Volume 3, No. 7 July 2024 - (1609-1617)

p-ISSN 2980-4868 | e-ISSN 2980-4841

https://ajesh.ph/index.php/gp


Analysis of Cirebon City Local Government Policies in the Use of Social Media for MSME Product Marketing

 

Sholekha1*, Dewi Intan Permata Sari2,  Ika Aprilia3, Dhila Ayunda Iravanti4, Mukarto Siswoyo5, Siti Khumayah6

1,2,3,4,5,6 Universitas Swadaya Gunung Jati, Cirebon, West Java, Indonesia

Emails: sholekha92@gmail.com1*, dewiintan0220@gmail.com2, ikaa3316@gmail.com3 dhilaayunda19@gmail.com4, mukarto.siswoyo@ugj.ac.id5, siti.khumayah@ugj.ac.id6

 


 

ABSTRACT:     


The development of Micro, Small and Medium Enterprises (MSMEs) in Cirebon City is influenced by several challenges that are still facing, including the lack of understanding of MSME players about the use of technology in digital marketing. The purpose of this study is to determine the involvement of local governments, especially the Office of Small, Medium Enterprises Cooperatives Industry and Trade (DKUKMPP) on MSMEs by utilizing social media. In this study, the author applies the theory of Merilee S. Grindle (1980) where implementation is influenced by two variables, namely policy content and implementation environment. This research is included in the qualitative type with data collection techniques conducted through direct interviews with DKUKMPP and MSMEs in Cirebon City. The results obtained by researchers are that the use of social media for marketing MSME products in the city of Cirebon has actually been effective as evidenced by the increased promotion of MSME products, however, given the limitations of Human Resources (HR), skills, and knowledge of administration in terms of marketing products, there are still weaknesses so that training on the use of social media platforms for MSMEs needs to be carried out regularly and consistently and the Cirebon City Regional Government can monitor the course of the program.


Keywords: Policy, Local Government, Social Media, Marketing, MSMEs

 

 

INTRODUCTION

Today's use of the internet has expanded to various aspects of life, including social media. Social media serves as a socialization and interaction platform that anyone can access and contains a variety of information about products and other things (Alaimo & Kallinikos, 2017; Evans et al., 2021; Ham et al., 2019; Leidner et al., 2020). The existence of social media has become the easiest and cheapest marketing tool that companies can utilize. This is what attracts Micro, Small and Medium Enterprises (MSMEs) to use it as a promotional medium through a website or blog that displays the company profile. In addition to being an interactive marketing tool, social media also functions as a means of service and communication with consumers, as well as a platform for online buying and selling (Bala & Verma, 2018; Icha, 2015; Infante & Mardikaningsih, 2022; Tuten, 2023).

The implementation of Government policies for Cirebon City MSMEs can be assessed using the theoretical framework of Merilee S. Grindle (1980). According to this theory, policy implementation is influenced by two main factors, namely the content of the policy and the implementation environment. The policy content variable includes several key aspects: First, the extent to which the interests of the target group or target group are reflected in the policy content. Second, the type of benefits received by the target group. Third, the extent to which changes are expected to be achieved through the policy. Fourth, the placement of programs or initiatives is appropriate in the desired context. Fifth, whether the implementation of the policy has mentioned in detail who is responsible for its implementation. And sixth, is the program supported by adequate resources to run it.

Meanwhile, the variables of the implementation environment include the following aspects: First, how much power, importance, and strategy are possessed by the actors involved in the implementation of the policy. Second, the characteristics of the institution and the regulations that apply at that time. Third, how compliant and responsive the target group is to the policies implemented (Ivančić et al., 2017). By considering these two variables, it can be evaluated to what extent the Government's policies towards MSMEs in Cirebon City can be successfully implemented and provide the desired impact in accordance with the policy objectives that have been set (Azzahra, 2023).

