Размещено на http://www.allbest.ru/

Marketing researches as an integral part of decision making in the construction business

Introduction

Era of globalization and time-space compression modifies the real market space into actually unlimited space and introduces intensive competition even into the areas in which it would not have been considered several decades ago.

A possible way how to deal with this new situation, especially for transforming a country, is offered by marketing. Nowadays marketing can decidedly be considered as a part of our everyday life to such an extent that even though not explicitly stated, we abide implicitly by its principles. It is not considered as a separate field of study but as a multi spectral methodological tool for managing situations in private life as well as in professional life. Despite more than half a century of the development of marketing it still remains a challenge even for private companies that are generally regarded as specialists for marketing activities.

It is the competition spreading into other sphere of human reality that has become a very important impetus for applying marketing to places. Doubtless, even places benefit from highly sophisticated marketing activities used in private sector.

New challenges brought about by place, have started marketing research integrating various marketing approaches based not only on deep knowledge of humanities, social sciences and business, but also on understanding the complexity of its product - place. Complexity of its nature is probably the reason why a wider consensus in such a fundamental question as the definition of place marketing has not been achieved. This is the field where geography can be useful because of the fact that place is both an object of research and part of manner in which such research can be carried out.

In my this thesis I am trying to cope up to find out a way which will show us how marketing can be an important role player being as the integral part of decision making, herein specially in the construction business.

1. Theoretical aspects of marketing research in the construction market

A logical beginning of problem solving is ordinarily its anamnesis and thus with place marketing the place is subject to in-depth analysis. Situation analysis should be complex and it should comprise all that is related to place.

If we look at the construction market it is itself so complicated. So some people in the marketing business with no prior knowledge of marketing think that marketing adds extra expenditures and brings back low profiled results. In recent years this has been shown by the market researchers that the old ideas and typical methods of decision making in the marketing business has brought far worse results. Today when we talk about the globalization, marketing is the most important aspect to be considered. If will be right even to say that Globalization was initiated by marketing itself.

The main thing here I must remind is that mostly people mix up Marketing Research in the construction business with Marketing in the Real state business, these two are of course close to each other but construction business is more deeper than the real state business. The main difference is that when we deal with the real state business it has less interests with construction but only checks with the architectural part of construction, because the buyer is more interested to buy a furnished and ready house or building.

Situation Analysis:

A logical beginning of problem solving is ordinarily its anamnesis and thus with place marketing the place is subject to in-depth analysis. Situation analysis should be complex and it should comprise all that is related to place. As has already been mentioned in the preceding part, reliability of the results of such an analysis is established by means of outsourcing, i.e. by external experts, most frequently private companies.

Marketing information system:

The essential points of every analysis are data and information6. Due to cyclic character of marketing management it is necessary not only to systematically collect marketing information but also to preserve, analyze and pass it onto managers or other responsible persons. The need for a marketing information system results from the necessity to provide relevant information in real time and relevant form (Janeckova, Vastikova 1999, pp. 25-38). It ought to comprise an analytical marketing system consisting of statistical procedures and models used for eliciting useful information from research data. Analytical marketing system is composed of «statistic banks» and «banks of models». Data forming the marketing system in question can be gathered from a number of sources.

Objectives and types of research

Every structure has got its form, function and aesthetics. Normally, we consider that the architects will take care of them and the structural engineers will be solely responsible for the strength and safety of the structure. However, the roles of architects and structural engineers are very much interactive and a unified approach of both will only result in an «Integrated» structure, where every material of the total structure takes part effectively for form, function, aesthetics, strength as well as safety and durability. This is possible when architects have some basic understanding of structural design and the structural engineers also have the basic knowledge of architectural requirements.

Both the engineer and the architect should realize that the skeletal structure without architecture is barren and mere architecture without the structural strength and safety is disastrous. Safety, here, includes consideration of reserve strength, limited deformation and durability. However, some basic knowledge of architectural and structural requirements would facilitate to appreciate the possibilities and limitations of exploiting the reinforced concrete material for the design of innovative structures. Before proceeding to the design, one should know the objectives of the design of concrete structures. The objectives of the design are as follows.

1.1 The structures so designed should have an acceptable probability of performing satisfactorily during their intended life

This objective does not include a guarantee that every structure must perform satisfactorily during its intended life. There are uncertainties in the design process both in the estimation of the loads likely to be applied on the structure and in the strength of the material. Moreover, full guarantee would only involve more cost. Thus, there is an acceptable probability of performance of structures as given in standard codes of practices of different countries.

