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Market changes are increasingly unpredictable, businesses need to adapt. The law of the jungle applies, those who can adapt will survive. Those who can survive are inseparable from the role of strategic leadership in their business operations.

Strategic leadership plays an important role in navigating an increasingly dynamic market. Every leader, whether at the managerial or top executive level, needs to implement it. Strategic leadership helps leaders direct their organizations towards a big vision and inspires everyone in the organization to move together towards that big vision.

Strategic leadership is not only for large companies, even UMKM level businesses need to implement it. There was a research conducted by students of the Bandung State Polytechnic on a population of 557 restaurants and cafes in Bandung Wetan Regency to test how the role of strategic leadership implementation affects the competitive strategy of UMKM restaurants and cafes.

The results of the study on 50 UMKM samples from 557 UMKM restaurant and cafe populations showed that there was a positive correlation between strategic leadership and competitive strategy. Strategic leadership has an influence of 16.08% on the competitive strategy of UMKM restaurants and cafes.

MSME businesses have started to improve themselves by implementing strategic leadership in facing market changes. Has your business started implementing it? The following will explain how the role of strategic leadership can help your business survive amidst dynamic and unpredictable market changes.

Business Challenges Due to Market Changes

Do you still remember how your business survived when COVID-19 paralyzed many businesses? However, on the other hand, there are businesses such as digital businesses that are actually growing. From COVID-19, there is a big lesson that businesses need to be prepared for all kinds of factors that can shake the market. Not only preparing, but also adapting in order to survive.

Moreover, with the current conditions, the change in government leadership has made many policies that have an impact on the people's economy. It is still fresh in the memory, how the budget efficiency policy for many ministries also has an impact on the people's economy because budget efficiency means reducing state spending so that it can have an impact on MSMEs or companies that usually partner with the government.

Market changes will always exist and businesses cannot avoid them. The factors that influence it vary from social, economic, political, technological factors, to changes in market preferences.

Market changes can cause a business to lose its relevance in the market. We can learn from Kodak's bankruptcy. Who didn't know Kodak in the past? Kodak has been a market leader in photography. However, as technology has developed, Kodak has been late to innovate. The market already likes digital photography, but Kodak still sticks with its products that have not utilized digital technology. So that its products can no longer be relevant to the market and are abandoned.

Not only does it make a business irrelevant, the implications of market changes are very large for businesses and become challenges that need to be conquered. Here are some challenges that need to be addressed from this dynamic market change.

1. Uncertainty and Business Risk in Sight.

Market changes often come with high uncertainty, such as regulatory changes, economic fluctuations, or rapidly changing consumer trends. This can cause confusion in decision making and risks that are difficult to predict.

2. Delay in Responding to Market Changes

Companies that do not have strong strategic leadership often struggle to respond quickly to market changes. This can leave them behind competitors who adapt more quickly. 3. Loss of Competitiveness

Market changes cause shifts in consumer preferences, new technologies, or industry regulations that can make a company’s products or services less relevant.

4. Decreased Productivity and Efficiency

When markets change, companies may find it necessary to change their operating models. Existing processes and systems may no longer be efficient or effective in dealing with new situations, which can lead to decreased productivity.

5. Loss of Focus on Long-Term Vision

Companies can get caught up in short-term efforts to survive in a changing market, losing focus on their long-term vision and goals. This can lead to a loss of direction and an unintegrated strategy.

6. Decreased Employee Motivation and Morale

When market changes cause uncertainty or confusion, employees can feel anxious and less motivated, which impacts team morale and performance.

7. Challenges in Resource Management

Market changes can affect the demand for certain products or services, causing imbalances in resource management, whether in terms of labor, raw materials, or capital.

8. Difficulty in Maintaining Customer Satisfaction

Changes in customer preferences or competitor innovations can make it difficult for companies to maintain customer satisfaction and loyalty.

9. Difficulty in Collaborating with Business Partners

Market changes can affect a company's relationship with business partners or suppliers, for example, due to uncertainty in supply or shifts in product demand.

10. Difficulty in Managing Organizational Change

When the market changes, companies often need to change their organizational structure, internal processes, or work culture. These changes can trigger resistance from within the organization.

How Strategic Leadership Plays a Role in Adapting to Market Changes

Like a ship sailing the ocean, sometimes the captain will be faced with ocean conditions with calm, moderate, to stormy waves. As long as the captain already knows the destination he is going to, he will do everything he can to sail the ocean. A clear goal will move the crew to help him navigate the ship so that it arrives safely at its destination.

Leading a business is like the captain of the ship. The main characteristic of a leader who has strategic leadership skills is that he has a strong vision and passes on the spirit of achieving that vision to the people he leads. A strong vision becomes the mainstay when market changes occur. If there is a change, the leader can navigate to take another path so that he can still achieve that vision. So that the vision that is formed is not a short-term vision, but a long-term one. In the previous section, we have seen how market changes impact the existence of a business. The impact not only affects the amount of income received by the business, but also affects how the business operates. Therefore, here are some roles that you can take over to implement strategic leadership so that businesses or companies can continue to survive in the turmoil of market changes.

1. Preparing for Change and Adaptation

A leader who has strategic leadership skills will have the sensitivity to be able to predict market trends and consumer needs that change dynamically. Because they are always used to thinking about long-term visions, their view of the market is not only focused on the present, but also predicts how the market will be in the future.

The sensitivity of a person with strategic leadership will navigate their company to try to adopt new technologies, build a culture of innovation in their company, or adjust their business model to adapt to market changes.

2. Making the Right Decisions in Times of Crisis

Market changes are unpredictable from year to year, even market trends this month can be different from next month. When change is already visible, you as a leader need to be responsive, fast, and precise in making decisions.

Decisions taken in the near future should not be careless. Because making the wrong decision will take the business in an undesirable direction.

3. Increasing Organizational Agility and Flexibility

Rigid bureaucracy makes business slow to run. This is common in large corporations, making the organization inflexible to respond to change. Businesses need to build an agile organizational culture, where teams can quickly adapt to changes and new challenges. This includes adjusting business processes, product development, or even changes in the way they communicate with customers.

Businesses can adopt the startup method in developing their business models and products. Startups will usually test whether their products sell in the market by creating an MVP (Minimum Viable Product) or a simple version of their product but still functional. From the MVP, they will get feedback from consumers for further development.

4. Inspire Innovation and Creativity

Innovation is the absolute key to surviving market changes. Innovation doesn't always have to create something new. Innovation can start from updating what already exists. For example, updating how to use it or something like that.

You need to grow a culture of innovation as a leader to the team. Provide open space for the team to express and convey their innovative and creative ideas without any justification. An environment that supports innovative and creative ideas can support creative experiments and solutions, which can lead to the development of new products or services that are relevant to changing market needs.

5. Building Strong Relationships with Stakeholders

Business is not just about you, your team, and your customers. Business is an interconnected ecosystem. There are investors, customers, employees, suppliers of raw materials, business partners, and even the surrounding community. One of the things that keeps a business going in an era of dynamic market changes is because of the close relationship between the business and stakeholders.

Leaders who have strategic leadership will ensure a more transparent and mutually beneficial relationship with business partners, and collaborate to find joint solutions in dealing with market changes. Effective leaders can maintain open communication and manage their expectations well, which in turn will strengthen the company's position in the market.

6. Focus on Long-Term Vision and Mission

Having a long-term vision and mission allows businesses to determine what steps need to be taken to achieve that vision and mission. Even if market changes occur, they can flexibly adapt in other ways as long as the vision and mission are long-term visions and missions.

A long-term vision and mission make you as a leader not only focused on short-term profits, but more on the sustainability and growth of the company in the longer term.

