Industrial Marketing Management 31 (2002) 695 703

What industrial marketers need to know now about ISO 9000 certification A review, update, and integration with marketing
Thomas H. Stevensona,*, Frank C. Barnesb
a

Department of Marketing, University of North Carolina at Charlotte, 9201 University City Boulevard, Charlotte, NC 28223-0001, USA b Department of MIS/OM, University of North Carolina at Charlotte, Charlotte, NC 28223-0001, USA Received 11 August 2000; received in revised form 1 April 2001; accepted 25 May 2001

Abstract The ISO certification process has been in existence for 14 years. During that time, hundreds of thousands of suppliers of mainly industrial products and services have become ISO 9000 registered. However, the adoption rate of ISO 9000 certifications in US industry has lagged that of other developed countries. This is now changing; the number of new ISO 9000 certifications being obtained annually in the US is currently higher than most other countries in the world. Concurrently, the ISO 9000 certification series recently underwent a major revision, and much has been learned about the ISO 9000 certification process over the last 14 years. Therefore, industrial marketers who have taken a wait and see approach or have decided that the process is irrelevant to their businesses may need to reconsider this decision. To assist in this process, this article reviews the former and current ISO 9000 certification process, discusses the criticisms of the program, provides information regarding costs and benefits of certification, and offers suggestions for effectively integrating certification with the marketing program. D 2002 Elsevier Science Inc. All rights reserved.
Keywords: ISO 9000 certification; ISO 9000:2000; Industrial marketing; Quality standards; Business-to-business

1. Introduction ISO 9000 originated in 1987 with a bulletin from the International Organization for Standardization (ISO). Its purpose was to provide a series of international standards dealing with quality systems that could be used for external quality assurance purposes. Companies interested in demonstrating that their procedures met international quality standards could seek ISO 9000 certification by hiring a registration (certification) organization, accredited by ISO, to perform a quality system audit and grant ISO 9000 certification. Currently, the American National Standards Institute administers this procedure in the United States where ISO 9000 registration has been sought and obtained by thousands of US industrial suppliers. Now the ISO 9000 standards have been revised. New standards were officially published on December 15, 2000 and despite criticisms of the process, there is little sign of
* Corresponding author. Tel.: +1-704-687-4432; fax: +1-704-6876463. E-mail address: thsteven@email.uncc.edu (T.H. Stevenson).

abatement of interest in ISO 9000 certification. Instead, the number of ISO 9000 registrations is increasing. By the end of 1999 there were 343,643 certifications in 150 countries, a 26.4% increase over the previous year. The second greatest number of new registrations by the end of 1999 was in the US (Australia was first) where 8067 new ISO 9000 certificates were issued, a 32.3% increase from the previous year. Further, the number of new US registrations has increased annually every year over the previous 5 years. Thus by the end of 1999, there were 33,054 ISO 9000 certificates issued to businesses in the US [1]. However, even though the growth in ISO 9000 certifications in the US continues, the total number of US registrations trails that of other regions. In fact, the US represents only 9.6% of companies registered worldwide, and total North American (Canada, Mexico, and the US) registrations represent only 13.1% of worldwide registrations. In comparison, European registrations represent more than 55% of the worldwide total, those in the Far East region represent about 16%, and the number of certifications in these regions is still increasing [1]. If US registrations continue to increase at the current rate, thousands more US

0019-8501/02/$ see front matter D 2002 Elsevier Science Inc. All rights reserved. PII: S 0 0 1 9 - 8 5 0 1 ( 0 1 ) 0 0 1 8 0 - 8

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suppliers will be considering joining the ranks of those already ISO 9000 certified. Further, since the overwhelming majority of certifications are issued to suppliers of business and industrial products and services, the industrial sector of the economy is where most of the increase will occur. As a result, it is timely to revisit the ISO 9000 certification process. In doing so, this article will briefly review the ISO 9000 registration process and recent changes, review the criticisms of the process, and identify the costs and benefits of ISO 9000 certification. Further, to assist industrial marketers who may already have received ISO 9000 certification as well as those who may be considering doing so, this article will provide suggestions for effectively integrating ISO 9000 certification into the marketing program while avoiding marketing errors that may violate ISO guidelines.

