ANALYSIS OF EFFECT OF PROMOTION COSTS AGAINTS BUSINESS SALES

VOLUME AT SMALL AND MEDIUM ENTERPRISES ( SME ) ZONA MAHAR IN

CIKARANG

Authors :

Miftakhul Huda
huda.sobari@gmail.com
Daspar
dazfaroe@gmail.com
Nasrun Baldah
rurun_saja@yahoo.com

Abstract
In determining the most effective marketing strategy is a task of marketing management. With proper
implementation of promotional strategies are expected to be able to determine its effect on the volume of sales, and
how much the results obtained as a result of funds expended for such promotional activities.
The purpose of this study to determine the relationship between the cost of promotion to sales volume in
the Zone Mahar. In addition to knowing the extent of the effect on the volume of sales promotion costs in the Zone
Mahar.
The hypothesis of this study is that there is a positive influence between the cost of promotions to
increase sales volume in the Zone Mahar. While the analysis tools used in this study is the normality test, simple
correlation analysis, simple linear regression analysis, and test t.
Based analysis results, it can be concluded that the simple correlation analysis obtained correlation
between the cost of the promotion by sales volume is 0.944. This shows that there is a very strong relationship
between the cost of the promotion by sales volume, while the direction of the relationship is positive for positive r
value, meaning the higher promotional costs incurred, it will increase the volume of sales. Based on simple linear
regression analysis can be seen that the value 25010.372 is constant, meaning that if the variable costs remain
constant promotion of the sales volume achieved is 25010.372. Regression coefficient of the variable cost of sale
(X) of 7.618 means that if the cost of sale increased to Rp 1, - the volume of sales (Y) will be increased by Rp. 7618.
coefficient is positive, it means there is a positive relationship and a very strong influence of the volume of sales
promotion costs, the rising price of the greater increase in sales volume. Based on the results of the t test, the value
of t> t table (4.967> 4.303), then Ho is rejected, it means that there is a significant effect between the cost of the
promotion by sales volume. So the authors draw the conclusion that the cost of the promotion effect on the volume
of sales in the Zone Mahar.
Keywords: cost of promotion, sales volume

Introduction
Small and Medium Enterprises ( SMEs ) Zona Mahar was established by Mr. Karjono in 2009. The
business establishment stems from the many requests from friends Mr Karjono to decorate their wedding dowry in
the event , and get a positive response , which raised initiative to pursue business this seriously .
When first established Mr. Karjono take care of all their business activities itself and only helped by his wife. While
the production capacity of an average of just one unit per month with a design which is still modest .In a further
development the company makes the design more diverse and varied dowry . In subsequent years Mahar zone
capable of producing an average of 30 to 35 units per month . Mahar SME Zone is located in Lake Hope Housing
Block J14 No. 04 Pure Ponds , West Cikarang , Bekasi.
Promotion by Zona Mahar among others :
a. Promotion
In marketing their products , SME Zone Mahar use personal selling promotional media , but the SME Zone
Mahar in carrying out promotional activities not only focus on one kind of promotion.
b. b . Rebate ( discount)
Provide rebates on certain moments . Giving rebates was conducted on SME Zone Mahar will enter a new
market or are there other similar efforts that attempt to usurp market share Zona dowry .
c. price fixing
 Pricing is done by SME Zone Mahar using the method of Cost Based Pricing , a method of pricing based
on cost .
d. Distribution channel
Distribution channels made by the SME Zone Mahar is basically a direct distribution channel . Direct
distribution channel are sales made directly from the salesman to the consumer.
Recap of Costs of Promotion and Sales Volume
In the SME Zone Mahar
( The period of 2010 s / d 2014 )
Numbe Year Cost of Promotion (X) Volume of Sales (Y)
r
1 2010 7.155.000 86.000.000
⁸ 2011 11.300.000 96.500.000
3 2012 17.350.000 154.000.000
4 2013 14.900.000 136.200.000
5 2014 15.300.000 155.200.000
Source : Primary Data SME Zone Mahar
Based on that data, the authors can provide the following explanation:
a. In 2010 SME Zone Mahar issued a total promotional cost of Rp. 7.155 million, while the sales volume
gain of Rp. 86.000.000.
b. In 2011 the total cost of sale amounting to Rp. 11.3 million, this means that there is increase in
promotional costs Rp. 4.145 million. Likewise with the sales volume increased by Rp. 10.500.000 from the
previous year of Rp. 86.000.000 to Rp. 96.5 million.
c. In 2012 the total cost of sale amounting to Rp. 17.35 million, meaning there is an increase of Rp.
6.050.000. Total volume sales gained Rp. 154 million, this means that there is an increase of Rp. 57.5
million.
d. In 2013 total promotion cost Rp. 14.9 million, a decline of Rp. 2.450.000. Total volume sales gained Rp.
136.200.000, is also decreased by Rp. 17.8 million.
e. By 2015 the total cost of sale amounting to Rp. 15.300.000, means there is an increase of Rp. 400.000.
Total volume sales gained Rp. 155.200.000, there is an increase of Rp. 19.000.000

