Called the marketing concept, is emphasizes customer orientation and coordination of marketing activities to achieve the organization’s performance objectives.
All planningand operations should be focused on contributing to the satisfaction of costumer’s needs.
All marketing activities in an organization should be coordinated. This means that marketing efforts(product planning, pricing, distribution and promotion) should be designed and combined in a coherent, consistent way, and that one executive should have overall authority and responsibility for thecomplete set of marketing activities.
Costumer-oriented, coordinated marketing is essential to achieve the organization’s performance objectives.
When the foreign firms added quality asdefined by costumers as a key ingredient of their strategies, it wasn’t long before U.S. consumers responded.
Thus, beginning in the 1980’s improving quality became a priority for most organizations.That is, as quality is increased, cost must go up. Although that is generally true, the relationship is not as strong as first thought. Through careful study, firms found it is possible tosubstantially increase quality without unacceptable cost increases by:
• Obtaining and responding to input from costumers about how they define quality in a particular product.
• Improving designs toreduce problems in manufacturing, and identifying and correcting problems early in the production process to reduce expensive reworking and waste.
• Encouraging employees to call attention to qualityproblems, and empowering them to initiate action to improve quality.
Every business function has a quality component.
The breadth of quality issues, along with the realization that achieving andmaintaining quality depends on the efforts of employees, led to the development of total quality management (TQM) in the 1980s.
TQM is a system for implementing organization-wide commitment to...