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CONSTRUCTION PROFESSIONALS’ PERCEPTION OF THE
MARKETING STRATEGIES EMPLOYED BY CONSTRUCTION
FIRMS IN ABUJA, NIGERIA
Emmanuel Chidiebere EZE1, Onyinye SOFOLAHAN 2, Onyealilam Peter
ONYEAGAM3 and Usman MUHAMMED 4
1Department of Quantity Surveying, Federal University of Technology, Minna,
Niger State, Nigeria. Email:emmanueleze001@gmail.com
2Department of Quantity Surveying, Lagos State Polytechnic, Lagos State, Nigeria,
Email: onyxnwoko@gmail.com
3Department of Quantity Surveying, Federal Polytechnic Nasarawa,
Nasarawa State, Nigeria. Email: ponyeagam@yahoo.com
4Department of Quantity Surveying, Federal University of Technology, Minna,
Niger State, Nigeria. Email: ussymamin4real@yahoo.com
ABSTRACT
Effective marketing plays an important role in the overall success of companies and
it is critical for any business to grow in the competitive environment. However,
construction firms are unyielding to the complete adoption of comprehensive and
effective marketing strategies to improve their performance and position in
competition within the construction industry. This study assessed the perception of
construction professionals regarding the marketing strategies adopted by construction
firms in Abuja, Nigeria. The study adopted a questionnaire survey approach and a
random sampling method was used to administer the questionnaire to 415
construction professionals. The response rate was 45.3%, and frequency, percentile,
relative importance index and the Kruskal-Wallis test were used to analyze the data
collected. The study revealed that maintaining a strong pool of professionals to boost
the company image, developing non-economic or social bonds with clients, including
‘political’ offers in bids, having a project signboard, developing a marketable name
as well as equipment branding, claim aversion, and free design contribution are the
specific marketing strategies employed by construction firms. The major marketing
strategies for improving the performance of construction firms are third-party-based
strategies, project performance-based strategies, and client-based strategies. The
study concluded that there is no significant statistical difference in the perception of
respondents regarding the marketing strategies used in their firms. The study
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recommended that construction firms should ensure that there is continuous
management support targeted towards improving their overall marketing strategies.
Keywords: Construction firms, Construction industry, Construction professionals,
Marketing strategies, Nigeria
1. INTRODUCTION
The construction industry is a crucial part of any economy because of its size
and the potential role it can play in the development efforts of the economy (Nisa et
al., 2006; Nnadi et al. 2016). The construction industry is the driving force behind
the socio-economic development of any nation; and the industry takes a huge amount
of money, time and energy (Saidu & Shakantu, 2016a; Saidu & Shakantu, 2016b;
Nnadi et al. 2016; Meshksar, 2012). Its contribution to the national economy is well
represented through the construction value addition, investment, employment, trade
balance and sectorial linkages; as such, its importance is recognised in all
communities (Meshksar, 2012; Nnadi et al., 2016). Construction firms which operate
in the construction industry must strive to survive as they cannot exist without
competition. According to Dulaimi and Shan (2002), the construction industry in
most countries exists in a competitive business environment driven by the lowest
cost mentality. The dynamics of demand and supply influence and shape the
activities and performance of every construction firm. Construction projects are
usually awarded based on the lowest tender sum, as well as the commercial and
technical capabilities of the construction firm. Therefore construction projects are
procured through the competitive bidding process.
Marketing is practised all over the world and it is referred to as the activity of
getting the company to sell goods or services to customers (Ojo, 2011). Ogbu (2017)
defined marketing as "…the activity, set of institutions, and processes for creating,
communicating, delivering, and exchanging offerings that have value for customers,
clients, partners, and society at large". The importance of marketing for the survival
of companies cannot be ignored (Arslan et al., 2009; Nnadi et al. 2016). Therefore
effective marketing plays an important role in the overall success of companies and it
is critical for any business to grow in the competitive environment (Polat & Donmez,
2010). Thus the main objective of marketing construction firms is to create a
positioning strategy within the entire construction market.
It has been observed that marketing has attracted only scant attention among
construction contractors and professionals (Nnadi et al., 2016). In the same vein, the
Nigerian construction firms have been generally known to be lagging in the adoption
of marketing strategies to improve their performance, despite increasing pressure
from competitors (Ogbu, 2017). Furthermore, marketing has not been completely
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embraced in the construction industry because the concept is yet to be totally
understood by construction practitioners (Ogbu, 2015; Mahmood et al., 2017). This
has impacted on their publicity and their ability to secure and maintain construction
projects. As a result, construction firms have been criticized for their unwillingness
to employ effective and efficient marketing strategies to boost opportunities to secure
and maintain construction projects. Mahmood et al. (2017) are of the opinion that the
neglect of marketing in construction is due to the difficulty in applying conventional
marketing in the industry, accompanied by inadequate research on the nature of
marketing, marketing theories and strategies tailored to construction work.
