Prof Ma’mun Sarma: Entrepreneurial Marketing is More Appropriate for MSMEs
According to Prof Ma’mun Sarma, Professor of IPB University from the Faculty of Economics and Management, the concept of marketing mix that has been around is in fact only able to be done by large companies. The concept is less relevant to micro, small and medium enterprises (MSMEs).
“Limited capital is the main problem faced by MSME players in implementing the conventional marketing mix concept. A marketing concept that is more in line with the characteristics of MSMEs is needed. One approach that is currently emerging is entrepreneurial marketing,” he said during the Press Conference of Pre Scientific Oration of Professor of IPB University, Wednesday (27/7).
Prof Ma’mun explained, entrepreneurial marketing is a relatively new marketing concept approach that is more suitable in terms of limited resources and problems that exist in MSMEs. This is because the concept of conventional marketing mix requires high costs, especially promotional activities and sales advertisements, so it cannot be applied directly by MSME players without adaptation.
“From the results of our research, the application of entrepreneurial marketing has generally shown a fairly good ability. Thus, it is hoped that in the future MSME industry players in Indonesia can have better welfare, be able to compete locally and globally, maintain and increase their existence in various markets,” he said.
Prof Ma’mun’s research was conducted on a number of MSMEs in various regions such as the footwear industry in Bogor; culinary, food and beverage and furniture industries in Depok, Bogor City and Bogor Regency; home industries in Kendal Regency; fruit processing industry clusters and milk processing industry clusters in Bandung Regency, and fish processing industry clusters in Pekalongan Regency.
In addition, based on data from the Ministry of Cooperatives and SMEs, in 2019 there were 65 million business units in Indonesia. Of this figure, the percentage of MSMEs reached 99.99 percent, of which 98.67 percent were micro businesses, 1.22 percent were small businesses, and 0.10 percent were medium-sized businesses. Large companies only have 0.01 percent of business units.
Prof Ma’mun further explained that conceptually, conventional marketing is consumer-oriented, while entrepreneurial marketing is innovation-oriented. In terms of strategy, the conventional marketing approach is top down, while the entrepreneurial marketing approach is bottom up.
“Entrepreneurial marketing uses interactive marketing methods. And in terms of market intelligence, conventional marketing uses formal research, while entrepreneurial marketing uses informal networks and information gathering,” he explained. (*/Rz) (IAAS/NVA)
