E-BOOK MARKETING MANAGEMENT

E-BOOK CHAPTER MARKETING MANAGEMENT GROUP 11 SUPERVISOR Dr. Eko Handayanto, Drs. M.M. COMPILED BY: M.AKHERO RAMADHAN (202210160311366) RIAN WAHYU IRMANSYAH (202210160311396) MUHAMMADIYAH UNIVERSITY OF MALANG FACULTY OF ECONOMICS AND BUSINESS MANAGEMENT 2023/2024

CHAPTER I Sustainable Marketing in Dynamic Business Realities DISCUSSION A. Marketing Scope Marketing entails recognizing and satisfying human and societal requirements in alignment with the objectives of an organization (Kotler et al., 2022). And Marketing is a management process that makes it easier for individuals or groups to obtain the goods or services they want and need by creating, presenting and exchanging products that have value with other parties. This includes all activities related to the transfer of products or services from producers to consumers (Shinta, 2011). Marketing management encompasses both the art and science of identifying target markets and procuring, retaining, and fostering customer relationships by generating, delivering, and effectively conveying exceptional customer value (Kotler et al., 2022). Specifically, it usually involves 10 different types such as (Kotler et al., 2022; Kotler & Keller, 2016): Goods: The core of marketing efforts in numerous countries centers around tangible products. Along with economic growth, the main focus of activities is increasingly the provision of services. Events: Marketers are involved in promoting events that are time-specific, which can include major trade exhibitions, artistic showcases, and corporate milestone celebrations. Experiences: Market-driven experiences constitute a marketing strategy aimed at delivering consumers unparalleled, lasting, and valuable encounters. Market-driven experiences constitute a marketing strategy aimed at delivering consumers unparalleled, lasting, and valuable encounters. Marketed locations pertain to marketing endeavors directed at promoting a specific physical site or place with the objective of luring in visitors or customers. Property: The goal of property marketing is to draw the interest of potential buyers or renters, and it encompasses the promotion of a range of property types. Organization: The primary objective of organizational marketing is to raise public awareness, secure support, and aid the organization in achieving its goals. Information: Marketed information constitutes a deliberate effort to endorse, circulate, or sell particular information to a specific audience. Ideas: The concept of ideas marketing is versatile and applicable in a range of settings, including social campaigns, advocacy efforts, and the dissemination of specific concepts or visions. Marketing Exchange, In the traditional sense, a "market" refers to a physical location where buyers and sellers meet to exchange goods. Economists define a market as a group of buyers and sellers engaging in transactions related to a specific product or category of products (Kotler et al., 2022). The market landscape can be divided into five primary categories: There are various market segments, including resource markets, producer markets, consumer markets, intermediary

markets, and government markets. The provided illustration visually represents the flow of goods, services, and money among these fundamental market segments (Kotler et al., 2022): Intermediaries, in response, convey the end products to consumers. At the same time, consumers contribute their labor and receive income, which they utilize to purchase various goods and services(Baber, 2023; McCorriston & MacLaren, 2023). Additionally, the government collects tax revenues, which are then deployed to procure items from resource, producer, and intermediary markets, thereby sustaining the provision of public services(Daubanes & Lasserre, 2023). Essentially, the economies of individual nations and the global economy collectively form a complex web of interconnected markets that interoperate and facilitate a wide array of exchange processes (Kotler & Keller, 2016) Simple Marketing System

Marketers regard sales as an industry and utilize the word "market" to designate different customer groups(Woodall & Hiller, 2022). In exchange, they receive payments and valuable information, including insights into customer attitudes and sales data.(Kotler et al., 2022) B. New Marketing Reality The evolving market environment can be segmented into three principal aspects: the first involves market forces that shape interactions among diverse market actors, the second entails market outcomes emerging from the interplay of these forces, and the third is characterized by the increasing significance of holistic marketing as a strategy for thriving in rapidly changing markets (Kotler et al., 2022). These ideas include four primary market dynamics, three fundamental market results, and four underlying principles of comprehensive marketing, collectively providing insights into the emerging marketing landscape. By employing these concepts, it becomes possible to pinpoint a series of specific tasks that comprise effective marketing management and leadership.(Negeri, 2023). Four Major Market Forces, The contemporary business landscape is significantly shaped by four primary factors: technology, global integration, the physical environment, and social responsibility (Sirohi et al., 2022).

The rapid growth of e-commerce, online and mobile communication, and artificial intelligence has created fresh opportunities for marketers (Buyanova et al., 2021). Furthermore, technology has had a significant impact on traditional marketing activities. (Kotler et al., 2022) Globalization, In today's global landscape, fair competition and equal opportunities are prevalent, enabling competitors from all corners of the world to excel (Almeida et al., 2010). The cultural diversity within countries due to globalization has transformed innovation and product development, with companies tapping into ideas and knowledge from one region and applying them in another (Okumuşlar & Bilecik, 2019). Physical Environment, There have been drastic changes to several physical environments in which the Company operates over the last few decades (Tuomala et al., 2022). Two major changes that occurred Special attention has been dedicated to the physical environment, viz Atmospheric changes, The term "climate change" refers to enduring shifts in the global and regional climate patterns, exerting a substantial influence on the Company's business operations (Singh & Goyal, 2023). The impact of climate change can significantly affect businesses across all industries (Kasimu et al., 2023). Changes in global health conditions, Alterations in health conditions can influence not only the functioning of healthcare firms but also exert an impact on businesses that are not directly linked to the health sector (Woldeyohannes et al., 2024). Social Responsibility, Given that marketing's impact extends to the broader society, marketers have a duty to carefully contemplate the moral, ecological, legal, and societal facets of their pursuits (Sakas et al., 2023). As a result, The main objective of an organization is to recognize and fulfill the requirements, preferences, and concerns of the target audience, surpassing competitors in both efficiency and effectiveness, all the while safeguarding and improving the well-being of consumers and society in the long run(Lee et al., 2023). Three Key Marketing Results, The current market landscape is undergoing significant transformation due to four primary forces: The forces of technology, globalization, the environment, and social responsibility (Arathi Devaraj et al., 2023). These factors provide consumers and businesses with enhanced abilities, promoting a competitive market atmosphere. We will now delve deeper into the specifics of the three market results : Evolving Consumer Abilities in the Contemporary Landscape digital and techsavvy age, consumers are more focused on leveraging expanded access to information, improved communication, and increased mobility (Joshi et al., 2023). This enables them to make well-informed decisions and express their preferences and viewpoints to a worldwide audience (HASSEN. A, 2021). These emerging consumer capabilities encompass various essential aspects, namely: Customers can utilize online tools as a valuable source of information and support for their purchasing decisions (Rawat, 2023). Consumers can use mobile connectivity to explore, interact, and buy while mobile (O’Reilly et al., 2023).

Customers can employ social media to exchange financial details and demonstrate allegiance (Febriani, 2021). Consumers can interact actively with the Company (Goetha & Manafe, 2022). Consumers can reject marketing they consider inappropriate or intrusive (Guenther et al., 2023). Consumers can extract greater value from their existing possessions (Siswadi et al., 2023). New Enterprise Capabilities Apart from empowering users, Internationalization, social sustainability, and technological developments also have the same influence brought forth a number of new capabilities that support companies in providing value to customers, business partners and stakeholders (Wachira & Waruguru, 2020). The primary capabilities of the company include utilizing the internet as a robust channel for information and sales, even for custom-tailored products. Organizations can gather comprehensive and in-depth data about markets, clients, potential customers, and rivals. Enterprises can rapidly and effectively engage with customers via social media and mobile marketing, delivering customized advertisements, discounts, and details. Enterprises can enhance their procurement, recruitment, training, as well as internal and external communication processes (Kotler et al., 2022). Companies can increase expense reduction. Companies can enhance their supply chain and operations to realize significant cost efficiencies while enhancing precision and service quality (Ng et al., 2021). With the emergence of new market forces, the competitive dynamics and the structure of the competitive environment have undergone significant transformations (Al Atif et al., 2022). Some important The alterations in the competitive landscape include the : Relaxation of Regulations, In numerous nations, industries have been deregulated to foster increased competition and expansion prospects (Kotler et al., 2022). Deregulation is a reduction in rules and constraints set by the Government to influence business activities (Putra et al., n.d.). Privatization, Privatization is the effective transfer of control of a government-owned company to private managers and owners, followed by the transfer of the government's majority share ownership to the private sector (Maro’ah, n.d.). Retail Evolution, Traditional brick-and-mortar retailers are encountering competition from catalog firms, direct mail companies, and online businesses; direct-to-consumer newspaper, magazine and TV advertising; home shopping TV network; and electronic commerce (Kotler et al., 2022). Disintermediation. Disintermediation is the elimination of intermediary channels (Morris & Morris, 2002). Private Label, Brand manufacturers are increasingly being hit through influential retailers who promote their brands as in-house labels, becoming progressively similar to other brand categories (Kotler et al., 2022).

Many well-established brands have grown into enormous brands and ventured into connected product sectors, creating fresh prospects at the crossroads of two or more industries (Shih, 2022). C. The Role of Marketing in Organizations In today's global landscape, the role of marketing has gained increasing importance for companies, driven by the escalating competition (Rangaswamy et al., 2020). This includes the entrance of new competitors, the growth of existing ones, and the continuous emergence of alternatives, such as smartphones vying with computers (Fernández-Fernández et al., 2023). These competitors can arise both within the country and from overseas (Basu & Dharmmesta, n.d.). In organizations, whether they are non-profit or corporate, the marketing role differs at each managerial level (Bazuhair, 2023). In a large corporation, there are typically three tiers of management: top management, middle management, and operational management (Abdelghany et al., 2023). From an organizational standpoint, the highest level is referred to as the corporate level, the middle level as the strategic business unit level, and the lowest level as the operational level (De Felice et al., 2023). Marketing is needed by every level in the company with different roles as stated by Webster, Jr (1992) as seen in the figure below (Basu & Dharmmesta, n.d.). Corporate Level, At this level, the name of marketing is called corporate marketing with the following roles : Campaigning for customer orientation by always prioritizing customer views; This kind of philosophy is called the Marketing Concept (Srivastava & Bag, 2023). Estimating market attractiveness by analyzing customer needs and requirements, potential competitive offers for the company, and estimating potential competitive effectiveness (Srivastava & Bag, 2023). Develop company-wide value benchmarks that reflect customer needs and extend them across the company and its markets (Critzer & Koster, 2020). From these three main roles, it can be concluded that marketing as culture or culture takes priority (Utama et al., 2023). Culture here includes a number of basic values and beliefs about the basic interests of customers (Basu & Dharmmesta, n.d.).