The Cirebon City Office of Cooperatives, Small and Medium Enterprises, Trade, and Industry (DKUKMPP), as one of the regional apparatus organizations, is required to prepare an Annual Performance Plan (RKT) by outlining programs and activities to support policy implementation by aligning strategic goals, particularly in the fields of trade, cooperatives, small and medium enterprises, trade, and industry, in accordance with Cirebon City Regional Regulation No. 6 of 2016 regarding the details of affairs organized by the Cirebon City Government and Cirebon City Regional Regulations.

One of the policies of the Cirebon City Government through the DKUKMPP program is "Enhancing MSME promotion through Social Media," which aims to improve MSME understanding of effective ways to promote their businesses through social media platforms. This program also aims to educate MSMEs on the prudent use of social media to avoid risks such as fraud and other negative impacts.

The reality of the condition of MSMEs in Cirebon City that have participated in the program is that many still cannot manage social media for online sales. Out of 100 MSMEs in Cirebon City that have participated in the program, based on interviews with DKUKMPP officials, 70% of Cirebon City MSMEs have implemented social media programs as a marketing tool, while 30% of Cirebon City MSMEs are unable to use social media as a marketing tool due to the complexity of application features and the lack of strategies for promoting their products on social media. According to the explanation above, the author found a research gap, namely that the community does not yet understand the use or utilization of social media platforms for MSME product sales. In line with this, the author wants to measure the extent to which the Regional Government Policy through the DKUKMPP Program has been implemented for MSMEs.

The author compares the previous study entitled "Analysis of the Efforts of the Solok Regency DKUKMPP in Developing the Potential of Micro, Small and Medium Enterprises" by (Harpindo Nasir et al., 2022). The research focuses on the efforts of the Solok Regency Small, Medium, Industry, and Trade Cooperative Office (DKUKMPP) in empowering and developing MSMEs. This study shows that DKUKMPP has implemented various strategies through training, counseling, and policies. In the participatory phase, the level of community participation in DKUKMPP programs is quite high, which can be seen from the significant interest and involvement of MSME actors in every training and counseling held. Meanwhile, in the emancipatory phase, this study noted an increase in the development of MSMEs in Solok Regency. This study uses a qualitative method with a descriptive approach.

From the previous study, the author evaluated that the research was still not effective enough because the formulation of strategies in empowering MSMEs was still monotonous. The policy of the Cirebon City Regional Government in using social media to market MSME products has attracted the author's attention for further research. This research focuses on the success rate of using social media as a marketing medium for MSME products. Also, what are the obstacles in the implementation of the policy are important things that want to be known and explained in the results of the research. Besides, it is also important to know the supporting factors and obstacles they face.

"Policy comes from the English word 'policy,' which means a set determination, whereas wisdom comes from the word 'wisdom,' which means considerations or sagacity. In governmental activities, the use of the word policy is considered more appropriate than wisdom. This aligns with the meanings of these words as found in the General Dictionary of the Indonesian Language" (Nurmasari et al., 2013).

"Policy itself is the authority made by the government in the form of government actions to achieve a certain process or goal for the common good" (Khumayah & Hardjowikarto, 2020).

Regional governments are the executors of governmental affairs conducted by regional governments along with the Regional House of Representatives (DPRD) based on the principles of autonomy and co-administration with a very broad scope of autonomy within the framework and principles of the Unitary State of the Republic of Indonesia. Regional governments have the authority to regulate and manage governmental affairs independently according to the principles of autonomy and co-administration (Pasolong, 2019). The structure of regional government includes the Governor, Regent, or Mayor, as well as regional apparatus that function as elements of the implementation of regional government.

"Regional Government is the head of the region as an element of the Regional Government that leads the implementation of governmental affairs which are the authority of autonomous regions" (Aridhayandi, 2018).

