FACTORS AFFECTING MARKETING SUCCESS FOR REAL ESTATE FIRMS AND CONSTRUCTION COMPANIES IN THE HOUSING...

8/14/2019 FACTORS AFFECTING MARKETING SUCCESS FOR REAL ESTATE FIRMS AND CONSTRUCTION COMPANIES IN THE HO

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CAPE COAST POLYTECHNIC

SCHOOL OF ENGINEERING

DEPARTMENT OF BUILDING TECHNOLOGY

PROJECT TOPIC:

FACTORS AFFECTING MARKETING SUCCESS FOR REAL ESTATE

FIRMS AND CONSTRUCTION COMPANIES IN THE HOUSING SECTOR

PREPARED BY

TEDDY ATO ADAMS

A FINAL YEAR PROJECT REPORT IN PARTIAL FULFILMENT OF THE

REQUIREMENT FOR THE AWARD OF HIGHER NATIONAL DIPLOMA IN

BUILDING TECHNOLOGY

MAY, 2011


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DECLARATION

I, TEDDY ATO ADAMS, hereby declare that this project is the result of my

own work except the recognition of references to other peoples work, which

have been duly cited.

SUPERVISORS DECLARATION

I hereby declare that the preparation and presentation of this project work was

supervised in accordance with the guidelines and supervision of research work

laid down by the Cape Coast Polytechnic, Cape Coast.

Supervisors nameEMMANUEL NANA JACKSON


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DEDICATION

I have found it impossible to carry the heavy burden of responsibility and to

discharge my duties as King as I would wish to do without the help and supportof those I love (Edward VIII, 18941972)

I dedicate this piece of work to all those important people in my life; my family

now and my love ones.


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ACKNOWLEDGEMENTS

Glory be to God great things he has done.

Preparing such a material would not have been possible but for the Grace of

God and some personalities worth mentioning.

I first and foremost to my dad and mum whose have laboured tirelessly to bring

me this far.

Secondly, I thank all authors whose work I consulted in writing this research

proposal.

I also thank the lecturer, Mr. Jackson, who I refer to as my father, for his

guidance and direction throughout my research work.

Finally, to all my family for their support and encouragement.


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ABSTRACT

There is no point having a brilliant strategy that just sits on the shelf gathering

dust. It needs to be executed and acted upon! It is the dream of very mother who

brings forth a new life into this world to see the child grow, develop and

increase; so should very business, be it construction firm or not. Marketing is a

critical issue to success in todays increasingly competitive business

environment. A companys growth and success can be strongly influenced by

marketing practices. The aim of this study is to investigate the critical factors

affecting marketing success for real estate firms and construction companies in

the housing sector and possible ways the firms can use marketing principles

(communicational policy) so as to stand out in the industry and make a lasting

impression with current and potential customers. Within this context, a survey

was carried out among 5 local real estate and construction companies that are

operating in the housing sector in the Sekondi Takoradi Metropolis. In thissurvey, top-level managers, senior staffs, owners and other employees of the

companies were administered with questionnaires. This was performed from

May to July 2012. In the study, the survey questionnaires were administered

during by face-to-face meetings. The marketing strategies and factors

considered in this study were identified based on a literature review of a

previous study. Then, a total of four marketing strategies and six possible

factors that were felt to have an effect on successful marketing for construction

companies were used. Finally, the ranking of the critical factors were

determined by using the Simple Multi Attribute Rating Technique (SMART)

and the strategies by simple frequencies. Based on the results marketing

strategies such as; advertising; personal selling; publicity; and sales promotion

respectively, and in addition to company image and customer satisfaction were

determined as highly vital factors for successful marketing in construction

business in ad.


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TABLE OF CONTENTS

Declaration i

Dedication ii

Acknowledgement iii

Abstract iv

Chapter I: INTRODUCTION 1

1.1 Background 1

1.2 Statement of problem 2

1.3 Research questions 3

1.4 Aims / Objectives of the study 3

1.5 Nature and Scope 3

1.6 Problems and limitations 4

Chapter II: LITERATURE REVIEW 6

2.1 Global Perspective of Real Estate 6

2.2 A review of research previously carried out 10

2.3 Communicational Policy 22

2.4 An article from a firm 24

2.5 Definition of terms 27

Chapter III: METHODOLOGY 31

3.1 The Research Design 31

3.2 Population 31

3.3 Sample and Sampling Technique 31

3.4 Instrument 31

3.5 Data Analysis 32

3.6 Research Question 32


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Chapter IV: DATA PRESENTATION AND ANALYSIS 33

4.1 Introduction 33

4.2 Findings from the Firms 33

4.3 Summary of findings of the study 40

Chapter V: FINDINGS, CONCLUSION AND RECOMMENDATIONS 41

5.1 Conclusion of the study 41

5.2 Recommendations of the study 41

5.3 Limitations and future research directions 42

Appendices 43

Bibliography 48


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CHAPTER 1:

INTRODUCTION

1.1BackgroundMarketingis the process used to determine what products or services may be

of interest to customers, and the strategy to use in sales, communications and

business development.It generates the strategy that underlies sales techniques,

business communication, and business developments.It is an integrated process

through which companies build strongcustomer relationships and create value

for their customers and for themselves (en.wikipedia.org/wiki/Marketing).

The Chartered Institute of Marketing defines marketing as "the management

process responsible for identifying, anticipating and satisfying customer

requirements profitably" (en.wikipedia.org/wiki/Marketing)

At the global and local level contractors and consultants have had to take a

more professional approach to marketing and sales. Some construction firms

are being restructured into client-oriented organizations. However, in all

organizations there is considerable room to develop marketing and sales to

enhance opportunities to grow and to protect markets during times of recession

(Wiley-Blackwell, 2000).

To stand out in the industry, construction business owners must be actively

involved in marketing to make a lasting impression with current and potentialcustomers. Different tools can be used to get the message out, including a

memorable logo and slogan, a strong website, eye-catching print materials and

a visible trade show display. Sometimes, these tools intimidate business

owners, but most strategies are not difficult to implement (McGlynn, 2010).

Knowing the right principles to use in marketing of products goes a long way

to sell out a construction business. There are various marketing principles and

strategies, of which each firm must know the suitable principles and strategy to

use. A marketing strategy needs to be relevant realistic to the business and

realistic.

Today's fast changing world demands that businesses have the agility to change

strategies to ensure ongoing competitiveness. This requires reviewing and

updating the assumptions upon which your marketing strategy is built.

1.1.1 Communicational PolicyCommunication is the process of establishing shared meaning, exchange ideas,

or passing information between a source and a receiver. The intended target for

any basic communication is the receiver; this could be a consumer reading amagazine ad.
http://en.wikipedia.org/wiki/Customer_relationship_managementhttp://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Chartered_Institute_of_Marketinghttp://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Chartered_Institute_of_Marketinghttp://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Customer_relationship_management


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The traditional communication toolsare advertising, directmarketing, sales

promotion, personalsellingand publicrelations. In addition to that there are

sponsoring, trade fairs and communication through multimedia channels (Weis,

2004, p.116).

1.1.2 Promotional CommunicationAccording to Patriche, (2011) Construction organizations use various

promotional approaches to communicate with target markets. The

communication process consists in two components: the promotional

communication also known as promotion and the permanent

communication.

To gain maximum benefit from promotional efforts, construction organizations

must make every effort to properly plan, implement, coordinate and control

communications.

Promotion defined by Burden (2000), includes communication activities that

provide extra or incentives to ultimate consumers, wholesalers, retailer, or

other organisational customers and that can stimulate immediate sales. It

attempt to stimulate product interest, trial, or purchase. Samples, premiums,

contest, and trade show exhibits are all examples of promotions (sale

promotions).

