Republic of the Philippines

EULOGIO “AMANG” RODRIGUEZ

INSTITUTE OF SCIENCE AND TECHNOLOGY
Nagtahan, Sampaloc Manila

College of Engineering

Engineering Management
“MANAGING THE MARKETING FUNCTION”

Submitted To:
ENGR. JOCELYN C. TUBANG
 Introduction:

Management is the processes of planning, organizing directing,

motivating, coordinating and controlling of various activities of a firm.
Marketing is the process of satisfying the needs and wants of the consumers.
Management of marketing activities is
Marketing Management.

Management Guru Philip Kotler defines

marketing as “Marketing Management is
the analysis, planning, implementation
and control of programmes designed to
bring about the desired exchanges with
target audiences for the purpose of
personal and mutual gain. It relies
heavily on adoption and coordination of
the product, price, promotion and place
for achieving response”:

In other words, a business

discipline, which is focused on the
practical application of marketing
techniques and the management of a firm’s
marketing resources and activities, is
Marketing Management.
Marketing Management focuses upon the psychological and physical
factors of Marketing. The Marketing managers are responsible for influencing
the level, timing, and composition of customer demand accepted definition of
the term. While the psychological factors focus upon discovering the needs
and wants of the consumer and the changing patterns of buying behavior,
habit etc. the physical factors focus upon fulfilling those needs and
demands buy better product design, channel of distribution and other
functions.
In summary, Marketing in action is marketing Management.
Marketing Management has the responsibility of to perform many
functions in the field of marketing such as planning, organizing, directing,
motivating, coordinating and controlling. All these function aim to achieve
the marketing goals.
Let’s face it. Of the four main functional areas of a business,
marketing has to be the most important! Marketing is at the heart of a
business. Remember the definition of marketing:
“The process of identifying, anticipating (predicting) and satisfying
customer needs profitably”
 Almost every activity that a business undertakes can be linked back to
this definition.
Ultimately, almost every functional activity or objective can be linked back
to marketing.

Objectives:
By the end of this report, students should be able to:

1. Explain how to Manage the Marketing Function.

2. Describe the Concept of Marketing.
3. Define and explain the 4P’s of Marketing.
4. Explain the Strategic Marketing for Engineers by Selecting a Target Market and
Developing a Marketing Mix.

DURATION AND METHODOLOGIES

Title Contents Reporter Time

  Introduction
MANAGING  Managing the  Jabiguero,
THE Marketing Gail Luz D.
MARKETING Function (Leader)
FUNCTION  Marketing & 15 mins.
Concept  Magnaye, Jess
 The Engineer Marwin
and the Four (Assistant Leader)
P's of
Marketing

Members
The Galinggana
Engineer  The Product Guerra
and the  The Price Gonzales
20 mins
Four P’s  The Place
of  The Promotion
Marketing

Strategic Members
Marketing  Selecting a Joaquin
for Target Market Lagura 20 mins
Engineers  Developing a Magpusao
Marketing Mix Manalad

Mercado
QUIZ Questionnaires 5 mins.

Topic or Content Outline:

MANAGING THE MARKETING FUNCTION

What is the Marketing Concept?

The Engineer and the Four P's of Marketing
 The Product
 The Price
 The Place
 The Promotion
 Strategic Marketing for Engineers
 Selecting a Target Market
 Developing a Marketing Mix

MANAGING THE MARKETING FUNCTION

 Engineer managers are engaged in the production of tangible or intangible
goods. Some of these engineer managers are directly responsible for marketing
the company's products 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 his 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

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. When clients are
satisfied with what the company offers, they continually provide business
related to the marketing discipline.

THE ENGINEER AND THE FOUR P’S OF MARKETING

The engineering organization will be able to meet the
requirements of its clients (or customers) depending
 on how it uses the four P's of marketing which are as follows:
1. the product (or service)
2. the price
3. the place, and
4. the promotion

The Product
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 clients. An example is the
construction company that provides “free estimates" on whatever inquiries on
construction are received.

The Price
Price refers to "the money or other
considerations exchanged for the purchase
or use of the product, idea, or service."
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.

Figure 11.1 The Engineer Manager and the Four P's of Marketing.

