MANAGING

THE MARKETING
FUNCTION

Prepared by:
Group II
CONTENTS:
 What is the Marketing Concept?
 The Engineer and the Four P’s 0f Marketing
 The Product
 The Price
 The Place
 The Promotion
 Strategic Marketing for Engineers
 Selecting a Target Market
 Developing a Marketing Mix
 Engineering managers are engaged in the
production of tangible or intangible goods.
 Some of these engineer managers are
directly responsible for marketing the
company‘s products or services.
 If he is promoted as general manager, both
the production and marketing
 At whatever management the level the
engineer manager works, he must be
convincing others to patronize his outputs.
WHAT IS THE
MARKETING
CONCEPT?
 Marketing is a group of activities designed
to facilitate and expedite the selling of
goods and services.
 The marketing concept states that the
engineer must try to satisfy the needs of
his clients by means of a set of
coordinated activities
 When clients are satisfied with what the
company offers, they continually provide
business.
THE ENGINEER AND
THE FOUR P‘S OF
MARKETING
 The engineering organization will be able
to meet the requirements of its clients (or
customers) depending on how it uses four P‘s
of marketing which are follows:

1. the product (or service)

2. the price
3. the place, and
4. the promotion.
 The Product

 In the marketing sense, the term “product”

includes the tangible (or intangible) item and its
capacity to satisfy its specific need.
 The services provided by the engineer manager
will be evaluated by the client on the basis
whether or not his or her exact needs are met.
 When a competitor comes into the picture abd
sells the same type of service, the pressure to
improve the quality of services sold will felt.
 When the improvement is not possible, “extras”
or “bonuses” are given to clients.
 An example is the construction company that
provides “free estimates” on whatever inquiries
on construction are received.
The Price

 Price refers to “the money or other

considerations exchanged for the purchase or
use of the product, idea, or service”.
 Some companies use price as a competitive tool
or as means to convince the customer to buy.
 When products are similar in quality or other
characteristics, price will be strong factor on
whether or not a sale will be made .
The Place

If every factor is equal, customers would prefer to

buy from firms easily accessible to them. If time is
of the essence, the nearest firm will be patronized.
It is very important for companies to locate in
places where they can be easily reached by their
customers. Not every place is the right location for
any company.
When a company cannot be near by the customers,
it uses other means to eliminate or minimize the
effects of the problem.
The Promotion
 When engineer managers have products or
services to sell, they will have to convince buyers
to buy from them.
 Before the buyer makes the purchasing decision,
however, he must first be informed, persuaded
and influenced.
 The activity referred to, in this case as
promotion.
 McCarthy and Perreault define promotion as
“communicating information between seller and
potential buyer to influence attitude and
behavior.”
There are promotional tools available and the
engineer manager must be familiar with them if
he wants to use them effectively. These tools are
as follows:

1. advertising
2. publicity
3. personal selling
4. sales promotion
Advertising

 Nylen defines advertising as “a paid message that

appears in the mass media for the purpose of
informing or persuading people about particular
products, services, beliefs, or action.
 The mass media referred to include television,
radio, magazines, ana newspapers.
 If the engineering manager wants to reach a large
number of people, he may use any of the mass
media depending on the specific needs and his
budget.
 Publicity
 The promotional tool that publishes news or
information about a product, service or idea on
behalf of a sponsor but is not paid for by the
sponsor is so called publicity.
 The mass media is also the means used for
publicity.
 If the engineer manager knows how to use it ,
publicity is very useful promotional tool.
 His message maybe presented as a news item,
helpful information, or an announcement.
 Personal Selling
 A more aggressive means of promoting the sales of a
product or service is called personal selling.
 It refers to the “oral presentation in a conversation
with one or more prospective purchasers for the
purpose of making the sale”.
 Personal selling may be useful to the marketing
efforts of the engineer manager. If, for instance,
he is the general manager of a firm manufacturing
spare parts, he may assign some employees to
personally seek out spare parts dealers and big
trucking companies to carry their product lines.
Sales Promotion

 Any paid attempt to communicate with the

customers other than advertising, publicity, and
personal selling, may be considered as promotion.
 This includes displays, contests, sweepstakes,
coupons, trading stamps, prizes, samples,
demonstration, referral gifts etc.
 Contest and sweepstakes are very popular sales
promotion tools.
 STRATEGIC
MARKETING
FOR ENGINEERS
Companies, including those managed by
engineer managers, must serve markets that
are best fitted to their capabilities. To
achieve this end, a very important activity
called strategic marketing is undertaken.

Under thus set-up, the following steps are

made:
1. Selecting a target market
2. Developing a marketing mix.
Selecting a Target Market
 A market consists of individuals or organizations,
or both, with the desire and ability to buy a
specific product or service.
 To maximize sales and profits, a company has the
option of serving entirely or just a portion of its
chosen market.
 Within markets are segments with common need
and which will respond similarly to a marketing
action.
The Construction Market and Its Segment
THE CONSTRUCTION
MARKET

Residential Industrial Government

Segment Segment Segment

actual actual
construction construction
sub-segment sub-segment

construction construction
materials materials
sub-segment sub-segment

actual actual
construction construction
sub-segment sub-segment
 An analysis of the various segments of the chosen
market will help the company make a decision on
whether to serve all or some of the segments. The
segment or segments chosen become the target
market.
 In selecting a target market, the following steps
are necessary:
1. Divide the total markets into groups of people who
have relatively similar product or service needs.
2. Determine the profit potentials of each segment.
3. Make a decision on which segment or segments will
be served by the company.
Factors Used in Selecting Target Market
 A target market must have the ability to
satisfy the profit objectives of the company.
 In selecting a target market, the following
factors must be taken into consideration:
1. The size of the market, and
2. The numbers of the competitors serving the
market.
Developing a Marketing Mix

 After a target market have been identified, a

marketing mix must be created and
maintained. The marketing mix consists of
four variables:
1. product
2. price
3. promotion
4. place
 Given a marketing environment, the engineer
manager can manipulate any or all variables
to achieve the company‘s goals.
 The quality of the product may be enhanced, or
the selling price made a little lower, or the
promotion activity made a little more aggressive,
or a wider distribution area may be covered. Any
of all the foregoing may be undertaken as
conditions warrant.
 Total Demand and Net Demand as a Guide for
Determining Target Market
Telephone Lines in Cabanatuan City
Demand and Supply Situation
1997

Total Demand 150,000 lines

Supply
Company A 50,000 lines
Company B 30,000 lines
Company C 10,000 lines
Total Supply 90,000 lines
NET UNSATISFIED DEMAND 60,000 lines
 THE END
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