Marketing Institutions and Assistance

Marketing is about-

Product Mix: Service, Brand, Package, Design, Warranty etc.

Price Mix: Price policy, Terms of credit, Discount etc.

Promotion Mix: Personal Selling, Advertisement, Publicity, Sales

Promotion etc.

Place Mix: Distribution channels: Wholesaler, retailers, agents,

transport, inventory, warehousing.

The success of marketing depends on well- established institutional set

up and financial, technical and organisation assistance in time.

NSIC (National Small Industries Corporation):

The National Small Industries Corporation Ltd. (NSIC) was set-up by the Government of India in 1955 with the objective of promoting and developing small scale industries in the country.

FUNCTIONS:

Supply and distribution of indigenous and improved raw materials. Supply of both indigenous and imported machine on easy hire-purchase terms. Marketing of Small Industries products within the country. Export of Small Industries products and developing export. Developing prototypes of machines, equipment and tools which are then passed on to Small-Scale Units for commercial production. Technical training in several industrial trades Development and up-gradation of technology and implementation of modernization programmes. Providing of Common Facilities through Prototype Development & Training Centres. Setting-up Small Scale Industries in other developing countries on turnkey basis. acilities are available to the Small-scale unites registered with NSIC under the Single Point Registration Scheme under the Government Store Purchase Programme.

State Financial Corporation (SFC):

State Financial Corporation (SFCs), operating at the State-level, function with the objective of financing and promoting small and medium enterprises for achieving balanced regional socio-economic growth, generating greater employment opportunities. At present, there are 18 SFCS in the country.

Functions

• To provide terms loans for the acquisition of land, building, plant and machinery, pre-ops and other assets.
• To promote self-employment.
• To promote industry by the rural and urban artisans.
• To encourage new and technically/professionally qualified women entrepreneurs in setting up industrial project.
• To finance expansion, modernisation and upgradation of technology in the existing units.
• To provide financial assistance for transport vehicles strictly for captive use, depending on the requirement of the projects.
• To provide Interest subsidy for self-employment of young persons, adoption of indigenous technology in small and medium sector.

State Industries Development Corporations (IDC)

The State Industries Development Corporations (SIDCs) were established

under the Company Act, 1956 in the sixties and early seventies as wholly owned State Government undertaking for promotion and development of medium and large industries. SIDCs act as catalysts for industrial development and provide impetus to further investment in their respective states; The SIDCs are agent of IDBI and SIDBI for operating its seed capital scheme.

Functions:

• Grant of financial assistance to industrial units by way of loans, and guarantees.
• Providing risk capital to entrepreneurs by way of equity participation and seed capital assistance.
• Administering incentive schemes of Central/State Governments;

Technical Consultancy Organisations (TCO):

Objective:

• Carrying out industrial potential surveys, identification of project ideas, project formulation;
• Evaluation of projects referred to them;
• Preparation of project profiles, feasibility studies;
• Preparation of project reports and where called upon, to render turn-key services in project implementation;
• Conduct Entrepreneurship Development Programmes, entrepreneurship awareness camps, SEEUY training programmes;
• Identifying the potential entrepreneurs and providing them with technical and management assistance.
• Undertaking market research and surveys, for specific products;
• Undertaking energy audit and energy conservation assistants;
• Project supervision;
• Undertaking export consultancy and export oriented projects based on modern technology.

National Institution of Design (NID,1970) along with Indian Institution Technology, Mumbai Industrial Design Centre developed courses for industrial design to serve the needs of industries. The candidates selected from backgrounds in engineering, architecture and applied art have become new cadre of fully trained Indian designers. Programme on khadi, Garment Design, cane, bamboo, leather, glass bell metal and wider range of plastics have reduced cost, saved on materials and increased productivity of enterprises.

