PRODUCT:

In marketing product refers to the totality of the offering.

In Construction industry the total product includes services offered by the contractor in the support of the core product i.e. physical product.

For the construction industry products are :

Physical: houses, public and commercial facilities infrastructure & building products.

Service: expertise consultancy & design

Persons and reputation: eg hafeez contractor

Ideas and proposals: urban regeneration, regional development and competitions

Essentials: water gas electricity telecommunication, transport facilities

Highly desirable: schools, hospitals, shopping complexes, leisure centers

Desirables: environmentally secure, adaptable.

Product offerings can be explained through the total product concept which consists of core product, formal product and augmented product.

In the Housing industry:

The core product consists of : permanent accommodation / living space. The format product consists of : locations, utilities, electricity, brand name, availability of schools and hospitals nearby.

The augmented product consists of : security available clean environment, amenities.

PLACE:

Product has to reach the ultimate buyer so the company works with its intermediaries to bring to bring their product to the market. Marketing channels perform work of moving goods from the producer to the consumer.

In the housing and the construction industry construction cannot be transferred but here intermediaries transfer information of distinct places about the availability of accommodation so that not having any idea about these constructions get to know about it. In this industry distribution is done through real estate agents, who acts as connecting tool between the consumer and the provider.

PRICE:

Agreeing the price for a piece of work seals the relationship between contractor and the client. It is the central feature, and reflects the value placed on the relationship.

Prices is based on the combination of:

What the market expects

What the client can afford

The nature of competition in the sector

What the contractor can afford to work for

Any specific factors concerning the particular job e.g. location material used

What is being agreed and paid for- whether completion of a bldg or wider process offered supported by maintenance, pre sale and after care agreements?

Pricing considerations

Ø For housing an construction industry there are many considerations:

Capital projects & bldg activities are priced so that variable costs- the costs incurred as a result of gaining the work-are covered. Ideally the price also makes a contribution to the fixed costs of the contracted org. It is also necessary to consider charges incurred by the contractors as the result of having to underwrite the project from inception to delivery & from the need to acquire any specialists equipment and expertise necessary.

Ø Building products are priced so that an individual perception of quality value and service are at a level that the size and nature of the can sustain. it is also increasingly common to find differentiate pricing approaches as competitors seek real and perceived price advantages.

PEOPLE:

The people in housing and construction industry can be divided into groups:

Ø Those who develop the product

They consists of location hunters architect builders. They are required to have technical skills of geological mapping soil testing building designs and so on. The possessions of this skills is of utmost importance because building cannot be constructed on all types of land. Also materials use to build houses in different regions because of climatic differences. E.g. in England most houses are builds of woods whereas wood is not a viable portion in the tropical area. Builders who do the final construction consists of civil engineers skilled and unskilled labor

Ø Those who market the product

These consists of marketing people who may or may not have civil engineering background but certainly have the skills of understanding the customer as a well as the product. The marketer uses all the tools that help to overcome the unique characteristics the service industry. It includes the construction of a sample flat, which will break the tangibility factor intensive advertising to overcome the perishability factor and so on.

PROCESS:

Service Company can design a superior delivery process. Because of heavy initial, capital investment, long gestation period and a speculative tendency (irregular demand) housing and construction industry works other peoples money i.e. construction begins with advance booking and then customers are suppose to pay installments most of the payment is made after the product has been handed over this strongly experiences intangibility aspect of this industry.

In this industry tangible industry is supported by services in which the services offered enhance the client appeal for the product this relates to all aspects of the building and civil engineering where the creation of [particular facility is supported by the project and environment management, client liaison and specialist consultancy services and sometimes through maintain refurbishment upgrading and facilities management services and for public project sometimes also for general services to wider community.

PHISICAL EVIDENCE:

A service industry can develop a more attractive service environment where a service can be delivered. In the housing and the construction, sample houses photographs and posters of previous achievement can be displayed in construction offices or those can be shown to the customers when they come foe enquiry gets attracted to it.