1.2Statement of the problemThe subject of marketing has received more attention in the construction field

over recent years (Winter and Preece, 2000) and many firms realized the

importance of marketing in this industry (Arditi and Davis, 1988). However,

there are many studies showing that construction firms are slow in adopting

marketing principles and marketing is not integrated into the structure of the

firms (Winter and Preece, 2000; Bennett, 2005; Yisa, Ndekugri and Ambrose,

1996; Cicmil and Nicholson, 1998). Ganah, A., Pye, A., and Walker, C. (2008)

investigated marketing strategies in the construction industry and the

challenges facing small to medium enterprises in the development of these

strategies. They found that there is a lack of understanding of construction

marketing and strategies within small to medium enterprises in the construction

industry. They also found that the strategy for marketing is nonexistent in most

instances.

Construction organisations or businesses start like any other business in the

marketing industry in Ghana, but unfortunately die out or remain stand still.

Only handfuls have been able to break out from this jinx. What then did they

that have been able to make it and competed well with other business do? A

simple answer to that question is their marketing policies were right. In view

of that there is then a possibility for other real estate developers and


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construction firms in Ghana to also make, only if they use the right marketing

principles and policies. But here is the case much research work has not been

done in relation to this critical area.

1.3Research questionWhy real estate developers and construction firms not successful like other

businesses that are into marketing?

1.4Aim and objectives of the studyTo help answer the above question, the following aim and sub-objectives will

be used:

1.4.1 AimTo identify growth oriented marketing strategies / policies usable byconstruction and real estate firm to maximise growth and sustainability of their

firm.

1.4.2 Objectives1. To find the most efficient communication policy / marketing strategy

that will enhance the marketing potentials of real estate developers and

construction firms in the Sekondi-Takoradi Metropolis.

2. To investigate the critical factors affecting marketing success ofconstruction companies in the housing sector.

1.5 Nature and scope1.5.1 Brief topography and history of SekondiTakoradi MetropolisSekondi-Takoradi, the third largest city in Ghana is also the capital of the

country's western region. It is the prime destination for industry and commerce.

The main industries that flourish here are plywood, shipbuilding, timber,

cigarettes and railroad repair. Sekondi-Takoradi remains one of the most

sought-after Tourist Destinations in Ghana (en.wikipedia.org).

Sekondi-Takoradi is located on the main railway line that runs from Accra to

Kumasi on the coordinates; 045500N 014600W in the western region of

Ghana (en.wikipedia.org).

The history of Sekondi-Takoradi, Ghana is very interesting. There were two

parts of the city which grew around the forts built by the Dutch and English in

the 17th Century. The first, Sekondi was older and larger than the second one.

It prospered to a great extent when in 1903 a railroad was constructed in that

hinterland of timber and mineral resources. In the second part of the city, adeepwater harbour was built in Takoradi in the year 1928. These two parts


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were joined in 1946. Sekondi and Takoradi, a single municipality since 1946,

became one city in 1963 (en.wikipedia.org).

The city is currently named (although not officially) as the Oil City of Ghana

due to the massive discovery of oil in the western region of Ghana and has

attracted massive migration from people all over the world (en.wikipedia.org).

Fig. Imap of Sekondi-Takoradi

Source:www.google.com/map

1.5.2 Problems and limitationsIn clear terms I anticipate some foreseeable obstacles in the process of our data

production.To begin with, I presume owners and managers of firms will not be willing to

give out information concerning their businesses and also there may be a

problem with regards to what to include in my interview guideline. In addition

as one can imagine it will be very difficult to arrange a meeting with the

respondents as a result of their tight schedule.

My study will be limited to the role of communicational policy in the

marketing activity of construction organizations (real estate and construction

firms) in the Sekondi Takoradi Metropolis, other marketing principles or

strategies may not be tackled.

1.5.3 Year and scope of the study
http://www.google.com/maphttp://www.google.com/map


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This work is performed in the 2011/2012 academic year in the Sekondi-

Takoradi Metropolis as a final year project report in partial fulfilment of the

requirement for the award of Higher National Diploma in Building

Technology.

1.5.4 Significance of the studyThe end result of the research will help improve Ghanas housing deficit in

such a way that construction and real estate firms will adopt the right

marketing strategies which will be identified in the findings and

recommendations, in marketing of their products especially houses.


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Chapter II: LITERATURE REVIEW

This chapter takes a look at review of literature in relation to real estate, real

estate marketing and promotional communication in real estate marketing.

Specifically the chapter looks at the various aspects of promotionalcommunication in the marketing of construction services or products globally.

2.1 Global Perspective of Real EstateDalin (2009) indicate that the real estate includes housing and the land which is

under the housing. It also includes the land, any kinds of building on the land,

the construction, other inseparable material and their right.

The real estate industry is a set of many enterprises which revolve the property

development, the sale and the maintenance forms. Each department may

include some different organizations, as indicated by Dalin et al (2009).

2.1.1 Global Overview of Real Estate Markets/Marketing (According toWikipedia, the free encyclopaedia)

The main participants in real estate markets are:

Owner/User - These people are both owners as well as tenants. Theypurchase houses or commercial property as an investment and also to

live in or utilize as a business.

Owner- These people are pure investors. They do not consume the realestate that they purchase. Typically they rent out or lease the property

to someone else.

Renter- These people are pure consumers. Developers- These people prepare raw land for building which results

in new product for the market.

Renovators- These people supply refurbished buildings to the market. Facilitators - This includes banks, Real Estate Brokers lawyers, and

others that facilitate the purchase and sale of real estate.

The owner/user, owner, and renter comprise the demand side of the market,

while the developers and renovators comprise the supply side.

2.1.2 Characteristics Of Real Estate MarketIn particular, the unique characteristics of the real estate market must be

accommodated. These characteristics include:
http://d/wiki/Commercial_propertyhttp://d/wiki/Commercial_property


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Durability - Real estate is durable. A building can last for decades oreven centuries, and the land underneath it is practically indestructible.

Because of this, real estate markets are modelled as a stock/flow

market. About 98% of supply consists of the stock of existing houses,

while about 2% consists of the flow of new development.

Heterogeneous - Every piece of real estate is unique, in terms of itslocation, in terms of the building, and in terms of its financing. This

makes pricing difficult, increases search costs, creates information

asymmetry and greatly restricts substitutability.

High Transaction costs - Buying and/or moving into a home costsmuch more than most types of transactions. These costs include search

costs, real estate fees, moving costs, legal fees, land transfer taxes, and

deed registration fees. The price of housing is high, and general

customers may buy housing with their saving in a few years or by

mortgage.

Long time delays - The market adjustment process is subject to timedelays due to the length of time it takes to finance, design, and

construct new supply, and also due to the relatively slow rate of change

of demand. Because of these lags there is a great potential for

disequilibrium in the short run. Adjustment mechanisms tend to be

slow, relative to more fluid markets.

Both an investment good and a consumption good- Real estate canbe purchased with the expectation of attaining a return (an investment

good), or with the intention of using it (a consumption good), or both.

These functions can be separated (with market participants

concentrating on one or the other function) or can be combined (in the

case of the person that lives in a house that they own). This dual nature

of the good means that it is not uncommon for people toover-invest in

real estate, that is, to invest more money in an asset than it is worth on

the open market. The housing can be used to live, and also can be used

to invest. This characteristic makes the marketing mode of housing willbe different from other ordinary customer goods.

