managing the marketing function
TRANSCRIPT
-
8/2/2019 Managing the Marketing Function
1/35
MANAGINGTHE MARKETING
FUNCTION
-
8/2/2019 Managing the Marketing Function
2/35
CONTENTS:
What is the Marketing Concept? The Engineer and the Four Ps 0f
Marketing
The Product The Price
The Place
The Promotion Strategic Marketing for Engineers Selecting a Target Market
Developing a Marketing Mix
-
8/2/2019 Managing the Marketing Function
3/35
Engineering managers are engaged in theproduction of tangible or intangible goods.
Some of these engineer managers aredirectly responsible for marketing thecompanys 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 beconvincing others to patronize his outputs.
-
8/2/2019 Managing the Marketing Function
4/35
WHAT IS THE
MARKETINGCONCEPT?
-
8/2/2019 Managing the Marketing Function
5/35
Marketing is a group of activitiesdesigned 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 ofcoordinated activities
When clients are satisfied with what the
company offers, they continually providebusiness.
-
8/2/2019 Managing the Marketing Function
6/35
THE ENGINEER AND
THE FOUR PS OFMARKETING
-
8/2/2019 Managing the Marketing Function
7/35
The engineering organization will be
able to meet the requirements of its clients(or customers) depending on how it usesfour Ps of marketing which are follows:
1. the product (or service)2. the price
3. the place, and
4. the promotion.
-
8/2/2019 Managing the Marketing Function
8/35
The Product
In the marketing sense, the termproduct includes the tangible (orintangible) item and its capacity to satisfyits specific need.
The services provided by the engineermanager will be evaluated by the client onthe basis whether or not his or her exactneeds are met.
When a competitor comes into the pictureabd sells the same type of service, thepressure to improve the quality of
services sold will felt.
-
8/2/2019 Managing the Marketing Function
9/35
When the improvement is not possible,extras or bonuses are given to clients.
An example is the construction companythat provides free estimates onwhatever inquiries on construction are
received.
-
8/2/2019 Managing the Marketing Function
10/35
The Price
Price refers to the money or other
considerations exchanged for thepurchase or use of the product, idea, orservice.
Some companies use price as acompetitive tool or as means to convincethe customer to buy.
When products are similar in quality orother characteristics, price will be strongfactor on whether or not a sale will bemade .
-
8/2/2019 Managing the Marketing Function
11/35
The Engineering Manager and theFour Ps of Marketing
OBJECTIVES VEHICLE RESULT
The MarketingObjectives
of theEngineerManager
ProductPrice
PlacePromotion
Successor
Failure
-
8/2/2019 Managing the Marketing Function
12/35
When a type of service becomesstandardized, price can be strong
competitive tool. When a constructionfirm, for instance, charges a flat 10percent service fee for all of its
construction services, a competitor maycharge a lower rate. Such action, however,will be subject to whether or not theindustry will allow such practice.
-
8/2/2019 Managing the Marketing Function
13/35
The Place
If every factor is equal, customers would
prefer to buy from firms easily accessibleto them. If time is of the essence, thenearest firm will be patronized.
It is very important for companies tolocate in places where they can be easilyreached by their customers. Not everyplace is the right location for any company.
When a company cannot be near by thecustomers, it uses other means toeliminate or minimize the effects of the
problem.
-
8/2/2019 Managing the Marketing Function
14/35
Some of these problems are:
1. hiring sales agent to cover specificareas;
2. selling to dealers in particular areas;
3. establishing branches where customersare located;
4. establishing franchises in selected
areas.
-
8/2/2019 Managing the Marketing Function
15/35
Manufacturing companies can choose oradapt all of the above-mentioned options.
Service companies like construction firmsadapt the modified versions.
An example is the engineer manager of a
construction firm who gives commissionsto whoever could negotiate a constructioncontract for the firm.
-
8/2/2019 Managing the Marketing Function
16/35
The Promotion When engineer managers have products or
services to sell, they will have to convincebuyers to buy from them. Before the buyer makes the purchasing
decision, however, he must first beinformed, persuaded and influenced.
The activity referred to, in this case aspromotion.
McCarthy and Perreault define promotionas communicating information betweenseller and potential buyer to influence
attitude and behavior.
-
8/2/2019 Managing the Marketing Function
17/35
There are promotional tools available andthe engineer manager must be familiar with
them if he wants to use them effectively.These tools are as follows:
1. advertising2. publicity
3. personal selling
4. sales promotion
-
8/2/2019 Managing the Marketing Function
18/35
Advertising Nylen defines advertising as a paid
message that appears in the mass mediafor the purpose of informing or persuadingpeople about particular products, services,beliefs, or action.
The mass media referred to includetelevision, radio, magazines, ananewspapers.
If the engineering manager wants to reacha large number of people, he may use anyof the mass media depending on thespecific needs and his budget.
-
8/2/2019 Managing the Marketing Function
19/35
An Example of an Advertising Message
ALECTO GENERAL TECHNOLOGY
-
8/2/2019 Managing the Marketing Function
20/35
ALECTO GENERAL TECHNOLOGYAND
DEVELOPMENT CORPORATION
ENGINEERS DESIGNERS CONTRACTORS SUPPLIER
Computer FacilitiesDesign and Installation
Local Area Networking-CablingData and Communication and
Telecommunication Works
Electrical Wiring
Mechanical and Civil Works
Fiber Optic Cabling Installation and Termination
Supplier of UTP Fiber Optic and Coaxial Cable
1495 D. Oliman St., Makati CityTels. 890-2571, 890-2492
890-3604, 890-3607
Fax No. 890-2978
-
8/2/2019 Managing the Marketing Function
21/35
Publicity
The promotional tool that publishes news
or information about a product, service oridea on behalf of a sponsor but is not paidfor by the sponsor is so called publicity.
