Lecture 6: Marketing
Productivity and Quality:
•Productivity: minimizing ratio of inputs (labour, parts, etc.) to outputs (finished products).
•In other words: making a product quickly, efficiently and cheaply.
•Productivity: ratio of inputs (hours of labour or numbers or parts, dollars worth of
parts) gone in to make a finishing product. A firm minimizing the amount of parts
and investment that goes into a product. Canadian economy is less productive than
the US economy at least 20%. Average worker turns out less than 20% of the
American worker. His maybe because; Canadian managers don’t invest on, on the job
training, don’t invest in capital equipment (machinery), American managers are
prepared to try new interesting technologies.
•Quality: making a product that us fit for use
•In other words: making a product that works as it should
Quality: giving the customer what they are expecting; what they want; the product
they think they are paying for. Making a product that is going to work like it’s
supposed to. Example of Quality: (Honda recall- air bags don’t work); Toyota’s:
breaks do not work, had to do a recall. Shares slide as reputation loses steam
(headlines). High quality reliable vehicles known as, pay a little more than the US
vehicles but it is worth it. If you sell cars that do not work, and when customers get
disappointed; sales of Chevy cobalt have increased to about 149.7 % and Toyota`s
have fallen gone into the negative percentages. Have to go back to factory and
repairing product if makes a mistake, reputation takes a major hit.
Marketing: Target Markets & Market Segmentation
-Well managed businesses:
-Do not sell what they have (product focus)
-Sell what customers want (customer focus)
-Focus on customer is called the `marketing concept`