Notes About Marketing Class in Bogor University : Which One is More Important, Profit or Market Share?

Lani Pujiastuti
Graduate Student of Master Program in Business School of Management (www.sb.ipb.ac.id)
Bogor University (www.ipb.ac.id)

Lecturer
Prof. Dr. Ir. Ujang Sumarwan, M.Sc.
(http://sumarwan.staff.ipb.ac.id)
Dr. Ir. Hartoyo, M.Sc.
Dr. Ir. Dodik Nur Rachmat, M.Sc.F
Dr. Kirbrandoko, M.S.M
Dr. Ir. Mukhamad Najib, M.M.

Text Book
Ujang Sumarwan (editor). 2015. Pemasaran Strategik : Perspektif Perilaku Konsumen dan Marketing Plan. IPB Press.

Hi guys, I would like to share about my marketing class with Prof. Ujang Sumarwan. He is a professor in Bogor University that has launched many books in the field of marketing. Last Thursday, we discuss about pricing strategy according to his book, Marketing Strategic : Perspective of Consumer Behavior and Marketing Plan.

He ask us to answer an interesting question, which one is more important, profit or market share? The answer is depending on the orientation of the company. He tell that profit-oriented companies (aims to maintaining the viability of the company, achieving profit targets and achieve maximum) will be more concerned with profit. Then, the company oriented at sales (aims to sales growth, market share growth and market reach top class with a maximum) will be more concerned with market share.

Pricing a product as one of the company's strategic decisions must be done properly because the price will determine the sale of products at once will affect the company's earnings. For consumers, price is the costs to be incurred or spent to get the value or benefit from the goods and services purchased (Sumarwan, 2017).

For example, we know that online motorcycle service become a new lifestyle in many big city in Indonesia. Companies in that services sector is relatively new, but has a very large market share. There are three big-company : Go-Jek, Uber, and Grabbike. They try to be the market leader in the same consumers.

All three are seen to be more concerned with market share than profit. The company installed various promo even zero rates rupiah as there is currently concerned with profit.. They come with a very low fare because the startups are subsidizing them to win customers.

According Sumarwan (2017), a larger market share will benefit from economies of scale better than competitors, so it can charge more and the plan that will provide long-term profits. Companies usually charge a low price as the penetration of the market to a market share larger.

Since then, they added more and more drivers, launched new services, and expanded to more cities. Now we can see online drivers ubiquitous green or black jackets anywhere in Jakarta and other big cities in Indonesia.


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http://ujangsumarwan.blog.mb.ipb.ac.id/files/2015/01/2015-01-BUKU-Pemasaran-Strategik-Perspektif-Perilaku-Konsumen.pdf



Sumarwan, U., Agus Djunaedi, Aviliani, H.C Royke, Jusuf Agus Sayono, Rico R Budidarmo, Sofyan Rambe. (Strategic Marketing: Strategy for Corporate Growth and Share Holder Value).-Pemasaran Strategik: Strategi Untuk Pertumbuhan Perusahaan dalam Penciptaan Nilai bagi Pemegang Saham . Published byInti Prima, Februari 2009, ISBN 979-450-451-3 

Another books :

Prof. Dr. Ir. Ujang Sumarwan, M.Sc 

Please dowload link below for book preview:


Sumarwan, U., Achmad Fachrodji., Adman Nursal., Arissetyanto Nugroho., Erry Ricardo Nurzal., Ign Anung Setiadi., Suharyono., Zeffry Alamsyah. 1st Printing. 2011. Marketing Strategic: Value Based Marketing and Marketing Metrics. Pemasaran Strategik: Persfektif Value-Based Marketing dan Pengukuran Kinerja. Bogor, IPB Press.




BOOK REVIEW

Strategic Marketing 
outlines how a company must understand the customer, so it can construct its marketing strategies to achieve corporate objectives in order to improve company performance and create additional value for shareholders. Marketing is to understand the different needs of customers and develop a proposition to offer superior value. Through the provision of customer value higher then management can provide and produce higher value to our shareholders as well. The value of a trademark is formed from the confidence of customers to the company's trademark. This belief formed the relationship between brands and customers that drive preference, brand loyalty, and willingness to consider new products and services offered by companies in the future with the brand. This book also describes how the steps to build brand equity and describes several methods for measuring brand equity.

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