The designed structure should sustain all loads and deform within limits for construction and use.

Adequate strengths and limited deformations are the two requirements of the designed structure. The structure should have sufficient strength and the deformations must be within prescribed limits due to all loads during construction.

However, sometimes structures are heavily loaded beyond control. The structural engineer is not responsible to ensure the strength and deformation within limit under such situation. The staircases in residential buildings during festival like marriage etc., roof of the structures during flood in the adjoining area or for buildings near some stadium during cricket or football matches are some of the examples when structures get overloaded. Though, the structural designer is not responsible for the strength and deformations under these situations, he, however, has to ensure that the failure of the structures should give sufficient time for the occupants to vacate. The structures, thus, should give sufficient warning to the occupants and must not fail suddenly.

The procedure of planning a marketing research

I decided to prove the importance and procedure of planning a marketing research, and for this purpose I chose the book Marketing Plans - How to prepare them and how to use them.

Professor Malcolm McDonald of Cranfield University School of Management, a world authority on marketing planning, has produced numerous publications on the marketing planning process over the last 10 years. His best selling book, Marketing Plans - How to prepare them: How to use them, now in the Fourth Edition, describes The Ten Steps of the Strategic Marketing Planning Process as follows:

The Ten Steps of The Strategic Marketing Planning Process are:

1. Mission

2. Corporate Objectives

3. Marketing Audit

4. SWOT Analysis

5. Assumptions

6. Marketing Objectives and Strategies

7. Estimate Expected Results

8. Identify Alternative Plans and Mixes

9. Budget

10. 1st Year Detailed Implementation Programme and Measurement and Review

In order to assist companies with the implementation of an effective Strategic Marketing Planning Process many of the techniques were implemented in software programmes. Several prototypes were developed at the Cranfield School of Management, which were widely tested in a variety of commercial environments over a number of years, in order to produce a complete and robust specification of the requirement.

[Marketing Research Kit for Dummies Author: Michael Hyman, PhD, Jeremy J. Sierra page 93-99]

1.2 What is EXMAR?

Product Description: EXMAR is a process, supported by a set of associated services, for developing Strategic Marketing Plans.

It assists companies by:

* Guiding them through a logical marketing planning process

* Prompting and defining key data requirements

* Displaying information graphically to aid understanding of the business

* Providing advice at key stages

* Allowing `what-if' analyses

Benefits of EXMAR:

The competitive differentiation derived from EXMAR has been the subject of extensive research by Cranfield School of Management and can be summarised as follows:

* Provides a planning framework which ensures consistency across divisions and each division covers all the key aspects of the planning process

* Takes the `number crunching' out of marketing analysis

* Gives new insights into the markets particularly through the market segmentation techniques

* Gives powerful graphical display which makes large volumes of data understandable

* Enables easy `what-if' iterations as strategy options are explored

* Facilitates team work and multidisciplinary involvement in the marketing planning process

* Improves marketing skills within the company

* Focuses planning on the customer

* Gives a clear vision of markets and the company's position in them

* Adds value to marketing database investment.

Market Segmentation

Having identified the key junctions on the market map, these are analysed to arrive at a segmentation structure. This is achieved by answering the following questions:

1. Who buys?

Here the output of the market map is captured by identifying and defining the different types of decision makers, such as large corporate, small independents, individuals and so on, along with the revenue associated with their decisions.

2. What is bought, where? when? how?

The objective of this step is to clearly identify the Key Discriminating Features (KDFs) used by the decision-makers to choose between one offer and another. In an airline example this could involve class of travel, fare type, additional services (chauffeur drive, for example), schedule, airport, loyalty programmes, agency, direct and so on.

3. Who buys what?

The different types of decision makers identified earlier in the process are then broken down into a series of micro-segments to reflect the different `purchase bundles' they put together.

4. Why do they buy?

As segmentation is about splitting customers, or potential customers, within a market into different groups, or segments, within which customers have the same, or similar requirements, understanding the real needs customers are trying to satisfy by the purchase bundle they put together is a crucial step. This information is converted into Critical Purchase Influences (CPIs).

For example, some segments will be influenced by service and convenience, others by price and so on.

It should also be noted that CPIs might relate to how the micro-segment wishes to be served. For example some large customers may wish to be served by a single point of contact for all their needs, in which case they would be reached by the channel serving those needs; for other micro segments the Internet may represent the best way to serve the customer.

