1.1.

Marketing

The American Marketing Association defined marketing as the process of

planning and executing the conception, pricing, promotion, and distribution of
ideas, goods, and services to create exchanges that satisfy individual and
organizational objectives. Marketing concept is based on three fundamental beliefs
: all planning and operations should be customer oriented, all marketing activities
in an organization should be coordinated, and customer oriented, coordinated
marketing is essential to achieve the organization’s performance objectives.
Marketing objectives are made to introduce our product, increase awareness to
product’s brand existance, and sell the product to consumer.

1.1.1 Target Marketing

A target market consists of a group of customers (people or organizations) at
whom the seller directs a marketing product (Stanton et al., 1991). This product’s
target market is people who experience mites problem in some furnitures at house.

1.1.2 Market Segmentation

Market segmentation is the process of dividing the total heterogeneous market
for a good or service into several segments, each of which tends to be homogeneous
in all significant aspects (Stanton et al., 1991). Segmentation used as an attempt to
fit the product to the market. Consumer market may be segmented on the basis of
geographic, demographic, psychographic, and behavior toward product
characteristics. This basis sometimes interrelated. For example, income depends to
some degree on age, education, and occupation.

1.1.1.1 Geographic Segmentation

Geographic segmentation can be grouped to region, city or Metropolitan
Statistical Area (MSA), urban-rural, and climate. The product planned to be
marketed in several big cities in Indonesia which are having more concern with
healthy. Those cities especially are Jakarta, Bogor, Depok, Tangerang, Bekasi,
Bandung, Semarang, Yogyakarta, Surabaya, Batam, Medan, Palembang, and Bali.
The choice of location is based on the consideration that the population in the major
cities, the level of use a mattress, so this product is suitable with customers’
needs.The consideration of dividing the region is ALSO based on number of
populations, plant location, supply chain, etc. Based on plant location, the product
is distributed in the cities around the plant. Based on population, the product is
distributed in the major / capital cities in Java, Sumatra, Kalimantan, Sulawesi and
Maluku in order to suit the market. From the product that we’ve been produced, the
percentage of each region is, the first region (Jabodetabek) is 20%. The second
(Java) is 20%. The third (Sumatra) is 20%. The fourth (Sulawesi) is 15%. The fifth
(Kalimantan) is 15% and the sixth (East Indonesia) is 10%.

1.1.1.2 Demographic Segmentation

Demographic segmentation divides customers into segments based on
demographic values such as age, gender, family size, family life cycle, income,
occupation, education, religion, race, generation, social class and nationality. Based
on the questionnaire, more than 50% consumer is above 17 years old, so that the
product will be marketed to customer on age above 17; because at that age, a person
begins to concern by the presence of mites that could pose a danger of several health
problems. Moreover, at that age a person starts to get treatment on themself. For the
market target based on the gender, it will choose both woman and man as our target
market. From the target market based on the income segmentation, the product’s
customer will be in the middle class, especially those who already have problem
about mite allergen. It is based on those who already have a mattress of customer’s
own have a greater need for mite repellent. Currently, mites repellent still used
chemical as main ingredient. Then it will be good if the product can natural
ingredients so it is more safety.

1.1.1.3 Psychographic Segmentation

Psychographic segmentation is grouped by social class, personality, and life-
style. The product main objective is solve house mites problem that can be suffered
by anyone without being affected by social class, personality, nor life-style. So there
are no specific psychographic segmentation for our product.

1.1.1.4 Behavior Segmentation

Based on the behaviour of market segmentation, it is divided by the level of
knowledge, attitudes, and usage or buyer’s reaction to a product. Based on the level
of knowledge, it feels that there is no need to restrict consumers to a particular level,
because awareness to use mite repellent in homes especially in mattress can be
grown through branding, sales promotion, and demonstration. After the consumers
know this product, then consumers will be loyal to the products and attract other
consumers to use this product too.

Marketing Integration; Marketing program will be used to achieve objective

of marketing as stated in previous part. Marketing mix will be used, which is the
combination of four primary elements that comprise a company’s marketing
program. The four elements are :
A. Product
The name of our product is Bye Mites, which is scented eczema medicine
made of natural ingredient packaged in small tube. Not only cure itches,
Coataderm has multiple benefits to the skin, such as moisturizing, nourishing,
and rejuvinating. Our product is easy to use, easy to carry, safe for pregnant
woman and toddler, has a pleasant fragrance and good texture for skin-
contact. Based on many benefits desired from consumer on the previous
assignment that we can fulfill from our product, we confident that our product
can compete with other eczema medicine products.
B. Price
We decide the price of our product is IDR 40,000. This decision is based on
raw material cost, salary cost, and other price-related factors. We confident
that our product price is affordable and reasonable compare to other products.
C. Distribution
Our product will be distributed to hospitals, pharmacies, and drugstores. The
wholesaler to distribute of our product will be Century, Guardian, and
Watsons. And also we distribute to major pharmaceutical merchant / PBF
(Pedagang Besar Farmasi).
D. Promotion
For the commercial of this product, we need to inform/promote to the
consumer using some interesting and eyecatching commercial. We will
design an interesting advertisement, sales promotion and further more, we can
use the social media to optimize the promotion of this eczema medicine
product.