C L A S S   3

A SUMMARY ON CLASS 3 – BY Dr. Pramote  S.

TOPIC COVERED            :           Marketing Concept and TQM

MARKETING ORIENTATION

                : CAN BE CLASSIFIED INTO THREE  PARTS:

1.       PRODUCTION -   MANUFACTURING , HIGH QUALITY PRODUCT AND THE GOAL OF THE PRODUCTION IS PRODUCE ALL THAT IS POSSIBLE.

2.       SALES - SELLING EXISTING PRODUCTS, AGGRESSIVE SALES AND  ADVERTISING .THE GOALOF SALES ARE MAXIMIZE SALES VOLUME

3.       MARKETING -  FULFILLING CUSTOMER SATISFACTION. MARKETING CONCERN MORE ON CUSTOMER-ORIENTED ,PROFIT-ORIENTED AND     INTEGRATED MARKETING AND MAKE PROFIT THROUGH CUSTOMER SATISFACTION.

 

MARKETING CONCEPT

THE ROLE OF MANAGEMENT AND EMPLOYEES:

                    -          TO BE CUSTOMER ORIENTED

                    -          TO STRESS ON LONG-RUN PROFITABILITY

                    -          TO INTEGRATE MARKETING FUNCTIONS TO OTHER FUNCTIONS

 

            CUSTOMER- ORIENTED:

                    -          CUSTOMER IS THE FOCAL POINT FOR PRODUCTS/ SERVICES CREATION

                    -          EXAMPLES:

                                   THOMAS EDISON

                                    UPS VERSUS FEDERAL EXPRESS

                    -          SKILL IN UNDERSTANDING AND SATISFYING CUSTOMERS- SUPERIOR CUSTOMER VALUE.

 

           LONG-RUN PROFITABILITY:

                -          CUSTOMER WANTS MUST BE CONSIDERED IN TERM OF COSTS AND PROFITS GOALS

                 -          EXAMPLES:

                        MERCEDES-BENZ

                        GILLETTE’S LIGHTER

INTEGRATED MARKETING EFFORT:

-          MUST WORK WITH PERSONNEL FROM OTHER FUNCTIONS (i.e , R&D,  PRODUCTION, DISTRIBUTION, AFTER SALES SERVICE,  FINANCE, ACCOUNTING, ETC.)

-          CONFLICTS: (e.g., MARKETING VS PRODUCTION)

TQM AND MARKETING CONCEPT

              -          FOCUS ON CUSTOMER SATISFACTION

            -          LONG- RUN PROFITABILITY

            -          INTEGRATED ACTIVITIES –CROSS-FUNCTIONAL ACTIVITIES

            -          CONTINUOUS IMPROVEMENT

WHAT IS TQM ?

                TQM IS THE ACTIVITIES BY WHICH EVERY EMPLOYEES OF ALL LEVELS AND DEPARTMENTS DO EVERY DAY. WITH THE GOAL FOR CUSTOMER SATISFACTION THROUGH THE COMPANY’ S QUALITY PRODUCTS AND SERVICES, THE CONTINUOUS IMPROVEMENT ACTIVITIES MUST BE CONDUCTED BY THE APPROACH OF SYSTEM THINKING WITH JUSTIFIED FACTS AND PRINCIPLES.

BENEFITS OF TQM:

            -          TO ENSURE CUSTOMER SATISFACTION

            -          TO IMPROVEMENT INTERNAL PROCESS

            -          TO GENERATE NEW BUSINESS

ROLE OF MARKETING IN TQM

                TQM AS A KEY STRATEGY IN DEVELOPING MARKET STRATEGIES, PLANS, AND DECISION ON INFORMATION FROM CUSTOMERS. TQM CAN BE IDENTIFYING CUSTOMERS REQUIREMENTS AND EXPECTATIONS. AND ALSO SELECTING MARKETING , SELLING, DISTRIBUTION METHODS, ORGANIZING AND MANAGING AROUND THE NEEDS OF THE CUSTOMERS.

        THE STAGE INVOLVED IN TQM IN MARKETING

THERE ARE THREE PHASES OF DEVELOPMENT:

1.       AWARENESS PHASE – CREATE AWARENESS TO EMPLOYEE OF HOW IMPORTANT IS TQM TO MAKE THEM FEEL COMFORTABLE AND ACCEPT IDEA.

2.       COST OF POOR QUALITY CALCULATION PHASE

3.       IMPLEMENTATION PHASE – IMPLEMENT TQM IN ORDER TO IMPROVE SERVICE

THERE ARE TWELVE STEPS FOR IMPROVEMENT:

                1.IDENTIFY CUSTOMER - INDIVIDUAL SHAREHOLDERS

                2.COLLECT INFORMATION  FROM CUSTOMER

                          3.PRIORITIZE POSSIBLE INDICATORS

                           4.WRITE A PROJECT GOALS

                            5.DRAW THE CURRENT PROCESS FLOW DIAGRAM

6.EVALUATE THE PROCESS PERFORMANCE

                           7.DETERMINE CAUSE USING “ CAUSE-AND-EFFECT ” DIAGRAM

                           8.REDESIGN THE NEW WORK FLOW

                           9.OBTAIN MANAGEMENT APPROVAL

                          10.IMPLEMENT THE PROPOSALS

                          11.CHECK THE RESULTS

                          12.MONITOR PERFORMANCE FOR CONTINUOUS IMPROVEMENT          

 

BACK TO ASSIGN..