It's Time to Prepare Leaders with Strategic Leadership Early

Market changes will continue and never end. Never be satisfied with your current business. Leave room to continue to innovate and adapt to market changes that are often unpredictable.

In the business world, there is no definite key to survival because everything is dynamic. The main key lies in the leadership milestones in the business itself. In order for your business to remain relevant and survive and even thrive in a dynamic market, business leaders need to have strategic leadership skills.

Leaders who have strategic leadership skills can provide clear direction and ensure that the company can adapt quickly to external changes such as technological developments, changes in consumer preferences, economic fluctuations, and global competition.

Has your business implemented this strategic leadership? If not, there is no right time to start it other than now. Don't wait for the right time. Because the right time is now.

Learn strategic leadership from those who are experienced, such as following a program from Prasmul-Eli who has experience handling national, BUMN, and multinational company clients.

There is a short program from Prasmul-Eli on how to become an effective leader for those of you who want to hone your strategic leadership skills in terms of creating strategies to achieve organizational goals and how to mobilize teams to work together towards those goals. If you want a program that can be personalized to your company's needs, you can request a corporate program service from Prasmul-Eli. This corporate program service will be specifically designed to meet your company's needs.

Nowadays, times are changing rapidly, which of course affects the industry and the companies that operate in it. This change will also affect the company's targets and operations. The key to ensuring that the implementation of change runs smoothly is a leader with agile leadership.

Agile leadership will play a role in driving innovation and creating a solution-oriented work environment for various new challenges. In addition, it can also help employees work more efficiently, effectively, and productively.

So, what is agile leadership, what are the characteristics, and how to develop it? Learn more below!

The Meaning of Agile Leadership

Agile leadership is a type of leadership that prioritizes flexibility, collaboration, and a proactive approach in dealing with change.

Path to Agility calls it a type of leadership that every manager to business owner must have in a fast-paced business environment. The goal is of course to ensure that the business remains competitive by being more flexible and adaptable to the times.

Agile leadership is not only tasked with ensuring that changes can be implemented properly, but also ensuring that these changes have a positive impact on the business, team, and that profitable innovation occurs. This type of leadership will also change the way companies make decisions.

Previously, you might have waited for input and decisions from your manager before making a choice, without hearing input from other team members. In agile leadership, you are encouraged to have more open communication and be willing to hear input from team members, not just from your manager.

This way of working is believed to increase effectiveness, support business growth, ensure employee contribution and development, and prioritize people over processes.

In addition to making decisions, there are five other characteristics that agile leadership must have.

Characteristics of Agile Leadership

According to Betterworks, here are the characteristics of agile leadership:

Adaptable

Agile comes from the word agility which means flexibility and the ability to adapt. That way, agile leadership will see change as an opportunity rather than a disruption.

This type of leader will create an experimental culture where teams are encouraged to try new approaches and learn from failure.

Visionary

A leader with agile leadership is a visionary figure. As mentioned in the previous point, this type of leadership sees change as an opportunity to grow and become better in the future.

They will not hesitate to change their vision to suit the interests of the company and industry. This type of leader also thinks about the development of their team while working at the company. They will empower each individual to improve their skills and qualities.

Resilient

Resilient means agile leadership does not easily give up or retreat when facing difficulties or challenges from a change. This type of leader will continue to think of creative solutions and innovations to solve the challenges faced.

Especially in an increasingly competitive industry, companies will look for agile managers or leaders to ensure their business targets are met.

Empowering their team

In addition to themselves, an agile leader will empower their team. Starting from clear direction and high trust in their team. Agile leadership will encourage their team to be able to make good decisions through collaboration and discussion.

Today's companies also support ownership, accountability, and ongoing development. In addition to providing trust, this type of leader will facilitate this without micromanaging.

Committed to development

With confidence and commitment to the development of themselves and their team, an agile leader will receive feedback from their team. They will use this feedback to learn and change their mindset.

In addition, with new trends, changes in market conditions, and consumer needs, leaders with agile leadership will continue to learn to develop their skills.

Benefits of Agile Leadership for Business

Here are the reasons why businesses or companies must have leaders with agile leadership:

1. Increase team productivity, effectiveness, and efficiency.
2. More prepared and accepting of change in business.
3. Maintain and develop a collaborative culture within the team.
4. Be more adaptive to changing market conditions and consumer needs.
5. Increase employee retention and satisfaction rates.
6. Create a positive work environment and empower employees.
7. Support companies that want to pivot and stay competitive.

How to Develop Agile Leadership

Companies usually prioritize figures who are able to complete business targets and goals well to become leaders or managers. However, this person may not necessarily have the right qualities to be a leader, especially to develop agile leadership.

Therefore, to find figures who can develop agile leadership types, companies must prioritize those who are curious, adaptive to change, can communicate well, and are able to motivate their colleagues.

These figures can develop agile leadership in the following ways:

• Develop active listening and open communication skills.
• Lead by example, meaning being able to provide examples to team members in doing something.
• Be open to feedback and opportunities to learn.
• Develop collaboration, leadership, and trust skills in the team.
• Get used to experimenting and failing, then learning from it.

It can be concluded that agile leadership is a type of leadership that prioritizes flexibility and the ability to adapt. This type of leader will encourage his team to collaborate and create innovation.

Agile leadership will support the development of everyone in his team. If you get the chance to be a leader, of course this leadership style should be your reference in managing the team.

So, how do you form agile leadership characteristics and be able to motivate your team to see opportunities in change? You can learn best practices and have direct discussions with professional leaders in the world of work in the short program Team Leadership: Becoming Flexible Leaders from prasmul-eli.

Click here to register for the program now!

The difference between a boss and a leader can be seen in the way they make decisions in building a work culture, forming a team environment, and motivating employees.

A boss only focuses on ordering, controlling, and ensuring that tasks are completed. Meanwhile, a leader will motivate employees or their team to reach a higher level through collaboration and support.

Not only the culture and work environment, the difference between a boss and a leader will affect the success of employees and the company as a whole. If you get the chance to be a leader, learn the differences between a boss and a leader, as well as the impact that each brings to the team.

Summarizing The Speaker Lab and Monitask, here are six aspects that differentiate a boss and a leader.

Characteristics of a Boss and Leader

The most common characteristics of a boss are using the skills of their employees for personal gain, not prioritizing the emotional situation of employees, and micromanaging their team.

In addition, other characteristics of a boss include:

• Often scolding employees in public and even for trivial mistakes.
• Never praising or giving appreciation.
• Unfriendly even though they continue to force the team to work together.

Meanwhile, a leader has characteristics that inspire and lead their team with a clear vision and commitment. A leader is also able to:

• Direct his team to have the same goal.
• Leading by example, meaning the leader is willing to do the work that he delegates to his team.
• Prioritize team coordination and collaboration.
• Provide examples for doing work, strengthening collaboration, and motivation.

Other characteristics of a leader are recognizing the potential and skills of his team, then helping them to develop.

How Bosses and Leaders Motivate

Based on the characteristics of the boss in the previous point, you can already imagine how the boss motivates his employees in daily work activities. True, they will not hesitate to pressure and provide "lessons", with the reason of wanting to motivate their team to work better. Maybe the boss will also try to:

• Believe that pressure and reprimands are the best way to motivate.
• Deliberately find team mistakes to be used as reprimands.
• Threatening employees as a way to encourage them.

Different from that, a leader will motivate with a more personal approach. They will focus on small wins or small achievements of their team. In addition, the leader will motivate by:

• Providing measurable and clear targets and expectations.
• Providing support and direction when there are difficulties.
• Celebrating team or individual achievements no matter how small.
• Supporting the development of each person in the team.
• Listening to complaints and providing the best solutions.

