Total quality management and relationship marketing

total quality management and relationship marketing

Customers play a important role in total quality management. Without customers Remember in today's scenario, there is no dearth of competitors in the market. TQM in marketing can have a major impact upon an organization by improving customer relationships and satisfaction, reducing marketing expenses, increasing. The paper argues that while both marketing and total quality management (TQM) (for example, the move in marketing toward relationship marketing) and their.

The Rapport between Total Quality Management and Relationship Marketing

As a result, there is no single universal definition of quality, and the more common definitions of quality are elaborated below: Measures how well the product or service meets the target and tolerance determined by its designer. Focuses on how well the product performs its intended function or use. Value for price paid: Is a definition of quality that consumers often use for products or service usefulness. Often refers to the quality of a product or service is judged.

Is a subject definition that focuses on the judgmental evaluation of what constitutes product or service quality. Edwards Deming In the late s, while working as a summer employee at Western Electric Company in Chicago, Deming found worker motivation systems to be degrading and economically unproductive; incentives were tied directly to quantity of output, and inefficient postproduction inspection systems were used to find flawed goods.

Deming teamed up in the s with Walter A. Shewharta Bell Telephone Company statistician whose work convinced Deming that statistical control techniques could be used to support traditional management methods. As a practice, relationship marketing difers from other forms of marketing in that it recognizes the long term value of customer relationships and extends communication beyond intrusive advertising and sales promotional messages.

Total Quality in Marketing St Lucie Press Total Quality Series

With the growth of the internet and mobile platforms, relationship marketing has continued to evolve and move forward as technology opens more collaborative and social communication channels. This includes tools for managing relationships with customers that goes beyond simple demographic and customer service data. Relationship marketing extends to include inbound marketing eforts, a combination of search optimization and strategic contentPR, social media and application development.

Role of Customers in Total Quality Management

Development Relationship marketing refers to a short-term arrangement where both the buyer and seller have an interest in providing a more satisfying exchange. This approach tries to ambiguously transcend the simple post purchase-exchange process with a customer to make more truthful and richer contact by providing a more holistic, personalized purchase, and uses the experience to create stronger ties.

Scope Relationship marketing has also been strongly influenced by reengineering. According to process reengineering theory, organizations should be structured according to complete tasks and processes rather than functions.

total quality management and relationship marketing

That is, cross-functional teams should be responsible for a whole process, from beginning to end, rather than having the work go from one functional department to another. Traditional marketing is said to use the functional or 'silo' department approach.

Satisfaction Relationship marketing relies upon the communication and acquisition of consumer requirements solely from existing customers in a mutually beneficial exchange usually involving permission for contact by the customer through an "opt-in" system.

Retention A key principle of relationship marketing is the retention of customers through varying means and practices to ensure repeated trade from preexisting customers by satisfying requirements above those of competing companies through a mutually beneficial relationship This technique is now used as a means of counterbalancing new customers and opportunities with current and existing customers as a means of maximizing profit and counteracting the "leaky bucket theory of business" in which new customers gained in older direct marketing oriented businesses were at the expense of or coincided with the loss of older customers.

Internal marketing Relationship marketing also stresses what it calls internal marketing, or using a marketing orientation within the organization itself. It is claimed that many of the relationship marketing attributes like collaboration, loyalty and trust determine what "internal customers" say and do. According to this theory, every employee, team, or department in the company is simultaneously a supplier and a customer of services and products.

An employee obtains a service at a point in the value chain and then provides a service to another employee further along the value chain. Today readymade garments sector not only earn maximum foreign currency but also engage a lot of unemployed people in productive industry. For this industry, various bank and insurance business are now in better position, transportation business now expanded in the country, shipping business is increasing inside and outside the country, cargo handling, clearing and forwarding business, buying house, hotel, tourist —all this sectors found possibility of their business by this readymade garments export.

There are more than 20 lucks people engaged in this sector. So their purchasing powers increases and a group of consumer also created by this sector. From here there appears an opportunity to further improve organisations and the way they do business, by analysing the strengths and weaknesses of TQM and Relationship Marketing, as well as the different tools employed in their implementation and integrating these approaches to provide the customer with a total solution.

His three fundamental principles can be seen below: Commonly used in the Automotive Industry, it was pioneered at Toyota then spread to other manufacturers such as Honda and Ford.

The Rapport between Total Quality Management and Relationship Marketing – Marketing Papers

They aimed to achieve customer satisfaction through increased quality of products and processes, where everybody is responsible for ensuring and improving the quality. It has been said that this keystone ideology is also part of marketing orientation where customer focus, continuous improvement and commitment are all important.

total quality management and relationship marketing

Barthie and Sarkar Implementing the TQM philosophy, organisations are visualised as a series of internal customers all responsible for ensuring the quality required by their next and the overall customer are met.

Is it then necessary, for each business function to provide the relevant information regarding the quality of their step in the process, this approach suggests that instead of remaining as a single independent function that in fact marketing becomes a part of the management function of each area of the business.

Relationship Marketing The Relationship Marketing concept, is a move from traditional transaction marketing where often the customer interaction ends with the sale, to a relationship approach which involves identifying and satisfying the customers long term needs so they will return BerryGummessonWebster On the contrary Anderson and Narus have suggested that the traditional marketing should still be applied for certain products or situations for example; when supplying standard, generic products where costs associated with maintaining long term customer relationships and the current market can have a large adverse effect on profitability.

Total Relationship Management TRM Zineldin is described as a philosophy born out of Relationship Marketing where all business relationships internal and external such as suppliers, collaborators, bankers etc.

Optimising these relationships focuses on the productivity and profitability as well as the effectiveness and efficiency of satisfying the customer needs. This like TQM requires the commitment and involvement of all people within the organisation. Customer feedbacks should be regularly and carefully monitored before formulating any major business strategy.

total quality management and relationship marketing

How can you ignore your customers who pay for your products which eventually bring revenues to your organization and yield higher profits? Understand the needs and demands of the customers Total quality management ensures that employees understand their target customers well before making any changes in the processes and systems to deliver superior quality products for better customer satisfaction.

Infact, organizations introduce total quality management or any other quality management process to increase their customer base and levels of customer satisfaction. Remember customer dissatisfaction leads to loss of business. In service industry, employees need to interact with the customers sensibly and with utmost care and professionalism to expect happy and loyal customers.

total quality management and relationship marketing

Design various feedback forms for the customers for them to share what they feel about your products and services. The feedbacks may be in favour of your organization, may not be in favour of your business.