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Read the pages and make a brief summary of them with your own words, please. Mention important parts. Also, you will put your comments and ideas about the topic. please don't write item by item

Read the pages and make a brief summary of them with your own words, please. Mention important parts. Also, you will put your comments and ideas about the topic. please don't write item by item

Principles Of Marketing
Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
Section: Chapter Questions
Problem 1.1DQ
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Read the pages and make a brief summary of them with your own words, please. Mention important parts. Also, you will put your comments and ideas about the topic. please don't write item by item

HUMAN RESOURCES AND COMPETITIVENESS Teamwork The point is made continually throughout this book that the most valuable resources for enhancing competitiveness are human resources. The truth of this point becomes appar- ent if one studies the approach taken by Germany and Japan Leadership at All Levels to rebuild from the rubble of World War II. Both countries were devastated. Being left with only one real resource, the human resource, Germany and Japan were forced to adopt an approach that used this resource to the greatest possible advantage. The German and Japanese systems are not perfect, nor are they infallible. They are examples of approaches that work as well as any other two systems can in a continually changing and unsure global marketplace. Further, they make wise and effective use of human resources. Employee Involvement and Empowerment COMPARISONS OF INTERNATIONAL COMPETITORS High-Quality Education and Training According to a report published by the World Economic Forum, the United States has reclaimed its place as the most competitive country in the world community.' This is good news, since the United States had slipped to fifth place dur- ing the 1990s. This means that in spite of the poor perfor- mance of students in the United States when compared with the performance of students in other industrialized nations, the United States has managed to improve in the areas of standard of living, manufacturing productivity, investment, and trade, which are critical indicators of national competi- Business, government, and labor leaders in the United States could learn a great deal from Germany and Japan. People often respond to suggestions that such study might be helpful by claiming that the culture of the United States is so different that what works in these countries won't work in the United States. Such thinking misses the point entirely: few countries could be more different from one another than Japan Cooperation Among Business, Labor, and Government FIGURE 2.13 Strategies for Human Resource Competitiveness in Japan and Germany. tive status (Figure 2.12). 11. Reengineering of processes 12. Mergers and acquisitions 13. Outsourcing and contracting 14. Reliance on consulting services and Germany, yet the approaches to competitiveness adopted by these countries are strikingly similar (see Figure 2.13). CHARACTERISTICS OF WORLD- CLASS ORGANIZATIONS 15. Political lobbying Trade It is often said that only "world-class" organizations can com- pete in the global marketplace. But what is a world-class orga- nization? In an attempt to answer this question, the American Management Association (AMA) conducted a global survey. According to this survey, the following are the top 15 areas in which organizations are concerned about doing well as they attempt to compete in the global marketplace: Of the 15 areas listed in the survey, several are directly as- sociated with the larger issue of quality. Customer service, quality control and assurance, innovation, team-based ap- proach to work, partnerships and alliances, and reengineer- ing of processes are all topics that figure prominently in any discussion of total quality. In addition to these issues, the AMA survey found that respondents were concerned about a number of human re- sources topics. The ten most important of these are as follows: Investment Manufacturing 1. Customer service Productivity 2. Quality control and assurance 3. Research and development/new product development 1. Worker productivity (improvement) 4. Acquiring new technologies 5. Innovation 2. Employee training and development Standard of Living 3. Open communication between management and employees 6. Team-based approach (adopting and using effectively) 7. Best practices (study and use of) 8. Manpower planning 9. Environmentally sound practices 4. Employee benefits and perquisites 5. Codes of workplace conduct 6. Conflict resolution FIGURE 2.12 Critical Indicators of National Competitive Status. 10. Business partnerships and alliances 7. Employee satisfaction
