Business management and marketing plan in automotive technical service companies in Cuba
1. introduction
In today's world, companies cannot survive simply by doing a good job; they have to do an excellent job, if they want to succeed in a market characterized by rapid growth and stiff competition, both nationally and internationally. Consumers and businesses find themselves with a great abundance of offers, seeking to satisfy their needs and therefore seeking excellent quality, value, or cost when choosing from their suppliers. Recent studies have shown that the key to companies' profitability lies in knowing and satisfying the public with competitive offers.
Today's companies have been affected by a situation of change, intensity and characteristics, very different from previous times, which shape the current world of business, such as, among others, profound changes in the organizational structure, new management systems, culture of quality and excellence, recognition of the company's responsibility, development of technological innovation, new business structures and importance of customer service.
In order to be successful in achieving competitive advantage, it is necessary to adapt the systems with greater content in the management systems so that the service philosophy can be made compatible with the demands of the environment.
Cuban companies are inserted in an environment of great resource limitations, where competition in the international market, in which they need to penetrate with a view to attracting foreign exchange to guarantee all supplies and therefore their continuous reproduction, which justifies the country's need to go in search of increasingly efficient production systems.
Achieving high levels in the service provision processes is an immediate objective for the country, this process does not only imply the reduction of costs with the consequent efficiency, but also allows full customer satisfaction by having a good service in all the senses, and of the supplier when feeling recognized and stimulated to have created it.
The SIME is not exempt, like every national company, from all these requirements, and within it, the automotive technical services take on special importance due to the particularity and diversity of ways of providing said services, so the Automotive Technical Services Unit (USTA), a repair company subsystem constitutes the focus of this investigation.
This Unit arises as a need for said company to search for new ways of income, for which a market investigation was not carried out to obtain more information and characterization of the clients as well as their needs, all of which has resulted in a dissatisfaction of their expectations, with negative criteria regarding the quality of services and non-compliance with delivery times. This situation has caused a decrease in the influx of customers to the unit and therefore an underutilization of the installed capacities.
Starting from the problem previously raised, it is defined as a hypothesis of this research that if a Quality Management Diagnosis of the unit is carried out, with a previous exploratory Market Research, and taking the results of this study for the preparation of the Plan of Marketing of the USTA, as well as carrying out an Analysis and Design of the jobs in order to study the working conditions, the factors that cause the situation under analysis can be determined, establishing proposals for improvements in the management of services of the unit that allow an increase in their income levels and a greater motivation of their workers.
Definition of variables:
• Independent variable: Low quality and organization of the services provided in the USTA.
• Dependent variable: Existence of dissatisfied customers.
To validate this Hypothesis, the General Objective of this study is to redesign the USTA's Commercial Management subsystem, preparing its Marketing Plan, based on the results of the Quality Management Diagnosis and Market Research.
The main values of the results achieved in the research are:
Methodological value:
The unit's Marketing Plan is proposed, which through its stages establishes the guidelines to be followed for commercial activity.
Social economic value:
The implementation of the proposed measures results in an improvement of the commercial management system, an increase of 25% per year in income and therefore in its efficiency, positively impacting on the level of satisfaction of workers.
Practical value:
The results obtained are of great practical use both for the USTA and for the Company to which it belongs and this is endorsed by the management of this entity.
2. Generalities of the Management System.
With the development of the Business System, the conception of the commercial function has evolved and instruments have been perfected to carry it out, identifying it with the concepts of Marketing, Marketing or Marketing, but coupled with this, technology achieves high levels of development and processes of transformation of the raw material, use of energy, goods of more sophisticated equipment, bring about a change in the use of human resources that make it possible to achieve finished products that reach very high levels that set very strong guidelines in the race to obtain of competitiveness. (Salvador M. Paris, 1994).
In no way can results be achieved in increasing competitiveness by developing the commercial function of production in isolation, since both are immersed in the same system that makes up the Company, in which together with them the existence and development of the financial function, which shapes business management seen with three basic subsystems: Marketing, Production and Finance. (Fernández E, 1993).
That is why the study of the Management System that allows such results is of vital importance for increasing the Company's competitiveness.
The Company and its environment. Influence on the study of management.