In the modern era with rapid advances in technology and communication, marketing through social media has become the main choice for business actors. Today, social media has become a major pillar in the dissemination of information. One of the advantages of social media is its great potential to advance a business. The most commonly used social media platforms for marketing include Facebook, Instagram, YouTube, TikTok, and others. In addition, MSMEs (Micro, Small, and Medium Enterprises) can communicate with customers through WhatsApp, Line, Short Message Service (SMS), and others. MSMEs can also build their brand awareness through social media with brand endorsement techniques.

Marketing is an activity aimed at achieving company targets by anticipating customer or client needs and directing the flow of goods and services that meet those needs from the company.

"Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating, offering, and exchanging valuable products with others" (Daryanto, 2011:1).

"Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders" (Kotler & Keller, 2009).

MSMEs stand for Micro, Small, and Medium Enterprises, which encompass various types of businesses run by individuals, households, or groups with small to medium scales. Despite their small size, MSMEs play a significant role in the economy, particularly in job creation, driving innovation, and supporting local economic growth.

 

RESEARCH METHODS

In this research, the author employs a descriptive qualitative research method, focusing on issues based on facts obtained through observation, interviews, and studying documents. This method is chosen to gain a comprehensive understanding of the field.

The data sources in this research consist of primary and secondary data. According to Sugiono, data collection can use primary and secondary sources. Primary data is obtained through interviews with informants selected as sources or those considered most knowledgeable or competent about the research topic. Secondary data comes from various references such as journals, books, and other sources.

In the first stage, the author determines the research topic and reviews previous studies. Following this, the author receives a research permit letter from the university to be presented to the Office of Cooperatives, Small and Medium Enterprises, Trade, and Industry (DKUKMPP) to conduct research and interviews. Based on interviews conducted at DKUKMPP, the author also interviews Micro, Small, and Medium Enterprises (MSMEs), where it is revealed that the DKUKMPP program is highly beneficial as it positively impacts MSMEs. Through the Technical Guidance provided by DKUKMPP, MSME actors can understand the wise use of social media. The promotion through social media has also enabled their businesses to gain recognition both online and offline.

Data collection techniques include observation, in-depth interviews, and gathering facts that develop in the community, particularly regarding MSME product marketing in the context of local government policies on utilizing social media platforms. After the data is collected, the author will analyze the data, which includes data presentation, data processing, and drawing conclusions (Benchimol et al., 2015; Sutton & Austin, 2015).

 

RESULTS AND DISCUSSION

Based on an interview conducted directly with the head of the SME division at the DKUKMPP (Cooperatives, Micro Enterprises, Industry, and Trade Office) of Cirebon City, the results were obtained that the agency has participated and become a forum for MSME actors in business development, through digital seminars and training. One of the Cirebon City Local Government programs, called "Improving the Promotion of MSMEs through Social Media," aims to increase MSMEs' understanding of how to promote their businesses through social media platforms effectively. This program also aims to educate MSMEs about the wise use of social media, with the aim of avoiding risks such as fraud and other negative impacts that can be detrimental.

The event was held in the 2nd floor room of the Cirebon City Cooperatives, Small, Medium Enterprises, Trade and Industry Office (DKUKMPP) and was attended by 100 participants, both MSMEs fostered by the Cirebon City Smartfren Community and the Cirebon City DKUKMPP Office. As the content of the seminar is to provide information on easier internet business opportunities that are very profitable so that MSMEs can get even more increased income and insight into sales on more modern social media.

Apart from DKUKMPP, the author also explored information from Cirebon City MSMEs through the direct interview method to get results that MSME actors are very supportive and interested in developing their businesses through programs provided by the government, one of which is increasing promotion through social media, training and technical guidance, basic financial management training and training on entrepreneurship, all packaged in accordance with the digitalization eraHowever, from some MSMEs, there are still limitations in managing application features on social media, so the Cirebon City DKUKMPP often holds periodic digitalization training to review and maximize personal branding on social media, where social media platforms have a wide range of marketing, so that products can be known by many people which is influential for increasing business income. Onestrategy implemented in increasing the promotion of MSMEs is to create interesting and creative content, as well as take advantage of trends that are popular on social media platforms such as TikTok, Instagram, and Facebook. This aims to attract consumer interest in promotions carried out by MSME actors and encourage consumers to buy these products.