Transcribed Image Text:HUMAN RESOURCES AND COMPETITIVENESS Teamwork The point is made continually throughout this book that the most valuable resources for enhancing competitiveness are human resources. The truth of this point becomes appar- ent if one studies the approach taken by Germany and Japan Leadership at All Levels to rebuild from the rubble of World War II. Both countries were devastated. Being left with only one real resource, the human resource, Germany and Japan were forced to adopt an approach that used this resource to the greatest possible advantage. The German and Japanese systems are not perfect, nor are they infallible. They are examples of approaches that work as well as any other two systems can in a continually changing and unsure global marketplace. Further, they make wise and effective use of human resources. Employee Involvement and Empowerment COMPARISONS OF INTERNATIONAL COMPETITORS High-Quality Education and Training According to a report published by the World Economic Forum, the United States has reclaimed its place as the most competitive country in the world community.' This is good news, since the United States had slipped to fifth place dur- ing the 1990s. This means that in spite of the poor perfor- mance of students in the United States when compared with the performance of students in other industrialized nations, the United States has managed to improve in the areas of standard of living, manufacturing productivity, investment, and trade, which are critical indicators of national competi- Business, government, and labor leaders in the United States could learn a great deal from Germany and Japan. People often respond to suggestions that such study might be helpful by claiming that the culture of the United States is so different that what works in these countries won't work in the United States. Such thinking misses the point entirely: few countries could be more different from one another than Japan Cooperation Among Business, Labor, and Government FIGURE 2.13 Strategies for Human Resource Competitiveness in Japan and Germany. tive status (Figure 2.12). 11. Reengineering of processes 12. Mergers and acquisitions 13. Outsourcing and contracting 14. Reliance on consulting services and Germany, yet the approaches to competitiveness adopted by these countries are strikingly similar (see Figure 2.13). CHARACTERISTICS OF WORLD- CLASS ORGANIZATIONS 15. Political lobbying Trade It is often said that only "world-class" organizations can com- pete in the global marketplace. But what is a world-class orga- nization? In an attempt to answer this question, the American Management Association (AMA) conducted a global survey. According to this survey, the following are the top 15 areas in which organizations are concerned about doing well as they attempt to compete in the global marketplace: Of the 15 areas listed in the survey, several are directly as- sociated with the larger issue of quality. Customer service, quality control and assurance, innovation, team-based ap- proach to work, partnerships and alliances, and reengineer- ing of processes are all topics that figure prominently in any discussion of total quality. In addition to these issues, the AMA survey found that respondents were concerned about a number of human re- sources topics. The ten most important of these are as follows: Investment Manufacturing 1. Customer service Productivity 2. Quality control and assurance 3. Research and development/new product development 1. Worker productivity (improvement) 4. Acquiring new technologies 5. Innovation 2. Employee training and development Standard of Living 3. Open communication between management and employees 6. Team-based approach (adopting and using effectively) 7. Best practices (study and use of) 8. Manpower planning 9. Environmentally sound practices 4. Employee benefits and perquisites 5. Codes of workplace conduct 6. Conflict resolution FIGURE 2.12 Critical Indicators of National Competitive Status. 10. Business partnerships and alliances 7. Employee satisfaction
8. Flextime arrangements management, seamless integration with sales and market- ing, close to zero inventory, and networked or collaborative operations. By applying these criteria to themselves and their competitors, world-class manufacturers determine where their performance is and where it needs to be in order to compete globally. • On-time delivery of products that meet specification (98 percent or better). • Productivity improvements over the last three years (improvements in all applicable areas). • Investment in capital equipment as a percent of sales on a three-year average (10 percent minimum). • Annual sales from products introduced in the last three years (50 percent minimum). • Investment of new product development as a percent of sales (10 percent minimum). 9. Management-employee-union relations 10. Child care Once again, the AMA survey identified numerous quality- related concerns and functions that organizations must do well if they hope to compete globally. Worker productivity, em- ployee training and development, codes of workplace conduct, conflict resolution, employee satisfaction, and management- employee-union relations are all total quality-related topics that are addressed at various points in this text. Production and Supply-Chain Strategies In the area of production and supply-chain strategies, world-class man- ufacturers use the following methods to stay ahead of the competition: collaborative planning, forecasting, and replen- ishment; collaborative manufacturing and product design; direct delivery of materials to point of use; supplier-managed inventory; and use of channel-assembly distributors. Other manufacturers also use these strategies to varying degrees. Ultimate manufacturers stay ahead of the competition by using them extensively. FIGURE 2.14 To Compete in the Global Marketplace, Manufacturers Must Consistently Exceed These Benchmarks. financial considerations rather than broader thinking that encompasses all factors that contribute to organizational excellence and make a company competitive. MANAGEMENT-BY-ACCOUNTING: World-Class Manufacturing: What It Takes ANTITHESIS OF TOTAL QUALITY Organizations in business sectors ranging from banking to commercial transportation attempt to compete on a global scale. The most prominent of these come from the manufac- In too many businesses, accounting trumps