Chapter theoritical foundation marketing Definition Marketing

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2.1 Marketing

2.1.1 Definition Marketing

According to Kotler Keller (2013:27) “Marketing is about identifying and meeting human and social needs. One of the shortest good definitions of marketing is “Meeting needs profitably”.”

Furthermore Kotler Armstrong also mentioned (2012:29) “Marketing as the process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return”.

From the two definitions of marketing above, it can be concluded fundamentally that marketing is a process to identify and meet the needs and wants of customers, providing value in order to satisfy and retain strong relationships with customers and their trust in return.

2.1.2 Marketing Concept

Marketing concept is define as “The Marketing concept holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do” (Kotler Armstrong, 2012: 34).

In Kotler Keller (2013:40) point of view marketing concept is “the marketing concept holds that the key to achieving organizational goals is being more effective than competitors in creating, delivering, and communicating superior customer value to your target markets”.

Based on these definitions author conclude that marketing concept is the key to achieve the organization goals by being better than competitor in first knowing what target market’s needs and wants and then developing, delivering, communicating customer value to the customers.

2.1.3 Marketing Mix

According to Kotler Armstrong’s (2012: 75) definition of marketing mix is “The marketing mix is the set of tactical marketing tools that the firm blends to produce the response it wants in the target market.”

According to McCarthy in the book that is edited by Kotler Keller (2013:47) said, “McCarthy classified various marketing activities into marketing-mix tools of four broad kinds, which he called the four Ps of marketing: product, price, place, and promotion”.

But according to Lovelock Wirtz (2011:44) marketing mix have extended adding three Ps that is connected with service deliver and they are; process, physical environment and people. He described “ Collectively, these seven elements- the “7Ps” of service marketing- represent the ingredients required to create viable strategies for meeting customer needs profitably in a competitive marketplace.”

Kotler Armstrong (2012:75) here describes these 4Ps:

  1. Product

Product is the combination goods and service (variety, quality, designs, features, brand name, packaging and service) that company provides and offers to the target market.

  1. Price

Price is number of the amount of money that is set by the company and customers must pay that amount of money to able to own the product.

  1. Place

Place also known as destination is where company do their activities and also to have it available to target consumers.

  1. Promotion

Promotion is activities that communicate about the product goods and service and to convince customers to buy it.

Lovelock Wirtz (2011:47) has describes these extra 3Ps for service marketing:

  1. Process

Process is delivering product that need well design sequence of effective procedure to target customers.

  1. Physical environment

Physical environment also known as service-scape, which involve tangible evidence design such as buildings, landscaping, interior furnishing, equipment, staff members, and uniforms. These will impact on customer satisfaction and service productivity.

  1. People

People are the ones who have direct interaction between servicers and customers. They require interpersonal skills and positive attitude to work well individually or as teamwork to bring out the best for customers.

Therefore author conclude that Lombok Merah uses service marketing mix 7Ps as a marketing tool that serve product as well as service to meet customer wants and needs profitably in a competitive marketplace.

2.2 Promotion

2.2.1 Definition of promotion

Promotion is one of the 7Ps in service marketing mix. Kotler Armstrong (2013: 76) defines the promotion as “Promotion means activities that communicate the merits of the product and persuade target customers to buy it”.

Whereas Belch Belch (2009: 18) defines promotion as “Promotion has been defined as the coordination of all seller initiated efforts to set up channels of information and persuasion in order to sell goods and services or promote an idea.”

From this definition author conclude that promotion is one of the elements in marketing mix that uses communication or promotion mix to promote ideas and to sell by persuade the target market about the product value from the company and to create exchange through marketing.

2.2.2 Promotion mix

According to Kotler Armstrong (2012: 432) promotion mix is “Promotion mix-also called its marketing communication mix- consists of specific blend of advertising, public relations, personal selling, sales promotion, and direct marketing tools that the company uses to persuasively communicate customer value and build customer relationship.”

And according to Kotler Keller (2013: 498) marketing communication is define, as “Marketing communications are the means by which firms attempt to inform, persuade, and remind consumers-direct or indirectly- about the products and brands they sell.”

From the definitions above, author can conclude that marketing communication mix or promotion mix is combination of different variable of elements to communicate with their target markets about the company’s product and also to develop customer relationships. Every elements of promotion mix plays a distinctive role, these 5 major promotion mix are define as follows:

  1. Advertising

Advertising is a non-personal interaction and a paid form of promotion of ideas by an identified sponsor such as print media, internet, and broadcast.

  1. Sales promotion

It is used for short-term motive aim in a company to aim the target customers to purchase, trial or service such as consumer promotion like coupons, discounts, and demonstration.

