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VALUE MANAGEMENT

VALUE MANAGEMENT. By Elisante Ole Gabriel (Tanzania) Chartered Marketer egabriel@edenconsult.net , www.olegabriel.com +255-784-455-499. VALUE MANAGEMENT. What is Value?

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VALUE MANAGEMENT

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  1. VALUE MANAGEMENT By Elisante Ole Gabriel (Tanzania) Chartered Marketer egabriel@edenconsult.net, www.olegabriel.com +255-784-455-499

  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)

  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)

  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

  5. VALUE CHAIN (By MICHAEL PORTER) (1985 ) FIRM’S INFRASTRUCTURE HUMAN RESOURCE MANAGEMENT Supporting Activities Margin TECHNOLOGY DEVELOPMENT Loss PROCUREMENT OPERATIONS SERVICE OUTBOUNDLOGISTICS INBOUNDLOGISTICS MARKETING&SALES Primary Activities

  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

  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)

  8. 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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