2. ISO 9000: background and standards ISO 9000 is one of many product and service standards developed by the International Standards Organization. Founded in Europe in 1947, the purpose of ISO is to facilitate worldwide trade through the development of international quality standards that add value to products and services. Among the activities of this organization, and perhaps the most influential and far-reaching, was the issuance in 1987 of the ISO 9000 series of international standards for quality management that provided companies with a series of guidelines regarding how to establish systems for managing quality products and services. Companies utilize the standards to document practices that impact the quality of their offerings. By following the ISO 9000 standards, companies can gain and maintain ISO 9000 certification, thus officially documenting that the processes influencing the quality of their products or services conform to ISO 9000 requirements.

The underlying premise of ISO 9000 certification is that the creation of products and services is the result of a system. The inputs to and outputs from the system can be measured at various points as the system adds value. ISO 9000 registration documents the procedures in the system and measures how well the procedures conform to such documentation. In short, ISO 9000 sets standards for quality systems, i.e., paperwork not products, by providing companies with a series of guidelines for establishing such systems. ISO 9000 is actually several standards, and the standards were simplified in December 2000. (Table 1 outlines the original and revised ISO 9000 standards.) Under the revised program, ISO 9000: 2000 is the general standard that serves as an overall guide to the other standards. Its purpose is to provide definitions of terms and a basic explanation of the ISO 9000: 2000 standards. ISO 9001: 2000 consolidates the former ISO 9001/9002/9003 standards into a single document and is the only standard to which certification is currently assessed. ISO 9004: 2000 provides further guidance for continuous improvement of internal quality management systems. As is the case with the recent revisions, periodically the standards are updated. Customized new programs, such as AS9000, QS 9000 and ISO 14000, have been added over the years. AS (Aerospace) 9000 was developed and implemented by the aerospace industry as was QS (quality system) 9000 by the automotive industry. Both industries needed more specific and prescriptive systems of standards. To illustrate, QS 9000 includes stipulation for 100 percent on-time delivery, supplier development programs, and statistical record keeping far beyond what is required in ISO 9000 [2]. ISO 14000 was introduced in 1996 to provide a series of international standards for environmental management. These standards deal with environmental audits, labeling, environmental performance, and terms and definitions [3]. Now that the ISO 9000 series has undergone a major revision the result is a simplified version of the original

Table 1 The ISO 9000 series Standard Original standard (ISO 9000) ISO 9000 ISO 9001 ISO 9002 ISO 9003 ISO 9004 Focus Quality management and assurance standards for selection and use Quality systems model for quality assurance in organizations whose processes include design, development, production, installation and servicing Quality systems model for quality assurance in organizations whose processes include production and installation, but not design and development Quality systems model for quality assurance in organizations whose processes use final inspection and testing to meet product and service quality requirements Quality management and quality system element guidelines

Revised standards (ISO 9000: 2000) ISO 9000: 2000 Quality management system fundamentals and vocabulary defines terminology and standards ISO 9001: 2000 Quality management systems requirements used to assess compliance with requirements (consolidates the former ISO 9001/9002/9003 into a single document) ISO 9004: 2000 Quality management systems guidelines for performance improvement offers guidance for continual management system improvement

