Promotion Mix and Investment Decision

Evi Husniati Sya’idah, Oki Bagus Satrio, and Nanin Sugiarti

Health Sciences Faculty, Kadiri University, Jl.Selomangleng No.1 Kediri, Indonesia

evihusniati@unik-kediri.ac.id

Keywords: Promotion mix, investment decision.

Abstract: This study is aimed at knowing the implementation of 5 variables promotion mix (advertising, sales

promotion, public relation, personal selling, direct marketing) in influencing investment decision made by sun

life finance customers in Indonesia. This study uses qualitative method. Interview and observation are used

as the technique of data collection. To test the validity of the data, the researcher uses triangulation method.

The result of this study shows that 5 variables of promotion mix have already implemented by the agents of

sun life finance in influencing investment decision made by sun life finance customers. The implementation

of promotion mix has done by sun life finance agents, they are advertising through social media, sales

promotion through give away present, public relation through talk show, direct selling through face to face

meeting with customers, and direct selling through telephone and email. Thus, it can be inferred that the most

effective of promotion mix implementation in influencing investment decision made by sun life finance

customers is personal selling since it is easier for the agents to identify whether or not the customers are

interested in the product. Moreover, the agents can directly ask what customers’ needs and advantages from

the product.

1 INTRODUCTION

Insurance, for some Indonesian people, is very

important to assure of their life and property. People

as the candidate of insurance customers will be more

selective in joining life insurance. The similarity of

every product in many insurance companies needs an

interesting strategy to attract customers. In

accordance with that situation, it is very important to

consider many strategies and policies that are

developed by the insurance company to enhance its

customers.

The implementation of promotion mix is expected

to successfully attract the purchasing interest of a

certain product. The concept of promotion mix

consists of 5 elements: advertising (all percentage of

non-personal and promotion idea of goods and

services done by the selected sponsor), sales

promotion (long term incentive done to force product

buying), public relation (programs designed to

promote and protect the company image or product),

personal selling (direct interaction with customers in

order to sell products), direct marketing (the use of

letter, telephone, or other connection devices to

communicate or obtain response from the customers)

(Kotler dan Amstrong 2008).

The result of the research conducted by Indumathi

(2016) and Gilaninia (2013) identify that product

factor gives more impact to buyong decision done by

customers rather than other factors, such as price,

place, and promotion. Moreover, the company

product must be consistent with benefit and

advantage expected by customers. The research done

by Satit (2012) shows that product and price have

significant correlation toward customers’ decision

making on using service from travel agent. The

research of Octaviani (2014) shows that the variables

of marketing mix which have a significant impact

toward fruit juice buying in Bandar Lampung are

product and price. Meanwhile, the research of Mihart

(2012) shows that integrated marketing

communication has an influence towards buying

decision especially on introducing product, searching

info, alternative evaluation, and evaluating after

buying done by the customers.

Hence, this research is aimed at knowing the

implementation of promotion mix on insurance

company of Sun Life Finance in one of the cities of

Indonesia in attracting customers’ investment

decision.

Sya’idah, E., Satrio, O. and Sugiarti, N.

Promotion Mix and Investment Decision.

In Proceedings of the Annual Conference on Social Sciences and Humanities (ANCOSH 2018) - Revitalization of Local Wisdom in Global and Competitive Era, pages 87-89

ISBN: 978-989-758-343-8

2 METHOD

This study uses descriptive qualitative method. The

researcher focuses on the implementation of

promotion mix employed by sun life insurance

agents. Technique of data collection used in this study

is interview and observation. To the test the validity

of the data, the researcher uses triangulation method.

The subject of this study is sun life insurance agents

in one of the cities in Indonesia. To choose the

research subject or informants, the researcher uses

purposive sampling technique. The researcher defines

some criteria of the informants: they work as the

official agents of sun life insurance, they have

different position in the company but have to have the

same vision, and the agents is not in the level of

newbie.

3 RESULTS AND DISCUSSION

Promotion mix is one of the strategies used by

insurance agent of sun life finance in affecting and

attracting customers’ decision.

a) Advertising

Based on the interview and observation,

advertising activity done by insurance agent in

informing insurance product to the people is

through Facebook and Instagram since those two

media is so popular among people recently. The

feature offered by the agent in social media

becomes a selling point and give knowledge to the

people about the importance of insurance. Using

Facebook and Instagram are considered cheap and

effective.

