Managing The Marketing Function PDF

Managing The Marketing Function ENGR. MARY KAYE PAQUIBOT 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...

Managing The Marketing Function ENGR. MARY KAYE PAQUIBOT 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.  THE ENGINEER AND THE FOUR P'S OF Uses of Four (4) P’s: MARKETING 1. the product (or service) 2. the price 3. the place 4. the promotion.  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 Price Price refers to "the money or other considerations exchanged for the purchase or use of the product, idea, or service." When products are similar in quality and other characteristics, price will be a strong factor on whether or not a sale will be made. Figure 11.1 The Engineer Manager and the Four P's of Marketing  The Place It is very important for companies to locate in places where they can be easily reached by their customers. When a company cannot be near the customers, it uses other means to eliminate or minimize the effects of the problem. Some of these means are: 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 Promotion McCarthy and Perreault define promotion as "communicating information between seller and potential buyer to influence attitudes and behavior. Promotional tools available 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: 1. Television 2. Radio 3. Magazines 4. Newspapers  PUBLICITY Publicity is when 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 PERSONAL SELLING Personal Selling is a more aggressive means of promoting the sales of a product or service. It refers to the "oral presentation in a conversation with one or more prospective purchasers for the purpose of making a sale." SALES PROMOTION It is any paid attempt to communicate with the customers other than advertising, publicity, and personal selling. This includes: 1. Displays 2. Contests 3. Sweepstakes 4. Coupons 5. Trading stamps 6. Prizes 7. Samples 8. Demonstrations 9. Referral gifts  STRATEGIC MARKETING FOR To achieve Strategic Marketing ENGINEERS companies, including those managed by engineer managers, must serve markets that are best fitted to their capabilities. Under this set-up, the following steps are made: 1. selecting a target market 2. developing a marketing mix  Selecting a Target A market consists of individuals or organizations, or Market both, with the desire and ability to buy a specific product or service. To maximize sales and profits, a company has the option of serving entirely or just a portion of its chosen market. The segment or segments chosen become the target market. In selecting a target market, the following steps are necessary: 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 be served by the company.  Factors Used in SUMMARY: Selecting a Target A target market must have the ability to satisfy the profit objectives Market — Engineering activities need to be managed and of the company. engineers are sometimes placed in positions where The they have to factors following learn management must skills. be — Successful taken managers become possible only if into consideration: those having the ability and motivation are given 1. the size of the market the opportunity to manage. 2. the number of competitors serving the market  Developing a Marketing Mix After the target market has been identified, a marketing mix must be created and maintained. The marketing mix consists of four variables: 1. the product 2. the price 3. the promotion 4. the place (or distribution) Seatwork No. 1 Choose an engineering firm with an existing marketing unit. Draw the organization chart of the firm showing the marketing unit and its relationship with other units.