The success rate of the program has reached 70% among the 100 MSME participants recorded in Cirebon City. However, 30% of them are still unable to participate due to personal reasons. The social media usage program faces challenges in terms of human resources, such as the lack of knowledge among MSME actors in using social media and the suboptimal use of digital equipment, as 30% of the MSME actors are housewives. Supporting factors for the implementation of the program include the collaboration between the Cirebon City Regional Government and state-owned enterprises (BUMN) to create a digitalization-based training program aimed at enhancing MSME marketing development.

Top of Form

Bottom of Form

Based on the results obtained through data collection techniques such as in-depth interviews, observations, document analysis, and literature studies, the author applies the theory of Merilee S. Grindle. According to Merilee S. Grindle. Menurut Merilee S. Grindle (1980), policy implementation is influenced by two main variables, namely the content of policy and the context of policy.

The implementation of the Cirebon City Regional Government policy (DKUKMPP program) can be described as follows:

A.    Policy Content

The objectives of the local government's policy through the Cirebon City Office of Cooperatives, Small and Medium Enterprises, Trade, and Industry (DKUKMPP) program are clearly aimed at Micro, Small, and Medium Enterprises (MSMEs). So far, 100 MSME actors in Cirebon City have participated in this policy program. However, not all MSME actors in Cirebon City can implement the program optimally, as only 70% of MSMEs have successfully implemented the program.

DKUKMPP provides support through digitalization-based training for MSMEs. This training aims to help MSMEs understand how digitalization can benefit their business development, especially in digital marketing. This program utilizes communication tools such as smartphones that support social media features optimally.

The benefits of the policy for the local government (DKUKMPP) include the ability to manage MSMEs more effectively and efficiently in terms of empowerment, budget management, and natural resource allocation. Additionally, DKUKMPP can improve the quality and efficiency of public services, so MSMEs experience better service quality compared to before the program.

The benefits felt by MSMEs in Cirebon City include, first, more efficient product marketing and reduced promotional costs. Second, the program helps improve the quality and packaging of their products through training and guidance provided by DKUKMPP.

The mindset of MSME actors in Cirebon City regarding the benefits of social media has improved. With the various benefits of the program, DKUKMPP hopes that MSME actors can change their mindset due to the demands of modern times, especially in using social media. Nowadays, young MSME actors can be successful even without a physical store. This is because of their modern mindset, utilizing social media as a marketing platform. Prioritizing young MSME actors with this mindset can not only enhance economic quality but also boost Cirebon City's tourism quality rapidly.

The appropriateness of this policy is based on the changing times that demand MSMEs to digitalize, particularly in marketing, which impacts their business development through social media. The targeting of this policy is reviewed from the perspective of MSME actors in Cirebon City, who largely still cannot manage existing social media. It is undeniable that smartphones are no longer a luxury; everyone, including MSME actors, has one. The issue is whether they can use their smartphones for business purposes, hence the DKUKMPP's digitalization-based training program.

To further optimize the program, DKUKMPP collaborates with external parties such as Rumah BUMN (PLN), Pegadaian, Smartfren, and Bank Indonesia. One form of cooperation is digitalization-based mentoring for MSMEs. Based on explanations, 70% of the 100 MSMEs in Cirebon City responded positively, while 30% could not participate in the mentoring due to personal matters. Overall, it can be concluded that DKUKMPP's program has been quite well implemented.

Despite the program's implementation, human resources in using digital tools are still not optimal as 30% of MSME actors are housewives. The cost of implementing the program is often borne by external partners working with DKUKMPP, which can result in reciprocal benefits for external parties. Some facilities and infrastructure are provided not only by external parties but also by DKUKMPP, such as rooms, seating, or projectors if needed.

