Marketing decision-making in Hungarian SMEs

Abstract

Purpose Small and medium-sized enterprises (SMEs) play an important role in the economy, in both national and international markets. These organizations work under diff erent conditions, possess diff erent capabilities, and therefore have a diff erent approach to certain company functions (e.g., marketing). SMEs defi ne their marketing activity within a scope that diff ers from their large counterparts. Our aim is to provide a better understanding of certain infl uencing factors that are the antecedents to the understanding of an SME’s marketing activities. Design/Methodology/Approach Since relatively little has been written on these eff ects, we decided to use a qualitative approach because of both the sample (SMEs) and the research problem. The SME marketing activity was analyzed from an exploratory perspective, with the research conducted in the form of in-depth interviews in 15 SMEs. We had the opportunity to analyze our research questions in a Hungarian context. Findings and implications As a result, some infl uencing patterns emerged, such as the deciding role of the SME leader, strong customer focus, the ability to adapt to the market, and innovative, entrepreneurial characteristics. The results can help both theoretical researchers of SME marketing and SME marketing practitioners. Limitations The limitations of this paper lie in the sample size and structure, and in the limitations of qualitative methodology. Originality Despite limitations, the infl uencing factors that emerged have not been analyzed in prior empirical studies in terms of SMEs’ decision-making factors in the context of online marketing and use of social media tools. By answering our research questions, we can provide a better explanation of how marketing decisions are made by SMEs.