Tobacco products and nicotine addiction
September 15, 2020
Homework Set Academic Essay
September 15, 2020

Market Organization

The purpose of every business organization is to make a profit as much as possible. This fete is achieved through careful production where every input is accounted for and the conversion of input to output is maximized. This is the reason different theories have been developed for use in the management of business industry. While operation management may be regarded a new concept in social studies and, therefore, least studies in marketing, it forms a basic foundation for the success of any organization. In fact, operation management is the sole reason for the differences observed between different industries. For instance, traditionally, the manufacturing industry controlled the market and the success of an organization and country could be evaluated from the product it served. Currently, this has changed, and service industry is growing faster than the manufacturing industry and, in fact, it is more satisfying than the manufacturing industry in most countries today.

Well, one may be tempted to question the observed change in marketing. The simple answer would be to understand the difference in marketing strategies, and operation management used in the different organizations country. A good example of this is to analyze the reasons Japanese industries overtook American industries in the second held of the 20th century. While Japan chose to change their operation management strategies, Americans companies held to the old system of bureaucratic management that derailed their operation and therefore progress. In America there was a strict standard of operation to be followed, which in actual sense, was so red taped to be followed. Such SOPS, therefore, have been piled with few of any of the workers caring to follow them in their operation. Unfortunately, this impeded development since people were shy of change. On the other end, Japan adopted the total quality management system and Kaizen that gave them freedom to improve services and production continuously. This freedom has seen the rapid development of Japanese industries since the 1960s and thereby surpassing the traditional manufacturing rivals, America.

Operation management and tools used in management is, therefore, a major determinant of the success of any organization. Simply defined, operation management refers to the process of careful organization of production through management of inputs and outputs and the total production process. The tools and techniques involved depend with the theories an organization follows in its operation management. This essay will discuss operation management techniques and tools used in marketing. I will start the essay by describing the total quality management and Kaizen theories of management and their application in marketing. I will then describe various operation management tools and techniques applied in marketing.

The Total Quality Management TQM is an organization approach where the organization applies all their effort to the continuous improvement in the quality of their products. Developed in the 1950s, the TQM became very popular in production and service industries until it was overtaken later by the lean manufacturing, Kaizen, Six Sigma and the ISO 900 in the 1990s. Nevertheless, TQM makes a historical theory that saw many organizations develop and grow in bounds through careful management of their operation. Likewise, Kaizen is a recent theory that was developed and popular among the Japanese industries that sought improvement in their industries. Unlike the TQM, Kaizen advocated for continuous improvement where every opportunity was a quality development opportunity and learning time. All that was required was for employees to be innovative enough and then teach their colleagues the newly developed strategies that improved the operation of the companies.

Marketing, as one of the major functions in any organization, is a service delivery function. Nonetheless, marketing is a core function since it directly determines the economic developments of the organization. It is important to study operation management in marketing because, as a service industry, it is fragmented. This fragmentation is characterized by several factors that distinguish it from manufacturing industry and other production industries. Various studies of the management of firms identifies a number of characteristics of serviced industry special to this in the industry alone. Some of these characteristics include the varied degree o interaction, customization and labor intensity applied in marketing.

The tool used in total quality management system are mainly analytical in nature that can e used to analyze the quality and quantity of service delivery. The tools help in the assimilation of various complicated issues in organization. In particular, the tools can be used in marketing to identify the target audience or market, assess the customer needs, competition analysis, market analysis, productivity changes, business structure, model creation brainstorming ideas and logistic analysis. The TQM tools are uses for specific purpose as seen and specific manner. However, no tool can stand alone, but has to be augmented with other tools to analyze and understand the full scope of information required.

Market analysis

Market analysis for a core function of any company because it affects all the logistics of a company in regard to production and marketing. Operation management tools and techniques can help an organization in analyzing the potential market for their goods. Market analysis involves analysis of the following dimensions as outlined by David (2010), market size, market trends, profitability, market growth rate, distribution channels, key success factors and details, and industry cost structure. The goal of market analysis is basically to determine the attractiveness of the business presently and in future. This is done by evaluating the opportunities and the possible threats in a bid to formulate appropriate solution to the potential threats. TQM tools can, therefore, be used to analyze the contemporary trend in business, compare them, identify the weaknesses and strengths of various strategies from this comparison and, therefore, develop a stronger base.

