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MSME MST (Topic 3: Marketing Strategies for Growing Businesses (Marketing…
MSME MST
Topic 3: Marketing Strategies for Growing Businesses
Build Competitive Edge
Value proposition
Accessible, Approachable, Specialised (Niche), Speedy
Leverage on IT
Company Image and Branding
SMEs need to brand themselves effectively to differentiate their brands from others in the global market
Leads to higher level of customer loyalty
Marketing Approach for SMEs
Total Product Offering (Product)
Differentiate your product
Be consistent in your product & service quality
Setting the Right Price (Price)
Non-price competition (focus on factors other than price)
Monitor market, use competitors' prices as benchmarks
Reaching Your Customer (Place)
Strategise choice of location
Think of providing convenience to customers
Communicate Your Idea (Promotion)
Set aside a reasonable promotion budget
Have a clear and specific objective for each promotion acitvity
Guerilla Marketing Approach
Objective: Go Viral
Unconventional, low cost
Focus on customers
Create a buzz with minimal cost
Networking for Success
Attend relevant seminars, workshops
Participate in trade mission overseas trips to explore overseas market
Join professional associations to network with people from same and different industries
Meeting Customers Needs
Perform detailed study on customers
Create added value
Perform market research
Reduce business risks
Identify sales opportunities
Spot current/upcoming trends
Eliminates guesswork
Market Segmentation
Psychographic
Behavioural
Demographic
Geographic
Topic 6: ICT in SMEs
Business Value of Having ICT
Cost Reduction
Strategic Planning
Data Analytics – business decisions based on information rather than intuition
Business Growth
Tap on New Opportunities
Improve Productivity
Types of ICTs for use in
Business Operations
Enterprise Planning Systems
Cloud/Servers - All systems store info in a common storage
Offers better insight
Collaboration is Easy
Support a variety of business needs
Allows for rapid development
Proven results
Customer Relationship Management
Emerging Solutions
Automation
Autonomous Robots
Business Analytics
AI
Digital Payment Solutions
Enterprise Resource Planning
address the resources that are available or not available to an enterprise and its ability to produce products or resources
Topic 1: Overview of the Development SMEs
in Singapore
Role of SMEs
nurturing a culture of entrepreneurship
Singapore can no longer depend on FDI
Need more entrepreneurs to create jobs, improve economy of the country
fostering creativity
Foreign investors have many choices of other countries that offer attractive incentives to invest in
Innovation can create high value jobs, and population can grow into a high skilled group locally
enhancing quality of human resources
improved skills of the workforce grows the country (eg. economic growth, social development)
opening new business opportunities
Global Presence
Bring revenue to Singapore's exports, Singapore's economy
provide job opportunities
65% of the entire Singapore workforce work in SMEs
Topic 2: Growth Factor Analysis
Factors Affecting Internationalisation of SMEs
Social-cultural Factors and Intentions
social status of entrepreneurs (people look up to business owners)
starting a new business brings prestige and respect
shame of failure holds back SME owners
Globalisation and Competition
FTAs between countries opens up business opportunities for SMEs that plan to venture overseas
High accessibility of information through the internet
Risk of changing foreign country regulations
Unclear Regulation
Singapore has been so structured that we forget how to operate in a unstructured environment
Tendency to internationalise in familiar countries
Surrounding countries lack proper business rules and regulations
Manpower, Skills and Motivation
High employee turnover; no sufficiently skilled workers for overseas expansion
Highly-skilled talents are too expensive for SMEs to hire
Singaporeans expect to be paid more when working overseas (deemed as a hardship)
Market Access
SMEs have limited access to information on new/overseas markets
Countries attractive for expansion have limited validated information
Lack of knowledge and data, hence need local partners for joint ventures
Insufficient networking - SMES do not have contacts or connections as they have been focusing on local markets only
Compliance Issues
Products/services that comply to Singapore standards are not recognized in many countries
Eg. Tax Compliance, Accounts Reporting, Hiring
Bureaucracy
Singapore is No. 1 ranking in Asia for Bureaucracy
Access to Financing
Liberalisation of financial sector - easier for SMEs to take loans from banks
Establishments of banks and FIs to focus specifically on needs of SMEs
Political Stability
All ASEAN countries (except SG and Brunei) have encountered at least one political upheaval in the last 10 years
Brand Acceptance
Makes or breaks any business
Singapore brands have been reliant on loyal customers
Topic 5: Operations Management
Productivity Concepts
Quality & Growth
Quality can be used as a competitive tool
Total Quality Management
Customer Driven
All-encompassing management approach to providing high quality products and services
Organisational Commitment
7Ws and 5Ss
Value Add & Growth
A value addition can either increase the product's price or value.
Products - bundling, education Services - expert advice, speed of services
Total Product Concept
Core Product (eg. burger)
The Actual Product (Eg. McDonalds Packaging, Brand Name)
The Total Product (eg. Warranty, after-sales service)
Net Promoter Score
Productivity & Growth
Porter's Value Chain Analysis
Primary Activities
Inbound Logistics (Supplier)
Operations/Product Creation
Outbound Logistics (Customers)
Marketing & Sales
Service & Aftercare
Support Activities
Firm Infrastructure
HRM
Technology, R&D
Procurement: Purchasing, Outsourcing
Increase productivity through enhancing policy, procedures and control methodology of resources
Includes both resource management and allocation
Goes hand-in-hand
Productivity Tools
5S
Set in Order
Ensure that things are categorised neatly, especially tools and information that needs to be frequently used
Minimise movement to reach frequently used items
Shine
Keep workplaces clean, tidy and organised
Sort
Housekeep and prioritise what's necessary
Standardize
adopt a similar modular approach to offices or counters or interfaces
Prepare standard operating procedures
Prepare a duty chart and define responsibilities for every employee
Sustain
Constantly maintain and review these standards
Practice of 7 Wastes (TIMWOOD)
Transportation
refers to movement of finished goods outside the warehouse
Movement to warehouse for storage/ to customers
Inventory
Costs of storage space
Motion
movement of materials, supplies and equipment
materials/human motion
Waiting
Idle time in which someone who could be doing something is doing nothing
Overprocessing
More work is being put into a product or service than is needed by the final customer
Overproduction
Making more of product than what is actually needed
Rework
Defective products must be thrown out or fixed
Doing things right the first time is essential to eliminating waste
Can be overly expensive to achieve zero defects
Net Promoter Score
Quality of customer experiences
acts as a leading indicator of growth; If your organization’s NPS is higher than those of your competitors, you will likely outperform them.
Value Chain Analysis
Refer to "Productivity and Growth"
Topic 4: Managing Funds and Sources of Finance