THE MARKETING MANAGEMENT OF SMALL AND MEDIUM HANDLOOM-WEAVING ENTERPRISES IN REGION 1 Rosario C. Garcia, DBA Small and medium enterprises contribute substantially to the economic growth of a developing country in terms of job creation, capital mobilization and increased revenues in the form of taxes. Salazar (1997) contended that small and medium enterprises (SMEs) play a critical role in the achievement of global competitiveness since it comprised 95% of the total number of business establishments in the Philippine economy. According to Satake (1998), they employ more than 40% of the labor force in the manufacturing sector alone. Further, Ibon Facts & Figures (October 1999) report that SMEs are remarkably skillful in maximizing the use of scarce capital resources and are able to forge partnerships with large firms by way of supplying indigenous raw materials in unprocessed or semi-processed forms. Handloom weaving is an industry that is mostly operated by small and medium entrepreneurs. However, despite the efforts of agencies providing support to SMEs, the handloom-weaving industry in Region 1 has not taken off compared to other existing industries such as the furniture, pottery, handicraft, preserved foods, and the like. Other industries have set foot on global The one in the Cordillera marketing unlike handloom-weaving industry.
Autonomous Region particularly by Narda Capuyan has earned international appeal due to product innovation. market segmentation, and channel of distribution. In Region 1, global marketing is indirect exportation, which is not aggressive. A study, therefore, is necessary to determine the reasons for a passive view on exportation. With the onset of mechanization of production, the influx of imported products, and stiff competition, the marketing of handloom woven products in the local sector is being affected. The marketing management of selected small and medium handloom-weaving enterprises needs assessment to reveal how marketing strategies influence sales, uncovers marketing related problems, and recommends appropriate solutions. The characteristics of the product offerings, pricing structures, distribution systems and promotional activities are
to be unfolded to reveal marketing difficulties requiring in depth evaluation. Thus this study is undertaken. The Problem The study aimed to assess the effectiveness of the marketing management of the small and medium handloom-weaving enterprises in Region 1 to serve as a premise for a proposed marketing system that could enhance the marketing operations. Seven main topics were covered, namely: marketingrelated profile; marketing assistance from various sources; the marketing mix comprised of product offerings, pricing structure, place of distribution and promotional activities; integrated mix relating sales with production and promotion; distribution problems and solutions applied; and the proposed marketing system. The paradigm is presented in Figure 1. Independent Variables Dependent Variables
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Product Line depth and width Product design Product strategies Distribution Sub-Mix o Sales Outlets o Distribution Cost o Distribution Strategies
Pricing Methods Pricing Strategies
Marketing Effectiveness Indicators Sales Proficiency Competitiveness in the domestic and foreign markets Marketing-related problems encountered and solutions applied
Promotion Sub-Mix o Promotional Tools o Promotion Cost o Promotion strategies
Sales in Relation to Production, Distribution and Promotion Internal Aspect Marketing-Related Profile Capital Structure Years in Operation Product Line Prices of Products Existing Markets Exportation Activity Terms of Sales Amount of Sales Volume of Production Period of Production
♦Creditors ♦Private sector and NonGovernment Organizations
Proposed Marketing System for Enhanced...
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