Advertising activity done by the agents of Sun

life finance has already been suitable with the

objective of advertising: giving information,

persuading, and recalling (Hermawan, 2012).

b) Sales promotion

Sales promotion have become a vital tool on the

psyche of the consumers’ behavior, adaptation to

cultural values leads to marketing effectiveness

(Chaharsoughi, 2011). Besides increasing the

purchasing behavior, sales promotion is effective

in affecting the brand switching behavior of the

consumers (Chandon et al., 2000). In accordance

with that theoretical perspective, promotions that

are trying to give by the agents of Sun Life finance

are direct reward and lottery.

1) Direct Reward

Based on the interview, it is known that the

insurance agents give a direct reward during

their selling presentation to the customers in

order to attract them. The direct reward is

given based on the insurance premium bought

by the customers. Based on the promotion

given by the insurance company, it is known

that the product selling is increasing.

2) Lottery

This kind of promotion has its typical

attraction to the customers. The lottery given

to the customers are car, motorcycle,

cellphone, TV, bike, and gold. This promotion

will be very interesting for the customers.

They can join this lottery if they buy insurance

premium for 50 million per year.

c) Public relation

Public relations in its processes play a great role

in creating the perception and the image of the

company and its products. In other words, public

relations communications involve attempts to

define reality for the targeted publics on whom the

product depends (Naumovska, 2016). To achieve

that goal, it is known that public relation activity

done by the insurance agents is talk show. This

talk show describes and also educates the

customers about financial planning and its

benefits. This activity can make the talk show

participants and the customers interested in

products offered by the insurance agents.

Moreover, it underlines its ability to communicate

and interact to the public on a very specific,

intimate level that provides the modern public the

most desiring concept: credibility and trust.

d) Personal selling

Based on the interview and observation, the

insurance agents sell through direct selling (face

to face) to the customers. Agents listen to

customers’ needs so that products offered are

suitable. Besides, the insurance agents are also

arranging presentation in school, government

institution, and other private companies. After

having presentation, the agents try to do a follow

up activity to the customers. They come to the

customers’ house or office. By doing so, the

customers are more open receive information;

eventually, they want to buy insurance product

offered by agents. This strategy is the most

effective one in persuading customers to make a

buying decision.

Personal selling can be a connection between

company and its customers. It learns the

customers’ needs and works with marketing and

ANCOSH 2018 - Annual Conference on Social Sciences and Humanities

non-marketing officers in the company to create

bigger customers’ value (Kotler dan Amstrong,

2008).

e) Direct marketing

Insurance agents use direct marketing through

some media, such as email, telephone, chatting,

and brochure. In doing so, first, agents do a

broadcast message in BBM or WhatsApp. The

broadcast is sent to the targeted customers. This

broadcast is done just to inform the insurance

products. After doing so, the agents call up the

customers via phone. If the customers are

interested in the product, the agents will offer a

brochure and do a further product elaboration.

This kind of strategy suits some customers that are

out of town that makes them are not easy to meet

up.

Direct marketing employed by the agents of

Sun Life Finance is in line with research

conducted by Mirza and Mohsen (2011) stating

that direct marketing is a flexible method that

could send special message and target in such an

effective way.

The marketing activity done by Sun Life

Finance agents has been suitable with promotion

mix concept. The result of promotion mix done by

the agents make many customers get interested in

the product. It is also supported by the study done

by Nour Mahmud (2014) that shows there is a

significant impact of several promotion elements,

such as advertising, direct marketing, and sales

promotion toward buying decision. Meanwhile,

publication and public relation do not have a

significant impact toward buying decision.

Moreover, research of Sagala Christina (2014)

shows that promotion mix and price have a

significant influence toward buying decision on

fast food industry.

4 CONCLUSION

The most effective implementation of promotion mix

employed by Sun life insurance agents in attracting

their customers’ investment decision is personal

selling since it is considered easier to identify whether

or not the customers are interested or they can directly

ask the customers about their needs or benefits they

can obtain from this investment.

ACKNOWLEDGMENTS

The writer wants to thank Kadiri University that

facilitates and supports this study. In addition, the

writer also wants to thank the research informant who

gives a lot of information concerned about the

phenomena in influencing customers to invest in

insurance company.

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Promotion Mix and Investment Decision