Collaboration and Communication between Boss and Leader

The boss will encourage collaboration and cooperation within his team, but usually only his team is solid, while the boss still positions himself as a higher figure than his team. A boss will also not provide clear direction and communication, for example:

• Targets that often change and are unreasonable.
• Directions from the company owner are not conveyed well.
• Blaming the team when there is a mistake, even though his direction is not clear.
• Micromanaging his team when completing a project.
• Dividing the work unevenly, even though he does not help at all.

The most obvious difference from a leader is that he believes that one person is not enough to solve a problem. It takes collaboration and teamwork. Here's how a leader improves collaboration and communication within his team:

• Encourage innovation and a growth mindset.
• Motivate his team to express their respective opinions.
• Give the team confidence in carrying out tasks to making decisions.
• Ask for input from all team members.
• Delegate tasks well, so that no one burns out.

The Impact of Bosses and Leaders on Employees

The next difference between a boss and a leader is in the impact they have on their employees or team. The boss will see authority as an opportunity to pressure and influence employees, while the leader will use authority as a way to provide direction and examples to their employees.

The impact of a boss who pressures and influences employees is a feeling of being unappreciated, losing motivation, and no opportunity to develop.

Meanwhile, a leader will have a different impact, such as being appreciated, having their opinions heard, the opportunity to develop through certain projects, and clear direction and expectations will make employees motivated to work.

How Bosses and Leaders Deal with Change

A boss will always feel that his way of working is the most correct and best. As a result, the boss will have difficulty accepting change. With digitalization and changes in the direction of the company, there must be new plans and ways of working.

Employees, especially the younger generation, have creative ideas to optimize their work. Unfortunately, the boss will usually reject new methods and creative ideas. They will continue to enforce the way of working that has been done for a long time.

Meanwhile, a leader will easily adapt to change. They do not hesitate to accept input from all team members. Leaders will also prioritize creative problem-solving and learn and develop with their team.

Boss-led and Leader-led Work Environment

Finally, there is the difference between a boss and a leader in terms of the environment and work culture that is formed. A boss will create an uncomfortable work environment and culture, for example:

• No appreciation, only unconstructive criticism.
• The boss prioritizes close friends or company interests only.
• Encourages overtime policies, but only for his team.
• Problematizes small things like leave, the speed of response to messages from him, to not respecting employee privacy.

Different from that, a leader will create a safe and positive environment, for example:

• Prioritizes work-life balance.
• Appreciates the contribution of each individual in the team.
• Supports the development and aspirations of team members.
• Becomes a good listener and provides solutions to employee problems.

From the 6 aspects above, the difference between a boss and a leader is clear, right? In every office or company, you will definitely find one of them. Meanwhile, if you get the opportunity to be a leader, try to learn to be a leader and role model for team members.

How to form the characteristics of a leader and become a leader who motivates his team? You can learn best practices and have direct discussions with professional leaders in the world of work in the short program Team Leadership: Becoming Flexible Leaders from prasmul-eli. Click here to register for the program now!

When a company grows and more teams with different interests and goals collaborate, they need a single system or best practice so that projects can run smoothly. The Project Management Office (PMO) is a part of the company that can act as a mediator and ensure that collaboration between teams runs smoothly.

The PMO is tasked with increasing the efficiency and effectiveness of projects through the systems and best practices they have developed. Both of these will later become a guide and reference for all teams in the company to minimize challenges during collaboration.

In this article, learn in depth about the Project Management Office starting from the meaning, types, duties and responsibilities, to who is in it.

Definition of Project Management Office

The Project Management Office is a team that regulates collaboration between teams and prevents problems or obstacles. The PMO is also tasked with maintaining the quality of the project management process in a company, including business planning and company operations or in certain departments/teams only.

The PMO, citing Asana, has a role in determining how a product and service are made and distributed. In other words, the Project Management Office is the main support team that runs and manages projects from all or several teams in the company.

PMO can come from within or outside the company. What's the difference?

Internal PMO is an in-house team that supports the overall success of a project. They usually have an important role in determining the standard practices of a project.

While external PMO is an agency or consultant tasked with analyzing and providing input on the ongoing project management process. This input will be a consideration and new management method for the next project.

However, currently many companies already have internal PMO teams. So, how is PMO distinguished from other teams in the company?

• Small companies: usually there is 1 PMO team that standardizes project management practices for all teams or departments in the company
• Large companies: usually in large companies there are many different work systems and collaboration between departments is rare, so there will be many PMO teams formed based on the needs of each department.

Types of Project Management Office

Reporting from ProjectManager, usually from the four types of PMO below, a company will form a team that suits the needs or conditions of its project management. So, in one company, you might find 1 or a maximum of 2 PMO teams.

Here is an explanation of each type of Project Management Office:

Supportive PMO

Only focuses on mentoring, training, providing information, and support. However, this type of PMO does not play a big role in decision making. Supportive PMO will only provide input and structure for a project. Then, the project manager will decide whether the input is in accordance with the project plan and targets.

Controlling PMO

This type of PMO is the opposite of Supportive PMO. The Controlling PMO team will create and determine the project execution process and ensure that all teams have the same standards. They will create special guidelines and ensure that project managers run their respective projects according to these guidelines. This type of PMO even reviews or supervises so that the project runs according to the guidelines that have been made.

Directive PMO

This Project Management Office acts as a team that manages business initiatives and projects as a whole. So they will take over the project planning process, such as resource allocation, risk management, and project scope. Directive PMO also directly leads the teams in the company.

Enterprise PMO

The main purpose of an enterprise PMO is to ensure that projects are running according to the company's strategic goals. They will also determine the priority scale of projects based on their impact on business goals and create guidelines that can be adopted by the entire team in project management.

Enterprise PMOs also usually help companies to create and implement various tools and methods/approaches in project management. This team also plays a role in determining KPI targets and success metrics for a project.

Project Management Office Duties and Responsibilities

1. Create strategic plans and manage projects according to business targets.
2. Determine the approach to project management, including the framework used.
3. Standardize project management procedures and techniques for the entire team.
4. Provide training and mentoring to ensure that the entire team has the same understanding of the company's standard procedures.
5. Manage the resources needed to run the project.
6. Determine and manage administration, tools, and templates that are useful for improving project quality.
7. Conduct audits or reviews of ongoing projects to ensure that the process is in accordance with standards and benefits the company (including costs and benefits).
8. Support the decision-making process.
9. Manage documentation related to past projects and information about the company or business.

Who is in the Project Management Office?

A PMO team usually consists of several individuals with different roles. Here are some of them:

• Project Manager: creates project planning, including project scope, objectives, timeline, targets, and resources needed.
• Program Manager: oversees all projects and ensures they achieve the company's business targets or objectives.
• Portfolio Manager: oversees all projects to ensure alignment with business objectives and ensures resources are maximized in each project.
• Business Analyst: involved in the decision-making process to ensure projects have a positive impact on the company's business.
• Financial Analyst: manages and oversees the project budget.
• Risk and Compliance Officers: manages challenges faced by the project and ensures the project runs according to applicable rules and standards.

It can be concluded that the Project Management Office has an important role in ensuring the success of projects from various teams in the company. They will create project management standards and guidelines based on the company's business interests.

If your company does not have a PMO, you can learn how to manage projects and solve problems in a short program from Prasmul-Eli. Learn best practices and have a one-on-one discussion with experienced project managers in The Real Project Management program. Click here to register for the program now!

Endorsement is one of the increasingly popular marketing strategies in the digital era. This is the result of changes in consumer behavior that increasingly rely on third-party recommendations in determining product or service choices.

