Turkish Journal of Computer and Mathematics Education Vol.12 No.3 (2021), 1778-1784
Research Article
1778
The Utilization Of Digital Marketing Facing New Normals And New Consumer
Behaviors In The Covid 19 Pandemic For Conventional Business Players (Umkm) In
Indonesia
R. Rosaleh Laksono
1roosaleh.laksono@widyatama.ac.id
Article History: Received: 10 January 2021; Revised: 12 February 2021; Accepted: 27 March 2021; Published online: 20 April 2021
Abstract:One of the problems with the low competitiveness of traditional business actors (UMKM) is the limited ability of
business actors in marketing. This study aims to provide knowledge of marketing strategies by utilizing information technology through digital marketing in helping the economics of macro, small and medium enterprises (UMKM) in the era of the COVID-19 pandemic. Bandung district, West Java province. Besides, this study aims to optimize the micro, small, and medium business group of garment and sponge sandals which are constrained by marketing and sales as well as the impact of the pandemic Corona Virus Disease (Covid-19). Helping to increase the marginal profit of their business by expanding (expansion) marketing and sales via virtual online. The role of marketing today is not only to deliver the product or service to the hands of consumers but also how the product or service can provide satisfaction to customers by generating profit. Apart from having a role, marketing also has goals related to long-term marketing goals. The goal of marketing is to attract new customers by promising superior value, set attractive prices, distribute products easily, promote effectively and retain existing customers while maintaining the principles of customer satisfaction. Currently, the marketing of a product is supported by internet technology which can expand marketing so that it is expected to be able to reach the widest possible consumer by increasing marginal profit and reducing operational costs so that it can provide competitive prices.
Keywords : UMKM, Digital Marketing
1. Introduction
The use of information technology to carry out business activities is currently growing and many benefits and advantages can be obtained from the producer side. As an entrepreneur, he has a large enough opportunity to develop a business venture, including increasing market share (market expansion) through the use of the internet (digital marketing) so that this can attract as many consumers as possible which has an impact on increasing the marginal profit. Besides, the use of internet technology to do marketing which is called digital marketing can increase efficiency (low cost) where operational costs and production costs can be reduced or reduced so that it can provide competitive prices in the market and can improve services by delivering goods that consumers buy through delivery orders. Digital marketing is very appropriate to be applied and carried out during the Covid-19 pandemic, where people are increasingly avoiding making direct contact at a comfortable place to buy something they need. In digital marketing, the definition of a market is no longer relevant where buyers and sellers do not have to meet each other directly.
The marketing system that is still conventional for conventional business actors (UMKM) is an obstacle for them in expanding the product market amidst the social restriction policies (COVID-19 pandemic) that are being implemented by the government. The policy taken by the government was that many micro, small, and medium enterprises experienced a decline in their income.
However, unfortunately, these advantages and benefits are mostly not responded to well, especially by conventional business actors which in Indonesia are called Micro, Small and Medium Enterprises (UMKM). Many of them do not participate in making changes and experience a decrease in turnover. The digital era, which should be an opportunity, is a threat to them. For that, we need a step of change, one of which is through a business strategy.
The phenomenon of disease outbreaks caused by the Covid-19 virus since 2020 has hit almost all over the world, including in Indonesia. This hurts all fields, especially the economy and business. One of the business fields, namely the small and medium business sector as experienced by the home industry above, they complain that their income has decreased drastically. This situation was exacerbated when the government took steps by implementing a policy of social distancing, physical distancing to large-scale social restrictions.
Departing from the problems that are being faced by small and medium entrepreneurs (UMKM), it is necessary to take a solution to solve these series of problems, namely by providing training and assistance for garment and sponge sandal business managers by providing Digital Marketing training, namely sales and marketing using
Turkish Journal of Computer and Mathematics Education Vol.12 No.3 (2021), 584-618
Research Article
1779
features Digital Marketing through the use of social media and marketplaces as well as creating websites for conventional business actors (UMKM) in the Sukajadi village, Soreang sub-district, Bandung regency as the object of research. Based on the description above, the following problems can be identified:1. There has been a shift in marketing trends from conventional (offline) to online digital marketing. 2. The number of business actors, especially UMKM, who are conventional business actors in Indonesia, do not take advantage of digital marketing, which is an opportunity to increase market share.
3. There are still very few UMKM players who use information technology, especially online businesses. Many of these still do not understand how to do digital marketing by utilizing on-line businesses, market places, e-commerce, and other social media.