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standards that is more closely tied to quality initiatives. Suppliers already holding ISO 9000 certification will have 3 years to transition to the new version. As was the case with ISO 9000, however, companies seeking initial ISO 9000: 2000 certification must be audited by an independent third party registrar, and they will not find the implementation process materially different from the previous standard. The certification process is daunting and lengthy. Nevertheless, since the inception of ISO 9000 many sources have been developed that provide step-by-step procedures to facilitate the process, and as ISO 9000: 2000 takes hold and replaces the former ISO 9000 series, updated versions will become available. Illustrative of what has been available, for example, is a manual in the form of a workbook to guide the process [4]. Wolak [5] provided an extensive list of software products and providers to guide companies through the barriers and over the intricacies of ISO 9000 registration. Johnson [6] provided thorough coverage in ISO 9000: Meeting the New International Standards, as did Zuckerman [7] in ISO 9000 Made Easy: A Cost Saving Guide. Ferguson [8] described an eight-step implementation procedure using a computerized system designed by Wilson [9]. In addition to these sources, the following stepwise procedure was recently posted at the ISO website [10]: 1. 2. 3. 4. 5. 6. Identify the goals you want to achieve. Identify what others expect of you. Obtain information about the ISO 9000 family. Apply the ISO family of standards in your management system. Obtain guidance on specific topics within the equality management system. Establish your current status, determine the gaps between your quality management system and the requirements of ISO 9001: 2000. Determine the processes that are needed to supply products to your customers. Develop a plan to close the gaps identified in Step 6 and develop the processes determined in Step 7. Carry out your plan. Undergo periodic internal assessment. If it is necessary for you to demonstrate conformance, go to Step 12, otherwise go to Step 13. Undergo independent audit. Continue to improve your business.

3. Criticisms of ISO 9000 certification One issue that has emerged is that ISO 9000 is not industry specific. Opponents claim ISO 9000 is too general and fails to address the problems and issues inherent in specific industries. Worldwide, ISO 9000 registration is strongest in the electrical, basic metal, construction, machinery, and chemical industries. The chemical industry especially, facing tough international competition, has embraced ISO 9000. Dupont, in fact, created its own ISO 9000 service for use both inside and outside the industry. On the other hand, automakers, steel makers, and some woodworking machine manufactures are among those who tend to say that ISO 9000 registration primarily benefits consultants. One result of this attitude could be seen in the auto industry in the late 1980s. In the face of concerns by suppliers regarding duplication of effort in the documentation required by the big three automakers, QS 9000 was implemented in 1994. With the permission of ISO, QS 9000 included ISO 9001 verbatim. Although this did not end concern about competing standards, there were some interesting results of the unique quality programs in the auto industry. In 1994, Chrysler and GM mandated that their first-tier suppliers be certified by the end of 1997. However, by the summer of 1997, the Auto Industry Action Group reported 2791 locations certified, leaving roughly 7000 uncertified. At that time Chrysler and GM issued the ultimatum that suppliers get certified or cease doing business with them. Fifteen months later, 8645 suppliers were registered [11]. Another criticism of the ISO 9000 certification process involves the regulation and implementation of the standards. These procedures are controlled by the participating countries standards organizations, which select the organizations qualified to issue ISO 9000 certifications. Once registrars become accredited, there is no single set of guidelines for them to follow, and the amount of work a company is required to do for certification can vary according to the registrar. In the past, not all companies or countries would acknowledge certification from all registrars. Therefore, some companies such as Hewlett-Packard, Motorola, Novell, and Microsoft led a self-certification movement. This provided greater flexibility to meet their objectives, reduced costs, and increased customer understanding of the quality management systems. Similarly, the National Tooling & Machinery Association asked its 3000 members to conform to ISO 9000 standards rather than pursue actual certification. Thus, self-paced compliance is viewed by some as a viable option to ISO 9000 certification. Other criticisms of ISO 9000 registration concern the costs, benefits, and relationship to quality of the formal certification process. The process that has developed was not envisioned when ISO 9000 was established. Many experts believe that ISO 9000 certification is too costly and is a pursuit of quality certificates rather than a pursuit of quality. To illustrate, a critic in 1994 stated: While rooted

7. 8. 9. 10. 11. 12. 13.

However, despite the availability of ISO guidelines and other well-developed materials to help companies through the certification process, achieving certification is complex, and this complexity is costly both in terms of dollars and man-hours. Therefore, certification is one source of considerable criticism of ISO 9000, but other issues have surfaced over the 14 years since the inception of ISO 9000. The following section will examine the criticisms of the ISO 9000 certification process.