Strategic Business Unit Level, The marketing name for this level is called strategic marketing, with the roles: determine how to compete (segment trading place, determine destination trading place, and position the product) in a particular business by conducting a more detailed and careful analysis of competitors and company sources (Syah et al., 2021); decide when and how to enter into a partnership (Semlali et al., 2023). This strategic business unit level places more emphasis on marketing as a strategy (Basu & Dharmmesta, n.d.). Operational or Functional Level, At this lowest level, the marketing role is called marketing management. Marketing plays a role: Formulate and implement marketing programs based on the marketing mix, namely: product, pricing, distribution and promotion, or abbreviated as 4P. Manage harmonious relationships with customers and distributors. At this operational level, marketing is prioritized as a tactic (Basu & Dharmmesta, n.d.). Within an organization, managers need to establish a structured framework that ensures the readiness of both personnel and physical assets to execute strategies and attain overarching objectives (Anince et al., 2020). The following is the role of marketing in an organization: The Function of Marketing in the Corporate Industry, In the business realm, enterprises have embraced marketing in various points in time (Sandesh et al., 2023). Generally, marketing gained rapid acceptance among firms involved in the production of consumer goods, encompassing those in the packaging industry, as well as companies manufacturing consumer durables and industrial goods (Retno Dwi Astutik et al., 2023). The Role of Marketing in the International Sector, Multi-national companies invest a lot of capital to increase their global marketing capabilities (Al-Hasan et al., 2023). Multi national companies have introduced and disseminated modern marketing practices throughout the world (Kwon et al., 2021). D. Organize and Manage a Modern Marketing Department Functional Organization, The predominant structure in marketing organizations involves functional specialists reporting to the head of marketing, who oversees and aligns their efforts (GUO et al., 2019). The primary benefit of a functional marketing organization lies in its straightforward administrative approach(Davis et al., 2020). (Kotler et al., 2022).

Geographic Organization, In the realm of national market operations, it's common for companies to arrange their sales and marketing teams based on geographic territories(Reed et al., 2022). This structure typically entails a Sales Territory Leaders overseeing four regional sales managers, each in charge of six zone managers, who, in turn, manage eight district sales managers, and each district manager is responsible for ten sales people (Hoffmann et al., 2023) To bolster their sales efforts in high-volume markets, certain companies are introducing regional or local area market specialists(Lichy et al., 2023). (Kotler et al., 2022). Product or Brand Organization, A product management organization is a sensible choice when a company's products are highly diverse, or when there is a larger product portfolio than what a functional organization can effectively manage(JONGBO, 2023). In this model, the brand or product manager holds a central position, acting as a focal point with various departments extending outward, symbolizing their collaborative relationships (please refer to the provided image for visual representation)(Ambulkar et al., 2022).(Kotler et al., 2022). Market Organization, Many companies expand their product and service range to address distinct target markets(Likhtin, 2022). Market managers are responsible for overseeing teams that consist market development managers, market specialists, or industry specialists rely on functional services as needed (Bruhn et al., 2023). (Randikaparsa et al., 2023).

Matrix Organization, In situations where companies manufacture a multitude of products for various markets, they may adopt a matrix structure that involves both product and market managers (Wand et al., 2023). Nonetheless, this approach can be costly and often leads to internal conflicts(La Spada, 2022). The key issues include the financial burden of maintaining numerous managers and the intricate matter of determining the allocation of authority and responsibility for marketing activities, whether they should be centralized at headquarters or distributed among the divisions (Bugdol et al., 2023). (Kurniawan et al., 2020). Manage the Marketing Department The role of CEO and CMO, CEOs are aware of the vital role marketing plays in building strong brand identities and fostering devoted customer bases, which are invaluable intangible assets contributing significantly to a company's overall worth(Rizki & Mulyanti, 2023). To form a genuinely marketing-centric organization, the current CEO convincingly conveyed to senior management the critical importance of giving priority to a customerfocused approach(Kanan et al., 2023). Furthermore, CEOs must have the capability to recruit highly skilled marketing professionals. In many instances, companies require a capable. Chief Marketing Officer (CMO) who not only manages the marketing department but also holds the esteem and influence necessary to collaborate with other executives (Agyei & Ngulube, 2023). (Kotler et al., 2022). The CEO's principal responsibility is to appoint a leader for marketing who carries the ultimate responsibility for all marketing activities in the organization(Abebe & Acharya, 2022). Senior marketing managers, responsible for different facets of the marketing strategy, typically report to the CMO(Mero et al., 2023). The CMO is in charge of overseeing all marketing functions within the organization, including product development, brand management, communications, market research, data analysis, sales, promotions, distribution management, pricing, and customer service(LHH, 2023). (Bahtera, 2018). CMOs must have a strong grasp of both quantitative and qualitative skills, maintain an entrepreneurial attitude that balances independence and collaboration with other

departments, and possess the ability to capture the customer's "voice" while also deeply understanding how marketing adds value(Liang et al., 2023). The central role for any CMO is to integrate the customer's perspective into business decisions affecting all customer touchpoints, where customers interact directly or indirectly with the company(Prasanth et al., 2023). (Kepuasan & Loyalitas Pelanggan, n.d.). Relations with Other Departments A company's prosperity hinges not only on the individual departmental performance but also on the company's ability to orchestrate the actions of these departments in carrying out fundamental business procedures(Gamal et al., 2022). In the context of marketing, it's vital that all departments prioritize customer needs and expectations(Bucak et al., 2023). Nevertheless, there are instances where departments maintain distinct perspectives and objectives, potentially leading to conflicts of interest and communication issues(Condie et al., 2023). The primary goal is to encourage collaboration between marketing, finance, operations, and other organizational departments to guarantee and enhance customer satisfaction (Balamurugan, 2021).(Kotler et al., 2022). Many modern businesses today emphasize core processes over traditional department structures(Górriz et al., 2020). Collaborative efforts across various aspects of the organization are crucial, particularly in understanding the unique needs of individual customers(Moraux et al., 2023). Furthermore, marketers must establish close working relationships with teams focused on customer insights and data analysis, as well as with diverse communication agencies such as advertising, social media, public relations, and event management firms(Rungruang et al., 2024). Additionally, effective collaboration with the company's channel partners, including both physical stores and e-commerce outlets, is essential for the efficient delivery of the company's products and services(Mbhele, 2023). (Kotler et al., 2022). E. Building a Customer-Centric Organization The proliferation of diverse products, services, and brands, along with the growing consumer awareness about market offerings and the influence consumers wield over public perceptions of companies and their products, has highlighted the vital importance of establishing customer-focused organizations(Rosário & Dias, 2023). Nowadays, most businesses understand that the key to delivering value to stakeholders starts with a fundamental reevaluation of the organization, with a strong emphasis on creating sustainable customer value(Nurfadllika & Adinata, 2023).(Saleh & Said, 2019). Managers prioritizing customers as the key revenue source consider the traditional hierarchical structure, with the president at the top, management in the middle, and employees and customers at the base, to be outdated and no longer relevant (Gibadullina, 2023).(Kotler et al., 2022).

Highly successful marketing firms frequently transform the traditional organizational hierarchy charts to adopt the structure shown in the figure below(Rangaswamy et al., 2020). (Kotler et al., 2022).

The paramount concern for a company centers on its customers, followed by the vital role of the frontline staff who engage, assist, and ensure customer satisfaction(Ginting et al., 2023). Subsequently, service managers support these frontline employees to deliver exceptional customer service, while top management is responsible for recruiting and supporting effective service managers(Zada et al., 2023). The core principle for cultivating a customer-centric company is that managers across all levels should actively engage in comprehending, addressing, and fulfilling customer requirements (Ahlemann et al., 2023). The table below summarizes the key characteristics of customer-centric organizations. (Kotler et al., 2022). Traditional marketers act as intermediaries to understand and convey customer needs to various company departments(Gupta & Sheth, 2023). However, in a networked company, each department can interact directly with customers, necessitating the integration of customer processes to provide a uniform experience(Meyer & Schwager, 2011). This necessitates implementing changes, such as structuring the organization based on customer segments rather than products, and gaining insight into customers through a combination of qualitative and quantitative research (Harish & Malathy, 2023). (Kotler et al., 2022).

Conclusion The conclusion of the paper is that marketing is a key element in businesses and organizations that has a major role in creating long-term success. Marketing helps create demand for products and services, build brands, increase sales and create healthy competition. Moreover, marketing enables companies to further participate in socially responsible endeavors The fundamental principles of marketing encompass grasping customer needs, desires, and requirements, along with how companies identify specific markets, position their products, and effectively manage their offerings and brands. Marketing encompasses the utilization of diverse marketing channels, media, and technology to connect with customers. Additionally, it involves a comprehension of the marketing landscape, which comprises economic, socio-cultural, technological, and political-legal factors. Additionally, in the new marketing era, technology and globalization have a significant role in the way companies interact with customers and competitors. New capabilities for consumers and companies have changed marketing dynamics, with consumers having more power in the purchasing process. Finally, the holistic marketing philosophy emphasizes the importance of integration in marketing strategy, including customer relationship development, integrated marketing, internal marketing, and performance marketing. Marketing management has a major role in developing marketing strategies, understanding customers, building brands, and creating value for business and society.

CHAPTER II DEVELOPING MARKETING, STRATEGIC AND PLAN Discussion DEVELOPING MARKETING, STRATEGIC AND PLAN Market or market development strategy Development is a business development strategy that focuses more on introducing existing products to new target markets. Marketing strategy refers to the process of planning and creating strategic plans designed to achieve the marketing objectives of a business or product. Making strategic decisions about how a company will market their products or services to customers. Steps in developing a marketing strategy: 1. Market Analysis : Market analysis is a comprehensive study of a particular market within an industry, including an examination of the various components. (Anestika et al., 2023)Such as market size, key success factors, distribution channels, target audience , profile and growth rate, and market trends. The goal of market analysis is to evaluate and understand market conditions, trends, and competition to make informed business decisions. The components of market analysis (Disusun et al., 2020): Market Size: Market size refers to the total sales generated in a certain period and provides insight into current sales volume and future sales projections. Market size is influenced by market demand, and businesses get information about market size through surveys for example government data and other (J. Ekonomi et al., 2020). Key Success Factors: Understanding the key success factors in the market is very important for businesses to remain competitive with company competitors. This includes marketing and operational strategies, company resource allocation, management, and employees. Businesses can understand areas for improvement and achieve company goals and targets(J. Ekonomi et al., 2020) Distribution Channels: Distribution channels play an important role in market analysis as they determine the path to customers. Through market analysis, businesses can identify new customers and opportunities to expand their user base. This can be done by evaluating the relationship between the business and existing customers. Audience : Market analysis allows businesses to segment their target audience from a larger market and meet their specific needs, increasing brand loyalty.(Anestika et al., 2023) Profitability and Growth Rate : Predicting future profits is one of the main goals of market analysis . Businesses can project market size and future cash flows by estimating the potential user base. Additionally, financial ratios can be used to estimate growth rates. Market Trends: Understanding current and future trends is a key component of market analysis. Market trends have the potential to attract new customers and should be monitored closely. How Important is Market Analysis

