Transcript LECTURE B VALUE MANAGEMENT

VALUE MANAGEMENT
By
Elisante Ole Gabriel (Tanzania)
Chartered Marketer
[email protected],
www.olegabriel.com
+255-784-455-499
VALUE MANAGEMENT
• What is Value?
This is a benefit/convenience a customer
expects from a certain product or
Organization. It is an additional perceived
satisfaction
• Total customer Value
This is the sum total of benefits customers
expect from a given product/Organization
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(Image, Personnel, Service, and Product)
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• Total Customer Cost
This is the sum of costs customers expect to
incur in evaluating, obtaining, using and
disposing the product (Psychic, Energy,
Time, Monetary). Switching cost is also
taken into account (i.e the cost of shifting
from one supplier to another)
• Customer Delivered Value: Net effect (i.e
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the difference between the Value & Cost)
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What is satisfaction?
• This is a level of person’s feelings of
pleasure or disappointment
(disatisfaction), resulting from comparing
a product’s perceived performance in
relation to the expectations
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VALUE CHAIN (By MICHAEL PORTER)
(1985 )
FIRM’S INFRASTRUCTURE
HUMAN RESOURCE MANAGEMENT
TECHNOLOGY DEVELOPMENT
PROCUREMENT
Primary Activities
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TOTAL QUALITY MANAGEMENT
(TQM)
• This is an approach to continuously
improving the quality of ALL the
organization’s processes and products.
Even for large and profitable MNCs, it is no
longer optional but a must to adopt TQM.
The certificate alone is not a big deal.
Satisfaction (From the Customers’ point of
view) is the way forward
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Performance Vs Conformance
Quality
• Performance Quality
This is the satisfaction delivered to a
customer when the said product performs
a certain function
• Conformance Quality
This is the degree at which the product
conforms to the promised quality (Promise
making Vs Promise keeping)
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Finally
……. TQM = Everyone’s Job…………..
(By Daniel Beckam)
• “Marketers who don’t learn the language of
Quality improvement, Manufacturing, and
operations will become as obsolete as
buggy whips. The days of functional
Marketing are gone. . . . . . . . . . . . . . . . . We have
to think of ourselves as customer
satisfiers - Customer advocates focused
on whole process.
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