Pricing and Distribution Decisions in a Context of Low Distribution Capacity

Luca Cacciolatti and Soo Hee Lee
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Luca Cacciolatti: University of Westminster
Soo Hee Lee: University of Kent

Chapter 9 in Entrepreneurial Marketing for SMEs, 2015, pp 150-156 from Palgrave Macmillan

Abstract: Abstract SMEs often have to deal with the problems related to low profitability and low liquidity. Low profitability might also be affected by slow business growth and gives an indication of the lack of efficiency within an SME, whereas lack of business growth might indicate difficulties in the existing market, other than with the firm itself. Low market growth and low profitability cause problems in terms of liquidity, because undercapitalised SMEs do not have the necessary working capital-i.e., the capital used to cover liabilities with current assets — and therefore are subject to debt when assets cannot be turned quickly into cash.

Keywords: Price Strategy; Distribution Strategy; Target Market; White Bread; Target Segment (search for similar items in EconPapers)
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-137-53258-9_9

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DOI: 10.1057/9781137532589_9

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