quality. Often, managerial accounting becomes the tail that wags the dog-a questionable approach to doing business in a highly com- environment. When managerial accounting becomes management-by Management-by-accounting amounts to focusing solely on an organization's financial performance rather than manag- ing the factors that most affect financial performance (e.g. people, process, and quality). The most obvious problem with management-by- turing sector. World-class manufacturers are those that con- sistently provide superior value (quality, cost, and service) for customers. The methods of world-class manufacturers The master's of business administration degree, or MBA, is an excellent credential. So are the various other under- graduate and graduate degrees available from colleges and universities the United States. It is the concept of Customization Strategies In the area of customiza- tion strategies, world-class manufacturers use the following methods: building to order, mass production that is config- ured for individual customers, configuring to order (linking sales operations to production schedules), one-to-one cus- tomization for customers in real time, and global sourcing and manufacturing. As with the other strategies, it is not just the fact that ultimate manufacturers use these customiza- -accounting, quality inevitably suffers. in focusing excessively on the score rather than the game- management-by-accounting-that is being questioned by quality advocates, not any specific degree. Management- by-accounting is an approach to management, not an aca- demic credential. As anyone knows, both the game and the score are im- portant. We advocate a blending of the principles of quality management with the curricula of business, engineering, technology, and management programs. Students pursuing a degree in any of these disciplines should learn the principles of are summarized in the following subsections: Competitive Analysis Strategies In the area of com- petitive analysis, world-class manufacturers use the follow- ing methods to compare themselves with the competition for the purpose of improving their own performance: cost efficiencies in operation, speed to market, research and development supremacy rapid delivery from suppliers, first-class delivery logistics, zero defects, real-time order is that it leads to short-term thinking and short- term decision making. According to this approach, one of the fastest ways to improve financial performance in the short run is to ignore investing in continual improvement that are nec- essary to remain competitive in the long run. The practices like (1) keeping people trained and well equipped; (2) employ- ing mance levels; and (3) aspects of an organization's operations cost money in the short run but nay off in the Jong run, In other words, total quality tion methods that makes them world class; it is the extent to which they use them. quality management set forth in this book as well as their tra- ditional curriculum content. This will ensure that they know Electronic Commerce Strategies In the area of electronic commerce strategies, world-class manufactur- ers use the following methods: supply management, buy- ing, auctioning, Internet ordering, status and availability tracking by Internet, and accepting Internet orders from customers. World-class manufacturers use electronic com- practices to keep processes operating at peak perfor- world-class maintaining quality in how to continually improve both performance and the score. QUALITY TIP is a long-term concept while management-by-accounting is a short-term concept. One of the many reasons why companies fall into the management-by-accounting trap is that many CEOS come from a finance-related background, the most com- Lesson from Toyota's Quality Problems Few companies are more closely associated with quality than Toyota. With the assistance of W. Edwards Deming. Toyota pioneered the quality revolution that helped transform Japan from a bombed-out shell of a country following World War Il into an economic superpower. However, as events have proven, even a quality giant such as Toyota can stumble. Fol- lowing a serious damage to its image and also to its profitloss statement caused by a succession of product recalls, Toyota began to tackle the difficult task of winning back its lost cred- ibility with customers and the general public. Along the way. Toyota's leadership learned a valuable lesson about how to recover from a quality crisis. That lesson was this: when fixing the problems, focus on the needs of your customers. Toyota knew that just recalling cars and fixing the problems would not be sufficient. Consequerntly, the car-maker offered a va- tiety of incentives to entice Toyota owners to bring their cars in for the necessary repairs, Then the company paid for all fepairs and parts. It also provided discounts and extended warranties as options available to customers. This was a re- sponsible way to get past the crisis, However, the real issue is whether Toyota will identify and correct the root cause of the recall problems. Doing so will be the key in determining if the Japanese auto giant can fully and permanently recover from its problems. This is the most important lesson to learn from Toyota's recall crisis. merce strategies almost twice as often as their competi- tors. In addition, these world-class organizations are on track to increase their use of electronic commerce over the next five years at a rate well beyond the projected rates of competitors. degree among the American CEOS being degree mon college an MBA-a avoid such ideological pitfalls, all