MANAGING THE
MARKETING FUNCTION
1
What is the Marketing Concept
Marketing is a group of activities designed to facilitate and expedite the
selling of goods and services.
The marketing concepts states that the engineer must try to satisfy the needs
of his clients by means of a set of coordinated activities.
The Engineer and the Foyr P’s of Marketing
1. product (or service)
2. price
3. place
4. promotion
The Product
It includes the tangible (or intangible) item and its capacity to satisfy a
specific need.
When a customer buys a car, he is actually buying the comfortable ride he
anticipates to derive from the car.
This is not to mention the psychological benefits attached to the
ownership of a car.
The services provided by the engineer manager will be evaluated by
the client on the basis of whether or not his or her exact needs are
met.
When the competitor comes into the picture and sells the same type of service,
the pressure to improve the quality of services sold will be felt.
When improvements is not possible, “extras” or “bonuses” are given to
clients.
Example:
A construction company that provides “free estimates” on
whether inquiries on construction are received.
The Price
It 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 a means to
convince the customer to buy.
When products are similar in quality and other characteristics, price
will be a strong factor on whether or not a sale will be made.
This does not hold true, however, in the selling of services and
ideas.
This is because of the uniqueness of every service rendered or every
idea generated.
When a type of service becomes standardized, price can be a
strong competitive tool.
The Place
If every factor is equal, customers would prefer to buy from
firms easily accessible to them.
If time is of essence, the nearest firm will be patronized.
When a company cannot be near the customers, it uses other
means to eliminate or minimize the effects of the problem:
1. hiring sales agents to cover specific areas;
2. selling to dealers in particular areas
3. establishing branches where customers are located;
4. establishing franchises in selected areas.
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. (called as promotion)
Promotion is “communicating information between seller and
potential buyer to influence attitudes and behavior” (McCarthy and
Perreault)
Tools in promotion:
1. advertising
2. publicity
3. personal selling
4. sales promotion
1. Advertising
Paid message that appears in the mass media for the purposes of
informing or persuading people about particular products, services,
beliefs, or action.
2.Publicity
It is 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.
3. Personal Selling
It is the oral presentation in a conversation with one or more
prospective purchasers for the purpose of making a sale.
4. Sales Promotion
Any paid attempt to communicate with the customers other than
advertising, publicity, and personal selling.
Includes displays, contests, coupons, trading stamps, prizes, samples,
demonstrations, or referral gifts.