Immobility - Real estate is locationally immobile (save for mobilehomes, but the land underneath them is still immobile). Consumers

come to the good rather than the good going to the consumer. Because

of this, there can be no physical market-place. This spatial fixity means

that market adjustment must occur by people moving to dwelling units,

rather than the movement of the goods. For example, if tastes change

and more people demand suburban houses, people must find housing in

the suburbs, because it is impossible to bring their existing house and
http://d/wiki/Information_asymmetryhttp://d/wiki/Information_asymmetryhttp://d/wiki/Over-investinghttp://d/wiki/Mobile_homehttp://d/wiki/Mobile_homehttp://d/wiki/Mobile_homehttp://d/wiki/Mobile_homehttp://d/wiki/Over-investinghttp://d/wiki/Information_asymmetryhttp://d/wiki/Information_asymmetry


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lot to the suburb (even a mobile home owner, who could move the

house, must still find a new lot). Spatial fixity combined with the close

proximity of housing units in urban areas suggests the potential for

externalities inherent in a given location.

The regionalism of housing - Due to the non-mobility of housing,housing has many locational characteristics. This makes that the

differences of housing not only reflects on the design, but also reflect

on their positions. The housings price at different locations is very

different.

The indivisibility of housing and land-The housing must be built ona certain land. This is reflected in two aspects: firstly, the building must

be on the land; secondly, the property of housing is usually linked to the

property of land. The customers get the lands right as the same time as

they purchase the housing.

The dispersion of housing - The non- mobility of housing and thescarcity of land resources make that the housing industry cannot form

industrial clustering. The housing industry in the geographical

distribution must be decentralized.

2.1.3 Demand for housingThe main determinants of the demand for housing are demographic. However

other factors like income, pri ce of housing, cost and avail abil ity of credit,consumer preferences, investor preferences, price of substi tutesand price of

complementsall play a role.

i. The core demographic variables are population size and populationgrowth: the more people in the economy, the greater the demand for

housing. But this is an oversimplification. The size and demographic

composition of households is variable and not entirely exogenous. It is

endogenous to the housing market in the sense that as the price of

housing services increase, household size will tend also to increase.

ii. Income is also an important determinant. Many housing economists usepermanent income rather than annual income because of the high cost

of purchasing real estate. For many people, real estate will be the most

costly item they will ever buy.

iii. The price of housing is also an important factor.2.1.4 Real estate financingThere are different ways of real estate financing: governmental and commercial

sources and institutions. A home buyer or builder can obtain financial aid from
http://d/wiki/Demographicshttp://d/wiki/Demographicshttp://d/wiki/Demographics


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savings and loan associations, commercial banks, savings banks, mortgage

bankers and brokers, life insurance companies, credit unions, federal agencies,

individual investors, and builders.

i. Savings and loan associationsThe most important purpose of these institutions is to make mortgage loans on

residential property. These organizations, which also are known as savings

associations, building and loan associations, cooperative banks (in New

England), and homestead associations (inLouisiana), are the primary source of

financial assistance to a large segment of American homeowners. As home-

financing institutions, they give primary attention to single-family residences

and are equipped to make loans in this area.

Some of the most important characteristics of a savings and loan association

are:

1 It is generally a locally owned and privately managed home-financinginstitution.

2 It receives individuals' savings and uses these funds to make long-termamortized loans to home purchasers.

3 It makes loans for the construction, purchase, repair, or refinancing ofhouses.

4 It is state or federally chartered.ii. Commercial banks

Due to changes in banking laws and policies, commercial banks are

increasingly active in home financing. In acquiring mortgages on real estate,

these institutions follow two main practices:

1. First, some of the banks maintain active and well-organizeddepartments whose primary function is to compete actively for real

estate loans. In areas lacking specialized real estate financialinstitutions, these banks become the source for residential and farm

mortgage loans.

2. Second, the banks acquire mortgages by simply purchasing them frommortgage bankers or dealers.

iii. Savings banksThese depository financial institutions are federally chartered, primarily accept

consumer deposits, and make home mortgage loans.
http://d/wiki/Savings_associationhttp://d/wiki/Savings_associationhttp://d/wiki/Building_and_loan_associationhttp://d/wiki/Cooperative_bankhttp://d/wiki/New_Englandhttp://d/wiki/New_Englandhttp://d/wiki/Louisianahttp://d/wiki/Louisianahttp://d/wiki/New_Englandhttp://d/wiki/New_Englandhttp://d/wiki/Cooperative_bankhttp://d/wiki/Building_and_loan_associationhttp://d/wiki/Savings_associationhttp://d/wiki/Savings_association


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iv. Mortgage bankers and brokersMortgage bankers are companies or individuals, who originate mortgage loans,

sell them to other investors, service the monthly payments, and may act as

agents to dispense funds for taxes and insurance.

Mortgage brokers present the consumer home buyer with the best loan from a

variety of loan sources. According to Don Burnette of Brightgreen Homeloans

in Port Orange, Florida, "The mortgage banker and broker conduit is vital to

maintain competitive balance in the mortgage industry. Without it, the largest

lenders would be able to unduly influence rates and pricing, potentially hurting

the consumer. Competition drives every organization in this industry to

constantly improve on their performance, and the consumer is the winner in

this scenario."

v. Life insurance companiesLife insurance companies are another source of financial assistance. These

companies lend on real estate as one form of investment and adjust their

portfolios from time to time to reflect changing economic conditions.

Individuals seeking a loan from an insurance company can deal directly with a

local branch office or with a local real estate broker who acts as loan

correspondent for one or more insurance companies.

vi. Credit unionsThese cooperative financial institutions are organized by people who share a

common bond; for example, employees of a company, a labour union, or a

religious group. Some credit unions offer home loans in addition to other

financial services.

vii. Other sourcesIndividual investors constitute a fairly large but somewhat declining source of

money for home mortgage loans. Experienced observers claim that these

lenders prefer shorter term obligations and usually restrict their loans to less

than two-thirds of the value of the residential property. Likewise, building

contractors sometimes accept second mortgages in part payment of the

construction price of a home if the purchaser is unable to raise the total amount

of down payment above the first mortgage money offered.

2.2A review of research previously carried outA look at a research work performed by Yisa, Ndekugri and Ambrose (1995),

on changes in the UK construction industry, reviled the following about the

marketing of construction services in UK which can be related to Ghana;
http://d/wiki/Life_insurancehttp://d/wiki/Life_insurance


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2.2.1 Problems associated with marketing in constructionThe construction industry is essentially a service industry (Arditi and Davis,

1988; Friedman, 1994; Hardy and Davies, 1983), and faces the same problems

often encountered by other service industries, namely intangibility of services,

inseparability, perishability, and heterogeneity. Generally, in the marketing of

services, as in the construction industry, there are problems additional to those

relating to the traditional marketing mixes, i.e. product, price, promotion and

place (Fisher, 1989; Hardy and Davies, 1983). Langford and Fellows (1993)

listed some of these problems as: uncertainties regarding the clients; the need

for relevant experience; limited differentiation between services; limited

knowledge of marketing; involvement of the consumer in production.

2.2.2 The way forwardStrategic growth results from an awareness of the opportunities and needscreated by changing market environment. The marketing function must become

central to the organization and shape its future market strategy. A good

understanding of the needs of the market arising from a greater attention to

effective boundary regulation will lead to beneficial market segmentation and

an inclination towards innovation, administratively as well as technically.

Unfortunately, the UK construction industry is yet to achieve significant

success in the planning and management of the marketing function.

Construction enterprises tend to ignore marketing in their development. As

currently employed in construction companies, marketing is mainly tactical

sales and advertising rather than being a strategic development of a client-

oriented business (Corfe, 1991; Pearce, 1992). In several companies within the

construction industry, marketing is still seen as an extension of, or part of the

responsibilities of operations managers or other specialists rather than as an

independent function (Hillebrandt and Cannon, 1990). Marketing as a service

to enhance performance has only recently been introduced in a number of

companies (Namo and Fellows, 1993) and it still appears to be relatively

poorly integrated and organized and the practice varies considerably (Yisa et

al., 1995).

