The marketing capability of a firm denotes several aspects in relation to arranging complex combination of human resources or assets, market assets and organization assets. These three assets help in deciding the actual capability of the organization. Along with these assets it is equally important to understand the scope of firm capabilities with respect to the four P’s of marketing. The purpose of the study was to find out the role of marketing practices in small and medium industries in some selected cities of Madhya Pradesh state. To analyze the facts the present study is designed to understand the scope of marketing practices followed in smaller and medium industries of M.P. The main aim of the study is to examine the approach and growth perspective of small and medium scale industrial units towards marketing function and its problems.