The Marketing
Objectives Product Success
of the Price or
Engineer Place Failure
Manager Promotion
 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.

The Place
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 in 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.

Manufacturing companies can choose or adapt all of the above-mentioned

options. Service companies like construction firms adapt the modified versions.
An example is the engineer manager of a construction firm who gives commissions
to whoever could negotiate a construction contract for the firm.
 The Promotion

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,

McCarthy and Perreault define promotion as "communicating information

between seller and potential buyer to influence attitudes and behavior.”

There 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 “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
television, radio, magazines, and newspapers. If
the engineering 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. Each of the public advertising
carriers, i.e., radio, television, magazines,
and newspapers, has their own specific
audiences and careful analysis must be made if the engineering manager
wants to pick the right one.
An example of an advertising message is shown in Figure 11.2

Publicity.
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 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. His
message may be presented as a news item, helpful
information, or an announcement.
An example of a publicity release is shown in
Figure 11.3

Personal Selling.
A more aggressive means of promoting the
soles 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.
Personal selling may be useful to the marketing
efforts of the engineer manager. If, for
instance, he is the general manager of firm
manufacturing spare parts, he may assign some
employees to personally seek out spare parts
dealers and b i g t r u c k i n g companies
to carry their product lines.

Figure 11.2 An Example of an Advertising Message

 ALECTO GENERAL TECHNOLOGY AND
DEVELOPMENT CORPORATION

ENGINEERS • DESIGNERS • CONTRACTOR • SUPPLIER

Computer Facilities
Design and Installation

Local Area Network·Cabllng

Data 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 0. Oilman St., Makati City

Tels. 890-2571, 890·2492
890-3604, 890-3607
Fax No. 890-2978

Figure 11.3 An Example of a Publicity Release.

 NOKIA PRESENTS THE FIRST PHONE DESIGNED FOR LOCAL NEEDS
Manila, July 1, 1997 - Nokia Mobile Phones, the largest European and
world's second largest manufacturer of mobile phones and a world leader In
digital technology, has introduced to the Philippines the Nokia 3810 “Big Face”,
the first mobile phone designed specifically for the needs of the Asia-Pacific
cellular market.
"This new design which was Inspired by a regional research Is another step
in our aim to strengthen our market position', Martin Fernandez, Nokia Mobile
Phones Philippine Country Manager said.
The Nokia 3810 is a product of extensive regional research and feedback.
According to the research, there is a demand for a design that would easily
accommodate longer and more detailed messages Asians, including Filipinos, are
accustomed to. Tagged as Nokia 'Big Face", the 3810 has a larger screen
contained in a small and sleek European styled body, making it easier to read
messages. With its unique full graphic display, the Nokia 3810 displays large or
small text, depending on the length of the message. Combined with Nokia's state
of the art menu systems, it is easier to find what you are looking for.
Moreover, Nokia 381o provides a comprehensive range of features like call
management, memory functions, short message services, security/code control,
optional controls, and data transmission and has the most complete range of
accessories.
Nokia Mobile Phones is a part of the Nokia Group, a global
telecommunications company headquartered 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 worldwide web http:/www nokia, com.

Sales Promotion.
 Any paid attempt to communicate with
the customers other than adv ertisin g ,
publicity, and personal selling, may b e
considered sales promotion. This
includes displays, contests,
sweepstakes, coupons, trading stamps,
prizes, samples, demonstrations,
referral g i f t s , etc.
Contests and sw eeps takes are very
p o pu la r sales promotion tools. An
example is shown in Figure 11.4.

STRATEGIC M A R K E T I N G F O R ENGINEERS

Companies, including those m a n a g e d by engineer

managers, must serve markets that are best
fitted to their capabilities. To achieve this
end, a very important activity called
s t r a t e g i c marketing is undertaken.
Under this set-up, the following steps are
made :
1. selecting a target market
2. developing a marketing mix

Selecting a Target Market

A market consists of individuals or
organizations, or both, with t h e 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 a n d w h i c h w i l l
respond similarly to a marketing action.
Figure 1 1 . 5 shows an example of the various
segments of a given m a r k e t .

An Example
Figure 11.4 of a Company
Using Sweepstake as a Sales Promotion Tool.

