Proposal for the Study of Marketing Strategies, Customer Relations Management, and Total Quality Management Performance of Creative Technology, Singapore


 


 


Introduction


            Business companies and industries have long recognized the value of total quality management (TQM) in their respective operations. TQM has been defined in various ways by a number of authors and analysts. For instance,  (1995) stated that TQM is a general management philosophy that can be customized for particular business situations or environments. This, according to the authors, makes total quality management as a highly diverse and adaptable strategy. In a more recent definition,  and (1998) define TQM as a philosophy, which seeks to coordinate various functions and activities of a company like marketing, finance, customer service, finance, production and engineering. The coordination of these important functions is geared towards the provision of the customer needs and the fulfillment of organizational objectives.


 


            Alternatively, TQM has also been defined as the management philosophy that is focused on satisfying the customers though continuous improvement of the different processes in the organization (1998).  (1997) gave a simpler definition for TQM by defining it as a strategic option that is done through transformations on how the organization operates. Overall, most of the definition of TQM is focused on its ability to improve businesses, particularly in terms of profit gains, efficient production of quality goods and services, enhanced customer satisfaction and cost reduction.


 


Within the manufacturing industry, competition is also strict. The introduction of globalization and the rise of several new business entrants further increased the competition levels among companies operating in this sector. As a result, company managements have become very interested and willing to incorporate TQM in to their business. Being an essential strategy for business, it is important that its ability to improve business processes is determined and assessed. However, most of the studies conducted for TQM had identified the general effects of TQM to business. Thus, in this research proposal, marketing strategies, customer relations and TQM of Creative Technology Singapore will be studied.


 


 


Company Profile


In general, this business strategy is customer-driven that is concentrated on quality integration. This in turn facilitates the production of quality products and services. TQM is mainly performed by stressing on the significance of commitment and involvement among the employees. Currently, consumers are not only diverse in terms of types but in needs as well. As customer demands become more sophisticated, their level of complexity has increased as well. In addition, business competition in the local and international levels has grown considerably. With this situation, quality became as essential element towards business continuity and success. Hence, in order to survive the business world, organizations and companies are more motivated than ever to incorporate quality in their business operations so as to meet the needs and expectations of the customer, and eventually, their satisfaction and loyalty.


 


Creative Technology, Singapore is a worldwide leader in digital entertainment products for the personal computer and the Internet. the company was founded in Singapore in 1981 with the vision that multimedia would revolutionize the way people interact with their PCs. Creative Technology, Singapore is most famous with its Sound Blaster sound cards along with the company’s Zen and MuVo lines of digital audio players which were made possible through its innovative hardware, proprietary technology, and applications and services that leverage the Internet. Creative is widely recognized as a global leader for product innovation in the audio and Personal Digital Entertainment (PDE) technological initiatives to balance aesthetics and function when it comes to gadgets. The company’s products and solutions are marketed to consumers and system integrators through a worldwide distribution network that include traditional marketing channels, original equipment manufacturers (OEMs) and the Internet. Moreover, Creative Technology, Singapore has forged partnerships with some of the industry’s top technology companies and developers worldwide to intensify product innovation and research and development which includes Acer America Corporation, Dell Computer, Digital Equipment Corporation, Gateway 2000, Microsoft, Intel, Micron, and NEC among others. The company has acquired US-based Ensoniq, E-MU® Systems, Cambridge Soundworks, Ectiva Inc. (formerly the NetMedia group from OPTi), ShareVision® Technology, Digicom Systems and Silicon Engineering Inc. as well as UK-based 3Dlabs to penetrate the high-end professional graphics market along with its shares in US-based Sigmatel. Creative Technology, Singapore takes pride in being the first Singapore company to be listed on Nasdaq in the summer of 1992. Its global corporate headquarters is located in Singapore along with its regional headquarters in the US, Europe, Malaysia and China employing more than 5,000 people worldwide ().


 


 


Background of the Study


Marketing. Marketing can be described as the process of defining, anticipating, creating, and fulfilling customer needs and wants for product services ( 2002).  (2002) stated that functions of marketing are: customer analysis; selling products/services; product and service planning; pricing; distribution; marketing research; and opportunity analysis. One of the strategies in customer analysis is to continually monitor present and potential customers’ buying pattern ( 2002). In selling, strategies included are marketing activities such as: advertising; sales promotion; publicity; personal selling; sales force management; customer relations; and dealer relations ( 2002).


 


            In analyzing environment, market and competitors, and customers, a company should: undertake a PESTEL analysis of the general influence on the
organization; undertake a competitor profile and identify the competitor’s advantages; explore the relationship between the organization and its customers; identifying the importance of key factors for success in the environment; analyze individual competitors and their influence on strategy; identify the main international strategic competitive issues; explore and assess the importance of distributors; analyze the strategy implication of market segments; and position the product or service against competitors ( 2003).