Endorsement is a very effective marketing tool because it is able to bridge brands with a wider audience, especially through social media. Not just promoting, endorsement also plays a big role in building a positive brand image, creating trust, and influencing consumer purchasing decisions.

However, the success of endorsement does not only depend on the popularity of the endorser, but also on the strategy used. How to choose the right endorser? What are the benefits of endorsement for business? And how to ensure that the endorsement campaign runs optimally?

This article will discuss in detail the definition of endorsement, its strategic benefits, and effective steps to use it in marketing. In this article, we will discuss what endorsement is, its benefits for business, and how to do it effectively.

What is Endorsement?

Endorsement is a form of promotion that involves famous figures, influencers, or public figures to recommend products or services to their audience. These figures usually have influence on social media or other platforms so that they can influence the purchasing decisions of their followers.

Endorsements can be done in various forms, such as product reviews, photo or video uploads featuring the product. The format can be more interesting by showing the use of the product directly in everyday life by the endorser.

For example, a beauty influencer who has thousands of followers on Instagram recommends a particular skincare product. Audiences who believe in the credibility and experience of the influencer will be more interested in trying the product.

Endorsement Function for Business

Endorsement is not just a promotional activity. There are various strategic benefits that businesses can obtain through endorsements, including:

Increase Brand Awareness

By involving public figures or influencers, your brand will be known to a wider audience, especially if the endorser has many followers.

Building Consumer Trust

When someone with a good reputation recommends your product, the audience tends to believe that the product is of good quality.

Increase Credibility

Endorsement from a respected or trusted figure can improve the positive image of your brand in the eyes of consumers.

Increase Sales

One of the main goals of endorsement is to drive sales. With strong recommendations from endorsers, consumers tend to make purchasing decisions faster.

Targeting the Right Audience

Through endorsements, you can reach a specific market segment that is the target of your business. For example, if your product is skincare, working with a beauty influencer will be more relevant and effective.

Effective Strategies for Endorsing

Although endorsements seem simple, there are several things to consider so that this strategy provides maximum results. Here are the strategic steps in conducting endorsements:

Choose the Right Endorser

Make sure you choose a figure or influencer who is relevant to your business. Pay attention to their niche or field, number of followers, and their engagement rate. For example, if you sell health products, choose an influencer who is known to have a healthy lifestyle.

Determine Campaign Objectives

Is your goal to increase sales, introduce a new product, or expand brand awareness? A clear goal will make it easier for you to determine the type of endorsement content needed.

Adjust Budget to Target

Not all endorsements require large costs. If your budget is limited, consider working with micro-influencers who have fewer followers but higher engagement rates.

Create a Clear Brief

Give endorsers clear guidance on the message you want to convey, brand values, and other important information. However, let them remain creative so that the content feels natural.

Pay Attention to Authenticity

Today's audiences tend to be more sensitive to content that feels too commercial. Make sure the endorsement is done in an authentic way so that it doesn't look like pure advertising.

Monitor and Evaluate the Results

After the campaign is over, analyze the results. Monitor metrics such as total clicks, interaction rates, or revenue generated. This is important to determine the success of the campaign and improve future strategies.

Build Long-Term Relationships

If the endorser proves effective, consider establishing a long-term partnership. A close relationship with the endorser can provide greater benefits for your business.

Mistakes to Avoid in Endorsement

In addition to the right strategy, it is also important to avoid common mistakes in endorsements. Here are some of them:

Choosing an Irrelevant Endorser

If the endorser doesn't match your brand, their audience may not be interested in the products offered.

Ignoring Engagement

Don't just focus on the number of followers. Engagement rates are much more significant because they reflect how actively the audience interacts with the content.

Too Much Control

Controlling the content created by the endorser too much can make the endorsement feel unnatural.

Endorsement is one of the effective ways to promote your business, especially in the digital era dominated by social media. By choosing the right endorser, determining campaign objectives, and managing your strategy well, you can maximize the benefits of endorsements.

However, it is important to remember that endorsements are just one part of a larger marketing strategy. Especially in the application of digital marketing, there is still a lot you need to learn to optimize your business.

Learn more in the Digital Marketing Fundamental program from prasmul-eli.

Bundling is one of the most widely used business strategies today.

The bundling strategy takes advantage of consumer buying psychology, which tends to choose offers with added value, thus creating a more attractive shopping experience.

Bundling is not just about offering a cheaper price for a product package, but also about creating a combination that meets customer needs.

This article will explore in depth the concept of bundling and the strategic benefits it can bring to a business. Also learn about the practical steps that can be taken to optimize bundling and its implementation to increase sales here.

Definition of Bundling

Bundling is a marketing strategy that combines two or more products or services in one package at a specific price. The goal is to provide added value to consumers by offering a cheaper price than buying the products separately.

This strategy is often used in various industries, from technology, food, to skincare. A simple example of bundling is the offer of "Skincare Savings Package: Cleanser, Toner, and Serum in One Special Price."

This concept takes advantage of consumer buying psychology, which tends to feel more profitable when getting more products at a lower price.

Benefits of Bundling for Businesses and Consumers

1. Increase Sales

By offering product packages, companies can encourage consumers to buy more. Products that are not selling well can be included in the bundle to increase their sales.

2. Increase Average Transaction Value

Bundling helps increase the average purchase value per customer (average order value). Consumers who initially only wanted to buy one product can be tempted to buy a bundle because of the more attractive price.

3. Reduce Old Product Stock

Products that are less in demand or approaching their expiration date can be sold faster through a bundling strategy. This is especially relevant in industries such as skincare and food, where products have a limited shelf life.

4. Provide a Better Experience for Consumers

For consumers, bundling provides convenience in choosing, saves time, and often offers a more economical price. This improves their experience with your brand.

5. Increase Customer Loyalty

A well-designed bundling package can create an emotional connection between customers and the brand, thereby increasing their loyalty to the product.

Types of Bundling

Bundling strategies can be applied in various forms. Here are some types of bundling that are commonly used in business:

1. Pure Bundling

In this type, products can only be purchased as part of a package, not separately. An example is a streaming service that offers a monthly package with all features without partial subscription options.

2. Mixed Bundling

Products are available either as part of a bundle or individually. For example, in the skincare industry, cleansers and toners can be purchased separately or in one package at a cheaper price.

3. Cross-Industry Bundling

This strategy involves combining products or services from different industries to create added value. An example is bundling internet services with streaming platforms.

4. New Product Bundling

New products are often included in bundles to introduce consumers to the innovation. This strategy is effective in reducing the risk of rejection of new products.

5. Seasonal Bundling

Special bundles created to celebrate certain moments, such as holidays or Eid. Example: "Special Ramadan Package" for beauty products.

Effective Ways to Implement Bundling Strategy

To ensure that bundling successfully provides benefits for your business, here are some important steps to consider:

1. Know Your Target Market

Understand your customers' needs, preferences, and shopping patterns. An effective bundling strategy is one that is relevant to their needs.

2. Choose the Right Products

Combine products that complement each other. For example, in the skincare industry, you can combine products that are used in one series of treatments, such as cleanser, toner, and moisturizer.

3. Set a Competitive Price

Make sure the bundling price offers more value to consumers, making it more attractive than buying the products separately.

4. Use Limited Offers

This strategy creates a sense of urgency in consumers. Limited-time bundling offers often encourage faster purchasing decisions.

5. Promote Effectively

Use various marketing channels to promote your bundling, such as social media, email marketing, and digital advertising. Make sure the message conveyed clearly highlights the benefits of bundling.

6. Evaluate and Optimize

Monitor bundling sales results regularly. Use data to understand which products are most in demand and how this strategy affects your business's profits.

Bundling strategy is a smart way to increase sales while providing more value to consumers. By understanding the definition, benefits, types, and how to implement it, you can design an attractive bundling while strengthening your business position.