business-related de- grees need to include a more thorough study of quality. It is also why more quality professionals need to put them- selves on the "CEO track" in their professions. Consider the following problems that result from the application of management-by-accounting: a strong finance orientation. To Compensation Systems In the area of compensa- tion systems, world-class manufacturers use the following methods as benchmarks for rewarding and recognizing managers and employees: product profitability, inventory levels, manufactured/delivered costs per unit, worker pro- ductivity, level of cycle time. cost efficiencies in operations, employee reten- customer satisfaction, manufacturing - Management-by-accounting leads to decision making by analysis of financial spreadsheets rather than by consider ation of the factors that lead to organizational excellence and world-class quality. speed of response fion rates of revenues from new products, total delivered cost per unit, zero defects, percent of costs saved from strategic nutsourcing, integration of functions across the tion, economic value added, and percent of products from strategic alliances Figure 2.14 contains a hrief checklist of minimum performance benchmarks that manufactur- ers must be able to meet in order to compete in the global marketplace. to market demands, percent irom - Management-by-accounting encourages short-term cost cutting instead of long-term improvements to quality, value, and competitiveness. . Management-by-accounting leads to narrowly focused leadership of companies hased solely on short-term
Transcribed Image Text:8. Flextime arrangements management, seamless integration with sales and market- ing, close to zero inventory, and networked or collaborative operations. By applying these criteria to themselves and their competitors, world-class manufacturers determine where their performance is and where it needs to be in order to compete globally. • On-time delivery of products that meet specification (98 percent or better). • Productivity improvements over the last three years (improvements in all applicable areas). • Investment in capital equipment as a percent of sales on a three-year average (10 percent minimum). • Annual sales from products introduced in the last three years (50 percent minimum). • Investment of new product development as a percent of sales (10 percent minimum). 9. Management-employee-union relations 10. Child care Once again, the AMA survey identified numerous quality- related concerns and functions that organizations must do well if they hope to compete globally. Worker productivity, em- ployee training and development, codes of workplace conduct, conflict resolution, employee satisfaction, and management- employee-union relations are all total quality-related topics that are addressed at various points in this text. Production and Supply-Chain Strategies In the area of production and supply-chain strategies, world-class man- ufacturers use the following methods to stay ahead of the competition: collaborative planning, forecasting, and replen- ishment; collaborative manufacturing and product design; direct delivery of materials to point of use; supplier-managed inventory; and use of channel-assembly distributors. Other manufacturers also use these strategies to varying degrees. Ultimate manufacturers stay ahead of the competition by using them extensively. FIGURE 2.14 To Compete in the Global Marketplace, Manufacturers Must Consistently Exceed These Benchmarks. financial considerations rather than broader thinking that encompasses all factors that contribute to organizational excellence and make a company competitive. MANAGEMENT-BY-ACCOUNTING: World-Class Manufacturing: What It Takes ANTITHESIS OF TOTAL QUALITY Organizations in business sectors ranging from banking to commercial transportation attempt to compete on a global scale. The most prominent of these come from the manufac- In too many businesses, accounting trumps quality. Often, managerial accounting becomes the tail that wags the dog-a questionable approach to doing business in a highly com- environment. When managerial accounting becomes management-by Management-by-accounting amounts to focusing solely on an organization's financial performance rather than manag- ing the factors that most affect financial performance (e.g. people, process, and quality). The most obvious problem with management-by- turing sector. World-class manufacturers are those that con- sistently provide superior value (quality, cost, and service) for customers. The methods of world-class manufacturers The master's of business administration degree, or MBA, is an excellent credential. So are the various other under- graduate and graduate degrees available from colleges and universities the United States. It is the concept of Customization Strategies In the area of customiza- tion strategies, world-class manufacturers use the following methods: building to order, mass production that is config- ured for individual customers, configuring to order (linking sales operations to production schedules), one-to-one cus- tomization for customers in real time, and global sourcing and manufacturing. As with the other strategies, it is not just the fact that ultimate manufacturers use these customiza- -accounting, quality inevitably suffers. in focusing excessively on the score rather than the game- management-by-accounting-that is being questioned by quality advocates, not any specific degree. Management- by-accounting is an approach to management, not an aca- demic credential. As anyone knows, both the game and the score are