THE INFLUENCE OF ONLINE MARKETING STRATEGY ON MSME SALES IN MEDAN CITY DURING PANDEMIC COVID-19 - Journals
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THE INFLUENCE OF ONLINE MARKETING STRATEGY ON
MSME SALES IN MEDAN CITY DURING
PANDEMIC COVID-19
Muhammad Zuardi1), Rini Indahwati2), and Sulaiman Ahmad3)
1,2,3)
Politeknik Negeri Medan
Email: muhammadzuardi@gmail.com
ABSTRACT
The spread of the Covid-19, virus has an impact on decreasing turnover
of entrepreneurs, including small entrepreneurs who partner with online ap-
plications. An online marketing strategy is needed that can increase sales
volume during a pandemic.
This study aims to recommend the right marketing strategy to increase
sales. Selling is an integrated effort to develop strategic plans aimed at
satisfying the needs and desires of buyers, in order to get sales that generate
profits.
The results showed that the online marketing strategy did not signifi-
cantly increase the sales of MSMEs in Medan City during the Covid-19
Pandemic. 10.5% of MSME sales in Medan City During the Covid-19 Pan-
demic can be explained or influenced by the Online Marketing Strategy,
while the rest is explained or influenced by other variables.
Keywords: marketing strategy, sales, MSME
INTRODUCTION and other places. Even big entrepreneurs
The virus outbreak known as Corona have decreased their sales turnover. As we
Virus Deasease (Covid) began to develop have seen, some companies reduce their
in December 2019 in Wuhan, China. Ini- employee cause sales turnover is unusual.
tially, this outbreak was only a local epi- This impact is certainly felt by small
demic suffered by the people of Wuhan. and medium enterprises. The Serang City
However, unexpectedly, this epidemic be- Trade, Industry, Cooperatives and Micro,
gan to spread throughout the world. Start- Small and Medium Enterprises Office re-
ing from the closest countries to China corded around 70% or 10,238 MSMEs in
and finally arriving in Indonesia at the Serang City were affected by the Corona-
end of February 2020. virus or Covid-19 outbreak. The City of
The spread of this virus is so fast, ca- Serang Disperindagkop has collected data
using people to be unable to carry out act- on all MSME business actors. As a result,
ivities as usual, because social distancing from 14,238 MSMEs in Serang City, aro-
& physical distancing must be carried out. und 70% were affected by Covid-19. He-
Where, the community is not recommen- ad of Disdagperinkop Kota Serang Yoyo
ded to crowd or carry out activities that in Wicahyono said the results of the data
volve large numbers of people. collection were only about 4,000 MSMEs
This of course also has an impact on that could survive in the midst of this Co-
the economic activities of the community. ronavirus outbreak. About 70% or 10,238
People limit themselves to carrying out MSME actors are affected [1].
consumption activities such as shopping The condition of MSMEs in Medan
and going to markets, malls, restaurants and North Sumatra is not much different.
80The Influence of Online Marketing Strategy on Msme Sales in Medan City During
Pandemic Covid-19
MSMEs have really felt the impact of this has switched to an online sales system.
outbreak, which resulted in their sales "Business actors can start aggressively
turnover also dropping dramatically. Act- doing business via online and accepting
ing Head of the North Sumatra Province online payments. Or they can collaborate
Cooperatives and SMEs Service, Ridho with an available online delivery system,"
Haykal Amal, revealed that as many as he said, who is also the owner of Warung
672,000 Micro, Small and Medium Enter- Ijo Excellent.
prises (MSMEs) and 7,700 cooperatives Online marketing strategies have a po
in North Sumatra were affected by the Co sitive impact on the increase in profits of
vid-19 pandemic. This number is spread MSMEs [2]. Ecommerce has a significant
across all districts/cities in North Sumatra. impact on increasing MSME income [3].
