CHAPTER 11

MANAGING THE
MARKETING FUNCTION
 MANAGING THE MARKETING FUNCTION
• 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 PRODUCT OR SERVICES.
• AT WHATEVER MANAGEMENT LEVEL THE ENGINEER MANAGER WORKS, HE MUST
BE CONCERNED WITH CONVINCING OTHERS TO PATRONIZE HIS OUTPUTS.
• IF HE IS THE GENERAL MANAGER OF A CONSTRUCTION FIRM, HE MUST CONVINCE
PEOPLE WITH CONSTRUCTION NEEDS TO AVAIL OF THE SERVICES OF THE
COMPANY.
• IF HE IS THE STAFF OFFICER OF A TOP EXECUTIVE, HE MUST CONVINCE HIS BOSS TO
CONTINUOSLY RELY ON HIM REGARDING THE STAFF SERVICES HE PROVIDES.
 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
1. THE PRODUCT
• “PRODUCT” INCLUDES THE TANGIBLE (OR INTANGIBLE) ITEM
AND ITS CAPACITY TO SATISFY A SPECIFIC NEED.
• 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.
• WHEN IMPROVEMENT IS NOT POSSIBLE, “EXTRAS” OR
“BONUSES” ARE GIVEN TO CLIENTS.
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 OF MARKETING WHICH ARE
FOLLOWS:
1. THE PRODUCT (OR SERVICE)
2. THE PRICE
3. THE PLACE
4. THE PROMOTION
 THE ENGINEER AND THE FOUR P’S OF MARKETING

2. THE PRICE
• PRICE REFERS TO “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 AND OTHER CHARACTERISTICS, PRICE
WILL BE A STRONG ON FACTOR ON WHETHER OR NOT A SALE WILL BE MADE.
• WHEN A TYPE OF SERVICE BECOMES STANDARDIZED, PRICE CAN BE A STRONG
COMPETITIVE TOOL.
 THE ENGINEER AND THE FOUR P’S OF MARKETING
3. THE PLACE
• IF EVERY FACTOR IS EQUAL, CUSTOMERS WOULD PREFER TO BUY FROM FIRMS EASILY
ACCESSIBLE TO THEM.
• IT IS IMPORTANT FOR COMPANIES TO LOCATE IN PLACES WHERE THEY CAN BE EASILY
REACHED BY THEIR CUSTOMERS.
• MEANS TO ELIMINATE OR MINIMIZE THE EFFECTS OF THE PROBLEM:
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
 THE ENGINEER AND THE FOUR P’S OF MARKETING
4. THE PROMOTION

• PROMOTION IS COMMUNICATING INFORMATION BETWEEN SELLER AND

POTENTIAL BUYER TO INFLUENCE ATTITUDES AND BEHAVIOR.( MCCARTHY
AND PERREAULT)
• PROMOTIONAL TOOLS AVAILABLE AND THE ENGINEER MANAGER MUST BE
FAMILIAR WITH THEM IF HE WANT TO USE THEM EFFECTIVELY:
1. ADVERTISING
2. PUBLICITY
3. PERSONAL SELLING
4. SALES PROMOTION
1. ADVERTISING- PAID MESSAGE THAT APPEARS IN THE MASS MEDIA FOR THE PURPOSE OF
INFORMING OR PERSUADING PEOPLE ABOUT PARTICULAR PRODUCTS, SERVICES,
BELIEFS OR ACTION. (NYLEN)
2. 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.
3. PERSONAL SELLING-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
• STEPS FOR STRATEGIC MARKETING
1. SELECTING A TARGET MARKET
2. DEVELOPING A MARKETING MIX

• STEPS IN 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 A DECISION ON WHICH SEGMENT OR SEGMENTS WILL SERVED BY THE COMPANY

• FACTORS USED IN SELECTING A TARGET MARKET

1. THE SIZE OF THE MARKET
2. THE NUMBER OF COMPETITORS SERVING THE MARKET
THE CONSTRUCTION MARKET AND ITS SEGMENTS
THE COMPANY, THE MARKETING MIX AND THE TARGET
MARKET
 END
BY:
MICA PAULENE TIBAYAN
BS CPE/CE501