Model For Marketing Strategy Decision Based On Multicriteria Decicion Making: A Case Study In Batik Madura Industry

Abstract

Selection of marketing strategy is a prominent competitive advantage for small and medium enterprises business development. The selection process is is a multiple criteria decision-making problem, which includes evaluation of various attributes or criteria in a process of strategy formulation. The objective of this paper is to develop a model for the selection of a marketing strategy in Batik Madura industry. The current study proposes an integrated approach based on analytic network process (ANP) and technique for order preference by similarity to ideal solution (TOPSIS) to determine the best strategy for Batik Madura marketing problems. Based on the results of group decision-making technique, this study selected fourteen criteria, including consistency, cost, trend following, customer loyalty, business volume, uniqueness manpower, customer numbers, promotion, branding, bussiness network, outlet location, credibility and the inovation as Batik Madura marketing strategy evaluation criteria. A survey questionnaire developed from literature review was distributed to a sample frame of Batik Madura SMEs in Pamekasan. In the decision procedure step, expert evaluators were asked to establish the decision matrix by comparing the marketing strategy alternatives under each of the individual criteria. Then, considerations obtained from ANP and TOPSIS methods were applied to build the specific criteria constraints and range of the launch strategy in the model. The model in this study demonstrates that, under current business situation, Straight-focus marketing strategy is the best marketing strategy for Batik Madura SMEs in Pamekasan.