"The total number of MSMEs affected in Digital marketing is proven to be able to
North Sumatra is 672,000 from a total of increase the sales volume of the home in-
960,000 MSMEs in North Sumatra and dustry [4]. The use of social media has a
7,700 cooperatives out of 11,000 existing significant influence on the online marke-
cooperatives". ting of goods and services offered by Mic
Ridho said there were several prob- ro, Small & Medium Enterprises, both tho
lems that resulted in the deterioration of se engaged in services, trade and manufac
MSMEs and cooperatives in this area. turing production, especially in the Cen-
First, public demand has decreased. Se- tral Java region, so they can increase sales
cond, these MSMEs and cooperatives ha- turnover and profit [2].
ve difficulty finding raw materials, beca- Research Objectives
use many companies have closed or are This study aims to see how much inf-
not carrying out their activities. Third, dis luence online marketing strategies have
ruption of production and distribution raw on increasing MSME sales during the Co-
materials, and fourth, access to finance. It vid-19 pandemic in Medan.
is difficult to find access to finance for
MSMEs. LITERATURE REVIEW
This situation forces MSMEs to be Description of the Theory
more creative, so that a decrease in sales Definition of Sales
turnover can be found a solution. The Mi- The notion of sales is a managerial
nistry of Cooperatives and SMEs or Kem- social process in which individuals and
enkop & UKM has prepared eight special groups get what they need and want, crea-
programs as an effort to anticipate the eco te, offer and exchange products of value
nomic impact of the COVID-19 outbreak with other parties [5]. Sales are all activi-
on cooperatives and MSMEs in the coun- ties that aim to facilitate flow of goods &
try. One of them is, the Ministry supports services from suppliers/producers to con-
the effectiveness of "social distancing" or sumers most efficiently with a view to cre
maintaining a safe distance for SMEs by ating effective demand [6].
starting an online business so that at the Sales are human activities that direct
same time the stalls can run well again. to fulfill and satisfy needs & desires thro-
A culinary businessman in Medan Ci- ugh an exchange process [7]. Sales are an
ty, Rico Waas said that he was using tech amount of money that is charged to buy-
nology to keep running his business. He ers for goods or services sold [8].
admitted that since the Indonesian govern Marketing Relationship with Sales
ment appealed to social distancing & pro- Sales is an integrated effort to deve-
hibited people from crowding in an effort lop strategic plans aimed at satisfying the
to fight the corona virus or COVID-19, he needs and desires of buyers, in order to
81Proceeding of IICSDGs 2020 Muhammad Zuardi
E-ISSN: 2654-8690, Vol. 3, No. 1, November 2020
get sales that generate profits [9]. Sales marketing activities. Thus, the company
are the lifeblood of a company, because does not only have the best combination
from sales can earn profits and an effort of activities, but can coordinate the vari-
to attract consumers who are endeavored ous marketing mix variables to carry out
to find out their attractiveness so they can effective marketing programs. Marketing
find out results of the products produced. mix is marketing variables consisting of
The relationship between marketing product, price, distribution or product pla-
and sales is [10]: cement (place), and promotion. These fo-
Sales is one of the marketing functions ur kinds of actions are often referred to as
There will always be a need for sales, the marketing mix or 4Ps [10].
but the goal of marketing is to make Description of the elements of the marke-
sales abundant ting mix
Marketing includes the planning, app- Marketing strategy is a set of princip-
lication and final stages where sales les that are appropriate, consistent, and
are one part of the final stages of mar- loyal to be implemented by the company
keting. in order to achieve the target market (tar-
Sales indicators are as follows [11]: get market) in the long term. In this mar-
Price keting strategy, there is a reference strate-
Promotion gy or marketing mix, which determines
Quality the best composition of the four market-
Distribution channel ing variables. To be able to achieve the
Definition of Marketing Mix target market as well as achieve the goals
Marketing is a social process and and objectives of the company. All com-
with that process individuals and groups pany activities are directed at fulfilling
get what they need and want by creating, the desires and satisfying the needs of con
offering and freely exchanging products sumers starting from product design, de-
and services of value with other parties termining material composition, shape,
[5]. Marketing strategy is marketing logic packaging, price, promotion, and so on.