2. Marketing planning

2.1 Contents of a strategic marketing plan

Following the analysis phase, EXMAR can automatically produce a Strategic Marketing Plan document. By default, the contents of the Strategic Marketing Plan report follow the format prescribed by Professor Malcolm McDonald of the Cranfield University School of Management.

Mission Statement:

This clearly sets out the reason for the existence of the Strategic Business Unit (SBU) and should briefly state:

* Role or contribution of the unit

* Definition of the business

* Distinctive competence

* Indications for future direction

Financial Summary of Strategic Plan:

Its purpose is to summarise the financial implications over the planning period. For example: «This three-year business plan shows an increase in revenue from Ј85m to Ј302m and an increase in contribution from Ј37m to Ј163 m.»

Market Overview

The Market Overview considers the following:

* Market trends

* Key Market Segments

* Gap Analysis

2.2 SWOT (Streangth, Weakness, Opportunities and Threat) Analysis

The SWOT Analysis makes use of the Critical Success Factor (CSF) technique. This section takes into account how the following changes will affect business in the planning period:

* Technology

* International trade

* General Economy

* Socio-political factors

* Demographics

* Market Factors

* Competition.

Overall Assumptions:

The assumptions need to be:

* Explicit

* Few in number

* Agreed by key managers

* Related to issues in the SWOT Analysis.

Aims and objectives of the planning:

When preparing a strategy for success, a business needs to be clear about what it wants to achieve. It needs to know how it is going to turn its desires into reality in the face of intense competition. Setting clear and specific aims and objectives is vital for a business to compete. However, a business must also be aware of why it is different to others in the same market.

We shall need to look in depth of these aspects while determining aims and objectives of a market planning.:

Branding:

One of the most powerful tools that organisations use is branding. A brand is a name, design, symbol or major feature that helps to identify one or more products from a business or organisation. The reason that branding is powerful is that the moment a consumer recognises a brand, the brand itself instantly provides a lot of information to that consumer. This helps them to make quicker and better decisions about what products or services to buy.

Product positioning:

Managing a brand is part of a process called product positioning. The positioning of a product is a process where the various attributes and qualities of a brand are emphasised to consumers.

When consumers see the brand, they distinguish the brand from other products and brands because of these attributes and qualities.

Tools and methods of marketing planning:

First, here's something that is fast becoming the most fundamental aspects of marketing to get right, especially if you want to build a truly sustainable high quality organisation (of any size) in the modern age:

Ensure the ethics and philosophy of your organisation are good and sound. This might seem a bit tangential to marketing and business, and rather difficult to measure.

Price is no longer the king, if it ever was. Value no longer rules, if ever it did. Quality of service and product is not the deciding factor.

Today what truly matters is ethical and philosophical quality - from the bottom to the top - in every respect - across every dimension of the organisation.

Modern consumers, business buyers, staff and suppliers too, are today more interested than ever before incorporate integrity, which is defined by the organisation's ethics and philosophy.

Good sound ethics and philosophy enable and encourage people to make 'right and good' decisions, and to do right and good things. It's about humanity and morality; care and compassion; being good and fair. Profit is okay, but not greed; reward is fine, but not avarice; trade is obviously essential, but exploitation is not.

Psychological Contract theory: It is helpful towards understanding and developing fair balanced philosophy, especially in meeting the complex needs of staff, customers and the organization. People naturally identify and align with these philosophical values. The best staff, suppliers, and customers naturally gravitate towards organisations with strong philosophical qualities.

Putting a good clear ethical philosophy in place, and communicating it wide and far lets people know that your organisation always strives to do the the right thing. It's powerful because it appeals to people's deepest feelings. Corporate integrity, based on right and good ethical philosophy, transcends all else. And so, strong ethics and good philosophy are the fundamentals on which all good organisations and businesses are now built.

People might not ask or talk about this much: the terminology is after all not fashionable 'marketing-speak', nor does it correlate obviously to financial performance, but be assured; everyone is becoming more aware of the deeper responsibilities of corporations and businesses in relation to humanity, and morality, the natural world, the weak and the poor, and the future of the planet.

3. Features of research in construction

marketing research market strategic

3.1 Features of Marketing Research

1) Systematic and continuous process: - MR is a continuous process. One type of research is not adequate to resolve all marketing problem. Similarly, new research projects will have to be undertaken to solve new marketing problem and challenges. A marketing company faces new marketing problem from time to time and for facing them marketing research activities need to be conducted on regular basis. A marketing company has to conduct MR regularly for its survival and growth in the present dynamic marketing environment.