Understanding customers: Can help understand the tastes and preferences of target customers to promote better marketing and future market predictions.(Camilleri, 2020) Tracking competition: Tracking competition to understand weaknesses for company strategy development. Testing the product: Testing the product to provide insight into the product through surveys. To see the development of product popularity before it is marketed. Predicting future actions: Predicting opportunities and threats for decision making and proactive action(Hsieh & Chen, 2011) 2. Goal Setting : Goal setting is the process of deciding what the company wants to achieve. It usually involves developing an action plan, with smaller goals broken down into actionable steps, to guide the company towards achieving those goals.(Kepada et al., 2021) How to Set Goals Create SMART Goals : Company goals must be SMART " specific , measurable , attainable , relevant and time-bound , measurable, achievable, relevant and timebound". Company goals must be achievable to keep company confidence high. However, it also needs to be high to remain competitive. By setting competitive but realistic goals. Make an Action Plan: Make a specific plan about how the company will achieve its goals.(muhammad ade rifsih, 2020) 3. Market segmentation : Market segmentation is the process of dividing a market into smaller groups or segments based on similar characteristics, needs, or behavior. The main goal of market segmentation is to better understand and serve different consumer needs and preferences.(Kepada et al., 2022) Types of market segmentation: Behavioral segmentation: Behavioral segmentation stimulates several consumers based on their behavior towards the business products offered, starting from attitudes, knowledge, reactions or responses, loyalty and continued use of a related product from a customer. Demographic segmentation: Market segmentation is demographic segmentation, this grouping of consumers focuses on aspects such as: age, gender, occupation, education, marital status and so on.(AGUSTINA RESMAYANTI, 2012) Psychographic segmentation : Psychographic segmentation tends to relate more to the psychological aspects of customers. The implementation of segmentation is quite complicated because it is necessary to understand the tastes of target consumers in depth. Geographic segmentation: Market segmentation is geographic segmentation, namely grouping consumers according to location aspects. This segmentation is no less important than others considering the needs and uses of a product and service.(Ali Hasan Ahmad Addary, 2020)

Benefits of market segmentation: Helping to meet consumer needs Increase consumer attraction Make it easier for companies to manage the products and services they offer Helps companies focus on certain target consumer groups Opening greater opportunities for business growth Helps marketing become better and more targeted Makes it easier for companies to manage finances, especially for marketing Increase competitiveness with competitors Market segmentation objectives Understanding Customers: Segmentation helps companies better understand who their customers are, what they want, and how to meet their needs.(Roudlotul Janah & Ekonomi Syariah Fakultas Ekonomi Dan Bisnis Islam, 2019) Product Customization: By understanding different market segments, companies can customize their products or services to better fit each segment.(sulaeha, 2019) More Efficient Targeting : Segmentation allows companies to identify the most promising market segments and focus marketing efforts to them. Marketing Strategy Development: Enables companies to develop more effective and relevant marketing strategies for each market segment. Increase Customer Retention: By meeting the needs of market segments well, companies can increase customer retention and create loyalty.(Hsieh & Chen, 2011) 4. Product Strategy . : Product strategy is a comprehensive plan that governs how companies plan, develop, produce, market, and manage their products or services in order to achieve specific business goals. (Yayan Sofyan, 2022) Examples of product strategies include: Positioning or forming a brand image Overlapping or creating new initiatives Creating new products Do product design Elimination or cutting a number of product lines as a form of further action Types of product strategy Product Positioning Strategy Positioning strategy is a strategy that seeks to create unique differentiation in the minds of target customers, resulting in a brand or product image that is superior to competing brands or products. Product Repositioning Strategy

There are competitors who enter and their products are positioned side by side with the company brand, thus having a negative impact on the company's market share. Consumer preferences have changed. Discovered new customer preference groups followed by promising opportunities. An error occurred in the previous positioning . The product repositioning strategy is implemented by reviewing the current product position and marketing mix, and trying to find a new, more appropriate position for the product. The goal of this strategy is to continue the viability of the product and to correct previous positioning errors.(Sukarman Pruba, 2022) Product Overlap Strategy overlap strategy is a marketing strategy that creates competition against certain brands belonging to the company itself. This competition is formed in three ways, namely the introduction of products that compete with existing products, the use of private labels, and selling components used in the company's own products to competitors. Product Scope Strategy Product scope strategy is related to the perspective of a company's product mix, for example the number of product lines and the number of items in each line offered. This strategy is determined by taking into account the overall mission of the business unit.(Wayan et al., 2019) Product Design Strategy Product design strategy is related to the level of product standardization. There are three strategic choices taken by the company, namely standard products, customized products products (products tailored to the needs and desires of certain customers), and standard products with modifications. Product strategy objectives Product Planning: This involves determining the type of product or service to be offered, as well as market and competitor analysis. Product planning also involves setting product goals, such as target customers, sales volume, and market share. Product Development: The product development process includes research, design, prototyping, and testing of new products or improvements to existing products. This is the stage where the product idea is realized into a physical or digital product. Product Life Cycle: Products go through stages in their life cycle, including introduction, growth, maturity, and decline. Product strategy must consider how to manage the product at each of these stages, including whether innovation, expansion, or discontinuation of the product is necessary.(F. Ekonomi et al., 2023) Pricing: Product strategy also includes setting prices that match the value offered by the product or service. Companies must consider factors such as production costs, competitor prices, and market demand.

Distribution: How a product or service is distributed to customers is also an important part of product strategy. This involves selecting appropriate distribution channels and supply chain management. Marketing and Promotion: Product marketing strategy involves the way the product is promoted and introduced to potential customers. It includes advertising, branding and marketing communications strategies. Product Portfolio Management: Companies often have a variety of products in their portfolio. Product strategy should include how to manage and prioritize products in the portfolio to maximize results. Performance Analysis: Continuous evaluation of product performance is important to ensure that the product remains relevant and meets business objectives. This involves sales analysis, customer feedback, and strategy adjustments if necessary.(Penerbit, 2019) Benefits of product strategy Business Growth: An effective product strategy can help a company increase revenue and experience significant business growth. This could include increasing sales of existing products, launching a successful new product, or expanding into new markets. Increased Competitive Advantage: By focusing on innovation and developing the right products, companies can gain a better competitive advantage. Unique and high-quality products can be a determining factor in winning customers from competitors. Increase Customer Satisfaction: Product strategies that consider customer needs and preferences can increase customer satisfaction. Better products and better service can create strong customer loyalty.(Fina Ulliya, 2020) Better Risk Management: With a better understanding of the product life cycle, companies can manage risks better. They can anticipate market changes and take necessary actions, including product diversification if necessary. Improve Operational Efficiency: A good product strategy can help a company organize production and distribution more efficiently. This can reduce operational costs and increase profits. Improve Branding : A strong product can improve a company's brand image. Products known for their quality and reliability can help strengthen a brand image. Focus on the Right Customers: Product strategy helps companies determine the most promising market segments and focus marketing and sales efforts on the right customers. This avoids wasting resources on irrelevant markets. Informed Decision Making: With continuous monitoring and analysis of product performance, companies can make better decisions. They can identify opportunities, address problems, and adapt strategies quickly. 5. Pricing strategy : a plan made by a company to determine the prices to be charged for their products or services. This is one of the most important aspects of marketing because price has a direct impact on revenue, profitability and the perceived value of the product in the eyes of customers.(Barokah et al., 2021)

The essentials of pricing strategy Pricing Objectives: Companies must determine their pricing objectives. Whether they want to maximize profitability, win market share, enter a new market, or compete in a specific price segment, pricing objectives will influence overall pricing decisions. Market Analysis: It is important to understand the market and customers well. This involves research on competitor prices, market demand, customer price sensitivity, and market trends. This information helps in determining prices that are appropriate to market conditions.(Asrori et al., 2021) Cost Determination: Companies must calculate production, distribution and marketing costs accurately. The product price must at least cover these costs to break even or achieve the desired level of profitability. Strategic Pricing: There are several pricing strategies to choose from, such as costplus- margin- based pricing , competition-based pricing, customer-perceived-value pricing, or premium pricing. The choice of this strategy will depend on the company's goals and their market.(Kasus Pada Pengguna et al., 2023) New Product Pricing: When launching a new product, a company may use strategies such as penetration pricing (low prices to enter the market quickly) or skimming pricing (high prices to take advantage of premium market segments). Pricing Strategy During the Product Life Cycle: The price of a product may change during its life cycle. For example, prices may be lowered as the product reaches maturity to remain competitive. Price Adjustments: Companies should also consider the possibility of price adjustments according to changes in market conditions or production costs. This may involve promotional offers, discounts or seasonal price adjustments.(Mauludianah, 2019) Price Communication: How prices are communicated to customers is also important. This includes marketing strategy, pricing methods (for example, raw price or bundle price), and the way prices are displayed on the website or in promotional materials. Price Performance Measurement: It is important to track and analyze price performance regularly. This involves monitoring sales, profitability, and customer reactions to price changes.(Irmayanti, 2019) The purpose of the pricing strategy Increase Profitability: One of the main objectives of pricing strategy is to increase the profitability of the company. This can be achieved by setting prices higher than production and distribution costs, thereby creating a healthy profit margin . Winning Market Share: In some cases, a company may choose to set lower prices than competitors to win a larger market share. This is known as a penetration pricing strategy and can help a company dominate the market quickly. Maximizing Revenue: Another goal could be maximizing overall revenue. This may involve a pricing strategy based on discounts or special offers to encourage additional sales.

Increase Perception of Value: Pricing strategies can also be used to create a higher perception of value in the eyes of customers. Setting a higher price can imply the quality or exclusivity of the product.(Fernanda et al., 2020) Supporting the Product Life Cycle: During the product life cycle, prices can be adjusted to achieve different goals. For example, prices may be higher when a product is first launched (a skimming pricing strategy ) and then lowered as the product reaches its maturity stage. Building Brand Image: Price can be used as a tool to build a strong brand image. Brands with a premium image may set higher prices to reflect the quality and exclusivity of the product.(Oleh, 2021) Facing Competition: Pricing strategies are also used to compete with competitors. This may involve competitive prices for similar products or different pricing strategies to attract different customers. Increase Sales Volume: Sometimes, companies may set lower prices to increase sales volume. This can be useful if the company has a large production capacity or if they want to attract new customers. Adapting to Market Changes: Pricing strategy objectives may also change with changes in the market or in the company's situation. Companies must be able to adjust their prices according to changes in demand, production costs, or competition.(Vika Agustin, 2023) Benefits of pricing strategy Increase Profitability: Smart pricing can increase a company's profit margin , which in turn increases profitability. Good prices allow companies to break even more quickly and create greater profits. Increased Market Share: With competitive or attractive prices, companies can win more customers and control a larger market share. This is especially useful in industries with many competitors. Optimizing Sales Volume: The right pricing strategy can be used to drive sales volume. Low pricing or special offers can encourage customers to buy more.(ATANIYA SALMA NABILA, 2022) Increase Perception of Value: Price can influence the perception of value of a product or service. Setting higher prices can create the impression of a more exclusive or high-quality product in the eyes of customers. Adjusting to the Product Life Cycle: Prices can be adjusted throughout the product life cycle. For example, prices may be higher when a product is first launched and lower as it reaches maturity. Building Brand Image: Price can be used to build a strong brand image. Premiumpriced products tend to be associated with high-quality brands. Facing Competition: Prices can be used to compete with competitors. Companies can set prices that are similar or better than competitors to stay relevant in the market.