  1. Personal selling

Personal selling is presented by the firm’s sale force, a face-to-face interaction with prospect customers to aim to increase sales and develop customer relationships. Such as sales presentation, answering questions and making orders.

  1. Public relations

A public relation is also known as publicity, it is to build a good reputation image, able to handle and manage off any negative news. Such as press release, special events and sponsorship.

  1. Direct marketing

Direct marketing is using devices that directly communicate with customers for their direct response, dialogue from particular customers and prospects or enrich lasting customer relationships. Such as telephone marketing, and catalogs.
2.3 Personal Selling

2.3.1 Definition of Personal Selling

Personal selling is one factor of the success of a marketing program. Personal selling is basically does activities that intended to build up target market’s preferences, persuasion of product or service and to build customer relationship. Below are some terms personal selling according to the experts:

According to Kotler Armstrong (2012: 448) personal selling is “ It involves personal interaction between two or more people, so each person can observe the other’s need and characteristics and make quick adjustment.”

According to Belch belch (2009: 25) personal selling is “A form of person-to-person communication in which a seller attempts to assist and/or persuade prospective buyers to purchase the company’s product or service or to act on an idea.” He also mention that the interaction can be flexible, meaning the salespeople sees the customer’s reactions and able to modify the message specific for their need or situation.

From the definitions author quoted above, it can be concluded that personal selling involves direct contact between buyers and salespeople in the process of identify buyer’s need and assisting and/or persuasion to purchase the company good and service. The direct contact is personal and flexible able to modify depending on the reaction from different types of customers.

A journal written by Neville Stein, Horticulture Week (June 8 2012):24 Marketing Communication, he stated “The purpose, simple, is to identify your customer’s needs and to show them how those can be met with your product or service.” He also mentioned that he believes personal selling will be the strategic for a modern business because human natures like the personal touch.

2.3.2 Types of Personal Selling

According to Belch Belch (2009: 598) personal selling consist of three types that are; order taking, creative selling, and missionary sales reps.

  1. Order taking

It is often classified as inside order takers, where salesperson works inside the office and receive orders by phone, mail, or the Internet. In other words their responsible is to get orders by customers.

  1. Creative selling

Creative selling also knowns as order getter. Salesperson having direct contacts in indentify prospects, assess the situation, determine the needs to be met, present the capabilities for satisfying these needs and get an order.

  1. Missionary sales reps

It is a support role where they introduce new products, new promotions, and/or new programs. They may have additional account service responsibilities including customer relationship management.

It is conclude in this research author will be focusing Lombok Merah in the creative selling type where it invloves salesperson as the “point person” that represent on behalf of the company primarily responsible for completing the exchange between seller and buyer.

A journal of Emerging Trend in Economics and Management Sciences 3(2) (2012)- The Role of Personal Selling in Enhancing Client Satisfaction in Nigerian Insurance Market has mentioned the types of personal selling that includes; Trade Selling, Missionaryy Selling, Technical Selling also referred to as creative selling, and New Business Selling.
2.3.3 Aim of Personal Selling

According to Belch Belch (2009: 597) personal selling has responsibilities of job requirements. Here are the following:

  1. Locating prospective customers

This involves salespeople searching for qualified prospective customers. Whether its leads (who may become customers) or prospects (who need the product or service).

  1. Determining customers’ needs and wants.

This involves salespeople gather information about what prospect wants and needs, enable to decide the best way to approach in order to certain the prospect capable of making purchase decision. Some cases, salesperson needs to assist the prospect to determine what they need.

  1. Recommending a way to satisfy the customers’ needs and wants.

This involves salespeople providing information, recommendation, or alternative possible solutions that match with prospect’s wants and needs.

  1. Demonstrating the capabilities of the firm and its products.

This involves salesperson demonstrating/show the prospect why they should choose this product from this firm. Such as advertising and other promotional tools.

  1. Closing the sales

This involves salesperson to get the prospect to commit to purchase.

  1. Following up and servicing the account

This involves salesperson to not end once the sales have been made. Keeping existing customers is easier than attract new ones. Salesperson should maintain the relationship with the customers by keeping them satisfy through follow up activities.

2.3.4 Components of Personal Selling

Personal selling focus on four components to a successful selling, it involves steps from the start determining the prospects till closing the sales. According to Reid Bojanic (2010:527) these are the 4 components:

  1. Prospecting and qualifying

Sales activities consist of searching and determine selective prospects that are believed to have the need and wants, willingness, readily accessible and ability to purchase the product.

  1. Planning and delivering sales presentations

Sales activities consist of introducing themselves, identify the product, and being honest and assertive in planning an outline of what will the prospect’s needs by asking probing questions about prospect’s needs and objectives. Three types of probing questions and they are information gathering, problem identification, and problem resolution. And last, to be active listener and understand what prospect is trying to say. This is to avoid objections and gain commitment from them.