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in good intentions, once dissected, it is painfully obvious that ISO certifications are merely more expensive and elaborate schemes that promise high quality and an competitive edge . . . certification costs are astronomical and growing, and an ISO certification means little in Europe. When the smoke clears, the only organizations guaranteed to profit from this experience will be those deemed to be qualified to do the audits and issue the certificates [12]. In retrospect this was probably an oversimplification, because some recent studies have indicated that some companies have experienced benefits in terms of profitability, communications, operations, and market expansion (these will be discussed in the next section). Nevertheless, there are many businesses that have taken a wait-and-see approach because some companies that have achieved ISO 9000 certification have found that actual results have not equaled those anticipated. Further, there is no question that ISO 9000 registration requires a mountain of paperwork and adds so much structure that some believe that it interferes with new and better ways of operating. However, with regard to the issue of ISO 9000 certification being mere paperwork rather than a quality standard, it is apparent that ISO was sensitive to this criticism because the 2000 revisions were patterned on national quality standards such as the Malcolm Baldridge Awards in the US [13]. According to ISO [14], the December 2000 revisions of the ISO 9000 series take account of developments in the field of quality, and are built on eight universal quality management principles. The eight principles are: customer focus, leadership, involvement of people, process approach, systems approach to management, continual improvement, factual approach to decision making, and mutually beneficial supplier relationships. In summary, ISO 9000 certification has been criticized for its generality, irrelevance to quality, and complexity, and the newly introduced ISO 9000: 2000 standards address several of these concerns. Nevertheless, other significant issues revolve around the costs of achieving ISO 9000 certification and the somewhat dubious benefits of certification. These issues will be discussed more fully in the sections that follow.

4. Costs of ISO certification There are five factors that appear to be the primary concerns regarding the cost of ISO 9000 certification. The main issues are the total cost of the process, the costs in employee time and training, and the costs of consultants and registration fees. The Quality Systems Update reported that the average total registration cost, including training and implementation, was US$245,200 [15]. A survey of equipment manufacturers showed large corporations spending more than US$1 million for certification, and smaller companies (annual sales about US$25 million) spending an average of US$250,000, plus annual maintenance costs

of more than US$70,000. These costs included registration fees of about US$35,000 for a 3-year cycle, employee time, and in some cases, additional employees [16]. Factors that have an influence on final total costs are company size, number and type of products, and the existing state of the quality control system; but the four major factors that generate costs in achieving ISO certification are time, consultants, training, and the registration itself. The amount of time required to achieve certification ranges from about 3 months to 2 years, but is usually about 1 year [15,17,18]. The time required depends on many factors, including a firms size and complexity, current level of work quality, extent of current documentation, and the degree of management commitment, and time requirements are frequently cited as a major problem in the certification process [15,19,20]. Typically, a 6- to 12-month training and preparation period is followed by an intensive yearlong effort to adapt ones procedures to the ISO standard. Once a company has achieved certification, it faces follow-up visits by auditors every 6 months to make sure the company is following its own procedures. After 3 years, the organization must undergo another full assessment. Consultants to facilitate the process can accelerate the initial registration process, but also contribute to costs. They can be retained to assist with any part of the procedure, or can be employed to take a company from start to finish, virtually assuring passage of the ISO audit. Consultants fees generally range from US$800 to US$1600 per day. Employee training, another major cost factor, usually costs US$4000 to US$5000 for a single site. A core group of employees consisting of the ISO coordinator, senior managers, and team leaders receives a formal overview in a 1day introductory class typically costing about US$500 per person. The coordinator also takes another 2-day advanced seminar usually costing about US$1000. Additional expense factors are the internal cost of preparing documents, document control, and retraining of employees. The other major cost factor is the registration fees themselves. The National ISO Support Group asked a sample of registrars to submit a quote for a 250-employee automotive supplier with a single manufacturing site. The average cost for registration fees was US$10,290, ranging from US$3500 to US$20,400 [21]. However, the fees for a larger business site could reach US$40,000. Surveillance costs over the 3-year period could run another US$3,000 to US$4,000, plus travel. Thus, it is apparent that when the costs of time, consultants, training, and registration are totaled, certification can represent a major expense. Nevertheless, claims regarding time and cost expenditures should be viewed with some skepticism. A Colorado survey revealed that 70% of respondents did not keep track of the time spent on the ISO 9000 registration process and 58% indicated that they did not keep track of the costs. The rationale offered was that the decision to seek registration was strategic, customer driven, or in the long-term interests of the

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company. Indeed, 93% reported that they did not attempt to justify the costs of the ISO 9000 registration procedure [15]; this suggests that there are benefits associated with ISO 9000 certification.

