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One of elements of marketing mix is promotion. The rest is product, price and place. Producers have to consider all of elements of marketing mix to meet business objectives. One element strengthens each other. Promotion makes consumers know about the products whether goods or services. Promotion also concerns to the existing product when it enters new market. Promotion also applies to the new product to be sold whether in the existing market or new market.

There are some forms of promotion.
a. Advertisement
b. Promotion
c. Personal selling
d. Public relation
e. Customer service

There are some aims of promotion.
a. To increase sales of existing product
b. To increase market share of existing product
c. To introduce the new product to the existing market
d. To expand the new product to the new market
e. To accrue either product or company image
f. To accrue profit

Explanation.

a. Advertisement

There are some processes of advertising.
1. Set objective
2. Determine the advertising budget
3. Determine the campaign activity
4. Determine the media of advertising
5. Evaluate the effectiveness of advertising

There are some types of advertising.
1. Informative advertising
The main objective of this advertisement is giving full information about the product.
2. Persuasive advertising
The main objective of this advertisement is persuading either consumers or target audiences to buy the product. Target audience is people who are proposed to buy the product.

There is one model that is called AIDA Model to promote product. AIDA Model is abbreviation of Attention, Interest, Desire and Action.
1. Attention. How to make consumers aware with the product.
2. Interest. How to make consumers interested with the product.
3. Desire. How to make consumers want to buy the product.
4. Action. How to make consumers have bought the product.

Producers have to pay attention with the media that is used. Every advertising media has both advantages and disadvantages. Producers have to concern with the objective of advertising. Here some of media advertising.
1. Television
2. Radio
3. Newspaper
4. Leaflet
5. Internet
6. Poster
7. Neon light

b. Promotion

There are some types of promotion.
1. Price reduction. Consumers have discount for the next product that they buy. Seller might give 50% discount for the second good that consumers buy.
2. Gift. Consumers need to collect the coupon and then exchange to get present from the seller.
3. Competition. Seller gives present to the consumers by following competition. Consumers might get present if they win.
4. Point of sales display and demonstration. Company chooses certain shops to sell its product. Apple has AppStore to be place to sell its product.
5. After-sales service. It occurred sometime when costumers bought product but then they were unsatisfied with the product whether it was broken or different sort. If the product is broken consumer needs to go to shop and repairs the product. It is no cost for consumer. When the product is distinction with what consumer ordered than it needs to be exchanged.
6. Free sample. Producer when launch new product will give to consumer to try the new product. Might be in the market and usually for daily product such as drink, bread and etc.

c. Personal selling

At most company sells product based on its expectation. It happened when Cigarette Company sent ‘sales promotion girl’ directly to consumers to persuade them buy cigarette. Insurance company does also by sending ‘person’ to give explanation to consumers both other companies and individual.

d. Public relation

The objective is making good image of company in consumers mind. In practise public relation is giving sponsorship to particular events such as cigarette company supports sport events to shape image that cigarette company care to human health.

e. Customer service

Customer service could be done in some ways such as
a. Giving advice to consumers based on their need
b. Giving free sending service to consumers
c. Giving credit facilities to consumers so hopefully every consumer can afford it.
d. Giving after-sales service if there is imperfect product

Nowadays are common for businesses to allocate some money from their profit as a part of responsibility activity to society, employees and environment. Business also gets recognition from society by holding this activity

Public limited company also has some drawbacks such as shares’ price is sensitive to external issue rather than company’s performance, less secrecy due to company must report to general public for its financial statement, otherwise shareholders may lose their money of share price fluctuation.

In businesses are well known that there are six pricing strategies applied. A business might use all pricing strategies by considering usefulness of each pricing strategies. Let us discuss them one by one.

Cost-plus pricing
Price of product is determined by calculating cost of production each item and added with percentage of profit expected. Example: cost of production for making 100 chocolate bars is $100. Producer expects to get 10%. Calculating the selling price each chocolate bar! By using formula “cost of production divided by total production times 10%” will be get selling price of the product is $1.1.

Penetration pricing
Penetration pricing is used when the new product tries to enter market. The price is set lower than competitors’ price. Example: existing products are sold at average price of $10-$12. By using penetration pricing, new product is sold at $8. The lower price wishes attracting consumers’ attention to buy this product.

Price skimming
Opposite of penetration pricing, producer is charging higher price than competitors’ brands due to novelty factor. This product is new invention in the certain industry. Example: iPad’s Apple is new invention in gadget industry. Cost of this product is only $10 but the selling price is $400. There are no competitors for this product at the time.

Competitive pricing
Price of product is set in line or just lower than existing products. Example: the new product by using penetration pricing could use “competitive pricing” after has certain market share that has been expected. Product by using price skimming will being consider to lower its price due to there are many new competitors are entering market. To maintain exists consumers that already loyal.

Promotional pricing
Price of the product is set lower than competitors’ price for short time. Example: to sell unsold product, producers use this pricing strategy to get rid stock. Producer gives 50% discount for two days only or by giving promotion “buy two, get one free”.