Studies exist on the concept of marketing in the construction industry. However,
many studies show that construction firms are slow in adapting marketing principles
and marketing is not integrated into the structure of the firms (Winter & Peerce, 2000;
Bennett, 2005; Adegbile, 2008). Alwashi et al. (2017) assessed the use of marketing
strategies in the Nigerian construction industry. The study was aimed at identifying
the impact of marketing management on the construction industry in Nigeria with a
view to ensuring an effective marketing system in the industry. The study that
examines the views of construction professionals found out that maintaining a strong
pool of professionals to boost a company image was the most widely used among the
marketing management strategies.
Ogbu (2017) studied marketing strategies and the performance of indigenous
construction firms in Nigeria. The study focused on the influence of marketing
strategies on the performance levels of indigenous construction firms (ICFs) in
South-South Nigeria. The study utilized data collected from CEOs and managers of
ICFs and found that maintaining a pool of professionals to boost company image was
most frequently employed among the identified marketing strategies, and that the
groups of marketing strategies that influence the ICF level of performance are
third-party-based, client-based, firm-based, and publicity-based strategies. Ogbu
(2017) also reported that a significant difference exists in the frequency of use of the
marketing strategies by the different firm groups.
Ganah et al. (2008) investigated marketing strategies in the construction industry
and the challenges facing small and medium enterprises in the development of these
strategies. The study found that there is a lack of understanding of construction
marketing and strategies within small and medium enterprises in the construction
industry. The study also found that a strategy for marketing is non-existent in most
instances (Ashworth & Hogg, 2007). Other studies have focused on marketing
quantity surveyors’ professional services or other professions in the built
environment. Nnadi et al. (2016) evaluated the marketing practice of quantity
surveying in South-Eastern Nigeria. Ogbu (2015) carried out a study on the
application of marketing strategies in Nigerian quantity surveying firms.
Therefore, evidence in literature has shown that studies comparing the views of
construction professionals regarding marketing strategies adopted by construction
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firms, especially in the geographical area of this study, are non-existent. Thus, this
study assessed the perception of construction professionals regarding the marketing
strategies adopted by construction firms in Nigeria with a view to recommending
strategies that will improve their publicity and ensure that they remain in the
competition. The specific objectives of the study are to assess the marketing
strategies employed by construction firms, and to identify the major marketing
strategies employed by construction firms. The hypothesis that guided this study
states that there is no statistically significant difference in the perception of
construction professionals regarding the marketing strategies adopted by construction
firms.
The outcome of this study would add to the body of knowledge available on
construction marketing and management literature. The outcome of this will also
assist construction managers in making decisions regarding the adoption of the most
value-adding and suitable marketing strategy in line with a company’s culture, and
with respect to prevailing economic conditions. The twenty-first century construction
companies and firms need to implement and maintain attainable marketing strategies
if they must survive competition within the construction industry that is already
flooded with foreign construction companies.
2. MARKETING IN THE CONSTRUCTION INDUSTRY
Marketing is critical to the survival of businesses, firms, and individuals as it
offers opportunities for employment (Olaniyi et al., 2011) and impacts on the
standard of living of individuals. It has been accepted that marketing ability
influences financial success (Ode, 2007; Kotler & Keller, 2009), thus financial flows
and business success are dependent on the choice and implementation of suitable
marketing strategies. According to Ojo (2011), marketing is important for the
existence and survival of companies. Therefore, the overall success of companies and
the ability of any business to grow in the competitive environment are dependent on
the effective marketing of firms' services (Polat & Donmez, 2010). Marketing,
according to Olaniyi (2014), is the function that links the consumer, customer, and
public in identifying and defining marketing opportunities and problems; generating,
refining, and evaluating marketing actions; monitoring marketing performance, and
improving an understanding of marketing as a process.
The construction industry, like any other sector of the economy, faces keen
competition for survival and sustenance. Despite the existence of many studies on the
concept of marketing in the construction industry (Ojo, 2011), the concept has not
been fully embraced by construction firms. Ojo (2011) concurs that many
construction professionals face difficulties in selling their services owing to failure to
embrace the marketing concept. For instance, Morgan (1990) confirmed that only a
few engineering service consulting firms had a marketing department.
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Similarly, in his study of marketing practices among Nigerian construction firms
Adegbile (2008) concluded that there was little or no marketing in the Nigerian
construction industry. The majority of the contractors, according to Dikmen et al.
(2005), do not regard the marketing capability as a strategic success factor. Also,
Ganah et al. (2008) asserted that the majority of construction firms are yet to adopt
marketing as the cornerstone of strategy and management. This was supported by
Jaafar et al. (2008), whose report showed that in Malaysia many civil and structural
consultancy firms had neither marketing departments nor employees specifically
responsible for marketing.
According to Polat and Donmez (2010), Turkish contractors made use of
marketing management functions to some extent. This may be attributed to the lack
of understanding of marketing principles within small to medium enterprises (Ganah
et al., 2008). It is important to state that small and medium construction firms
dominate the construction space of the construction sectors of many countries.
Company image and customer satisfaction are vital factors for successful marketing
in the construction business (Arslan et al., 2009). Therefore, Adegbile (2008)
suggested the need for awareness of the importance of marketing as a tool to
withstand the fierce competition in the Nigerian construction business environment.
