforms for pictures ,video and presentation  sharing and free press release  distribution is becoming an increasingly effetive way to gain exposure for small business owners, who have neither the time nor resources to devote to an all out marketing campaign. It is a simple way to keep current and potential customers  informed of new developments and capabilities. It is worth mentioning that content shared through online social media also helps in search engine optimisation and provide it greater longevity. There are various ways for SMEs to promote themselves through online social media marketing.
Some are mentioned below:

• Professional and social networking: There are two ways of promotion on these platforms. One way is to book  space for advertisement on these sites,which is either free or involves a nominal charge. Another way is to create a profile about the SME that looks and behaves like user profiles to connect and engage with the prospective clients and business partners across  the world. SMEs can promote themselves by posting sales,discounts,or specials on their web profiles/pages. For instance sites such as “Facebook” and “Orkut” can be effectively used to converse and interact with existing and potential consumers and business partners to build mutual rapport and trust.  These sites are fantastic tools in giving brands a voice and a personality. To  achieve this, one needs to put forth a unique personalised style while interacting with potential customers. Some  of the sites offer free business listing for SME services. For instance,” ibibo city adds” is a case in point that enables small businesses to find and publish information or communicate with one another . Another option is to buy the premium ad space, which appear on the profile page of other users . SMEs can choose to either pay for clicks or pay for views. Here, the business groups can target their exact audience with demographic and psychographic filters.
• Blogs: Online writing though blogs can  be used to share thoghts, ideas and concepts. SMEs can take advantage of this online tool to share their knowledge and service offerings. Blogs are short bursts of information , and can include treasures that drive traffic to the main business website or attract prospective customers . Simple, pre-formatted blogs can be created for free through various websites . SMEs can include a link to the blog in every email sent to the company. SME s should aim to post regular updates on blogs related to product features , business perform,ances and new service offerings.
• Video sharing: Online platforms such as “You tube” , present a lot of possibilities for businesses looking to market themselves by expanding their web presence . A video about the product features or service offerings by an SME can be uploaded in such a website and the relevant link can be emailed to the potential clients to present expertise  or a video version of the capabilities brochure . SMEs can also ask their satisfied customers to sit in front the video camera and provide a reference   for future customers. Youtube makes it easy to upload videos to the web for easy sharing and even easier searching.
• Presentation sharing: There are websites such as ‘slideshare’ using  which presentations can be uploaded online for free and shared with clients or business partners . SMEs can upload presentations regarding company profile , capabilities and products. The best way to do this is to post a web-link of the presentation to the prospective clients.
• Picture sharing: Websites such as ‘picasa’ and ‘flickr’ ,can be used to upload and share pictures and images. These are efficient and secure ways of promoting businesses by SMEs by sharing pictures , banners and  images for various purposes such as upcoming events, product offerings, marketing brochures and sales offers.

c. Visibility through search engines

Having online presence through a website of its own is one of the basic requirements for an
organisation to appear in any online search result through online search engines such as “Google”or ”yahoo” . Many SMEs which do not have a website can take advantage of online website-building applications that can be used for making simple websites for free.

“Search engine optimization “ is a method by which SME s can optimize their websites so that they can be properly captured by online search engines when potential buyers , investors or partners search for enterprises producing a specific product or offering a specific service. This is a completely free service .

Besides, there are paid services where the enterprise can choose to appear in online search
results with certain taglines and pay on the basis of either the number of clicks on the ad which
leads to their sites or the number times the ad is displayed. For instance the global search engine giant, “Google” has a programme called “AdWords” through which text ads can be breated that can appear when certain keywords are searched by people online. In 2009, through a special offer to SMEs, Google Adwords platform to start advertising online with a budget as low as Rs200 a day and increase it as per their business demand.