Quản lý kinh doanh xây dựng Chapter 3 MARKETING IN CONSTRUCTION BUSINESS

Quản lý kinh doanh xây dựng Chapter 3 MARKETING IN CONSTRUCTION BUSINESS RETAINING EXISTING CUSTOMERS IDENTIFYING PROSPECTIVE NEW ONES ATTRACTING NEW ONE TO CONSIDER ‘Selling’ is therefore alien. • In tradition: The industry reacts to clients’ wishes by tendering for work and if successful, constructs the building or provides the infrastructure. • Future: Getting their name on preferred lists so they could tender, and win contracts. • This has made the industry more conscious of the need to market and sell their services.

QUẢN LÝ KINH DOANH

BUSINESS

CHAPTER 2 CONSTRUCTION BUSINESS STRATEGY & STRATEGIC PLANNING

REFERENCE

1 Chapter 5, Business Organization for Construction, Chris

March, 2009, Taylor & Francis.

2 Chapter 6, Construction Business Management, Nick B

Ganaway, 2006, Elservier Ltd.

Marketing plays a key role in the

strategic planning process.

MARKETING FOR CONSTRUCTION

MARKETING SALES

BASIC COMPONENTS OF BUSINESS

DEVELOPMENT

MARKETING FOR CONSTRUCTION

MARKETING FOR CONSTRUCTION

MARKET RESEARCH

PUPLIC RELATIONS ADVERTISING

MARKETING FOR CONSTRUCTION

Business Development Process for Construction

Services

(Nick B Ganaway, 2006)

MARKETING FOR CONSTRUCTION

• ‘Selling’ is therefore alien

• In tradition: The industry reacts to clients’ wishes by tendering for work and if successful, constructs the building or provides the infrastructure

• Future: Getting their name on preferred lists so they could tender, and win contracts

• This has made the industry more conscious of the need to market and sell their services

MARKETING FOR CONSTRUCTION

• Make your company known and give them

reasons to do business with you

• Start: what construction market you’re going

to pursue, and learn it inside out

• Specialization allows you to more quickly

become known for the work you do.

MARKETING FOR CONSTRUCTION

• Build marketing program around your strengths

• Convince customer that

“This is the contractor who can give me exactly what I need.”

• If start with no history to show your prospect, take heart

• Remember, at one time, every contractor had zero projects under his belt

MARKETING FOR CONSTRUCTION

• The Chartered Institute of Marketing defines marketing:

‘as the management process responsible for identifying, anticipating and satisfying customer requirements

profitably’

• Need to understand:

– What size and location houses should be,

– The quality of finishes, and so on;

MARKETING FOR CONSTRUCTION

• Need to do:

– More involved in the design processes, establish what the clients really need;

– Greater emphasis on time completion;

– Less on using the contract clauses as reasons for not doing this to claim extra payments;

– Use total quality management

to ensure customer satisfaction.

The Marketing Process

Identify prospective new customers and those

current customers wishes to retain

Assess customer requirements and determine

how to meet their needs

Communicate to public

Attract customers

The Marketing Process

• The strategic planning and business portfolio analysis processes help

to identify and evaluate marketing opportunities

• Purpose: help the firm plan how to capitalize

on these opportunities

Key Elements • The segmentation process divides the total

market into market segments.

• Target marketing

chooses which segment(s) are pursued.

• Market positioning for the product is then

determined.

2 - 17

The Marketing Process

• Competitor analysis guides competitive marketing

– The “Four Cs” – customer solution, cost, convenience, and communication

The Marketing Mix

The Marketing Process

• Marketing analysis

– Provides information helpful

in planning, implementation, and control

The Marketing Process

SSEGMENTING

TTARGETINGP

POSITIONING

The Marketing Process

SSEGMENTING

(Nick B Ganaway, 2006)