Proper implementation will help you optimize the potential of each product, maximize revenue, and create a satisfying customer experience. If you haven't tried this strategy, now is the time to start designing a bundling that suits your business and customer needs!

However, bundling is just one of the offering strategies that your business can offer to consumers. You can learn more in the Marketing Pricing Strategy program from Prasmul-Eli.

You will learn the importance of setting the right price for the sustainability of products and companies in this program. In addition, this program will also study the basic principles that are the basis for determining the pricing strategy of a product.

If you are interested, register yourself immediately via the following link.

Advertising is one of the important elements in marketing strategies used by various types of businesses. The goal is to introduce their products or services to the wider community.

Nowadays, advertising is not only about placing ads on television or social media. More than that, advertising involves choosing the right message, media, and strategy to achieve business goals.

In this article, we will discuss the definition of advertising, its main functions, its various types, and its benefits for business development.

What is Advertising?

Advertising is a marketing communication method designed to promote products, services, or brands to target audiences through various media channels.

Advertisements are usually created to attract attention, build brand awareness, and influence consumer purchasing decisions. Advertising can be informative, persuasive, or even entertaining, depending on the goals to be achieved.

The essence of advertising is the ability to reach a large audience with a structured message.

Advertising Functions

Advertising plays a crucial role in the business world. Here are some of its main functions:

Building Brand Awareness

Advertising helps consumers recognize certain brands amidst increasingly tight market competition. The more consumers know about the existence of a product, the greater the opportunity to increase sales.

Communicating Information

Advertising is used to provide important information to consumers, such as product features, prices, purchase locations, and special offers. This knowledge makes it easier for consumers to make more informed decisions.

Increasing Interest and Demand

Advertising plays a strategic role in generating interest and creating demand for a product or service.

With a persuasive approach, advertising is designed to attract consumer attention and instill a desire to own or try the product. This process involves a combination of visual elements, strong narratives, and emotional messages that are relevant to the target audience.

Creating Product Differentiation

In today's world, consumers have a variety of choices for similar products, advertising plays an important role in helping companies highlight their advantages.

Product differentiation is the process of demonstrating unique values ​​or characteristics that make a product more attractive compared to competitors. Without clear differentiation, consumers may not see a reason to choose one brand over another.

Supporting Customer Loyalty

Consistent and relevant advertising plays an important role in creating and strengthening relationships between customers and brands.

A good advertising campaign does more than just promote a product, it also conveys the values, vision, and story behind the brand. When customers relate to the values ​​displayed by an advertisement, they tend to have a deeper emotional attachment to the brand.

Types of Advertising

Advertising can be categorized into various types based on the medium used. Here are some types of advertising that are commonly used by businesses:

Traditional Advertising

• Television and Radio: This electronic medium remains a popular choice for reaching a large audience.
• Print: Newspapers, magazines, brochures, and flyers fall into this category. Usually used for local markets.
• Outdoor Media: Billboards, posters, and transit ads such as buses or trains.

Digital Advertising

• Social Media: Platforms such as Instagram, Facebook, and TikTok are the main choices for modern advertising campaigns.
• Google Ads: Search-based ads to reach consumers who are looking for a specific product or service.
• Video Streaming: Ads on YouTube or other streaming platforms.

Event-Based Advertising

Sponsoring an event, exhibition, or conference is an effective way to introduce a brand to a specific audience.

Native Advertising

Advertisements designed to resemble native content on a particular platform, such as sponsored articles or collaborative videos with influencers.

Guerrilla Advertising

This strategy involves a surprising or unusual creative approach to attract attention, usually with a small budget.

Benefits of Advertising for Business

Advertising provides a variety of significant benefits for business development, both for large and small companies. Here are some of the main benefits:

Increase Sales

By promoting products effectively, advertising can attract more potential customers, which ultimately increases company revenue.

Expand Market Reach

Advertising allows businesses to reach a wider audience, including consumers in new regions or specific market segments.

Enhance Brand Image and Credibility

A well-designed advertising campaign can create a positive image for a brand, increasing consumer trust.

Marketing Cost Efficiency

Although some forms of advertising are expensive, digital advertising allows companies to target specific audiences. This allows marketing budgets to be used more efficiently.

Supporting New Product Launches

Advertising is essential in introducing new products to the market, ensuring that consumers are aware of the existence and benefits of the product.

Strengthening Customer Relationships

Advertising that focuses on storytelling or emotional values ​​can strengthen the relationship between brands and customers, creating stronger loyalty.

Advertising is one of the key components in business success, helping companies build brand awareness, attract customers, and increase sales.

By understanding its functions, types, and benefits, businesses can design more effective advertising strategies according to their needs and goals.

In today's digital era, the ability to utilize online platforms is an advantage for businesses that want to stay relevant and competitive. Therefore, a deep understanding of advertising is a valuable investment for every business actor.

However, advertising is just one of the brand management efforts that can be done in a business. You can learn more in the Strategic Brand Management program from prasmul-eli.

Public relations is a very important communication strategy for every organization, be it a company, government agency, or non-profit organization.

In today's digital era, where information can spread quickly, the role of public relations is increasingly crucial. PR or public relations helps organizations build an image, communicate with the public, and respond to issues that may affect the organization's reputation.

This article will discuss the definition of public relations, its tasks, main objectives, and techniques that are often used in carrying out PR functions.

Definition of Public Relations

Public relations is a process that involves managing communication between an organization and the public, be it customers, employees, investors, or the general public.

The Public Relations Society of America defines PR as an effort to manage communication between an organization and its public to create a profitable relationship. This means that PR aims to create a positive image, convey important information, and establish good relationships.

Unlike advertising that focuses on direct sales messages, PR works with a different approach. PR moves more smoothly with persuasive, educational, and informative communication.

PR also plays a role in maintaining reputation and responding quickly if a crisis or negative issue occurs that can harm the organization.

Public Relations Tasks

Here are some public relations tasks that need to be understood:

Building and Maintaining Reputation

PR is responsible for ensuring that the image of a company or organization is always positive in the eyes of the public. This is done in various ways, such as producing positive content, engaging in social activities, and maintaining transparency and trust.

Managing Crisis

In a crisis situation, PR plays an important role in responding quickly and reducing the negative impact on the organization.

PR must be able to control the flow of information that reaches the public and respond to the media with appropriate statements. In addition, PR must also be able to calm the various parties involved so that there is no confusion or damage to reputation.

Internal Communication

Not only focusing on the external public, PR also manages internal communication for employees and all members of the organization. This aims to ensure that everyone in the company continues to receive clear and transparent information.

The type of information can be in the form of policy changes, company achievements, and other developments.

Media Management

A good relationship with the media is one of the key elements in public relations. PR is tasked with building and maintaining relationships with journalists, preparing press releases, and organizing press conferences to provide information to the public.

Consistent Messaging

PR plays a role in composing consistent messages that are in line with the company's identity and values. This is done so that every piece of information received by the public has a consistent image and is not confusing.

Public Relations Objectives

Public relations has several important objectives for organizations, including:

Building a Positive Image

A positive image will make the organization more trusted by the public, both by customers, investors, and the general public. A good image can also influence consumer perception and be an attraction for qualified prospective employees.

Increasing Public Trust

Trust is an important aspect in the relationship between an organization and the public. By having a transparent relationship and maintaining open communication, PR can increase public trust in the organization.

Overcoming and Managing Crisis

PR helps organizations anticipate potential crises and respond quickly when a crisis occurs. This can protect the organization's reputation from greater negative impacts.

Encouraging Public Involvement

Public relations also aims to build public involvement through campaigns and activities that involve the community. This can improve positive relationships between organizations and communities.

