Small and medium enterprises (SMEs) have distinctive characteristics that differentiate them from their larger counterparts. One of these characteristics is marketing; Poor marketing skills in SMEs would lead to low performance and, in extreme cases, failure. Therefore, adopting a marketing strategy based on small business analysis is a fundamental requirement of any successful SME. The term “entrepreneurial marketing” is used to describe the marketing activities conducted by SMEs. The present paper aims to identify the entrepreneurial marketing characteristics of information technology SMEs, based on the classic grounded theory. To achieve this, the sample was selected and deep interviews conducted. The basic model was developed using interviews, findings and analyses. As the secondary objective of the research, interviews with ten SME owner-managers of Denmark, a developed country, was compared with that of the Iranian ICT industry. Based on Glaser's approach (1995a,b), the results and analyses were used to develop an entrepreneurial marketing theory for the information technology industry. Finally, the components of the entrepreneurial marketing model are described.
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