ACH 218 Lecture 04 (Marketing In Construction) Part 2


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ACH 218 Lecture 04 (Marketing In Construction) Part 2

  1. 1. Marketing in Construction Business Identity & Image Marketing Strategies Proposals and Presentations
  2. 2. TODAY’S CLASS Lecture continued: Marketing Strategies for Construction Companies Marketing Plan, Presentations, Proposals
  3. 3. Marketing Strategies <ul><li>Marketing Plan/Program Objectives : </li></ul><ul><ul><li>Project a positive image of the company </li></ul></ul><ul><ul><ul><li>Professionalism and Integrity </li></ul></ul></ul><ul><ul><li>Encourage trust in the company’s capabilities </li></ul></ul><ul><ul><li>Define the company’s goals and objectives </li></ul></ul><ul><ul><li>Publicize the company’s desire for certain projects </li></ul></ul><ul><ul><li>Stress the contractor’s abilities </li></ul></ul><ul><ul><ul><li>Emphasize the company’s skills and specialties </li></ul></ul></ul><ul><ul><ul><li>Most qualified firm that does top quality work for a lower cost </li></ul></ul></ul>
  4. 4. “ The marketing program should convey the impression that the company will efficiently execute a construction contract with a personal touch of concern for the client’s interests” Clough and Sears; Construction Contracting , 1994
  5. 5. Marketing Strategies <ul><li>Now that the marketing plan has been implemented, a detailed plan of action must be developed: </li></ul><ul><ul><li>What is to be done </li></ul></ul><ul><ul><li>Where will be targeted </li></ul></ul><ul><ul><li>How will it take place </li></ul></ul><ul><ul><li>Who is responsible for the plan </li></ul></ul>
  6. 6. <ul><li>What must be done ; Initial studies take place: </li></ul><ul><ul><li>Evaluate company’s strengths and weaknesses </li></ul></ul><ul><ul><ul><li>This can also help in evaluating long-term and short-term goals </li></ul></ul></ul><ul><ul><li>Look at what markets should be targeted based upon type of services provided </li></ul></ul><ul><ul><ul><li>Subcontractors may target specifically general contractors </li></ul></ul></ul><ul><ul><ul><li>Depending on level of service, they can target “aftermarket” projects </li></ul></ul></ul><ul><ul><li>How other companies (and the market) perceive your construction company </li></ul></ul><ul><ul><ul><li>People may say “their project managers are easy to work with” or “they build a great building, always on time and they attempt to stay within budget.” </li></ul></ul></ul>Marketing Strategies
  7. 7. Marketing Strategies <ul><li>Where to market your plan : </li></ul><ul><ul><li>Best source for new work is from previous customers </li></ul></ul><ul><ul><ul><li>Serve the owner well, provide excellent service to them </li></ul></ul></ul><ul><ul><ul><li>They will become repeat customers </li></ul></ul></ul><ul><ul><ul><li>They will RECOMMEND you to others in the market </li></ul></ul></ul><ul><ul><li>ADVERTISE, ADVERTISE, ADVERTISE </li></ul></ul><ul><ul><ul><li>Getting the word out to the market is a good way to attract people to your service </li></ul></ul></ul><ul><ul><ul><li>It becomes an AWARENESS that you provide a construction service </li></ul></ul></ul>
  8. 8. Those who require construction services rank one thing the highest among those when selecting or reusing a contractor: TRUST
  9. 9. Marketing Strategies <ul><li>How to market your plan: </li></ul><ul><ul><li>Project Signs </li></ul></ul><ul><ul><ul><li>Place signs on your construction projects showing name and contact information </li></ul></ul></ul><ul><ul><ul><ul><li>THINK about the BLUE “Clark Construction” signs all around the Washington DC and Metro area </li></ul></ul></ul></ul><ul><ul><ul><ul><li>These signs will also accompany the project signage; not the same sign </li></ul></ul></ul></ul><ul><ul><ul><li>These are on obvious device in effective public relations </li></ul></ul></ul><ul><ul><ul><li>Their purpose is to keep the company name in front of the public </li></ul></ul></ul>
  10. 10. Marketing Strategies <ul><li>How to market your plan: </li></ul><ul><ul><li>Company Brochure/Publication </li></ul></ul><ul><ul><ul><li>Basic marketing tool to emphasize company competence, resourcefulness and creditability </li></ul></ul></ul><ul><ul><ul><li>Should include: </li></ul></ul></ul><ul><ul><ul><ul><li>Company information and history </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Type of services provided and specialty work </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Pictures of completed projects </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Personnel, equipment, office and facilities </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Testimonials from former clients and subcontractors </li></ul></ul></ul></ul><ul><ul><ul><li>Can be mailed or given out after presentation </li></ul></ul></ul>