  1. Overcoming objections

Sales activities consist of determining if the prospect’s response is asking for more information, condition of the sale, or an actual objection. After determining, it must overcome the objection by agree and counter, turn the objection into a reason for buying, seek more information and postpone the objection.

  1. Closing the sale

Sales activities consist of summarizing the important purchase points and have a confirmation from the prospect.

Author concludes these four elements are the basic process for sales to interact with customer effectively. A journal written by Dave Kahle, The American Salesman 54.7(Jul 2009):3-8 Good Questions and the Basic of Selling. He mentioned these are the basic simple elements process for sales:

“1.Engage with the right people. 2.Make them feel comfortable with you. 3.Find out what they want. 4.Show them how what you have provides them what they want. 5.Gain agreement on the next step. 6.ensure that they are satisfied, and leverage that satisfaction to other opportunities.”
2.4 Consumer Behavior

2.4.1 Definition of Consumer Behavior

According to Kotler Keller (2013: 173) consumer behavior is “Consumer behavior is the study of how individual, groups, and organizations select, buy, use, and dispose of goods, services, ideas, or experiences to satisfy their needs and wants.”

Thus according to Schiffman Kanuk (2010: 23) consumer behavior is “Consumer behavior as the behavior that consumers display in searching for, purchasing, using, evaluating, and disposing of products and services that they expect will satisfy their needs.”

From the definition, author conclude that consumer behavior is the study of how individual, groups and organization behave in different kinds of situation where they will face in selecting, buying, using in goods and service or experience to make themselves satisfy.

2.4.2 Consumer Buying Behavior

According to Kotler Armstrong (2012: 178) consumer buying behavior is “Consumer Buyer Behavior refers to the buying behavior of final consumers- individuals and households that buy goods and services for personal consumption.”

Purchase decision is about which brand will the customer prefer and purchase at the end. Purchase behavior is described into two three kinds of purchase; trial purchase (Investigating stage where the consumer attempted to assess a product through direct consumption). Repeat purchase (which usually signifies that the product meets the customer’s approval and that they consumer is willing to use it again), and long-term commitment purchase (which consumer moves directly from evaluating to long-term commitment without the chances for an actual trail) (Schiffman Kanuk 2010: 497).

Everyday consumers determine various purchase options. From the above definition the conclusion will be consumer purchase behavior is for their personal consumption whether it's a trial purchase, repeat purchase or a long-term commitment purchase.

2.4.3 Influence of Consumer Buying Decision

Kotler Armstrong (2012: 159) has mentioned 4 factors that influence the consumer buying decision. Below this diagram 2.2, will be explaining the factors that influence the consumer buying decision.

Fstraight connector 23straight connector 27straight connector 26straight connector 25straight connector 28straight arrow connector 24actors That Influence Consumer Buying Decision






Beliefs and attitudes

Age and life cycle stage occupation
Economic situation
Personality and self-concept

Social class

Reference groups
Roles and status

Picture 2.1 Factors That Influence Consumer Buying Decision

Source: Philip Kotler and Gary Armstrong (2012:159)

  1. Cultural factors

Cultural factors influence consumer behavior in a wide-ranging and deep understanding. It consists of cultural, subcultural and social class.

  1. Culture is set of basic desire, values, perception, and behavior that are learned by a member of society from family and other important tradition.

  2. Subculture is a group of smaller member people that shares the similar experience value, and behavior.

  3. Social class is comparatively stable in where society members share similar interest, behavior and values.

  1. Social factors

Social factors influences consumer behavior, examples like family, reference group, and the role and status.

  1. Reference group is a group that can provide direct or indirect influence on the attitude and behavior of people.

  2. Family is members that can be powerful influence on buying behavior. Family is the most important society among the others.

  3. The role and status define the person’s position inside the group, such as family, clubs, organizations and communities. This status reflects their esteem given by society.

  1. Personal factors

Decision is also influence by person’s buyer traits such as age and life cycle stage, occupation, economic situation, lifestyle and personality and self-concept.

  1. Age and life cycle stage is buyers tend to buy according to their lifetimes. The taste of things will match with their age related.

  2. Occupation in different kind of job will require different needs. And these influence their behavior in purchasing.

  3. Economic situation is state of economy that will affect a person choice of product. State of economy will be personal income, savings, and interest rate.

  4. Lifestyle is how the person’s pattern of daily life is. Such as his or her activities, interests and opinions.

  5. Personality and self-concept is different people have different personality. Personalities are the unique psychological characteristic from every people. And these personalities will influence their self-decision-making.

  1. Psychological factors

When a person is purchasing, it is also influence by four major; motivation, perception, learning and beliefs and attitudes.