Increasing Consumer Loyalty

When the public feels they have a good relationship and trust in an organization, they tend to be more loyal. PR can help maintain this loyalty through consistent communication and support for issues that are relevant to consumers.

Public Relations Techniques

In practice, PR uses various techniques to achieve goals and build effective communication with the public. Some of these techniques include:

1. Media Relations

This is a technique that involves relationships with the media, both print and digital. PR can hold press conferences, write press releases, or arrange interviews with important figures in the organization to increase media exposure.

2. Content Marketing

Content creation is one of the PR techniques that aims to attract public attention with relevant and informative content. This content can be in the form of articles, blogs, infographics, or videos that interest the audience and help convey the company's message.

3. Event Management

Holding events such as product launches, seminars, or charity events is an effective technique for reaching the public directly. This event provides an opportunity for organizations to interact with their audiences and build more personal connections.

4. Social Media Engagement

In the digital era, social media is a very powerful platform for interacting with the public. PR can use social media to share information, answer questions, and build a community around a brand or organization.

5. Crisis Communication

Crisis communication is an important technique when facing difficult situations or events that have the potential to damage the organization's image. PR must have a mature crisis communication plan in order to respond quickly and appropriately when a crisis occurs.

6. Internal Communication

PR also manages internal communications to ensure that all members of the organization receive clear information and feel involved. Good communication within the organization can also increase employee motivation.

7. Influencer and Stakeholder Relations

Establishing relationships with influencers or parties who have influence in the community can help the organization expand its reach and strengthen credibility. PR works with them to convey relevant messages to a wider audience.

8. Corporate Social Responsibility (CSR)

CSR programs are one way for organizations to contribute to society and the environment. This technique not only improves a positive image but also shows the company's social responsibility towards the surrounding community.

Public relations is an important aspect that must be present in every organization, be it business, government, or non-profit organizations. The role of PR in building and maintaining reputation, responding to crises, and communicating with the public are determining factors in the organization's image in the community.

With the right techniques, PR is able to create effective communication, increase public loyalty, and build mutually beneficial relationships.

Public relations is one of the brand management efforts that can be done. Learn more in the Strategic Brand Management program from prasmul-eli.

If you are interested, register yourself immediately through the following link.

There are various strategies for developing a business, one of which is a referral code. However, what exactly is a referral code?

For business people, of course, they will always look for ways to increase their reach without having to spend a lot of money on conventional marketing. Apparently, one practical and efficient solution that is increasingly popular is the use of referral codes.

In this digital era, an effective marketing strategy is very important so that businesses can stand out amidst fierce competition. Referral codes, or referral codes, are tools used by many companies to develop their businesses in a more personal way.

In this article, we will discuss the definition of a referral code, its functions and benefits for business, and how it works.

What is a Referral Code?

A referral code is a unique code given to users or customers so that they can share the code with their relatives.

When someone uses the referral code to make a purchase or register for a service, the user who shares the code will get a reward. Usually this reward can be in the form of discounts, points, bonuses or several other attractive offers.

A referral code usually consists of a combination of letters and numbers that are easy to remember and can be shared through various platforms. It can be via social media, email, or other electronic platforms.

Referral Code Function

Referral codes have several main functions in marketing strategies, including:

Attracting New Customers

Referral codes serve as a tool to attract potential customers by offering incentives to existing users. By rewarding those who successfully invite others, businesses can increase their customer base at a relatively low cost.

Increasing Brand Awareness

Every time a user shares a referral code, they indirectly introduce the business brand to a new audience.

This helps increase brand awareness among the public. Over time, the public will place the product or service as a trusted choice.

Developing a Loyal Community

Referral programs provide a beneficial experience for users, both for the giver and receiver of the code. This can create a loyal and supportive customer community, which of course has a positive impact on the business in the long term.

Obtaining Data for Marketing Optimization

Referral programs can generate valuable data regarding customer behavior and how they find products or services. Businesses can use this data to understand broader customer segments and optimize their marketing campaigns.

Benefits of Referral Codes for Business

The use of referral codes provides several important benefits for businesses, such as:

Effective Marketing Costs

By using referral codes, businesses do not need to spend large amounts on traditional advertising. They only need to provide incentives to existing users.

This is because referral codes leverage the network of friends and trust between users, their conversion rates are often higher than regular ads.

Attracting Quality Customers

Customers who come through referral codes tend to have a greater interest in the products or services offered. This is because they get recommendations from people they know and trust.

This makes referral customers more qualified and have the potential to become long-term customers.

Increasing Customer Retention Rates

When customers are rewarded for the referral codes they share, they feel appreciated by the business. This feeling makes them more loyal and more likely to continue shopping in the future.

Building Consumer Trust

Referral codes allow businesses to build consumer trust in an organic way. Recommendations from friends or family are more trusted than ads, because they are considered more authentic.

This is especially important for new businesses or startups looking to grow their credibility.

How Referral Codes Work

In general, referral codes work through the following steps:

Providing Referral Codes to Users

The business provides a unique referral code to each user, both those who are already registered and those who have just registered. This code is usually accessible through the user’s profile on the business’s website or app.

Sharing the Code by Users

Users share their referral code with others, such as friends, family, or their social networks. This sharing of the code can be done through various channels, such as text messages, social media, email, or even word of mouth.

Use of the Code by Potential New Customers

Once someone receives a referral code and uses it, they often get a discount or bonus that applies to their first transaction. On the other hand, the user who shared the code will receive the reward that has been promised by the business.

Rewarding Users

Once the referral code is used by a potential customer, the business will reward the user who shared the code. This reward can be in the form of a discount, cashback, points, or even cash that can be used in the future.

Referral codes are an effective, economical marketing strategy that can build customer loyalty. By giving users a unique code to share, businesses can attract new customers in a more personal and trustworthy way.

This program not only benefits the business, but also helps build a loyal community that has the potential to be long-term. If optimized with the right strategy, referral codes can be an important asset for the success of your business marketing.

However, referral codes are just one of the various business plans in a company. Learn more in the Business Development Planning program from prasmul-eli.

If you are interested in knowing more, immediately register yourself through the following link.

Asset management is the backbone of an organization's operations and sustainability.

Not just physical goods, asset management is a comprehensive strategic approach to optimizing all resources owned by a company. The focus can be on all physical assets to intangible assets.

The main goal of asset management is to maximize the value and utility of assets, and minimize risks and other unexpected costs. In other words, asset management is about managing assets efficiently and effectively in order to provide optimal contributions.

The implementation of good asset management will have a significant impact on the company's financial performance, increase productivity, and support sustainable business growth.

This article will explore in more depth the definition of asset management, the importance of its implementation in business, and examples of its application in various industrial sectors.

Definition of Asset Management

Asset management is a systematic process that involves managing, controlling, and monitoring assets owned by individuals or companies. This is done as an effort to maximize value and optimize returns on investment.

Assets here can be physical property such as equipment, inventory, to financial assets such as stocks, bonds, and mutual funds. The goal is to ensure that these assets are used as efficiently as possible and can support the growth and sustainability of the company.

Asset management covers a variety of activities, from planning and purchasing assets, maintenance and repairs, to selling or disposing of assets. In addition, this process is often supported by technology in the form of software that facilitates data collection, analysis, and strategic decision making.

The Importance of Asset Management for Business

Optimizing Resource Use

Effective asset management allows companies to use their resources efficiently. This means that the assets owned by the company can operate at their optimal capacity. In the long term, this will have an impact on increasing productivity and reducing waste.

Reducing Operational Costs

By monitoring assets regularly, companies can avoid unexpected major repair costs and reduce the frequency of asset replacement. Good management helps identify when is the best time to renew assets, so that operational costs can be kept to a minimum.

