ENGINEERS IN
MARKETING AND
SERVICE
ACTIVITIES
RONNE JOSHUA AMBULO
JOHN PAULO TUMALA
JEFFERSON YACAPIN
QUENNIE PALLERMO
Managing Engineering and
Technology
Management
Functions
Plannin
g
Decision
Making
Organizi
ng
Leadin
g
Controllin
g
Managing
Technology
Researc
h
Desig
n
Productio
n
Qualit
y
Marketin
g
Project
Management
Personal
Technology
Time
Management
Ethic
s
Caree
r
Managing Technology
Research
Design
Planning Production
Managing Production
Marketing
Project Management
OUTLINE
MARKETING AND THE ENGINEER
Types of Marketing Relationships
Engineering Involvement in Marketing (Industrial Products)
After-Sales Service
Introducing New Technology into the Market
Engineers In Service Organizations
Importance of Service-Producing Industries
Characteristics of the Service Sector
MARKETING AND THE
ENGINEER
By DR. Henry Metzner
Associate Professor Emeritus of Engineering Management
University of Missouri-Rolla
MARKETING
is the interface between the firm and its
customers.
FIRM CUSTOMER
the exchange of money for the output
produced by the firm.
MARKETING = SELLING
TYPES OF MARKETING
RELATIONSHIPS
TYPES OF MARKETING
RELATIONSHIPS
1. Transaction-Based Relationships
2. More Sustained Relationships
3. Highly-Committed Relationships
TRANSACTIONBASED
RELATIONSHIPS
each purchase generally signals the end to the
relationship between buyer and seller, at least in
the short run.
often characterized by cash transactions.
MORE SUSTAINED
RELATIONSHIPS
the contact between the parties to a transaction
is more sustained.
HIGHLY COMMITTED
RELATIONSHIPS
customer-firm relationship is more involved than
simply the transfer of standard foods or services.
customer-supplier business involves a long term
commitment to the technical idiosyncrasies of
the supplier.
the commitment between parties is long term
and substantial.
ENGINEERING INVOLVEMENT
IN MARKETING
(INDUSTRIAL PRODUCTS)
MARKETING FUNCTIONS
CONSUMER PRODUCTS
INDUSTRIAL PRODUCTS
MARKETING FUNCTIONS
CONSUMER PRODUCTS
products/services bought by the household
Characteristics:
mass production to lower costs
INDUSTRIAL
consumptionPRODUCTS
as the major purpose of purchase
uniform or near-uniform requirements
purchase of small amounts
MARKETING FUNCTIONS
CONSUMER PRODUCTS
INDUSTRIAL PRODUCTS
items are ordered in large quantities and
delivered in a stream to match the production
process, rather than in batches
Type of Product
Description
Engineering Involvement
Installations
Large, durable custom
constructions
Selling and performance of design service;
cost estimation and construction supervision
Accessories
Shorter-lived capital goods
(equipment)
Sellers engineers design for general
customer
Raw Materials
Extractive and agricultural
products
Assessment of quality; determination of the
value of a particular lot of used machinery
Process Materials
Goods that change form in
production
Buyers engineers establish specifications
Component Parts
Catalog items that do not lose
identity in production
Suppliers engineers design for general
customer and introduce to users engineers
Fabricated Items
Custom-made items
Buyers engineers design and specify; seller
bids in manufacture
Maintenance,
repair, and
operating items
Consumed in process of
production or use
Repair parts and methods specified by
makers engineers; users have little
engineering involvement
Services
Involve only incidental product
use
For engineering services, engineers sell as
well as perform
Type of Product
Description
Engineering Involvement
Installations
Large, durable custom
constructions
Selling and performance of design service;
cost estimation and construction supervision
Accessories
Capital
Investments
Shorter-lived capital goods
(equipment)
Sellers engineers design for general
customer
Raw Materials
Extractive and agricultural
products
Assessment of quality; determination of the
value of a particular lot of used machinery
Process Materials
Goods that change form in
production
Buyers engineers establish specifications
Component Parts
Catalog items that do not lose
incorporated
in
identity
in production
Suppliers engineers design for general
customer and introduce to users engineers
Fabricated Items
Maintenance,
repair, and
operating items
Services
Consumed or
the process of
Custom-made items
producing a
product
Consumed in process of
production or use
A class
its own
Involve
onlyof
incidental
product
use
Buyers engineers design and specify; seller
bids in manufacture
Repair parts and methods specified by
makers engineers; users have little
engineering involvement
For engineering services, engineers sell as
well as perform
DID YOU KNOW?
In early 1990s, a corporate downsizing has led to the elimination of
many staff specialists, including middle managers.
Gradually, the modern organization became successful and is now focusing
on the core competencies critical to product success, and depending on
long-term relationships with trusted suppliers of both goods and services.
AFTER-SALES SERVICE
AFTER-SALES SERVICE
- client-related tasks after the completion of sales
transaction.
- part
of the selling organizations duty.