2) Wide in scope application: - MR is wide in scope as it deals with all aspects of marketing of goods and services. Introduction of new products, identification of potential markets, selection of appropriate selling techniques, study of market competition, introduction of suitable advertising strategy and sales promotion measures are some areas covered by MR.

3) Emphasises on accurate data collection and critical analysis: - In MR, required data should be collected objectively and accurately. The data collected must be reliable. It should be analysed in a systematic manner. This will provide comprehensive picture of the situation and possible solution.

4) Offers benefits to sponsoring company and consumer: - MR is useful to the sponsoring company. It raises the turnover and profit of the company. It also raises the competitive capacity and creates goodwill in the market. It enables a company to introduce consumer - oriented marketing policies. Consumer also gets agreeable goods and more satisfaction due to MR activities.

5) Commercial equivalent of military intelligence: - MR is the commercial intelligence activity. It is similar to military intelligence where systematic study is made before taking any military action MR acts as the intelligence tool of marketing management.

6) Tool for managerial decisions: - MR acts as a tool in the hands of management for identifying and analysing marketing problem and finding out solution to them. It is and aid to decision-making. It suggests possible solution for the consideration and selection by managers. MR is an aid to judgement and never a substitute for it.

7) Applied type of research: - MR is applied knowledge. It is also called `decisional' research as it provides specific alternative solution to deal with a specific marketing problem. It studies specific marketing problem and suggests alternative solution and possible.

8) Reduces the gap between the producers and consumer: - MR is an essential supplement of modern competitive marketing. It is useful for understanding the needs and expectations of consumers. It reduces the gap between producers and consumers and adjusts the marketing activities to suit the needs of consumer.

9) Not an exact science: - MR is both science and an art. It collects information and studies marketing problem in a scientific manner. The information collected is also applied to real life problem. However, MR is not an exact science. It only suggests possible solution and not the exact solution to marketing manager for consideration and selection. At present, MR is treated as a professional activity. We have professional research agencies dealing with the marketing problem of their clients on commission basis.

10) Use of different methods: - MR can be conducted by using different methods. Data can be collected through survey or by other methods like observation method or experimentation method. Even computers and internet are used for data collection. The researcher has to decide the method suitable for his research project.

11) Dynamic character: - MR is dynamic in nature. Its scope is fast expanding along with the new developments in the field of marketing. In addition, development in other subjects such as economics, statistics, computer science, sociology, psychology, cultural anthropology and behavioural sciences also bring corresponding changes in the field of MR.

This suggests that MR is a dynamic and progressive subject.

12) Closely connected with marketing information system: - both the concepts are interrelated. In fact, MR is one components of MIS. Both are useful for solving marketing problem and for accurate and quick decision-making in the field of marketing.

Determination of the construction market:

If we look at the post soviet construction market, as far as we are a part of it, living and working here and planning with modern tools to serve our construction market.

List of Books

1. The Engineering Index Том 93, Part 11 p. 85

2. Marketing Research Kit for Dummies Author: Michael Hyman, PhD, Jeremy J. Sierra page 93-99

3. Fair play: Solutions, with New buildings, Edition 1, p. 100-105

4. Construction Supply Chain Economics Author: Kerry London p. 33-35

5. Competitors: outwitting, outmaneuvering, and outperforming Author: Liam Fahey p. 118-126

6. Case Study Methodology in Business Research Author: Jan Dul, Tony Hak p. 36-53

7. Market segmentation: a step-by-step guide to profitable new business Author: Michael J. Croft p. 189

8. Market segmentation: conceptual and methodological foundations Authors: Michel Wedel, Wagner and Antonio Kamakura p. 85-98

9. Europe Real Estate Year book 2010Author: M. Dijkman p. 518

10. Construction scheduling: preparation, liability, and claims Author: Jon M. Wickwire

11. Research Methodology Author: Rajendar Kumar p. 18-19

12. Design theory and methodology, DTM '92: presented at the 1992 ASME design technical conferences-4th International Conference on Design Theory and Methodology, Scottsdale, Arizona, September 13-16, 1992

13. Data Mining and Data Based Direct Marketing Activities Authors: T. Brьggemann, P. Hedstrцm, M. Josefsson p. 332-339

14. Marketing: concepts and strategies Authors: William M. Pride, O. and C. Ferrell p. 167-172

15. Data analysis, classification and the forward search: proceedings of the Data analysis. Authors: John F. Nathan and Gerry J. Kotlingi p. 237-49

Размещено на Allbest.ru