The definition of the marketing mix according to Philip Kotler (2008:85) is "The controlled variables are coupled marketing company to produce the desired response in the target markets (target market)". According Lupiyoadi Creep (2001) marketing mix 4Ps covering products goods, namely: product, price, place, and promotion, while for the service plus three more elements, namely: people, process, and customer service.
The addition of these three things because of the relationship with nature that service intangibility, inseparability, perishability, and variability. So the elements of the marketing mix of products is as follows:
1) Product
The product is the whole concept of objects that provide a benefit value to consumers. In purchasing products, consumers not only buy the physical alone, but buying benefits and value of these products. Decisions about product offerings include the determination of shape physically, brands, packaging, warranty and service after the sale. Product development can be done after analyzing the needs and desires pasamya. If this problem has been resolved, then the decision-making regarding, pricing, distribution and promotion can be taken.
2) Price
Definition of prices according to Basu Swastha and Irawan (2001:241) is "The amount of money (plus some products that may be) required to obtain a combination of products and services." Prices can also be viewed as the exchange of money for something. Something that may be either physical in various stages of completion and or without support services or no quality assurance and so on, or it can also be a pure service. Determination of the exact price will affect the company's success in marketing the product. Price. is the only element of the marketing mix that provides income for the company.
At any goods or services offered, then the marketing department right to determine the basic price. Factors to consider in pricing, among other costs, profit, competition practices, and changes in market demand. Pricing policy also involves determining the amount of discount, mark up, and so on.
Price plays an important role in the marketing mix, because the pricing gives business income. Pricing decisions will determine the value for the customer and plays a critical role in forming the image for the product as well as play a consumer's decision to buy.
3) Place / Distribution
If the factor of the product and the price of the product is determined by either the next stage is the decision about the distribution. There are three main aspects related to decision-making about the distribution of (place / location). Aspects are:
a) The company's transportation system
Included in the transport system, among others, decisions regarding the selection of transportation equipment, determining the delivery schedule, the determination of the route that must be taken and so on.
b) storage systems.
The storage system includes determining the location of the warehouse, the type of equipment used to handle material and other equipment.
c) The selection of distribution channels.
Selection of decision-making concerning the distribution channel of distributors (wholesalers, retailers, agents, brokers) and how to establish good cooperation with the dealer.
Place according to Philip Kotler (2008) "covers the activities of the company to provide products for the consumer target." Activities of these companies to enable customers in finding the desired product.
4) Promotion
Promotion according to Basu Swastha and Irawan (2001) are:
a) The information flow in one direction or persuasion are made to direct a person or organization to act that created the exchange in marketing.
b) All types of marketing activities aimed at stimulating demand. Promotion is also a means to attract and retain customers.
The types of promotional tools that can be used in the company in promoting its products, namely:
a) Advertising
The role of advertising in marketing is to increase consumer knowledge of products, to persuade consumers to buy and differentiate the product from other product offerings. This advertising can be done with the installation of banners, distributing brochures, promotions through television, magazines, radio, and newspapers.
b) Personal Selling
Personal Selling have an important role in marketing because most consumers lack a sufficient knowledge of the product. With the personal penjulan, then sales may convince consumers to buy products.
c) Sales Promotion
Sales promotion is often done by companies such as: gift-giving calendar issued by the company, key chains, stationery all with the symbol of the company concerned. Sales promotions can also be a provision of shopping vouchers, lottery, sale or discount program product.
d) Public Relations (PR)
Public relations is a planned and sustained effort to establish and maintain good will between an organization and its publics. The forms of public relations can do is press conferences, seminars, and sponsorships.
e) Communication from the Mouth to Mouth (Word of Mouth / WOM)
Word of mouth plays an important role in the promotion. Consumers will typically inform the user of the product to prospective customers / consumers of other products of their experiences, both about the advantages or disadvantages of products they use.
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