The way forward is for construction firms to assess their markets adequately,

both now and where they plan to be in the future. They must realize that

marketing incorporates many business activities, both internal and external to

the companies, and embodies both a concept and procedure in its application.

The concept of marketing is that of focusing the activities of all departments of

a company on the needs of the customer, and then organizing the companys

resources to identify and satisfy those needs profitably. Marketing as a

philosophy stems from the recognition that a company can only survive byprofitably providing goods or services which the customer wants to buy.


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Again, too often the link between survival and success and provision of what

the customer wants, rather than what the company thinks the customer should

want, is not made by construction industry bosses. In todays business

environment, more than any preceding era, the only constant is change. To be

successful, organizations must manage change effectively, continuouslyadapting their bureaucracies, strategies, systems, products and cultures to

survive the shocks, and prosper from forces which decimate the competition.

2.3 Communicational PolicyA research carried out by Ph. D. Patriche et al (2009) indicated the following

write out; Construction organizations use various promotional approaches to

communicate with target markets. To define and examine the role of the

communication policy in the construction field, we must understand how

promotion works and the meaning of the communication process in this

economic domain. We must discuss the major types of promotional methods

and the factors that influence a construction organizations decision to use

specific methods of communication.

The communication process consists in two components: the promotional

communication also known as promotion and the permanent

communication. In this case we discus about the role of the promotion in the

market activity.

2.3.1 The intended role of promotion in relation to constructionmarketing activities

The role of promotion is to communicate with individuals, groups ororganizations to directly or indirectly facilitate exchanges by informing

and persuading one or more of the audiences to accept a construction

organizations products.

One long-run purpose of promotion is to influence and encourage buyers to

accept or adopt construction products, services and ideas. Companies indirectly

facilitate exchanges by focusing information about organizations activities and

products on interest groups (such as environmental and consumer groups),

current and potential investors, regulatory agencies and society in general. Like

all the organizations, construction plants communicate to facilitate satisfying

exchanges.

Promotion can play a comprehensive communication role. Some promotional

activities, such as publicityand public relation, can be directed toward helping

a construction company justify its existence and maintain positive, healthy

relationships between itself and various groups in the marketing environment.

Although a company can direct a single type of communication such as an

advertisement toward numerous audiences, constructors often design a


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communication precisely for a specific target market. A construction firm

frequently communicates several different messages concurrently, each to a

different group.

To gain maximum benefit from promotional efforts, constructionorganizations must make every effort to properly plan, implement,

coordinate and control communications.

Effective promotional activities are based on information from the marketing

environment, often obtained from an organizations marketing information

system. How effectively construction plants can use promotion to maintain

positive relationships depends largely on the quantity and quality of

information an organization takes in.

In the construction field, the promotional communication is much difficult to

realize, because of some disturbing elements, such as economic and cultural

differences, different tastes, attitudes and habits and the large variety of actors

that intervenes in the market process of a construction company.

Communication can be viewed as the transmission of information. Forcommunication to take place, however, both the senderand the receiver

of the information must share some common ground. They must share a

common understanding of the symbols used to transmit information.

Thus we defi ne communication as a sharing of meaning. Impli cit in

thi s def in iti on is the notion of tr ansmission of information because

shar ing necessitates transmission.

In the construction field, information is mostly technique and that involves

specific methods to transmit the ideas from the companies to their audience.

Communication begins with a source. The source is the construction

organization that has a meaning it intends and attempts to share with an

audience. A receiver is the individual, group or organization that decodes a

coded message. An audienceis two or more receivers who decode a message.

To transmit meaning, a source must convert the meaning into a series of signs

that represent ideas or concepts. This is called the coding processor encoding.

When coding meaning into a message, a source must take into account certain

characteristics of the receiver or audience. First, to share meaning, the source

should use signs that are familiar to the receiver or audience. Construction

organizations who understand this fact realize how to know their target market

and to make sure that an advertisement, for example, is written in language that

the target market can understand. Thus it is important that people understand

the language used in promotion. Second, when coding a meaning, a source

should try to use signs that the receiver or audience uses for referring to the

concepts the source intends.


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Construction plants should generally avoid signs that can have several

meanings for an audience. To share a coded meaning with the receiver or

audience, a source must select and use a medium of transmission. A mediumof

transmission carries the coded message from the source to the receiver or

audience. When a source chooses an inappropriate medium of transmission,several problems may arise. A coded message may reach some receivers, but

not the right ones. Coded messages may also reach intended receivers in an

incomplete form because the intensity of the transmission is weak. In the

decoding process, signs are converted into concepts and ideas. Seldom does a

receiver decode exactly the same meaning that a source coded. When the

decoding results are different from what was coded, noiseexists.

Noisehas many sources and may affect any or all parts of the communication

process in the construction field. When a source selects a medium of

transmission through which an audience does not expect to receive a message,noise is likely to occur. Noise sometimes arises within the medium of

transmission itself. Noise also occurs when a source uses a sign that is

unfamiliar to the receiver or that has a different meaning from the one the

source intended. Noise also may originate in the receiver. A receiver may be

unaware of a coded message because his perceptual processes block it out. The

receivers response to a message is feedbackto the source. The source usually

expects and normally receives feedback, although it may not be immediate.

During feedback, the receiver or audience is the source of a message that is

directed toward the original source, which then becomes a receiver. Feedback

is coded; send through a medium of transmission, and is decoded by the

receiver, the source of the original communication. It is logical, then, to think

about communication as a circular process. During face-to-face

communication, such as a constructor - beneficiary situation, both verbal and

nonverbal feedback can be immediate. Instant feedback lets communicators in

the construction field adjust their message quickly to improve the effectiveness

of their communication. Each communication channel has a limit on the

volume of information it can handle effectively. This limit, called channel

capacity, is determined by the least efficient component of the communication

process.


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In the construction marketing, several types of promotional methods can be

used to communicate with individuals, groups and organizations. When a

construction organization combines specific ingredients to promote a particularproduct (a type of a building, a particular construction service) that

combination constitutes the promotion mixfor that product. The four possible

ingredients of a promotion mix are advertising, personal sell ing, publicityand

sales promotion. Also, in the construction domain we can mention as

promotion mix components the direct communication and exhibitions

participation.

i. Advertising is a paid form of non personal communication about aconstruction organization and its products that is transmitted to target

audience through a mass medium such as television, radio, newspapers,magazines, direct mail, mass transit vehicles, outdoor displays or

catalogs.

Construction organizations use advertising to promote specific products,

services, ideas and issues. Because it is highly flexible, advertising offers the

options of reaching an extremely large target audience or focusing on a small,

precisely defined segment of the population. Advertising offers several

benefits. It can be an extremely cost-efficient promotional method because it

can reach a vast number of people at a low cost per person.

Advertising also lets the user repeat the message a number of times. Thevisibility that an organization gains from advertising enhances the firms public

Fig. II. : (Burden, Ingram, LaForge, Marketing Principles and Perspectives,

Exhibit 16-3)


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image. Advertising also has several disadvantages. Even though the cost per

person reached may be low, its absolute price can be extremely high, especially

for commercials during popular television shows. These high costs can limit

and, sometimes, prevent, the use of advertising in a promotion mix. Moreover,

advertising rarely provides rapid feedback. Measuring its effects on sales isdifficult and it ordinarily has less persuasive impact on costumer than personal

selling.

ii. Personal sell inginvolves informing customers and persuading them topurchase products through communication in an exchange situation, to

encompass the acceptance of ideas and issues.