MARKETING ANALYSIS

DEMAND ASSESSMENT

CUSTOMER SATISFACTION

ASSESSMENT COMPETITION ASSESSMENT

Identify Potential Customers’ Decision

Process

Identify Service Characteristics Valued by Potential

Customers

Identify Potential Customers’ Current Service Providers Select Potential

Customers to Target

MARKETING ANALYSIS

DEMAND ASSESSMENT

MARKETING ANALYSIS

MARKETING ANALYSIS

• Once relevant markets defined, company need:

– Identifies the potential customers in each market

– Their willingness to purchase the types of services– Their ability to purchase the services

MARKETING ANALYSIS

CUSTOMER SATISFACTION

ASSESSMENT

(Nick B Ganaway, 2006)

MARKETING ANALYSIS

• Company offer LEAST-COST service

• Company might not offer LEAST-COST,

customer needs to perceive that added value was obtained for additional cost, defined as:

CUSTOMER SATISFACTION

ASSESSMENT

• Apply to evaluate each contractor

• If owner are not satisfied with the value of

services received, must improve some

characteristics of its service to obtain more

competitive advantage.

CUSTOMER SATISFACTION

ASSESSMENT

MARKETING ANALYSIS

COMPETITION ASSESSMENT

(Nick B Ganaway, 2006)

• DETERMINE WHY THE COMPETITOR WAS

SELECTED FOR EACH PROJECT

MARKETING STRATEGIESLEVEL 1: STRATEGIC MARKETING

LEVEL 2: TACTICAL MARKETING

LEVEL 3: INTERNAL MARKETING

MARKETING STRATEGIES LEVEL 1: STRATEGIC MARKETING

• Enhance company name recognition and its

reputation.

• Company logo, sponsoring a sports team,

advertising in trade publications, participating in trade shows, repainting company vehicles.

• Image builders include:

– Clean jobsites and company facilities

– Neatly attired employees

– Courteous, professional behavior from all employees – Promptness for meetings and service calls

MARKETING STRATEGIES LEVEL 2: TACTICAL MARKETING

• Selected to target specific current or

prospective customers

• These might include targeted mailing of focused brochures, cold calls by project managers, and sponsored social activities

MARKETING STRATEGIES LEVEL 3: INTERNAL MARKETING

• Inform employees of company activities and ensure that they understand their role in

maintaining the company’s reputation and in marketing its services.

• Include newsletters and training.

• Important to keep employees motivated by publicly recognizing their service and

accomplishment.

MARKETING TOOLS

(Nick B Ganaway, 2006)

MARKETING STRATEGIES LEVEL 2: TACTICAL MARKETING

1 INCREASE THE DEMAND

2 “BUYING CYCLE” – MOVE UP

3 ATTRACTING NEW CUSTOMERS

3 TACTICAL MARKETING STRATEGIES INCREASE SALES

2 HOW?

1 INCREASE THE DEMAND

MARKETING STRATEGIES

LEVEL 2: TACTICAL MARKETING

2 “BUYING CYCLE” – MOVE UP

(Nick B Ganaway, 2006)

MARKETING STRATEGIES

LEVEL 2: TACTICAL MARKETING

3 ATTRACTING NEW CUSTOMERS

QUESTION?

1 WHICH BUSINESS

STRATEGIES SHOULD APPLY THIS TACTICAL MARKETING STRATEGY

2 HOW ATTRACTING?

MARKETING STRATEGIES

• Selection of marketing strategies is the

decision regarding how to PRICE the services the company offers.

MARKETING STRATEGIES

(Nick B Ganaway, 2006)

MARKETING STRATEGIES

MARKETING IS NOT FREE

BOTH HUMAN AND FINANCIAL RESOURCES

IT IS A COST OF DOING BUSINESS

MARKETING STRATEGIES

QUESTION?

1 How much should spend for marketing?

1 Market intelligence systems

and market research

• MIS is one that systematically gathers and

processes critical business information,

transforming it into actionable management intelligence for marketing decisions.

(Chris March, 2009)

Market intelligence systems (MIS)

• The estimating, purchasing and contract

• Costs (actual and estimated),

• Success rates in estimating,

• Competitors’ successes,

• Completion times, durations of activities,

• Names of the clients

• Written reports, aide memoirs, and by

questioning staff.