Production is usually defined as the process by which goods and / or services are normally created from entrances in which goods and services are also found to be the first products and the second factors of production. (Díaz Adenso, 1993)
It is important to take into account the relationship between the production system and its environment, based on the fact that the Company as a system has strengths and weaknesses that allow it to take advantage, mitigate or increase the opportunities and threats that come from the environment with which it interacts and from which it receives resources. with certain quality and quantity requirements according to the demands of the production system and, in this way, the environment demands results that correspond to the requirements of the environment. These requirements are framed within a set of political, economic, social, ecological, legal, and technical-organizational demands, to which a satisfactory answer must be given.
Different authors such as Bufa (1981), Miguel Fernández (1993), Maynard (1990), Koontz (1995) Carnota (1987) and others, define the concept of System.
From all of them it can be summarized that System is the set of elements, properties, which are interrelated and complement each other, whose existence will be within an environment, belonging to objective reality.
Environment: It is everything that is located outside the border.
Companies are made up of physical elements (teams, men, documents…) and abstract or subjective elements (strategies, informal relationships, styles, etc.).
They are considered as open systems with more or less openness to the environment. A company tries to reduce the influence of disturbances caused by the environment by establishing filters (analysis of offers, control of raw materials, personnel selection tests, study of suppliers, etc.).
The system (Fig 1.1) can be seen as a processor that transforms "inputs" into "outputs". The company receives financial and human resources, raw materials, information, etc. and transforms them into finished products, services, information and others.
The company as a system.
Other authors such as Company propose a general model for production management developed by Buffa, at three levels and Company justifies the applicability of similar models to the Marketing and Finance subsystems.
There are some concepts common to all companies:
• They are focused on meeting previously established objectives.
• They are psychosocial systems, that is, formed by people who work in groups.
• They are technical systems, since the people who work in them use means, knowledge and techniques.
• They are systems where the activities of the elements that compose it are structured in such a way that there is a coordination of efforts, aimed at achieving the objectives.
The environment of the company is formed by all the elements located outside the border, establishing two levels of environment, an immediate or direct action and a general or indirect action.
Among the elements of the immediate environment are: Suppliers and Suppliers, Clients, Competitors, Public Administration, Banks, Union, others.
In the general environment are located the variables: Socio-cultural, Economic, and Political-legal, in addition to the Technology element.
Service systems.
Service operations do not produce a tangible output like manufacturing operations. Service operations can be subdivided according to the degree of standardization of the outputs, that is, whether a standardized service or a service is provided to satisfy an order, and / or the processes they execute. Some non-manufacturing activities (operations that do not produce items) can be considered as a project since they involve the activities of a group of people in a given period of time (Dilworth).
A wide range of activities and services are classified as services.
According to the approach given by Kotler, services can be defined as:
»…. all activities or benefits that one party offers to another are essentially intangible and do not culminate in the ownership of the thing. Its production is not necessarily linked to a physical product. «
The services have four characteristics that must be kept in mind.
1) Intangibility: The services are intangible. They cannot be seen, tasted, felt, heard or smelled before purchase. Service providers use various means to gain customer trust:
2) Inseparability: A service is inseparable from its source, be it a person or machine. But a physical product exists regardless of whether its source is present or not.
3) Variability: The services are highly variable as they depend on who supplies them and on the time and place where the customer is carried out through suggestion systems and attention to complaints, customer surveys and purchases by comparison with which detect and correct faults.
4) Perishable character: The services are not storable. This perishable character does not pose problems when demand is stable since it is easy to program it in advance, but when demand fluctuates, it creates a problem for companies. An example of this: a public transport that must have much more equipment because the demand is more intense in the hours of high traffic of personnel.
Classification of services.
The types of service vary greatly. They can be classified in many ways:
1) People-based or team-based: The psychiatrist needs practically no equipment, but a pilot absolutely needs a plane.
Among the people-based services there are some that require professionals, for example accounting, others for specialized labor, for example plumbing, and others for unskilled labor, for example janitorial services, gardening work.
Equipment-based services include those that require automated equipment (automatic car washing); equipment operated by unskilled labor (taxis, cinematographers); and equipment operated by specialized labor (aircraft, computers).
2) Those based on the presence or not of the client in the service. The client must be present during brain surgery, but not when the car is washed. In the event that the client is present, the service provider must take into account their needs.