Personal selling has both advantages and limitation when compared with

advertising. Advertising is general communication aimed at a relatively large

target audience, whereas personal selling involves more specific

communication aimed at one or several persons. Reaching one person through

personal selling costs considerably more than it does through advertising, but

personal selling efforts often have greater impact on construction customers.

Personal selling also provides immediate feedback, which allows construction

plants to adjust their message to improve communication. It helps them

determine and respond to costumers needs for information. When a

construction specialist and a customer meet face to face, they use several types

of interpersonal communication. Obviously, the predominating communication

form is the technical language.

iii.Publicity refers to non personal communication in news story formabout a construction organization or its products or both, that is

transmitted through a mass medium at no charge.

Examples of publicity include magazine, newspaper, radio and television news

stories about new construction projects and new products or personnel changes

in organization. Although both advertising and publicity are transmitted

through mass communication, the sponsor does not pay the media costs for

publicity and is not identified.

iv. Sales promotion is an activity or material that acts as directinducement, offering added value or incentive for the product, to

subcontractors, sales-persons or consumers.

Examples of sales promotion include bonuses and contents used to enhance the

sales of a product. The term sales promotion should not be confused with

promotion. Sales promotion is but a part of the more comprehensive area of

promotion, encompassing efforts other than personal selling, advertising and

publicity. Currently, construction organizations spend about one and a half

times as much on sales promotion as they do on advertising. Sales promotionappears to be growing in use more than advertising. Construction plants


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frequently rely on sales promotion to improve the effectiveness of other

promotion mix ingredients, especially advertising and personal selling. In the

construction filed marketers design sales promotion to produce immediate,

short-run sales increases. Generally, if a company employs advertising or

personal selling, it either depends on them continuously or to them cyclically.However, a marketers use of sales promotion tends to be irregular.

The direct communicationinvolves direct marketing methods, involves the use

of catalogs and technical booklets, also the use of bill boards and, most of all

involves the use of cyber marketing.

Exhibiti ons parti cipation is a specific component of promotional mix in the

construction field. Construction plants must focused on the characteristics

exhibitions for this economic domain.

Now that we have discussed the basic components of a constructionorganizations promotion mix, we need to consider how that mix is created. We

must examine what factors and conditions affect the selection of the

promotional methods that a specific organization uses in its promotion mix for

a particular construction product.

Construction organizations vary the composition of promotion mixes for many

reasons. Although all ingredients can be included in a promotion mix,

frequently a marketer selects fewer than four. In addition, many construction

firms that market multiple product lines use several promotion mixes

simultaneously. An organizations promotion mix is not an unchanging part of

the marketing mix. Marketers can and do change the composition of their

promotion mixes. The specific promotion-mix ingredients employed and the

intensity at which they are used depend on a variety of factors, including the

organizations promotional resources, objectivesandpolicies; characteristics

of the targetmarket; characteristicsof theproduct; costandavailabilityof

promotionalmethods.

The quality of a construction organizations promotional resources affects the

number and relative intensity of promotional methods that can be included in apromotion mix. If a construction companys promotional budget is extremely

limited, the firm is likely to rely on personal selling because it is easier to

measure a persons contribution to sales than to measure the effects of

advertising.

In construction field, a business must have a sizable promotional budgetif it is to use regional or national advertising and sales promotion

activities. Organizations with extensive promotional resources usuallycan include more ingredients in their promotion mixes. However,


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having more promotional money does not imply that they necessarily

will use a greater number of promotional methods. A construction

organizations promotional objectives and policies also influence the

types of promotion used.

If a companys objective is to create mass awareness of a new type of a

building, its promotion mix is likely to lean heavily toward advertising, sales

promotion, and possibly publicity. If a company hopes to educate consumers

about the features of durable product, such as a house, its promotion mix may

combine a moderate amount of advertising, possibly some sales promotion

efforts designed to attract customers and a great deal of personal selling

because this method is an excellent way to inform customers about these types

of products.

Generally, promotion mixes for construction products concentrate on personal

selling. However, constructors do use some advertising to promote their

products. Personal selling is used extensively for consumer durables such as

buildings and other construction products. Publicity appears in promotion

mixes for industrial goods and construction products.

The costs of promotional methods are major factors to analyze when

developing a promotion mix. Advertising and sales promotion efforts require

large expenditures. If the efforts are effective in reaching extremely large

number of people, the cost per individual reached may be quite small. Not all

forms of advertising are expensive, however. Many small, local constructionbusinesses advertise their products through local newspapers, magazines, radio

and television stations, and outdoor and transit signs. Another consideration

that marketers must explore when formulating a promotion mix is the

availability of promotional techniques.

2.3.2 Corporate Branding in Construction IndustryFactories rust away, packages become obsolete, products lose their relevance.

But great brands live forever (Backer, Spielvogel, and Bates, 1991).

Corporate branding is using a construction company's name and logo in a

manner that signifies the company and its work. When successfully executed,

this practice has significant advantages in the construction industry and the

mere fact your company is working on a project can make that building or

projects owner feel like he has the best possible team working for him. The

more effective you are at equating your name / company with high quality

work the more likely potential customers will seek you out and invite you to

participate in further projects. Despite decades of people saying it's all about

the lowest bidder the facts speak dramatically that construction companies

with a well crafted and maintained brand can and do get more and betterprojects and dont have to compete based solely on a bid. Many project


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owners are willing to pay a premium when they think or know they are paying

for the best possible work (or products).

The really great thing about effective branding in the construction industry is

that there are so many possible ways to create touch points to your target

customers. These include your trucks, employees' uni forms, your buil ding,

signage at construction sites, invoices, news reports, community and trade

association sponsorshipsthe list is endless.

Human beings consistently select the familiar rather than the unknown quantity

and this is why aggressively promoting your well conceived brand can make

such a huge difference in the construction industry

(www.constructionmarketingteam.com ,7/02/2012).

2.3.3 Warranty of Real EstateThe last thing a home buyer wants to worry about after closing is what could

possibly break or malfunction in her new home. Since that can cover a

multitude of items and systems, for peace of mind, buyers would want to get a

home protection plan. It's especially a good idea to give a home warranty to a

first-time home buyer with no experience maintaining a home.

2.3.3.1How Do They Work?If a home system or appliance breaks or stops working, the home owner calls

the home warranty company.

The home warranty company calls a provider with which it has a business

arrangement.

The specific provider calls the home owner to make an appointment.

The provider fixes the problem. If an appliance is malfunctioning and cannot

be repaired, depending on contract coverage, the home warranty company will

pay to replace and install the appliance. The home owner pays a small trade

service fee(www.ask.com,24/02/2012).

2.3.4 Construction market segmentationThe segmentation of consumer markets according to www.ask.com/market

segmentation(20/02/2012) occurs when companies try to place consumers into

specific categories to determine who is most likely to purchase their products.

Market segmentation allows companies to develop promotional campaigns that

appeal to these specific segments as opposed to painting all consumers with a

broad brush. Effective market segmentation can result in the most efficient use

of precious advertising currencies.
http://www.constructionmarketingteam.com/http://www.constructionmarketingteam.com/http://www.ask.com/http://www.ask.com/http://www.ask.com/http://www.ask.com/market%20segmentationhttp://www.ask.com/market%20segmentationhttp://www.ask.com/market%20segmentationhttp://www.ask.com/market%20segmentationhttp://www.ask.com/market%20segmentationhttp://www.ask.com/http://www.constructionmarketingteam.com/


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i. SignificanceWithout market segmentation, companies are required to take a "one size fits

all" approach known as mass marketing. As a result, they may be wasting

valuable time and money spreading their message to those who have no need

for or interest in their products and services. This approach also can make

companies vulnerable to losing existing customers to competitors' marketing

efforts that target the customers' specific needs.

ii. BenefitsIn contrast with mass marketing, market segmentation allows companies to

target consumers who have an actual interest in their products. For example, a

Christian bookstore that chooses to advertise on a radio station with a religious

format or during a religious television program can easily target listeners and

viewers who are more likely to benefit from its products.

iii. Types of NeedsMarket segmentation requires companies to assess the type of need their

product satisfies, which helps determine the overall marketing direction.