GET A BAYANTEL PHONE, CALL LONG DISTANCE, PAY YOUR MONTHLY BILLS AND GET A CHANCE TO
DRIVE AWAY A WINNER!

BAYANTEL
BMW
5 to drive
THERE HAS NEVER BEEN A TELEPHONE PROMO BIGGER THAN THIS!
NOW, BayanTel, the phone company that's helping you communicates not tomorrow. but
today, is giving away not one, not two, not even three, but FIVE, brand-new BMW 3
Series model 316 for its telephone subscribers.
IT’S so EASYTO GET A CHANCE TO WIN! This promo Is open to BayanTel TELEPHONE
SUBSCRIBERS In designated BayanTel franchise areas (see coverage below) only.
ONE: Get a BayanTel phone and pay your first monthly charges right away
Two: Use your BayanTel phone to call anywhere. Better if International and
domestic long distance. Every Php200 worth of paid charges (over and above the basic
installation charge and first month advanced service) entitles you to one raffle
ticket.
THREE: Pay your monthly bills promptly so you can earn more raffle tickets right
away.
Get a BayanTel phone now. Get a BMW to drive soon. Just keep on using that BayanTel
phone t o call anywhere- more raffle tickets for long distance!
PROMO ENDS DECEMBER 31, 1997

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 b e c o m e the target market.
In selecting a target m a r k e t , t h e following steps are necessary:
1. Divide the total market into groups of people who have relatively
s i m i l a r p r o d u c t or service needs.
2. Determine the profit potentials o f each segment.
3. Make a decision on which segment or segments will be served b y the
company.
 As shown in Figure 1 1 . 5 , a company may choose any or all of the
residential, industrial, and government segments. This decision will
depend, however, on the profit potentials of each segment and the capability
o f the firm.
A smaller company may find it most p r o f i t a b l e to supply o n l y the
construction material n e e d s o f the residential segment. A bigger
company, h o w e v e r , may find it more profitable to perform actual
c o n s t r u c t i o n in addition to selling c o n s t r u c t i o n materials.
Factors Used in Selecting a Target Market. A target m a r k e t must have the ability
to satisfy the profit objectives of the company. In selecting a target market,
the following factors must be taken into c o n s i d e r a t i o n :
1. the size of the market, and
2. the number of competitors serving the market.
The total demand for the product or service in a given area m u s t b e
determined first if the c o m p a n y w a n t s t o serve that particular
market. If there are existing businesses serving t h e market, the net
demand must b e considered. Figure 11.6 illustrate an e x a m p l e of the
relationship between d e m a n d a n d supply o f a particular product. The
figures presented i n d i c a t e t h a t t h e r e is still

Figure 11.5 The Construction Market and its Segments.

CONSTRUCTION
MARKET

Industrial
Segment Segment
 Actual Actual
Construction Construction
Sub-segment Sub-segment

Construction Construction
Materials Materials
Sub-segment Sub-segment

Actual Construction
Construction Materials
Sub-segment Sub-segment

room for another company in the market for telephone lines in

Cabanatuan City.

Developing a Marketing Mix

 After the target market has been identified, a marketing mix must
b e created a n d 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 man· ager can manipulate

any or all variables to achieve the company's goals. As such, the quality
of the product 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 a s conditions warrant.
As shown in Figure 11.7, all marketing activities are focused on the
target market.

Figure 11.6 Total Demand and Net Demand as a Guide for

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
Company C 10,000

Total Supply 90,000 lines

NET UNSATISFIED DEMAND 60,000 lines

Fig. 11.7 The Company, The Marketing Mix and the Target Market.

THE COMPANY

Product
Price
Promotion
Place

Other
markets

THE
TARGET
MARKET

Other
markets Other
markets

SUMMARY

To survive, companies must continuously generate income. To be able

to do so, they must be able to sell enough quantity of their products or
services. Engineering firms are no exception.
 The proper management of the marketing function helps the engineer manager
convince customers to patronize the firm. Specifically, the engineer manager must
know how to use effectively the four P's of marketing which are the product, the
price, the place, and the promotion.

An activity called strategic marketing is designed to make sure that the

marketing objectives of the firm are achieved. Strategic marketing calls for
selecting a target market and developing an appropriate marketing mix.