The mass media is also the means used forpublicity. 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.
-
8/2/2019 Managing the Marketing Function
22/35
An Example of a Publicity Release
NOKIA PRESENTS THE FIRST PHONE DESIGNED
-
8/2/2019 Managing the Marketing Function
23/35
NOKIA PRESENTS THE FIRST PHONE DESIGNED
FOR LOCAL NEEDS
Manila, July 1, 1997 Nokia Mobile Phones, the largestEuropean and worlds largest manufacturer of mobile phones and
a world leader in digital technology, has introduced to thePhilippines the Nokia 3810 Big Face, the first mobile phonedesigned specifically for the needs of the Asia-Pacific cellularmarket.
The Nokia 3810 is a product of extensive regionalresearch and feedback. Tagged as Nokia Big Face, the 3810
has a larger screen contained in a small and sleek Europeanstyled body, making it easier to read messages. With its uniquegraphic display, the Nokia 3810 displays large or small text, it iseasier to find what you are looking for.
Moreover, Nokia 3810 provides a comprehensive range offeatures like call management, memory functions, short
message services, security code/control and has the mostcomplete range of accessories.
Nokia Mobile Phones is a part of the Nokia Group, a globaltelecommunications company headquarters in Helsinki, Finland.Nokia employs nearly 34,000 people in 45 countries and has net
sales of US$8.5 billion in 1996. Nokia can be visited on the
world wide web http:/www.nokia.com.
-
8/2/2019 Managing the Marketing Function
24/35
Personal Selling A more aggressive means of promoting the
sales of a product or service is calledpersonal selling. It refers to the oral presentation in a
conversation with one or more prospective
purchasers for the purpose of making thesale. Personal selling may be useful to the
marketing efforts of the engineer manager.
If, for instance, he is the general managerof a firm manufacturing spare parts, he mayassign some employees to personally seek outspare parts dealers and big trucking
companies to carry their product lines.
-
8/2/2019 Managing the Marketing Function
25/35
Sales Promotion
Any paid attempt to communicate with the
customers other than advertising,publicity, and personal selling, may beconsidered as promotion.
This includes displays, contests,sweepstakes, coupons, trading stamps,prizes, samples, demonstration, referral
gifts etc. Contest and sweepstakes are very popular
sales promotion tools.
-
8/2/2019 Managing the Marketing Function
26/35
STRATEGIC
MARKETINGFOR ENGINEERS
C i i l di h d b
-
8/2/2019 Managing the Marketing Function
27/35
Companies, including those managed byengineer managers, must serve marketsthat are best fitted to their capabilities.To achieve this end, a very importantactivity called strategic marketing isundertaken.
Under thus set-up, the following stepsare made:
1. Selecting a target market2. Developing a marketing mix.
-
8/2/2019 Managing the Marketing Function
28/35
Selecting a Target Market
A market consists of individuals ororganizations, or both, with the desire andability to buy a specific product orservice.
To maximize sales and profits, a companyhas the option of serving entirely or just aportion of its chosen market.
Within markets are segments with commonneed and which will respond similarly to amarketing action.
-
8/2/2019 Managing the Marketing Function
29/35
The Construction Market and Its Segment
THE CONSTRUCTIONMARKET
ResidentialSegment
IndustrialSegment
GovernmentSegment
actualconstructionsub-segment
actualconstructionsub-segment
constructionmaterials
sub-segment
constructionmaterials
sub-segment
actual
constructionsub-segment
actual
constructionsub-segment
An analysis of the various segments of the
-
8/2/2019 Managing the Marketing Function
30/35
An analysis of the various segments of thechosen market will help the company make adecision on whether to serve all or some of
the segments. The segment or segmentschosen 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 productor service needs.
2. Determine the profit potentials of eachsegment.
3. Make a decision on which segment or
segments will be served by the company.
-
8/2/2019 Managing the Marketing Function
31/35
Factors Used in Selecting Target Market
A target market must have the abilityto satisfy the profit objectives of thecompany.
In selecting a target market, the
following factors must be taken intoconsideration:
1. The size of the market, and
2. The numbers of the competitorsserving the market.
-
8/2/2019 Managing the Marketing Function
32/35
Developing a Marketing Mix
After a target market have beenidentified, a marketing mix must becreated and maintained. The marketingmix consists of fou variables:
1. product
2. price
3. promotion4. place
-
8/2/2019 Managing the Marketing Function
33/35
Given a marketing environment, theengineer manager can manipulate any or all
variables to achieve the companys goals.The quality of the product may be
enhanced, or the selling price made a
little lower, or the promotion activitymade a little more aggressive, or awider distribution area may be
covered. Any of all the foregoing maybe undertaken as conditions warrant.
-
8/2/2019 Managing the Marketing Function
34/35
Total Demand and Net Demand as a Guidefor Determining Target Market
Telephone Lines in Cabanatuan City
Demand and Supply Situation
1997
Total Demand 150,000 lines
Supply
Company A 50,000 lines
Company B 30,000 linesCompany C 10,000 lines
Total Supply 90,000 lines
NET UNSATISFIED DEMAND 60,000 lines
The Company The Marketing Mix
-
8/2/2019 Managing the Marketing Function
35/35
The Company, The Marketing Mixand Target Market
ProductPricePromotionPlace
THETARGETMARKET
Othermarkets
Othermarkets
Othermarkets