1. VALUE MANAGEMENT By Elisante Ole Gabriel (Tanzania) Chartered Marketer

2. 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 (Image, Personnel, Service, and Product)
12/10/2018

3. 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 the difference between the Value & Cost)
12/10/2018

4. 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
12/10/2018

5. Supporting Activities
VALUE CHAIN (By MICHAEL PORTER)
(1985 )
FIRM’S INFRASTRUCTURE
HUMAN RESOURCE MANAGEMENT
Supporting Activities
Margin
TECHNOLOGY DEVELOPMENT
Loss
PROCUREMENT
OPERATIONS
SERVICE
OUTBOUND LOGISTICS
INBOUND LOGISTICS
MARKETING & SALES
Primary Activities
12/10/2018

6. 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
12/10/2018

7. 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)
12/10/2018

8. ……. TQM = Everyone’s Job………….. (By Daniel Beckam)
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.
12/10/2018