Ensuring Compliance and Security

Many companies must meet certain regulatory standards regarding the use of assets.

Asset management helps ensure that all equipment and machinery used is in accordance with regulations and industry standards. This not only protects the company from potential fines but also ensures employee safety.

Increase Return on Investment (ROI)

By managing assets efficiently, companies can increase the return on their investments.

Well-managed assets tend to have a longer service life and better performance. Ultimately, this can support the growth of profits for the company.

Support in Strategic Decision Making

Data generated from asset management provides deeper insight into the performance and condition of assets.

This information is useful for management to make more strategic decisions regarding the purchase, maintenance, or disposal of assets. For example, a company can decide to replace an old machine with a more efficient one based on performance reports.

Examples of Asset Management Practices in Business

Manufacturing Companies

In the manufacturing sector, asset management is very important to ensure that production equipment operates efficiently and downtime can be minimized. Large manufacturing companies often use asset management software to track maintenance schedules and monitor machine health.

With this data, they can plan when machines need to be serviced without disrupting production operations. So the risk of production disruptions that result in late deliveries and financial losses can be reduced.

Property Industry

In the property industry, asset management can include the management of physical assets such as buildings, apartments, and office space.

Property companies must ensure that the buildings they own are in optimal condition so that they can be rented out at a high price. For example, regular maintenance, repairs, and minor renovations are often carried out to increase the attractiveness of the asset to potential tenants or buyers.

Financial Services

In this sector, asset management refers to the management of investment portfolios for clients, both individuals and institutions. Asset management companies will conduct market analysis, arrange portfolio allocations based on the client's risk profile, and continuously monitor the performance of the investment.

For example, these companies can manage portfolios of stocks, bonds, and other financial instruments to ensure that clients get optimal returns.

Government and Public Institutions

Asset management is also important for public institutions such as city governments that own infrastructure assets, including highways, bridges, etc. With this strategy, the government can allocate budgets for maintenance more effectively and keep them in good condition without wasting money.

Asset management is an important aspect of modern business operations. Without proper management, the assets owned by the company are at risk of not being utilized optimally.

Failure to optimize assets can result in waste, financial losses, and negative impacts on business growth. By using a structured asset management approach and leveraging technology, companies can increase efficiency and maximize the value of their assets.

The examples above show that asset management is not only relevant in one type of industry, but has an important role in various sectors.

However, understanding asset management is only one of the business management efforts in a company. You also need to understand the overall supply chain management.

You can learn this only in the Supply Chain Management program from Prasmul-Eli. If you are interested, register yourself immediately via the following link.

Cost-based pricing is one of the pricing strategies widely used by companies.

In this strategy, the selling price of a product or service is determined based on the total production costs incurred, then added to the percentage of profit desired by the company.

Cost-based pricing has become popular in various industries because it provides certainty for companies that the selling price can cover all costs incurred and provide a profit margin.

This method is very effective for companies that want to maintain financial stability without having to monitor competitor prices intensively. This strategy is also quite popular because of its ease of implementation.

Definition of Cost-Based Pricing

Cost-based pricing is a pricing strategy in which a company determines the selling price of a product or service based on the total production costs incurred.

This strategy aims to ensure that the selling price of the product can cover all costs incurred, as well as provide adequate profit for the company.

In this method, all costs associated with the production process, such as raw material costs, labor, overhead, and distribution, are added up first.

After that, the company adds a markup or percentage of desired profit to produce the final selling price.

Quoting from Indeed, cost-based pricing is a method that allows companies to set prices according to the costs incurred to produce goods or provide services.

In this strategy, companies focus on cost elements as the main basis for determining prices, rather than considering competitor prices or market conditions.

Cost-based pricing also plays an important role in helping companies maintain financial stability, especially in uncertain market conditions.

In situations where production costs suddenly increase, for example due to an increase in raw material prices, the company can adjust the selling price of the product to remain in accordance with the costs incurred

Types of Cost Based Pricing

Quoting from Dealhub, there are several methods in cost-based pricing that are commonly used by companies.

Each method has a different calculation method and purpose, depending on the business needs and target market of the company.

Here are the types of cost-based pricing that you need to know more about:

Cost Plus Pricing

Cost plus pricing is the simplest and most frequently used pricing method in the business world.

In this method, the company adds a percentage markup or fixed profit to the production cost per unit of product. In other words, the selling price is based on the total production costs plus the desired profit margin.

For example, if the production cost per unit of a product is Rp50,000 and the company wants to apply a markup of 20%, then the selling price that will be offered to consumers is Rp60,000 (from the calculation of Rp50,000 + (20% x Rp50,000) = Rp60,000).

Break Even Pricing

This strategy aims to determine the break-even point where the company neither makes a profit nor a loss. This strategy is the right way to calculate how many units of product must be sold in order to cover all production costs.

For example, if the total production and operational costs are Rp500,000 and the price per unit of product is set at Rp50,000, the company must sell 10 units to reach the break-even point.

Target Profit Pricing

Target profit pricing is a cost-based pricing method that considers a certain profit target that the company wants to achieve, while still keeping the product price competitive in the market.

The company calculates the total cost and the targeted profit, then divides it by the number of units produced.

For example, if the total production cost is Rp500,000 and the company wants to make a profit of Rp100,000, then the total target becomes Rp600,000.

If the company wants to produce 100 units, the price per unit offered is IDR 6,000.

This method provides flexibility for companies to set selling prices according to profit targets, as well as considering production capacity and market demand.

Advantages and Disadvantages of Cost Based Pricing

Reported from SPP, here are the advantages of using cost-based pricing:

1. Easy to Implement: Cost-based pricing is a simple strategy because it does not require extensive competitor research. You only need to calculate production costs and add the desired margin.
2. Guarantee Profit: By applying a fixed markup, companies can ensure that every sale generates profit.
3. Transparency: Cost-based pricing is an approach that makes it easier for customers to understand the basis for pricing. In fact, 60% of consumers consider transparency to be an important factor in building trust in a brand.
4. Easy to Explain: When there is a price increase, customers are more likely to accept it if the reason is an increase in production costs.

Quoting from Competera, cost-based pricing also has several disadvantages:

1. Ignores Market Demand: Cost-based pricing is a strategy that does not consider competitor prices and consumer perceptions of value.
2. Lack of Innovation: Companies tend to focus on fixed margins and are less motivated to improve efficiency or innovate.
3. Difficulty Calculating Indirect Costs: Cost-based pricing is a method that sometimes makes it difficult to calculate indirect costs such as marketing and distribution.
4. Does Not Guarantee Sales: Although it generates profit per unit, there is no guarantee that consumers will buy at that price.

Interested in learning more about pricing strategies? You can take the Marketing Pricing Strategy class from prasmul-eli.

In this class, you will understand the basic principles of determining the right price for the sustainability of products and companies.

You will also learn various alternative pricing strategies that can be applied to your business.

Don't miss the opportunity to improve your understanding of pricing strategies!

Negotiation skills are invaluable skills in many aspects of life, both professionally and personally.

Have you ever had difficulty negotiating? Maybe because you were nervous, had difficulty expressing your opinion, or were unsure of what to say.

Don't worry, because negotiation skills can be learned and improved.

In this article, we will discuss negotiation skills in depth, from basic techniques to strategies that can help you achieve the desired results

Negotiation Skill Definition

Negotiation skills are very important skills in everyday life. According to the Big Indonesian Dictionary (KBBI), negotiation is a bargaining process through negotiations to reach an agreement between two or more parties.

When talking about negotiation skills, many people often misunderstand that this is just the ability to bargain.

