
USD 3.4950
EUR 4.4435
GBP 5.5488 | Marketing on construction market during economic crisis | |
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Construction market has a tremendous impact on our national economy. What happens in the construction industry reflects society's demands, both from a perspective of demographic trends and especially of the financing. The current economic slowdown requires to review the way marketing is done. The companies must eliminate unaccountable marketing programs and actions that generate insufficient sales leads and fail to support the sales team efforts. The marketing can be done in a better way. On the construction market you will come across more often than before to a dynamic and better informed involvement from the project beneficiary (final client). Nowadays’ beneficiary is the one who have the control over the money to be invested, therefore he defines the project according with the terms that desires. Then he looks for the necessary expertise to carry out the project. Construction manager or general contractor works on two core markets: the public market and private market. There are great differences in terms of processes that general contractors, project managers and subcontractors must comply for bidding on these two very different markets. In the public domain, anyone interested should strictly according to tender documents and specifications issued by the competent authority. In the public auctions, construction works are attributed to builders or project managers by a single law: the one who comes with the lowest price wins. This applies both to the architect and the main contractor, project manager and the subcontractors. Public procurement are not paid to think, but to submit a bid with the specifications. Therefore, there is no need for too much marketing. Firms of this type, carefully monitors the sources in announcing and awarding tenders for public works projects, such as Official Monitor, specialized web site (www.e-licitatii.ro, etc..), mayor’s websites, specialized publications, etc.. Private market is on the opposite side, there is a close cooperation between all parties involved: the beneficiary, designer, builder. The beneficiary know what type of building wishes to build and both the architect and the constructor gives him several options and solutions for the desired comfort. Within the construction companies, (usually small), the function of marketing and sales are combined in a single department. Most construction companies do not have any financial strength nor the personnel needed to set up two separate departments. Until last year, the construction market has registered significant growth due to the fact that Romania, a country with a very rapidly developing economy, needed mainly non-residential buildings, such as office space for services and industrial buildings This has led to an increasing demand for housing, office buildings, etc.. Things were going well by themselves and the managers were not prepared with a marketing plan thought the medium and long term and no one thought to a crisis like this. Current climate, however, forces the majority of business owners to drastically reduce costs. They have chosen, primarily, to reduce the marketing budget, which is now called "marketing costs", although I think that now, more than ever, is needed for efficient methods to reach the target audience. Why is this attitude a big mistake and how to make low-cost marketing is to be told in the folowing article ....
Cristina Dinu |
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