Installation
Warranty
Field service
Documentation
Training
Provisioning & Providing repair facilities
Providing retrofit, rebuild and overhaul
Supplying spares and supplies
INTRODUCING NEW
TECHNOLOGY INTO THE
MARKET
Technical Competence Knowledge of, and skill in the
exercise of, practices required for
successful accomplishment of a
business, job, or task.
Rapid Discovery
Development
and Commercialization of new
Technologies
Technical Salesperson
- Function as a teacher and
consultant
- Work with the design engineers
- Act as a necessary link between
buyer and seller to ensure
diffusion of innovation.
- Sensor of the market needs
E-Marketing
Is one of the most
effective ways to keep
in
touch
with
costumers.
It
is
generally cost-effective,
and if done properly
can help build brand
ENGINEERS IN
SERVICE
ORGANIZATIONS
Importance of Service-Producing
Industries
-Engineering employment in the service
industry makes up nearly 50 % of all
engineers employed.
Engineers in service:
Computer Application Division
Software system, network design and consulting skills
Government
Water purification, waste management, law
enforcement, transportation, national defense and
demographical statistics
College Educators and Researchers
Providing service to future engineers
Biomedical Engineers
Diagnostic and therapeutic devices, artificial organs,
Postindustrial Society
In
sociology,
the
postindustrial society is the stage of
society's development when
the service sector generates
more
wealth
than
the
manufacturing sector of the
economy.
According to the U.S Bureau Labor Statistics,
employment growth for the period 2004-2014 is
projected to be concentrated in the serviceproviding sector of the economy
Characteristic of a Service Sector
- intangible
- usually performed in real time
- can be seldom inventoried
- customized, personalized and labor
intensive
Toshs findings that emphasizes the
need to provide a quality of service
that creates a satisfied costumer:
1. The average service business today
losses 10% of its volume (annually) due
to poor inattentive service.
2. 96% of unhappy costumers never
complain, but 90% never return; each
one tells at least nine others, and 13%
3. Each happy costumer tells at least five
other, some of whom will become your
costumers.
4. The best opportunity to increase sales
and market share is through your present
costumer base, because its costs five
time as much to attract a new costumer
as it does to maintain an existing one.
5. There is almost a perfect correlation
between employees perception of an
organizations human resource policies and
practices and the costumers perception of
quality and service.
6. The best indication of an organizations
long-term
financial
success
is
the
costumers perception of the relative quality
of service.
ENGINEERS IN SERVICE
ORGANIZATIONS
SOME SPECIFIC SERVICE INDUSTRY
EXAMPLES
COMPUTER APPLICATIONS
-Rapid spread of computers and information technology create a need for
highly trained workers
1.5 M jobs in 1998 (including 114,000 self-employed)
Computer systems analysts 617,000
Computer Support specialists
429,000
Computer Engineers 299,000
Database Administrators
All other computer scientists
87,000
97,000
Nature of Employment:
Computer and Data Processing Services
Applications of computers to services
3 Types of Employers:
1.
2.
3.
Manufacturers of Computers and Components
Systems Consultant to the Users
Users (mostly service industries)
Most employers place a premium on some formal college
education
Computer/Electronics/Electrical Engr Hardware
Computer Science/Software Engr
Software
The expansion of the communications networks create job
opportunities for Electrical and Electronics Engineers
Increasing use of sophisticated computer tech increase
employment of computer professionals
GOVERNMENT SERVICE
The largest share of budgets of local governments (except
education) and government employees are attributed to
PUBLIC WORKS
Ran by a City Engineer, or Public Works Director
Areas of Responsibilities of a Public Works Director:
Streets, highways and bridges
Water and Sewage System
Parks, Playgrounds, Airports, Cemeteries, etc.
Zoning, Building Inspection
Vehicle Maintenance
At the state level, the largest employment of Civil Engrs is in the State
Highway/Transportation Department.
COLLEGE TEACHING AND RESEARCH
Requires Graduate Education
terminal degree such as Ph.D or D.Sc
Researchers seek M.S. or doctorate degrees
Professor of Engineering
above-average academic capability
BIOMEDICAL ENGINEERING AND HEALTH
SERVICES
Increase of technical complexity has required the service of a
new breed of engineer: the Biomedical Engineer
Biomedical Engineering application of engineering
concepts, methods, and techniques to biology and medicine
Subspecialties of Biomedical Engineering:
Bioengineering quantitative analysis of components of biological
systems
Medical Engineering/Biomedical Technology
- design and development of
use
in medical
instrumentation for
research and practice
Clinical Engineering use of Engg tech to improve
health-care delivery
Health-Care Systems Engineering deals with
problems in analysis of health-care
efficient
concepts; design of more
and less costly modes of HC delivery
New emerging Subspecialties:
Biochemical Engineering
Agro-bio Engineering
Genetic Engineering
Examples of work done by Biomedical Engineers
Artificial Organs
Automated Patient Monitoring
Blood Chemistry Sensors
Application of Expert Systems
Design of Optimal Clinical Laboratories
Medical Imaging Systems
Computer Modeling of Physiologic Systems
Biomaterials Design
Sports Medicine
