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1
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_management8/14/2019 FACTORS AFFECTING MARKETING SUCCESS FOR REAL ESTATE FIRMS AND CONSTRUCTION COMPANIES IN THE HO
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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
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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:
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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
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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
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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.
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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;
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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.
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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
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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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