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Marketing for Construction - Essay Example

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A1a. Identify the principal ways in which the marketing approaches and activities of construction and construction-related companies overall are comparable to those of fast moving consumer goods (FMCG) companies. Where and how do they differ from FMCG
Ans: Generating new business, approaching newer markets and gaining more customers happens to be one of the key motives of being into business…
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Marketing for Construction
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Download file to see previous pages Marketing decision variables play a central role in the retailing company's overall strategy. There are a range of priorities for the businesses which need to prioritised according to the business philosophy of the business. In fact, market segmentation and opportunity prioritization go hand in hand.
Construction related products like houses cannot be replaced as frequently as FMCG goods. Therefore, the company in FMCG sector requires to be regularly in touch with the customers and take care of their future needs as well.
While in FMCG the packaging of the products holds a significant value proposition, in construction business, packaging doesn't hold much significance. Instead, the quality of the construction material is more crucial for the customer
In the FMCG sector, in order to bring about a difference in product, the research and development activities are always on the lookout for a product or system, which can deliver better value for money. But the construction sector being capital intensive doesn't require such frequent upgrades. What needs to be ensured is that the building material being supplied happens to be of the best quality.
A1b. What do you believe are the main reasons for the differences that you identified in
Ans: The main reasons for the difference in marketing approach are;
i. The nature of product: While a majority of the products from FMCG sector are meant to be discarded after using it for a while, the product from construction sector last really long.
ii. Consumption pattern: While making use of a product from FMCG, the consumer realises the time spent with the product, value delivered by the product etc. but in case of a house, if the consumer is getting good value for the money spent, then such a realisation seldom comes.
iii. There has been a marked shift in the treatment of a supply chain over the last couple of decades, especially in retail and grocery markets. It is widely accepted that the most influential members of marketing channels for FMCGs are now the retail supermarkets (Stem and El-Ansary, 1992). But there are no such outlets for the construction sector as yet.
iv. While the constructed house or property can be easily customised to suit the specific needs of the customer even after the purchase, by adding or altering the construction. But such customisation is not easily possible for FMCG products.
A1c. Identify three (3) marketing activities common to leading FMCG companies that you believe are;
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