and based on that business units are ex- Product
pected to achieve marketing goals, market Products are goods or services offer-
ing strategy consists of making decisions ed in the market to get attention, demand,
about the marketing costs of the compa- use, or consumption that can fulfill wants
ny. The marketing strategy used by com- or needs [10]. Buyers will buy the prod-
panies is the result of combining various uct if they feel it is suitable. Therefore,
marketing elements called the marketing the product must be tailored to the wishes
mix [10]. or needs of the buyer, so that product mar
The marketing mix is a combination keting is successful. In other words, pro-
of variables or activities that are the core duct manufacturing is better oriented to-
of the marketing system. These variables wards market desires or consumer tastes,
can be controlled by the company to influ for example in terms of packaging quali-
ence the reactions of buyers or consu- ty, and so on. Therefore, the task of the
mers. So the marketing mix consists of a marketing department is not easy, it must
set of variables that can be controlled and adjust the company's ability to market
used by the company to influence consu- (consumer) desires.
mer responses in its target market. These A product is a set of tangible and in-
variables or activities need to be combi- tangible attributes, including color, price,
ned and coordinated by the company as packaging, factory prestige, retailer pres-
effectively as possible in implementing or tige and services from factories and retai-
82The Influence of Online Marketing Strategy on Msme Sales in Medan City During
Pandemic Covid-19
lers that may be accepted by buyers as is to move goods from producers to con-
something that can be satisfy his craving. sumers. Distribution channels address ma
The products in this study are manufactu- jor gaps in time, place, and ownership
red products namely products that go thro that separate goods and services from
ugh a manufacturing process [5]. those who will use them.
Price Promotion
Price is the amount of compensation Promotion is part of the marketing
(money or goods, if possible) needed to mix that plays a big role. Promotion are
get a combination of goods and services activities that companies actively carry
[5]. At this time, for most members of so- out to encourage consumers to buy the
ciety, price still occupies the top place as products offered. Therefore, promotion is
a determinant in the decision to buy go- seen as a one-way flow of information or
ods and services. Therefore, pricing is an persuasion designed to direct a person or
important decision for company manage- organization to make exchanges in mark-
ment. The price set must be able to cover eting. Activities in this promotion in ge-
all costs that have been incurred for pro- neral are advertising, personal selling, sa-
duction plus the percentage of the desired les promotion, direct marketing and pub-
profit. If the price is set too high, it will lic relations from publicity [5].
generally be less profitable, because bu- Promotion is an activity that is inten-
yers and sales volumes are reduced [5]. ded to influence consumers so that they
As a result, all costs that have been incur- can become familiar with the products
red cannot be covered, so that in the end offered by the company to them and then
the company suffers a loss. So, one of the they become happy and then buy the
principles in determining the price is to fo product [5].
cus on the willingness of the buyer to a Definition of online marketing strategy
predetermined price in an amount suffic- E-marketing is the marketing side of
ient to cover the costs incurred along with ecommerce, which is the work of the com
the desired profit orientation [5]. pany to communicate something, promote
Distribution (Place) and sell goods and services via the inter-
Distribution is one element of the mar net [13]. E-marketing as a special interest
keting mix which has an important mean- by marketers, namely a strategy for the
ing. If a product has advantages and excel process of making, distributing, promo-
lent quality, very competitive prices or a ting and pricing goods and services to the
massive promotion, but if it does not have internet market share or through other
the right distribution channels, the market digital tools [14].
ing success of a product will not be maxi- Online marketing is marketing that is
mally achieved. In other words, the distri- done through an interactive online com-
bution process is one of the important puter system that connects consumers and
marketing elements to support the succes sellers electronically [15]. Online market-
sful marketing of a company's product so ing is the use of the internet and related
that it reaches consumers [12]. digital technologies to achieve marketing
Distribution channels are channels us goals and support modern marketing con-
ed by producers to distribute products to cepts [16].
consumers or various company activiti-es There are two types of online chan-
that seek to get products to consumers [5]. nels, namely [15]:
The process of moving a product from Commercial online channels. Online
producer to consumer can be called a dis- channels provide subscribers with five
tribution channel. The marketing function main services: information (news, dia-
83Proceeding of IICSDGs 2020 Muhammad Zuardi
E-ISSN: 2654-8690, Vol. 3, No. 1, November 2020
logue opportunities (bulletin boards, od in order to formulate the right market-
forums, chat boxes), and e-mail. ing strategy, which able to influence any
Internet. The internet is a global net- ongoing decision-making process [18].