Literature Review
According to Philip Kotler and Armstrong quoted pustakasekolah.com , marketing is as a social and
managerial process that makes individuals and groups obtain what they buthkan and want through creating and
exchanging products and value reciprocity with others . In the context of a more narrow business , marketing
includes creating a value-laden exchange relationships with profitable customers . Therefore , the definition of
marketing is the process by which companies create value for customers and build strong relationships with
customers with the aim to capture value from customers in return .
The definition of promotion according to Kotler and Armstrong (2004 : 79 ) are all activities that
communicate the benefits of the product and persuade target customers to buy it.
The definition of promotion according to Kotler (2005 : 298 ) is a collection of incentive tools , mostly
short-term , which are designed to stimulate the purchase of specific products or services faster and bigger by the
merchant . While the definition of sales promotion by Swastha Basu (2002 : 279 ) is the marketing activities other
than personal selling , advertising , and publicity that encourages consumers and traders purchasing effectiveness by
using tools such as the demonstrations , exhibitions , demonstrations and so forth .
According to the private sector ( 2005: 86 ) , promotion costs are the costs used in the process of
information flow in one direction or persuasion made to say a person ( organization to act that created the exchange
in marketing ) .
According Private Basu (2005 : 6 ) , defined as the sale of human effort is made to deliver the goods for
those in need in exchange for money according to the price determined by mutual consent . Meanwhile, according to
Kotler (2003 : 17 ) the sale is the interaction between individuals meet each other face intended to create , improve ,
control or maintain the exchange relationship so favorable to the other party .
Of the two definitions mentioned above can be said that the sale is the work done by offering a product to
consumers with the hope of gain . While the sales volume that is used in a certain time period that can be obtained in
a unit of a good .
The purpose of the promotion mix is to increase sales and profit growth . This means that promotional
mix has an influence on the sales volume . Companies in the market the product so that the product quickly
recognized by consumers , the mix of promotional activities need to be done . Because if the sale is not done then
the consequences very few people who know the goods that result in decreased demand .
Promotional mix done effectively led to the public demand for goods is increasing . This means that increasing the
level of sales and profits we earn.
Thus it was obvious that the relationship between the promotional mix and sales volume are interrelated with each
other .

Methode
In analyzing the effect of the cost promotion to increase sales volume , then use the analysis as follows :
1. Normality Test
Normality test is used to determine whether a normal distribution of data or not . To know the data is normal or not
one of them by statistical parametric test Kolmogorov -Smirnov test ( K - S ) . Test ( K - S ) do degan make
hypotheses :
Ho : Data residual normal distribution
Ha : residual data is not normal
If the probability value > 0.05 , then Ho is accepted and if the probability value < 0.05 , then Ho is rejected .
2. Simple Correlation Analysis
Simple correlation analysis ( bivariate correlation ) is used to determine the relationship between two variables and
to determine the direction of the relationship . Simple correlation coefficient indicates how much the relationship
between two variables .
The correlation coefficient can be formulated as follows :

n
∑ xy−¿ ( ∑ x ) ( ∑ y )
√[n ∑ x 2−(∑ x) ²][n ∑ y 2−(∑ y )² ]
r=¿
Information :
r = correlation coefficient
n = number of samples
x = cost of sale
y = volume of sales
The correlation coefficient is a value to measure the strength of the relationship between the variables x
and y , the magnitude of y between -1 to 1. If the value of r = y or y approached the relationship between these two
variables there is no relationship at all , if the correlation r = -1 said to be very strong .
If r is positive then the correlation between the two variables are unidirectional , in other words the increase or
decrease in the value of x occurs together with the value of y . If instead , r is negative then the increase niai x
occurs together with a decrease in the value of y .
3. Simple Linear Regression Analysis
Simple linear regression analysis aimed to determine the direction of the relationship between the independent
variables ( cost of sale ) with the dependent variable ( sales volume ) whether positive or negative . Besides the
simple linear regression analysis also aims to predict the value of the dependent variable when the independent
variables increase or decrease .
Simple linear regression analysis with the following equation :

Y =a+bx

Information :

Y = Dependent Variable ( Bound )

X = Independent Variables ( Free )
A = Constant ( Value Y when X = 0 )
B = The amount of change in Y when X increases 1 unit
4. T tests were used to determine whether the independent variables ( cost of sale ) significantly influence the
dependent variable ( sales volume ) , with the steps the test as follows :
a. Determining the null hypothesis and the alternative hypothesis .
b. Determining the level of significance ( α ) = 0.05
c . Criteria Testing

Research Result
1. Normality Test
Normality test is done to determine whether the variables analyzed meet the criteria of the normal distribution or
normal distribution . Based on the analysis , it can be shown in table below:
 Normality Test Results
One Sample Kolmogorov - Smirnov Test

