Implementation of Marketing Mix Strategy on over the Counter (OTC) Drug At Rizki Mahakam Farma 1 Pharmacy, Kota Bangun

Rizki Mahakam Ripaldi, Siti Jubaidah, Husnul Warnida, Heri Wijaya*

Sekolah Tinggi Ilmu Kesehatan Samarinda, AW Syahranie Street, Number 226 Samarinda, East Borneo, Indonesia

*Corresponding Author’s Email: heriwijaya.luc@gmail.com

Abstract

Introduction: Pharmacies need to manage marketing activities to support pharmaceutical services to increase consumer satisfaction. Consumer satisfaction can be improved with a marketing mix strategy approach (Marketing Mix). Objective: Determine how consumers respond to rizki mahakam farma 1 pharmacy's marketing mix aspects. Method: This study uses descriptive data analysis and is not experimental. This study's subject is consumer reactions to the marketing mix strategy at rizki mahakam farma one pharmacy, Kota Bangun. The sample for this study consisted of customers who bought medications without a prescription from a doctor (over-the-counter medicines). Results: Consumer response analysis of marketing mix strategies, according to the study results, for consumer reaction products by 4.54, prices of 3.7, locations of 4.58, and promotions of 4.23, all elements are classified as “very good.” The results of the Spearman rank test found no significant relationship between the consumer response to marketing mix strategy (marketing mix). Conclusion: All of these elements fall within the "very good" category, thus we can conclude that they are all excellent.

Keywords: Pharmacies; Marketing Mix; Response; Kota Bangun

Introduction

Borden came up with the pharmaceutical marketing mix in 1964. Its main parts are the product, price, place, and promotion (collectively coined the 4Ps of marketing) (Ding, Eliashberg &, Stremersch, 2016), The quantity has increased to seven with the passage of time: product, price, place promotion, people, process and physical evidence. (Kotler & Kevin, 2016). Marketing mix are linked to each other to makes the product reaches to the consumers (Ahmed et al., 2014). The business world must be connected to pharmacy marketing activities and drug salesIt increased consumer purchases at pharmacies benefitting attempts to boost revenue and enhance customer service. The buying decision increases as the marketing mix's effect increases (Kusumaningrum, 2016). Pharmaceutical demand is influenced by many factors, such as health awareness and the quality of treatment provided (Al Shaikh et al., 2019). Marketing strategy is the driving driver when it comes to satisfying consumer expectations and developing a long, profitable relationship with them. The marketing mix serves as the theoretical foundation for the development of marketing- management process activities (Festa et al., 2016). Consumer satisfaction is the consequence of an emotional response to an evaluation (feeling happy and satisfied) (Jubaidah et al., 2021). To face the emerging competition, various strategies are needed. This strategy can later influence a consumer's purchasing decision in shopping for drugs at a pharmacy. The strategy that can be taken is the 4P marketing mix strategy which consists of product, promotion, price and place (Adi & Wicaksono, 2019). Wijaya performed research on the consumer response to marketing mix approach at numerous pharmacies in Samarinda City, it is found that place, price, product and promotion have a significant influence and most affect customer satisfaction (Wijaya et al., 2022). Rizki Mahakam Farma 1 Pharmacy is located in Kota Bangun Ulu Village in Kota Bangun District, Kutai Kartanegara. The pharmacy's position is particularly important because it is on the side of the main highway, easily accessible by public transportation or private vehicles. The drugstore is also near the hospital in a densely populated residential neighborhood. This pharmacy is open daily, and the average income level is very significant, namely 10 million per day, and an average of 2000 people visit each month. The key purpose of this research is to analyze customer perceptions through the marketing mix at Rizki Mahakam Farma 1 Pharmacy, Kota Bangun.

Materials and Methods

Study design and settings

This study was designed utilizing a prospective, non-experimental, and descriptive methodology. The subject of this study is the consumer response to Rizki Mahakam Farma 1 Pharmacy, Kota Bangun's marketing mix approach. Consumers who bought medications without a doctor's prescription made up the sample for this study (OTC medicines). The sampling method used was incidental sampling. The sample in this

study is 316 respondents, calculated using the Slovin formula with a margin of error of 5%. This study was conducted in April 2022. The questionnaire is used as a measuring tool which consists of four variables, namely Product, Place, Price and Promotion with 20 question. Data analysis was performed using SPSS (Statistical Package for the Social Sciences). Descriptive analysis was done on frequencies, and percentages while Spearman Rank Tests were utilized to determine the differences between groups

Results and Discussion

The results of the questionnaire's validity test can be seen in the correlation coefficient of each question for product components, price, location, and promotion, which obtained a value of 0.388, thereby establishing its validity. The Cronbach's alpha value for each component shows the results of the questionnaire reliability test, and it is reliable as evidenced by the values of 0.732 for the product component, 0.662 for price, 0.655 for place, and 0.607 for promotion.