Possible needs include the fulfilment of social esteem or pleasure, such as the

status that comes with the purchase of a luxury automobile. A need can also be

functional in nature, such as a food product or one that facilitates household

chores.

iv. FunctionCompanies use information gleaned from market segmentation research to

develop marketing and promotional campaigns. For example, if the research

indicates that a product appeals to the 18- to 35-year-old demographic, the

company will develop advertising that appeals to a younger audience. If a

product lends itself to high impulse purchasing, the company will attempt to

persuade merchants to locate the product near the store's registers.

2.3.5 Marketing Strategies for Construction CompaniesAccording to Sandra Henderson, Fotolia.Com (02/01/20120), whether in the

remodeling business or new constructions, construction companies always run

into plenty of competition for construction work. Marketing ensures that they

have plenty of work, even when construction jobs are scarce. The use a variety

of marketing efforts gets companies name out much more quickly to a larger

audience. Sandra Henderson suggests the following steps;

i. Prioritize CustomersIn the construction business, it takes only a few good customers to make up thesubstantial part of your income. Define who your best customers are and stage


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your advertising around them. Narrowing your prospects ensures that your

marketing dollars do not go to waste.

ii. Localize MarketingWhen you are on-site in a lived-in neighborhood, there are potential customersall around. Place a sign on the corner with your name and tag line. Distribute

door hangers that tell a little more about your services. You can even ring

doorbells while placing door hangers to present a more personal message.

iii. Create a WebsiteYou need an online presence. Your website should have contact information

and a digital resume. Feature your best work and let your potential customers

know what your benefits are. Include customer testimonials and your own

credentials. Include pricing and information on the costs of building andremodeling.

iv. Become an ExpertIf you have worked in construction very long, you are sure to have a few tips

and tricks in your pocket. Offer a newsletter with advice and information. A

weekly or monthly email newsletter doesn't cost much and keeps you on your

customers' minds. Write blogs and articles for placement online with your

name and website listed in the "About the Author" section. You may need to

hire a writer; to keep costs low, hire a local college student at a lower pricethan a professional.

v. Reward ReferralsReferrals are one of the best ways to gain customers. Offer your current

customers a gift card or cash when they bring you business. When your

business is strong and your customer service is excellent, the referrals will not

be hard to come by. Print business cards to make referrals easy for your

customers. Simply hand out extras and ask customers to give them out when

referring your business to others.

vi. Sell Your SpecialtyYour company provides a service in a way that others do not. You may work

special hours that accommodate customers better. You may have a large crew

and finish jobs in amazingly short periods. Or you may do specialty work that

is not offered in your area. However you are unique; advertise that quality by

talking about it or creating a tag line that can be placed on marketing materials

such as door hangers and business cards.


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2.3.6 Creating a Powerful Marketing Communication StrategyAccording to Smallbiz Marketing Newsletter (2011), a powerful marketing

communication strategy should serve to make your business stand out from the

crowd. This article from the Smallbiz Marketing Newsletter discusses several

strategies to develop a business owners own compelling core marketing

communications piece.

i. Marketing Communication Strategy #1: The Compelling StoryEvery small business owner should be able to tell a compelling story about

their passions and why they started their business. After all, how can you

expect to create passion in your customers if you're not able to convey your

own business passion?

The Compelling Storyis just that - an exciting and interesting story as to whyyou decided to create the business you did. This story must be personal and

connect emotionally. A compelling story can create instant trust - and you

won't stand a chance of selling your products or services to someone unless

they trust you.

So, how do you go about creating your own compelling story? Here is a list of

important criteria to keep in mind.

Make it personal - Talk about the people you've touched Appeal to the emotions Create a story - make it fun to read Be passionate Incorporate your values Show your human side - talk about mistakes you've made and the

lessons you've learned

Your particular story is the perfect way to open your marketingcommunications folder and should be featured as the first item seen on the

inside right pocket. Your story should not be longer than a single page.

ii. Marketing Communication Strategy #2: The CompetitiveSquash

The purpose of this one page document is to summarize why people should

buy from you as opposed to your competition. You should summarize all the

advantages of doing business with your company. Communicate your unique

approach, the value customers get when they do business with you, and why
http://www.small-biz-marketing-tips.com/smallbiz-marketing-tips-newsletter.htmlhttp://www.small-biz-marketing-tips.com/smallbiz-marketing-tips-newsletter.html


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your products and services are the best in your field. Don't be shy. This is your

chance to show off.

Don't make this one text heavy. Pick three or four things you wish to

communicate and summarize them in a compelling way.

iii. Marketing Communication Strategy #3: The Problem SolverThe purpose of this one page sheet is to show how you are able to solve the

business problems of your customers. This is just another way of creating trust

and interest.

In order for this page to be effective, incorporate the following elements.

Briefly summarize the main problem or problems of your target market Describe how your prospect's problems are solved once they purchase

your solution

Describe the steps needed to solve the particular problemThis page should describe several specific customer types and demonstrate

how their problems were alleviated with your products and services.

iv. Marketing Communication Strategy #4: Product/ServiceSummary

Nothing difficult here - simply summarize the various products, services, and

package options you offer and list the benefits of each.

Notice I said to summarize the benefits, not the features. This is an

important distinction. Too many companies spend enormous amounts of time

covering various product features. Instead, concentrate on the benefits of the

product and how they will solve specific problems and issues.

v. Marketing Communication Strategy #5: The Devotion PageThis is the page that summarizes your customer testimonials. A testimonial is

proof that you have a track record of delivering what you promise. Make sure

each testimonial focuses on a result that was achieved to help the customer

with a specific issue.

Here are a few ideas for collecting customer testimonials;

1. While customers may love your product or service, some may feel they don't

have the time to write a testimonial. For customers with an established

relationship, write one up on their behalf and present it to them for their

approval. Be honest and tell them you want to use the testimonial on yourwebsite and related marketing materials.


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2. After you have completed the job and surpassed the customer's expectation,

ask them face-to-face for a quick testimonial. Have them just write a sentence

or two on a piece of paper. It will literally take them a minute or two to write.

They will rarely refuse if you have provided value to them.

3. Ask your customers to write the testimonial as if they were recommending

your products and/or services to a friend. This will typically create more

powerful and genuine copy.

Your summary of customer testimonials should fit on a single sheet of paper. If

you have enough, use both sides of the sheet.

vi. Marketing Communication Strategy #6: The InformationalArticle

Here is where you can provide some free information to help your customersolve a problem. Write a 1-2 page article on a topic that is important to your

customer base. Keep it short. If it is a long article, summarize it and then

provide the web URL where they can view or download the entire document at

no charge. By providing free information that is relevant and valuable, you will

continue to build on the trust and interest you have established.

So there you have it - all the main components of a strong marketing

communications kit. (You can purchase a pocket folder with your logo and tag

line printed on the front from your local print shop. Make sure to get the

folders that have the slots on the inside left pocket sothat you can insert yourbusiness card).

Any time you have someone that has expressed interest in your products and

services, mail or give them a copy of your folder. It's a powerful marketing

communication strategy that will build trust, interest, and repeat business.

