Gozo, Nikko C.

Marquez, Sydh Roeth V.

Engineer managers are engaged in the production of tangible

or intangible goods. Some of these engineer managers are directly
responsible for marketing the companys produce or services. If he is
promoted as general manager, both the production and marketing
functions become his overall concern.
At whatever management level the engineer manager works,
he must be concerned with convincing others to patronize 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
continuously rely on him regarding the staff services he provides.

If the foregoing statements are true, the engineer manager

has a marketing problem. He needs to understand certain concepts
related to the marketing discipline.

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 engineering organization will be able to meet the

requirements of its clients (or customers) depending on how it uses
the four Ps of marketing which are as follows:
1.
2.
3.
4.

The product (or service)

The price
The place, and
The promotion

In the marketing sense, the term product includes the

tangible (or intangible) item and its capacity to satisfy a specific
need. When a customer buys a car, he is actually buying the
comfortable ride he anticipates to derive from the car. This is not to
mention the psychological benefits attached to the ownership of a
car.
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 a competitor comes into the picture
and sells the same type of service, the pressure to improve the
quality of services sold will be felt. When improvement is not
possible, extras or bonuses are given to the clients. An example
is the construction company that provides free estimates on
whatever inquiries on construction are received.

Price refers to the money or other considerations

exchanged for the purchases or use of the product, idea, or
services. Some companies use price as a competitive tool
or as a means to convince the customer to buy.
When products are similar in quality and other
characteristics, price will be a strong factor on whether or not
a sale will be made. This does not hold true, however, in the
selling of services and ideas. This is because of the
uniqueness of every service rendered or every idea
generated.
When a type of service becomes standardized, price
can be a strong competitive tool. When a construction firm,
for instance, charges a flat 10 percent service fee for all of its
construction services, a competitor may charge a lower rate.
Such action, however will be subject to whether or not the
industry will allow such practice.

If every factor is equal, customers would prefer to

buy from firms easily accessible to them. If time is of the
essence, the nearest firm will be patronized.
It is very important for companies to locate
places where they can be easily reached by their
customers. Not every place is the right location for any
company.

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

When engineer managers have products or services to sell,

they will have to convince buyers to buy from them. Before the
buyer makes the purchasing decision, however, he must first be
informed, persuaded, and influenced. The activity referred to, in this
case, is called promotion.

These are promotional tools available and the engineer

manager must be familiar with them if he wants to use them
effectively. These tools are as follows:
1. Advertising
2. Publicity
3. Personal selling
4. Sales promotion

 Advertising.

Nylen defines advertising as 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 television, radio, magazines, and
newspapers. If the engineer manager wants to reach a large
number of people, he may use any of the mass media depending on
his specific needs and his budget
Publicity.

The promotional tool that publishes news of information about a

product, services, or idea on behalf of a sponsor but is not paid for
by the sponsor is called publicity. The mass media is also the means
used for publicity. If the engineer manager knows how to use it,
publicity is a very useful promotional tool.

 Personal Selling.

A more aggressive means of promoting the sales of a

product or service is called personal selling. It refers to
the oral presentation in a conversation with one or more
prospective purchasers for the purpose of making a
sale.
Sales Promotion.

Any paid attempt to communicate with the customers

other than advertising, publicity, and personal selling,
may be considered sales promotion. This includes
displays, contests, sweepstakes, coupons, trading
stamps, prizes, samples, demonstrations, referral gifts,
etc.

Companies, including those managed by

engineer managers, must serve markets that are best
fitted to their capabilities. To achieve this end, a very
important activity called strategic marketing is
undertaken.
Under this set up, the following steps are
made:
1. Selecting a target market
2. Developing a marketing mix

A market consists of individuals or organizations,

or 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. Within markets are
segments with common needs and which will respond
similarly to a marketing action.
An analysis of the various segments of the
chosen market will help the company make a decision
on whether to serve all or some of the segments. The
segment or segments chosen become the target
market.

In selecting a target method, 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.

In selecting a target method, 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.

A smaller company may find it most profitable to

supply only the construction material needs of the
residential segment. A bigger company, however, may
find it more profitable to perform actual construction in
addition to selling construction materials.
Factors Used in Selecting a Target Market. A
target market must have the ability to satisfy the profit
objectives of the company. IN selecting a target market,
the following factors must be taken into consideration:
1. The size of the market, and
2. The number of competitors serving the market

After the target market has been identified, a marketing mix

must be created and maintained. The marketing mix consists of
four variables: the product, the price, the promotion, and the place
(or distribution).
Given a marketing environment, the engineer manager can
manipulate any or all variables to achieve the companys goals. As
such, the quality of the products may be enhanced, or the selling
price made a little lower, or the promotion activity made a little more
aggressive, or a wider distribution area may be covered. Any or all
of the foregoing may be undertaken as conditions warrant.