Optimizing Production Capacity: Pricing strategies can help optimize production capacity. Higher prices may be applied in times of excess production, while lower prices may be applied to move stock. Adjusting to Market Changes: Prices can be adjusted to changes in market conditions, such as fluctuations in demand or raw material costs. Increasing Customer Loyalty: Prices that match the value provided by the product can increase customer satisfaction and create long-term loyalty. Improve Purchasing Decisions: Clear and reasonable prices can help customers make quicker and easier purchasing decisions. Reducing Inventory Risk: Efficient pricing can help companies avoid the risk of excessive stock buildup or inventory shortages. 6. Pricing strategy : Pricing strategy is the process of selecting prices that will apply to a company's products or services. This involves various considerations and approaches to determine the right price.(Manajemen, 2019) Important things to note about pricing strategies Cost-Based Pricing Pricing ) - This is a common approach, where prices are set taking into account production, distribution, and marketing costs, as well as the desired profit margin . - This method can create stable prices and ensure that each sale makes a positive contribution to the company's fixed costs. - However, this approach may ignore market factors and customer demands. Pricing Based on Demand ( Demand-Based Pricing ) - This strategy considers the level of market demand. Prices are increased if demand is high and reduced if demand is low.(Tri Suhesti et al., 2021) - It involves a deep understanding of customer behavior regarding price and how price changes will affect sales volume. - Demand-based pricing is more flexible than cost-based and better able to respond to market changes. Value-Based Pricing Pricing ) - This is an approach that identifies the value a product or service provides to customers and sets prices that reflect that value. - Value-based pricing involves a deep understanding of customer preferences, brand perceptions, and product advantages. - This strategy is often used for premium products or those that have unique competitive advantages. Competitive-Based Pricing Pricing ) - In this strategy, the price is determined by comparing it with the prices of similar competitors in the market. - Companies can choose to set prices lower (penetration prices) or higher (premium prices) than competitors, depending on strategic objectives. Time-Based Pricing ( Time-Based Pricing ) - Prices may change over time, such as seasonal special offers or period-specific discounts.

- Time-based pricing is often used to drive sales at specific times, such as holidays or the end of the fiscal year. Dynamic Pricing ( Dynamic Pricing ) - This is a strategy where prices change automatically based on factors such as current demand, supply, or customer profile. - A common example of this is the price of an airline ticket which can change depending on the time of purchase and demand.(Riadi & Kamase, 2021) Psychological Pricing ( Psychological Pricing ) This strategy exploits customers' psychological perceptions of price. Examples include setting the price below a round number (for example, $9.99 instead of $10) or setting the price to a certain level (for example, $499 instead of $500). Bundle Pricing ( Bundle Pricing ) - It involves offering products or services in bundles at a lower price than the individual prices. - Bundles can encourage customers to buy more. Differentiated Pricing ( Price discrimination ) This strategy involves setting different prices for different customer groups or in different situations. For example, different prices for business and consumer customers. Sustainable Pricing ( Sustainable Pricing ) This strategy sets prices that reflect sustainable value or relevant social and environmental factors. This is often related to sustainable or environmentally friendly products or services.(Lianardi & Chandra, 2019) Steps to implementing a pricing strategy Providing Plus Prices The first strategy that can be done is to provide a plus price. By using this method, the selling price will be guided by the calculation of the total costs used. The calculation results will later be combined with a certain amount in order to cover profits or what is often called margin. The main function of this method is so that the company can obtain the largest possible profit. Mark up Another step that companies can take in their pricing strategy is to use the mark up method . This term refers to determining the selling price and is guided by the initial cost of purchase. The numbers obtained must be calculated with a certain amount. The mark up here shows the company's selling price which is more than the costs required for the production process. Therefore, in general, the higher the mark up , the greater the income generated by the company. Break Even Points Often called BEP, break events points can also be used as a strategy for setting prices. This step is carried out by setting the selling price in accordance with the total costs incurred and the results received by the business entity.(Kaukab, 2019) Conduct Competitor Analysis Another method that companies can use is to carry out competitor analysis. From here, companies can do some research and see what business performance is like. Companies can see what the supply of goods, production materials and prices their

competitors are paying for the products they sell. With this step, companies will determine prices that are more acceptable and remain profitable for the business they have. Conduct Market Research Another strategy that can be used is to set market prices. Companies can conduct in-depth research regarding market demand. The aim of this method is to be able to see the needs and problems faced by the target audience . Usually, the factors that must be considered when using this method are looking at requests, feedback and other forms of suggestions from consumers.(Bokolan et al., 2023) Benefits of pricing strategies It is easier for companies to penetrate market prices Companies can command higher prices Increasing the value and image of a brand Increase focus on customer service The purpose of the pricing strategy Avoiding Price Wars One of the goals of setting prices is to achieve stable prices that do not rise and fall easily. With fixed and stable prices, you can avoid potential price wars. This price war can occur when there is a decrease in demand. Product prices are forced to fall in order to attract buyers.(Finny et al., 2021) To Respond to Competition with Competitors Setting prices can also be the right solution to face competition. You can check consumer behavior and what things can give advantages to the product you have, then you can determine the price at which it will be sold. Increasingly Maximizing Profits When getting business profits, what entrepreneurs usually do is use it as capital to continue business operations. In fact, this is the standard way, in fact all entrepreneurs will do this.(Dr. Meithiana Indrasari, 2019) Forming a Business Image Pricing can also build the image of your business. Surely you have heard words like "there is a price and there is quality". Words like this are certain because when consumers want to buy a product, they will immediately see the price. Consumers who don't know the quality of the product can judge the product based on its price. 7. Action Plan : Create a detailed action plan, including concrete steps, budget, implementation schedule, and who is responsible for each action. the process by which an organization determines its strategy or direction, and makes decisions to allocate its resources (including capital and human resources) to achieve this strategy. Various business analysis techniques can be used in this process, including SWOT ( Strengths , Weaknesses , Opportunities , Threats ), PEST ( Political , Economic , Social , Technological ), or STEER ( Socio-cultural , Technological , Economic , Ecological , Regulatory ) analysis.(Syariah, 2020) Steps in the Action Planning Process

Formulation of targets: Formulation of targets is one of the most important and important steps in the planning process. Determining the right targets will determine the number of activities to be carried out and how many or long periods of time are needed. Determining current goals and strategies. In this second step, as a leader or leaders in the organization you must be able to provide an introduction to existing goals and strategies. Environmental analysis: The environment in question is the wider environment . The goal is to be able to determine how changes in technology, social , economic, cultural, legal and political of an organization can indirectly affect the organization.(Samsul Fuat, 2020) Resource analysis: Resource analysis is very necessary in the strategic planning process. This aims to find out how adequate the resources the organization has. Recognize threats and opportunities using SWOT analysis. SWOT analysis is an analytical tool that can help managers determine and develop strategies in facing competition in an organization or business. Opportunities and threats in organizations can arise from any direction and cannot be predicted.(ANJA PUTRANDA, 2021) Determine the extent of strategic changes to be made. This is to anticipate changes in the environment when activities take place. CLOSING CONCLUSION By followin this process, businesses can optimize their marketing efforts, build a strong brand, and achieve sustainable growth in a competitive market. Marketing strategy planning is how to find various interesting opportunities and develop profitable strategies. There are various kinds of marketing planning, namely strategic market planning Market Planning ) strategic marketing planning for the company ( Corporate Marketing Planning ) Operational marketing planning. The marketing planning process consists of analyzing the results of marketing activity achievements, analyzing the company's marketing SWOT, determining marketing objectives (Objects), determining marketing strategies. setting marketing targets, preparing marketing plans, preparing marketing programs, preparing marketing budgets.(Yanuar Krisma, 2021)

CHAPTER III ANALYZING CONSUMER MARKETS “Unveiling Consumer Markets Secret” INTRODUCTION A. Background In an increasingly competitive business landscape, a profound understanding of consumer behavior and their needs has become an essential element for achieving success (Bergner et al., 2023). Modern consumers tend to be changeable in their preferences, often influenced by dynamic factors such as technological advancements, cultural shifts, and environmental factors (Смерічевський et al., 2023). Therefore, companies and marketers need to possess the capability to swiftly identify and respond to these changes and keep up with evolving consumer trends (Boldbaatar & Choi, 2022). In this context, the analysis of consumer behavior presents a significant challenge (Mogaji et al., 2023). It involves complex data collection, accurate data processing, and precise interpretation (Chen et al., 2023). Hence, effective strategies are required to better analyze consumer markets (Malunju & Kembu, 2021). The title "Unlocking Consumer Insights: Strategies for Analyzing Consumer Markets" reflects the concept that there are methods and strategies that can be used to "unlock" insights into consumer behavior (Wright et al., 2023). This entails the utilization of relevant data, the application of sophisticated analytical techniques, and a strategic approach that helps companies delve deeper into understanding consumer behavior (Purwanti et al., 2022). The outcomes of robust consumer market analysis can have a substantial impact on business decision-making (Mahssouni et al., 2022). It assists companies in directing their efforts more accurately, developing products and services more aligned with consumer needs, and enhancing efficiency in marketing strategies (Mahssouni et al., 2022). Overall, a strong understanding of consumers and in-depth consumer market analysis are key elements that support business success (Chursook et al., 2022). With the right approach to analyzing consumer behavior, companies can achieve a competitive advantage, respond better to market changes, and develop solutions that cater more effectively to consumer needs—factors that are essential in a successful business (Fetais et al., 2022). B. Problem Statement 1. How are changes in the preferences and behaviors of modern consumers influenced by factors such as technology, cultural shifts, and the environment, and how does this impact marketing strategies? 2. What are the primary challenges in analyzing consumer behavior, especially in terms of complex data collection, accurate data processing, and precise interpretation?

3. How can effective strategies for analyzing consumer markets assist companies in "unlocking" consumer insights, and what is their impact on business decision-making? C. Research Objectives 1. To understand the changes in the preferences and behaviors of modern consumers influenced by factors such as technology, cultural shifts, and the environment. The aim is to identify trends and patterns in consumer behavior and how these changes affect the marketing strategies of companies. 2. To identify the main challenges in analyzing consumer behavior, especially regarding complex data collection, accurate data processing, and precise interpretation. The goal is to determine the obstacles that need to be addressed in consumer behavior analysis. 3. To discover effective strategies for analyzing consumer markets that can assist companies in "unlocking" consumer insights. The objective is to identify efficient methods for collecting, analyzing, and interpreting consumer data, which can be used in business decision-making. 4. To identify the impact of robust consumer market analysis on business decisionmaking. The aim is to understand how in-depth consumer insights can help companies in directing marketing strategies, developing products and services more aligned with consumer needs, and enhancing efficiency in marketing and business development strategies. LITERATURE REVIEW A. Consumer Behavior in a Changing Landscape: Consumer behavior in a changing landscape has been a subject of extensive research (Fetais et al., 2022). Studies have shown that technological advancements play a pivotal role in influencing consumer choices (Henao-Céspedes et al., 2023). The rise of ecommerce and the digital environment has significantly altered shopping patterns (Ilmi, 2023). The impact of e-commerce on consumer behavior, highlighting the importance of personalized experiences and convenience in online shopping (Yousefi et al., 2023). Cultural shifts have also been a focus of research (Jašina-Schäfer, 2023). Changes in cultural norms and values can affect consumer perceptions of products and services (Lietuva, n.d.). Companies need to adapt their marketing strategies to align with cultural trends to resonate with their target audience (Arellan, 2023). Environmental concerns have led to a growing demand for eco-friendly products (Touckia et al., 2022). This emphasize the importance of sustainability in consumer choices (Damico et al., 2023). Businesses are increasingly adopting sustainable practices and communicating their commitment to the environment to meet these evolving consumer expectations (Boncinelli et al., 2023). B. Analyzing Consumer Behavior Challenges Analyzing consumer behavior comes with its set of challenges, many of which are addressed in the literature (Zhao et al., 2021). One of the primary challenges is data collection (Ma & Green, 2023). The advent of big data has made data collection more complex, but also more valuable (Teri et al., 2022). The use of advanced data analytics in

