CHAPTER 11

MANAGING THE

FUNCTION
 W H AT I S T H E M A R K E T I N G C O N C E P T ?
MARKETING
MARKETING CONCEPT

A group of States that the

engineer must try to
activities
satisfy the needs of
designed to his clients by means

facilitate and of a set of coordinated

activities.
expedite the
selling of goods
and services.
THE ENGINEER AND THE FOUR P’S
OF MARKETING
THE PRODUCT
In the marketing
sense, the term
“product”
includes the
tangible (or
intangible) item
and its capacity to
satisfy a specific
need.
 THE PRICE
Price refers “the
money or other
considerations
exchanged for the
purchase or use of
the product, idea, or
service.”
 THE PLACE

Location
One important
element to consider
in any business
Not every place is the
right location for any
company
THE PLACE
customers would
 If every factory is prefer to buy from
equal firms easily
accessible to them

 If time is of the the nearest firm will

be patronized
essence
 1. Hiring sales
agents to cover
specific areas.

WHEN A
4. Establishing C O M PA N Y 2. Selling
franchises in CANNOT BE to dealers
selected areas. NEAR THE in
CUSTOMERS particular
areas.

3. Establishing
branches where
customers are
located
Manufacturing companies can choose or
adapt all of the above-mentioned options.

Service companies like

construction firms adapt the
modified versions
TIPS

Research different locations

Find out about other businesses in the

area

Research your competitors

Contact local councils

Consider the current and future needs of

your business
  

THE PROMOTION

The activity
referred to, in this
case
When engineer Before the buyer
managers have makes the
products or purchasing
services to sell, decision,
they will have to however, he
convince buyers must first be
to buy from informed,
them. persuaded, and
influenced.
  
THE PROMOTION

“communicating information
between seller and potential
buyer to influence attitudes
and behavior.” McCarthy and
Perreault

 The publicization of a product,

organization, or venture so as to
increase sales or public awareness.
 1. Advertising

PROMOTI 2. Publicity

ONAL 3. Personal
TOOLS selling

4. Sales
promotion
 1. Advertising

PROMOTI Nyle defines advertising as “a

2. Publicity
paid message that appears in
ONAL 3. Personal
the mass media for the
TOOLS selling
purpose of informing or
persuading
4. Salespeople about
promotion
particular products, services,
beliefs, or action.”
 1. Advertising

PROMOTI 2. Publicity

ONAL 3. Personal
TOOLS The promotional tool that publishes
selling
news or information about a
4. Sales
product, service, or idea on behalf
promotion
of a sponsor but is not paid for by
the sponsor is called publicity.
 A more aggressive means of
promoting the sales of a
1. Advertising
product or service.
PROMOTI 2. Publicity

ONAL 3. Personal
TOOLS selling
“oral4.
presentation
Sales in a
conversation with one or more
promotion
prospective purchasers for the
purpose of making a sale”.
 Any
1. paid attempt to
Advertising
communicate with the customers
other than advertising, publicity,
PROMOTI 2. Publicity
and personal selling, may be
considered sales promotion.
ONAL 3. Personal
TOOLS selling displays

4. Sales contest
etc. promotion
sweeptake prizes
coupons s samples
referrals trading demonstrati
gifts stamps on
STRATEGIC MARKETING
FOR ENGINEERS
 Selecting a Target Market
 Developing a Marketing Mix
STRATEGIC
• carefully designed or planned to
serve a particular purpose or
advantage

MARKETING
• the action or business of promoting
and selling products or services,
including MARKET RESEARCH and
advertising
Strategic Marketing
• the way a firm effectively differentiates
itself from its competitors by capitalizing
on its strengths (both current and
potential) to provide consistently better
value to customers than its competitors.

• Organizations use strategic marketing to

create a plan to better reach and satisfy
customers while increasing profitability
and productivity.
 S E L E C T I N G A TA R G E T M A R K E T

Market
• Individuals or organizations, or
both, with the desire and ability to
buy a specific product or service.
 STEPS
1. Divide the total market into groups of people who
have relatively similar product or service needs.

2. Determine the profit potential of each segment

3. Make a decision on which segment or segments

will be served by the company.
FACTORS USED IN SELECTING
A TARGET MARKET

 Size of the Market

Number of Competitors Serving the Market

DEVELOPING A MARKETING MIX

PRODUCT
PRICE
PROMOTION

PLACE