work of approximately 45,000 compu- Purchasing decision process
ter networks that enable instant and A consumer will carry out a number
decentralized global communication. of processes that underlie decision mak-
The Internet, originally created to sup- ing. The following are the processes befo-
port academic research and exchange, re and after purchasing decision a prod-
is now available to a much wider audi- uct, namely [5]:
ence of about 25 million people. Users
Problem Introduction.
can send e-mails, exchange ideas, shop It is a process where consumers will
for goods, and access news, food reci- buy a product as a solution to the prob-
pes, art information, and business infor lems they are facing. Consumers cannot
mation. The internet itself is free, al-
decide what product to buy, if no recog-
though users have to pay for comer- nition of the problem has arisen.
cial services in order to connect to it.
Information Search.
Definition of purchase decision It is an advanced process of problem
Decision means choice, which is a recognition, in which the consumer will
choice of two or more possibilities. How- be motivated to seek information to solve
ever, it is hardly a choice between right the problems he is facing. The process of
and wrong, but what often happens is a searching for this information can come
choice between "almost right" and "may- from the memory (internal) or based on
be wrong". Although ordinary decisions the experiences of others (external).
are said to be the same as choices, there
Evaluating alternatives.
are important differences between the It is an advanced process of informa-
two. Decisions are "real choices" because tion retrieval, where after the consumer
choices are defined as choices about goals gets various kinds of information, the con
including choices about how to achieve sumer will evaluate what strategic alterna
those goals, whether at the individual le- tives will be chosen to overcome the prob
vel or at the collective level. The decision
lems it faces.
in relation to the process is the final state
of a more dynamic process, which is labe- Buying decision.
led decision making. Decisions are seen It is a continuation process of evalua-
as processes because they consist of a se- ting alternatives, where consumers will
ries of related activities and are not only make purchasing decisions for a desired
considered wise actions. product. Sometime consumer need a long
Furthermore, decision making is a time before these consumers decide to
process of appraising and selecting from buy the product they want, because there
various alternatives according to certain are things that still need to be considered..
interests by determining an option that is Post-purchase evaluation.
considered the most profitable [17]. It is a process after consumers buy a
Decision making has important mean product, where consumers will evaluate
ing for the back and forth of an organiza- whether the product is in accordance with
tion, especially because the future of an their wishes. In this process, consumer sa-
organization is largely determined by cur- tisfaction and dissatisfaction can occur.
rent decision making. The decision-ma- Consumers will feel satisfied if the pro-
king process as an important activity in duct that has been purchased is in accor-
consumer behavior needs to be understo- dance with their wishes and will further
84The Influence of Online Marketing Strategy on Msme Sales in Medan City During
Pandemic Covid-19
increase demand for the product brand in Use of the internet and
the future. But on the contrary, consumers related digital technologies
Online Likert
to achieve marketing
will feel dissatisfied if the goods that ha- Marketing
goals and support modern
Scale
ve been purchased are not in accordance marketing concepts
with their wishes and this will reduce con Managerial social process
sumer demand in the future. where individuals and
groups get what they need Likert
PREVIOUS RESEARCH Sales
and want, create, offer and Scale
Online marketing strategies have a exchange products of
positive effect on the increase in profits value with other parties
of MSMEs [2]. E-commerce has a signifi- Research Model
cant impact on increasing MSME income The type of research in this research
[3]. Digital marketing is proven to be able is action research, which is a study con-
to increase the sales volume of the home ducted to obtain practical findings or for
industry [4]. The use of social media has a the purposes of making operational deci-
significant influence on the online marke- sions because the objective is to make op-
ting of goods and services offered by Mic erational decisions to develop new skills
ro, Small and Medium Enterprises, both or new approaches [20].
those engaged in services, trade and manu The research model can be described
facturing production, especially in the in Figure 1.
Central Java region, so that they can inc-
Figure 1. Research model
rease sales turnover and profit [2].