Also, Yisa et al. (1996) proposed a framework for improving the effectiveness of the
marketing function within construction enterprises. Yisa et al. (1996) suggested that a
practical approach for formulating, implementing and evaluating corporate marketing
programmes could be represented in the framework.
2.1 Marketing strategies in construction
A strategy is a general plan or set of plans designed to achieve a targeted goal
over a long period of time (Olaniyi, 2014). According to Akpan (2003), at the most
macro level, marketing strategies focus on manipulations of the marketing mix
variables; they involve picking a target market and selecting a marketing mix to
serve that market. According to Ojo (2011), a marketing strategy is a managerial
process of analysing market opportunities and choosing a marketing position that
serves the company’s purpose and objectives. It is the company's response to the
external environment and consists of a set of principles by means of which a
company hopes to achieve its long-term customer and profit objectives in a
competitive environment. Marketing strategies are the means by which professional
firms sell their services to their intending clients. They play an important role in the
success of a construction company in this highly competitive industry (Ojo, 2011).
Lee et al. (2008) identified the marketing strategies of Korea’s housing
construction firms and classified them as green, well-being and ubiquitous. Zeithaml
et al. (1985) suggested various strategies for problems stemming from unique service
features. These include creating a strong organisation image, using cost accounting to
help set prices, engaging in post-purchase communication, managing consumers, and
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using multisite locations, among others. Alwashi et al. (2017) identified 28 marketing
strategies adopted by construction firms, and grouped them into six major headings,
namely the location of the firm, professional client relationship, professional contract,
price and other user strategies, business promotion and education strategy, and
research as a marketing strategy. Alwashi et al. (2017) found that maintaining a
strong pool of professionals to boost a company's image, packaging a company's
documents to look attractive, outsourcing supervision to more competent
professionals, writing of proposals, and maintaining a cordial relationship between
client and other professionals as well as staff competence, site architecture,
competition, and navigation audit were the highest-ranking marketing strategies used
by construction professionals. Alwashi et al. (2017) concluded that offering seasonal
gifts to the client, the use of Internet-based advertising, being listed in the business
directory, and offering branded notepads, pens, and other items to the client are least
practised strategies in the construction industry. However, irrespective of the level of
adoption by professionals, they should be encouraged to improve performance.
Ogbu (2017) identified 43 marketing strategies used by indigenous construction
firms and grouped them into five major strategies. They are third-party-based
strategies, client-based strategies, publicity-based strategies, firm-based strategies,
and project performance-based strategies. Ogbu (2017) reported that maintaining a
strong pool of professionals to boost the company image, the use of project
signboards and the development of non-economic or social bonds are the three most
frequently used marketing strategies; the least used marketing strategy was the
location of the firm close to the client. Also, the groups of marketing strategies that
influence indigenous construction firms’ level of performance are third-party-based,
client-based, firm-based, and publicity-based strategies. This study adopted the
marketing strategies identified from Ogbu (2017) and Alwasi et al. (2017).
Marketing strategies are centred on a competitive marketing strategy, the internal
and external business environment in which the firm operates, and a relationship
marketing strategy. Available studies on marketing strategies in construction mostly
focus on firms and professionals. While there are very few existing studies that
compare the views of construction professionals on marketing strategies in Nigeria,
there are no studies that have assessed the perception of construction professionals of
marketing strategies used in the construction industry within the study area of this
study. This study critically examined the relative views of construction professionals
of the marketing strategies adopted by the construction firms in which they found
themselves.
3. RESEARCH METHODOLOGY
The study covered the assessment of the perception of construction professionals
regarding the marketing strategies adopted by construction firms in Abuja, Nigeria.
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Abuja was chosen for the study based on the premise that Abuja is the administrative
headquarters of the country with many construction firms having their head office or
branches in the country's capital (Aje et al., 2015). In addition, there are many
construction projects being executed on a daily basis. Furthermore, most of the
professional bodies related to construction works have either their head office or
liaison office in Abuja. According to Saidu and Shakantu (2016c), Abuja is one of the
metropolitan cities in Nigeria with the highest population of construction
professionals practising in either constructing or consulting firms within the built
environment.
A quantitative research approach was adopted for the study, and structured
questionnaires were used to collect data on the perception of the various
professionals regarding the marketing strategies adopted by construction firms in
Nigeria. The questionnaires were administered by the researchers and through the
help of trained field assistants who were properly briefed about the research topic
and given the necessary information on how to administer the questionnaire. The
questionnaire was designed in two sections using information derived from the
review of the related literature. The section labelled ‘A’ covered the general
information of the target respondents. Information gathered from the section
labelled ‘A’ served as a quality check and verification of the data from the other part
of the questionnaire. The section labelled ‘B’ covered the views of the professionals
on the marketing strategies adopted by their firms. A total of 43 marketing strategies
identified from Ogbu (2015), Ogbu (2017) and Alwashi et al. (2017) were adopted
for this study. Respondents were requested to rate these strategies base on the level of
efficacy in improving the public image of the company and on their ability to secure
new jobs and maintain relationships with parties on existing projects. This was based
on a five-point Likert scale, where 1 = very ineffective, 2 = ineffective, 3 =
average, 4 = effective, 5 = very effective.