2.4An article from a firmElite Kingdom Investment Consulting Limited (EKIC) qualifies as the leader in

the real estate business when one considers its clientele base and the quick

mode of land delivery in four regions of Ghana, including the cities of Accra

and Takoradi. EKICs operation in just about years has generated a clientele

base of about 4000 middle income earners making a transition from tenancy to

landlordship.

The plots purchased on lease by clients are situated principally around Accra,

Tema, Takoradi, Abri-South, and Ho. The elegant head office complex,

situated at No. 24 Lagos Avenue Road East Lagon for lands and No. 79 Logos

Avenue for construction and multimedia. The company employs a total of 111

staff and supervises 51 office staff and marketers, 60 field staff engaged inconstruction on outsourcing and subcontracting basis. Elite Kingdom manages


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5 branch offices located in Adenta, Spintex Road, Tema, East Legon, and

Takoradi. The Ho, Koforidu and Sunyani offices will open between November

2011 and March 2012.

This noble feat cannot be communicated without mentioning the co- founders

Mr. Robert Kwao Djangmah and Mrs. Akosua Henrietta Djangmah, who

operate as the Chief Executive Officer (CEO) and Managing Director (MD)

respectively. They also double up as the Chancellor and Vice Chancellor of the

Elite Kingdom Universities to open shortly.

The CEO holds an MBA (Human Resource Management) and BSc In

Agriculture from the University of Ghana; and other post graduate certificates

in project Management and international Disaster management from GIMPA

and University of Wisconsin, Madison, USA respectively.

The MD holds an MA in Adult Education and BSc in Administration from theUniversity of Ghana and Central University College respectively, and

certificates in project Management and Monitoring and Evaluation.

Earlier (1988- 2004), the CEO had worked for African, World Vision, US

peace Crops and freedom from Hunger and operated in various capacities

ranging from Acting Country Representative, Programmed Officer, Regional

Manager, and small Enterprise Trainer, on Health, Education, and

Microenterprise support programmers of these named organizations. The

expertise drawn in these various fields and the penchant for creating new

paradigms to solve problems has been the main driving force for the 51 trained

and qualified staff; divinely inspired innovations and extensive team work

forms the basis of the companys strength and backbone.

Proudly, the company packages and markets various categories of plots

including standard (100ft by 70ft), freestyle (100ft by 80ft) and executive plots

(100ft by 100ft). The most attractive feature is the suitable and flexible terms

of payment starting with just 200 Ghana Cedi and subsequently contributing as

low as 100 Ghana Cadis every month for a period of about seven (7) years. The

terms of payment are friendly to every pocket from the lower to the middleincome bracket. With as low as Gh5 per day payable for seven years, one can

own a litigation- free plot of land in gated community.

The key attraction in the service delivery are the well defined roads, utilities

such as electricity, water and a gravelled road, and security facilities; all in a

gated community. Our housing delivery is sensitive to the environment. The

use of digesters to manage solid and liquid waste is a precondition at any of our

sites.

EKIC is making a passionate entry into the housing sector and our target is a

modest 1000 houses per year and 200 houses per housing epicentre in each


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region. This is our contribution to the current 1.8 million housing deficit to

benefit the lower and middle income class. These people are unable to access

houses with prices over and above US$ 200,000 (two hundred thousand US

dollars). Elite Kingdom houses cost between GH 45,000 to GH 300,000 for

two bedroom units and up to six bedroom units, the client has one to yen yearsto pay for the houses purchased

Elite kingdom believes that the banking sector across the globe is at a credit

crunch cross-road and must therefore put a high premium on their human

capital in terms of training, and provision of provision of incentives including

accommodation for staff. We believe that as a company we are giving hope to

hopeless in the in the acquisition of the land and houses. On a passive note, we

are relocating people to the periphery of major cities, and reducing industrial

strikes. Subtly, we are giving families a predictable life in owning a valuable

asset via monthly contributions least 100.

Ghana Cadis paid through the various banks. This has directly improved that

saving culture of 4,000 clients to our banks, including US and UK based

clients cash remittances. Ghanaians in Diaspora are so excited about the deal

weve given them as they have become conscious of the fact of putting up their

own houses and enjoy their own homes.

The current banking culture and work ethic is on a daily basis promoting

the alienation of home grown Ghanaian companies which wholly owned by

Ghanaian. Its now more convenient for such companies to go in the formicrocredit loans at cut throat interest rates than to go for a loan facility from a

traditional leading institution demanding a mountain of unavailable collateral.

We as a corporate entity believe that there should be a paradigm shift in favour

of home grown companies.

Our clarion call to the banking sector is to redefine the collateral in teams of

the African realities and help design products which will be very convenient

for young and very promising companies to be able to stand on their feet.

The future holds bright prospects for Elite Kingdom in areas of education toprovide Senior High School (SHS) and Universities. The tourism and the hotel

arena will provide hotels, hostels, motels and guest houses that are backed up

transport facilities. Elite Kingdom therefore hopes to partner with all banking

stakeholders who will think alike with us by offering tailor-made collateral

facilities that will be beneficial to all in an African setting.


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2.5Definition of termsIt's easy to become confused about these terms: advertising, marketing,

promotion, publi c relations and publicity, and sales. The terms are often used

interchangeably. However, they refer to different -- but similar activities. Some

basic definitions are provided below. A short example is also provided

hopefully to help make the terms more clearly to the reader.

Advertising

Advertising is bringing a product (or service) to the attention of potential and

current customers. Advertising is focused on one particular product or service.

Thus, an advertising plan for one product might be very different than that for

another product. Advertising is typically done with signs, brochures,

commercials, direct mailings or e-mail messages, personal contact, etc.

Promotion

Promotion keeps the product in the minds of the customer and helps stimulate

demand for the product. Promotion involves ongoing advertising and publicity

(mention in the press). The ongoing activities of advertising, sales and public

relations are often considered aspects of promotions.

Marketing

Marketing is the wide range of activities involved in making sure that you're

continuing to meet the needs of your customers and getting value in return.

Marketing is usually focused on one product or service. Thus, a marketing plan

for one product might be very different than that for another product.

Marketing activities include "inbound marketing," such as market research to

find out, for example, what groups of potential customers exist, what their

needs are, which of those needs you can meet, how you should meet them, etc.

Inbound marketing also includes analyzing the competition, positioning your

new product or service (finding your market niche), and pricing your products

and services. "Outbound marketing" includes promoting a product through

continued advertising, promotions, public relations and sales.

Public relations

Public relations include ongoing activities to ensure the overall company has a

strong public image. Public relations activities include helping the public to

understand the company and its products. Often, public relations are conducted

through the media that is, newspapers, television, magazines, etc. As noted

above, public relations are often considered as one of the primary activities

included in promotions.


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Publicity

Publicity is mention in the media. Organizations usually have little control over

the message in the media, at least, not as they do in advertising. Regarding

publicity, reporters and writers decide what will be said.

Sales

Sales involves most or many of the following activities, including cultivating

prospective buyers (or leads) in a market segment; conveying the features,

advantages and benefits of a product or service to the lead; and closing the sale

(or coming to agreement on pricing and services). A sales plan for one product

might be very different than that for another product.

An Example of the Definitions

The following example from the Reader's Digest, a quote found in "Promoting

Issues and Ideas" by M. Booth and Associates, Inc. may help to make the

above five concepts more clear.

...if the circus is coming to town and you paint a sign saying 'Circus coming to

the Fairground Saturday', that's advertising. If you put the sign on the back of

an elephant and walk it into town, that's promotion. If the elephant walks

through the mayor's flower bed, that's publicity. And if you get the mayor to

laugh about it, that's publicrelations. If the town's citizens go the circus, you

show them the many entertainment booths, explain how much fun they'll havespending money at the booths, answer their questions and ultimately, they

spend a lot at the circus, that's sales.