In fact, negotiation skills are the ability to reach an agreement when there are differences of opinion between two or more parties. In the world of work, negotiation skills are very important in various situations.

You will use them when discussing salaries with HRD, setting work contracts with clients, or even resolving conflicts with coworkers.

So it is not surprising that negotiation skills are often one of the important criteria in employee recruitment.

Negotiation Principles You Need to Know

There are four important principles in negotiation that you need to understand so that the process can run smoothly and produce mutually beneficial agreements.

Understanding each of these principles will make you better prepared to face various negotiation situations that may occur.

In addition, by applying these principles, you can avoid common mistakes that often occur when negotiating.

Mastering these principles will also improve your negotiation skills and increase your chances of achieving the desired results.

Here are the negotiation principles you need to know:

1. Control Your Emotions

In negotiation situations, emotions are often provoked, especially when discussing sensitive issues.

A good negotiator must be able to control emotions and not mix personal problems into the discussion.

Before negotiating, it is important to study the character of the other person, their goals, and the values ​​they adhere to. This understanding will help you determine the right communication approach.

2. Focus on Goals

The second principle is to focus on common goals.

Negotiations often get stuck because each party is too focused on fighting over who should get what. Remember that the goal of negotiation is not to win, but to reach an agreement that benefits all parties.

Try to identify the interests, needs, and motivations of your conversation partner to find common ground.

3. Benefit Both Parties

Third, look for options that are mutually beneficial. Brainstorm to find various solution options.

For example, when negotiating salary, don't just focus on the nominal amount. Also consider the facilities, benefits, or work flexibility offered.

4. Set Fair Standards

In negotiations, there is often debate about who is right and who is wrong.

To avoid this, set fair and independent standards as a basis for resolving differences of opinion. Both parties must agree on these criteria so that negotiations run smoothly.

How to Improve Negotiation Skills

You can improve your negotiation skills in various ways. One of the best ways to train this ability is to practice consistently.

Quoted from The Negotiation Academy, the main key to successful negotiation lies in effective communication.

Without good communication skills, you will have difficulty conveying your desires and understanding the perspective of the other person.

Here are ways to improve your negotiation skills:

1. Identify Problems and Needs

The first step to improving negotiation skills is to carefully identify problems and needs.

Before starting a negotiation, make a list of points to discuss and determine the goals you want to achieve.

The more you understand the situation, the more confident you will be in conveying ideas. Don't forget to also understand the needs and motivations of your interlocutor.

2. Manage Emotions

Second, manage your emotions wisely. Negotiations can be an emotional situation, especially when discussing sensitive matters.

You must be able to stay calm and avoid unnecessary confrontation. If you feel your emotions starting to heat up, don't hesitate to ask for a moment before continuing the discussion.

Remember, being defensive will only hinder the negotiation process.

3. Practice

Practicing with friends, family, or mentors can help you build confidence and hone your negotiation techniques.

Try different scenarios and techniques to find the negotiation style that best suits your personality.

The more you practice, the sharper your instincts will be in finding creative solutions.

4. Listen to the Other Person

Give your full attention to the other person and avoid the habit of interrupting.

Pay attention not only to the words spoken, but also to their body language and tone of voice.

Good listening skills will help you understand the perspective of the other person and find opportunities to reach an agreement.

5. Evaluation

Finally, evaluate after each negotiation. Note down valuable lessons from each experience to develop better strategies in the future.

Evaluation also helps you monitor the development of your negotiation skills.

Want to improve your negotiation skills more effectively? You can take the Applied Negotiation Technique class from Prasmul-Eli.

This class will help you master profitable negotiation techniques, from planning to execution.

With the guidance of experienced instructors, you will be trained to conduct negotiations that produce win-win solutions for all parties.

So, are you ready to develop your negotiation skills?

Consumer markets play a vital role in understanding what buyers are really looking for and need.

If you have ever wondered why some products sell well while others are difficult to find, the answer lies in how we understand the consumer market.

In the business world, understanding consumer behavior and preferences is very important in order to create the right strategy to attract their interest.

This article will discuss in depth how the consumer market works, the types of purchases in it, and the factors that influence purchasing decisions.

Read until the end to get important insights that will strengthen your marketing strategy!

Definition of Consumer Market

The consumer market is an ecosystem where individuals or households buy products and services for personal consumption.

The consumer market includes four main categories, namely food, beverages, transportation, and retail. Interestingly, every time you buy something for your own use, you are already a part of this one.

In the context of modern business, the consumer market is not just about buying and selling transactions.

This market is closely related to consumer behavior such as how they make decisions, what influences their choices, and the reasons they buy certain products.

Consumer markets can also be distinguished based on the type of products traded. There are two main categories, namely fast-moving consumer goods (FMCG) and consumer durables.

FMCG includes products that are quickly consumed or frequently purchased, such as food, beverages, and cleaning products.

While consumer durables are products that last a long time, such as electronics, vehicles, and household furniture.

Functions of the Consumer Market

The consumer market plays a very vital role in the business ecosystem, because this is where the interaction between producers and consumers occurs.

Understanding the function of the consumer market not only helps business actors in developing more effective marketing strategies, but also provides insight into consumer needs and preferences.

The consumer market has several important functions in the business ecosystem, namely:

1. Liaison between Producers and End Consumers

First, the consumer market acts as a liaison between producers and end consumers. Without this market, producers will have difficulty distributing their products to people who need them.

2. Indicators of Marketing Strategy Success

Second, the consumer market functions as an indicator of the success of a marketing strategy. Through market analysis, companies can see whether their products are well received or need adjustments.

3. Market Segmentation

Third, the consumer market helps companies segment the market.

By understanding consumer characteristics, you can create a more targeted marketing strategy. For example, if your target market is teenagers, the marketing approach will be different from the target market for adults.

Types of Purchases in the Consumer Market

Every purchase is influenced by various factors, ranging from cultural, social, personal, to psychological.

By knowing these types of purchases, you can better understand consumer behavior and how to meet their needs.

Here are the types of purchases in the consumer market:

1. Purchases Based on Cultural Factors

Culture plays a big role in shaping consumer preferences and purchasing habits.

These factors include values, beliefs, customs, and habits that are passed down from generation to generation.

For example, in some areas, people prefer closed or traditional clothing as a form of respect for local cultural values. Conversely, people in urban areas may prefer a more casual and modern style of dress.

In addition, cultural factors also influence the choice of food, beverage, or even electronic products. Because inherited preferences can differ from one culture to another.

2. Purchasing Based on Social Factors

Purchasing decisions are also influenced by the consumer's social environment. Family, friends, and even influencers can influence product choices.

For example, a football club fan might buy merchandise recommended by their idol player.

In this case, the consumer market is dynamic because consumer preferences continue to evolve following social trends.

3. Purchasing Based on Personal Factors

Each individual has unique characteristics that influence their purchasing decisions. Factors such as age, occupation, and economic status play an important role.

Purchasing preferences will differ between young people and older people, or between those who work in offices and those who work in the field.

For example, a young executive may prefer to have lunch at a restaurant, while a field worker may prefer a food stall.

This personal factor shows that each consumer has unique needs and preferences according to their life conditions and personality.

4. Purchasing Based on Psychological Factors

Purchasing decisions are also influenced by psychological factors, such as motivation, perception, and beliefs.

A person's motivation to buy a particular product can be triggered by the desire to improve their quality of life or simply to gain satisfaction.

Consumer perceptions of a brand, which are formed from past experiences or recommendations from others, will also influence their choices.

Beliefs and attitudes toward a product, whether considered positive or negative, also play a role in purchasing decisions.

For example, consumers who have had a positive experience with a brand will tend to be loyal and repurchase the product in the future.

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