In the modern world, marketing in construction has become one of the components of increasing the competitiveness of enterprises. With its help, such areas of activity of the enterprise are regulated as directions and volumes of construction, use of investments and capital, as well as conditions and expediency of financing. The nuances and basic functions of building marketing are described in this article.
Why do I need a marketing plan in the construction industry?
Creating a marketing plan in the construction industry (construction marketing kit) does not mean absolute results, but will allow you to understand the business and fit into the rather aggressive competition of the construction market. Do not once again talk about how competitive this market is. In order to survive in this environment, a marketing strategy is simply necessary. It will increase your chances of getting enough profit for you, with it you will think not only about the survival of your company, but also about planning long-term prospects.
The difference between building marketing and any other
We can say that construction marketing differs from marketing in other areas primarily in its exceptional focus on the needs of consumers and customers of services directly within the company itself. On the example of marketing in construction, M. M. Kislitsky says that external marketing in the construction industry is not as relevant as the need for roads, housing and infrastructure. The supply and demand for construction products is inextricably linked to the macroeconomic environment. Construction marketing can be called with confidence the tool of production and strategic orientation.
The pace of development of construction marketing
It is impossible not to note that the pace of development of marketing technologies in construction compared to other economic sectors is quite slow. This is because the processes of interaction between customers and customers are quite complex. Such entities as customers, subcontractors and general contractors, providers responsible for logistics, investors and project managers participate in the construction relations system. Construction marketing is inextricably linked with the organization of the construction process, and has a number of unique features.
Dispersion of objects and environmental conditions
The complexity of marketing development in construction is that construction organizations are a fairly wide structure, dispersed over vast territories. Despite the dispersal of the construction entities, some of them are seasonal, which means their mobility and autonomy, as well as their readiness to move production facilities to another place at any time in accordance with the terms of the contracts.
Natural and climatic conditions are factors that directly affect the speed of completion of a construction project, and can also reduce the reliability of forecasts on the timing of completion of the project and putting it into operation, which is likely to be negatively accepted by the customer. For example, if deposits of sand and gravel are far from the immediate construction site, then it is worth considering the inevitable transportation costs.
Technological processes and transaction in construction marketing. Lack of working capital
Another nuance of marketing in construction is that the processes in the technological component of both capital construction and finishing work involve a huge number of various works and types of services, including monolithic, installation and construction, finishing and carpentry, as well as all kinds of design -projects, wiring various utility systems and finishing work.
In our time, the organization of market participation of the enterprise means an indispensable increase in total costs. According to statistics, the largest costs are for the organization of the movement of goods and the competent management of logistics processes. For example, transport logistics costs account for approximately 20% of the total cost.
It is worth considering such negative factors affecting construction marketing as lack of working capital, their uneven distribution, unstable solvency of the customer, imperfection and general shortcomings of the state management system.
Building Marketing Optimization Programs
To optimize all the marketing functions in construction, special services have been created that deal with marketing problems and issues. Her responsibilities include carrying out an objective analysis of the activities of marketers and the enterprise itself, which is based on current indicators for the production and marketing of buildings. Also, marketing services make suggestions for the development of further prospects and the implementation of long-term goals. The development of marketing programs is also the responsibility of marketing services.
The program developed by the marketing agency is the basis, occupies a central place in the planning of the enterprise and serves as a guide for organizational and construction plans. Thanks to marketing programs, enterprises will be able to really assess the opportunities, weaknesses and fundamental differences from competitors, as well as eliminate operational errors. Using a well-designed marketing program helps optimize the distribution of financing, tangible and intangible assets.
Various marketing tactics. Market segmentation
A very important economic process that optimizes marketing functions in construction is market segmentation. This concept means the differentiation of potential buyers of real estate by economic, demographic and geographical indicators to determine the most profitable niche for the enterprise.