3) Those related to the reason for purchase, that is, if the service meets a personal requirement (personal services). or a business requirement (business services). Doctors charge their patients a different price than they charge the employees of a company that has hired their services.
4) Those based on the reasons of the service provider (reasons of a lucrative or non-profit nature) and the way it assumes (private or public).
Planning in Marketing
1. Strategic marketing planning essentially consists of choosing target markets and designing a marketing mix (Marketing MIX) that, in general, is made up of the product (Product), the price (Price), the distribution (Place) and the communication (Promotion). (Kotler, Philip 1994)
The nine basic elements of marketing. The nine P's.
Product (product)
The product is the set of benefits that the client plans to receive. It is not only the physical product such as parts and accessories but it is also the way in which the customer observes how those physical products are used for their benefit and enjoyment.
For example, in an automotive technical services unit, customers are buying the parts or accessories they use, instead meeting a need to repair their equipment.
Association
In general, many clients want to acquire a global experience, in a specific destination. To meet that need, two or more businesses that offer complementary products or services can cooperate by sharing their marketing efforts.
Package Preparation (Packaging)
This is a form of association from which combinations of possibilities and services can be offered to potential clients. The main differences lie in the fact that all the possibilities
And services can be purchased at a single price, in a single transaction.
Programming
This refers to special events or events in general that complement the product that is being offered. These are activities that offer customers one more reason to consume the services.
Prices (Price)
The price is what the customer pays for the product or service. It is important to ensure that customers receive what they think is the appropriate value for their money.
Positioning policy
It consists of differentiating the operation of a company from those of the competition, to place itself in its space in the market. Consistent policy is required.
Distribution (Place)
It refers to where, when and how the product or service reaches the customer, also referring to the channel through which the purchase was made.
Communication (Promotion)
Communication refers to the group of activities through which the company identifies with potential customers. This group of activities includes promotion, advertising, product name, image creation and public relations.
Person (people)
People are one of the most powerful forces on the market. The unit worker or mechanic can contribute to the satisfaction of the customer experience or ruin, through bad behavior, what could have been an efficient service.
A very notable and interesting aspect here is that of the confrontation between the marketing orientation and the production orientation when it comes to approaching identical attitudes and procedures. We have to mean that the production mindset, in force throughout a good part of history, is definitely taking steps towards the marketing mindset. However, this process of change, this metamorphosis of corporate culture, follows in its footsteps at a pace that, although progressive, is inevitably slow.
Table 2.1 presents some explanatory examples of the differences between the two orientations.
Table 2.1 Marketing Orientation vs. Production Orientation
| Attitudes and procedures | Marketing Orientation | Production orientation |
| Attitude towards customers. | Customer needs determine business plans. | They must be happy that we exist. |
| Product. | What can be sold is manufactured. | What is manufactured is sold. |
| Marketing role. | Determine the clients' needs and how to satisfy them (a priori). | If used, determine customer reaction (ex-post). |
| Interest in innovation. | Find new opportunities. | Technology and cost reduction. |
| Advertising | Benefits that tailor the company. | Product features and quality. |
Marketing Plans (Improven Consultores Website).
At a time like today, in which competition is increasingly intense, it is necessary to correctly use the different tools that marketing offers us in order to have the desired presence in the market. I want more information about the Product!
One of these tools is a marketing plan where the company's commercial strategy is defined, studying its positioning, its product portfolio and the markets of interest.
In the sales area, the sales structure is organized: sizing, setting objectives and control systems, organizing internal communication and defining remuneration policies.
In addition, new business opportunities and markets of interest are analyzed, as well as the profitability of current markets and products.
Decisions are also made regarding distribution, product, price, advertising and communication that are very important for the proper functioning of the company.
Likewise, the setting of objectives and deadlines is carried out to define the path that the firm must strategically follow.
With all this, the objectives sought are:
1- Plan the development of the company in a horizon of 3 to 5 years
2- Determine business opportunities and markets of interest
3- Description of the market, existing or to be created, and financial justification of the means chosen to sell products or services in it.
4- Obtaining a competitive advantage that is sustainable over time and defensible against the competition
5- Definition of corporate, departmental and individual objectives.