overcoming data collection challenges and improving the accuracy of consumer behavior analysis (Gheorghe & Matefi, 2021). Data privacy and security are critical concerns (Alzaidi & Agag, 2022). The importance of safeguarding consumer data and complying with regulations like GDPR (Evans et al., 2023). Ensuring data privacy is vital to maintain consumer trust(Hakim et al., 2023). Technology and artificial intelligence have also been studied in the context of consumer analysis (Soyer, 2022). The role of machine learning in automating data processing and deriving insights from large datasets, thus simplifying the analysis process s(Nayak et al., 2023). C. Effective Strategies for Consumer Analysis Literature on effective strategies for consumer analysis encompasses a wide range of topics (Wen & Liu-Lastres, 2022). The importance of utilizing a combination of data collection methods, such as surveys, focus groups, and online tracking, to gain a comprehensive understanding of consumer behavior (Salama et al., 2023). Advanced analytics and machine learning are crucial in extracting meaningful insights from vast datasets (Ligthart et al., 2021). How businesses can apply predictive analytics to identify trends and patterns in consumer behavior (Chee Sun et al., 2022). The role of consumer segmentation, psychographics, and demographic analysis is well-documented (Kamal et al., 2022). The benefits of segmentation in tailoring marketing efforts to specific consumer groups (Huang & Rust, 2021). D. Impact on Business Decision-Making The impact of consumer analysis on business decision-making has been widely explored in the literature (Mason et al., 2021). How businesses that leverage consumer insights in their decision-making processes tend to outperform competitors (Stranieri et al., 2023). A deep understanding of consumer behavior enables companies to create more effective product development, marketing campaigns, and pricing strategies (Haba et al., 2023). The real-time aspect of data analysis is crucial (Jafari et al., 2023). The value of real-time data in shaping quick and responsive decision-making (Hirons et al., 2021). Industries with rapidly changing consumer preferences, such as technology and fashion, particularly benefit from this approach (Badar et al., 2023). CONCLUSION From the literature review provided, several key conclusions can be drawn. First, consumer behavior is a highly dynamic aspect influenced by factors such as technology, culture, and the environment. The emergence of e-commerce and digital platforms has transformed how consumers shop, with an emphasis on personalized and convenient experiences. Second, analyzing consumer behavior presents its own set of challenges, particularly in data collection, data processing, and data security. Third, there are various effective strategies for analyzing consumer behavior, including diverse data collection methods, advanced analytics, and consumer segmentation. Finally, the impact of consumer analysis on business decision-making is substantial.

In conclusion, a deep understanding of consumer behavior and the application of effective data analysis strategies are key to business success in a rapidly changing market.

CHAPTER V "ANALYZING THE BUSINESS MARKET" DISCUSSION From the organizational buying process, there are several key aspects as follows: The procedure starts when an employee in the company recognizes a need or issue that may be resolved by purchasing an item or service (Alexander, 2022). Recognition of a problem may arise from either internal or external cues. (Ardiacono, 2022). Recognition of a problem may arise from either internal or external cues. Internal stimuli might include requirements or business issues that emerge from internal operations, management or employee behavior, or both (Audi, 2021). Salespeople's presentations, commercials, trade fair material, or recent advancements in the competition are examples of external stimuli (Ravasi, 2021). Necessary General Description. When buyers recognize a need, they have to explain it clearly so that everyone knows what the demand is and what kind of solution the company should look for (Anslinger, 2022). In collaboration with engineers, users, purchasing agents, and other relevant parties, buyers ascertain and rank critical product attributes (Ravasi, 2021). Armed with information, these consumers are aware of practically all the issues that a regular customer may have with a product (Rayes, 2020). From the standpoint of marketing strategy, you have a chance to sway choices at this point by outlining the type of solution you can offer to solve the difficulties the company is facing (Brax, 2021). Trade promotion can inform prospective clients about our offerings on the Websites, content marketing, and direct marketing strategies like online sales assistance and toll-free lines are helpful tools for raising awareness and educating prospective clients about what is available and why it is worthwhile to investigate (S, 2020). Public relations may be helpful by showcasing your unique accomplishments and successful clients in a variety of trade publications (Ardiacono, 2022). Product specifications. In this procedure, technical requirements are the next step. Usually, the engineering department is in charge of this (Mahr, 2022). Engineers create several options while providing the organization with precise requirements that match the predetermined priority list (Anslinger, 2022). Supplier Search. Customers are increasingly attempting to find the best vendors, or providers (Ruile, 2020). To determine which suppliers meet their needs and which have a reputation for providing high-quality products, solid business relationships, and good value for money, buyers perform a routine search (Lorentz, 2021). This step almost always entails using the internet to look up suppliers and read through reviews of both companies and products. Consumers can directly consult trade publications and directories, view written or video case studies, get advice from opinion leaders, and get in touch with peers or colleagues from other businesses for recommendations (Santos, 2021). During this phase, marketers can contribute by keeping attractive websites with informative content and case studies, collaborating with thought leaders to offer helpful content, employing content marketing techniques to place reliable information in places where consumers are likely to look, and publishing it (Jonsson, 2021). When marketers or salespeople get greater

knowledge about an organization's objectives, priorities, and product specifications and give buyers helpful information regarding the offer under consideration, consultative selling—also known as personal selling—plays a significant role (Lorentz, 2021). Request for Proposals. Proposals from qualified vendors are requested for the next round of the process (Costa, 2021). Depending on the type of transaction, many providers only send sales agents or catalogs (Avidson, 2021). Complex acquisitions often need the submission of a comprehensive proposal that includes the product specs, time, and price, as well as what the supplier can supply to satisfy the buyer's demands (Agasisti, 2021). Development of proposals necessitates in-depth study, proficient writing, and presentation (PwC, 2022). In the case of large-scale and intricate purchasing choices, like the solution sale mentioned earlier, proposal delivery is comparable to an all-encompassing marketing plan that targets specific clients (Seyedghorban, 2020). Businesses that reply to a lot of proposals usually have a specialized team that writes proposals and collaborates closely with sales and marketing staff to produce well-written, persuasive proposals (Hoek, 2022). Supplier Selection. The buyer now evaluates the offers and selects one (Costa, 2021). Evaluating the potential providers is a crucial step in this choosing process (Costa, 2021). Part of the selection process includes a thorough review of all bids that have been received; further considerations include vendor credentials, standing, client testimonials, warranties, and other aspects (Santos, 2021). Different decision-makers may use the same set of criteria to grade proposals. The selection procedure frequently reduces the number of providers to a shortlist of the best offers (Hoek, 2022). The buyer and chosen vendors are then invited to a virtual or in-person meeting to go over the proposal and handle any issues (Hoek, 2022). At this point, the buyer can attempt to work out advantageous closing conditions with every vendor on the shortlist. Product quantity, specs, pricing, delivery schedule, and other terms of sale are all potential causes of contention (Costa, 2021). In the end, decision-makers make their decisions and share them with the suppliers that submit offers as well as inside the organization (Santos, 2021). At this point, consultative sales and associated marketing assistance are crucial (Santos, 2021). It is beneficial to periodically get in touch with important contacts and offer any extra information that could be helpful throughout the selection process, even if procurement restrictions may limit interaction with buyers during this phase (Seyedghorban, 2020). During this stage, businesses have the chance to show that they are attentive to customers' demands (Agasisti, 2021). Paying close attention at this point might create a favorable image of our future commercial dealings (Seyedghorban, 2020). Routine Order Specifications. With the chosen provider, the buyer now drafts the final order, which includes technical specs, necessary quantity, warranty information, and other details (Viale, 2020). At this point, the supplier and the customer often collaborate closely to control inventories and carry out the requirements of the contract (Wehrle, 2022). Performance Review. At this step, the buyer evaluates the performance of the provider and offers comments (Zhamak, 2022). Either side, or both, may start this procedure, which might be quite straightforward or extremely complicated (Zouari, 2021). Organizational collaboration can be altered as a result of performance assessments to enhance customer happiness, quality, efficiency, and other relationship-related factors (Viale, 2020). From a marketing standpoint, this phase offers crucial data on how effectively the product satisfies consumer wants and how to enhance delivery to increase client happiness and brand loyalty (Wehrle, 2022). Successful and contented clients could

be excellent subjects for case studies, recommendations, and testimonies for other clients (Zhamak, 2022). Customers' dissatisfaction offers a great chance to discover what doesn't work, show how responsive we are, and make improvements (Zouari, 2021). The definition of the role of the purchasing center in an organization is made up of all the people and organizations who take part in the decision-making process related to purchases, sharing some similar objectives and potential hazards (Ali, 2020). All employees who fulfill one of the seven functions in the decision-making process related to purchases are included in the buying center (Bao, 2022). The buying center often consists of some people with varying interests, levels of power, prestige, persuasiveness, and perhaps drastically different criteria for making decisions (Bao, 2022). For instance, engineers may want to optimize product performance, production staff may prioritize userfriendliness and dependability, union leaders may prioritize safety concerns, and running and replacement costs may be a worry (Belanche, 2020). The personal motives, views, and preferences of business purchasers are shaped by several factors such as age, income, education, work position, personality, risk tolerance, and culture. Buyers have a variety of purchasing habits (Hesham, 2021). Buyers might be classified as "simple," "experts in their field," "want the best," or "want things done." (Belanche, 2020). Before choosing a supplier, some younger, highly educated customers perform in-depth analyses of competing bids since they are computer specialists (Hesham, 2021). Some purchasers are traditional "hotshots" who force other vendors to compete with one another; in certain businesses, their influence is legendary (Hesham, 2021). From the perspective of market bidding costs, company purchasers ideally aim to acquire the greatest possible package of advantages (economic, technical, service, and social) (Hong, 2021). They will try to put all costs and advantages into monetary terms so they can be compared (Hutabarat, 2021). The disparity between perceived advantages and perceived costs will determine the business buyer's incentive to purchase (Le, 2022). It is the responsibility of the marketer to provide lucrative offers that provide target consumers with greater customer value (Le, 2022). One benefit that may be incalculable but that company buyers sometimes ignore is supplier diversification (Le, 2022). Purchasing decisions in the business sector have enormous consequences (Lee, 2021). They often involve not just financial considerations but also the implementation of long-term plans or key technical advancements for the future (Nguyen, 2022). Companies frequently assign this task to several parties since there are numerous parties involved in the decision. The purchasing center is one organization that decides which supplies are bought for manufacturing or who is tasked with performing a service (Pokhrel, 2022). Its members should receive special attention throughout the customer journey since they are important participants in the business and have a great deal of influence (Qalati, 2021). This presents a special difficulty for sales and marketing (Fajrina, 2020). Both teams must provide focused service to the buying center's members, who may become business partners. Therefore, working together makes sense (Qalati, 2021). It is difficult to identify every member of the buying center's staff because employees typically cycle, thus collaboration between marketing and sales is strongly advised (Shepherd, 2021). Sales typically has intimate contact with decision makers and is familiar with all of the company's specialists who make purchasing and need decisions. Marketing takes care of the other participants (indirectly) (Statista, 2022).