The marketing mix consists of the appropriate levels of product quality,

price, promotion, and place.

QUESTIONS FOR REVIEW AND DISCUSSION

1. How may the marketing concept be explained? Is it applicable to

engineering firms?

2. What is meant by the term "product"?

3. How may the engineer manager meet the threat of a competitor’s

product?

4. Why is price said to be a strong competitive tool?

5. What are some of the possible measures to make products easily

available to customers?

6. How may the engineer manager convince the buyer or client to

patronize the firm?

7. What is advertising? What are the types of advertising media?

8. May the engineer manager use publicity in promoting his firm? Cite
an example.

9. In selecting a target market, what must the engineer manager do?

10. What factors must be used in selecting a target market?

SUGGESTED ITEM FOR RESEARCH

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.
Case 11. BUGTAG CHEMICAL CORPORATION: Help

Samuel Bugarin and Antonio Tagorda were classmates at the Chemical

Engineering Department of De la Salle University. After passing the board
examinations in 1981, Engineer Bugarin applied for a job in a chemical
manufacturing company. He first worked as an assistant in the quality control
unit. Later, he became chief of the unit. He handled various jobs in the
production department. Because of his good performance, he was promoted to
production manager in 1993.

Engineer Tagorda got a job in 1982 as production planner of Reliance

Chemical Company. In 1990, he was assigned as assistant production manager. When
the company's marketing manager resigned in 1991, he was transferred to the
marketing department and was named as the new marketing manager. His main
function was to market the company's products consisting of synthetic resins,
aluminum paste, adhesives, plasticizers, calcium sulfate, etc. When he assumed
his post as marketing manager, the company is already serving group of loyal
customers. The increasing requirements of these customers also meant
additional orders for the company's products. The company’s sales increased even
if the number of its customers did not.

In a class reunion held in April 1997, Samuel and Antonio met and they
conversed for more than three hours. Samuel mentioned that he had started
organizing his own chemical manufacturing firm and he wanted Antonio to join him.
Antonio agreed and in a subsequent meeting decided to divide the work between the
two of them. Samuel was to take care of production end Antonio would handle
marketing. They decided to invite an experienced finance officer and a high
school classmate, Edgardo Abuan. He became the company's finance manager.

The company was registered as a stock corporation and the capital

contribution of the stockholders were as follows:

Name of the Stockholder Amount of Capital Contribution

1. Samuel Bugarin ₱30,000,000
2. Antonio Tagorda 15,000,000
3. Edgardo Abuan 3,000,000
4. Jesus Ualat 1,000,000
5. Rosario Mariano 1,000,000
6. Ausberto Taguinod 1,000,000
7. Francisco Bundoc 1,000,000
8. Amparo Paragas 1,000,000
9. Andres Nicolas 1,000,000
Total ₱ 54,000,000

The three agreed to produce caustic soda liquid, hydrochloric acid, soda
ash, sodium sulphate, sodium trypolyphospate, and sulfuric acid. The construction
of the company's plant has already begun in Dasmariñas, Cavite. The company has
been named the Bugtag Chemical Corporation.

Samuel has already started organizing the production department by hiring a

production planner. Antonio is still considering what steps to take in
organizing his department. One of his problems is the lack of information
regarding the nature of the market the company must tap. Also, Antonio is aware
of the utmost importance of providing the production department with a demand
forecast for the company's products
 Acknowledgement
We would like to express our special gratitude to our Professor Engr. Jocelyn Tubang who gave
us the opportunity to do this meaningful report on the topic Managing the Marketing Function,
which will help us as a future Engineer. We are making this project not only for marks but also
to increase our knowledge for application. Special thanks to Mr. Roberto Medina as our source.

The following list includes people who helped to complete this report.
1. Pia Galinggana
2. Christine Mae Desiree Guerra
3. James Patrick Gonzales
4. Gail Luz D. Jabiguero (Leader)
5. Alexis Victorios Joacquin
6. Rixmon Lagura
7. Jerome Magpusao
8. Jess Marwin Magnaye (Asst. Leader)
9. Cristopher Manalad
10. John Russel Mercado

References:
1. Engineering Management by Roberto Medina
2. http://www.gktoday.in/meaning-functions-of-marketing-management/