Managing the Marketing Function

8/2/2019 Managing the Marketing Function

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MANAGINGTHE MARKETING

FUNCTION


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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


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Engineering managers are engaged in theproduction of tangible or intangible goods.

Some of these engineer managers aredirectly responsible for marketing thecompanys 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 beconvincing others to patronize his outputs.


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WHAT IS THE

MARKETINGCONCEPT?


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Marketing is a group of activitiesdesigned 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 ofcoordinated activities

When clients are satisfied with what the

company offers, they continually providebusiness.


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THE ENGINEER AND

THE FOUR PS OFMARKETING


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The engineering organization will be

able to meet the requirements of its clients(or customers) depending on how it usesfour Ps of marketing which are follows:

1. the product (or service)2. the price

3. the place, and

4. the promotion.


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The Product

In the marketing sense, the termproduct includes the tangible (orintangible) item and its capacity to satisfyits specific need.

The services provided by the engineermanager will be evaluated by the client onthe basis whether or not his or her exactneeds are met.

When a competitor comes into the pictureabd sells the same type of service, thepressure to improve the quality of

services sold will felt.


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When the improvement is not possible,extras or bonuses are given to clients.

An example is the construction companythat provides free estimates onwhatever inquiries on construction are

received.


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The Price

Price refers to the money or other

considerations exchanged for thepurchase or use of the product, idea, orservice.

Some companies use price as acompetitive tool or as means to convincethe customer to buy.

When products are similar in quality orother characteristics, price will be strongfactor on whether or not a sale will bemade .


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The Engineering Manager and theFour Ps of Marketing

OBJECTIVES VEHICLE RESULT

The MarketingObjectives

of theEngineerManager

ProductPrice

PlacePromotion

Successor

Failure


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When a type of service becomesstandardized, price can be strong

competitive tool. When a constructionfirm, for instance, charges a flat 10percent service fee for all of its

construction services, a competitor maycharge a lower rate. Such action, however,will be subject to whether or not theindustry will allow such practice.


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The Place

If every factor is equal, customers would

prefer to buy from firms easily accessibleto them. If time is of the essence, thenearest firm will be patronized.

It is very important for companies tolocate in places where they can be easilyreached by their customers. Not everyplace is the right location for any company.

When a company cannot be near by thecustomers, it uses other means toeliminate or minimize the effects of the

problem.


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Some of these problems are:

1. hiring sales agent to cover specificareas;

2. selling to dealers in particular areas;

3. establishing branches where customersare located;

4. establishing franchises in selected

areas.


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Manufacturing companies can choose oradapt all of the above-mentioned options.

Service companies like construction firmsadapt the modified versions.

An example is the engineer manager of a

construction firm who gives commissionsto whoever could negotiate a constructioncontract for the firm.


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The Promotion When engineer managers have products or

services to sell, they will have to convincebuyers to buy from them. Before the buyer makes the purchasing

decision, however, he must first beinformed, persuaded and influenced.

The activity referred to, in this case aspromotion.

McCarthy and Perreault define promotionas communicating information betweenseller and potential buyer to influence

attitude and behavior.


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There are promotional tools available andthe engineer manager must be familiar with

them if he wants to use them effectively.These tools are as follows:

1. advertising2. publicity

3. personal selling

4. sales promotion


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Advertising Nylen defines advertising as a paid

message that appears in the mass mediafor the purpose of informing or persuadingpeople about particular products, services,beliefs, or action.

The mass media referred to includetelevision, radio, magazines, ananewspapers.

If the engineering manager wants to reacha large number of people, he may use anyof the mass media depending on thespecific needs and his budget.


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An Example of an Advertising Message

ALECTO GENERAL TECHNOLOGY


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ALECTO GENERAL TECHNOLOGYAND

DEVELOPMENT CORPORATION

ENGINEERS DESIGNERS CONTRACTORS SUPPLIER

Computer FacilitiesDesign and Installation

Local Area Networking-CablingData 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 CityTels. 890-2571, 890-2492

890-3604, 890-3607

Fax No. 890-2978


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Publicity

The promotional tool that publishes news

or information about a product, service oridea on behalf of a sponsor but is not paidfor by the sponsor is so called publicity.