To do this, the following knowledge is helpful: Each member of the buying center needs a great deal of information to carry out their duties (Tiago, 2021). They typically use Google searches to obtain this information, particularly in the early phases of the purchasing process (Statista, 2022). Because of this, it's critical to rank as high as possible in search results. We can do this by using relevant content to build backlinks and raise our ranks (Avidson, 2021). Marketing automation is a crucial instrument in this context. Publish the appropriate material automatically across a variety of channels. Using buyer personas is the most efficient method (Statista, 2022). Companies create marketing campaigns in the following methods to draw in and keep business clients: Customer Relationship Management (CRM) is a business strategy that organizations use to manage and analyze interactions and data from customers, clients, and sales prospects, (S, 2020). CRM seeks to raise customer happiness and loyalty to eventually boost revenue and profitability (Fajrina, 2020). The first step in CRM is to collect and manage customer data (Zhang, 2022). This data can include information on customer demographics, purchasing behavior, and preferences (Feihou, 2021). A CRM system must be in place to collect and store this data so that it can be easily accessed and analyzed (Hou, 2021). This data can be collected through various channels such as surveys, customer feedback, and transactional data (Hou, 2021). Segmentation and Targeting: Once the data is collected, the next step is to segment the customer base and identify target segments (Akbar, 2022). The practice of breaking up a client base into groups according to shared traits, including age, income, or shopping habits, is known as segmentation (Nursyifani, 2021). This enables businesses to customize their marketing campaigns to each segment's unique demands (Rapitasari, 2022). Targeting is the process of selecting segments that will receive marketing efforts. (Tirtayasa, 2021). Organizations should select target segments that are likely to be the most profitable and have the greatest growth potential (Utari, 2023). Personalization and Customization: Personalization and customization are key components of CRM (Windusancono, 2021). When consumer data is used to create tailored experiences for customers, such targeted promotions or personalized product suggestions, this is referred to as personalization (Etim, 2022). The practice of modifying goods and services to satisfy the unique requirements of every client is known as customization. Examples of this include altering a product's features, packaging, and cost (Iloamaeke, 2022). Organizations may enhance customer satisfaction and boost customer loyalty by personalizing and modifying the client experience (Alqahtani, 2023). Communication and Interaction: Effective communication and interaction with customers is essential in CRM (Abekah-Nkrumah, 2021). Companies Need to Have a System in Place to Communicate with Clients via Email, Social Media, and Direct Mail (Akıl, 2022). They should also be able to interact with customers through phone, chat, and live interaction (Abekah-Nkrumah, 2021). Organizations may enhance customer satisfaction and establish robust customer connections by implementing an efficient communication and engagement system (Akıl, 2022).

Analytics and Reporting: The last component of CRM is analysis and reporting (Al-Ghussain, 2022). Because businesses need a system to monitor and report on customer interactions and transactions and utilize this data to make wise business choices, this entails analyzing customer data to find trends and patterns in consumer behavior (Alkhawaldeh, 2022). CRM analytics can also provide insights into customer preferences, buying patterns, and areas for improvement in customer satisfaction (Al-Momani, 2021). CLOSING In conclusion, CRM is a strategic approach to managing customer interactions and data that can improve customer satisfaction, increase customer loyalty, and drive sales and profitability (Bocken, 2022). Effective CRM implementation requires data collection and processing, segmentation and targeting, personalization and customization, communication and interaction, and analysis and reporting (Borisavljević, 2021). By prioritizing these components, organizations can effectively implement CRM and improve their overall business performance (Bozionelos, 2022). Attracting and retaining customers is an important aspect of any business, as it is the foundation of long-term success and growth (Chatterjee, 2022). In today's competitive market, companies need to understand the needs and preferences of their customers and provide exceptional customer service to ensure their loyalty (Choudhury, 2023). Business-to-business marketers build and maintain relationships with customers: The company seeks and gets new customers (Acquire), by simulating customer contact management, sales, and direct marketing as well as fulfilling every customer need, so that customers know the value of the product and its advantages (Das, 2022). Improve service as added value to customers (Enhance) This stage describes the best service provided by the company so that business and customer relationships are established and maintained in the long term (Del Vecchio, 2022). The customer service that is built is web-based with various system support systems gives a positive impact on a sense of comfort, security, and happiness for customers, because customer needs are very responsive (Eckert, 2022). Furthermore, maintaining relationships with customers in the long term (Retain) (Elgarhy, 2022). The company rewards loyal customers who benefit the company's business (Fiiwe, 2023). The company provides added value to customers, by offering various alternatives to specific customer needs (Fraihat B. A.-A., 2022). MSME Company in this case, focusing on retaining all existing customers, and delivering profits to the business (Eckert, 2022). Relationship is a process of interaction between two parties that continues to occur, not only in couples, and families but also between business to business or business to consumers (Fraihat B. A., 2023). Managing good relationships between businesses and consumers can be done in several ways, such as customer service, social media, and other marketing activities (Guo, 2021). This aims to build sustainable and profitable relationships with consumers, such as the process of socializing in everyday life so that these good relationships will result in familiarity (Han, 2021). Satisfying customers is the desire of all companies because satisfying consumer needs can increase their advantage in competition (Herman, 2021). Customers who are satisfied with the products and services offered by the company will tend to repurchase and

use services again when they need them (Jum'a, 2022). This is a key factor for customers in making repeat purchases, which is the largest portion of the company's sales volume (Khan, 2021). Customer satisfaction is defined as a comparison between expectations or expectations before purchase and perceptions after purchase, through satisfaction it can measure an index to assess customer expectations and the value or performance felt after using a service or product (Kiziltan, 2022). There are many ways to manage the relationship between business owners and consumers (Ledro, 2022). Interaction is one of the most common ways (Lehyeh, 2021). A good interaction is when it involves both parties because from this interaction the business owner can find out the desired characteristics and needs (Muslimin, 2022). Managing relationships is usually represented by marketing or public relations staff, but it does not rule out the possibility of being carried out by other departments according to policy (Naim, 2022). Knowing the characteristics and needs of consumers, with a good relationship, business owners are easily informed about the expectations and desires of consumers for a product (Ngelyaratan, 2022). With so much information, business owners can map how communication patterns, characteristics and consumers themselves will be more open in submitting complaints and suggestions so that business owners will be able to identify consumer needs to determine the next sales improvement strategy (Nojeem, 2023). Increasing recognition of a product through brand awareness is the level of consumer recognition of a brand or brand by name (Pfajfar, 2022). We certainly know Aqua, a brand whose name is now used to refer to bottled mineral water (Rahman, 2021). Consumer awareness of a product can be achieved by frequent interactions and discussions involving business owners and consumers in addition to other marketing and promotional activities (Sarstedt, 2022). 2. Improve business credibility, because in today's digital era, the good and bad credibility of a business is also determined by its image on social media (Suszynski, 2022). There are many cases where the company's image has become very bad because the relationship between the company and consumers is not managed properly (Tawfik, 2021). Therefore, do not make consumers only a source of income, but also a party that gives trust to the product because the intimacy that is established also affects the perceptions, beliefs, opinions, and attitudes of consumers to businesses (Zoubi, 2023).

CHAPTER VI “EXPLORING CONSUMER INSIGHTS THE LATEST MARKETING RESEARCH METHODS" DISCUSSION 2.1 Changes in daily consumer behavior in Indonesia affect the company's marketing strategy Changes in daily consumer behavior in Indonesia have a significant impact on the company's marketing strategy.(Haudi et al., 2022) These changes are the result of a variety of factors, including economic growth, technological development, and socio-cultural changes.(Gambhir et al., 2022) To understand how these changes in consumer behavior affect marketing strategies, we need to explore a few key aspects.(Del Moral-Morales et al., 2023) First of all, the steady economic growth in Indonesia has increased people's purchasing power.(Utama & Setiawati, 2022) Consumers have more money to spend, and this changes their preferences.(Kumar & Shukla, 2022) They may be more likely to choose products and services that offer higher quality, recognizable brands, or a more luxurious shopping experience.(Shin et al., 2022) Therefore, companies must focus more on product differentiation, strong branding, and service quality improvement to meet increasing consumer expectations.(Sarkar et al., 2021) In addition, the influence of technology and easy access to the internet has changed the way consumers search for information about products and services.(Piatkowski et al., 2023) Indonesian consumers now tend to search online before making a purchase decision. (Shaikh et al., 2022)They read product reviews, compare prices, and seek recommendations from fellow consumers.(F. Liu, 2023) Therefore, a company's marketing strategy should incorporate strong digital elements, including search engine optimization (SEO), social media marketing, and effective online campaigns.(Suartina et al., 2022) Companies must be present on online platforms used by their consumers and provide relevant and useful information.(Cavanaugh et al., 2021) In addition, changes in consumer behavior also include trends such as higher environmental and health awareness.(Inauen et al., 2021) Indonesian consumers are increasingly concerned about the environmental impact of the products they buy and also prefer healthy products.(Sogari et al., 2023) This encourages companies to adopt sustainable business practices and offer environmentally friendly products.(Sun & Yoon, 2022) Marketing strategies that focus on sustainability and health benefits can attract the attention of consumers who are increasingly aware of these issues.(Gomes et al., 2023) Furthermore, in the era of globalization, Indonesian consumers are increasingly open to international products and brands.(Pratika et al., 2021) They access products from different parts of the world, both through e-commerce and international travel.(Weis et al., 2022) This forces local companies to compete with global brands and adjust their marketing strategies.(Baryshnikova et al., 2021) The provision of competitive products and a deep understanding of local and international consumer preferences are essential.(Wu et al., 2022) In the face of this dynamic change in consumer behavior, companies need to adopt an adaptive and responsive approach.(Minahan, 2021) They must constantly monitor market trends, conduct regular consumer research, and update their marketing strategies according to changes in consumer

behavior.(Mcmahon et al., 2022) Companies that are able to understand and respond quickly to these changes will have an advantage in the face of Indonesia's ever-evolving and changing market.(Sankar, 2023) Thus, a deep understanding of changing consumer behavior is the key to success for an effective marketing strategy in Indonesia.(Blázquez-Encinas et al., 2023) 2.2 Latest Research Methods Adopting the latest marketing research methods is an important step for companies that want to understand and explore insights about consumers in Indonesia.(Hsu, 2022) Amidst rapid changes in consumer behavior and market dynamics, proper marketing research can provide valuable information to help companies take better decisions in their marketing strategies.(Dunayev et al., 2022) Here are some of the latest marketing research steps and methods that can be used by companies: 1. Online Surveys and Digital Questionnaires Online surveys and digital questionnaires are effective methods of collecting data directly from consumers.(Brandtner et al., 2021) Companies can create questionnaires that are distributed online through their websites, emails, or social media.(Abd Rahman et al., 2021) This allows companies to gain direct insights from consumers about their preferences, needs, and behaviors.(Xu et al., 2021) 2. Data Big Data Analysis In the digital age, data has become a valuable asset.(Shah, 2022) Companies can collect data from a variety of sources, including social media, websites, and customer transactions.(L. Li et al., 2021) Using big data analysis, companies can identify trends and patterns that may be difficult to detect through traditional methods.(Bou Hatoum et al., 2021)It helps in understanding consumer behavior in depth.(Barkah et al., 2023) 3. Social Media Sentiment Analysis Social media is an important platform where consumers share their opinions, reviews, and experiences.(Na’amneh, 2021) Companies can use sentiment analysis tools to monitor online conversations about their brands and their products.(Alghazzawi & Badri, 2022) It helps companies in measuring customer satisfaction levels, identifying problems that may arise, and responding quickly.(Yoo et al., 2021) 4. Social Network Analysis Consumers often connect with each other in social networks.(M. W. Liu et al., 2022) Social network analysis allows companies to understand how information and influence spreads among consumers.(Zhang et al., 2022) This can help companies design more effective marketing campaigns and understand the influence of key opinion leaders (KOLs) in online communities.(Susanti, 2021) 5. Digital Ethnographic Research Digital ethnographic research involves observing consumer behavior online.(Arteaga Pérez, 2021) Companies can monitor consumers' online activities, including their interactions with brands, their comments about products, and how they interact on digital platforms.(Y. Liu et al., 2022) This research helps companies gain a deeper understanding of how consumers interact with their brands in a digital context.(Nurjannah et al., 2022)