  1. Motivation is a strong drive that directs the person in order to meet the satisfaction of the needs.

  2. Perception is a process through which information is selected, organize, and interpret to make it meaningful.

  3. Learning is changing from past experience that effect in individual’s behavior.

  4. Beliefs and attitudes; belief is a descriptive though that a person holds about something. Attitude is a person’s consistent evaluation towards an object or idea

Thus, author concludes that factors influencing the consumer’s behavior have many variables involved and all of these factors influence one another. A journal by Barmola, Kailash Chndra;Srivastava, S K. Productivity 51.3(Oct-Dec 2010):268-275, Role of Consumer Behavior in Present Marketing Management Scenario. It mentioned, “Consumer behavior is influenced by various factors like individual, environment, and decision making.”

2.4.4 Process of Buying Decision

According to Kotler Armstrong(2012: 176) buying decision consist of five stages that shows possibilities that arise when a prospect facing purchase situation from the process of before and after purchasing. And these are the following;

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Picture 2.2 The Buyer Decision Process

Source: Kotler and Armstrong (2012: 176)

  1. Need recognition

Consumer will buy a product as a solution to the problems it faces. The problem will be motivated by the need at hand. Without the introduction of the problems that arise, consumers cannot determine which products will be purchase.

  1. Information Search

After understanding the problems that exist, consumers will be motivated to seek information to solve the existing problems through information search. Information search can be obtained from personal sources (family, friends etc.), commercial sources (advertising, displays etc.), public sources (mass media, internet searches etc.), and experiential sources (examining, using the product etc.).

  1. Evaluation of alternatives

Once consumers have a wide range of information, consumer will evaluate alternatives to address the problems it faces.

  1. Purchase decision

After consumers evaluate strategic alternatives exist, consumer will make a purchase decision. Purchase intention such as expected income, expected price, and expected product benefits, however sometimes in situation between purchase intention and purchase decision may have a different result in purchasing due to other things that need to be considered.

  1. Post purchases behavior

An evaluation process consumer does not just end at the stage of making a purchase decision. After purchasing the product, consumers will evaluate whether the product is in accordance with expectations. In this case, the result will either be satisfaction or dissatisfaction. Consumer will be satisfied if the product is in accordance with expectations and will most likely purchase again in the future. Consumer will be dissatisfied if the product is not in accordance with expectations and this will reduce the chances of consumer purchasing in the future. Satisfied customers will tend to buy the product again, let others know about the product, pay less attention to other brands and advertising. And even will buy other product from the company.

As author conclude above describe the customer buying decision consist of 5 steps of process while facing purchasing situation. According to a journal by Novita Klarisa; Pengaruh Bauran Promosi Terhadap Keputusan Pembelian Konsumen Di Swalayan Maxi Balikpapan, she also stated that buying process consist of these 5 steps. I quote “Menurut Kotler(2003:204), terdapat beberapa tahap-tahap proses dalam melakukan keputusan pembelian yaitu: Pengenalan Masalah, Pencarian Informasi, Evaluasi Alternatif, Keputusan Pembelian, dan Perilaku Pasca Pembelian..”

2.5 Relationship between Personal Selling towards Buying Decision

According to some journals that have explained the relationship between personal selling towards buying decision, here are some examples;

  1. Author Ananda Fortunisa and Andrew Arief Agassi in the journal Pesan Iklan Televisi Dan Personal Selling: Alat Promosi Untuk Peningkatan Keputusan Pembelian (2012) has stated that “Dengan indikator tersebut dihasilkan kesimpulan bahwa variabel personal selling berpengaruh signifikan terhadap keputusan pembelian djarum black.” This means the result of the conclusion in this research indicate variable of personal selling significantly influence-buying decision at Djarum Black.

  2. Author Novita Klarisa in the journal Pengaruh Bauran Promosi Terhadap Keputusan Pembelian Konsumen Di Swalayan Maxi Balikpapan (2013) has stated that variable personal selling has positive effect towards buying decision.

2.6 Framework

This is the outline of this research:

Marketing Mix






Physical environment


Promotion Mix


Direct Marketing

Public Relation

Sales Promotion

Personal Selling


Customer Buying Decision

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Picture 2.3 The Framework

2.6.1 Concept framework

This is the outline of the 2 variables. Personal selling is the independent variables (variable X) and consumer buying decision is the dependent variable (variable Y)

Customer Buying Decision

(Variable Y)

  • Need recognition

  • Information search

  • Evaluation of alternative

  • Purchase decision

  • Post purchase decision

Personal Selling

(Variable X)

  • Prospecting and qualifying

  • Planning and delivering sales

  • Overcoming objections

  • Closing the sale

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