Marketing Thinking On Solving The Capital Dilemma Of Small And Medium Sized Private Enterprises

Although China in August has already begun to fall, the summer in the meteorological sense is not far away. Especially in the process of the Olympic Games being raging in full swing, Chinese society has been advocating and pmitting the "Chinese fever" of the Olympic year's passion and confidence from the life of the ordinary people to the operation of the market economy.

However, almost at the same time, in the coastal areas such as Zhejiang, Jiangsu and Guangdong, which are well known for the well-developed private economy, more and more small and medium-sized private enterprises are encountering the "cold current" - from the tight chain of capital chain and even the test of breaking up.

Although CPI has been rising in recent two months, although the CPI has dropped in recent months, it is still at a high level, and the pmission effect of PPI rising has not yet appeared; the prices of production factors such as upstream energy and raw materials are also rising continuously; the price of labor force elements is also rising, especially the full implementation of the new labor law, which has greatly increased the burden on enterprises. The tightening of monetary tightening policy has increased the financing threshold and credit burden of SMEs. The international energy crisis, the US subprime crisis, the appreciation of the RMB against the US dollar have appreciated continuously, the exchange rate has increased by 15%, and the impact of the new international trade protectionism has been worsening the situation of the small and medium-sized private enterprises. Since 2008, China's economy has entered a new round of inflation cycle, PPI

According to the recent statistics released by the small and medium enterprises Division of the national development and Reform Commission, this year, quite a few SMEs are faced with difficulties in breaking up the capital chain. In the first half of this year, about 1/10 of the small and medium-sized enterprises in China increased by nearly 30%, representing a 15% decrease compared with the same period last year.

According to preliminary statistics, over 6.7 SMEs in the first half of this year collapsed.

As a labor-intensive industry, small and medium-sized enterprises in textile industry have closed down more than more than 10 thousand, and 2/3 textile enterprises are facing reorganization.

Despite the media's denial of the failure of small and medium-sized private enterprises in Wenzhou, Taizhou and other places, Zhejiang authorities denied that, but at the same time, the statistics of the Zhejiang economic and Trade Commission showed that between 1 and May this year, there were 1.07 loss Enterprises above Designated Size in the province, with a deficit of 19.6%.

Faced with this unprecedented situation, the policy wisdom of the authorities is facing unprecedented challenges.

Is the vast number of small and medium-sized private enterprises in hunger and cold, or in deep water, "saving themselves" or "saving them"?

The author believes that in a sense, the majority of small and medium-sized enterprises have constituted the "Fundamentals" of China's economy today. Especially when considering the overall situation of China's economic and social stability and harmony, we know that the livelihood problems of hundreds of millions of ordinary people are closely related to the private economy. This understanding can be generally recognized: in a word, the "salvation" of the capital chain of small and medium private enterprises is absolute.

However, we obviously can not rely entirely on the government to pay for the operational risks of the weak small and medium-sized private enterprises, and it is even impossible for banks and other financial industries to violate the rules in order to set up a "back door" for private enterprises.

But how can we save it?

The author's point of view is that the dilemma of private enterprises needs to go out step by step. We can not, and the market can not allow "return to the past", "wait, rely on and demand". This requires a combination of endogenous and external support. From the perspective of marketing, how to find a leveraged and pformed lever for our small and medium enterprises to fully integrate and revitalize all the resources that we have and can win, so as to maximize the convergence and realisation in the market arena, may be a clear path.

     一、產品營銷：以產品力向市場要銷量，以銷量帶動和充實資金流量 

Most of the small and medium-sized private enterprises are labor-intensive, manufacturing enterprises located at the end of the industrial chain and value chain. They are relatively short of technological advantages and brand advantages. The following, imitation or even plagiarism means are very common among enterprises. The phenomenon of product homogenization is very serious. The market competition has not broken through the traditional and single internal consumption means such as price war, promotion war and advertising war.

This makes such enterprises in the market competition on the one hand, the lack of product sales force; on the other hand, simple and extensive marketing means make their marginal cost continue to rise, and constantly dilute the only profit.

It is very obvious that in fact, these areas are industrial clusters rather than industrial clusters, because the large number of small and medium-sized enterprises' "gathering up children" effects, though they have made the relevant industrial norms as a whole, have led to the competitive advantages of some industries or categories in the number and scale of enterprises. However, under the market economic system, most of these enterprises are only a kind of inefficient cluster, and there is a lack of close co-existence mechanisms such as upstream and downstream matching. They even compete with each other. This phenomenon is in the so-called industrial clusters in Zhejiang, such as Wen and Taiwan.

The reform of banking industry has not really been on the track of marketization. Everyone strives to win bank credit through all kinds of relations. However, at this stage, on the one hand, the marketization and standardized operation of banks are very high. On the other hand, the government's macroeconomic regulation and control, especially the continuous implementation of the policy of tightening monetary policy, has raised the credit threshold of small and medium-sized private enterprises and increased the pressure of credit repayment.