A pilot survey was adopted to test the suitability and appropriateness of the
questionnaire in meeting the study objectives as suggested by Fellows and Liu
(2008). Twenty (20) of the draft questionnaires were randomly distributed to the
selected construction professionals and academics, and the final draft was adjusted
based on their feedback. A total of 415 questionnaires were randomly distributed to
construction professionals within the study area. A total of 188 of the questionnaires
were retrieved out of the 415 distributed, representing a 45.3% response rate, and
were deemed fit for the analysis. This response rate is above the usual response rate
of 20-30% for questionnaire surveys in construction management studies as
suggested by Akintoye (2000). Furthermore, the reliability and internal consistency
of the questionnaire was carried out using Cronbach's alpha test. This test measured
the reliability of each of the fields of the questionnaire and the mean of all the fields
of the same questionnaire. The acceptable value range of Cronbach’s alpha is
between 0.0 and +1.0 and the more the value tends toward 1, the higher the degree of
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internal consistency is. The Cronbach’s alpha value for the variables is 0.825, thereby
implying that the questionnaire is credible and has a high degree of reliability.
According to Moser and Kalton (1999), a research instrument is perfect if the value
of the Cronbach’s alpha tends towards 1.0.
Frequencies, percentages, and the relative importance index (RII) were used to
analyse the collected data. Frequencies and percentages were used to analyse the
general information of the respondents; RII was used to assess the views of the
respondents regarding the marketing strategies adopted by their firms, and the
Kruskal-Wallis test was performed to determine the relationship in the view of the
respondents regarding the variables, and to test the hypothesis. The rule for accepting
or rejecting the hypothesis is accept the hypothesis if the P-value ≥0.05, and reject
the hypothesis if the P-value <0.05. These analyses were carried out using the
Statistical Package for Social Science (SPSS) Version 20.
4. RESULTS AND DISCUSSION
The analysis of the respondents’ characteristics showed that in terms of their
designation in their organization project 37.23% are project managers, 20.74%, and
9.57% are contract managers or administrators and quality and safety managers
respectively, 2.13% are project directors and 30.32% of them are project team
members. Moreover, 48.40% of the respondents have between one and ten years of
experience, 39.89% have 11-20 years, 9.04% and 2.66% of them have 21-30 years
and 31-40 years’ experience respectively, while none has more than 40 years of
experience. Most of the participants hold a bachelor of science or a bachelor of
technology degree (46.28%). This was followed by those with a higher national
diploma (29.79%) and then a master of science or a master of technology degree
(21.81%), and lastly, doctorates number 2.13%. This implies that the respondents are
experienced and academically qualified to give reliable information in a
construction-based study.
In addition, according to the respondents, 76.6% are always involved in
marketing the services of their firm, 23.94% of them sometimes do marketing, and
3.72% of them have never been involved in marketing. This implies that the
respondents are aware of the role marketing plays in construction firms. The analysis
also revealed that 32.45% (61) of the respondents are registered quantity surveyors
with the Nigerian Institute of Quantity Surveyors (NIQS). A total of 27.13% (51) are
engineers (civil and services) registered with the Nigerian Society of Engineers
(NSE), and 23.40% (44) are architects registered with the Nigerian Institute of
Architects (NIA). In addition, 17.02% (32) of the respondents are builders registered
with the Nigerian Institute of Building (NIOB). The rationale behind the high
proportion of quantity surveyors is that they have been enlightened on matters
associated with marketing their professional services and the services of their
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employers which are most times construction and consulting firms. Evidence of the
professional membership of the respondents shows that they are professionally
qualified to give expert opinions on the subject of this study.
Table 1 shows the result of the analysis of the construction professionals'
perception of the marketing strategies practised in their firms. From Table 1 and
under the third-party-based strategies, the builders and engineers are of the opinion
that maintaining a strong pool of professionals to boost the company image (RII =
0.975) and (RII = 0.969) and conflict management (RII = 0.913) and (RII = 0.953)
respectively were best among the sub-group. The quantity surveyors are of the
opinion that the most important marketing strategies are conflict management (RII =
0.938) and maintaining a strong pool of professionals to boost the company image
(RII = 0.836), whereas the architects are of the opinion that maintaining a strong pool
of professionals to boost company image (RII = 0.959) and outsourcing project
supervision to more well-known external personnel (RII = 0.936) are the most
effective strategies among the sub-group.
Overall, the most important and effective marketing strategies adopted by
construction firms are maintaining a strong pool of professionals to boost the
company image and conflict management. This finding is in agreement with the
findings of Ojo (2011), Alwashi et al. (2017) and Ogbu (2017). Ogbu (2017)
reported that highest among the most frequently used marketing strategies by
indigenous construction firms is the ability of the firms to maintain a strong pool of
professionals to boost the company image (with a mean = 3.79) and Alwashi et al.
(2017) ranked maintaining a strong pool of professionals to boost the company
image first with RII = 0.93. This strategy is therefore critical to the survival and
existence of any construction firm.