6- Analyze the deviations against the objectives and act accordingly
7- Internal and external communication instrument increasing the motivation of the members of the company
8- That managers have the necessary information at all times for correct decision-making
In addition, the marketing plan provides the ideal tool for correct sales management that is currently critical to the competitiveness of the company.
The successful result of Marketing planning is guaranteed with consistent Quality management, making it essential to address some important elements of this theme.
4. Characterization and diagnosis of the object of study.
General
The USTA (Automotive Technical Services Unit), has outlined for a better service the task of working with quality and reducing costs, so as to eliminate all your losses. Like any company, its mission is to perceive the realization of productions capable of staying on the market, satisfying the demand and demands of the same in order to obtain profits that allow it to continue developing its production and introduce technological advances, with the aim of achieving a greater economic efficiency, from a better use and application of the available capacities to, in this way, achieve an increase in productivity and production levels, developing new lines and thus achieve a more rational use with the use of job.
This unit provides services such as:
• Scrubbed and sprayed
• Mechanics
• Address screening
• Sheet metal
• Painting
• Electricity
• Maintenance
• Punch bowl
Proposals for improvements for the management of the services of the unit under study.
Diagnosis and evaluation of quality behavior in the provision of services.
The diagnosis is an analytical photograph of the current situation and the dynamics of its possible development, reflecting the problems, insufficiencies, virtues, weaknesses, strengths, and threats that the business organization presents in its operation. This constitutes a starting point towards the superior objective, which is business improvement, that is, efficiency in the performance of production or the provision of a service; therefore, taking into account the results of the diagnosis and supported by the established principles and procedures, companies will be able to project the way forward to achieve the efficiency demanded by the national economy.
The diagnosis is carried out in all areas and structures of the organization, always starting from the bottom up. Using for it one of the two types of diagnosis that exist which are:
- Previous or prophylactic (preliminary).
- Technical.
Preliminary diagnosis.
It is the one previously carried out to determine the health or the environment of the organization; analyzing general questions, results that allow an assessment of the company. It is specified in:
1. Organizational structure.
2. Vertical and horizontal communication.
3. Work style.
4. Knowledge of quality by managers.
5. Satisfaction of internal customers.
6. Leadership, etc.
Technical diagnosis:
It is the one carried out after the preliminary, with which the fundamental quality problems and the difficulties in its control system are perceived. Basic techniques are used for this control.
To carry out the technical diagnosis, the SERVQUAL model was used, with the analysis of two additional differences (difference 6 and difference 7), both dedicated to measuring the satisfaction and commitment of the internal client and their interaction with senior and middle managers.
In this phase of the study, survey variants were designed based on the differences conceived in the SERVQUAL model. These surveys were applied to external, internal clients and management personnel with their respective specifications.
Conceptual quality of service model (SERVQUAL):
Here is a conceptual model of service quality. The upper half of the model is simply a graphic summary of the previous one. Gap # 5 at the top is the discrepancy to which customers refer, constituting the difference between the service received and the expected service, where it was concluded that it is a function or consequence of the remaining differences. These are a product of the problems of the organization and in turn give rise to the deficiencies that the client perceives.
So we have Gap # 1 is the discrepancy between what managers think about what the customer wants and what the customer really wants. Gap # 2 refers to the difference between managerial perception and service standards. Gap # 3 is the difference between service standards (specifications) and really how it is delivered. Gap # 4 is the difference between what is offered or promised and what is delivered.
5. Market Research in the unit
After having carried out the Quality Management Diagnosis in the unit under study, as well as the Market Research, and considering the aspects obtained in both studies, the following Marketing Plan is proposed, with a view to providing a methodological tool that allows to carry out a consistent and systematic work in order to improve the quality in the management of the services of this entity.
Making the sales forecast:
We proceeded to make a forecast for the sales of the services provided in the entity under study globally, since there is a shortage of information to carry it out by type of services, as well as by process.
When analyzing the behavior and trend of sales for the months between June 1998 to April 2001, a sales forecast was made for the rest of the current year, with a view to forecasting their behavior.
