Total Quality Marketing: The Key to Regaining Market Shares

By Allan C. Reddy | Go to book overview

CHAPTER 6
Total Quality Marketing in Practice

This chapter reviews the ways firms practice Total Quality Marketing in different industries. The application of TQMkt in services, retailing, and direct marketing is also examined. There is also a discussion of who will win the quality contest.


HOW FIRMS APPLY TOTAL QUALITY MARKETING

Not all firms respond equally to foreign competition. This is how BMW, Cummins, and Motorola have responded to their competitors. By combining Total Quality Marketing and Total Quality Management together, these firms retained their market shares and thwarted further attacks on their shares of the market by other firms. There are lessons for others from the experiences of these firms.


BMW

Eberhard von Kuenheim, Chief Executive of the Munich-based Bavarian Motor Works (BMW) had to counter the challenge of Japanese automakers who began penetrating the market shares of luxury car makers like BMW with the Japanese made luxury models like Lexus, Infiniti, and Accura. These Japanese cars are beating BMW in the J. D. Power's rankings. According to Kuenheim, quality has a different meaning to different customer groups. For example, customers of McDonald's expect a quality hamburger. But customers of an expensive hotel like the Ritz in Paris may have a different concept of quality in mind. Similarly BMW customers, who pay up to $83,000 for a car, expect high- quality performance.

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