The purpose of this research is to provide motivation and provide views so that conventional UMKM business actors with business strategies with the use of digital marketing can survive during the COVID-19 pandemic so that it is no longer a threat but an opportunity that is expected to be the outcome. Can increase turnover and marginal profit.
Also, the purpose of this research is to determine the extent of knowledge and understanding of MSME actors, especially in the Sukajadi village, afternoon, and district, Bandung regency (West Java) regarding the importance of digital marketing for their business today and in the Covid-19 pandemic. And the extent to which the ability of UMKM players in implementing digital marketing by utilizing internet technology can provide benefits and costs for their business.
2. Literature review
2.1 Micro Small and Medium Enterprises (UMKM)
The existence of UMKM is very important for the pace of the Indonesian economy. Micro, Small, and Medium
Enterprises (UMKM) in Indonesia are some of the main drivers of the economy. So it is not surprising that if the UMKM sector is disrupted, the national economy will also be disrupted. Therefore, UMKM needs special attention, because UMKM is the largest contributor to GDP in Indonesia and is a mainstay in absorbing unemployment, substituting the production of consumer goods, substituting the production of consumer goods, or semi-finished goods. The definition of UMKM is the business scale of all business actors in Indonesia, it is regulated in Law number 20 of 2008.
Table 1. Classification of MSME Criteria Based on Assets and Annual Turnover
No.
UMKM
Criteria for
Asset Turnover
1. Micro Business Max. 50 Billion Max 300 Million
2. Small Business > 50 Billion-500 Billion > 300 Billion - 2.5 quintillion 3. Medium Business 500 Billion - 10 Billion > 2.5 quintillion - 50 quintillion
This includes the criteria for a micro business is a business that has a net worth of IDR 50,000 .000, - excluding buildings and land where the business is located. The maximum annual sales yield of micro-businesses is IDR 300,000,000. - Small businesses are productive economic enterprises that are independent, either owned by individuals or groups and not as a branch business entity of the main company. Controlled and owned as well as being part of both directly and indirectly from medium-sized enterprises.
The criteria for a small business are businesses that have a net worth of IDR 50,000,000 with a maximum amount of IDR 500,000,000 needed. Annual sales revenue ranges from IDR 300,000,000 to a maximum of IDR 2,500,000,000.
Meanwhile, medium-sized enterprises are businesses in a productive economy and are not a branch or subsidiary of a central company and are a direct or indirect part of a small or large business with total net assets as regulated by statutory regulations. Medium-sized businesses are often categorized as large businesses with the criteria that the net worth owned by the business owner reaches more than IDR 500,000,000 to IDR 10,000,000,000 and does not include buildings and land where the business is held. Annual sales revenue reaches IDR 2.5 billion to IDR 50 billion, (source: Wikipedia)
Turkish Journal of Computer and Mathematics Education Vol.12 No.3 (2021), 584-618
Research Article
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2.2 Digital MarketingMarketing is a managerial process that makes individuals or groups get what they want by creating, offering, and exchanging products of value to other parties or all activities related to the delivery of products from producers to consumers (Sudarsono in Barkah Susanto CS, 2020).
Today, the world of information technology moves so fast that each change accelerates the next change. It becomes important in such an environment to have a baseline and reference points to help marketers find their way forward. Marketing 4.0 offers new knowledge that will be a valuable starting point and resource for anyone trying to create and understand the digital and mobile future. (Howard Tullman).
Digital technology has changed the way humans communicate, act and make decisions. Marketing activities cannot be separated from the influence of digital technology.
The term digital-based marketing and the application and use of information technology and the internet are called digital marketing. Digital marketing is a marketing activity that utilizes the internet and various information technologies to expand the market and increase sales volume (Juliana et al. In Barkah Susanto CS, 2020). Digital marketing is a more prospective strategy because it allows potential customers to get all kinds of information about products and make transactions via the internet (Purwana ES et al. Barkah Susanto CS, 2017). The definition of digital marketing according to the American Marketing Association (AMA) is activities, institutions, and processes that are facilitated by digital technology in creating, communicating, and conveying values to consumers and other interested parties (Kannan & Hongshuang in Dedi Purwana ES. Cs, 2016).
With this term, there is marketing 4.0. Understanding marketing 4.0 is a marketing approach that combines interactions online and offline that occur between entrepreneurs and their customers. Digital marketing is not intended to replace traditional (offline) marketing, but the two can go hand in hand and complement each other.