There are several tactics that can be used by construction companies:
- Unified marketing, the purpose of which is the maximum number of sales of real estate of one particular type;
- Differentiated marketing, the purpose of which is to develop a strategic program to cover all competitive areas. Using this tactic, the maximum possible number of sales is achieved, as well as reducing entrepreneurial risk and stabilizing profits in the future.
It’s not enough to introduce marketing programs; it’s important to manage them correctly. Marketing activity in construction is the adaptation of the enterprise to current market conditions. It has several critical steps:
- analysis and market conditions;
- determination of the purpose of the organization;
- integrated development of marketing activities;
- the implementation of the goals.
Russian construction marketing and its specifics
For any country, the construction industry is very important. It provides employment for the majority of the population, is one of the most important sectors of entrepreneurial activity, and also supports social stability in the structure of society. In each developed country, the percentage of construction revenues is about 1/5 of GDP.
As for the peculiarities of marketing in construction in Russia, now the economic situation in the country has led most of construction companies to simply try to survive. The economic crisis did not comprehend only the elite, who are now working for profit and long-term prospects.
The main objectives of building strategies for the construction business
The main goal of a business strategy and Internet marketing in construction can be called not only the so-called survival, but also the maximum profit, as well as work for the long term. The experience of Russia and other countries shows that the most profitable construction business strategy is one in which the interests and needs of the potential and actual buyer are put in the first place.
If we talk more specifically about Russia, here marketing in the construction industry is practically not used, since the initial conditions are quite specific.
The specifics of Russian construction marketing
When drawing up a strategy for interaction and network marketing in construction for an enterprise, it is worth considering several factors that are inherent in our economy.
The first factor is the earlier formation of economies and entrepreneurship abroad. Not only should we catch up with our neighbors, we must also face their inevitable impact on our economy.
The second factor in the development of building marketing in Russia is the impossibility of applying the development strategies of Western countries to our specific and distinctive economy.
The third factor of marketing development in construction is the lack of a training marketing base that could be applied to Russian realities. In the universities of our country, mainly Western strategies are studied. We have already said that Western economic experience is not applicable to our country, including because of the difference in mentality.
Lack of information, stinginess of management and gray salary
The fourth factor that must be taken into account when building the foundation of management and marketing in construction is the unreliability and uniformity of marketing research, which leads to misinformation of construction organizations. The concealment of part of the income by company executives also contributes to the unreliability of marketing data.
Fifth factor - Russian entrepreneurs consider marketing research unprofitable and rely only on their experience and intuition.
The last factor that must be taken into account when drawing up a marketing strategy for construction is that due to huge taxes, most entrepreneurs hide their true incomes, and therefore it is almost impossible to obtain reliable information about the turnover of enterprises. In this case, the marketing strategy does not help to increase the profit of the enterprise, but only worsen the situation.
Contractor Marketing
The preparation of a marketing plan in a construction organization of a contractor type has a number of features. Despite the fact that the final object of construction in this organization is a construction object, its role is mainly advertising. As a product in a contracting construction organization, a pre-agreed range of production services appears, and the company itself acts as a service company in a certain segment of the construction market.
In short, a feature of marketing in the construction of a contracting construction organization is a combination of the characteristic features of a service and industrial enterprises. Marketing in this area is borderline in nature, therefore, an integrated approach to solving problems arises. Marketing in this type of construction has quite specific features that are not inherent in most manufacturing and construction enterprises.
The main essence and objectives of the marketing of a contract construction project
The main goal of all marketing strategies in a construction organization of a contract type is a combination of science, technology and marketing in construction, as well as the creation and maintenance of the level of life of all systems for collecting, exchanging and processing reliable information between all departments and subjects of a construction enterprise to maintain a stable, manageable and projected sales of a range of building services.
It is impossible to imagine a modern successful enterprise without an up-to-date and well-thought-out marketing strategy and leadership, able to combine modern management methods and entrepreneurial instincts.
The classical scheme of organizing and implementing a marketing plan at a construction company implies its appropriate division into internal and external. Each part of the marketing plan has its own subsections.