Marketing Engineering

Marketing engineering is defined as "a systematic

approach to harness data and knowledge to drive effective
marketing decision making and implementation through a
technology-enabled and model-supported decision process“

Marketing Engineering is as the use of computer 

decision models for making marketing decisions. 
Marketing managers typically use "conceptual marketing",
that is they develop a mental model of the decision situation
based on past experience, intuition and reasoning. 
 Marketing Engineering
• Lilien define marketing engineering as "the systematic process of putting marketing
data and knowledge to practical use through the planning, design, and construction of
decision aids and marketing management support systems (MMSSs)".

• Driving factors - toward the development of marketing engineering are the use of
high-powered personal computers connected to LANs and WANs, the 
exponential growth in the volume of data, the reengineering of marketing functions.

• The effectiveness of the implementation of marketing engineering and MMSSs in the

firm depend on the decision situation characteristics(demand), the nature of the
MMSS (supply), match between supply and demand, design characteristics of the
MMSS, characteristics of implementation process.

• Wider adoption depend on difference between end-user systems and high-end

systems, user training and the growth of the Internet.
Market Resp onse Mo dels

Inputs: price, ad vertisin g, selling effort, pro duct d esign, market size, competitiv e en viron men t

Outpu ts : product perceptions, sales, profits

 PRODUCTION PLANNING

Production Planning : It is a technique of forecasting ahead every step in the long

process of production, taking them at right time and in the right degree and trying to
complete operations at the maximum efficiency.

Kimball – “The planning of industrial operations involves four considerations,

namely, what work shall be done, how the work shall be done and lastly, when the
work shall be done.”
Characteristics:
• Inputs like materials, men and machines are efficiently used

• Factors of production are integrated to use them economically

• Division of work is undertaken carefully so that every available

element is properly utilised

• Work is regulated from the first stage of procuring raw materials to

the stage of finished goods

• Questions like what, when and how to be manufactured are decided

Objectives:
• Determining sequence of operations for continuous production

• Planning plant capacity for future production programmes

• Issuing co-ordinated work schedules to concerned persons

• Maintaining sufficient inventories to support continuous flow of

production

• Evaluating performance of workshops

• Maintaining production schedules to ensure delivery at proper time

Areas of production planning:
• Preparation of production budget

• Devising manufacturing methods and sequence of operations

• Deciding type of machines and equipments

• Preparation of operation sheets and instruction cards

• Estimating men, machine and material requirements

• Undertaking time and motion studies

• Preparing master schedules

Need for PP:

Production planning and control is important for the following reasons

–
• For Increasing Production – Main purpose of production planning is
to arrange inputs. Production control programme minimises
idleness of men and machines. It thus helps in raising industrial
output.

• For co-ordinating plant activity -In planning production is carried

out in a number of processes and thus activities are synchronized
for smooth working.
ELEMENTS OF PRODUCTION PLANNING

1. Planning
2. Routing
3. Scheduling
4. Despatching
5. Follow-up and Expediting
6. Inspection
Planning is the first element of production planning and control. Planning is deciding in
advance what is to be done in future. An organisational set up is created to prepare plans
and policies. Various charts, manuals and production budgets are also prepared. Planning
provides a sound base for control. A separate department is set up for this work.

Routing is determining the exact path which will be followed in production. It is the
selection of the path from where each unit have to pass before reaching the final stage.
The stages from which goods are to pass are decided in this process.

Scheduling is the determining of time and date when each operation is to be commenced
or completed. The time and date of manufacturing each component is fixed in such a way
that assembling for final product is not delayed in any way.
Despatching refers to the process of actually ordering the work to be done. It involves
putting the plan into effect by issuing orders. It is concerned with starting the process
and operation on the basis of route sheets and schedule charts.

“Follow up or expediting is that branch of production control procedure which

regulates the progress of materials and part through the production process.” Follow
up Procedure – Progress may be assessed with the help of routine reports or
communication with operating departments. The follow up procedure is used for
expediting and checking the progress.
Planning

Inspection is the process of ensuring whether the products manufactured are of

requisite quality or not. Inspection is undertaken both of products and inputs. It is
carried on at various levels of production process so that pre-determined standards of
quality are achieved. Inspection ensures the maintenance of pre- determined quality of
products.