Market intelligence systems (MIS)

• Site managers and estimators can look at a set of

drawings and in relatively short time advise on the approximate cost of the project, its duration

• Senior managers have an instinct and feel for the

marketplace resulting from their contacts with

clients, existing and potential

• Purchasing managers are good at predicting by how much materials suppliers and subcontractors are

likely to reduce their quotations if the contract is

awarded

Market intelligence systems (MIS)

• From the web, providing the person doing so is able

to discern the useful material from the rubbish

• The news media

• Libraries, professional institutions and trade

associations are excellent sources

• There are an increasing number of computer

databases that can be accessed

• Marketing research is the systematic

gathering, recording and analyzing of data

about problems relating to the marketing of goods and services.

• Market research will give you the data you

need to identify and reach your target market

at a price customers are willing to pay.

Market Research(MR)

• Marketing research focuses and organizes marketing information It permits entrepreneurs to:

– Spot current and upcoming problems in the

current market

– Reduce business risks

– Identify sales opportunities

– Develop plans of action

Market Research(MR)

Define the objectives

Plan the research

Select the method of research

• Find trends in a type of work, the projected availability of

labor, the competition if diversifying, clients’ aspirations, or what the users actually require from the building, which may differ from the client’s beliefs

• At another level, who are the users?

– For example, in a hospital there are patients, doctors,

nurses, administrators and maintenance staff, all of whom have a view on the best way to carry out their work or be treated.

Market Research(MR)

Define the objectives – Why and What

Four Considerations

Potential usefulness of the results

Management attitudes towards marketing research

Resources available for

Market Research(MR)

 How much depth is the study going to go into,

as the deeper the questioning, the more

expensive it will be

 It can vary from identifying problems and

determining possible courses of action, to

conducting detailed surveys.

Plan the research

Market Research(MR)

Select the method of research

(Chris March, 2009)

Method 2: Work

Sampling

Method 2: Generalized intention

Method 3: Intention simulation

Market Research(MR)

THEORY OF PLANNED BEHAVIOUR

(Ajzen 1991)

Indirect measurement of attitude:

measuring behavioural beliefs and

outcome evaluations

Market Research(MR)

THEORY OF PLANNED BEHAVIOUR

(Ajzen 1991)

Indirect measurement of attitude:

measuring behavioural beliefs and

outcome evaluations

Market Research(MR)

THEORY OF PLANNED BEHAVIOUR

(Ajzen 1991)

Indirect measurement of attitude:

measuring behavioural beliefs and

outcome evaluations

Market Research(MR)

THEORY OF PLANNED BEHAVIOUR

(Ajzen 1991)

Indirect measurement of attitude:

measuring behavioural beliefs and

outcome evaluations

Indirect measurement of subjective norm: measuring normative beliefs and motivation to comply

control (PBC)

Indirect measures of PBC: Measuring control beliefs and their perceived power

to influence behaviour

Market Research(MR)

THEORY OF PLANNED BEHAVIOUR

(Ajzen 1991)

Indirect measures of PBC: Measuring

control beliefs and their perceived

power to influence behaviour

Market Research(MR)

THEORY OF PLANNED BEHAVIOUR

(Ajzen 1991)

Indirect measures of PBC: Measuring

control beliefs and their perceived

power to influence behaviour

Market Research(MR)

THEORY OF PLANNED BEHAVIOUR

(Ajzen 1991)

Indirect measures of PBC: Measuring

control beliefs and their perceived

power to influence behaviour

The Customer

• National government,

local government,

hospital trusts,

commerce, industry, the

retail sector, housing

associations, individuals,

and users of the building,

such as visitors and

employees

• New buildings, maintains

and alters existing

buildings

Public sector

Private sector

Individual

The Customer

QUESTION?

1 What factors influence customers?

The Customer

(Chris March, 2009)

QUESTION?

