Monday, March 19, 2012

Total Quality Marketing

 Index of concepts
  1. Aa to Az 
  2. Ba to Bz
  3. Ca to Cz
  4. Da to Dz  
  5. Ea to Ez 

  6. Fa to Fz 
  7. Ga to Gz
  8. Ha to Hz
  9. Ia to Iz

  • Japanese have succeeded in improving the quality of their products to such an extent that most global customers will no longer accept or tolerate average quality performance. Companies have to adopt Total Quality Management (TQM) to stay in the business.

    Total quality management (TQM) is an organization-wide approach to continuously improving the quality of all the organization's processes, products and services.

    There is correlation and connection among product quality, service quality, customer satisfaction and company profitability. Higher levels of customer satisfaction results in higher prices and volumes. Higher levels of quality processes often reduce costs. PIMS studies have shown that there is high correlation between relative product quality and company profitability.

    Kotler recommended the definition of the American Society for Quality Control for the term quality.

    "Quality is the totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs."

    Kotler highlights that it is a customer centered definition of quality and hence recommends it to marketers.

    Performance quality and conformance quality are two different concept. Performance quality is the features and services promised and it is part of the design of the product. Conformance quality is variation among the items produced in conforming to the design specifications.

    Total quality is every body's job like marketing. Kotler emphasized this. Marketers have to think themselves as customer satisficers or customer advocates focused on whole process of satisfying customers through exchange of products and services.

    Marketing managers have two responsibilities in this quality focus. First, they must help the organization to develop products and processes with total quality excellence. As quality is related to customer needs, marketers have important responsibility here. Second, they must deliver marketing quality alongside production quality to the customers. Each marketing activity - research, advertising, sales, customer service must be designed and  performed to high standards.

    Kotler, Marketing Management, 9th Edition, Pp. 54-57.

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