In the era of information technology like today where marketing activities are not sufficient to be carried out offline. However, marketing efforts with an approach are also needed online so that consumers really get satisfactory service for their services or products and most importantly be able to expand market share with the use of the internet (no limits, no boundaries) which in turn can increase profit margins in the middle. the covid-19 pandemic. The concept of marketing 4.0, digital marketing can be described by Philip Kotler as follows:
Source: Philips Kotler, Hermawan K., Iwan S.
Figure 1. Optimizing the Exchange of Roles between Traditional Marketing and Digital Marketing
In digital marketing where the concept of segmentation and targeting in marketing has changed to 'Customer Community Confirmation'. The process of traditional marketing begins with segmentation, wherein the market is homogeneously grouped based on geographic, demographic, or psychographic attributes. Then comes targeting which essentially means determining which segment (s) to serve, based on various factors including size, attractiveness, and growth potential, among others. (Philip Kotler, Hermawan, 2017).
Turkish Journal of Computer and Mathematics Education Vol.12 No.3 (2021), 584-618
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Source: Philips Kotler, Hermawan K., Iwan S Figure: Traditional Marketing Vs Digital Marketing
The essence of Marketing in the image above is to recognize the shift in the role of traditional and digital marketing in building customer engagement and advocacy.
Several researchers have studied and attempted to provide input for the development of UMKM in Indonesia. One way to develop a home industry (UMKM) in Indonesia, in general, is through a digital marketing strategy. Digital marketing is considered a solution
Business during the Covid-19 pandemic is deemed appropriate to be implemented. The media used in digital marketing are information technology and the internet. We know that the internet is a global computer network whose coverage is almost all over the world without borders and countries and without barriers (no limit no boundaries) so that this can be used to introduce company profiles and at the same time market the products they produce. There are several advantages to the use of information technology and the internet through digital marketing, including:
·
Efficient and effective
Whereby marketing and selling products with digital marketing can expand market share that can penetrate the global market (global marketing), this provides an opportunity to be able to capture the widest possible consumer so that the opportunity to sell their products as many -the number can be achieved so that the marginal profit can increase. In addition, it can reduce operational costs more efficiently (low cost), they do not need to rent or build buildings (shops), can reduce employees, save electricity. This allows producers to provide more competitive prices and be able to compete in the global market. In other words, theoretically, marketing efficiency can be found by calculating the ratio of "output-input" in the marketing activities carried out. The higher the output-input ratio value, the more efficient the marketing will be.
·
Increase Marginal Profit.
As explained above with digital marketing implementation, will increase marginal profit due to increased revenue volume by expanding market share through internet media (e-commerce, online business, the marketplace, social media) while the total cost decreases due to efficiency (low cost).
·
Improving Services
Digital marketing carried out by small business actors can provide improved services during the CORVID pandemic where consumers do not need to have to come to the market or shop to avoid exposure to the corvid virus so that the market does not need to meet buyers and sellers besides producers can send goods purchased by consumers through a courier service or delivery order.
Electronic Commerce (E-Commerce) is the implementation of commerce in the form of sales, purchase, ordering, payment, or promotion of a product, goods, and/or services made by utilizing computers and electronic communication facilities digital or data telecommunications. In addition, this form of commerce can also be done globally, namely by using the internet network (Kuswiratmo in Helmalia 2016: 163). e-commerce is a process of buying and selling products electronically by consumers and from company to company with computers as an intermediary for business transactions (Kenneth Laudon, 2016).
Turkish Journal of Computer and Mathematics Education Vol.12 No.3 (2021), 584-618
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Source: https://www.slideshare.net/wearesocialsg/digital-in-2017-southeast-asia
The picture above shows global E-Commerce revenue. The number of people who make purchases through commerce is 1.61 billion, the number of buyers from the total population is 22%, the total value of the global e-commerce market in 2016 is $ 1.915 trillion, the average per year purchase value per user is $ 1.189.
Marketplace, which is buying and selling products through on-line applications, which has the same concept as conventional markets where many sellers sell their merchandise from various products on-line, but market place owners only provide a place for sellers who want to sell and help them to meet customers and make online transactions simpler and easier. Apart from that, it can provide convenience and comfort to both business actors and customers.