For the processing of the information and given the small amount of it in terms of annual values, it was decided to calculate the trend by grouping them into quarters, obtaining eleven quarters, remaining as shown in Table 1.2
Table 1.2 Sales values in thousands of pesos (MP) per quarter.
| Periods | 1998 | 1999 | 2000 | 2001 |
| January | - | 293343.44 | 50128.40 | 28782.86 |
| February | - | 16233.77 | 66249.95 | 81143.53 |
| March | - | 20154.66 | 76285.34 | 18935.14 |
| Trimester | - | 3 65731.87 | 7 192663.69 | 11 128861.53 |
| April | - | 19507.63 | 42657.42 | (82613.40) |
| May | - | 20894.29 | 64895.66 | - |
| June | (1738.83) | 22839.86 | 66045.01 | - |
| Trimester | 4 63241.73 | 8 173598.09 | ||
| July | 7311.92 | 15163.97 | 9532.68 | - |
| August | 8242.37 | 16825.29 | 52861.91 | - |
| September | 13801.03 | 23428.21 | 35402.28 | - |
| Trimester | 1 29355.32 | 5 55 417.47 | 9 97796.87 | |
| October | 14772.03 | 58557.58 | 50064.02 | - |
| November | 12759.36 | 42631.58 | 64949.85 | - |
| December | 1566.83 | 53473.24 | 43720.29 | - |
| Trimester | 2 29098.22 | 6 154662.4 | 10 158734.16 |
Among the forecasting methods studied, those that do not forecast demand seasonally were taken, that is, those that do not estimate a fixed value of demand for different periods, so it was determined that the one that best adjusts is the Linear regression.
With the application of this method, a Bias = 0 and a MAD = 30832 were obtained taking into account that:
………. (Deviations)
T = -------
…………….MAD
we have that the tracking signal T = 0, that is, the condition is met that T must be between –6 and 6, which indicates that this forecasting technique is appropriate for the series in question.
Stages that make up the Marketing Plan:
Table 1.3
| Stages | Definition |
| 1st | Analysis of the External Situation:
|
| 2nd | Analysis of the Internal Situation:
|
| 3rd | Diagnosis of the situation
|
| 4th | Setting Marketing Objectives
|
| 5th | Choosing Marketing Strategies
|
| 6th | Definition of Action Plans
|
| 7th | Marketing Plan Execution and Control |
6. Analysis and design of jobs. Study of the level of motivation of USTA employees.
As an introductory element at this time of the research, before carrying out the analysis and design of the jobs, as a key stage of Modern Human Resources Management, it is necessary to study in the first instance the level of motivation of the employees of the Unit.
For this, the SERVQUAL tool, previously explained technique, was applied. In this case, the differences or Gaps 6 and 7 related to the internal client and managers were calculated. Surveys were also designed and applied with a view to collecting information about the internal client and managers.
Summary of these two differences.
Differences # 6 and # 7 that are added to the SERVQUAL analysis are of great importance and provide very important elements of judgment for the diagnosis, such as:
- Motivation of the internal client. Teamwork. Leadership. Communication.
Vital aspects for an organization that aims to manage quality.
The internal client is extremely important to the organization, becoming the center element of it, so their level of motivation or job satisfaction cannot be neglected at any time.
Finally, when the real situation of the job satisfaction of the workers in the unit was verified, the Ishikawa Diagram was constructed for its colossal support in detecting the possible causes and subcauses of the dissatisfaction of the employees of the unit.
Here we worked with the same experts selected previously, applying the Kendall Method where a coefficient greater than 0.50 was obtained, there being agreement between the experts.
Analysis and design of jobs.
The analysis and description of the jobs is carried out, applying the stages that for this study are contemplated in the Methodology designed for this purpose.
For this, the Questionnaire for the description of positions was applied in order to determine the activities carried out in them, the requirements (knowledge, experiences, skills) that the occupant of the position must have to carry out their functions successfully, as well as the environmental conditions that prevail in the system where it is located.
A total of 15 Profesiograms were prepared, which constitutes an element of relevant importance for working with human resources.
7. Conclusions
This study demonstrated the need to comprehensively manage the activities of an organization, that is, touch all the edges that allow seeking greater efficiency and effectiveness in the results of such management.
The practical application of the results obtained here led the unit under study to increase its income by 25%, over a period of 1 year, which validates the hypothesis initially proposed.
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