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  Home » Infobau Construction Market - noiembrie 2009 » Marketing on construction market during economic crisis
Marketing on construction market during economic crisis
 

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 industry offers to designers, architecture, engineering but also for marketers, the chance of exciting professional challenges and many different ways to build a career. But lately, there is a need for people that work in this market to change their perceptions in order to cope with the current business environment. They need more flexibility in thinking and ingenuity in the strategies discussed. "The work is planned and plans are achieved through work " - is true but sometimes work is not enough. It feels the need  of a "spark" or an idea, a new approach (maybe) that make the company more visible to potential customers and win loyalty of existing clients. "To succeed, must first believe that we can succeed" said Michael Korda.

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.
Basically, marketing staff works with statistical data on various types of construction markets by developing lists of potential customers for other groups of staff from the company who sell construction services or products. Often, in charge of marketing activity is one and same as in charge of business development. It happens quite often that when businesses begin to stagnate or while decreases the number of customers and revenues are also adversely affected the owner or manager to be engage in strategic planning and marketing process problems. These are signs that some measures have to be taken and plans are needed.
Strategic planning is a fundamental component of economic activity, but most employers do not find time to ensure the prosperity of their businesses. When businesses drop, the managers are aware of the importance of the strategic plan but when things go well (on the spur overall market growth), the plan is totally ignored. Marketing plan (as a component of strategic planning) must have marketing objectives and results to be pursued and a final goal, which indicate where the company will be more than one year, two, is a plan with concrete measures to enforce.
(Too) Many construction companies prepare their marketing plans vague, with no set deadlines and without practical issues. When turnover is heading into an unwanted direction, company executives are interested in what it was done or not. They say: 'We' contracts! We need more contracts! but does not review what goes wrong and what is to do further.

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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