Deck 13: Engineers in Marketing and Service Activities

Question 1

How do the tasks of marketing vary with the existing type of relationship (transaction-based, more sustained, or highly committed)?

Answer 1

In a transaction-based relationship , marketing is directed towards identifying a customer and selling the service or product to him. Emphasis is not given for developing continued business relationship with one particular customer.
In a more sustained relationship , greater emphasis is given on relationships to ensure repeated business. Because of this, the firm's marketing department will place additional effort to make sure that needs of customers are satisfied over the duration of the contract.
In a highly committed relationship the marketing function is significantly more complicated. Marketing pinpoint not only the needs of customer, but also the customer's environment, planning process, etc. In this type of relationship, marketing provides a continuum of service aimed at highly specific customer.

Question 2

In what ways is the purchase of engineering services to design an installation and the purchase of accessories such as an automobile or office equipment fundamentally different?

Answer 2

It is relatively simple to purchase an accessory as compared to purchasing an engineering service. Accessories are generally mass produced products that can be purchased from different retail vendors. These have physical appearance therefore it is easier to buy them.
On the other hand, engineering services will require contracts that delineate the needs and expectations of the party seeking the service and the party that is providing the service.
Thus, purchase of an engineering service is difficult as it does not have physical identity.

Question 3

In purchasing process materials, specifically steel sheets and rods, a buyer (commonly a business administration graduate) is offered material with slightly different specifications at a significant reduction in price. What should be his or her response?

Answer 3

The buyer should consult with a technical expert, most likely an engineer, to determine whether the material will be able to perform its intended function despite of change in specifications.
If the material cannot perform desired function the buyer will not buy it even at reduced cost. The buyer can ask the engineer if design can be altered to meet the specifications, without changing the cost.
If it makes financial sense to change the design, then buyer can purchase the reduced price material, otherwise, the buyer should seek another supplier to provide the material according to specifications.

Question 4

Distinguish between component parts and fabricated items.

Question 5

Although it is normally more efficient for the producer of repair parts to maintain an inventory of them at his factory, what alternatives might be considered when large users of the equipment are located in a remote region (such as the Middle East)?

Question 6

For a high-technology product and producer with which you are familiar, describe the provisions for after-sales service that have been established.

Question 7

In what ways are goods-producing and service-producing industries generally different?

Question 8

Provide an additional example of a change in the way a service industry does business as a result of wide economical availability of computers.

Question 9

Do you agree with the McKinsey studies on productivity today? What has changed?

Question 10

Discuss how the management functions of planning, organizing, leading, and controlling relate to the marketing process.