Competition analysis

In marketing, competitor analysis involves the study of current potential competitors’ strengths and weaknesses. The intent of this study and analysis is to get both offensive and defensive strategies in marketing. Operation management tools are essential in competitor analysis as they help an organization perform competitor profiling. In particular, competitor profiling gives intricate details concerning the competitor products and marketing strategies. By comparing the marketing strategies like target customer base, products, promotion, and prices the organization and those of the competitor business organizations, it is possible for the organization to adjust its strategies in a bid to remain competitive and relevant under in different prevailing circumstances.

Customer needs

Operation management tools can be used to identify the needs of the customers. For instance, an organization may carry out a survey to assess the customer needs thus helping the organization to customize their products to the prevailing needs of their customers. For instance, it would be absurd to invest in in marketing when the fashion you are promoting is outgrown and still expect substantial proceeds from this form of investment. Customers form the backbone of an organization no wonder in the business world; the customers are the bosses and the owners of the companies as mere servants. Any business organization willing to remain significant in the marketing industry should front products and services that are relevant to the target audience. This can only be done by using the available operational tools to survey the audience and analyze their needs. In fact, this is what powerful operation theories of management like lean theories are based in. It not only helps an organization produce goods customized for the target audience but also help minimize losses in an organization.

The objective of Total Quality management serves an integral role in marketing because it is concerned in improving customer satisfaction. There are many tools that are used in operation management where the seven management tools forming some of the principle tools that are discussed and utilized in operation management across the world. These tools were developed in 1976 by Japanese Scientists and Engineers in a bid to promote innovation and communication for the success of major projects. These tools are relevant in the contemporary marketing industry as they were three decades ago. Simply described as seven management and planning tools (MP) they include, affinity diagram, relations diagram, tree diagram, matrix diagram, matrix data analysis, arrow diagram, and process decision diagram.

The affinity diagram is the most basic tool concerned with developing abstract information. The tool gathers ideas relating them naturally. The relations diagram is a tool that is used to shows cause and effect helping the operational manger link different aspects of complex ideas. The tree diagram on the other side helps to break down the broad categories identifies in the affinity diagram into finer levels of details. It, therefore, moves from specifics to detailed analysis of the situation.

As the name suggests, matrix diagram is a tool that deals with different categories of information. As an operation management tool. It helps to identify links between the different categories of available information. This relationship helps one identify and measure the strength and role played by various individuals..

The matrix data analysis goes further to analyze the matrices that comprise the matrix diagram. Matrix data analysis can be used to make the best decision through prioritization. After prioritization, the operational manager can then use the next simpler but more specific tool; the arrow diagram that shows the specific steps to be followed to achieve the set target. The arrow diagram shows the specific order of tasks and schedule appropriate for a given project. It further highlights the potential problems and feasible solution to those problems.

The seventh tool of operation management and planning applied in Total quality management is the process decision program chart (PDPC). This tool is principally used to identify the possible problems in a plan under development.

There are, however, many more methods statistical tools that are used in tandem with the above seven tools of management as developed by JUSE. The statistical tools are appropriate since they can quantify a given parameter and aid in the development of measurable targets. As earlier suggested, TQM is concerned with satisfying the needs of the customer. The marketing operational manager can only assess this satisfaction by using quantitative measures that are achieved through analytical tools. Some of these tools include:

Pie charts and Bar Graphs

In marketing, pie charts and bar graphs can be used to identify data and compare various units as they relate to issues concerning marketing.

Forced field analysis

This tool is used to identify forces that operate in a given process. In marketing, forced field analysis is used to analyse both driving and restraining factors that promote and restrict marketing efforts respectively. By understanding these factors it is possible to strategise to maximize on the oprtunities available and eradicate the restraining factors.

Focus groups

In marketing focus groups play an integral role in advertising and promotion of a new product. it can also also be used to test the product on the general public. The general public utilize the product and then provide impartial feedback about the product to help the organization plan whether to introduce the product to the market or make some improvements.

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