Similarly, under the client-based strategies, the builders rated ‘more
communication with clients' first, the quantity surveyors ranked it third, the
architects ranked it second, and the engineers are of the opinion that it should be
ranked fifth. There seems to be agreement among the respondents regarding
‘inclusion of "political" offers in bids'. This strategy was ranked second by the
builders, quantity surveyors, and engineers, but was ranked third by the architects.
Also, ‘development of non-economic or social bonds with clients' was ranked first by
the quantity surveyors, architects and engineers, but ranked third by the builders.
Also, the builders, quantity surveyors and architects ranked ‘project co-development
strategy / public-private partnership’ fourth, but this was ranked third by the
engineers. ‘Ensuring client feedback' was ranked fifth by the builders, quantity
surveyors and architects, but was ranked fourth by the engineers. Overall, the
development of non-economic or social bonds with clients, inclusion of ‘political’
offers in bids, more communication with clients, project co-development strategy or
public-private partnership, and ensuring client feedback were ranked first, second,
third , fourth and fifth respectively. This finding corroborates the reports of Ogbu
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(2017), Alwashi et al. (2017) and Ojo (2011). Ogbu (2017) reported that the
development of non-economic or social bonds with clients (mean = 3.63), project
co-development strategy or public-private partnerships (mean = 3.62) and the
inclusion of ‘political’ offers in bids (mean = 3.62) are the most frequently used
marketing strategies under the client-based strategies. According to Ogbu (2017),
client-based marketing strategies are mainly focused on directly improving firm
performance. The establishment of social bonds with potential and existing clients,
more communication and a feedback system will enhance client trust and could lead
to repeat business.
For the publicity-based strategies, a project signboard was ranked first by all the
professionals. Equipment branding was ranked second by the builders, architects, and
engineers, but was ranked fourth by the quantity surveyors. Packaging company
documents to look attractive was ranked third by all the professionals. Writing of
proposals was ranked fourth by the builders and architects, but was ranked fifth by
the quantity surveyors and engineers. The company website was ranked fifth by the
builders and architects but was ranked second by the quantity surveyors and fourth
by the engineers. Overall, project signboards, equipment branding, packaging
company documents to look attractive, company websites, and writing of proposals
were ranked first, second, third, fourth and fifth respectively. This finding supports
the reports of Ogbu (2017) and Alwashi et al. (2017). Ogbu (2017) reported that
project signboards (mean = 3.76) and packaging company documents to look
attractive (mean = 3.46) are the most frequently used among the publicity-based
strategies. Alwashi et al. (2017) report ranked packaging companies' document to
look attractive in the second position with (RII = 0.91) and written proposals were
ranked fifth (RII = 0.84). Publicity plays a major role in improving a firm's
performance. This is because if what is being produced or the services being
rendered are not marketed, they cannot be patronized. In addition, a well-packaged
company document will always look catching and appealing. This will improve a
company’s public image.
For the firm-based strategies, the builders ranked the development of a
marketable name as first, the use of promotional products and claim aversion
occupied the second place ranking, market segmentation and product differentiation
were ranked fourth, and use of information and communication technology (ICT) in
service delivery ranked fifth. The quantity surveyors, architects and engineers ranked
claim aversion as first; the development of a marketable name was ranked second by
both the quantity surveyors and the engineers, but was ranked third by the architects.
The quantity surveyors ranked market segmentation and product differentiation third;
the use of information and communication technology (ICT) in service delivery was
ranked second by the architects, and the use of promotional products was ranked
second by the engineers. Overall, claim aversion, the development of a marketable
name, market segmentation and product differentiation, the use of promotional
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products, and the use of information and communication technology (ICT) in service
delivery were ranked first, second, third, fourth and fifth respectively. This finding
agrees with the findings by Ogbu (2017) who reported that claim aversion (mean =
3.35) and the development of a marketable name (mean = 3.34) are the most
frequently used among the firm-based strategies. Adequate control and monitoring of
projects by construction firms should be ensured to avoid unnecessary claims arising.
This will avoid claims that could even lead to legal tussles. Firms should develop a
name that could be marketed to the public and ensure that buildings are properly
finished on time, within budget, and meet the specific client requirements.
Information and communication technology (ICT) generally covers the
harnessing of electronic technology for the information needs of a business at all
levels. It refers to the automation of processes, controls, and information production
using computers, and telecommunication software (Emmanuel & Adebayo, 2011).
ICT in construction entails the use of computer systems that are capable of capturing,
organizing, storing, analysing, exchanging, transmitting, and sharing information
(Perkinson & Ahmad, 2006).
Nowadays, many ICT products are progressively being used in the marketing of
construction firms and professional services owing to the sophistication of
construction clients. For instance, the use of the Internet via a personal computer (PC)
and mobile phones, email marketing, websites, social media (Facebook, LinkedIn,
Twitter, Whatsapp, among others), and telephone marketing have changed the face of
marketing in the construction industry. The Internet serves as an important medium
for reaching a wider spectrum of individual contractors and suppliers, construction
and consultant firms and organisations. Internet marketing involves the use of the
Internet for the marketing of construction firms’ products or services, utilising either
the Internet or traditional channels (Bengtsson et al., 2007). Email marketing
involves the use of emails in marketing; it entails the sending of direct promotional
emails to secure new clients or persuade existing clients to patronise again
(Alexander, 2009).
