THE
INFLUENCE OF THE MARKETING MIX
ON THE EXPORT SALES VOLUMES OF TEXTILE PRODUCT
AT PT. PRIMATEXCO INDONESIA
Hani
Khairunisa, Budi Prasetya, Nur Rini
Business Administration Department, Semarang State
Polytechnic
ABSTRACT
This study entitled “The Influence of The Marketing Mix on
The Export Sales Volumes of Textile Product at PT. Primatexco Indonesia”, aimed
to analyze the influence of the marketing mix on the export sales volumes. This
study used secondary data taken from PT. Primatexco Indonesia, per month in
2004 through 2014.
The analysis method that is used in this research is using
normality test, classical assumption test (which includes heteroscedasticity,
multicollinearity, autocorrelation), multiple linear regression analysis,
T-test, F-test, and R2 (coefficient of determination).
Based on the simultaneous test, the results
proved that independent variables that is product, place, promotion, and price
simultaneously had a significant influence on the export sales volumes with the
calculated value of F values = 167.475 and sig =
0,000 < 5% this means independent variables product, place, promotion, and
price simultaneously significant influence on the dependent variable (export sales
volume). In other words, the independent variables are able to explain the
amount of the dependent variable.
Based on partial analysis, the results proved that the three
independent variables that is product, place, and price significantly
influenced on the export sales volumes. On product variable t count value of
13.887 was > t table 2.29 which means that Ho was rejected and Ha was
accepted. While the promotion variable did not have any influence significantly
on the export sales volumes, because t count value -1.609 was < t table, so
Ho was accepted and Ha was rejected.
The results of multiple linear regression test shows that all
independents variables that is product, place, and price had a positive
influence on the export sales. The greatest positive influence on export sales
volumes was product variable (X1), it is shown from the regression coefficient
of 8.976, followed by price variable (X4) with a regression coefficient of
1.451E-5, followed by place variable (X2) with a regression coefficient of 2.383E-6. While the promotion variable (X3) with
coefficient regression of -6.210E-10, it means that promotion variable does not
have any positive influence on the export sales volumes.
Keywords: Product, Place, Promotion, Price,
Export Sales Volumes, Textile Products
INTRODUCTION
The development of textile industries in Indonesia is not without any
problem at all. Textile trading policy, both International and Regional, have
taken textile industries to the higher rivalry level. The higher rivalry in the
international market has made the development of National textile export
stalled. Beside that, national textile also loses grips on the market inside
the nation.
The average selling value of textile industry and national textile product
(TPT) is USD 20 billion these last three years. Export selling dominated the
turnover of Indonesia’s TPT (>60%), especially garment.
Picture
1
TPT’S
Export Graphic Year 2006 -2014
Considering on how big is the export portions, the work of Indonesia’s
Textile Industries will be very influenced by the global economic condition,
especially USA and Europe, as the biggest TPT’s export market for Indonesia. In
2014, US economic was assumed to be better. However, the impact on the
recovering of Indonesia’s TPT Industries won’t be expected to be felt
significantly in 2014. In this case, Indonesia’s export products still need to
fight with the competitor’s products such as Vietnamese products, to fight for
recovery chances of USA’s market. Export market share of Indonesia’s TPT in the
USA and Europe’s main market itself is so small, it even stalled. In USA,
Indonesia’s TPT market share is 3.8%, it’s decreased compared to 2009 which is
4.9%, In Europe is 0,9%, 1% decreased in 2009. According to the research
results of Statistics Indonesia (BPS): in 2014, every 1% escalation of USA’s
economic development, will escalate 1.5% export development of Indonesia’s
textile company to USA in the next 3 quarterly, however every 1% escalation of
European’s economic development, is going to be escalate 3% export development
of Indonesia’s textile company to European the next 2 quarterly.