Psychological pricing
Producer is charging unique price to make consumer attracted. The price can be higher or lower than competitors’ price. Higher price will reflect as a status symbol for high income consumer. Lower price in daily product will reflect value-money for consumers. Producer can also use $99 than $100 to charge product price.

There are some forms of organisation in businesses. Firstly, form of business organisation is sole trader. This company is owned and controlled only by one person. This is common businesses in all over countries in the world. In developing countries such as Indonesia there are many companies formed sole trader. Some advantages of sole trader become most consideration why people are choosing this business. That are easy setting up the business due to few legal requirement even in Indonesia there is legal requirement to build the business but practically person who wants to set up this business does not fulfil the government’s legal requirement. Another advantages are the owner becomes the only boss, keeping all the profit that company got, owner decides work-time or holiday and policy for company also secrecy of the business.

Some disadvantages are most likely for big-size business such as national or multinational businesses choosing another form rather than sole trader. That are unlimited liability because there is no separated legal identity, there is no person to discuss with and there is limited capital to expand the business so that a company remains small-size.



Secondly, form of business organisation is partnership. Definitely partnership is a group or association of people consist of 2 to 20 people which own and control the business. Some advantages of partnership are more capital to invest, sharing skill to run and expand the business, there is much more motivation among the partners to show their performances and few legal requirements. Partnership also has disadvantages such as sole trader that has unlimited liability. Another disadvantage are the owners have to share profit, to become barrier among the owners to run business if there is disagreement, dishonest might rise among the owners and less secrecy rather than sole trader.                

Sole trader and partnership have unlimited liability that means the owner must responsible with the debt that company has even to sell their personal possession to pay all the company’s liabilities. In law there is no separated legal identity between the owner and the company.

An example case is Gita as an entrepreneur has shoe-shop. Name of her company is Gita Shop. Gita was built her company since she was in college on 2010. She was taking design major in her university. Her company is expressing her potential and skill. Her company is growing a day to day so that Gita needs more capital and partner to discuss with her. Finally, Gita has agreed with Wirjawan that graduated from accountancy major. They are now becoming partner and the shop is already becoming partnership. They share responsibility to run the shop. They also share capital, risk and profit. Gita always discusses with Wirjawan every decision related the company. Their company is growing and expanding to add other branches.

This written is dedicated for people who call their name is TEACHER.

I could not imagine when I was child my parent did not send me to school for learning. I might be a bagger or be a farmer because I was born in village? Or I already married with three children because as a villager I would think that children are asset for me to protect me when I am getting old.

These questions make me realise and proud to all my teachers in my life, especially my primary teachers. I still remember their name even to figure out their face at the time. First teacher in my life was Ibu Siti when I was one grader. One day she gave homework to one grader. That was to write down our full name as many as ten times. Unfortunately I could not finish my job. So she wrote for me my name based on her imagination. I have had name Deccy Supriyanto that I was using up to sixth grade. Finally before I registered for National Examination, my sixth grade teacher was correcting my name based on certificate of birth. My correct name is Deky Suprianto. This incident is not making me less proud to Ibu Siti. You were the first person to recognising me sentence
“Ini Ibu Budi”
“Ini Bapak Budi”
“...............”
You may guess the next sentences are about Budi’s family. That sentences are still using for one grader nowadays? I do not know. Primary teacher should answer this question. Pak Rali, Ibu Parni, Ibu Indri, Ibu Diah, Ibu Isworo respectively all my primary teacher second grade until sixth grade. I am proud of you Ibu and Bapak Guru.

Amazingly teacher is my profession now. After graduated from education major, to be a teacher is my choice. Teacher is not second choice after I have been rejected in other professions. In the past teacher was the second or third choice after rejected in other places. But nowadays teacher is the first choice after government gave incentive for certified teacher.

Teacher, we should remember that in the past you insisted to government to increase your welfare. You blamed that because of salary was not sufficient you could not give your best to your students. But after government gave good salary, you get also regional incentive and certified teachers get certified incentive, you still cannot increase your performance to increasing students’ achievement. Your welfare just makes congestion in the street with your new car. This has to be question for us as a teacher.  

As a teacher we shall remember the story after Japan lost in second world-war. Japan’s emperor was looking for the rest teacher to start build his country. He did not ask how many doctors or engineers or entrepreneurs still alive but he asked how many teachers still alive. So be proud to our teacher and be proud because we are teacher.

• By income/social status
• By region
• By gender
• By age
• By lifestyle
• By use of product

• Sales: Sales department has responsibility to set up target of sales.
• Research and development: This department has job to do research for predicting future consumers’ requirement.
• Promotion: This department ensure that strategy has been applying increase product selling. For example by strategy buy 1 get 2.
• Distribution: By distributing in the right place of product makes customer more easily to obtain product.

• Helping to create profit
• Fulfilling current consumers’ requirement
• Predicting future consumers’ requirement
• Providing product to customers

• Increasing sales to obtain more profit
• Increasing market share of product
• Maintaining market share of product
• Developing new market of product
• Creating market share of new product 
• Increasing brand image of product