Effect of Production Strategy Performance on Brand Royalty
152 Return: Management Studies, Economics and Business, Vol 1(No 04), Dec 2022
Because having loyal consumers to a brand is a very big asset for a company (Yoo, Donthu,
and Lee 2000).
Marketing
Marketing has a wide scope with various meanings. But these understandings basically
have the same meaning. As some of the following economic experts have pointed out.
According to Kotler (2004) in (Shabastian 2013) marketing by social definition is a social
process by which individuals and groups get what is needed and desired by creating, offering
and freely exchanging valuable products and services with other parties‖. Meanwhile, when
viewed from a managerial definition, marketing is often described as the art of selling products.
Meanwhile, Vellas and Becherel in (Shabastian 2013) explain that marketing is a management
process that identifies and anticipates demand and customer satisfaction by making a profit.
The American Marketing Association(Kotler and Amstrong 2002:10) defines marketing as the
process of planning and executing thoughts, pricing, promotion, and channeling ideas, goods,
and services to create exchanges that meet individual and organizational goals.
Marketing Mix
Marketing mix is the set of marketing tools that the firm uses to pursue its marketing
objectives in the market.'' (Aaker,1997) which more or less means marketing mix is a collection
of controllable marketing variables used by a business entity to achieve marketing goals in the
target market (Wong and Merrilees1 2007). According to (Stanton and Futrell 1978) The
marketing mix is a combination of 4 variables or activities that are the core of the company's
marketing system, namely products, prices, promotion activities and distribution systems.
Product
A product is everything that can be offered to gain attention, proficiency, use, or
consumption that may satisfy a need and desire. Sometimes we use other terms for products,
such as offering, and solution (Kotler 2001). Products are also defined as anything that is
offered into the market to get attention, owned, used or consumed so that it can satisfy the
needs or desires of customers. Included in the physical object, services, people, places,
organizations and ideas (Kotler and Amstrong 2002). Products have several components,
namely diversity (product variety). Quality, design, features, brand, packing, sizes, services,
warantties and returns, as stated by Kotler (Adnan et al. 2022). A company must find ways
that are meaningful and in line with the development of the times to perfect the products it
offers, it is because every product produced has a product life cycle, where after reaching the
maturity stage, usually a product will experience a decline and possibly die along with the
emergence of new technologies and switch from the maturity stage of the product to new
growth (Musfar and SE 2020). As for producing a quality product, the management must
determine the concept of a product that states that consumers will like a product that offers the
best quality, performance, and innovative complements. Managers in product-oriented
organizations focus their attention on the undertaking that produces the product, the
management can assume that buyers value a well-made product and they can judge the quality
and performance of a product (Akbar 2021).
Prince
In financial transactions, it is customary to quote prices in another way. The most obvious
example is in the price of the loan, when the cost will be expressed as a percentage of the
interest rate. The amount of interest paid depends on the loan amount and the loan period
(Suherman and Siska 2021). Another example can be found in the prices of financial
derivatives and other financial assets. For example the price of inflation related to government
securities in some countries is quoted as the actual price divided by the factor representing
inflation since the security was issued. The path in question is a vision (future goal) for an
organization or company that is right in the jungle of the organization both in the present and
future (Shabastian 2013).