PT. Primatexco
Indonesia is the pioneer of the national textile industry which was established
in 1970. PT. Primatexco Indonesia is a Foreign Investment Company (PMA) by
means of cooperation in a joint venture between Indonesia and Japan.
Approximately 75% of the products of fabric produced by PT. Primatexco
Indonesia now have been exported to many countries. For Asia, the products are
successfully marketed in Japan, Hong Kong, Singapore, and Saudi Arabia, while
the European region covering Germany, UK, Belgium, Switzerland, Italy, Spain,
and Turkey. A small portion of PT. Primatexco Indonesia for the local market
has been penetrated Jakarta, Bandung, Semarang, Solo, Yogyakarta, Surabaya,
Makassar, Banjarmasin, and Bali.
With a decrease in the national
textile export numbers also have an impact on the company's decline in textile
manufacturers as well, one of them is PT. Primatexco Indonesia. For more detail
regarding the export volume sales numbers can be seen in the table 1.
Table 1
Export
Sales Volumes
of PT.
Primatexco Indonesia
2004-2014)
Source: PT. Primatexco
Indonesia, 2015
By looking at the problem of the national textile export industry that
occurred, then it also affects the textile industries that exist, one of which
PT. Primatexco Indonesia. On the basis of this, the authors are interested
specifically to hold and take to hold and take the object of research at PT.
Primatexco Indonesia with the title “The
Influence of Marketing Mix on the Export Sales
Volume of Textiles Products at PT.
Primatexco Indonesia”.
LITERATURE REVIEWS
Marketing
Marketing is a process of developing an integrated communication that aims
to provide information about the goods or services to satisfy human needs and
desires. In a general sense, marketing can be defined as a social and
managerial process in whichindividuals and groups obtain what they need and to
create, offer, and exchange, the valuable products with others (Kotler, 2000).
Philip Kotler (1993: 5) stated that marketing is a social and managerial
process by individuals and groups to obtain what they need and they want to
create and bring products and value each other. According to that definition,
Philip Kotler (1993: 5) uses the term needs of desire, product demand,
exchange, transactions, and markets.
Marketing Concept
While definitively according to BasuSwastha (2000:17), “Konsep pemasaran adalah sebuah falsafah bisnis
yang menyatakan bahwa pemuasan kebutuhan konsumen merupakan syarat ekonomi dan
social bagi kelangsungan hidup perusahaan,” According to his opinion,
marketing concept can be as a business philosophy that satisfies the customer
needs under the prerequisite for economic and social viability of the company.
Marketing Mix
According to Kotler and Armstrong (2000: 56), marketing mix is a set of
tactical marketing tools are combined and controlled by the company to produce the
desires response target market. The marketing mix consists of everything you
could do to influence the demands for its products.
According to Indriyo Gitosudarmo, he defined that marketing mix a blend of
product, price, promotion, and distribution that is used by entrepreneurs to
market their products or to serve costumers; it is also used to influence
consumers.
Product
According to Kotler, (2000: 428), product is anything that can be offered
by manufacturers to be noted, asked, sought, bought, and used.
Products offered may include physical goods, services, or a private
person, place, organization, and ideas. Thus, products can be tangible or
intangible benefits that can satisfy customers. Conceptually, a product is the
subjective understanding of the producers of something that can be offered as
an attempt to achieve organizational goals through fulfilling needs and desires
of consumers, in line with the competence and capacity of the organization as
well the purchasing power of the market. In more details, the concept of total
product includes goods, packaging, brand, label, services, and warranty
(Tjiptono, 1997).
Place
According to Philip Kotler, place is a wide range of activities by the
company to make its products accessible and available to target consumers. As
one of the marketing mix variables, place or distribution has a very important
role in helping companies ensure their products, because the purpose of the
distribution is to provide goods or services that are needed and wanted by the
consumer at the right time and right place. Punctual goods delivery will reduce
the scale of consumers moving to the other manufacturer.
