MODULE OF INSTRUCTION______________________________ ENG-6301 Engineering Management

MANAGING THE MARKETING FUNCTION

Introduction

Engineer 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 functions become his
overall concern.
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 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 the four P’s marketing
which are as follows:
1. The product (or service)
2. The price
3. The place, and
4. The promotion

1. The Product (or Service)

• In the marketing sense, the term product includes the tangible
(or intangible) item and its capacity to satisfy a specific need.

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• 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.
2. The Price
• The price refers to the money or other considerations
exchanged for the purchase or use of the product, idea, or
service.
3. The Place
• If every factory is equal, customers would prefer to by from
firm easily accessible to them
• When a company cannot be near the customers, it uses other
means to eliminate or minimize the effects of the problem.
Some of these means are:
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.
4. The Promotion
• When the engineer managers have products or services to
sell, they will have to convince buyers to buy from them.
• McCarthy and Perreault define promotion as communicating
information between seller and potential buyer to influence
attitudes 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 – Nylen defines advertising as a paid message that
appears in the mass media for the purpose of informing or
persuading people about products, services, beliefs, or action.

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2. Publicity – the promotional tool that publishes news of

information about a product, service, or idea on behalf of a
sponsor but is not paid for the sponsor.
3. Personal Selling – it refers to 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.

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 this set-up, the following steps are made:
1. Selecting a target market

2. Developing a marketing mix

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1. 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.
• In selecting a target market, the following steps are necessary:
1. Divide the total market into groups of people who
have relatively similar product or service needs.
2. Determine the profit potentials of segment.
3. Make a decision on which segment/s will be served by
the company.

• Factors Used in Selecting a 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 number of competitors serving the market.

2. Developing a Marketing Mix

After the target market has been identified, a marketing mix must be
created and maintained. The marketing mix consists of four variables: the
product, the price, the promotion, and the place (or distribution).
Given a marketing environment, the engineer manager can
manipulate any or all variables to achieve the company’s goals. As such, 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

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distribution area may be covered. Any or all of the foregoing may be

undertaken as conditions warrant.

SUMMARY
To survive, companies must continuously generate income. To be
able to do so, they must be able to sell enough quantity of their products or
services. Engineering firms are no exception.
The proper management of the marketing function helps the
engineer manager convince customers to patronize the firm. Specifically, the
engineer manager must know how to use effectively the four P’s of marketing
which are the product, the price, the place, and the promotion.
An activity called strategic marketing is designed to make sure that
the marketing objectives of the firm are achieved. Strategic marketing calls
for selecting a target market and developing an appropriate marketing mix.
The marketing mix consists of the appropriate levels of product
quality, price, promotion, and place.

Reference:

Roberto G. Medina(1999). Engineering Management, First Edition.

Distributed by REX Book Store, Inc.(RBSI)

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