2.3 The role of technology and social media in shaping consumer preferences in Indonesia The role of technology and social media in shaping consumer preferences in Indonesia has become very significant in recent years.(“Analysis of Consumer Preferences in Choosing Online Food Delivery Services in Indonesia,” 2022) The development of information technology and the internet has changed the way consumers search for information, interact with brands, and make purchasing decisions.(Yang, 2021) Here are some key aspects that explain the role of technology and social media in shaping consumer preferences in Indonesia. 1. Faster Access to Wider Information Technology and the internet give consumers instant access to information about products, services, and brands.(Jiang et al., 2022) Consumers in Indonesia can now easily search for product reviews, price comparisons, and recommendations from fellow consumers through search engines and social media platforms.(Scott et al., 2022) This allows them to make more informed purchasing decisions.(O. Chen et al., 2022) 2. Influence of Reviews and Recommendations Social media, such as Facebook, Instagram, and Twitter, have become the primary places where consumers share their experiences with products and brands.(Dash, 2022) Product reviews, testimonials, and recommendations from friends or digital influencers have a huge influence on consumer preferences.(Y. Li et al., 2022) Consumers often trust reviews from their peers or influencers they follow on social media.(Ünlü & Yildiz, 2021) 3. Visual and Creative Content Image and video-based social media platforms like Instagram and TikTok allow brands to share visual and creative content.(Pryde & Prichard, 2022) It allows brands to grab consumers' attention in an engaging way and showcase their products or services in an engaging context.(Ng et al., 2022) Attractive visuals can shape consumer preferences and influence purchasing decisions.(Möllers et al., 2022) 4. Ease of Online Shopping E-commerce platforms have grown rapidly in Indonesia. Consumers can now shop online quickly and easily.(Marchyta, 2022) This convenience allows consumers to search for products, compare prices, and make purchases easily, which can shape their preferences towards specific brands and e-commerce platforms.(Byram, 2021) 5. Direct Interaction with Brands Social media allows consumers to interact directly with brands through comments, private messages, or live chat.(Gupta et al., 2021) This allows brands to respond to consumer inquiries, provide customer support, and build closer relationships with their consumers.(Garg, 2021) These direct interactions can shape consumer preferences towards brands that offer good customer service.(Hafiz & Maulida, 2023) 6. Data-Driven Marketing Consumer data collected through online activities can be used to personalize marketing strategies.(Zhou et al., 2022) Brands can identify consumer preferences, purchase behavior, and specific interests to deliver more relevant and engaging

content.(Gwak et al., 2023) This personalization can shape consumer preferences and increase engagement.(Zhu, 2023) PENUTUP 3.1 Conclusion In this research, we identify the critical role of technology and social media in shaping consumer preferences in Indonesia. Rapid changes in consumer behavior and increased digital access have had a significant impact on the way companies interact with consumers and design marketing strategies. Indonesian consumers are now more informed, connected, and trusted by the influence of social media and online recommendations. Therefore, companies must utilize technology and social media wisely to understand and meet consumer preferences, increase engagement, and build strong relationships with customers.

CHAPTER VII “Effective Market Segmentation for Precise Customer Targeting” LITERATUR REVIEW The Essence of Targeting Increasingly tight business competition encourages companies to design strategies that are effective and in line with their goals, so that the company can continue to exist (Nurlita et al., 2021). A quality company is one that strives to maintain its continuity and achieve the best position in the market, not just survive. Therefore, the company not only focuses on attracting new customers, but also makes great efforts to retain existing customers (Ritonga et al., 2023). In this case, targeting reflects decisions made by companies about which customers will be a top priority in planning, communicating, and delivering their offerings, while also determining which customers may not be the main focus (Elizabeth & Ismail, 2021). This is an important step in directing a company's marketing efforts to be more effective and efficient (Kotler et al., 2022) Key Principles of Strategic Targeting The first of the two principles of Strategic Targeting is as follows: Target Compatibility, target suitability reflects the extent to which a company can outperform competitors in meeting the needs of targeted customers, in other words, creating superior customer value (Akgül, 2023). Target compatibility depends on the company's resources and its ability to use those resources effectively to create value for its target customers (Chen et al., 2022). The resources necessary for the success of a company's targeting strategy include factors such as: Business infrastructure, this includes various elements such as manufacturing facilities, customer service, supply chain, and a company's business management culture (Mushi et al., 2023). This involves assets such as factories and production equipment, services such as call centers and customer relationship management, as well as procurement processes related to a company's supply chain (Ma et al., 2021). Have control over scarce resources, this gives a company a competitive advantage because it limits the strategic options available to competitors (Markowitz, 2023). For example, protecting unique natural resources, prime locations in manufacturing and retail, and having a memorable web domain can all great benefits to a company (Rohn et al., 2021). Provide Employee skills, those skilled in technology, operations and business, especially those involved in research and development, education and consulting, are a key resource that is strategically valuable (Astutik & Sulhan, 2022).

Strong brand, can increase value by providing unique identifiers to offers and creating meaningful relationships that deliver higher value than offering attributes (Zulfikar, 2023). Brands have a very important role in industries where products and services compete to have little differentiation and become commodities (Jelsma et al., 2017). Collaborator network, consisting of two types, namely a vertical collaborator network consisting of suppliers and distributors in the company's supply chain, as well as a horizontal collaborator network which includes research and development, manufacturing, and promotional efforts that assist the company in creating products or services and providing information to customers (Ross et al., 2023) . The second principle of Strategic Targeting is Target Attraction, the describes how well a market segment can provide added value to the company (Hu, 2022). Therefore, companies need to carefully select the customers who will be the focus of their offerings based on the extent to which they can contribute to the company's success and help achieve company goals (Kotler et al., 2022) . Target customers can create two types of value for a company: Monetary Value, this is refers to the extent to which a customer segment can contribute to creating profitability for the company (Aureli et al., 2021). This includes the revenue earned from that specific customer segment as well as the costs incurred to provide services to them (Roy’an, M. F., & Rohman, 2021). Strategic value, refers to the intangible benefits that customers provide to the company (Vet et al., 2021). The three main categories of strategic value are social value, scale value, and information value (Höglund et al., 2021). Social value is the influence of customers on other buyers, such as through social networks and the influence of opinion (Lashitew et al., 2022). Companies often target opinion leaders, trendsetters and experts to promote their offerings on social media (Tilson et al., 2022). Scale value is the benefit obtained from the scale of the company's operations (Fahrezi & Sudibyo BO, 2023). Some businesses may target low-margin customers to build market share and future growth, as Uber, Airbnb, Microsoft, eBay, and Facebook do (Boukir et al., 2021). Information value refers to the information provided by customers to the company (Septia et al., 2023). This information is very useful for companies in designing products or services, communicating with customers, and providing added value to other customers who have similar needs (SUNDARI et al., 2023). Communicate Effectively and Convey Offers to Targets According to Djasmin Saladin, marketing communications are activities aimed at disseminating information, influencing and convincing the target audience about the company and its products so that they are willing to accept, buy and become loyal to the products offered by the company (Afidatur Ro’azah, 2021). The function of marketing communication is highly significant in the business world to achieve a company's goals in marketing their products or services (Boukir et al., 2021). Firstly, marketing

communication is used to create consumer awareness of a product or service, involving the use of various communication tools such as advertising, promotions, and social media to make the product or service known to the target market (Kim et al., 2021). Secondly, marketing communication plays a pivotal role in shaping brand image, a praising brand image conveys high value, whereas a negative brand image conveys poor value (Abdul Majeed, 2022). Additionally, marketing communication is also used to educate consumers about the benefits and features of a product or service (NaranjoGuevara et al., 2021). Lastly, marketing communication can be used to influence consumer behavior, such as motivating them to make a purchase or take specific actions (Abzhanova et al., 2022). Therefore, the function of marketing communication plays a crucial role in achieving business objectives and maintaining a positive relationship with consumers (Rawat et al., 2022). To carry out marketing communications effectively, marketers need to understand the nine main elements that are the basis of effective communications: Sender, person or entity who identifies the target audience and develops communication objectives.(Fan et al., 2023) Encoding, the process of changing information or communication objectives into a message that will be conveyed to the recipient of the message(Gursoy et al., 2022). Effective Market Segmentation for Precise Customer Targeting, information or message that will be conveyed to consumers(He et al., 2021). Media, selection of media or communication channels used to convey messages(Wibowo et al., 2021). Decoding, the process of understanding or translating messages received by the recipient of the message through the media, so that the message can be understood according to the purpose of communication(Xu et al., 2021). Message recipient (receiver), the person or entity who receives the message delivered(Mao et al., 2021). Response, the reaction or response given by the message recipient to the message received(Pouresmaeily, 2022). Feedback, an evaluation of the effectiveness of communication, which helps the sender understand the extent to which the message succeeded in achieving its goals(Winstone et al., 2022). Interference (noise), factors or disturbances that can hinder or influence the communication process(Wauthier et al., 2022). Overall, marketing communications is an important tool in building consumers' understanding and awareness of products and companies, and influencing their purchasing decisions (Guven et al., 2022). Consumer Market Segmentation

Consumer market segmentation divides the market into clear parts. A market segment consists of a group of consumers with similar needs and/or profile characteristics, common types of segmentation are demographic, geographic, behavioral, and psychographic (Rozhko, 2023). We will discuss these types of segments in the next section. Demographic Distribution, one of the reasons why variables such as age, family size, family life cycle, gender, income, occupation, education, religion, race, generation, nationality and social class are so popular among society, is because these variables are related to society's needs and also easy to measure (Behl et al., 2022). Geographic Segment, geographic segmentation divides markets into geographic units such as countries, states, regions, counties, cities, or neighborhoods. In this way, companies can tailor their marketing programs to the needs and wants of local customer groups in their service areas and neighborhoods (Kamble & Kounte, 2021). Distribution of behavior, in behavioral segmentation, marketers divide buyers into groups based on their actions (Sánchez-Pérez et al., 2021). Many marketers find that user variables (user status, usage, buyer readiness stage, loyalty status, and opportunity) are a good starting point for creating market segments (F. Wang, 2023). Psychological Segmentation, in psychographic segmentation, buyers are divided into groups based on psychological characteristics, lifestyle, or values (Durst et al., 2021). Psychographic segmentation is important because consumers' demographic, geographic, and behavioral characteristics do not always accurately reflect their underlying needs. For example, people in the same demographic group may have very different psychographic characteristics (Kondrysova et al., 2022). Business Market Segmentation Market segmentation policies must be carried out taking into account certain criteria (H. J. Wang, 2022). Although this segmentation will vary between industrial products and consumer products, in general any changes will divide the market based on (Peng, 2023): Segmentation by Geographic, the market is divided based on geographical locations such as countries, provinces, districts, cities, villages, etc. The company will operate in all these segments, but pay attention to differences in needs and preferences in each region (Arslan et al., 2021). Segmentation by Demographics, this market segmentation can be done by separating the market into groups based on demographic variables such as age, gender, number of family members, income, religion, education, employment, etc(Lee et al., 2021). Segmentation based on Psychographics, this market segmentation is carried out by dividing consumers into different groups based on social class, lifestyle, personality characteristics, purchasing motives, and others (Kuesten et al., 2022). CONCLUSION In marketing strategy, it is crucial to identify the right market segments and suitable target customers. This involves a deep understanding of consumer preferences and needs

within specific segments, as well as the ability to attract and retain customers within those segments. In this way, companies can develop more effective marketing strategies, optimize resource allocation, and achieve their business objectives more effectively. Identifying the right market segments and target customers is a critical step in achieving success in the business world.

