Answered: Challenge 2: Design Your Own EDS Design…

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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Question

Note: The higher the Quality and the Delivery and the lower the Price, the greater
the Customer Value.
goods or services. Go through the 6 Ms of Operations. What do you need in
terms of Money, Manpower, Machines, Methods, Materials, and Management?
step 6: Design and develop the throughput system. Determine the operating
workflow and draw the proper layout. Go through the nine critical sub-
processes of the operations function to complete the throughput system.

Transcribed Image Text:Challenge 2: Design Your Own EDS Design the EDS for your intended business using the step-by-step EDS development process below. Do a good customer or client profiling. Determine who are the most likely customers of your product or service. Who comprises the majority or significant segment of your intended customers? (Observe the customers of your most probable competitors to get this customer profile.) Step 1: Do a good product profiling. See what the customers buy and you can get a good idea of who they are. You should get a good profile of the products "most bought," "next bought" up to the "least bought." Step 2: Determine customers' QDP expectations. Customers' quality, delivery, and price (QDP) expectations can be determined by documenting all their "needs, wants, and desires" as they purchase the products or services. Their complaints are also very good indicators of what they do not like; the reverse of which is what they like. Customers' QDP expectations can also be determined by observing successful competitors. Surveying customers is another method but the questionnaire must be carefully crafted to elicit the correct answers. Sales data mining would reveal what customers buy more than others. Customers should be asked why they buy more of these items in a subsequent interview. Observing customers' behavior is another method to ascertain their QDP expectations. Step 3: Step 4: Matching customers' QDP expectations with the output needed. The quality expectations of customers dictate the product features and attributes which the final goods and services of the enterprise must possess. If the quality dimension is the expected customer outcome, then the desired product features and attributes must be very evident in the output (or goods and services) delivered by the enterprise. There must be a perfect match between the enterprise output and the customer outcomes. This perfect matching should be the obsessive compulsion of any Enterprise Delivery System designer. Quantifying the most likely demand level of customers will determine the total capacity required of the EDS, the timing or schedule of delivery, the specific market locations the goods and services must be delivered to, and under what terms and conditions they must be delivered in. Thus, the quantity parameter determines the delivery dimension of the QDP customer outcome expectations. Finally, the price expectations of customers are influenced highly by the quality they are expecting and the delivery schedule, location, terms, and conditions they are willing to tolerate. Customer value expectations can be summarized in the following formula: Customer Value Expectations Quality + Delivery %3D Price

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