Marketing Function

10.1 Understanding of Marketing

Marketing is a comprehensive, integrated, and planned activity carried out by an organization or

institution in conducting business in order to be able to accommodate market demand by creating
products of sale value, determining prices, communicating, delivering, and exchanging offers of value
to consumers, clients , partners and the general public.

Put simply, the definition of marketing is more identified with the process of introducing products or
services to potential consumers. Aspects of marketing include advertising, public relations, promotion
and sales.

Understanding of Marketing According to Experts

Some experts have explained the meaning of marketing, including:

1. John Westwood

According to John Westwood, the notion of marketing is an integrated effort carried out to meet the
needs of consumers and provide profits / profits to the company.

2. Tung Dasem Waringin

According to Tung Desem Waringin, the notion of marketing is a medium to communicate a higher
added value.

3. Philip Kotler

According to Kotler, the notion of marketing is a social activity and an arrangement carried out by
individuals or groups of people with the aim of getting their goals by making products and
exchanging them for a certain nominal amount to other parties.

4. Jay Abraham

According to Jay Abraham, the notion of marketing is a medium for achieving success by providing
the most important services to consumers.

5. William J. Stanton

According to William J. Stanton, the definition of marketing is the overall system of various business
activities or businesses aimed at planning, determining the price of goods or services, promoting it,
distributing it, and being able to satisfy consumers.

10.2 Marketing Concepts

In the basic concept of marketing there are six concepts, namely:

1. Concept of Production

That is a concept where consumers prefer products that can be found everywhere at low prices. So the
orientation of this concept is more directed towards efforts to achieve high product efficiency and
very broad distribution. The task of management here is to increase the production of goods because
consumers are deemed to receive affordable production results everywhere.

2. Product Concept

States that will prefer products that offer the best quality, performance, and character. Where the
management's task here is to make high-quality products and the best & attractive appearance.

3. The Concept of Sales

Stating that consumers are left alone or as they are, organizations must try to carry out promotions
that attract consumers.

4. Marketing Concepts

States that the key to achieving the goals of a business organization includes determining the needs &
wants of the market as a target and providing appropriate satisfaction effectively & efficiently
compared to competitors.

5. The concept of Social Marketing

In this concept the task of an organization is to determine the needs, interests, desires of the market
and continue to provide satisfaction and still preserve & improve the welfare of society or consumers.

6. The Concept of Global Marketing

In this concept, the executive manager must try to understand all environmental factors that can
influence marketing through strategic management. Where the ultimate goal is to try to meet all the
needs of the community and provide the best and useful to all parties involved in a company.

10.3 Marketing Mix

Marketing mix is a sales or promotion strategy and pricing that is unique and designed to produce a
mutually beneficial exchange for the intended market.

This marketing mix is increasingly growing, especially in the field of services, not only covering
product, promotion, and price (4P), but also in terms of place, people, process, and physical evidence,
which is further known in the term marketing service mix as 7P.

This concept will be adjusted to the condition of the service company that will implement it, but in
general, this 7P concept (product, price, place, promotion, people, process, and physical evidence) is
used to make decisions in making marketing communication strategies:

a. Product (The Services) / Products or Services

Service products are products that can provide benefits, meet consumer needs, and can satisfy
consumers. In fact, customers do not buy goods or services, but buy benefits from something offered.

b. Price

Pricing is an important thing. The company will do this with full consideration because pricing will be
able to affect total revenue and costs. Price is the main determinant of position and must be decided in
accordance with the target market, the variety of products, services, and competition.
c. Place / Business Location

The range of places becomes something that must be considered carefully, strategic places certainly
have better public access opportunities, but the cost of renting a rental from that place must also be
taken into account as a consequence of easy access to consumers.

d. Promotion / Promotion Strategy

Promotion is an activity and material in its application using techniques, under the control of the seller
/ producer, which can communicate interesting persuasive information about the products offered by
the seller / manufacturer, both directly and through parties that can influence the purchase.

e. People / Human Resources (HR)

People are the main assets in the service industry, especially businesses that require high-performance
resources. Consumer needs for high-performing employees will cause consumers to be satisfied and
loyal. The ability of knowledge (knowledge) is good, will be the basic competence in the company's
internal and good imaging outside.

f. Process / Business Process or Activity

Service or product quality is very dependent on the process of delivering services to consumers.
Considering that the service company mover is the employee itself, to ensure quality of service
(quality assurance), all company operations must be carried out in accordance with standardized
systems and procedures by employees who are competent, committed and loyal to the company where
they work.

g. Physical Evidence / Corporate Physical Evidence

Building is a part of physical evidence, a characteristic that becomes a value-added requirement for
consumers in service companies that have character. Attention to interiors, building equipment,
including lightning systems, and roomy layout is an important concern and can affect the mood of
visitors.