Promotion
Promotion is an important activity, which plays an active role in
introducing, informing, and reminding the benefits of a product in order to
encourage consumers to buy the product being promoted. To hold a promotion,
every company should be able to determine exactly which promotional tools that
are used in order to achieve success in sales.
Price
Price is an important role in marketing both for sellers and buyers.
According to Alma (2004: 79), “Price is the value of an item that is expressed
in money”. According to Swasta (2000: 89) definition of price is “the amount of
money (added with some stuff that might be) which is required to obtain a
number of combinations of items and its services”.
“Price is the amount of money charged for a product or service. Generally,
price is the overall value of redeemable for consumers to get benefit of the
ownership of goods or service” (Philip Kotler).
Sales Volumes
Sales activity is an activity that must be performed by a company by
marketing their products. Sales activities that is done by the company aims to
achieve the expected sales volumes and maximum profit achievement.
The definition of sales volumes stated by Rangkuti (2009: 207):
Volume penjualan adalah pencapaian yang dinyatakan secara kuantitatif dari
segi fisik atau volume atau unit suatu produk. Volume penjualan merupakan suatu
yang menandakan naik turunnya penjualan dan dapat dinyatakan dalam bentuk unit,
kilo, ton, atau liter
Based on his opinion sales volume is an achievement which is
expressed quantitatively in terms of physical volume or unit of a
product. Sales volume indicates a rise and fall of sales and can be expressed
in terms of units, pounds, tons, or liters.
Export
Exports are
selling goods abroad by using the payment system, quality, quantity and other
terms of sales approved by the exporters and importers. Export process in
general is an activity to move out the goods or commodities of the country to
put it to other countries.
RESEARCH METHODS
Research method is a
productive or a way to find out something which has systematic steps. While the
methodology is defined as a theoretical framework used to analyze, work or
solve the problems facing (Kerf, 2004).
The methods of
collecting the data in this research are using interviews, literatures,
observation, and documentation.
According to the
literature reviews and some of the previous studies, the theoretical framework
in this research is as follows
The hypotheses that can be obtained:
H1: It is assumed that
there is a significant influence simultaneously between marketing mix with the
four variables: product, price, promotion, and place on the export sales
volumesof textile product at PT. Primatexco Indonesia.
H2: It is assumed that
Product Variable significant influence partially on the export sales volumes of
textile product at PT. Primatexco Imdonesia.
H3: It is assumed that
Price Variable significant influience partially on the export sales volumes of
textile product at PT. Primatexco Indonesia.
H4: It is assumed that
Promotion Variable significant influence partially on the export sales volumes
of textile product at PT. Primatexco Indonesia.
H5: It is assumed that
Place (Distribution) Variable significant influence partially on the export
sales volumes of textile product at PT. Primatexco Indonesia.
In this research data that is used is secondary data which is taken from
PT. Primatexco Indonesia. Secondary data in this reseacrh include: export sales
volumes of textile product at PT. Primatexco Indonesia, product cost, pricing
cost, distributation cost, and promotion cost.
In this study, there are four independent variables, namely product,
price, place (distribution), and promotion
The operational variables that can be obtained from this
research:
a. A product is defined as what is offered to the market to be notices,
acquired, used, or consumed to fulfill a want or need. In this research, what
is mentioned product (X1) are variety of the textile product, quality,
packaging, servicing, and warranty.
b. Place can be defined as marketing channels, market scope, grouping,
location, inventory, transportation, and distribution. In this research the
place variable is location, inventory, transportation, and distribution.
c. Promotion is a set of activities to intoduce the product to the customers.
Promotion can be done by doing sales promotion, advertising, personal selling,
public relation, and direct marketing.
In this reserch the promotional mix that have been done by the company
is public relation, direct marketing, and personal selling.
d. Price are contains of price list, discount, term of payment, credit
requisite. In this reserach what is mentioned in the price variable is price
list of the products.
While data analysis methods used in this research is as follows:
a.