5. Benefits of ISO 9000 certification Suppliers seek ISO 9000 certification in anticipation that it will bring with it significant benefits. These may offset, or at least mitigate the costs. Among the reasons for pursuing registration are increased market share, meeting customer requirements, and improving process efficiency [22]. Others seek certification to reduce costs [23] or to achieve external benefits of improved quality and competitive advantage, and internal benefits of improved documentation and quality awareness [24]. An overview of the top 10 anticipated benefits is shown in Table 2 [25]. The findings of these studies suggest four primary benefits associated with ISO 9000 certification: improved communications, improved operations, cost savings/improved profitability, and market expansion. Each will be considered more fully below. Improved communication has been a frequently cited benefit of ISO 9000 certification. In a survey of ISO 9000certified manufacturing companies in New Zealand, Lee and Palmer [26] reported that both large (defined as those with more than 100 employees) and small companies experienced improved communication after ISO implementation. Zuckerman and Hurwitz [27] indicated that interpersonal communication between employees and managers and between employees and customers would be improved, and that internal conflicts would be reduced with ISO 9000 registration. Another recent study of over 1200 ISO certified companies in India [28] indicated that communication improvements led to better employee understanding of process and responsibilities, and better management control. Perhaps as a result of improved internal communications, some companies achieving ISO 9000 certification also report improved company operations. This was the case, for example, with Clark-Reliance. A manufacturer of liquid
Table 2 Top 10 anticipated benefists of ISO certification Benefit Percent agreeing Anticipated 1. Improvement in documentation 2. Improvement in operating standards 3. Improvement in quality awareness 4. Able to sustain market share 5. Improvement in perception of product quality 6. Able to increase market share 7. Reduction in cases of nonconformity 8. Improvement in customer satisfaction 9. Improvement in competitive advantage 10. Reduction in quality audits Source: Skrabec [25]. 73.8% 68.4% 71.6% 67.3% 65.1% 62.9% 60.7% 58.6% 57.8% 50.2% Achieved 84.5% 74.5% 77.4% 57.4% 64.7% 45.1% 54.6% 52.8% 44.8% 48.0%

processing equipment, Clark-Reliance scheduled joint meetings between its sales and production departments during the implementation of ISO. The result was an improvement of its on-time delivery from 30% to 90% [29]. Nevertheless, company operations do not always improve to the level anticipated prior to certification (see Table 2). Indeed, a study of US and Canadian companies in the electronic, electrical equipment, and components industry compared certified and non-ISO 9000 certified companies [18]. It found no difference in operational performance between the two groups of companies in this industry. Despite this finding, the authors of the study were reluctant to conclude that registration does not impact business performance, instead recommending that longitudinal analyses be conducted on a larger sample of companies across a broader spectrum of industries. Similarly, Lee and Palmer [26] called for more studies of ISO 9000 certification related performance improvements, especially in relation to firm size. However, their study of ISO 9000-registered companies concluded that company performance improves significantly after becoming ISO 9000 certified. This conclusion is consistent with those of Lee [30], Skrabec [31], and Terziovski et al. [32]. With regard to cost savings and improved profitability, research findings have generally been positive. For example, a survey by Lloyds Register Quality Assurance indicated ISO 9000 registration increased net profits [33]. Simmons and White [18] found that, after controlling for size, ISO 9000 registered companies were more profitable than nonregistered companies. A joint study by Deloitte-Touche and Quality Systems Update reported that companies claimed average annual savings of US$179,000 from registration [34]. Another Deloitte-Touche survey [5] reported that the costs of registration were recovered in 3 years. According to the British Standards Institution [29], firms that achieve ISO 9000 certification reduce their annual operating costs by an average of 10%. This result is echoed in the recent comments of George Roberts, director of ISO systems for Maytag. Although he could not reveal actual cost savings, he indicated that savings were substantial and that the system pays for itself, time and time again [35]. Market expansion is also thought to be facilitated by ISO 9000 certification, but as in the case of several of the other anticipated benefits, not to the level expected prior to certification (see Table 2). This finding, unfortunately, has been corroborated by several studies. For example, a study of contract food-service operators determined that 67% of respondents had sought ISO 9000 certification for marketing reasons, but less than 25% achieved the expected benefits [36]. Weston [15] reported that only 35% of his respondents felt that ISO 9000 registration provided a competitive advantage or helped meet customer expectations. Similarly, Nield and Kozak [37] surveyed hospitality enterprises in the UK and found that a chief reason for seeking certification was to gain a competitive marketing advantage. However, the authors were disappointed to find