Science and Technology Entrepreneurship Park (STEP)

Function:

• Conducts entrepreneurship Development programme (EDP).
• Sets up institute- Industry linkage scale.
• Sets up database and information Canter for needs of particular Industry or a cluster of units nearby.
• Provides infrastructure including Central work shop and nursery sheds e.g. Tiruchilapali NIT supported STEP.
• Develops Special process, computer added designs e.g. Harcoat
• Butler Technological institute, Kanpur developing fibre reinforced spun pipes made out cement

Marketing assistance scheme

Marketing, a strategic tool for business development, is critical for the growth and survival of micro, small & medium enterprises. Marketing is the most important factor for the success of any enterprise. Large enterprises have enough resources at their command to hire manpower to take care of marketing of their products and services. MSME sector does not have these resources at their command and thus needs institutional support for providing these inputs in the area of marketing. Ministry of Micro, Small & Medium Enterprises, inter-alia, through National Small Industries Corporation (NSIC), a Public Sector Enterprise of the Ministry, has been providing marketing support to Micro & Small Enterprises (MSEs) under Marketing Assistance Scheme. Emergence of a large and diverse services sector in the past years had created a situation in which it was no longer enough to address the concerns of the small scale industries (SSI) alone but essential to include the entire gamut of enterprises, covering both SSI Sector and related service entities, in a seamless web. There was a need to provide space for the small enterprises to grow into medium scale enterprises, for that is how they will be able to adopt better and higher levels of technology and remain competitive in a fast globalizing world. Thus, as in most developed and developing countries, it was necessary that in India too, the concerns of the entire range of enterprises – micro, small and medium, were

addressed and the sector was provided with a single legal framework. The Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 addresses these issues and also other issues relating to credit, marketing, technology upgradation etc concerning the micro, small and medium enterprises. The enactment of MSMED Act 2006, w.e.f. from 2nd October, 2006 has brought medium scale industries and service-related enterprises also under the purview of the Ministry, accordingly the name of Ministry has also been changed.

The need of the hour presently is to provide sustenance and support to the whole MSME sector (including service sector), with special emphasis on rural and micro enterprises, through suitable measures to strengthen them for converting the challenges into opportunities and scaling new heights. Thus, although the medium

enterprises are also proposed to be included as the target beneficiaries in the scheme, special attention would be given to marketing of products and services of micro and small enterprises, in rural as well as urban areas.

Objectives:

The broad objectives of the scheme, inter-alia, include:

• To enhance marketing capabilities & competitiveness of the MSMEs.
• To showcase the competencies of MSMEs.
• To update MSMEs about the prevalent market scenario and its impact on their activities.
• To facilitate the formation of consortia of MSMEs for marketing of their products and services.
• To provide platform to MSMEs for interaction with large institutional buyers.
• To disseminate/ propagate various programmes of the Government.
• To enrich the marketing skills of the micro, small & medium entrepreneurs.

Marketing support to MSMES

Under the Scheme, it is proposed to provide marketing support to Micro, Small &

Medium Enterprises through National Small Industries Corporation (NSIC) and enhance competitiveness and marketability of their products, through following activities:

Organizing International Technology Exhibitions in Foreign Countries by NSIC and participation in International Exhibitions/Trade Fairs:

International Technology Expositions / exhibitions may be organized by NSIC with a view to providing broader exposure to Indian micro, small & medium enterprises to facilitate them in exploring new business opportunities in emerging and developing markets. These exhibitions may be organised in consultation with the concerned stakeholders and industry associations etc. The calendar for these events may be finalised well in advance and publicised widely amongst all participants/stakeholders. The calendar of events would also be displayed on the Web-site of NSIC. Such expositions showcase the diverse technologies, products and services produced/rendered by Indian MSMEs and provide them with excellent business opportunities, besides promoting trade, establishing joint ventures, technology transfers, marketing arrangements and image building of Indian MSMEs in foreign countries. In addition to the organisation of the international exhibitions, NSIC would also facilitate participation of Indian MSMEs in the select international exhibitions and trade fairs. Participation in such events exposes MSMEs to international practices and enhances their business prowess. These events provide a platform to MSMEs where they meet, discuss, and conclude agreements on technical and business collaborations.