  11. 11. Marketing Strategies <ul><li>How to market your plan: </li></ul><ul><ul><li>Advertising </li></ul></ul><ul><ul><ul><li>Place ads in trade publications and other business sources </li></ul></ul></ul><ul><ul><ul><ul><li>Blue Book of Construction </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Chamber of Commerce </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Dodge Reports </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Independent Trade Organizations and Associations </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Local ABC or AGC chapter publications </li></ul></ul></ul></ul><ul><ul><ul><li>TV and radio advertising in COSTLY and does not target the specific group you are looking for. </li></ul></ul></ul>
  12. 12. Marketing Strategies <ul><li>How to market your plan: </li></ul><ul><ul><li>Newsletters </li></ul></ul><ul><ul><ul><li>House publications that includes: </li></ul></ul></ul><ul><ul><ul><ul><li>Employee news </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Jobsite stories </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Company developments </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Project completions </li></ul></ul></ul></ul><ul><ul><ul><ul><li>New projects and endeavors </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Trade topics and market analysis </li></ul></ul></ul></ul>
  13. 13. Marketing Strategies <ul><li>How to market your plan: </li></ul><ul><ul><li>Newsletters (continued) </li></ul></ul><ul><ul><ul><li>Great marketing tool that serves two purposes </li></ul></ul></ul><ul><ul><ul><ul><li>Gets the information out about the happenings in the company </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Influences and improves the company’s general operation </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Provides a personal touch to internal relations </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Encourages team spirit and company unity </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Becomes a valuable mode of internal communication </li></ul></ul></ul></ul></ul>
  14. 14. Marketing Strategies <ul><li>How to market your plan: </li></ul><ul><ul><li>Publicity </li></ul></ul><ul><ul><ul><li>Provide noteworthy news to a local media outlet (includes TV, radio and newspaper) </li></ul></ul></ul><ul><ul><ul><ul><li>Project completions </li></ul></ul></ul></ul><ul><ul><ul><ul><li>New projects/contracts </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Company news (like expansion or hiring of a new employee) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Special events that company is participating in </li></ul></ul></ul></ul><ul><ul><ul><li>Business image can play an important role in publicity </li></ul></ul></ul><ul><ul><ul><ul><li>Distinctive hardhats, give-aways, catchy logo </li></ul></ul></ul></ul>
  15. 15. Marketing Strategies <ul><li>How to market your plan: </li></ul><ul><ul><li>Public Affairs </li></ul></ul><ul><ul><ul><li>Involvement of personnel in a variety of public activities can be a valuable avenue of marketing </li></ul></ul></ul><ul><ul><ul><ul><li>Participation in trade shows, service clubs, seminars </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Membership in active industry organizations (ABC, AGC, AIA, CMAA) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Participation in contractor sponsored events (golf outings, awards dinners, pro bono work) </li></ul></ul></ul></ul><ul><ul><ul><li>These types of activities also create a favorable company image and encourage future business contracts </li></ul></ul></ul>
  16. 16. Marketing Strategies <ul><li>Who is responsible for the plan: </li></ul><ul><ul><li>Executive Responsibility </li></ul></ul><ul><ul><ul><li>Companies can create and implement the plan in house using in-house resources and people at the executive level </li></ul></ul></ul><ul><ul><ul><li>OR </li></ul></ul></ul><ul><ul><ul><li>They can hire specialty firms to create a marketing and advertising campaign </li></ul></ul></ul><ul><ul><li>Either way, it is the duty of the people in the executive group to complete this task </li></ul></ul>
  17. 17. “ A formal marketing program is an investment to achieve long-range success. It strives to establish a positive image of the firm’s capabilities in the minds of those in a position to influence the procurement of construction services.” Clough and Sears; Construction Contracting , 1994