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that only slightly more than 50% of those responding obtained this result. Yet even though ISO 9000 certification does not always yield the expected impetus to market growth and even though it is not governmentally mandated, large certified corporations are requiring certification of their suppliers. This is because ISO 9000 certification requires that certified companies qualify their vendors and many companies meet this requirement by mandating that their suppliers be certified. Thus, ISO 9000 is frequently a condition for doing business; so enterprises seeking to expand (or maintain) their markets by serving as suppliers to ISO 9000 registered companies seek registration themselves. Indeed, as Ferguson [8] asserted, industrial buyers often use the list of ISO registered suppliers as their only source for identifying potential suppliers. Thus, ISO 9000 certification can serve as a door opener for certified companies while placing noncertified companies at a competitive disadvantage. Juran [38] posited this relative disadvantage of noncertified companies as the major reason that companies sought certification. Francis Leitner, Quality Assurance Manager at Seimans Westinghouse Power in Charlotte, NC commented, In our markets, ISO 9000 and the quality controls it means are pretty much expected. Brian Risley of Phelps Dodge Magnet Wire in Fort Wayne, IN noted that certification is a condition for doing business with our automotive customers and even on down the line [39]. Struebings [23] study of 48 ISO 9000 certified companies in the New York area lends support to these assertions. She found that one of the top two reasons for seeking registration was that customers required it. It appears, therefore, that certification provides credibility for sellers. Buyers have the knowledge that a certified supplier has had to demonstrate and document adherence to worldwide standards for quality systems. This assures purchasers that a potential supplier can provide products of a consistent quality [40]. This assurance provides suppliers an important advantage, because it has been shown that the perception of quality is a fundamental factor in market success [41]. Indeed, in a well-regarded study, Jacobson and Aaker [42] analyzed the PIMS database and concluded; customers seem to place a premium on quality and are willing to reward those firms perceived as offering a quality product. According to Steve Wilson, director of Powerway Institute in Indianapolis, The trophy youre after is customer loyalty, an advantage that being ISO 9000 certified offers [35], and it has been shown that a perception of higher quality is one result of ISO 9000 certification [20,43]. Beyond the benefit of a quality perception that is afforded the products and services of the supplier, from the standpoint of the buyer there is a peripheral benefit to dealing with ISO 9000 certified suppliers. According to Peter Bowman, quality manager of Gould Shawmut of Newburyport, MA, [the buyer] can cut way down on audits by customers [39]. This results in time and opera-

tional savings. Moreover, if the supplier base, including first-, second-, and third-tier suppliers is ISO 9000 certified, then the buyers final products, which may consist of thousands of parts and components from registered suppliers, should have superior quality, performance, and reliability. This in turn could support the buyers own marketing aspirations. Nevertheless, the benefits of certification do not occur automatically with the attainment of ISO 9000 registration. On the contrary, effective market expansion requires careful integration of ISO 9000 certification into overall marketing strategy.