Normality Data Test
Normality test is used
to determine whether the dependent variable in the regression model, the
independent variables, or both have a normal distribution or not. A good
regression model is those that are normally distributed. Normality test can be
done by using Kolmogorov-Smirnov test (goodness of fit, Imam Ghozali, 2001).
b.
Classical Assumption Test
1)
Heteroscedasticity
Detection of heteroskedasticity can be done by using the model of output
Glesjer to see a larger significance. If the probability value (sig) is greater
than 0,05, it can be concluded that there is no heteroskedasticity and
otherwise (Imam Ghozali, 1995:81-82).
2)
Multicollinearity
Multicollinearity test is conducted to examine whether there is a
correlation between the independent variables (Gujarati, 1978: 157). The test
is seen based on the value of Variance Inflation Factor (VIF) were obtained.
The lack of correclation that is high (above 0,90) indicates that there is not
multicollinearity on each independent variables. In addition, VIF is known that
none showed values abobe 10 or tolerance value of 0.10.
3)
Autocorrelation
Autocorrelation can be defined as the correlation between the members of a
set of observations which is arranged according to the listed time (such as
time series data) or a sequence of
spaces / places (data cross sectional), or correlations that arise on ittself
(Sugiarto, 1992). The existence of autocorrelation can leas to assessments that
have no minimum variance (Gujarati, 1997) and the test can not be used, as it
will give the wrong conclusions (Rietveld and Sunaryanto, 1994).
Autocorrelation test can be obtained by doing Durbin – Watson Test.
c.
Multiple Linear Regression
Multiple linear
regression is a statistical technique that uses several explanatory variables
to predict the outcome of a response variable. The goals of multiple linear
regression (MLR) is to model the relationship between the explanatory and
response variables.
1)
Partial Test (T-test)
T-test is a statistical examination of two population means. A two-sample
T-test examines whether two samples are different and is commonly used when the
variances of two normal distributions are unknown and when an experiment uses a
small sample size.
2)
Simultan Test (F-test)
F-test is used to determine the real impact or influence between the
independent variable on the dependent variable simultaneously (PS. Djarwananto,
1993: 268).
3)
Coefficient Determination
Coefficient
of determination is a measure that is used statistical model analysis to assess
how well a model explains and predicts future outcomes. It is indicates of the
level of explained variability of the model.
FINDINGS
a.
Normality Data Test
Table 2
Normality Test Result
 |
Source: Data processed
by the writer, 2015
From the table 2 was obtained that sig values = 0.430 = 43 %
> 5%, it means H0 is accepted. This also means that the variable of
un-standardized residual was normally distributed. Normality test can also be
seen in the chart Normal P-Plot as follows.
Diagram 1
Normal PP-Plot Graph
Source: Data processed by the writer, 2015
In the P-Plot graph the data were spread around the diagonal line and
follow the direction of the line histograf towards normal distribution pattern,
so it means that the dependent variable (Y) meets the assumption of normality.
b.
Classical Assumption Test
1)
Heteroscedasticity
Diagram 2
Scatterplot
Source: Data processed by the writer, 2015
On the scatterplot graph shows that the dots randomly spread and spread
both above and below the zero on the axis Y. This can be concluded there is no
heteroscedasticity in this regression model.
Table 3
Glejser Test
Source: Data processed by the writer, 2015
SPSS output display results clearly show that all the
independent variables have sig ≥ 0.05. So this means that there are no
independent variables which statistically significant influence Abs_res
dependent variable. So we can conclude the regression model did not contain any
heteroscedasticity.
2)
Multicollinearity
Table 4
Multicollinearity Test
Source: Data processed by the writer, 2015
From the table above
shows each independent variable has a value of tolerance> 0.1 and VIF
<10. So it can be concluded that there is no multicollinearity between
independent variables in this regression model.