Construction companies and construction professionals have to capitalise on the
revolution in Internet marketing through social media to market their products and
services. This has positively affected the revenue and productivity of construction
firms. Ibironke et al. (2011) observed that there is increasing awareness of the
importance of information technology in improving service delivery and productivity
among construction professionals
Under the project performance-based strategies, improvement in project
performance and free design contribution were ranked first and second respectively
by the builders. The quantity surveyors, architects and engineers ranked free design
contribution first, and improvement in project performance was ranked second by the
quantity surveyors and engineers. A free maintenance service offer was ranked
second by the architects. Overall, free design contribution and improvement in
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project performance were ranked first and second respectively. This finding is in line
with that of Ogbu (2017) who reported that free design contribution (mean = 3.52)
and improvement in project performance (mean = 3.30) are the most frequently used
among the project performance-based strategies used by indigenous contractors.
Construction firms should at no extra cost to the client do free designs as a way of
contributing to the progress of the building under construction. This will ensure
speedy construction and that the client will be relieved of the financial burden.
Table 1: Construction professionals’ perception of marketing strategies
Bldr.
Q. S
Arch.
Engr.
Overall
S/N
Factors
RII
Rk
RII
Rk
RII
Rk
RII
Rk
RII
Rk
Third Party-Based Strategies
1
Outsourcing project supervision to more well-known
external personnel
0.438
4
0.354
5
0.936
2
0.827
4
0.64
4
2
Investments in networking with other firms
0.888
3
0.718
3
0.9
3
0.929
3
0.86
3
3
Conflict management
0.913
2
0.938
1
0.895
4
0.953
2
0.92
2
4
Maintaining a strong pool of professionals to boost
company image
0.975
1
0.836
2
0.959
1
0.969
1
0.93
1
5
Corporate social responsibility/ sponsorships of
events in your area of operation
0.263
5
0.679
4
0.791
5
0.812
5
0.64
5
Client-Based Strategies
1
Financial and non-financial rewards for staff
0.838
6
0.646
7
0.664
10
0.859
6
0.75
7
2
Relational marketing
0.756
8
0.548
10
0.832
6
0.847
7
0.75
8
3
Granting of credit/flexible payment options
0.756
8
0.672
6
0.832
6
0.847
7
0.78
6
4
Offering seasonal gifts to clients
0.313
12
0.485
11
0.327
12
0.475
11
0.4
11
5
Development of non-economic or social bonds with
clients
0.944
3
0.98
1
0.991
1
0.965
1
0.97
1
6
Project co-development strategy/ public-private
partnership
0.913
4
0.925
4
0.923
4
0.937
3
0.92
4
7
Inclusion of ‘political’ offers in bids
0.975
2
0.948
2
0.932
3
0.945
2
0.95
2
8
Offering branded notepads, pens and other items to
clients
0.794
7
0.607
8
0.768
8
0.769
9
0.73
9
9
Ensuring client feedback
0.906
5
0.918
5
0.864
5
0.898
4
0.9
5
10
More communication with clients
0.988
1
0.928
3
0.936
2
0.894
5
0.94
3
11
Customisation of projects to suit clients
0.694
10
0.574
9
0.695
9
0.706
10
0.67
10
12
Location of firm closer to clients
0.338
11
0.348
12
0.35
11
0.294
12
0.33
12
Publicity-Based Strategies
1
Packaging company documents to look attractive
0.906
3
0.869
3
0.905
3
0.973
3
0.91
3
1917
2
Affinity marketing (combined marketing with firms
offering complementary projects or products)
0.438
9
0.328
10
0.477
8
0.471
9
0.43
9
3
Use of Internet-based advertisements
0.469
8
0.656
6
0.332
9
0.522
8
0.49
8
4
Being listed in business directories (Yellow Pages)
0.656
7
0.63
7
0.605
6
0.714
6
0.65
6
5
Writing of proposals
0.881
4
0.662
5
0.855
4
0.914
5
0.83
5
6
Project signboard
0.963
1
0.98
1
0.977
1
0.992
1
0.98
1
7
Company websites
0.794
5
0.941
2
0.755
5
0.961
4
0.86
4
8
Use of print media advertisements
0.713
6
0.469
9
0.582
7
0.667
7
0.61
7
9
Equipment branding
0.956
2
0.852
4
0.95
2
0.976
2
0.93
2
10
Broadcast media
0.269
10
0.564
8
0.305
10
0.231
10
0.34
10
Firm-Based Strategies
1
Development of a marketable name
0.9
1
0.934
2
0.914
3
0.773
2
0.88
2
2
Transactional marketing
0.35
11
0.734
5
0.482
9
0.624
11
0.55
10
3
Environmental scanning/research
0.825
6
0.689
9
0.65
8
0.667
7
0.71
7
4
Market segmentation/product differentiation
0.844
4
0.918
3
0.877
4
0.757
4
0.85
3
5
Use of promotional products
0.881
2
0.823
4
0.795
6
0.773
2
0.82
4
6
Use of information and communication technology
(ICT) in
service delivery
0.831
5
0.705
6
0.918
2
0.686
6
0.79
5
7
Acquisition of personnel and equipment
0.806
7
0.702
7
0.868
5
0.667
7
0.76
6
8
Registration with client bodies
0.519
10
0.692
8