The building must be able to create an atmosphere by paying attention to ambience so as to provide
experience to visitors and be able to provide added value for visitors, in particular a key requirement
for service companies with special market classes.

10.4 Marketing Services

Service marketing is an action offered by a producer to consumers in the form of services that cannot
be seen, felt, heard or touched but can be felt by the consumer.

Service marketing is a relatively new discipline. The service industry is currently a very large
economic sector and growing very rapidly. The growth is a result of demands and technological
development.

Here are some definitions and definitions of service marketing:

 According to Lupiyoadi (2006: 5), service marketing is every action offered by one party to
another party that is in principle intangible and does not cause any transfer of ownership.
  According to Yazid (2008: 13), service marketing is a link between an organization and its
consumers. This liaison role will succeed if all marketing efforts are market oriented. The
involvement of all parties, from top management to non-managerial employees, in
formulating and supporting the implementation of consumer-oriented marketing is something
that is not negotiable.
 According to Daryanto (2011: 236), marketing services is about promises. Promises are made
to customers and must be kept. The strategic framework is known as a service triangle that
reinforces the importance of people in the company in making their promise and success in
building customer relationships.

 Service Marketing Objectives

There are two marketing service objectives, namely commercial services and non profit services, the
explanation is as follows:

1. Commercial Services (profit services). Services that aim to make a profit. Example: Car wash,
where this service aims to make a profit by washing consumer cars.

2. Non Profit Services. Services aimed at social interests. Example: Museum, where this service aims
to provide information to museum consumers, without targeting profits.

 Characteristics of Service Marketing

According to Nasution (2004: 8), there are four characteristics of service marketing that need to be
known in service marketing, namely:

a. Intangibillty (intangible)

Service is intangible, meaning that they cannot see, smell, feel, hear and feel the results before they
buy it. The intangible value of services can be pleasure, security, and satisfaction. To get all of that,
consumers will usually seek information in advance from the services they will use, such as location,
price, and the form of service to be provided.

b. Inseparability (inseparable)

Inseparability means that services cannot be separated from the source, namely the service company
that produces it with consumers who use the service. Interaction between service providers and
consumers occurs when services are produced and consumed at the same time. If the consumer buys a
service, he will come face to face with the source or service provider.

c. Variabillity / heterogeneity (changeable)

The services provided often vary depending on who presents it, when and where the service provider
is performed. Consumers before making a decision to use a service will usually ask for the opinions of
others, therefore service providers will continue to compete in offering varied services with good
quality in order to create satisfaction from consumers.

d. Perishabbility (not durable)

Services cannot be saved so that they cannot be sold in the future. In this case the service is different
from the goods, because usually the goods can be stored and used repeatedly, it is not the case with
the service, if the service is not directly used, the service will pass.
  Types of Marketing Services

According to Tjiptono (2014: 36), service marketing can be classified into seven criteria, namely as
follows:

1. Market segment

2. The level of manifestation

3. Skills of service providers

4. The purpose of service organizations

5. Regulation

6. Level of employee intensity

7. Level of Contact of Service Providers and Customers

 Service Marketing Strategy

According to Kotler and Armstrong (2008: 293), good service companies need to use marketing
strategies to position themselves strongly in selected target markets, namely as follows:

a. Profit-Chain Services

In the service business, customers and front line service employees interact to create services. As a
result, effective interaction depends on the expertise of front-line service employees and the support
processes that support these employees. Therefore service companies must focus on both customers
and employees to be successful. Service companies understand the service-profit chain, which links
service company profits with employees and customer satisfaction.

b. Managing Service Differentiation

Service companies can differentiate their service delivery by having people who deal directly with
customers who are more capable and reliable, through developing a good physical environment where
service products are delivered or by designing a good delivery process.

c. Manage Service Quality

Service companies can differentiate themselves by delivering higher quality consistently than their
competitors, where service providers must identify what the target customer expects to be of service
quality.

d. Manage Service Productivity

With costs rising fast, service companies are under enormous pressure to increase service
productivity. This can be done in several ways, such as better training old employees or hiring new
employees who will work harder or more skilled, increasing the quantity of their services by reducing
a number of quality services, also being able to industrialize services by adding equipment and setting
production standards, and finally, service providers can use the power of technology.
References: https://www.kajianpustaka.com/2018/11/tujuan-karakteristik-jenis-dan-strategi-
pemasaran-jasa.html

https://www.maxmanroe.com/vid/marketing/pengertian-pemasaran.html

https://www.seputarpengetahuan.co.id/2015/03/enam-konsep-pemasaran-dan-tujuannya.html