MANAGING

THE MARKETING
FUNCTION

Prepared by:
SHERWIN A. ESPIRITU
BSME V-A
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 Engineering Manager and the
Four P‘s of Marketing

OBJECTIVES VEHICLE RESULT

The Marketing Product

Objectives Success
Price
of the or
Place
Engineer Failure
Promotion
Manager
 When a type of service becomes
standardized, price can be strong
competitive tool. When a construction
firm, for instance, charges a flat 10
percent service fee for all of its
construction services, a competitor may
charge a lower rate. Such action, however,
will be subject to whether or not the
industry will allow such practice.
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.
 Some of these problems are:

1. hiring sales agent to cover specific

areas;
2. selling to dealers in particular areas;
3. establishing branches where customers
are located;
4. establishing franchises in selected
areas.
 Manufacturing companies can choose or
adapt all of the above-mentioned options.
 Service companies like construction firms
adapt the modified versions.
 An example is the engineer manager of a
construction firm who gives commissions
to whoever could negotiate a construction
contract for the firm.
 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.
An Example of an Advertising Message
 ALECTO GENERAL TECHNOLOGY
AND
DEVELOPMENT CORPORATION

ENGINEERS • DESIGNERS •CONTRACTORS• SUPPLIER

Computer Facilities
Design and Installation

Local Area Networking-Cabling

Data and Communication and
Telecommunication Works

Electrical Wiring

Mechanical and Civil Works

Fiber Optic Cabling Installation and Termination

Supplier of UTP Fiber Optic and Coaxial Cable

1495 D. Oliman St., Makati City

Tels. 890-2571, 890-2492
890-3604, 890-3607
Fax No. 890-2978

Fi
 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.
An Example of a Publicity Release
 NOKIA PRESENTS THE FIRST PHONE DESIGNED
FOR LOCAL NEEDS

Manila, July 1, 1997 – Nokia Mobile Phones, the largest

European and world‘s largest manufacturer of mobile phones and
a world leader in digital technology, has introduced to the
Philippines the Nokia 3810 “Big Face”, the first mobile phone
designed specifically for the needs of the Asia-Pacific cellular
market.
The Nokia 3810 is a product of extensive regional
research and feedback. Tagged as Nokia “Big Face”, the 3810
has a larger screen contained in a small and sleek European
styled body, making it easier to read messages. With its unique
graphic display, the Nokia 3810 displays large or small text, it is
easier to find what you are looking for.
Moreover, Nokia 3810 provides a comprehensive range of
features like call management, memory functions, short
message services, security code/control and has the most
complete range of accessories.
Nokia Mobile Phones is a part of the Nokia Group, a global
telecommunications company headquarters in Helsinki, Finland.
Nokia employs nearly 34,000 people in 45 countries and has net
sales of US$8.5 billion in 1996. Nokia can be visited on the
world wide web http:/www.nokia.com.
 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 fou 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 Company, The Marketing Mix
and Target Market

Product
Price
Promotion Other
Place markets

THE
TARGET
MARKET

Other
Other markets
markets