This paper presents an empirical investigation to study the effects of different factors influencing on marketing in small and medium enterprises (SMEs) in city of Tehran, Iran. The study has been accomplished among 57 SMEs out of 70 active business units who were involved in hand made carpet. The survey uses a questionnaire originally developed by Merrilees et al. (2011) [Merrilees, B., Rundle-Thiele, S., & Lye, A. (2011). Marketing capabilities: Antecedents and implications for B2B SME performance. Industrial Marketing Management, 40(3), 368-375.] to determine the factors influencing on marketing SMEs. Using structural equation modeling, the results of survey indicate that market orientation, management capability, innovation capability and brand capability of SME & apos; s marketing performance influence on development of marketing, positively.