The mass media is also the means used forpublicity. 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.


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An Example of a Publicity Release

NOKIA PRESENTS THE FIRST PHONE DESIGNED


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NOKIA PRESENTS THE FIRST PHONE DESIGNED

FOR LOCAL NEEDS

Manila, July 1, 1997 Nokia Mobile Phones, the largestEuropean and worlds largest manufacturer of mobile phones and

a world leader in digital technology, has introduced to thePhilippines the Nokia 3810 Big Face, the first mobile phonedesigned specifically for the needs of the Asia-Pacific cellularmarket.

The Nokia 3810 is a product of extensive regionalresearch and feedback. Tagged as Nokia Big Face, the 3810

has a larger screen contained in a small and sleek Europeanstyled body, making it easier to read messages. With its uniquegraphic display, the Nokia 3810 displays large or small text, it iseasier to find what you are looking for.

Moreover, Nokia 3810 provides a comprehensive range offeatures like call management, memory functions, short

message services, security code/control and has the mostcomplete range of accessories.

Nokia Mobile Phones is a part of the Nokia Group, a globaltelecommunications 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.


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Personal Selling A more aggressive means of promoting the

sales of a product or service is calledpersonal selling. It refers to the oral presentation in a

conversation with one or more prospective

purchasers for the purpose of making thesale. Personal selling may be useful to the

marketing efforts of the engineer manager.

If, for instance, he is the general managerof a firm manufacturing spare parts, he mayassign some employees to personally seek outspare parts dealers and big trucking

companies to carry their product lines.


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Sales Promotion

Any paid attempt to communicate with the

customers other than advertising,publicity, and personal selling, may beconsidered 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.


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STRATEGIC

MARKETINGFOR ENGINEERS

C i i l di h d b


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Companies, including those managed byengineer managers, must serve marketsthat are best fitted to their capabilities.To achieve this end, a very importantactivity called strategic marketing isundertaken.

Under thus set-up, the following stepsare made:

1. Selecting a target market2. Developing a marketing mix.


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Selecting a Target Market

A market consists of individuals ororganizations, or both, with the desire andability to buy a specific product orservice.

To maximize sales and profits, a companyhas the option of serving entirely or just aportion of its chosen market.

Within markets are segments with commonneed and which will respond similarly to amarketing action.


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The Construction Market and Its Segment

THE CONSTRUCTIONMARKET

ResidentialSegment

IndustrialSegment

GovernmentSegment

actualconstructionsub-segment

actualconstructionsub-segment

constructionmaterials

sub-segment

constructionmaterials

sub-segment

actual

constructionsub-segment

actual

constructionsub-segment

An analysis of the various segments of the


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An analysis of the various segments of thechosen market will help the company make adecision on whether to serve all or some of

the segments. The segment or segmentschosen 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 productor service needs.

2. Determine the profit potentials of eachsegment.

3. Make a decision on which segment or

segments will be served by the company.


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Factors Used in Selecting Target Market

A target market must have the abilityto satisfy the profit objectives of thecompany.

In selecting a target market, the

following factors must be taken intoconsideration:

1. The size of the market, and

2. The numbers of the competitorsserving the market.


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Developing a Marketing Mix

After a target market have beenidentified, a marketing mix must becreated and maintained. The marketingmix consists of fou variables:

1. product

2. price

3. promotion4. place


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Given a marketing environment, theengineer 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 activitymade a little more aggressive, or awider distribution area may be

covered. Any of all the foregoing maybe undertaken as conditions warrant.


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Total Demand and Net Demand as a Guidefor 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 linesCompany C 10,000 lines

Total Supply 90,000 lines

NET UNSATISFIED DEMAND 60,000 lines

The Company The Marketing Mix


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The Company, The Marketing Mixand Target Market

ProductPricePromotionPlace

THETARGETMARKET

Othermarkets

Othermarkets

Othermarkets

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Managing the Marketing Function

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