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Managing The Marketing Function

This document provides an overview of marketing concepts for engineering managers. It discusses the marketing concept of satisfying customer needs through coordinated activities. It also explains the 4 P's of marketing - product, price, place, and promotion. For products, the document discusses quality, extras, and competition. For price, it discusses its role in sales. For place, it discusses accessibility and location. For promotion, it discusses advertising, publicity, personal selling, and sales promotion tools. Finally, it discusses strategic marketing concepts of selecting target markets through market segmentation and analysis, and developing a marketing mix through the 4 P's to meet profit and market share objectives.

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Drew B Mrtnz
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324 views27 pages

Managing The Marketing Function

This document provides an overview of marketing concepts for engineering managers. It discusses the marketing concept of satisfying customer needs through coordinated activities. It also explains the 4 P's of marketing - product, price, place, and promotion. For products, the document discusses quality, extras, and competition. For price, it discusses its role in sales. For place, it discusses accessibility and location. For promotion, it discusses advertising, publicity, personal selling, and sales promotion tools. Finally, it discusses strategic marketing concepts of selecting target markets through market segmentation and analysis, and developing a marketing mix through the 4 P's to meet profit and market share objectives.

Uploaded by

Drew B Mrtnz
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
You are on page 1/ 27

MANAGING

THE MARKETING
FUNCTION
Prepared by:
Group II

CONTENTS:
What is the Marketing Concept?
The Engineer and the Four Ps 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
companys 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 PS OF
MARKETING

The engineering organization will be able


to meet the requirements of its clients (or
customers) depending on how it uses four Ps
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
Segment

Industrial
Segment

Government
Segment

actual
construction
sub-segment

actual
construction
sub-segment

construction
materials
sub-segment

construction
materials
sub-segment

actual
construction
sub-segment

actual
construction
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 companys 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
THANK YOU!

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