The small and medium-sized private enterprises, which have been in the extensive growth period, are obviously unable to adapt to the coming of this situation. The capital chain suddenly tightens, and the production expenses, such as the procurement of raw materials, labor costs, and marketing expenses, have not been well protected. This not only makes the production of rice become a "rice without straw", but also leads to the market cash flow of the front end unsustainable.

In the Xiaoshan District of Hangzhou, an economically developed industry, it is reported that the net accounts receivable and finished goods inventories of Enterprises above Designated Size in the first quarter of this quarter grew by 3 to two yuan, which accounted for 43 billion 80 million yuan, an increase of 10 billion 280 million yuan over the same period last year, and the turnover of working capital for 8 days.

This phenomenon is no longer just existing in Xiaoshan. I believe that the reason why receivables can not be returned or not, whether the products are in serious stock or difficult to market, is a very important and even basic reason. The reason is that the product strength is not strong. This is reflected in two aspects: We are in communication with downstream customers such as canal merchants and so on. The weakness of the product strength makes it difficult for us to grasp the right to speak in business negotiations; on the other hand, the support of the marketing force that is not strong enough for effective sales is difficult to do, and inventory and backlog are unavoidable.

Therefore, the author suggests that the majority of small and medium-sized private enterprises take a look at their own product system, do subtraction in basic products, profit products, blocking products and image products and their specific categories, cut off products that can not be marketable, cut off products with no profit contribution, and cut off the products that can not run, so that the limited resources will be concentrated on products that can have certain profits and have a certain market share, so as to consolidate the static selling power of key products.

In this way, under the condition of insufficient fund support, we can sell products to the market through product strength, and drive cash flow through sales volume, so as to alleviate the impact brought by the tight chain of funds to the sustainable development of enterprises.

     二、品牌營銷：樹立信譽，追求品牌真諦 

The significance of brand marketing is almost a socialized problem in today's era.

But all along, our enterprises, especially many small and medium enterprises that are eager for quick success and instant benefit, are often unable to deal with the proposition of "brand" in a calm and rational way. They may have tasted too much of their brand in the market competition, or envy the sales performance and market level of those enterprises with well-known brands. Almost everyone has a brand plot in their hearts.

Brand goods are really hard to survive, so many small and medium-sized private enterprises, when the development strategy of their own enterprises is not clear enough, will take the brand strategy up to the top. Unfortunately, they are too superficial to understand the meaning of the brand, and brand marketing is equivalent to spending money on advertising. The advertising of the big media is "sing the king" is your voice, I am on the stage, today's celebrity endorsement, tomorrow's high-altitude bombing, a "cover" one, and even more sad is that many people have money to advertise, and no money to loan, they also want to advertise. They take it for granted that the advertisement has been hit, the brand has been sold, the sales volume has been, and the repayment of the loan is naturally an easy task. In addition, market competition, especially the wave of branding under consumer awareness, makes no brand or weak.

This has unwittingly pformed advertising and brand promotion into a game of "brave men". Fighting for advertising resources is like gambling. It is often a huge bet. It is more daring than anyone who dare to burn money.

As a result, in the process of rapid development of many small and medium-sized private enterprises, most of the enterprises that are interested in brand marketing are basically fattening the media, holding up the stars, squeezed their profits, and only get the so-called brand names with sales promotion.

Therefore, some people complain that they should not be branded and die.

The author believes that those who hold such views obviously go to two extremes. One fundamental problem is that they all have brand marketing ideas that equate brand names with advertisements and at the expense of burning money.

If this is the case, how can the small and medium-sized private enterprises in the capital chain break pass to make the brand again?

Without the support of the brand, how can we cash in to ease the pressure on our capital?

In fact, brand is a marketing concept in essence, not a concept of communication. Its true meaning is the name or symbol that can be printed on behalf of a specific product in the mind of consumers. It is an extension and deduction. The author believes that a real brand must be a brand that can guide or even buy and choose consumers.

Therefore, the focus of brand marketing should actually fall on "marketing" (which is different from professional marketing definition or operation). So, we can not put all the resources of brand marketing in the "advertising" basket. Especially in the tight financial situation, we should actually focus on the limited resources used for advertising to be used for brand marketing: from a narrow sense, we still operate the product brand, but can we temporarily fall from the high altitude and turn from the online to offline?

Can we pform the "dissemination value" of money burning to the "service value" of consumers?

Can we integrate product lines or even external resources to meet the diverse needs of consumers at the level of product consumption?

From a broad perspective, can we apply Limited advertising funds to brand building?

In this particular period of time when we are in a difficult position, especially when cash is tight, can we dare to use limited funds for the development of public welfare and enhance our corporate image and communication by means of public service marketing?

In the background of the fact that most enterprises are in arrears with business integrity, can we stick to commercial integrity even if we break the advertising budget, so as to maintain the credibility of the market?

And so on, we can "marketing" too many points, the key is whether we are willing.

The author believes that brand marketing is actually a process of dropping water and stone. There is a bit of accumulation in the process of brand to consumer, brand to partners and brand to public opinion. The probability of "Zhongnan shortcut" to be used to express the brand quickly is often too low. Moreover, advertising itself can not breed the market credibility and brand integrity of enterprises. I sincerely hope that the majority of private enterprises can withstand pressure and go down-to-earth.