Marketing Decision-Making in Hungarian SMEs

Purpose – Small and medium-sized enterprises (SMEs) play an important role in the economy, in both national and international markets. These organizations work under different conditions, possess different capabilities, and therefore have a different approach to certain company functions (e.g., marketing). SMEs define their marketing activity within a scope that differs from their large counterparts. Our aim is to provide a better understanding of certain influencing factors that are the antecedents to the understanding of an SME’s marketing activities. Design/Methodology/Approach – Since relatively little has been written on these effects, we decided to use a qualitative approach because of both the sample (SMEs) and the research problem. The SME marketing activity was analyzed from an exploratory perspective, with the research conducted in the form of in-depth interviews in 15 SMEs. We had the opportunity to analyze our research questions in a Hungarian context. Findings and implications – As a result, some influencing patterns emerged, such as the deciding role of the SME leader, strong customer focus, the ability to adapt to the market, and innovative, entrepreneurial characteristics. The results can help both theoretical researchers of SME marketing and SME marketing practitioners. Limitations – The limitations of this paper lie in the sample size and structure, and in the limitations of qualitative methodology. Originality – Despite limitations, the influencing factors that emerged have not been analyzed in prior empirical studies in terms of SMEs’ decision-making factors in the context of online marketing and use of social media tools. By answering our research questions, we can provide a better explanation of how marketing decisions are made by SMEs.