 


            Quality. Establishing quality is important in an organization because it aims in acquiring the trust of the customers. Thus, the quality policy should be the concern of all employees, and the principles and objectives communicated as widely as possible so that it is understood at all levels of the organization. Practical assistance and training should be given, where necessary, to ensure the relevant knowledge and experience are acquired for successful implementation of the policy.  (2003) cited from Deming that “quality should be aimed at the needs of the consumer, present and future.” Furthermore, he cited from Feigenbaum that “the total composite product and service characteristics of marketing, engineering, manufacture and maintenance through which the product and service in use will meet the expectation by the customer” (2003). Furthermore, Crosby stated that quality is “conformance to requirement” and Juran added that it is a “fitness for purpose or use” ( 2003).


 


            Bethke et al (1994) stated that in essence, TQM is a company-wide perspective that strives for customer satisfaction by seeking zero defects in products and services.  (1994) added that making quality improvements was once thought to be the sole responsibility of specialists (quality engineers, product designers, and process engineers). Today, developing quality across the entire firm can be an important function of the human resource management (HRM) department. A failure on HRM’s part to recognize this opportunity and act on it may result in the loss of TQM implementation responsibilities to other departments with less expertise in training and development. The ultimate consequence of this loss is an ineffective piecemeal of the TQM strategy. Thus, according to (1994), HRM should act as the pivotal change agent necessary for the successful implementation of TQM.


 


            (1994) stressed that TQM, which has been adopted by leading industrial companies, is a participative system empowering all employees to take responsibility for improving quality within the organization. Instead of using traditional bureaucratic rule enforcement, TQM calls for a change in the corporate culture, where the new work climate has the following characteristics: an open, problem-solving atmosphere; participatory design making; trust among all employees (staff, line, workers, and managers); a sense of ownership and responsibility for goal achievement and problems solving; and self-motivation and self-control by all. The responsibilities of HRM in implementing TQM include: focus on customers’ needs; focus on problem prevention, not correction; make continuous improvements: seek to meet customers’ requirements on time, the first time, every time; train employees in ways to improve quality; and apply the team approach to problem solving ( 1994).


 


            According to  (1994) stressed that the common mistakes in the implementation of TQM that waste time and money include: “measuring the wrong indicators; focusing on behavior instead of accomplishments; emphasizing courtesy instead of competence; disguising cost control as TQM; focusing on internal instead of external improvements; failing to identify key process variables; and ineffective benchmarking.” Furthermore, the authors stressed that TQM is not a program and should not be a separate entity from the rest of the organization which adds bureaucracy. (1994) highlighted five suggestions for insuring that TQM is not perceived as a program: “Don’t give it a name or slogan; eliminate the banners, slogans, buttons; do one of two things either don’t appoint a chief quality officer or make it clear this is a temporary position phased out after a few years; don’t build a separate TQM department or organization that is responsible for the implementation of TQM; and don’t have separate committees to deal with quality related issues”.


 


            Customer Relationship Management.   (2003) stressed that intimate customer relationships offer the marketer several advantages. First, the relationship can create a committed customer. More than simply a repeat purchaser, the committed customer has an emotional attachment to the seller. These emotions can include trust, liking and believing in the firm’s ability to respond effectively and promptly to a customer problem. Committed customers can be viewed as company assets who are likely to be a source of favorable word-of-mouth referrals and are more resistant to competitors’ offers. Second, CRM relationships provide a point of leverage to realize economies of scope. Committed customers are often more receptive to line extensions. Leveraging the customer base can facilitate cross-selling complementary products as well as “selling up” to higher quality substitutes (Greco and Raggins, 2003). Third, in recent years, CRM’s potential to contain and reduce costs has been explored. CRM, in concert with other processes, can help reduce churn or turnover in a company’s customer base. Better customer management can result in lower sales and service costs, higher buyer retention and, thus, lower customer replacement expenditures ( 2003).


 


            According to  (2001), the six indicators that CRM is working within an organization is when: the organization is aligned around life cycle marketing; the offers are relevant and timely; the company has moved beyond historical data; the company can measure the relationship accurately; customer dismay is turned into customer delight; and the front-line personnel have the same understanding of objectives as your senior executives do.


 


 


Statement of the Problem


            The author proposes a study that generally aims in learning how proper marketing strategy, quality and customer relations work in the case of Creative Technology, Singapore. Specifically, the proposed study will try to answer the following queries:


 


  • What is the current quality model of Creative Technology, Singapore? Does it meet the performance that the company demands? What are its achievements? Does it need to be improved?

  • Is Creative Technology, Singapore successful in its marketing performance? Did the company improve its sales with the application of marketing strategy projects? How effective are they?

  • What are the relevant aspects of Creative Technology, Singapore’s CRM? Are strategies, underlying principles, and process of implementation for generating successful customer relationships of Creative Technology, Singapore’s CRM effective?

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    Rationale and Purpose of the Study


    The determination of the specific improvements in the manufacturing industry is an essential matter due to a number of reasons. One of which is the role of the manufacturing industries worldwide. In general, this industry is an important economic contributor to most nations. It is then important that this sector is constantly applying strategies that will improve its performance and output.


     


    This research proposal will then be useful in determining whether this goal is being supported through the application of TQM. This research will also be conducted in order to determine whether manufacturing industries must really apply TQM in their operations or if this is just a strategic option. Considering that TQM entails several major company changes and considerable resources, it is important to confirm if its application is worth all the efforts to be exerted by a manufacturer, and in this case, that of Creative Technology, Singapore.