B.    Implementation Context

The strategic environment also has a significant impact on the successful implementation of policies. This strategic environment is known as the context of implementation. In discussing the context of implementation, the following aspects are included:

The authority of the Regional Government Policy (DKUKMPP) given to MSME (Micro, Small, and Medium Enterprises) actors by facilitating technical training through social media. The interest of the Regional Government Policy (DKUKMPP) to advance the mindset of MSME actors in utilizing their mobile phones to develop MSMEs through social media. The strategy in implementing this policy is to synchronize, collaborate, and synergize with external parties to advance MSMEs through event programs that encourage the improvement of human resources in conducting business coaching digitally, such as the "MSME Promotion Improvement Program through Social Media." This program collaborates with the Smartfren Community of Cirebon City.

To minimize other interests in the form of MSME bazaars or conventional marketing strategies, DKUKMPP is more committed to prioritizing MSME actors in advancing their businesses through social media with regular coaching. DKUKMPP of Cirebon City is always committed to implementing policies in the form of coaching programs or MSME training programs through social media and is capable of operating social media platforms to develop businesses that are better known to the public through applications like TikTok, Instagram, WhatsApp, Facebook, and Online Shopping Platforms.

The success of policy implementation lies in how responsive MSME actors are to the regional government (DKUKMPP) programs that promote and enhance MSMEs through social media. DKUKMPP will always be consistent and support every program implementation by external parties in advancing MSMEs in Cirebon City digitally. The program regulations for MSME actors have been implemented quite well, but some MSMEs still have limitations in managing application features on social media. Therefore, DKUKMPP of Cirebon City frequently holds regular digitalization training to review and maximize personal branding on social media in promoting product catalogs to increase the income of MSME actors in Cirebon City.

 

CONCLUSION

The author concludes that the local government policy through the Cirebon City Office of Cooperatives, Small and Medium Enterprises, Industry, and Trade (DKUKMPP) program has achieved a 70% success rate among the 100 Micro, Small, and Medium Enterprises (MSMEs) in Cirebon City that participated in the program. However, due to limitations in human resources (HR) in terms of skills and knowledge about administration and product marketing, there are still weaknesses. For instance, 30% of the participants are unable to follow the program due to personal interests and the suboptimal use of digital tools. Therefore, these programs need to be improved.

Supporting factors for the implementation of the program include cooperation between the local government (DKUKMPP) of Cirebon City and state-owned enterprises (SOEs) to create digitalization-based training programs for the marketing development of Cirebon City’s MSMEs. The aim of this study is to understand the involvement of the local government, specifically DKUKMPP, with MSMEs in utilizing social media. In this research, the author applies Merilee S. Grindle's (1980) theory where implementation is influenced by two variables: policy content and implementation environment. This research is qualitative in nature, with data collection techniques conducted through direct interviews with DKUKMPP and MSMEs in Cirebon City.

The results obtained by the researcher indicate that the use of social media for marketing MSME products in Cirebon City has been effective, as evidenced by the increased promotion of MSME products. However, due to limitations in HR, skills, and knowledge about administration in marketing products, there are still weaknesses. Therefore, regular and consistent social media platform training for MSMEs is necessary, and the Cirebon City local government should monitor the progress of these programs.

 

BIBLIOGRAPHY

Alaimo, C., & Kallinikos, J. (2017). Computing the everyday: Social media as data platforms. The Information Society, 33(4), 175–191. https://doi.org/10.1080/01972243.2017.1318327

Aridhayandi, M. R. (2018). Peran Pemerintah Daerah Dalam Pelaksanaan Pemerintahan Yang Baik (Good Governance) Dibidang Pembinaan Dan Pengawasan Indikasi Geografis. Jurnal Hukum & Pembangunan, 48(4), 883–902.