6. Integrating ISO 9000 registration and marketing Among the reasons suppliers cited for seeking ISO 9000 registration were to sustain or increase market share, to improve customer satisfaction, and to improve competitive advantage. Yet many companies report disappointment in their results because what they achieved did not equal what they anticipated. There are many possible explanations for why marketing achievement fell short of expectations. Looking at it optimistically, there are certainly situations where companies seeking certification already had competitive marketing advantages and were merely seeking to bolster them. Such companies realize that ISO 9000 is only one of many necessary components of an effective marketing plan. On the other hand, where there has been disappointment in the marketing results of certification there may have been a failure to understand the true nature of the ISO 9000 certification process. There may also have existed an overly optimistic expectation of certification benefits. Equally plausible is that some companies may have simply failed to include the marketing function in the certification process. Others may not have achieved expected marketing benefits because they did not adequately market their certifications. What is apparent, however, is that attainment of market expansion objectives does not occur automatically with achievement of ISO 9000 registration. On the contrary, effective attainment of marketing objectives through ISO 9000 certification can be difficult, and Houser and Somers [44] indicated that unless customer satisfaction is attained, a company couldnt fully reap the benefits of certification. Thus, careful integration of ISO into overall marketing strategy is required, and there are several steps that can be taken to do so. Early in the process it is important to realize that the decision to seek ISO 9000 certification should not be viewed as the sole responsibility of manufacturing or operations. Many companies viewed certification this way in the past because quality assurance managers usually report to manufacturing management. However, the new ISSO 9000: 2000 standards extend well beyond manufacturing because they aim at customer satisfaction, specifically citing customer focus and mutually beneficial supplier

T.H. Stevenson, F.C. Barnes / Industrial Marketing Management 31 (2002) 695703 Table 3 Promotion of ISO 9000 certification Promotional medium Advertising Use of certification information

701

Note your certification in all magazine and journal ads and on your website; mention certification status during any radio or television spots; show registration status on billboards and displays; use trade directories and catalogs to note certification; and mention registration in all direct mail pieces. Personal selling Train sales people and other sales middlemen on the meaning and significance of ISO 9000 registration and encourage them to discuss it with customers; mention registration during outbound and inbound phone contacts; show ISO status on banners and other signage during sales meetings and group presentations. Publicity/public relations Issue press releases upon achieving ISO 9000 certification; note registration status in annual reports; include ISO status on technical articles and reports; show ISO certification during charity activities and in sponsorships; display ISO status when conducting seminars; mention ISO 9000 status in newsletters. Sales promotion Note certification on all advertising specialties, in brochures, on business cards and letterhead; display registration status at trade shows, fairs, and wherever exhibits are used; be sure all catalogs, brochures and packaging materials show registration status; display registration status on company identified vehicles.

relationships as two of the eight principles on which the standards are based. This means that marketing involvement is critical because it is the responsibility of marketing to understand current and future customer needs and to communicate these needs throughout the organization, and marketing has the necessary access to customers to do so. Another important step in integrating ISO 9000 certification is executive level involvement. According to Steve Wilson of Powerway Institute, The implementation of a quality program is no easy feat, without [top] management support it is unlikely the program will be successful [35]. The importance of executive level involvement is underscored by the results of a recent study [20] that found inadequate executive management involvement to be the most frequently cited obstacle to successful IOS 9000 certification. Another study [22] identified inadequate support from marketing management as a barrier to successful certification. This finding lends credence to an assertion by ONeal and LaFief [45] that many marketing managers have a limited understanding of marketings key responsibilities for quality. The involvement of executive level marketing management in the implementation of ISO 9000 certification would be instrumental in changing that perception. In addition to the points raised above, a further need is effective communication of the real meaning of ISO 9000 certification. Certainly this communication is needed with regard to external constituencies, such as suppliers, current