Online Marketring Strategy Sales
RESEARCH METHODS
Research Sites Population and Sample
This research will be located in Me- The population is all individuals who
dan City, with MSME as the sample. are the object of research [21]. The popu-
Measurement Scale lation of this study is MSMEs in Medan
The variable measurement scale used City that partner with Go Food or Grab
is the Likert scale. The Likert scale is a Food. Determination of the sample using
psychometric scale commonly used in qu- purposive sampling technique. This tech-
estionnaires, the Likert scale is included nique is used to determine samples inten-
in the interval scale group [19]. Usually tionally according to the requirements or
this proposed scale is done by dividing: sample criteria required. The sample cri-
The answer strongly disagrees point 1. teria in this study are MSMEs that have
The answer to disagree gets a point of 2. partnered with Go Food or Grab Food for
The neutral answer gets a point of 3. 1 year, which are also owners. In this stu-
The answer agrees to get a value of 4. dy, the sample size was based on Ros-
Answer strongly agrees get a value of 5. coe's opinion, if the research was related
Operational Definition of a Variable to multivariate analysis (correlation ana-
To explain the variables that have be- lysis or multiple regression), the sample
en identified, it is necessary to have an op size should be several times, usually at
erational definition of each of them as an least 10 times the number of variables
effort to understand the research. The defi studied [20]. Based on the operationaliza-
nitions of variables studied are in Table 1. tion of the variables in table 1, there are
five variables, so that the number of rese-
Table 1. Variable Operationial arch subjects is at least 51 respondents. In
Operational Measurement
Variable
Definition Scale this study, 80 questionnaires were distri-
buted via Google Form, this number can
85Proceeding of IICSDGs 2020 Muhammad Zuardi
E-ISSN: 2654-8690, Vol. 3, No. 1, November 2020
meet the predetermined requirements be- variable. The greater the coefficient of de
cause the minimum number of respon- termination, the better the ability of vari-
dents is 51 people. able X to explain variable Y. Simple Reg-
Data Collection & Analysis Techniques ression Analysis was processed with soft-
Data Collection Techniques ware SMART-PLS
The questionnaire is a list of questions RESEARCH RESULT
to be filled in by respondents, namely Figure 2. Results of data processing
owners or sellers of MSMEs.
Documentation studies, collect data and
information from books, journals and
the internet related to research.
Data Analysis
To analyze the magnitude of the rela- The level of significance of the online
tionship and the influence of the indepen- marketing strategy for sales is 0.324 or
dent variables with the dependent variab- greater than 0.05. This shows that the
le, a simple regression test was used [22]. online marketing strategy did not signifi-
To get more targeted results, the SMART cantly increase the sales of MSMEs in
PLS software is used. The regression Medan City during Covid-19 Pandemic.
equation is:
Figure 3. Result Value R-Square
Y = α + ꞵ1X1 + ε
Y = Sales
α = Constant
ꞵ = The regression coefficient to be sear-
ched for
X = Online Marketing Strategy variable In Figure 3, it can be seen that the
score value of R-Square shows the number
ε = Error 0.105, this shows that the sales of MSME
in Medan City during the Covid-19 Pan-
Simple regression analysis also res- demic of 10.5% can be explained or influ-
ults in hypothesis testing. This test is also enced by the Online Marketing Strategy,
known as the simultaneous significance while the rest is explained or influenced
test. Test basically shows whether the in- by other variables.
dependent variables used in the model ha-
ve an influence on the dependent variable CONCLUSION
[22]. Decision Making Criteria: From the results of the analysis and
discussion, it is concluded that online mar
H0 diterima jika α > = 5% keting strategy does not significantly inc-
Ha diterima jika jika α < 5% rease MSME sales in Medan City during
Simple regression analysis produces the Covid-19 Pandemic. 10.5% of MSME
the coefficient of determination, which is sales in Medan City During the Covid-19
a measure to determine the suitability or Pandemic can be explained or influenced
accuracy of the relationship between the by the Online Marketing Strategy, while
independent variable and the dependent the rest is explained or influenced by ot-
variable in a regression equation. In other her variables.
words, the coefficient of determination
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Pandemic Covid-19
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