im- portant. We advocate a blending of the principles of quality management with the curricula of business, engineering, technology, and management programs. Students pursuing a degree in any of these disciplines should learn the principles of are summarized in the following subsections: Competitive Analysis Strategies In the area of com- petitive analysis, world-class manufacturers use the follow- ing methods to compare themselves with the competition for the purpose of improving their own performance: cost efficiencies in operation, speed to market, research and development supremacy rapid delivery from suppliers, first-class delivery logistics, zero defects, real-time order is that it leads to short-term thinking and short- term decision making. According to this approach, one of the fastest ways to improve financial performance in the short run is to ignore investing in continual improvement that are nec- essary to remain competitive in the long run. The practices like (1) keeping people trained and well equipped; (2) employ- ing mance levels; and (3) aspects of an organization's operations cost money in the short run but nay off in the Jong run, In other words, total quality tion methods that makes them world class; it is the extent to which they use them. quality management set forth in this book as well as their tra- ditional curriculum content. This will ensure that they know Electronic Commerce Strategies In the area of electronic commerce strategies, world-class manufactur- ers use the following methods: supply management, buy- ing, auctioning, Internet ordering, status and availability tracking by Internet, and accepting Internet orders from customers. World-class manufacturers use electronic com- practices to keep processes operating at peak perfor- world-class maintaining quality in how to continually improve both performance and the score. QUALITY TIP is a long-term concept while management-by-accounting is a short-term concept. One of the many reasons why companies fall into the management-by-accounting trap is that many CEOS come from a finance-related background, the most com- Lesson from Toyota's Quality Problems Few companies are more closely associated with quality than Toyota. With the assistance of W. Edwards Deming. Toyota pioneered the quality revolution that helped transform Japan from a bombed-out shell of a country following World War Il into an economic superpower. However, as events have proven, even a quality giant such as Toyota can stumble. Fol- lowing a serious damage to its image and also to its profitloss statement caused by a succession of product recalls, Toyota began to tackle the difficult task of winning back its lost cred- ibility with customers and the general public. Along the way. Toyota's leadership learned a valuable lesson about how to recover from a quality crisis. That lesson was this: when fixing the problems, focus on the needs of your customers. Toyota knew that just recalling cars and fixing the problems would not be sufficient. Consequerntly, the car-maker offered a va- tiety of incentives to entice Toyota owners to bring their cars in for the necessary repairs, Then the company paid for all fepairs and parts. It also provided discounts and extended warranties as options available to customers. This was a re- sponsible way to get past the crisis, However, the real issue is whether Toyota will identify and correct the root cause of the recall problems. Doing so will be the key in determining if the Japanese auto giant can fully and permanently recover from its problems. This is the most important lesson to learn from Toyota's recall crisis. merce strategies almost twice as often as their competi- tors. In addition, these world-class organizations are on track to increase their use of electronic commerce over the next five years at a rate well beyond the projected rates of competitors. degree among the American CEOS being degree mon college an MBA-a avoid such ideological pitfalls, all business-related de- grees need to include a more thorough study of quality. It is also why more quality professionals need to put them- selves on the "CEO track" in their professions. Consider the following problems that result from the application of management-by-accounting: a strong finance orientation. To Compensation Systems In the area of compensa- tion systems, world-class manufacturers use the following methods as benchmarks for rewarding and recognizing managers and employees: product profitability, inventory levels, manufactured/delivered costs per unit, worker pro- ductivity, level of cycle time. cost efficiencies in operations, employee reten- customer satisfaction, manufacturing - Management-by-accounting leads to decision making by analysis of financial spreadsheets rather than by consider ation of the factors that lead to organizational excellence and world-class quality. speed of response fion rates of revenues from new products, total delivered cost per unit, zero defects, percent of costs saved from strategic nutsourcing, integration of functions across the tion, economic value added, and percent of products from strategic alliances Figure 2.14 contains a hrief checklist of minimum performance benchmarks that manufactur- ers must be able to meet in order to compete in the global marketplace. to market demands, percent irom - Management-by-accounting encourages short-term cost cutting instead of long-term improvements to quality, value, and competitiveness. . Management-by-accounting leads to narrowly focused leadership of companies hased solely on short-term
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