Problem formulation Purpose of the Research

7 a profit forthe firm by consume – mating the exchange of product or service with those customers who need or want them. And the role advertising is to promote – to inform, persuade, and remaind groups of customers, or markets, about the need – satisfying value of the company goods and services William Arens and david H. Schaefer, 2007:6. From definition above we can conclude marketing is the activity to delivering value the product to customers, because value of product very important factor that has the association to efforts for fulfilling the consumer needs. In a company, marketing is one of the main activities the company effort to survive in running business, growing and getting the profit. The activities of marketing also must give the satisfaction for the consumers if the company want to keep business running.

2. Marketing Concept

After we discuss about the definition of marketing, so that we should know the concept of marketing. According to Kotler Kotler, 2009:5 marketing is about identifying and meeting human and social needs. One of the shortest goods definitions of marketing is “meeting needs profitably”. Marketing has been defined as an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and stakeholders. The concept of marketing has changed and evolved over time. While in today’sbusiness world, the customer is at the forefront, not all 8 businesses in the past followed this concept. Their thinking, orientation or ideology put other factors rather than the customer first. Let us examine these below. Figure 2.1 Marketing Concept www.learnmarketing.net a. Production Oriented The focus of the business does not need of the customer, but of reducing costs by mass production. By reaching economies of scale the business will maximize profits by reducing costs. Kotler,2009:18 says the production concept is one of the oldest concepts in business. It holds that consumers will prefer products that are widely available and in expensive. Managers of production-oriented businesses concentrate on achieving high production efficiency, low costs, and mass production. Marketing Concept Sales Orientation Production Orientation Product Orientation Marketing Orientation

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