Table 1: Socio demography

Characteristics of respondents based on age are shown in table 7. Most are aged 20- 30 years, with as many as 160 respondents with a percentage (53%). This is because, at that age, the awareness of seeking treatment and buying medicine when feeling sick is very high compared to other ages (Widodo & Yuniarto, 2012). According to table 1 above, most respondents had a high school degree or its equivalent, with the largest number of respondents having this background being 160 respondents a percentage (50.6%). This is in line with data from the Central Statistics Agency that the Kota Bangun Village area has the highest level of education, which is dominated by high school graduates with a total of 4,280 people (BPS, 2019). On the characteristics of income, respondents who have the most significant percentage of respondents income Rp. 2,000,001-2,500,000, with a total of 90 respondents with a percentage of 28.5%. The income level every month can describe the level of the family's economy, where this economy greatly influences a person's pattern of life. According to Schiffman and Kanuk (2004), education, employment, and income have a causal relationship. So indirectly, this will also affect one's satisfaction. Consumers will look back at the economy's ability to make product purchase decisions. The price- quality will be a benchmark for which product to buy (Husein, 2022).

Table 2: Results of consumer feedback on products, prices, locations, and promotions

Based on table 2 above, consumer response to the products offered, product quality assurance, availability, and information about the products purchased. The results of research on respondents, namely as many as 248 (78%) consumers stated "Very Good". The product you are looking for is always available at this pharmacy because the Rizki Mahakam Farma 1 Pharmacy not only provides medicines but also offers various types of products such as health supplies, cosmetics, baby needs, and medicines not only provides for one brand trade. The quality of pharmaceutical products offered to consumers is excellent, including packaging that is not damaged, dull, or expired. This is because the pharmacy always maintains and pays attention to the quality of pharmaceuticals and other products. The packaging is always maintained and checks the expiration date every three months to avoid losses due to damaged and expired products. Consumers who have purchased pharmaceuticals and other products can be exchanged or return if the drug received is damaged or expired. Marketing Mix strategy through Products is an important part, where new buyers want to buy a product if they feel it is right to buy it. This means the product must adapt to the buyer rather than the buyer who adapts to the product (Benyamin, 2019). When choosing one or more products, consumers will first evaluate the attributes and benefits provided by each product. They will choose products that provide maximum satisfaction for consumers (Pane, 2018).

Based on table 2 it can also be seen that the price parameter gave a "good" response, namely 159 respondents (50.3%). The price of products sold at the Rizki Mahakam 1 pharmacy is cheaper than other pharmacies in Bangun City. There are discounts or discounts given to certain products. The only marketing mix component that generates revenue or income for the business is price. To compete successfully, a company must try to achieve the objective of attracting and keeping customers. To accomplish this goal, the business must be able to determine the proper and fair price for the goods or services it sells. Price is often considered a picture of the quality of an item or service. Price has a strong influence on consumer satisfaction which causes the number of visitors and Pharmacy revenue to decrease. This is reinforced by research conducted by Pertiwi (2014), which states that price significantly influences consumer satisfaction. Pricing is very important to note, because price is one of the causes of increased sales of the products and services offered (Selang, 2013).

On the location parameter, a very good response was obtained by 263 respondents (83%). Rizki Mahakam Farma 1 Pharmacy is situated on the side of the primary highway. The pharmacy is approximately 1 km from the hospital and is located in a densely populated residential area, making it easier for consumers to access the pharmacy due to its strategic location. Consumers who visit the pharmacy, on average, are consumers who live around the pharmacy. Rizki Mahakam Farma 1 Pharmacy was established to meet the needs of medicine and self-medication for people in the Kota Bangun area. The pharmacy is easily accessible via public and private transportation, and this makes it easier for individuals to obtain the medications they require. A safe environment around the pharmacy makes consumers feel comfortable shopping at the Rizki Mahakam Farma 1 Pharmacy. The location has an important role in marketing because it is related to after and before making purchasing decisions made by customers (Farida, Tarmizi, & November, 2016).

Consumer response to promotions carried out by Rizki Mahakam 1 pharmacy was very good, with 193 respondents (61%). Rizki Mahakam Farma 1 Pharmacy often carries out promotions through social media, such as through Facebook media, as promotions for supplements or multivitamins, certain product promos that get gifts. Social media are online platforms that encourage interpersonal communication through web-based technology, transforming communication into interactive dialogue (Suryani, 2014). According to Adiasari & Lastariawati (2017), marketing through social media aims to build relationships, brands, publicity, and promotion to customers.

Table 3: Spearman rank results

From table 3 above it is known that the correlation number above does not have the desired result, namely the relationship between variable Marketing mix and variable consumer response. The results of the analysis above obtained a very low or very weak correlation coefficient. This means that the relationship that occurs does not show a significant relationship.

Conclusion

A good marketing mix strategy in pharmacy practice because the heart of the business is in the marketing mix. Our results confirm that the marketing mix strategy for placement, promotion, and pricing is a significant in-service orientation at the Rizki Mahakam 1 pharmacy. However, it does not show a significant relationship when viewed from the Spearman rank test.

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