0.427
10
0.757
4
0.6
9
9
Claim aversion
0.881
2
0.961
1
0.955
1
0.847
1
0.91
1
10
Corporate social responsibility/charitable initiatives
0.719
8
0.682
10
0.7
7
0.667
7
0.69
8
11
Marketing plan
0.638
9
0.407
11
0.35
11
0.627
10
0.51
11
Project Performance-Based Strategies
1
Improvement in project performance
0.925
1
0.925
2
0.773
3
0.847
2
0.87
2
2
Free maintenance service offer
0.594
4
0.813
4
0.85
2
0.667
5
0.73
3
3
Selling the benefits not the features
0.625
3
0.869
3
0.65
5
0.757
4
0.73
4
4
Supply chain management
0.344
5
0.793
5
0.755
4
0.796
3
0.67
5
5
Free design contribution
0.781
2
0.928
1
0.932
1
0.969
1
0.9
1
Bldr. = Builders; Q.S = Quantity surveyors; Arch. = Architects; Engr. = Engineers; Rk = Rank
Based on the average ranking of the major grouping of the marketing strategies
in Table 2, the builders ranked client-based strategies and firm-based strategies as
first and second respectively. The quantity surveyors ranked project
performance-based strategies and firm-based strategies in the first and second
positions respectively. Similarly, the architects and engineers ranked third
party-based strategies and project performance-based strategies first and second
respectively. On overall, third-party-based strategies, project performance-based
strategies and client-based strategies are the most vital marketing strategies for the
improved performance of construction firms. This is in agreement with Ogbu (2017),
who suggested that areas of emphasis when selecting a marketing strategy to adopt
1918
are a third party-based strategy, client-based strategy, firm-based strategy and
publicity-based strategy.
The relative difference in the opinion of the different professionals is an
indication of the existence of differing marketing strategies adopted by the different
organisations. This is relevant in marketing as it reveals why some firms are
constantly being commissioned for new jobs and others rarely secure jobs in a given
business year. The success of a chosen set of marketing strategies is dependent on the
effective implementation and commitment from top management and a company’s
strategic marketing policy. The organisational type and strategic objective to a very
large extent influence the choice when adopting marketing strategies. Thus, a
construction-based firm will certainly adopt a different marketing approach when
compared to a consultant firm. Regardless of the differences, marketing strategies are
targeted towards attracting potential clients and securing new or maintaining existing
projects. For adaptive marketing strategies to be developed, it is necessary to have an
adequate knowledge and understanding of the business environment of the
organisation as opined by Bamber et al. (2004) and Yan and Chew (2011).
Table 2: Average ranking of marketing strategies based on major sub-group
S/N
Marketing strategies
Bldr.
Q. S
Arch.
Engr.
Overall
RII
Rk
RII
Rk
RII
Rk
RII
Rk
RII
Rk
1
Third party-based strategies
0.695
4
0.705
4
0.896
1
0.898
1
0.799
1
2
Client-based strategies
0.768
1
0.715
3
0.759
3
0.786
3
0.757
3
3
Publicity-based strategies
0.704
3
0.695
5
0.674
5
0.742
4
0.704
5
4
Firm-based strategies
0.745
2
0.750
2
0.721
4
0.713
5
0.732
4
5
Project performance-based
strategies
0.654
5
0.866
1
0.792
2
0.807
2
0.780
2
Table 3 shows the Kruskal-Wallis test carried out at 95% confidence level. The
test showed that there is no significant difference in the ranking of the marketing
strategies used in the construction firms. There seem to be consistencies in the
perception of the various professionals regarding the variables. In all the major
groupings of the marketing strategies, the test shows that there is no significant
difference in the ranking as perceived by the respondents. These strategies recorded a
significant p-value of above 0.05. Since 100% of the strategies are effective for
improving performance and helping firms maintain and secure projects when
implemented, it was then concluded that there is agreement among the respondents
regarding the strategies in the construction industry. This was supported by a further
analysis in Table 4 using the RII of each group for all the strategies: this showed a
P-value of 0.895. Based on this, the hypothesis was therefore accepted.
1919
Table 3: Comparison of professionals’ perception regarding the marketing
strategies of construction firms
S/N
Marketing Strategies
Overall Average
Kruskal-Wallis
RII
Rank
Respondents
Mean
Rank
Chi
Sq.
P-
value
Decision
1
Third party
-
based
strategies
0.7986
1
Bldr.
9.40
3.137
0.371
Accept
Q. S
7.20
Arch.
12.40
Engr.
13.00
2
Client
-
based strategies
0.7571
3
Bldr.
25.25
0.562
0.905
Accept
Q. S
22.08
Arch.