  18. 18. Proposals and Presentations <ul><li>There are two means to attracting and winning new contracts and clients: </li></ul><ul><ul><li>PROPOSALS </li></ul></ul><ul><ul><ul><li>Includes estimate or bid with a full marketing approach that includes all company information, financials, projects (past and current) and employee profiles </li></ul></ul></ul><ul><ul><li>PRESENTATION </li></ul></ul><ul><ul><ul><li>A prepared speech that is given to a prospective client that outlines the company as a whole with back-up written publicity </li></ul></ul></ul>
  19. 19. Proposals and Presentations <ul><li>If you need to make a proposal to a prospective contract, keep these in mind: </li></ul><ul><ul><li>Make sure the proposal looks professional </li></ul></ul><ul><ul><ul><li>Include company logo and colors </li></ul></ul></ul><ul><ul><ul><li>Submit in a binder or spiral bound book </li></ul></ul></ul><ul><ul><ul><li>No creased papers or bent brochures </li></ul></ul></ul><ul><ul><ul><li>No bad photographs of projects or personnel </li></ul></ul></ul><ul><ul><ul><li>Use easy-on-the-eye fonts and text </li></ul></ul></ul><ul><ul><ul><li>Keep it organized, use an Table of Contents </li></ul></ul></ul><ul><ul><ul><li>Make it MEMORABLE and IMPRESSIVE !! </li></ul></ul></ul>
  20. 20. Proposals and Presentations <ul><li>There will be times when you will need to present your company to a prospective client </li></ul><ul><ul><li>Prepare a presentation that outlines: </li></ul></ul><ul><ul><ul><li>Your company history and services </li></ul></ul></ul><ul><ul><ul><ul><li>Highlight the level of quality that your company can provide </li></ul></ul></ul></ul><ul><ul><ul><li>Past and current projects </li></ul></ul></ul><ul><ul><ul><ul><li>The financials of these projects give the prospects the idea of how much work your company can handle (dollar wise) </li></ul></ul></ul></ul><ul><ul><ul><li>The communication network of your employees </li></ul></ul></ul><ul><ul><ul><ul><li>Highlight how the central office supports the field offices </li></ul></ul></ul></ul><ul><ul><ul><ul><li>How well the project personnel talk to other project participants </li></ul></ul></ul></ul>
  21. 21. Proposals and Presentations <ul><li>Key rules to the presentation </li></ul><ul><ul><li>Complete a professional presentation that will leave an impression on the prospect </li></ul></ul><ul><ul><ul><li>Use Powerpoint or produce a video </li></ul></ul></ul><ul><ul><li>Answer questions honestly and with integrity </li></ul></ul><ul><ul><ul><li>Do not EMBELISH your construction services or overstate your abilities </li></ul></ul></ul>
  22. 22. Proposals and Presentations <ul><li>Key rules to the presentation </li></ul><ul><ul><li>Make your company look like a winner; speak positively always </li></ul></ul><ul><ul><li>Dress to IMPRESS </li></ul></ul><ul><ul><ul><li>Do Not dress down; DRESS for SUCCESS </li></ul></ul></ul><ul><ul><ul><li>Prospects see that you mean business when you dress for business </li></ul></ul></ul><ul><ul><ul><ul><li>Own business attire that is in style, that fits and that is comfortable </li></ul></ul></ul></ul>
  23. 23. Proposals and Presentations <ul><li>Along with this presentation, </li></ul><ul><ul><li>Provide back up written brochures and newsletters to be left behind </li></ul></ul><ul><ul><ul><li>This will allow the prospects to look over your company more thoroughly </li></ul></ul></ul><ul><ul><li>Make a follow-up call 1-2 days after the presentation </li></ul></ul><ul><ul><ul><li>Keep your presentation FRESH in their minds </li></ul></ul></ul><ul><ul><ul><li>This also sends the message that you are excited about their project, you are thinking about them </li></ul></ul></ul><ul><ul><ul><ul><li>But don’t be a PEST, too many calls is annoying </li></ul></ul></ul></ul>
  24. 24. Additional Resources: Marketing Handbook For the Design and Construction Professional by: Society for Marketing Professional Services Publisher: BNi Publications
  25. 25. Project #1 Preliminary Steps <ul><li>Full scope of project will be handed out TONIGHT </li></ul><ul><li>Partner with someone else for your group </li></ul><ul><ul><li>unless you want to be an individual (please let me know) </li></ul></ul><ul><li>Create a company </li></ul><ul><ul><li>Name the company </li></ul></ul><ul><ul><li>What type of service do you provide </li></ul></ul><ul><ul><li>What form of legal organization will you take on </li></ul></ul>
  26. 26. Project #1 NEXT CLASS <ul><li>Come to class prepared with preliminary steps completed </li></ul><ul><li>You will have the first 35 minutes of class on Monday, February 23 rd and the entire class on Wednesday, February 25th to work on your project with your partner (or by yourself) </li></ul>
  27. 27. NEXT LECTURE Policies and Procedures Manual Effective Communications and Correspondence in the Construction Company x