     


    Finally, this research proposal will be conducted for the purpose of increasing the awareness of manufacturing companies on the actual improvements that could be obtained out of TQM implementation. This can make other manufacturing companies, particularly new businesses, to realize the importance of integrating quality into present operations. This research may also be of significance to manufacturing companies by giving them information on how TQM can be applied into their respective business functions.


     


     


    Objectives of the Study


                In order to complete this particular research endeavor focusing on the marketing strategies, customer relations and quality management, the following objectives were set by the researcher:


     


  • To investigate the current quality model of Creative Technology, Singapore in order to find out if it meets the performance that the company demands by examining the success of the model as well as the current needs to improve it.

  • To determine if Creative Technology, Singapore is successful in terms of its marketing performance and assess if the company improved its sales with the application of marketing strategy projects and evaluation of their effectiveness.

  • To identify and enumerate the relevant aspects of Creative Technology, Singapore’s CRM including the company’s strategies, underlying principles, and process of implementation for generating successful customer relationships.

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    Scope and Limitation


    The proposed study will only focus on the variables customer relationship management, quality management, and marketing strategies of Creative Technology, Singapore. It will only dwell on the company’s performance on the three variables and the recommendations will only be limited to those areas.


     


    Regarding the respondents, this proposed study will only conduct the research on employees in the Marketing Division, Customer Relation Department, and the department responsible in quality management, if one exists. Furthermore, the study will also conduct its survey on the top management of creative Technology, Singapore and other employees in the accounting section to determine the profit that the company acquires from projects in customer relations, quality management, and marketing.


     


                The outcome of this study will be limited only to the data gathered from books and journals and from the primary data gathered from the result of the questionnaire survey and interview that will be conducted by the researcher.


     


     


    Overview of the Methodology


    For this study, primary research and secondary research will be used. Primary research will be conducted using questionnaire surveys that will be sent to the employees of the Marketing Division, Customer Relationship Department, and Quality Management Department, if one exists. If there is no department that specifically handles TQM, questionnaires will be sent instead to the Human Relations Management (HRM). Furthermore, the top-management will also be surveyed as well as the several employees in the accounting division. Through this questionnaire survey, the researcher will hopefully get to know the performance level of all the departments mentioned. The researcher will also be conducting interview with certain respondents, particularly in the top-management and the management teams in the three departments, as well as in the HRM.


     


    The questionnaires will be used to collect quantitative data and the interviews will be used to provide qualitative insights into the data collected. A questionnaire would be emailed to the concerned employees of Creative Technology, Singapore in order to gather information to achieve the objectives of the project. Managers in the marketing division, quality management division and CRM department would be advised to complete the questionnaire and
    interview for more detailed information. The projects handled earlier, if any,
    would be researched and analyzed in order to understand the intricacies
    of the success and failure of the company. The questionnaires will be designed with a view to get answers that would determine the main objective of the study. All the questionnaires will be structured in a set and will be close-ended with multiple-choice questions. Some questionnaires will be descriptive.


     


    This research will partially base its findings through quantitative research methods because it allows the research problem to be conducted in a very specific and set terms (1992). Besides, quantitative research plainly and distinctively specifies both the independent and the dependent variables under investigation ( 2002). It also follows resolutely the original set of research goals, arriving at more objective conclusions, determining the issues of causality and eliminates or minimises subjectivity of judgment ( 1996).


     


    This study will also employ qualitative research method because it will attempt to find and build theories that will explain the relationship of one variable with another variable through qualitative elements in research. This permits a flexible and iterative approach. During data gathering the choice and design of methods are constantly modified, based on ongoing analysis. This allows investigation of important new issues about the CRM, TQM, and marketing strategies of the company and questions as they arise, and allows the investigator to drop unproductive areas of research from the original research plan. Through this method, qualitative elements that do not have standard measures such as behavior, attitudes, opinions, and beliefs within the restaurants will be analyzed. Furthermore qualitative research is multimethod in focus, involving an interpretative, naturalistic approach to its subject matter. This means that qualitative researchers study things in their natural settings, attempting to make sense of, or interpret phenomena in terms of the meanings people bring to them.


     


    The data collection instrument will be a structured questionnaire that will be based on Likert scale. A Likert Scale is a rating scale that requires the subject to indicate his or her degree of agreement or disagreement with a statement. By rating scale we mean the scales that are usually used to measure attitudes towards an object, the degree to which an object contains a particular attribute, (Like or dislike), toward some attribute, or the importance attached to an attribute. The focus group discussion, on the other hand, will be conducted with the consent of the administrators. The secondary sources of data will come from published articles from journals, books and related studies on the implementation of CRM, TQM and marketing strategies. For this research design, the researcher will gather data, collate published studies from different local and foreign universities and articles from social science journals; and make a content analysis of the collected documentary and verbal material.  Afterwards, the researcher will summarize all the information, make a conclusion based on the null hypotheses posited and provide insightful recommendations for the improvement of Creative Technology, Singapore.


     


     


     


     



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