customers, and potential customers. Especially important is training the sales force and other customer-involved personnel regarding the importance of registration achievement and how to use this information with customers and others in the supply chain. Attention to training internal noncustomer employees regarding the meaning and purpose of ISO 9000 certification is also required, because ISO 9000 certification pervades the entire organization, and one of the quality principles upon which ISO 9000: 2000 is based is involvement of people. Employees knowledgeable in the meaning and importance of certification are an important component of communication with the external constituencies, but much more can be done to integrate ISO 9000 attainment into the marketing program. This integration could take many forms, such as simply including the words ISO 9000 certified in company phone greetings and on the company website. All printed materials including brochures and letterhead should indicate that the company has ISO 9000 certification. Sales proposals and responses to quotation requests should identify the company as ISO 9000 certified. Charity sponsorships should include mention of ISO 9000 certification and company identified vehicles should include ISO 9000 certification as a component of the identification. Many of these and additional ways to gain benefits from ISO 9000 certification are shown in Table 3, which shows how to integrate ISO 9000 certification into the promotion

certification or ISO registration per se or ISOphrase ISO 9000 certification is commonlydoes not exist. Correct usage is ISO 9000 certification ISOISO 9000 registration. 9003. However, it used certification against The practice to identify the specific standard(s) forgenerically to refer tohas been achieved. ISO 9000, 9001, ISO 9002, or ISO is better which conformance a ranking between ISO Materials that implyof quality quality than another. 9000, ISO 9001, ISO 9002, and ISO 9003 are misleading. The individual standards differ in scope and one is not better or higher registered trademark of Standardization in The ISO logonotisaaproduct quality label. Nothe International Organization forcertified or ISOand cannot be used andconnectionbewith ISO 9000 certification. product service ISO 9000 registered, it show an ISOa 9000 is or the product itself, with ISO 9000orcertifiedisstamped9000it. The certificate refers only to the quality would incorrect to employedimagea of product, on management system by company, not the products or services of the company.
a

Table 4 Publicizing ISO 9000 registration correctlya

Excerpted from: Publicizing Your ISO 9000 or ISO 14000 Certification (1998), Geneva, Switzerland: ISO Central Secretariat [46].

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program. Although not meant to be an exhaustive list, it does overview how promotion may be combined with ISO 9000 certification to support marketing objectives. However, a note of caution is in order. Companies are not free to use ISO 9000 in marketing in any manner they choose. ISO monitors the ways that companies refer to their certifications to assure truthful and straightforward practices. Table 4 provides some guidelines to assist companies in appropriate usage of ISO 9000 registration.

References
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7. Discussion and conclusions It has been 14 years since the ISO 9000 standards were introduced, and still the annual increase in ISO 9000 registrations remains high as thousands of companies worldwide seek certification of their quality systems. During much of this time however, US registrations have trailed those of other countries due to questions about whether the benefits of ISO 9000 registration were sufficient to offset the costs and sheer complexity of becoming certified. Now, in light of recent findings that indicate that the process does offer worthwhile payoffs, many US companies that have avoided certification are reconsidering that decision. The result is that the number of new US certifications currently exceeds that of most other countries. Further, the ISO 9000 standards were significantly changed in December 2000, and many of the criticisms of the original standards were addressed. Therefore, industrial marketers who have avoided ISO certification in the past may wish to reconsider that decision. For those that determine that ISO 9000 registration may be feasible and worthwhile, careful analysis is needed prior to seeking ISO 9000 certification. It is important early on to determine the role that ISO 9000 plays in the relevant industry and markets. If this analysis reveals that ISO 9000 certification is necessary to support competitive and marketing objectives, then the company should undertake the process, but it should be undertaken with a full realization of the cost and time expenditures required for successful implementation. Also important in this process is providing for needed executive involvement and planning for how ISO 9000, once achieved, will be integrated into the companys marketing program. Attention to these steps is critical in assuring that the company and its customers obtain the maximum benefits of the program. Still, ISO 9000 registration is not appropriate for all suppliers. Some industries have adopted other quality standards that serve them well. Others serve limited markets where the benefits would not justify the costs, and others lack the internal structure or financial resources necessary to support such a system. In these cases, the ISO model could still serve a useful purpose as a benchmark to assess the adequacy of quality programs. This should contribute to the systematic improvement of overall company quality and profit.

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Thomas H. Stevenson is the Charles E. Cullen Distinguished Professor of Marketing at the University of North Carolina at Charlotte. Frank C. Barnes is Professor of Production/Operations Management at the University of North Carolina at Charlotte.