Ø The need to place the client need rather than the contractor expertise at the core of all activities.Ø Attention to all aspects of project design and inception, and the development of presales services and activities the service aspects of work in progress and after sales activities. Attention to quality and durability of the project when complete.

Ø Acknowledgement that presentation is as important as technological expertise.

Ø Continuous attention to service, service extension and service development

Ø Taking the truly enlightened view of the needs wants and demands of the clients and commissioner of work the pressure on contractors and consultants and understanding them

Ø Total enduring impact of activities on the particular environment and location in which it takes place.

PROMOTION:

The construction industry is concerned with following forms of production:

The promotion of its capabilities and expertise to client and potential client

The promotion of its finished products to the community and society at large

The promotion of professionals within the industry to each other promoting specific general and continuing inter relationships and confidence between architecture, contractor quality surveyor planner other consultant civil engineers and sub contractors.

The promotion of general confidence, public sympathy and support for activities.

The overall purpose of promotion is:

Promotion activities of the construction industry can be divided in following:

Primary promotion

Ø Direct sales:

This is targeted at client’s potential clients and other capable of using the distinct expertise on offer. It involves opening up client face to face contact with those commission work and inviting tenders and presenting the distinct expertise on offer in the client’s best interest.

Ø Targeted direct market:

If this is to be effective it requires knowing who the people with influence are promotional material, brochures, and achievements can then be arranged and presented and if necessary specially prepare on client or sector specific basis.

Secondary promotion

Ø General advertising:

General advertising especially in the trade press to ensure continuing general awareness. From time to time some construction companies have engaged in television and radio ads.

Ø Logo design and reinforcement:

Billboards, hoardings and perimeter fences.

Ø Attendance at trade, professional and regional fairs and exhibit

Other efforts include:

v Speculative designs and proposals

v Tendering

Tertiary promotion

Ø Positive media coverage

it is in various forms e.g. Contractor’s places the hoardings at side of the finished bldg stating completed six months ahead of schedule

Ø General positive pubic relations:

the current activity that comes under this hading at present includes general support for schools, colleges and universities and contribution to the general amenities to communities

Marketing:

Marketing the Construction industry forms a very crucial part. A good awareness level is required for your product to be successful. Marketing under this sector is done through various mediums such as:

· Advertisements in newspapers and magazines, television and radio and also through e-mails and websites

· Sole selling agencies: These are agencies that are given the contract of marketing the product who are responsible for the sale of the product.

· Hoardings: These hoardings are put up at the site and contact numbers are given. Hoardings are also put up at railways, roadways and on BST buses, etc.

· Marketing through Estate agents: These estate agents also called as consultants act as middlemen between the customer and the builder. They are provided with brochures and site maps.

Target market:

The target market i.e. determining the customer are based on the following considerations:

1. Locality: The region where the building is constructed and the type of crowd it will attract will have varied expectations. E.g. whether its in the suburbs or south Mumbai

2. Income group and family size: Depending on the budget of the customer, a particular income group people will be given specific type of amenities. In a country like India, every product is formed after taking into consideration the family size. E.g. carsOccupation: There are colonies and societies set up for people from the same occupation also employed by the same company e.g. Indian oil nagar at Andheri (west) and Railway quarters for the railway-employed people.

1. Religion, races and social class: There are societies for people from a particular caste e.g. Parsi colony at andheri (west)

Service encounter:

The total number of interactions between the service provider and the customer is known as the service encounter. These interactions are called as the moments of truth.

Construction is a secondary service sector unit but is gaining much importance now. In this way, people (customer) coming directly in contact with service provider are very low.

The moments of truth here are during:

1. When the estate agent, who acts as a middleman, fixes a meeting between the service provider (builder) and the customer (buyer). This is the first meeting/ interaction where negotiation takes place.
2. The final meeting when the deal is finalized between the builder and the buyer to fulfill all the formalities.

This falls under low direct contact service.

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Tags: 7 ps, Construction, Industry, Marketing, Marketing mix, People, Physical Evidence, Place, Price, Process, Product, Promotion