managing the management function

8/10/2019 Managing the Management Function

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Gozo, Nikko C.

Marquez, Sydh Roeth V.


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Engineer managers are engaged in the production of tangibleor intangible goods. Some of these engineer managers are directlyresponsible for marketing the companys produce or services. If he ispromoted 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. Ifhe is the general manager of a construction firm, he must convincepeople 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 conceptsrelated to the marketing discipline.


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Marketing is a group of activities designed tofacilitate and expedite the selling of goods and services.

The marketing concept states that the engineermust try to satisfy the needs of his clients by means of aset of coordinated activities. When clients are satisfiedwith what the company offers, they continually providebusiness.


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The engineering organization will be able to meet therequirements of its clients (or customers) depending on how it usesthe four Ps of marketing which are as follows:

1. The product (or service)

2. The price

3. The place, and

4. The promotion


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In the marketing sense, the term product includes thetangible (or intangible) item and its capacity to satisfy a specificneed. When a customer buys a car, he is actually buying thecomfortable ride he anticipates to derive from the car. This is not to

mention the psychological benefits attached to the ownership of acar.

The services provided by the engineer manager will beevaluated by the client on the basis of whether or not his or herexact needs are met. When a competitor comes into the pictureand sells the same type of service, the pressure to improve the

quality of services sold will be felt. When improvement is notpossible, extras or bonuses are given to the clients. An exampleis the construction company that provides free estimates onwhatever inquiries on construction are received.


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Price refers to the money or other considerationsexchanged for the purchases or use of the product, idea, orservices. Some companies use price as a competitive toolor as a means to convince the customer to buy.

When products are similar in quality and othercharacteristics, price will be a strong factor on whether or nota sale will be made. This does not hold true, however, in theselling of services and ideas. This is because of theuniqueness of every service rendered or every ideagenerated.

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 itsconstruction services, a competitor may charge a lower rate.Such action, however will be subject to whether or not theindustry will allow such practice.


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If every factor is equal, customers would prefer tobuy from firms easily accessible to them. If time is of theessence, the nearest firm will be patronized.

It is very important for companies to locateplaces where they can be easily reached by theircustomers. Not every place is the right location for anycompany.


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When a company cannot be near the customers, it usesother 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


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When engineer managers have products or services to sell,they will have to convince buyers to buy from them. Before thebuyer makes the purchasing decision, however, he must first beinformed, persuaded, and influenced. The activity referred to, in thiscase, is calledpromotion.

These are promotional tools available and the engineermanager must be familiar with them if he wants to use themeffectively. These tools are as follows:

1. Advertising

2. Publicity

3. Personal selling

4. Sales promotion


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Personal Selling.

A more aggressive means of promoting the sales of aproduct or service is called personal selling. It refers tothe oral presentation in a conversation with one or more

prospective purchasers for the purpose of making asale.

Sales Promotion.

Any paid attempt to communicate with the customers

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


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Companies, including those managed byengineer managers, must serve markets that are bestfitted to their capabilities. To achieve this end, a very

important activity called strategic marketing isundertaken.

Under this setup, the following steps aremade:

1. Selecting a target market

2. Developing a marketing mix


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A market consists of individuals or organizations,or both, with the desire and ability to buy a specificproduct or service. To maximize sales and profits, a

company has the option of serving entirely or just aportion of its chosen market. Within markets aresegments with common needs and which will respondsimilarly to a marketing action.

An analysis of the various segments of the

chosen market will help the company make a decisionon whether to serve all or some of the segments. Thesegment or segments chosen become the targetmarket.


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In selecting a target method, the following stepsare necessary:

1. Divide the total market into groups of people whohave relatively similar product or service needs.

2. Determine the profit potentials of each segment.

3. Make a decision on which segment or segments willbe served by the company.


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In selecting a target method, the following stepsare necessary:

1. Divide the total market into groups of people whohave relatively similar product or service needs.

2. Determine the profit potentials of each segment.

3. Make a decision on which segment or segments willbe served by the company.


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A smaller company may find it most profitable tosupply only the construction material needs of theresidential segment. A bigger company, however, mayfind it more profitable to perform actual construction in

addition to selling construction materials.

Factors Used in Selecting a Target Market.Atarget market must have the ability to satisfy the profitobjectives 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


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managing the management function

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