CHAPTER VIII Building Better Customer Relationships: Crafting Profitable Value Proposition and Positioning LITERATUR REVIEW 1. Creating a Value Proposition and Positoning 1. Creating a Value Proposition The proposition of value for the customer is one way to meet customer needs and expectations and as a differentiator between one company and another (Marcelo Borja-Galeas & Arias-Flores, 2022). Changing customer needs and expectations mean that the customer value proposition must also be able to keep up with these changes (Reffad & Alti, 2023). A customer value proposition is a characteristic or special feature of a product or service that a company offers to customers to meet their needs and expectations (Bischoff et al., 2023). Customers have the opportunity to make choices(Lund-Durlacher & Gössling, 2021). Customers select the offers they believe offer the most value and act on those offers (Gavilán et al., 2022). Whether the offer meets expectations influences customer contentment and the probability of the customer making a repeat purchase of the product (Supriyanto et al., 2021). Depending on based on the requirements of the customers, an offering can generate value (Lewisch & Riefler, 2023). Functional value represents the advantages and expenses that are directly connected to the performance of an offeringn(Talonen et al., 2023). The offering that generates functional value includes performance, reliability, durability, compatibility, ease of use, customization, shape, style, and packaging (F. Zhan et al., 2023). 2. Develop Positioning Strategy Positioning involves the process of shaping a company's product or brand and its perception in a way that establishes a unique and distinct position in the minds of the intended audience(Gillberg & Wikström, 2021). The objective is to establish a strong presence of the brand in consumers' minds to optimize the potential advantages for the company (Masri et al., 2023). Unlike a value proposition that outlines the full range of benefits and costs provided, this positioning does not center on the primary advantages that would motivate consumers to select a company's offering (Nithya, 2023). Successful positioning assists in shaping marketing strategies by elucidating the core of the brand, recognizing the objectives consumers aim for, and demonstrating the distinct methods through which consumers achieve them. It is imperative for every member of the organization to grasp and incorporate brand positioning as a backdrop for decision-making (Supeková et al., 2023).

Figure 1. Positioning Process Positioning process The main steps in the positioning process can be explained in Figure 1 (Semenova, 2023). Position can be the center of consumer perception and decision making (Napisah, 2022). The goal of a positioning strategy is to differentiate a product from its competitors are evaluated in terms of their features or advantages, which are weighed against the preferences and needs of the target market (Kethüda, 2023). The concept of positioning can take on functional, symbolic, or experiential dimensions (Ogilvie et al., 2022). A positioning strategy will prompt the company to make decisions regarding the extent of differentiation and the specific elements to highlight in its marketing efforts, considering factors such as the chosen target market, available resources, company performance benchmarks, and competitive landscape (Gandhy & Hairuddin, 2018). The product brand frequently takes center stage in a positioning strategy, helping to distinguish a particular brand from its competitors. It steers the positioning strategy away from mere functional and experiential aspects. The brand serves as a dynamic symbol that consumers build trust in over time and acts as an intangible indicator of product quality (Alzate et al., 2022). The effectiveness of positioning can be successful if the company is able to obtain cost advantages, value advantages, and management performance expectations (Mogaji et al., 2023). 2.2 Choosing a Frame of Reference Consumers gauge the worth of a product in relation to the criteria employed to assess it evaluate the product's benefits and costs (Chen & Zhang, 2023). An offer may be considered attractive compared to a lower but similar offer may be considered unattractive compared to a premium service (Chadwick & Voorhees, 2022). Similarly, the frame of reference serves as a point of comparison through which customers can assess the advantages offered by a company's services (Canizales, 2023). While consumers naturally form a reference point for assessing available choices, a proficient marketer can intentionally shape this reference point to accentuate the product's value (Spray et al., 2023). Decisions regarding the terms of reference are intricately connected to choices made about the target market (Yeşilkaya & Çabuk, 2023). Selecting a specific consumer group to focus on can influence the competitive landscape, this may occur due to a company's historical or future decision to target that segment or because consumers within that segment may be seeking a particular product or brand when making purchasing choices (Ahmadi et al., 2023). 2.3 Identifying Potential Points of Difference and Points of Parity 2.3.1 Identifying Points of Difference Points of Difference (PODs) are characteristics or advantages that set a company's products apart from those offered by its rivals (Aruan & Felicia, 2019). It is a characteristic or advantage

that consumers strongly link to a brand in a positive manner, and they perceive that the brand surpasses competing brands at that particular level (Chou et al., 2023). Establishing robust, lucrative, and distinctive connections is a significant challenge, yet it is indispensable for achieving a competitive brand positioning (Rua & Santos, 2022). Three criteria exist to ascertain whether a brand association can genuinely function as a distinguishing factor (Gorin et al., 2022). The first desired by consumers, consumers should view brand associations as personally relevant to them(Wolf et al., 2022). Select Comfort gained attention in the mattress industry by introducing its Sleep Number bed, enabling customers to tailor the mattress's support and fit for maximum comfort using a straightforward numeric scale (Mitragotri et al., 2023). Consumers should be provided with convincing rationales to believe and comprehend why the brand is capable of delivering the sought-after advantages (Hoover et al., 2023). The second aspect, which is delivered by the company, necessitates that the company possess the internal capabilities and dedication to establish and sustain brand associations in a sustainable and lucrative fashion within consumers' perceptions (Sajadi & Santos, 2021). The perfect brand association is proactive, secure, and resistant to challenges(Saridakis et al., 2023). Market leaders like ADM, Visa, and SAP often find it simpler to uphold their position due to their track record of tangible product or service performance. In contrast, market leaders such as Fendi, Prada, and Hermès, who rely on fashion for their positioning, face greater vulnerability since fashion trends are more capricious and influenced by market preferences(Khan & Rabbani, 2021). 2.3.2 Identifying Parity Points Points of parity (POPs) refer to connections related to attributes or advantages that might not be distinctively exclusive to a particular brand but can be shared jointly with other brands. These associations typically come in three fundamental forms: categorical, correlational, and competitive (Z. Zhan et al., 2023). Category parity points are characteristics or advantages that consumers deem essential for a legitimate and trustworthy offering within a specific product or service category (Franks et al., 2022). In simpler terms, these points serve as a crucial, yet not standalone, factor for brand selection. For instance, consumers might not perceive an entity as a genuine travel agent unless the agent can handle airline and hotel bookings, offer guidance on vacation packages, and present diverse payment and ticket delivery alternatives(Ngo et al., 2022). Correlational points highlight the potential for a negative connection to emerge as a result of the presence of a positive association with the brand (Gong et al., 2023). A difficulty for marketers is that several of the characteristics or advantages that constitute their Points of Parity (POPs) or Points of Difference (PODs) exhibit an inverse relationship (Arican & Kiymaz, 2022). To put it differently, when your brand excels in one aspect, such as offering low prices, consumers might not perceive it as excelling in another aspect, like being associated with "highest quality." Investigating the choices consumers make in their buying decisions through consumer research can provide valuable insights in this regard(Arican & Kiymaz, 2022). Competitive parity points refer to associations created to counteract perceived brand shortcomings compared to competitors' unique characteristics (Bature et al., 2022). A method to identify points of competitive balance is to simulate the positions of competitors and deduce the anticipated areas of differentiation (Gao et al., 2021). 2.4 Creating a Sustainable Competitive Advantage

Competitive advantage is the degree to which an organization can establish a position that can be defended against its competitors (Cahyono et al., 2023). This encompasses the capacity to produce additional value or a distinctive edge in a particular industry or market that is challenging for competitors to replicate (Jawabreh et al., 2022). Competitive advantages can originate from a range of elements, including product innovation, streamlined operations, a robust brand, the availability of scarce resources, or extensive customer connections (Aithal, 2023). Organizations capable of establishing and maintaining a robust competitive advantage typically find greater success in retaining their market share and attaining long-term prosperity in their business (Barakat et al., 2023). To establish robust brands and evade becoming commoditized, marketers should begin with the conviction that distinguishing their offerings can lead to the development of a lasting competitive edge (Rego et al., 2022). Competitive advantage refers to a company's capacity to excel in certain aspects or areas that its competitors either cannot replicate or choose not to match. (Jingdong et al., 2023). In a highly competitive business environment, companies must possess the capability to distinguish their products in order to gain a competitive edge and achieve superiority in the competition (Kosutic & Pigni, 2022). Products must possess key characteristics that capture the attention of consumers and make them stand out as special products (Lina, 2022). Competitive superiority involves a unique position that a company has developed when facing competitors, and it might enable the company to consistently outperform them (Permatasari et al., 2023). The most instinctive approach to gaining a competitive edge is to distinguish meaningful attributes for customers (Sinta et al., n.d.). Nonetheless, achieving this is often challenging because as products in a category continue to enhance their overall performance, they tend to become more alike (Antonio et al., 2023). Then introducing new attributes, the company can differentiate its offering by bringing in features that its competitors have not yet incorporated, rather than solely focusing on enhancing performance based on existing attributes (Buccieri et al., 2023). Introducing a novel characteristic doesn't necessarily entail the identification of entirely groundbreaking features. It can also involve modifying existing features, some of which might have been disregarded by competitors (Belezas & Daniel, 2023). A potent foundation for maintaining a lasting competitive edge is a strong brand that offers customers convincing motives to opt for the company's products or services (Supiyandi et al., 2022). In addition to instilling confidence in customers regarding its offerings, a strong brand can actually shape customer behavior by becoming the first choice that comes to mind when they seek to fulfill specific needs (Rather et al., 2022).

CLOSING 1. Conclusion This article highlights the importance of building better customer relationships as a crucial initiative in the business world. To achieve this goal, companies are working to strengthen their bonds with customers through various actions such as improving customer service, listening to customer feedback, providing more personalized solutions, and creating a positive customer experience. These efforts aim to generate stronger customer loyalty, increase customer retention, and achieve sustainable growth by understanding and meeting customer needs. One way to achieve this is by developing a Value Proposition and Profitable Positioning.