Forecasting is often WRIGHT or WRONG?

In general, forecasts are almost always wrong

Throughout the day we forecast very different things such as weather, traffic, stock market, state of our

company from different perspectives

Virtually every business attempt is based on

forecasting “Best" educated guesses more valuable than no forecasts

-Forecasting

What should we forecast?

Departments throughout the organization depend on forecasts to formulate and execute their plans

Finance needs forecasts to project cash flows and

Demand is not the only variable of interest to

forecasters

Manufacturers also forecast worker absenteeism, machine availability, material costs, transportation and production lead times, etc

Besides demand, service providers are also

interested in forecasts of population, of other

demographic variables, of weather, etc

Forecasting

• New product planning

Types of Forecasts by Time

Design

of system

Detailed use of system

Quantitative methods

Qualitative Methods

Forecasting During the Life Cycle

Introduction Growth Maturity Decline

Qualitative Forecasting Methods

Qualitative Forecasting

Models Market

Research/

Survey

Sales Force Composite

Expert

Opinion/

Jury

Delphi Method/

Decision Tree

Smoothing

Quantitative Forecasting Methods

Quantitative Forecasting

Regression Models

2 Moving Average

1 Naive

Time Series Models

3 Exponential Smoothing a) simple

b) weighted

a) level b) trend c) seasonality

Market Positioning

The company must ask:

1 Which part of the market does

the company wish to participate

in?

2 What penetration of this market

does it wish to accomplish?

Fast food

Sea defenses and bridges.

Fast food

Sea defenses and bridges.

HousingMulti-storey flats, Low-rise flats,

Maisonettes (nhà nhỏ), Executive (cơ quan hành chính),Terraced (nhà liên kế),

Detached (biệt thự)

Market PositioningThe type of product

The price range and quality standards

Market Positioning

(Nick B Ganaway, 2006)

New Products or Services

WHAT IS THE GAP in the market as a result of shifting requirements

CREATE AN OPPORTUNITY

New Products or Services

Increase of one-parent families and the elderly

population

In the centre of large cities: Offices and warehouses have been refurbished and new apartments have been constructed

Associated with this is the social infrastructure needed

to support this change in the needs of the population in the inner cities, such as bars, clubs and restaurants

In the 1990s there was a major expansion in the town shopping complexes such as

out-of-Trafford Centre in Manchester,

Meadow Hall in Sheffield, and Bluewater in Kent.

New Products or Services

WHAT IS THE GAP in the market as a result of

shifting requirements.

CREATE AN OPPORTUNITY

WHAT IS THE LIKELY COMPETITION IS?

Nearly all the large, out-of-town shopping centres were built by Bovis Construction Sir Frank Lampl (CEO), spotted the

opportunity long before anyone else and put steps in place to ensure the company was positioned to procure the work.

New Products or Services

Pricing Decisions

Cover the central head-office costs which are involved in administering the contract;

The ‘profit’ considered to be possible in the existing market conditions

% Markup

Pricing Decisions

Materials

Subcontractors’

Discounts

Promotion and Selling

Completion on time and on budget,

A prescribed level of quality,

Rapid reaction time to defects,

A good safety record,

Paying suppliers and sub-contractors on time,

Not hiding behind the small print of the contract to make claims,

Looking after the client’s and other third parties’ interests

Promotion and Selling

Promotion and Selling

Personnel Selling

Advertising

Sales PromotionPublic

Relations

Source: Chris March (2009)

Promotion and Selling

Source: Chris March (2009)

Promotion and Selling

construction-business#sthash.sWH4uS4K.dpuf)

(http://www.constructionmagnet.com/rural-builder/easy-inexpensive-ways-to-promote-your-Easy, inexpensive ways to promote

• Rotate truck placards

• Develop a consistent look

• Work place signage

• Run a clean jobsite

• Business cards for all employees

• Learn something new: The value of final product reviews

• Help train the next generation of builders

• Best Internet practices

• Share your expertise with others

• Know your company, its vision and its market