Optimization potential in SME marketing communication in a Czech-German comparison

Christian Enz

No 2022-03, Economics Working Papers from University of South Bohemia in Ceske Budejovice, Faculty of Economics

Abstract: Technological progress ensures a growing number of communication channels. National and international corporations use the new tools for intensive customer communication. SMEs therefore are in danger of disappearing from their consumers' field of vision. This paper examines the current communication behavior of SMEs. Future developments also are identified. The analysis of a large-scale survey of companies shows that the number of communication channels used depends on the size of a company. It is found that SMEs currently use fewer communication channels than large companies. Marketing communication is also much less professionalized in small companies. For example, this paper shows that only 25% of companies with an annual turnover of less than 2 million euros have their communication budgets. For SMEs with an annual turnover of 10 to 50 million euros, the share is already 58%. The importance of communication channels, on the other hand, depends on the regional context of the company's headquarters. Thus, the prioritization of certain communication channels is significantly dependent on the region in which a company is located. However, the research shows that SMEs across regions and size categories are aware of changes in the media use of their target groups. Nevertheless, many SMEs do not want to or cannot use all communication channels considered relevant in the future. This is equally evident among Czech and German SMEs, although German companies use more communication channels on average than Czech ones. This study also shows that SMEs are generally not willing to increase their marketing communication staff at present. This means that SME management faces the challenge of setting the correct priorities in customer communication. On the German side, the focus is on weighting. For Czech companies, the focus is on channel selection. This paper thus shows that there is potential for optimization for Czech and German SMEs. If it is possible to optimally reflect regional peculiarities in the use of media in the communication mix, efficiency increases and even the development of a competitive advantage over large companies is possible.

Keywords: SME; Sales; Integrated Communication; Communication Mix; Competitive Advantage; Regional Economic Area; Applied Economics (search for similar items in EconPapers)
JEL-codes: M21 M31 M37 (search for similar items in EconPapers)
Pages: 71 pages
Date: 2022-04-14, Revised 2022-04-14
New Economics Papers: this item is included in nep-sbm and nep-tra
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