strategic marketing fr construction business

8/9/2019 Strategic Marketing Fr Construction Business

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Brian Jukes

Paul McDevitt


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Designers: Consultants: Contractors:

Specialists: Advisers: Subcontractors:

Suppliers


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Strategic plan

Year 1 Year 2 Year 3

Annual marketing plans


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Headlines June 2007

Housing slump continues; Halifax survey confirms 15% fall in 12 monthsfrom May 2006.

New Prime Minister Robin Cook tries to form coalition with Tory leaderOliver Letwin

ORourke buys 3 new firms of architects. Now the largest architecturalpractice in the world.

Boom time for former shipyards -60% of all construction work now pre-fabricated off site.

Competition Commission to investigate monopoly in constructionservices

Only 10 QS firms left in UK

Proposal for 3 new towers in Glasgow highest to be 350metres

Knighthood for World Cup winning manager Berti Vogt's


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Why do we plan foran uncertain future

l We cannot control the future but we must

work there!

l Its hard to think strategically into a vague

future!

l You must become masterful at something,

exploit your competitive advantage


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Doing nothing

l Competing on price

l Unreasonable client expectations on

schedule and pricel Not making the profit we deserve

l Not getting and keeping talented people

l Lack of leadership and leadership transition


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l A question of identity

l Well focused firms do betterl Focus on what you do best

l Build a market place leadership position

l Identity will act like a magnet and attractclients who need your expertise


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It is the process for moving a business from its

current competitive position to where it wants to

be

It is about planning, implementing and

controlling the organisations marketing activities.

It deals with key questions in strategic

management


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l Where are we now?

l Where do we want to be?

l How might we get there?l Which way is best?

l

How can we ensure arrival?

(Wilson, Gilligan & Pearson)


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l Setting objectives

l Market research

l Creating strategiesl Communication

l

Change managementl Marketing plans

l Implementation


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1 Corporate Objectives

2. Marketing Audit

Marketing Planning Process

3. SWOT Analysis

4. Assumptions

5. Marketing Objectives and Strategies

6. Estimate expected results

7. Identify alternative plans and mixes

8. Programmes

Feedback Loop

9. Measurement & review


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l Increase repeat business from 20% to 50%

by year 3

l Improve profitability by 50% by year 2l Create new management structure with

focus on clients by end of year 1

l Introduce a new environmental policy and

get ISO 14001 accreditation by end of year 1


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l Clear

l Time related

l Measurablel Achievable

l

Provide a clear direction for the business


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For a marketing strategy to be successful

Business leaders must provide:

l

Well-chosen identityl Consciously conceived business design

l A profit model that works


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2. Marketing Audit

3. SWOT Analysis

4. Assumptions




8. Programmes


Feedback Loop



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l There is no point deciding where you aregoing until you decide with great clarity where

you are now. Like everything else in business

its easier said than done John Harvey Jones


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l Business audit - internal

l Market analysis external

PEST

Customers existing and potential Competitors

l Evaluate and understand

l SWOT

Organisations strengths and weaknesses

Market opportunities and threats


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l What are the firms most deeply held values?

l What are its driving forces?

l How is it distinctive?l How is it expert?

l

What is its greatest value to the client?l What does it hope to accomplish in next 20

years


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l Primary

Expensive, very detailed

l Secondary Information readily available, time

l Market sectors

Segments

Micro segments

l

Incremental


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2. Marketing Audit

3. SWOT Analysis

4. Assumptions




8. Programmes


Feedback Loop



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l Developed from the corporate objectives

l Increase repeat business from 20% to50% by year 3

l Improve profitability by 50% by year 2


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l Make decisions on how to achieve objectives

from information research and audit

l Decide on clients you want repeat businessfrom

l What market sectors / segments to

concentrate on


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l Determine target markets

l Define the target markets as specifically as

possiblel Set achievable goals

l Agree on:

Project types and size

Geographic location

Target clients


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Risk & Change Product

Current New

Market

Penetration

ProductDevelopment

Market

Extension

Diversification

1 4

216

Current

Market

New

Ansoffs growth vector matrix

Ansoff (1957)

D i thi diff t


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2007 result

Doing something different

Change

Changed Resources

2004 result

Current Resources

Can the same resources deliver a different

result

Ch P th


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Change PathEnd Result

Transformation Realignment

Evolution Adaptation

Revolution Reconstruction

1 4

2

16

Incremental

Nature

Big Bang


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l Marketing plan for each target market

What does the organisation offer

What is the pricing strategy

How will the message be delivered

Who will the message be delivered to

Referrals and intermediaries


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l Resources

Money

People

Time

l PR, advertising, sponsorship

l Business development

Personal selling

Building relationships

Referrals


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l Clear coordinated message

l Many audiences

l

Integrate communications Brochure

Website

Advertising Project sheets

Letters and proposals

l Check what message is being received


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Set the scene

Well established architectural practice operating throughout Scotland

Employing 10 staff with desire to growMarket Sectors:

Education

HealthcareSome retail

Opportunistic in other markets


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Where do they want to be:

Deliver good architectural services which provide customer satisfaction.

Expand our service by securing new clients in our main market sectors. Increase the size of the practice in a controlled manner, whilst protecting

existing margins.

Create a new corporate identity which reflects our values and ambitions.


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How will they get there?

Conducted business review with managing director

Interviewed all senior staff plus others at junior levels Conducted a client survey

Undertook preliminary market research into preferred market sectors

Organised a full day workshop with the full team


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Which way is best?

Collated and analysed information

Feedback results from customer survey Developed a full marketing strategy

Created sector specific market plans

Created design brief for graphic designers and developed strategy forrebranding the business


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How can we ensure they have arrived?

Established market sector targets

Allocated a senior architect to over see and take responsibility for

implementing plans

Presented strategy to the whole team

Established marketing information system and protocols for tracking

opportunities

Introduced quarterly targets to benchmark performance

Meet with managing director and senior architects on a regular basis to

review progress and adjust future actions accordingly


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The competition never rests

strategic marketing fr construction business

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