In the modern world, marketing in construction has become one of the components of increasing the competitiveness of enterprises. With the help of it, such areas of the enterprise's activity as the directions and volumes of construction, the use of investments and capital, as well as the conditions and expediency of financing are regulated. The nuances and main functions of construction marketing are described in this article.
Why do you need a marketing plan in the construction industry?
Creating a marketing plan in the construction industry (marketing kit for construction) does not mean 100% results, but it will allow you to understand the business and fit into the rather aggressive competition of the construction market. Needless to say, how competitive this market is. In order to survive in this environment, a marketing strategy is essential. It will increase your chances ofgetting enough profit for you, with it, you will think not only about the survival of your company, but also about planning for the long term.
The difference between construction marketing and any other
It can be said that construction marketing differs from marketing in other areas primarily by its exclusive focus on the needs of consumers and customers of services directly within the company itself. Using 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. Demand and supply for construction products are inextricably linked with the macroeconomic environment. Construction marketing can be safely called an instrument of industrial 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 rather slow. This is because the processes of interaction between customers and clients are quite complex. The system of construction relations involves such entities as customers, subcontractors and general contractors, providers responsible for logistics, investors and project managers. 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 inconstruction lies in the fact that construction organizations are a fairly broad structure dispersed over vast territories. Despite the dispersal of construction entities, some of them are seasonal, which means their mobility and autonomy, as well as their readiness to move production facilities to another location at any time in accordance with the terms of contracts.
Natural and climatic conditions are factors that directly affect the speed of completion of a construction site, and can also reduce the reliability of forecasts about the timing of the project and its commissioning, which is likely to be negatively perceived by the customer. For example, if sand and gravel deposits are located far from the immediate construction site, then the inevitable costs of transportation should be taken into account.
Technological processes and transactions 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 variety of works and types of services, including monolithic, assembly and construction, finishing and carpentry work, as well as all kinds of design projects, wiring of various utility systems and finishing work.
In our time, the organization of the market participation of the enterprise means an indispensable increase in total costs. According to statistics, the largest costs fall on the organization of the movement of goods and competentmanagement of logistics processes. For example, the cost of transport logistics is approximately 20% of the total amount of all costs.
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 marketing functions in construction, special services have been created to deal with marketing problems and questions. Her responsibilities include performing an objective analysis of the activities of marketers and the enterprise itself, which is based on current indicators for the production and sale of buildings. Marketing services also make proposals on 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, takes a central place in the planning of the company's activities and serves as a guide for organizational and construction plans. Thanks to marketing programs, enterprises will be able to realistically assess opportunities, shortcomings and fundamental differences from competitors, as well as eliminate operational errors. The use of a well-designed marketing program helps to optimize the distribution of financing, tangible and intangible assets.
Variousmarketing tactics. Market segmentation
A very important economic process that optimizes the functions of marketing in construction is market segmentation. This concept means differentiating 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 one specific type of property;
- Differentiated marketing, the purpose of which is to develop a strategic program to cover all competitive areas. When using this tactic, the maximum possible number of sales is achieved, as well as reducing business risk and stabilizing profits in the future.
It is not enough to implement marketing programs, it is important to manage them properly. Marketing activity in construction is an adaptation of the company's activities to current market conditions. It has several important steps:
- analysis and market conditions;
- define the purpose of the organization;
- complex development of marketing activities;
- embodiment of the intended goals.
Russian construction marketing and its specifics
For any country, the construction industry is very important. It provides employment for most of the population, is one of the most important branches of businessactivities, and also maintains social stability in the structure of society. In every developed country, the percentage of income from construction 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 to the fact that most construction companies are simply trying to survive. The economic crisis has not hit only a select few who are now working for profit and a long-term perspective.
Main goals of building business strategies
The main goal of the strategy of doing business 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 strategy for conducting a construction business is one that puts the interests and needs of a potential and actual buyer in the first place.
If we talk about Russia more specifically, then marketing in the construction industry is practically not used here, since the initial conditions are quite specific.
Specifics of Russian construction marketing
When drawing up a construction engagement and network marketing strategy for an enterprise, it is worth considering several factors that are inherent in our economy.
The first factor is the earlier development of the economy and entrepreneurship abroad. Not only do we have to catch up with our neighbors, we also have toface their inevitable impact on our economy.
The second factor in the development of construction marketing in Russia is the impossibility of applying Western development strategies to our specific and distinctive economy.
The third factor in 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. It has already been said above 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 basis 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.
The fifth factor is that Russian entrepreneurs consider it unprofitable to conduct marketing research and rely only on their experience and intuition.
The last factor to be taken into account when drawing up a marketing strategy for construction is that due to huge taxes, most entrepreneurs hide their true income, so it is almost impossible to get reliable information about the turnover of enterprises. In this case, the marketing strategy will not help to increase the profit of the enterprise,but only worsen the situation.
Marketing of contract construction site
Drawing up a marketing plan in a contracting type construction organization has a number of features. Despite the fact that the final object of construction in this organization is a construction site, its role is mainly advertising. As a commodity in a construction organization of a contracting type, a predetermined set of production services acts, and the company itself acts in a certain segment of the construction market as a service company.
In short, a marketing feature in the construction of a contracting construction organization is a combination of the characteristics of service and industrial enterprises. Marketing in this area is borderline in nature, therefore, an integrated approach to solving emerging problems is needed. Marketing in this type of construction has quite specific features that are not inherent in most manufacturing and construction enterprises.
The main essence and goals of marketing a contracted building object
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 for maintaining a sustainable, manageable and predictable sales of a range of construction-type services.
It is impossible to imagine a modern successful enterprise without a relevant and thoughtfulmarketing strategy and leadership that combines modern management techniques with entrepreneurial flair.
The classical scheme for organizing and implementing a marketing plan at a construction company implies its expedient division into internal and external. Each part of the marketing plan has its own subsections.