Source: https://www.slideshare.net/wearesocialsg/digital-in-2017-southeast-asia
The picture above shows the number of social media users in Indonesia, namely the total number of users using social media is 106.0 million people, active social media users from the total population are 40%, the total number of social users who access via mobile is 92.0 million, while the percentage of active mobile social users of the total population is 35%
Turkish Journal of Computer and Mathematics Education Vol.12 No.3 (2021), 584-618
Research Article
1783
3. Research
implementation
methodThis research method uses descriptive qualitative methods. Qualitative research aims to gain a general understanding of social reality from the participant's perspective through descriptive data. This understanding is not determined in advance but is obtained after analyzing social realities which are the focus of the research, then a conclusion is drawn in the form of a general understanding of these facts. Thus descriptive qualitative research can provide an overview and provide an understanding of complex realities (Rosady Ruslan In Fitri Rachmawati, 2018) Therefore, researchers here will provide a point of view for business actors, namely sharing knowledge and providing outreach and counseling, providing training, and implementing mentoring. This research includes socialization about entrepreneurship, socialization, and counseling on digital marketing, training on the use of digital marketing, and assistance in the implementation process. Besides, it provides an overview of the conditions in which UMKM are solutions or things that can be a reference in helping the economy during a pandemic and will also describe conventional business actors, convection services, and sponge sandals located in Sukajadi village, Bandung Regency (West Java) which will be researched
The identification of problems obtained through observation and interviews with partners has been described in the previous section, including a description of the solutions offered to business partners to overcome the problems at hand. Realizing solutions to partner problems requires an appropriate implementation method to produce a real impact and can be used in future business development. Therefore, there are several implementation methods carried out by the community service team to realize the solutions offered as follows:
Providing training and mentoring to UMKM partners in Sukajadi Village, Soreang District regarding a marketing system using facilities digital whose purpose is to expand marketing and strategies that can be applied to increase their marginal profit. The explanation begins with a description of the potential market share that can be accessed by partners when entering virtual markets, for example through stores online that are on networks marketplace, e-commerce, and online businesses. Including an explanation of digital marketing which is currently being used by many businesses to introduce products online. In addition to the explanation of digital marketing from the conception aspect, partners are also allowed to get to know firsthand about e-commerce and the features available on the marketplace, on-line business, including techniques for applying it. networks Marketplace, e-commerce, and online business introduced to partners, namely the platform of the Shopee and Toko Pedia applications. Partners are trained and assisted by being guided directly by the use of applications from both platforms network marketplace, from registration to create instore website account online to the method of reading analytical data about store developments available on each platform. For the sake of the effectiveness of the training, the parties are partners and instructors to simulate the use of the platforms Shopee and Tokopedia via smartphone base. Android Every Android mobile that is used for simulations is provided with a data quota package. Partners are also equipped with the ability to use the platform, namely Facebook, Instagram, and What sap to become a selling space in a virtual network of friends. facilities Marketplace and features advertising on the Facebook platform, Instagram are provided in training and mentoring which is useful as a marketing medium for partners. Partners receive assistance from the Team from registration to monitoring the analytical data seller available to each(seller)
4. Benefits
The benefits for participants obtained from this activity are:
1. UMKM players who become participants know and understand the importance of digital marketing for their business, which is part of the current marketing strategy;
2. UMKM players who become participants can directly practice digital marketing by utilizing social networks to market their products so that they are expected to expand their marketing (market share) and increase marginal profit;
3. UMKM players who become participants can be inspired and motivated to use digital marketing as a means of communication and promotion.
5.
Conclusion
The UMKM in the regions, especially the conventional business actors in Sukajadi Village, Soreang District, Bandung Regency, still have not developed their business extensively. There are still many UMKM players who close themselves to developing. They only sell their products to consumers around their market area (offline). So they need to be introduced to digital marketing, especially with the Covid-19 epidemic
Turkish Journal of Computer and Mathematics Education Vol.12 No.3 (2021), 584-618
Research Article
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This socialization was carried out to provide understanding for conventional business actors (UMKM) to put more emphasis on innovation and global orientation, considering that these two factors determine the success in competing for business in the global market. Competitive advantage for business people, especiallyUMKM, are largely determined by their ability to anticipate globalization. In this socialization, the author also explained the importance of the role of digital marketing for business development. With the concept of digital marketing, the form of promotion implemented is no longer a one-way program for consumers but has become a two-way interaction.
Optimizing the use of digital marketing in UMKM, especially social media, needs to be done considering the positive benefits that business people get in order to advance their business. UMKM players, especially in Sukajadi village, Bandung Regency, should often be given socialization or introduction to current information technology developments, especially digital marketing, as well as encouragement from related parties, be it from the government or academia, to help UMKM survive during the Covid-19 pandemic. 19 and more income from the products they produce by expanding their marketing through digital marketing is expected to move the wheels of the economy with maximum achievement to increase their standard of living.
Reference
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