3)
Autocorrelation
Autocorrelation test is
conducted to determine whether on the linear regression model there is
correlation of the confounding error in the time period t with the error in the
time period t-1. In this study, autocorrelation test conducted by the
Durbin-Watson test. The results can be seen in the following table.
Table 5
Durbin – Watson Test Result
Source: Data processed by the writer, 2015
c.
Multiple Linear Regression
First regression
analysis is to assess the influence of the product, place, promotion, and price
on the export sales volume at PT. Primatexco Indonesia. Tests were carried out
such as by using the F test, T test, and R Test.
Table 6
Multiple Linear Regression
Source: Data processed by the writer, 2015
Based on the table
4.11 abovethe equation of multiple regression as follows:
Log_Export= 8.976 +
1.451E-5 + 2.383E-6 – 6.210E-10 + 4.633E-5
1)
Simultaneous Test (F-test)
Table 7
Simultaneous Test
Source: Data processed by the writer, 2015
In the
Anova table were obtained that F values is 167.475 and sig is 0,000 < 5%
this means independent variables product, place, promotion, and price
simultaneously significant influence the dependent variable (export sales
volume). In other words, the independent variables are able to explain the
amount of the dependent variable.
2)
Partial Test (T-test)
Table 8
Partial Test
Sourc Source: Data
processed by the writer, 2015
Hypothesis:
Ho: The
independent variable does not influence on the dependent variable.
Ha: The
independent variables influence on the dependent variable.
Decision-making criteria:
With a level of trust = 95% or (a) = 0.05. Degrees of
freedom (df) = nk-1 = 132-4-1 = 127, as well as testing the two sides which is
gained from t0,05= 2,29.
Ho accepted if –ttable≤ tcount≤ ttable or sig ≥ 5%
Ho rejected if (tcount<- ttable or tcount>ttable) and sig <5%.
Statistical tests using SPSS on a product variable was obtained that value
of tcount = 13.887 and sig = 0.000 = 0% ≤ 5%, so this means that Ho is
rejected. This means that product variable is statistically significant
influence on the dependent variable (export sales volume).
While based on the table place variable was obtained that the value of tcount=
4,279 and = 0.000 = 0% ≤ 5%, so this means that Ho is rejected. This means that
place variable is statistically significant influence on the dependent variable
(export sales volume).
According to the table, it can be obtained that promotion variables is
equals to tcount= -1,609 and =
0.000 = 0% ≤ 5%, so this means that Ho is rejected. This means that promotion
variable is statistically significant influence on the dependent variable
(export sales volume).
As we can see from the table, it can be seen that value of tcount=
8,518 and = 0.000 = 0% ≤ 5%, so this means that Ho is rejected. This means that
place variable is statistically significant influence on the dependent variable
(export sales volume).
3)
Coefficient Determination
Table 9
Coefficient Determination Test
Source: Data processed by the writer, 2015
From the Table 9,
it can be obtained that the values of adjusted R2 = 0.836 = 83.6%,it
means that the independent variables namely product, place, promotion, and
price simultaneously influence on the dependent variable (export sales volumes)
which amounted to 83.6% and the rest is influenced by other variables that are not
included in this research.
CONCLUTIONS
Based on the
results of the research that has been done about the influence of marketing mix
on the export sales volumes at PT. Primatexco Indonesia, conclusions can be
drawn as follows:
a. Based
on the simultaneous test, the results proved that independent variables that is
product, place, promotion, and price simultaneously had a significant influence
on the expot sales volumes with the calculated value of F value = 167.475 and
sign = 0.000 <5%, it means independent variables simultaneously significant
influence on the dependent variable. In other words, the independent variables
are able to explain the amount of the dependent variable.
b. The
partial analysis, found that product, place, and price significantly influenced
on the export sales volumes. While the promotion did not influence
significantly the export sales volumes.
c.
The results of multiple linear regression test
shows that product, place, and price had a positive influence on the export
sales volumes. The greatest positive influence was product.
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