THE ENGINEER AND THE FOUR P‘S OF MARKETING
MANAGING THE MARKETING
FUNCTION
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 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 and 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 .
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.
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.
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:

Contest and sweepstakes are very popular sales 1. The size of the market, and
promotion tools.
2. The numbers of the competitors serving the market.

STRATEGIC MARKETING FOR ENGINEERS

Developing a Marketing Mix
Companies, including those managed by engineer
After a target market have been identified, a marketing
managers, must serve markets that are best fitted to their
mix must be created and maintained. The marketing mix
capabilities. To achieve this end, a very important activity
consists of fou variables:
called strategic marketing is undertaken.
1. product
Under thus set-up, the following steps are made:
2. price
1. Selecting a target market
3. promotion
2. Developing a marketing mix.
4. place

Given a marketing environment, the engineer manager

Selecting a Target Market
can manipulate any or all variables to achieve the
A market consists of individuals or organizations, or company„s goals.
both, with the desire and ability to buy a specific product
The quality of the product may be enhanced, or the
or service.
selling price made a little lower, or the promotion activity
To maximize sales and profits, a company has the option made a little more aggressive, or a wider distribution area
of serving entirely or just a portion of its chosen market. may be covered. Any of all the foregoing may be
undertaken as conditions warrant.
Within markets are segments with common need and
which will respond similarly to a marketing action.

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.