Managing the Marketing

Function

Engineer manager is always concerned with convincing others to

patronize his output.

-is a group of activities designated

to facilitate and expedite the selling
of goods and services

Marketing Concept
-states that the engineer must try to satisfy the
needs of his clients by means of coordinated
activities.

The Engineer and the Four

Ps of Marketing
1. Product (or services)
2. Price
3. Place
4. Promotion

Product (or services)

-The term product includes the
tangible (or intangible) item and its
capacity is to satisfy a specific need.

Price
-refers to the money or other
considerations exchanged for the
purchase or use of the product, idea
or services

Figure 1. THE ENGINEER MANAGER AND THE FOUR PS OF MARKETING

The
marketing
Objectives of
the Engineer
manager

Product
Price
Place
Promotion

Success
Or
Failure

Place
It is very important for companies
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 the customers, it

uses means to eliminate or minimize the effects
of the problem.
*Means:
1. Hiring sales agents to cover specific areas;
2. Selling to dealers in particular area
3. Establishing branches where customers are
located
4. Establishing franchises in selected areas.

Promotion
Convincing buyers to buy the product from
them. The buyer makes the purchasing decision,
however, they must be informed, persuaded, and
influenced.

Promotional tools:
1. Advertising
2. Publicity
3. Personal Selling
4. Sales Promotion

Advertising
a paid message
that appears in the mass
media for the purpose of
informing or persuading
people about particular
products.

Publicity
The promotional tool
that publishes about a
product, services, or idea on
behalf of a sponsor but is
not paid for by the sponsor.

Personal Selling
Oral presentation in a
conversation with one or
more perspective
purchasers for the purpose
of making sale

Sales Promotion
Any paid attempt to
communicate with the
customers other than
advertising, publicity, and
personal selling, may be
considered sales promotion

Strategic Marketing for

Engineers
1. Selecting a target market
2. Developing a market mix

Selecting a Target Market

1. Divide the total market into groups of people
who have relatively similar product or service
needs.
2. Determine the profit potentials of each
segment.
3. Make the decision on which the segment or
segments will be served by the company.

Figure 11.5 The construction Market and Its Segments

THE CONSTUCTION MARKET
Residential
Segment

Industrial
Segment
Actual
construction
sub-segment
Construction
materials subsegment

Actual
construction
sub-segment
Construction
materials
sub-segment
Actual
construction
sub-segment

Govenrment
Segment

Construction
materials subsegment

Factors used in Selecting a Target market

1. The size of the market
2. The number of competitors serving the
market

Figure 11.6 Total Demand and Net Demand as a Guide for Determining
Target Market

Telephone Lines in Cabanatuan City Demand and Supply Situation 1997

______________________________________________________
Total Demand
Supply
Company A
Company B
Company C
Total Supply
NET UNSATISFIED DEMAND

150,000 lines
50,000 lines
30,000
10,000
90,000 lines
60,000 lines

Developing a Marketing Mix

After the target market has been identified,
a market mix must be created and maintained.
The marketing mix consists of four variables: the
product, the price, the promotion, and the
place(or distribution).

Figure 11.7 The Company, The Marketing Mix and the Target Market

THE COMPANY
*Product
*Price
*Promotion
*Place

Other
markets
THE
TARGET
MARKET

Other
markets
Other
markets