CHAPTER 11
MANAGING THE
FUNCTION
W H AT I S T H E M A R K E T I N G C O N C E P T ?
MARKETING
MARKETING CONCEPT
A group of States that the
engineer must try to
activities
satisfy the needs of
designed to his clients by means
facilitate and of a set of coordinated
activities.
expedite the
selling of goods
and services.
THE ENGINEER AND THE FOUR P’S
OF MARKETING
THE PRODUCT
In the marketing
sense, the term
“product”
includes the
tangible (or
intangible) item
and its capacity to
satisfy a specific
need.
THE PRICE
Price refers “the
money or other
considerations
exchanged for the
purchase or use of
the product, idea, or
service.”
THE PLACE
Location
One important
element to consider
in any business
Not every place is the
right location for any
company
THE PLACE
customers would
If every factory is prefer to buy from
equal firms easily
accessible to them
If time is of the the nearest firm will
be patronized
essence
1. Hiring sales
agents to cover
specific areas.
WHEN A
4. Establishing C O M PA N Y 2. Selling
franchises in CANNOT BE to dealers
selected areas. NEAR THE in
CUSTOMERS particular
areas.
3. Establishing
branches where
customers are
located
Manufacturing companies can choose or
adapt all of the above-mentioned options.
Service companies like
construction firms adapt the
modified versions
TIPS
Research different locations
Find out about other businesses in the
area
Research your competitors
Contact local councils
Consider the current and future needs of
your business
THE PROMOTION
The activity
referred to, in this
case
When engineer Before the buyer
managers have makes the
products or purchasing
services to sell, decision,
they will have to however, he
convince buyers must first be
to buy from informed,
them. persuaded, and
influenced.
THE PROMOTION
“communicating information
between seller and potential
buyer to influence attitudes
and behavior.” McCarthy and
Perreault
The publicization of a product,
organization, or venture so as to
increase sales or public awareness.
1. Advertising
PROMOTI 2. Publicity
ONAL 3. Personal
TOOLS selling
4. Sales
promotion
1. Advertising
PROMOTI Nyle defines advertising as “a
2. Publicity
paid message that appears in
ONAL 3. Personal
the mass media for the
TOOLS selling
purpose of informing or
persuading
4. Salespeople about
promotion
particular products, services,
beliefs, or action.”
1. Advertising
PROMOTI 2. Publicity
ONAL 3. Personal
TOOLS The promotional tool that publishes
selling
news or information about a
4. Sales
product, service, or idea on behalf
promotion
of a sponsor but is not paid for by
the sponsor is called publicity.
A more aggressive means of
promoting the sales of a
1. Advertising
product or service.
PROMOTI 2. Publicity
ONAL 3. Personal
TOOLS selling
“oral4.
presentation
Sales in a
conversation with one or more
promotion
prospective purchasers for the
purpose of making a sale”.
Any
1. paid attempt to
Advertising
communicate with the customers
other than advertising, publicity,
PROMOTI 2. Publicity
and personal selling, may be
considered sales promotion.
ONAL 3. Personal
TOOLS selling displays
4. Sales contest
etc. promotion
sweeptake prizes
coupons s samples
referrals trading demonstrati
gifts stamps on
STRATEGIC MARKETING
FOR ENGINEERS
Selecting a Target Market
Developing a Marketing Mix
STRATEGIC
• carefully designed or planned to
serve a particular purpose or
advantage
MARKETING
• the action or business of promoting
and selling products or services,
including MARKET RESEARCH and
advertising
Strategic Marketing
• the way a firm effectively differentiates
itself from its competitors by capitalizing
on its strengths (both current and
potential) to provide consistently better
value to customers than its competitors.
• Organizations use strategic marketing to
create a plan to better reach and satisfy
customers while increasing profitability
and productivity.
S E L E C T I N G A TA R G E T M A R K E T
Market
• Individuals or organizations, or
both, with the desire and ability to
buy a specific product or service.
STEPS
1. Divide the total market into groups of people who
have relatively similar product or service needs.
2. Determine the profit potential of each segment
3. Make a decision on which segment or segments
will be served by the company.
FACTORS USED IN SELECTING
A TARGET MARKET
Size of the Market
Number of Competitors Serving the Market
DEVELOPING A MARKETING MIX
PRODUCT
PRICE
PROMOTION
PLACE