Other terms that need to be defined include:

Market

According to Boone and Kurtz (Contemporary Marketing, 1998), a market is

composed of people or institutions with sufficient purchasing power, authority,

and willingness to buy.

Promotional mix

There are seven main aspects of a promotional mix. These are:

i. Advertising- Any paid presentation and promotion of ideas, goods, orservices by an identified sponsor. Examples: Print ads, radio, television,

billboard, direct mail, brochures and catalogues, signs, in-store

displays, posters, motion pictures, Web pages, banner ads, and emails.

ii. Personal Selling - A process of helping and persuading one or moreprospects to purchase a good or service or to act on any idea through


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the use of an oral presentation. Examples: Sales presentations, sales

meetings, sales training and incentive programs for intermediary

salespeople, samples, and telemarketing. Can be face-to-face or via

telephone.

iii. Sales promotion- Media and non-media marketing communication areemployed for a pre-determined, limited time to increase consumer

demand, stimulate market demand or improve product availability.

Examples: Coupons, sweepstakes, contests, product samples, rebates,

tie-ins, self-liquidating premiums, trade shows, trade-ins, and

exhibitions.

iv. Public relations - Paid intimate stimulation of supply for a product,service, or business unit by planting significant news about it or a

favourable presentation of it in the media. Examples: Newspaper and

magazine articles/reports, TVs and radio presentations, charitable

contributions, speeches, issue advertising, and seminars.

v. Corporate image - The Image of an organization is a crucial point inmarketing. If the reputation of a company is bad, consumers are less

willing to buy a product from this company as they would have been, if

the company had a good image.

vi. Direct Marketing - is often listed as a the fifth part of the marketingmix

vii. Exhibitions - are try-outs. You make your product, and let potentialbuyers try the product, this way; you know directly what people see in

your product. The downside, your competitor can see exactly what you

are doing (en.wikipedia.org/wiki)

Boone and Kurtz (Contemporary Marketing, 1998), explain that the

promotional mix requires a carefully design blend of variables to satisfy the

needs of a companys customers and achieve organisational objectives.

Market strategies

Market strategies consist of selecting a target market and developing a

marketing mix (- overall offer to appeal to the target market) to satisfy that

market needs (Burden, et al, 10)

Market segmentation

Marketing segmentation divides a market into subsets of prospective customers

who behave in the same way, have similar wants, or have similar

characteristics that relate to purchase behaviour (Burden, et al, 10).
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According to Boone et al (1998), the dividing of the total market into smaller,

relatively homogeneous groups is called market segmentation. Both profit-

oriented and not-for-profit organisations practice market segmentation.

Target market

Target market is defined as group of consumers or organisations with whom a

firm wants to create marketing exchanges (Burden, et al, 2000).

According to Boone, et al (200), target market for a product is the specific

segment of consumers most likely to purchase a particular product.

Customer focus groups

Customer focus groups are a group of people sampled from a larger population,

interviewed in open session for market research (www.wordweb.info/contact.

html).

Communication

Communication is the process of establishing shared meaning, exchange ideas,

or passing information between a source and a receiver. The intended target for

any basic communication is the receiver; this could be a consumer reading a

magazine ad (Burden, et al, 375)

Real estate

Real estate refers to a property consisting of houses and land

(www.wordweb.info/contact. html).
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CHAPTER 3:

METHODOLOGY

This chapter discusses the research design, the population and sample. It also

discusses the instruments used in the data collection, the procedure for data

collection and the method for data analysis.

3.1The Research DesignThe research design used is survey design. Research design is the specific data

analysis techniques or methods that the researcher intends to use. The survey

design involves the collection and analysis of data, and finding out the answers

concerning the current status of the subject. This comprises observation of

facts, collection and classification of data, interpretation of data, and

formulation of theories. Since human behaviour is difficult and cannot bepredicted, it makes the results of the research at times not to be applicable to

the population.

3.2PopulationThe target population is real estate developers and construction firms in

Sekondi-Takoradi Metropolis. This include

3.3Sample And Sampling TechniqueThe convenient sampling procedure will be used to select the population. Thus

due to the small population size census sampling technique will be used

(Stoker (1985) in A.S. Devos (1998); each of the target population will used.

The same procedure will be used within each institution to select employers

and employees, and also a simple random sampling will be used within each

institution where applicable.

3.4InstrumentA questionnaire is the major instrument that will be used to collect the data.

The use of the questionnaire is to get a standard form of answers or response. Itwill be of both closed and open ended questions.

3.5Data Collection ProcedureQuestionnaires will be issued out to each sample unit of the target population.

That is to get a fair representation of the finding.


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3.6Data AnalysisAppropriate frequencies and percentages will be used to analyze the data. SPSS

(Statistical Package for the Social Sciences) software and Microsoft Excel will

be used for all the analysis.

3.7Research QuestionThe leading questions I intend to pursue are:

Do construction firms have a marketing department?

Is the marketing department is effective, why?

What are the current marketing strategies (mix) being used by a particularconstruction firm?

Approximately how many customers has such construction firm served?

What other marketing strategies (mix) should be implemented by such firms to

maximise growth and sustainability?

What are the critical factors affecting marketing success of construction

companies in the housing sector?


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CHAPTER 4:

DATA ANALYSIS AND INTERPRETATION OF THE

FINDINGS

4.1IntroductionThis Chapter consists of the data analysis and the interpretation of all the

findings of the research.

A total of 40 questionnaires were issued out to three real estate firms and two

construction firms in the scope area of the study, and out of the 40

questionnaires 35 was received. With the 35 received, 25 were completely

filled, 5 were filled incompletely and 5 were not filled at all.

4.2Findings from the FirmsSection A and B

Table 1Profession Distribution of the respondents

Profession Frequency Percent Cumulative Percent

Valid

Architect 5 16.7 16.7

Quantity surveyor 10 33.3 50.0

Project manager 5 16.7 66.7

Structural engineer 4 13.3 80.0

Marketing director 2 6.7 86.7

Other 4 13.3 100.0

Total 30 100.0

From Table 1, 16.7% of the respondents were architect, 33.3% were quantitysurveyors, 16.7% were project managers, 13.3% were structural engineers,

6.7% were marketing directors and 13.3% were in other professions.


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Table 2 Position Distribution of the respondents

Profession Frequency Percent Cumulative Percent

Valid

Director / principalpartner

5 16.7 16.7

Associate partner 2 6.7 23.3

Senior staff 8 26.7 50.0

Trainee / internship 14 46.7 96.7

Other 1 3.3 100.0

Total 30 100.0

From Table 2, 16.7% of the respondents were director / principal partners,

6.7% were associate partners, 26.7% were senior staffs, 46.7 were trainees /

internship and 3.3 were in other positions.

Table 3 Frequency distribution representing the question How long haveyou worked with the firm? (Duration)

With respect to occupation duration, 36.7% workers had worked with their

firm for less than a year, 13.3% had worked for 1 5 years, 26.7%, had workedfor 1015 years and 6.7% had worked for over 15 years.

Duration Frequency Percent Cumulative Percent

Valid

less than a year 11 36.7 36.7

1 - 5 4 13.3 50.0

510 8 26.7 76.7

1015 5 16.7 93.3

Other 2 6.7 100.0

Total 30 100.0

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FACTORS AFFECTING MARKETING SUCCESS FOR REAL ESTATE FIRMS AND CONSTRUCTION COMPANIES IN THE HOUSING...

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