Quality Designs

Completing The Design

Optimal PositionPHYSICAL
of the NewFEATURES
Product onEngineeringof
Consumer's DesignTHE NEW
Perceptual MapPRODUCT
& CBP
Optimal PositionResponse Functions of:
of the New Product• Advertising
on Consumer's(Awareness)Marketing
Perceptual Map• Sales CallsMix
&• DistributionDecisions
C. B. P.(Availability)
• Price

Quality Designs

Completing The Design

Because Perceptual Mapping & Preference Regression Tell:

 what dimensions to emphasize
 what product characteristics & psychological appeals make up these dimensions:
Therefore Marketers Can Change Consumers Preference Toward Own Products By Positioning:
Product(i) Changing (improving) physical features
Image(ii) Changing consumers' perception by advertising

Quality Designs

Levels of needs

Primary = Strategic benefits t characteristic of CBP

Secondary = tactical features associated with perceptual dimensions of CBP

Tertiary - Operational needs corresponding to detailed engineering attributes

Coordinate across levels to achieve best CBP

Quality Designs

Customer-Driven design = “Voice of the customer”

must be clear at all levels of design team functions
importance weights to guide tradeoff decisions

Engineering Characteristics

parts characteristics, not product features

link characteristics to features in hierarchy

Customer-Engineering Interface

describe customer needs in language of engineer

Communication Integration

primary barrier to integration is lack of communication

info systems facilitates collaboration.

Quality Designs

Quality Function Deployment (QFD)

technique for collaborative integration

greater effort early in design process

House of Quality - a living, growing process

diagram for achieving QFD

relationship matrix - linking need levels within hierarchy

identify engineering needs corresponding to customer needs

use spreadsheet to design

“roof” matrix models tradeoffs

Imputed importances = f (importances, relationships)

use after primary needs, consumer perceptions, & CBP set

establishes creditability of the CBP

Quality Designs

Houses of Quality

Relationships

4 = strong positive

3 = medium positive

2 = medium negative

1 = strong negative

Quality Designs

Houses of Quality -- Building houses on Boardwalk & Park Place

“What” to achieve on side of house

“How” to achieve “what” on top of house

Links consumer needs to entire process

Lays out information needs and collaboration links

Quality Designs

Design for Manufacturing

Computer-Integrated Manufacturing - CAD/CAM systems

CIM = simultaneous engineering = total quality (TQM)

Robust Design - design for range of conditions of usage

Experimental Design & Continuous Improvement

design changes varied systematically - consumer benefits measured

Taguchi methods - similar fractional factorial designs

Inner (mfgr controlled) vs outer (customer / environment) designs

Quality Designs

Design for Manufacturing

Design Dynamics & Creativity

generate few approaches at any one time

factor design into subproblems
evaluate alternatives on critical dimensions

focus on expanding alternatives

Proximity & Coordination

remove physical barriers to information flow & collaboration

utilize intranets to bridge distance and barriers

Engineering Services

critical to delivery of CBP

Quality Designs

Marketing Mix - 4 Ps

Promotion

Advertising
Copy design
budgeting
Sales
more important in industrial sales & consumer durables
Sales Promotions
consumer: samples, coupons, premiums, price-offs, etc.
trade:discounts, push money, etc.

Distribution

Logistics
Channel designs

Multiple flows: product, finance, information, title

Quality Designs

Marketing Mix - 4 Ps

Price

Psychological vs. economic considerations

Goals

Profits - short vs. long-run

Market share

Quality signal

Strategies

Skim - no imminent demand

Penetration - competition likely; quick build market share

Methods

Cost-plus -- used much in retailing

Breakeven -- popular in manufacturing

Price must be consistent with CBP

Quality Designs

Total Quality Management

ISO 9000, 9001, 9002

Auto Industry standards

More than just the product

Baldridge Awards

Leadership

Information & analysis

Strategic quality planning

Human resource use

Quality assurance of products & services

Quality results

Customer satisfaction