Kolmogorov-Smirnova Shapiro-Wilk
Statistic Df Sig. Statistic Df Sig.
Volume Penjualan ,228 5 ,200* ,851 5 ,199
Biaya Promosi ,264 5 ,200* ,927 5 ,574
*. This is a lower bound of the true significance.
a. Lilliefors Significance Correction
Source : Data Processing Results
2. Simple Correlation Analysis
Simple correlation analysis is used to determine the relationship between the variable cost of sale by
sales volume . Based on the analysis , it can be shown in the following table :

Simple Correlation Analysis Results

Correlations

Volume
Biaya Promosi Penjualan
Biaya Pearson Correlation 1 ,944*
Promosi Sig. (2-tailed) ,016
N 5 5
Volume Pearson Correlation ,944* 1
Penjualan Sig. (2-tailed) ,016
N 5 5
*. Correlation is significant at the 0.05 level (2-tailed).
Source : Data Processing Results
3. Simple Regression Analysis
Simple regression analysis is the analysis used to determine the direction of the relationship between the
independent variables ( cost of sale ) with the dependent variable ( sales volume ) whether positive or negative .
Based on the analysis of data that has been processed with SPSS program , it can be shown in the following table :
Simple Linear Regression Analysis
Coefficientsa

Standardized
Unstandardized Coefficients Coefficients
Model B Std. Error Beta T Sig.
1(Constant) 25010,372 20984,627 1,192 ,319
Biaya Promosi 7,618 1,534 ,944 4,967 ,016
a. Dependent Variable: Volume of Sales

Based on simple regression analysis are shown in the table above , the regression equation is as follows :
Y = a + bX
Y = 25010,372 + 7,618X
4. T Test
T tests were used to determine whether the independent variables ( cost of sale ) significantly affect the independent
variables ( sales volume ) . Significant means that the effect which occurs can apply to the population ( can be
generalized ) .
Based on Table 4.5 can be described as h / below:
Menentukkan null hypothesis and the alternative hypothesis
Ho : β = 0 , meaning there is no significant effect between X ( cost of sale ) to Y ( sales volume ) .
Ha : β ≠ 0 , meaning that there is significant influence between X ( cost of sale ) to Y ( sales volume ) .
Menentukkan signikansi level with degrees of freedom or df = n - k - 1 = 5-2 - 1 = 2 ≈ 4.303 .
criteria Testing
Ho accepted if T_ ( arithmetic ) ≤ t_tabel
Ho rejected if T_ ( count ) > t_tabel

`Daerah Penolakan Ho Daerah Penolakan Ho

Daerah Penerimaan Ho

-4,303 4,303

Discussion
1.Normaly Test
From processing the data above, it can be seen in the Kolmogorov - Smirnov column and it is known that
significant value to the sales volume of 0.200 ; for promotion of 0.200 . Because of the significance for all variables
is greater than 0.05 , it can be concluded that the data on sales volume variable , normally distributed promotional
costs .
2. Simple Correlation Analysis
From the results of simple correlation analysis obtained correlation between the cost of promotion and
sales volume is 0.944 . This shows that there is a very strong relationship between the cost of promotion and sales
volume , while the direction of the relationship is positive because the value of r is positive , meaning the higher
promotional costs incurred , the more it will increase sales volume .
3. Simple Analysis Regression
To interpret the results of the analysis , can be explained as follows :
a. 25010.372 is a constant value, it means if the variable cost of sale remains constant , the volume of sales
achieved is 25010.372 .
b. b ) The regression coefficient variable cost of sale ( X ) of 7,618 means that if the cost of sale increased to
Rp 1 , - the volume of sales ( Y ) will increase by Rp . 7618 . coefficient is positive, it means there is a
positive relationship between the cost of promotion and sales volume , growing up in price then the
increase in sales volume .
4. T Test
Calculating the value of T
T = b / Sb
= 7.618 / 1.534
= 4.967

Conclusion
Based on the results of the data and the discussion that has been carried out, the conclusions that can be drawn as
follows:
1. Results of normality test of significance to note that the value of the sales volume of 0.200; for promotion of
0.200. Because of the significance for all variables is greater than 0.05, it can be concluded that the data on sales
volume variable, normally distributed promotional costs.
2. Based on a simple correlation analysis obtained correlation between the cost of promotion and sales volume is
0.944. This shows that there is a very strong relationship between the cost of promotion and sales volume, while the
direction of the relationship is positive because the value of r is positive, meaning the higher promotional costs
incurred, the more it will increase sales volume.
3. Based on the simple linear regression analysis showed that the value 25010.372 is constant, meaning that if the
variable cost of sale remains constant, the volume of sales achieved is 25010.372. The regression coefficient
variable cost of sale (X) of 7,618 means that if the cost of sale increased to Rp 1, - the volume of sales (Y) will
increase by Rp. 7618. coefficient is positive, it means there is a positive relationship and a very strong influence
between the cost of promotion and sales volume, growing up in price then the increase in sales volume.
4. Based on the results of the t test , t count > t table ( 4.967 > 4.303 ), then Ho is rejected , it means that there is a
significant effect between the cost of promotion and sales volume . So the authors draw the conclusion that the cost
effect on the promotion of sales volume in the SME Zone Mahar.

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