Every business wither it's small or big, aim to meet the needs of their actual and potential customers. In order for them to do this, they need to follow some sort of theory and concept. This assignment will be looking at the marketing theory and marketing concepts which are portrayed in the traditional marketing literature, and how they have limited application in guiding small business marketing practice.
Marketing plays a vital role not only in developing, producing, and selling products or services, but also in guiding recruiting labors and raising capital. Although it can be said that successful entrepreneurs undertake marketing in unusual ways. They mainly rely on interactive marketing methods, which is often communicated through word-of-mouth rather than a more traditional marketing mix. Entrepreneurs monitor the marketplace through informal networks rather than formalised market research, and generally adopt more entrepreneurial approaches to marketing activities. However, depending on the business model, a complex and formalised initial market research can be crucial for a successful market entry.
There are many marketing theories that are used in traditional marketing literature such as Schumpeter (1934) who said that entrepreneurs proactively 'created' opportunity, using 'innovative combinations' which often included 'creative destruction' of passive or lethargic economic markets .
According to Schumpeter the role of an entrepreneur is to innovate, and by doing this, you move the economy from one equilibrium to another. This kind of innovation could come about from one or more introduction of a new product; a new method of production; the development of a new market; the use of new sources of raw material, and the reorganisation of a new industry or its processes. He also distinguished between the entrepreneur and the capitalist. Schumpeter agreed with the fact, that in practice an innovator could also actually be a capitalist.