24.50
Engr.
26.17
3
Publicity
-based
strategies
0.7039
5
Bldr.
19.90
1.093
0.779
Accept
Q. S
19.30
Arch.
19.00
Engr.
23.80
4
Firm
-
based strategies
0.7323
4
Bldr.
24.50
1.922
0.589
Accept
Q. S
24.23
Arch.
23.36
Engr.
17.91
5
Project
performance
-
based
strategies
0.7796
2
Bldr.
6.30
4.669
0.198
Accept
Q. S
14.30
Arch.
10.20
Engr.
11.20
N = 32 for Building, N = 61 for Quantity Surveyor, N = 44 for Architect, N = 51 for Engineering, df = 3
Table 4: Overall comparison of professionals’ perception of marketing strategies
of construction firms
Marketing Strategies
Kruskal-Wallis
Respondents
Mean Rank
Chi Sq.
P-value
Decision
Marketing Strategies
Bldr.
88.45
0.608
0.895
Accept
Q. S
83.08
Arch.
90.36
Engr.
85.81
N = 32 for Building, N = 61 for Quantity Surveyor, N = 44 for Architect, N = 51 for Engineering, df = 3
1920
In order to confirm the observation of the Kruskal-Wallis test, the
Mann-Whitney U-test was conducted to test for differences between two independent
groups where the overall Kruskal-Wallis test is significant. According to Boduszek
(2017), if the overall K-W test is significant, the Mann-Whitney tests should be
conducted to compare the groups (to investigate which groups differ significantly). In
all the pairs, the p-value is greater than 0.05 at 95% confidence level (Table 5). This
observation leads to the conclusion that there is no significant difference among the
perceptions of the respondents and between any pairs of the respondents.
Table 5: Result of Mann-Whitney U-test
Variable group
Z (calculated)
Z (critical)
P-value
Decision
Builders vs Quantity surveyors
-0.441
8
0.659
Accept
Builders vs Architects
-0.147
7
0.883
Accept
Builders vs Engineers
-0.276
8
0.782
Accept
Quantity surveyors vs Architects
-0.714
9
0.475
Accept
Quantity surveyors vs Engineers
-0.335
9
0.738
Accept
Architects vs Engineers
-0.454
8
0.650
Accept
N = number of respondents in each group; Bldr. = 32, Q.S = 61, Arch. = 44, Engr. = 51
5. CONCLUSION AND RECOMMENDATIONS
Construction firms and construction professionals are yet to fully appreciate and
implement marketing strategies that could impact positively on their performance
and drive revenue generation. The study adopted a random sampling technique in
collecting data on the perception of construction professionals on the marketing
strategies used by their firms. The outcome of this study would assist the industry’s
decision makers in making informed decisions regarding the most beneficial
marketing strategies to implement. This study assessed the perception of construction
professionals regarding the marketing strategies adopted by construction firms in
Nigeria with a view to recommending strategies that will improve their publicity and
ensure that they remain competitive.
The study revealed that maintaining a strong pool of professionals to boost the
company image, the development of non-economic or social bonds with clients, the
inclusion of ‘political’ offers in bids, more communication with clients, project
signboards, equipment branding, packaging company documents to look attractive,
claim aversion, development of a marketable name, market segmentation and
product differentiation, and free design contribution are the specific marketing
strategies employed by construction firms. In addition, the major marketing
strategies for the improved performance of construction firms are third-party-based
strategies, project performance-based strategies and client-based strategies. The study
concluded that there is no significant statistical difference in the perception of the
1921
respondents regarding the marketing strategies used in their firms or organizations.
Based on the findings and conclusion, the study made the following
recommendations:
1) Construction firms should ensure that they always maintain the use of a
strong pool of professionals to boost company image. This is critical to the
success and performance improvement of any firm.
2) Construction companies should develop social or non-economical and
political relationships with their clients, with strong and regular
communications links. This will surely lead to trust and more or repeat
patronage.
3) Construction firms must ensure that they erect project signboards on every
site which will display to potential clients their name and project type, among
other information. In addition, all their equipment should be branded and
every company document should be neatly packaged so that they are
appealing to the eye.
4) Construction firms should ensure adequate control to avoid unnecessary
claims arising during construction. They should ensure that they develop a
name that could be marketed to the public and that buildings are properly
finished on time, within budget, and meeting the specific client requirements.
5) Construction firms should at their own cost do free designs as a way of
contributing to the progress of the building under construction. This will
ensure speedy construction and that the client is relieved of the financial
burden.
Construction firms should ensure that there is continuous management support
targeted towards improving their overall marketing performance. Studies that have
completely exhausted the list of marketing strategies available either in corporate
organisations or to be found among the marketing management functions of firms are
still lacking. Therefore, a further study regarding construction professionals’
perception of the marketing strategies employed by construction firms could be
carried out, adopting other region or zone in Nigeria. This would enable more
marketing strategies to be identified through interviewing, brainstorming or
brainwriting, among others, in addition to the use of questionnaires. A study that
would examine what triggers the adoption of certain marketing strategies should be
embarked upon.
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