Azzahra, A. (2023). Implementation Of Good Governance in Public Services at Local Government. International Journal of Social Service and Research, 3(7), 1899–1906. https://doi.org/10.46799/ijssr.v3i7.594

Bala, M., & Verma, D. (2018). A critical review of digital marketing. M. Bala, D. Verma (2018). A Critical Review of Digital Marketing. International Journal of Management, IT & Engineering, 8(10), 321–339.

Benchimol, E. I., Smeeth, L., Guttmann, A., Harron, K., Moher, D., Petersen, I., Sørensen, H. T., von Elm, E., Langan, S. M., & Committee, R. W. (2015). The REporting of studies Conducted using Observational Routinely-collected health Data (RECORD) statement. PLoS Medicine, 12(10), e1001885.

Evans, D., Bratton, S., & McKee, J. (2021). Social media marketing. AG Printing & Publishing.

Ham, C.-D., Lee, J., Hayes, J. L., & Bae, Y. H. (2019). Exploring sharing behaviors across social media platforms. International Journal of Market Research, 61(2), 157–177. https://doi.org/10.1177/1470785318782790

Harpindo Nasir, Nurhayati Nurhayati, & Esi Sriyanti. (2022). Analisis Upaya Dinas Koperasi Usaha, Kecil, Menengah Perindustrian Dan Perdagangan (Dkukmpp) Kabupaten Solok Dalam Mengembangkan Potensi Usaha Mikro Kecil Dan Menengah. Jurnal Publikasi Sistem Informasi Dan Manajemen Bisnis, 2(1), 102–119. https://doi.org/10.55606/jupsim.v2i1.797

Icha, O. (2015). Effectiveness of social media networks as a strategic tool for organizational marketing management. J Internet Bank Commer, S2.

Infante, A., & Mardikaningsih, R. (2022). The Potential of Social Media as a Means of Online Business Promotion. Journal of Social Science Studies (JOS3), 2(2), 45–49. https://doi.org/10.56348/jos3.v2i2.26

Ivančić, V., Mencer, I., Jelenc, L., & Dulčić, Ž. (2017). Strategy implementation–external environment alignment. Management: Journal of Contemporary Management Issues, 22(Special Issue), 51–67.

Khumayah, S., & Hardjowikarto, D. (2020). Analisis Kebijakan Kampung KB Sebagai Upaya Penanggulangan Kemiskinan Di Kota Cirebon. Jurnal Indonesia Sosial Sains, 1(03), 207–212.

Kotler, P., & Keller, K. L. (2009). Manajemen pemasaran, edisi 13. Jakarta: Erlangga, 14, 178–179.

Leidner, D. E., Gonzalez, E., & Koch, H. (2020). An affordance perspective of enterprise social media and organizational socialization. In Strategic information management (pp. 364–402). Routledge.

Nurmasari, M., Siswoyo, M., & Wulandari, S. (2013). Implementasi Kebijakan Pelayanan Jaminan Persalinan (Jampersal) Di Uptd Puskesmas Cidahu Kabupaten Kuningan (Studi Kasus Faktor-Faktor Yang Mempengaruhi Implementasi Kebijakan Pelayanan Jampersal Di Uptd Puskesmas Cidahu Kabupaten Kuningan). Jurnal Ilmiah Publika, 1(1).

Pasolong, H. (2019). Teori administrasi publik. Penerbit Alfabeta.

Sutton, J., & Austin, Z. (2015). Qualitative research: Data collection, analysis, and management. The Canadian Journal of Hospital Pharmacy, 68(3), 226.

Tuten, T. L. (2023). Social media marketing. Sage publications limited.

 

Copyright holder:

Sholekha, Dewi Intan Permata Sari,  Ika Aprilia, Dhila Ayunda Iravanti, Mukarto Siswoyo,

Siti Khumayah (2024)

 

First publication right:

Asian Journal of Engineering, Social and Health (AJESH)

 

This article is licensed under: