CAPE COAST POLYTECHNIC

SCHOOL OF ENGINEERING

DEPARTMENT OF BUILDING TECHNOLOGY

PROJECT TOPIC: FACTORS AFFECTING MARKETING SUCCESS FOR REAL ESTATE FIRMS AND CONSTRUCTION COMPANIES IN THE HOUSING SECTOR

PREPARED BY

TEDDY ATO ADAMS

A FINAL YEAR PROJECT REPORT IN PARTIAL FULFILMENT OF THE REQUIREMENT FOR THE AWARD OF HIGHER NATIONAL DIPLOMA IN BUILDING TECHNOLOGY

MAY, 2011

DECLARATION I, TEDDY ATO ADAMS, hereby declare that this project is the result of my own work except the recognition of references to other peoples work, which have been duly cited.

SUPERVISORS DECLARATION I hereby declare that the preparation and presentation of this project work was supervised in accordance with the guidelines and supervision of research work laid down by the Cape Coast Polytechnic, Cape Coast. Supervisors nameEMMANUEL NANA JACKSON

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DEDICATION I have found it impossible to carry the heavy burden of responsibility and to discharge my duties as King as I would wish to do without the help and support of those I love (Edward VIII, 1894 1972) I dedicate this piece of work to all those important people in my life; my family now and my love ones.

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ACKNOWLEDGEMENTS Glory be to God great things he has done. Preparing such a material would not have been possible but for the Grace of God and some personalities worth mentioning. I first and foremost to my dad and mum whose have laboured tirelessly to bring me this far. Secondly, I thank all authors whose work I consulted in writing this research proposal. I also thank the lecturer, Mr. Jackson, who I refer to as my father, for his guidance and direction throughout my research work. Finally, to all my family for their support and encouragement.

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ABSTRACT There is no point having a brilliant strategy that just sits on the shelf gathering dust. It needs to be executed and acted upon! It is the dream of very mother who brings forth a new life into this world to see the child grow, develop and increase; so should very business, be it construction firm or not. Marketing is a critical issue to success in todays increasingly competitive business environment. A companys growth and success can be strongly influenced by marketing practices. The aim of this study is to investigate the critical factors affecting marketing success for real estate firms and construction companies in the housing sector and possible ways the firms can use marketing principles (communicational policy) so as to stand out in the industry and make a lasting impression with current and potential customers. Within this context, a survey was carried out among 5 local real estate and construction companies that are operating in the housing sector in the Sekondi Takoradi Metropolis. In this survey, top-level managers, senior staffs, owners and other employees of the companies were administered with questionnaires. This was performed from May to July 2012. In the study, the survey questionnaires were administered during by face-to-face meetings. The marketing strategies and factors considered in this study were identified based on a literature review of a previous study. Then, a total of four marketing strategies and six possible factors that were felt to have an effect on successful marketing for construction companies were used. Finally, the ranking of the critical factors were determined by using the Simple Multi Attribute Rating Technique (SMART) and the strategies by simple frequencies. Based on the results marketing strategies such as; advertising; personal selling; publicity; and sales promotion respectively, and in addition to company image and customer satisfaction were determined as highly vital factors for successful marketing in construction business in ad.

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TABLE OF CONTENTS Declaration Dedication Acknowledgement Abstract Chapter I: INTRODUCTION 1.1 Background 1.2 Statement of problem 1.3 Research questions 1.4 Aims / Objectives of the study 1.5 Nature and Scope 1.6 Problems and limitations Chapter II: LITERATURE REVIEW 2.1 Global Perspective of Real Estate 2.2 A review of research previously carried out 2.3 Communicational Policy 2.4 An article from a firm 2.5 Definition of terms Chapter III: METHODOLOGY 3.1 The Research Design 3.2 Population 3.3 Sample and Sampling Technique 3.4 Instrument 3.5 Data Analysis 3.6 Research Question i ii iii iv 1 1 2 3 3 3 4 6 6 10 22 24 27 31 31 31 31 31 32 32

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Chapter IV: DATA PRESENTATION AND ANALYSIS 4.1 Introduction 4.2 Findings from the Firms 4.3 Summary of findings of the study

33 33 33 40

Chapter V: FINDINGS, CONCLUSION AND RECOMMENDATIONS 41 5.1 Conclusion of the study 5.2 Recommendations of the study 5.3 Limitations and future research directions 41 41 42

Appendices Bibliography

43 48

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CHAPTER 1: INTRODUCTION
1.1 Background Marketing is the process used to determine what products or services may be of interest to customers, and the strategy to use in sales, communications and business development. It generates the strategy that underlies sales techniques, business communication, and business developments. It is an integrated process through which companies build strong customer relationships and create value for their customers and for themselves (en.wikipedia.org/wiki/Marketing). The Chartered Institute of Marketing defines marketing as "the management process responsible for identifying, anticipating and satisfying customer requirements profitably" (en.wikipedia.org/wiki/Marketing) At the global and local level contractors and consultants have had to take a more professional approach to marketing and sales. Some construction firms are being restructured into client-oriented organizations. However, in all organizations there is considerable room to develop marketing and sales to enhance opportunities to grow and to protect markets during times of recession (Wiley-Blackwell, 2000). To stand out in the industry, construction business owners must be actively involved in marketing to make a lasting impression with current and potential customers. Different tools can be used to get the message out, including a memorable logo and slogan, a strong website, eye-catching print materials and a visible trade show display. Sometimes, these tools intimidate business owners, but most strategies are not difficult to implement (McGlynn, 2010). Knowing the right principles to use in marketing of products goes a long way to sell out a construction business. There are various marketing principles and strategies, of which each firm must know the suitable principles and strategy to use. A marketing strategy needs to be relevant realistic to the business and realistic. Today's fast changing world demands that businesses have the agility to change strategies to ensure ongoing competitiveness. This requires reviewing and updating the assumptions upon which your marketing strategy is built. 1.1.1 Communicational Policy

Communication is the process of establishing shared meaning, exchange ideas, or passing information between a source and a receiver. The intended target for any basic communication is the receiver; this could be a consumer reading a magazine ad.
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The traditional communication tools are advertising, direct marketing, sales promotion, personal selling and public relations. In addition to that there are sponsoring, trade fairs and communication through multimedia channels (Weis, 2004, p.116). 1.1.2 Promotional Communication

According to Patriche, (2011) Construction organizations use various promotional approaches to communicate with target markets. The communication process consists in two components: the promotional communication also known as promotion and the permanent communication. To gain maximum benefit from promotional efforts, construction organizations must make every effort to properly plan, implement, coordinate and control communications. Promotion defined by Burden (2000), includes communication activities that provide extra or incentives to ultimate consumers, wholesalers, retailer, or other organisational customers and that can stimulate immediate sales. It attempt to stimulate product interest, trial, or purchase. Samples, premiums, contest, and trade show exhibits are all examples of promotions (sale promotions). 1.2 Statement of the problem The subject of marketing has received more attention in the construction field over recent years (Winter and Preece, 2000) and many firms realized the importance of marketing in this industry (Arditi and Davis, 1988). However, there are many studies showing that construction firms are slow in adopting marketing principles and marketing is not integrated into the structure of the firms (Winter and Preece, 2000; Bennett, 2005; Yisa, Ndekugri and Ambrose, 1996; Cicmil and Nicholson, 1998). Ganah, A., Pye, A., and Walker, C. (2008) investigated marketing strategies in the construction industry and the challenges facing small to medium enterprises in the development of these strategies. They found that there is a lack of understanding of construction marketing and strategies within small to medium enterprises in the construction industry. They also found that the strategy for marketing is nonexistent in most instances. Construction organisations or businesses start like any other business in the marketing industry in Ghana, but unfortunately die out or remain stand still. Only handfuls have been able to break out from this jinx. What then did they that have been able to make it and competed well with other business do? A simple answer to that question is their marketing policies were right. In view of that there is then a possibility for other real estate developers and
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construction firms in Ghana to also make, only if they use the right marketing principles and policies. But here is the case much research work has not been done in relation to this critical area. 1.3 Research question Why real estate developers and construction firms not successful like other businesses that are into marketing? 1.4 Aim and objectives of the study To help answer the above question, the following aim and sub-objectives will be used: 1.4.1 Aim

To identify growth oriented marketing strategies / policies usable by construction and real estate firm to maximise growth and sustainability of their firm. 1.4.2 Objectives

1. To find the most efficient communication policy / marketing strategy that will enhance the marketing potentials of real estate developers and construction firms in the Sekondi-Takoradi Metropolis. 2. To investigate the critical factors affecting marketing success of construction companies in the housing sector. 1.5 Nature and scope 1.5.1 Brief topography and history of Sekondi Takoradi Metropolis

Sekondi-Takoradi, the third largest city in Ghana is also the capital of the country's western region. It is the prime destination for industry and commerce. The main industries that flourish here are plywood, shipbuilding, timber, cigarettes and railroad repair. Sekondi-Takoradi remains one of the most sought-after Tourist Destinations in Ghana (en.wikipedia.org). Sekondi-Takoradi is located on the main railway line that runs from Accra to Kumasi on the coordinates; 045500N 014600W in the western region of Ghana (en.wikipedia.org). The history of Sekondi-Takoradi, Ghana is very interesting. There were two parts of the city which grew around the forts built by the Dutch and English in the 17th Century. The first, Sekondi was older and larger than the second one. It prospered to a great extent when in 1903 a railroad was constructed in that hinterland of timber and mineral resources. In the second part of the city, a deepwater harbour was built in Takoradi in the year 1928. These two parts
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were joined in 1946. Sekondi and Takoradi, a single municipality since 1946, became one city in 1963 (en.wikipedia.org). The city is currently named (although not officially) as the Oil City of Ghana due to the massive discovery of oil in the western region of Ghana and has attracted massive migration from people all over the world (en.wikipedia.org). Fig. I map of Sekondi-Takoradi Source: www.google.com/map

1.5.2

Problems and limitations

In clear terms I anticipate some foreseeable obstacles in the process of our data production. To begin with, I presume owners and managers of firms will not be willing to give out information concerning their businesses and also there may be a problem with regards to what to include in my interview guideline. In addition as one can imagine it will be very difficult to arrange a meeting with the respondents as a result of their tight schedule. My study will be limited to the role of communicational policy in the marketing activity of construction organizations (real estate and construction firms) in the Sekondi Takoradi Metropolis, other marketing principles or strategies may not be tackled. 1.5.3 Year and scope of the study

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This work is performed in the 2011/2012 academic year in the SekondiTakoradi Metropolis as a final year project report in partial fulfilment of the requirement for the award of Higher National Diploma in Building Technology. 1.5.4 Significance of the study

The end result of the research will help improve Ghanas housing deficit in such a way that construction and real estate firms will adopt the right marketing strategies which will be identified in the findings and recommendations, in marketing of their products especially houses.

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Chapter II: LITERATURE REVIEW

This chapter takes a look at review of literature in relation to real estate, real estate marketing and promotional communication in real estate marketing. Specifically the chapter looks at the various aspects of promotional communication in the marketing of construction services or products globally. 2.1 Global Perspective of Real Estate Dalin (2009) indicate that the real estate includes housing and the land which is under the housing. It also includes the land, any kinds of building on the land, the construction, other inseparable material and their right. The real estate industry is a set of many enterprises which revolve the property development, the sale and the maintenance forms. Each department may include some different organizations, as indicated by Dalin et al (2009). 2.1.1 Global Overview of Real Estate Markets/Marketing (According to Wikipedia, the free encyclopaedia)

The main participants in real estate markets are:

Owner/User - These people are both owners as well as tenants. They purchase houses or commercial property as an investment and also to live in or utilize as a business. Owner - These people are pure investors. They do not consume the real estate that they purchase. Typically they rent out or lease the property to someone else. Renter - These people are pure consumers. Developers - These people prepare raw land for building which results in new product for the market. Renovators - These people supply refurbished buildings to the market. Facilitators - This includes banks, Real Estate Brokers lawyers, and others that facilitate the purchase and sale of real estate.

The owner/user, owner, and renter comprise the demand side of the market, while the developers and renovators comprise the supply side. 2.1.2 Characteristics Of Real Estate Market

In particular, the unique characteristics of the real estate market must be accommodated. These characteristics include:

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Durability - Real estate is durable. A building can last for decades or even centuries, and the land underneath it is practically indestructible. Because of this, real estate markets are modelled as a stock/flow market. About 98% of supply consists of the stock of existing houses, while about 2% consists of the flow of new development. Heterogeneous - Every piece of real estate is unique, in terms of its location, in terms of the building, and in terms of its financing. This makes pricing difficult, increases search costs, creates information asymmetry and greatly restricts substitutability. High Transaction costs - Buying and/or moving into a home costs much more than most types of transactions. These costs include search costs, real estate fees, moving costs, legal fees, land transfer taxes, and deed registration fees. The price of housing is high, and general customers may buy housing with their saving in a few years or by mortgage. Long time delays - The market adjustment process is subject to time delays due to the length of time it takes to finance, design, and construct new supply, and also due to the relatively slow rate of change of demand. Because of these lags there is a great potential for disequilibrium in the short run. Adjustment mechanisms tend to be slow, relative to more fluid markets. Both an investment good and a consumption good - Real estate can be purchased with the expectation of attaining a return (an investment good), or with the intention of using it (a consumption good), or both. These functions can be separated (with market participants concentrating on one or the other function) or can be combined (in the case of the person that lives in a house that they own). This dual nature of the good means that it is not uncommon for people to over-invest in real estate, that is, to invest more money in an asset than it is worth on the open market. The housing can be used to live, and also can be used to invest. This characteristic makes the marketing mode of housing will be different from other ordinary customer goods. Immobility - Real estate is locationally immobile (save for mobile homes, but the land underneath them is still immobile). Consumers come to the good rather than the good going to the consumer. Because of this, there can be no physical market-place. This spatial fixity means that market adjustment must occur by people moving to dwelling units, rather than the movement of the goods. For example, if tastes change and more people demand suburban houses, people must find housing in the suburbs, because it is impossible to bring their existing house and
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lot to the suburb (even a mobile home owner, who could move the house, must still find a new lot). Spatial fixity combined with the close proximity of housing units in urban areas suggests the potential for externalities inherent in a given location.

The regionalism of housing - Due to the non-mobility of housing, housing has many locational characteristics. This makes that the differences of housing not only reflects on the design, but also reflect on their positions. The housings price at different locations is very different. The indivisibility of housing and land -The housing must be built on a certain land. This is reflected in two aspects: firstly, the building must be on the land; secondly, the property of housing is usually linked to the property of land. The customers get the lands right as the same time as they purchase the housing. The dispersion of housing - The non- mobility of housing and the scarcity of land resources make that the housing industry cannot form industrial clustering. The housing industry in the geographical distribution must be decentralized. Demand for housing

2.1.3

The main determinants of the demand for housing are demographic. However other factors like income, price of housing, cost and availability of credit, consumer preferences, investor preferences, price of substitutes and price of complements all play a role. i. The core demographic variables are population size and population growth: the more people in the economy, the greater the demand for housing. But this is an oversimplification. The size and demographic composition of households is variable and not entirely exogenous. It is endogenous to the housing market in the sense that as the price of housing services increase, household size will tend also to increase. Income is also an important determinant. Many housing economists use permanent income rather than annual income because of the high cost of purchasing real estate. For many people, real estate will be the most costly item they will ever buy. The price of housing is also an important factor. Real estate financing

ii.

iii. 2.1.4

There are different ways of real estate financing: governmental and commercial sources and institutions. A home buyer or builder can obtain financial aid from
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savings and loan associations, commercial banks, savings banks, mortgage bankers and brokers, life insurance companies, credit unions, federal agencies, individual investors, and builders. i. Savings and loan associations

The most important purpose of these institutions is to make mortgage loans on residential property. These organizations, which also are known as savings associations, building and loan associations, cooperative banks (in New England), and homestead associations (in Louisiana), are the primary source of financial assistance to a large segment of American homeowners. As homefinancing institutions, they give primary attention to single-family residences and are equipped to make loans in this area. Some of the most important characteristics of a savings and loan association are: 1 It is generally a locally owned and privately managed home-financing institution. It receives individuals' savings and uses these funds to make long-term amortized loans to home purchasers. It makes loans for the construction, purchase, repair, or refinancing of houses. It is state or federally chartered. Commercial banks

4 ii.

Due to changes in banking laws and policies, commercial banks are increasingly active in home financing. In acquiring mortgages on real estate, these institutions follow two main practices: 1. First, some of the banks maintain active and well-organized departments whose primary function is to compete actively for real estate loans. In areas lacking specialized real estate financial institutions, these banks become the source for residential and farm mortgage loans. 2. Second, the banks acquire mortgages by simply purchasing them from mortgage bankers or dealers. iii. Savings banks

These depository financial institutions are federally chartered, primarily accept consumer deposits, and make home mortgage loans.

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iv.

Mortgage bankers and brokers

Mortgage bankers are companies or individuals, who originate mortgage loans, sell them to other investors, service the monthly payments, and may act as agents to dispense funds for taxes and insurance. Mortgage brokers present the consumer home buyer with the best loan from a variety of loan sources. According to Don Burnette of Brightgreen Homeloans in Port Orange, Florida, "The mortgage banker and broker conduit is vital to maintain competitive balance in the mortgage industry. Without it, the largest lenders would be able to unduly influence rates and pricing, potentially hurting the consumer. Competition drives every organization in this industry to constantly improve on their performance, and the consumer is the winner in this scenario." v. Life insurance companies

Life insurance companies are another source of financial assistance. These companies lend on real estate as one form of investment and adjust their portfolios from time to time to reflect changing economic conditions. Individuals seeking a loan from an insurance company can deal directly with a local branch office or with a local real estate broker who acts as loan correspondent for one or more insurance companies. vi. Credit unions

These cooperative financial institutions are organized by people who share a common bond; for example, employees of a company, a labour union, or a religious group. Some credit unions offer home loans in addition to other financial services. vii. Other sources

Individual investors constitute a fairly large but somewhat declining source of money for home mortgage loans. Experienced observers claim that these lenders prefer shorter term obligations and usually restrict their loans to less than two-thirds of the value of the residential property. Likewise, building contractors sometimes accept second mortgages in part payment of the construction price of a home if the purchaser is unable to raise the total amount of down payment above the first mortgage money offered. 2.2 A review of research previously carried out A look at a research work performed by Yisa, Ndekugri and Ambrose (1995), on changes in the UK construction industry, reviled the following about the marketing of construction services in UK which can be related to Ghana;

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2.2.1

Problems associated with marketing in construction

The construction industry is essentially a service industry (Arditi and Davis, 1988; Friedman, 1994; Hardy and Davies, 1983), and faces the same problems often encountered by other service industries, namely intangibility of services, inseparability, perishability, and heterogeneity. Generally, in the marketing of services, as in the construction industry, there are problems additional to those relating to the traditional marketing mixes, i.e. product, price, promotion and place (Fisher, 1989; Hardy and Davies, 1983). Langford and Fellows (1993) listed some of these problems as: uncertainties regarding the clients; the need for relevant experience; limited differentiation between services; limited knowledge of marketing; involvement of the consumer in production. 2.2.2 The way forward

Strategic growth results from an awareness of the opportunities and needs created by changing market environment. The marketing function must become central to the organization and shape its future market strategy. A good understanding of the needs of the market arising from a greater attention to effective boundary regulation will lead to beneficial market segmentation and an inclination towards innovation, administratively as well as technically. Unfortunately, the UK construction industry is yet to achieve significant success in the planning and management of the marketing function. Construction enterprises tend to ignore marketing in their development. As currently employed in construction companies, marketing is mainly tactical sales and advertising rather than being a strategic development of a clientoriented business (Corfe, 1991; Pearce, 1992). In several companies within the construction industry, marketing is still seen as an extension of, or part of the responsibilities of operations managers or other specialists rather than as an independent function (Hillebrandt and Cannon, 1990). Marketing as a service to enhance performance has only recently been introduced in a number of companies (Namo and Fellows, 1993) and it still appears to be relatively poorly integrated and organized and the practice varies considerably (Yisa et al., 1995). The way forward is for construction firms to assess their markets adequately, both now and where they plan to be in the future. They must realize that marketing incorporates many business activities, both internal and external to the companies, and embodies both a concept and procedure in its application. The concept of marketing is that of focusing the activities of all departments of a company on the needs of the customer, and then organizing the companys resources to identify and satisfy those needs profitably. Marketing as a philosophy stems from the recognition that a company can only survive by profitably providing goods or services which the customer wants to buy.
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Again, too often the link between survival and success and provision of what the customer wants, rather than what the company thinks the customer should want, is not made by construction industry bosses. In todays business environment, more than any preceding era, the only constant is change. To be successful, organizations must manage change effectively, continuously adapting their bureaucracies, strategies, systems, products and cultures to survive the shocks, and prosper from forces which decimate the competition. 2.3 Communicational Policy A research carried out by Ph. D. Patriche et al (2009) indicated the following write out; Construction organizations use various promotional approaches to communicate with target markets. To define and examine the role of the communication policy in the construction field, we must understand how promotion works and the meaning of the communication process in this economic domain. We must discuss the major types of promotional methods and the factors that influence a construction organizations decision to use specific methods of communication. The communication process consists in two components: the promotional communication also known as promotion and the permanent communication. In this case we discus about the role of the promotion in the market activity. 2.3.1 The intended role of promotion in relation to construction marketing activities The role of promotion is to communicate with individuals, groups or organizations to directly or indirectly facilitate exchanges by informing and persuading one or more of the audiences to accept a construction organizations products.

One long-run purpose of promotion is to influence and encourage buyers to accept or adopt construction products, services and ideas. Companies indirectly facilitate exchanges by focusing information about organizations activities and products on interest groups (such as environmental and consumer groups), current and potential investors, regulatory agencies and society in general. Like all the organizations, construction plants communicate to facilitate satisfying exchanges. Promotion can play a comprehensive communication role. Some promotional activities, such as publicity and public relation, can be directed toward helping a construction company justify its existence and maintain positive, healthy relationships between itself and various groups in the marketing environment. Although a company can direct a single type of communication such as an advertisement toward numerous audiences, constructors often design a
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communication precisely for a specific target market. A construction firm frequently communicates several different messages concurrently, each to a different group. To gain maximum benefit from promotional efforts, construction organizations must make every effort to properly plan, implement, coordinate and control communications.

Effective promotional activities are based on information from the marketing environment, often obtained from an organizations marketing information system. How effectively construction plants can use promotion to maintain positive relationships depends largely on the quantity and quality of information an organization takes in. In the construction field, the promotional communication is much difficult to realize, because of some disturbing elements, such as economic and cultural differences, different tastes, attitudes and habits and the large variety of actors that intervenes in the market process of a construction company. Communication can be viewed as the transmission of information. For communication to take place, however, both the sender and the receiver of the information must share some common ground. They must share a common understanding of the symbols used to transmit information. Thus we define communication as a sharing of meaning. Implicit in this definition is the notion of transmission of information because sharing necessitates transmission.

In the construction field, information is mostly technique and that involves specific methods to transmit the ideas from the companies to their audience. Communication begins with a source. The source is the construction organization that has a meaning it intends and attempts to share with an audience. A receiver is the individual, group or organization that decodes a coded message. An audience is two or more receivers who decode a message. To transmit meaning, a source must convert the meaning into a series of signs that represent ideas or concepts. This is called the coding process or encoding. When coding meaning into a message, a source must take into account certain characteristics of the receiver or audience. First, to share meaning, the source should use signs that are familiar to the receiver or audience. Construction organizations who understand this fact realize how to know their target market and to make sure that an advertisement, for example, is written in language that the target market can understand. Thus it is important that people understand the language used in promotion. Second, when coding a meaning, a source should try to use signs that the receiver or audience uses for referring to the concepts the source intends.

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Construction plants should generally avoid signs that can have several meanings for an audience. To share a coded meaning with the receiver or audience, a source must select and use a medium of transmission. A medium of transmission carries the coded message from the source to the receiver or audience. When a source chooses an inappropriate medium of transmission, several problems may arise. A coded message may reach some receivers, but not the right ones. Coded messages may also reach intended receivers in an incomplete form because the intensity of the transmission is weak. In the decoding process, signs are converted into concepts and ideas. Seldom does a receiver decode exactly the same meaning that a source coded. When the decoding results are different from what was coded, noise exists. Noise has many sources and may affect any or all parts of the communication process in the construction field. When a source selects a medium of transmission through which an audience does not expect to receive a message, noise is likely to occur. Noise sometimes arises within the medium of transmission itself. Noise also occurs when a source uses a sign that is unfamiliar to the receiver or that has a different meaning from the one the source intended. Noise also may originate in the receiver. A receiver may be unaware of a coded message because his perceptual processes block it out. The receivers response to a message is feedback to the source. The source usually expects and normally receives feedback, although it may not be immediate. During feedback, the receiver or audience is the source of a message that is directed toward the original source, which then becomes a receiver. Feedback is coded; send through a medium of transmission, and is decoded by the receiver, the source of the original communication. It is logical, then, to think about communication as a circular process. During face-to-face communication, such as a constructor - beneficiary situation, both verbal and nonverbal feedback can be immediate. Instant feedback lets communicators in the construction field adjust their message quickly to improve the effectiveness of their communication. Each communication channel has a limit on the volume of information it can handle effectively. This limit, called channel capacity, is determined by the least efficient component of the communication process.

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Fig. II. : (Burden, Ingram, LaForge, Marketing Principles and Perspectives, Exhibit 16-3)

In the construction marketing, several types of promotional methods can be used to communicate with individuals, groups and organizations. When a construction organization combines specific ingredients to promote a particular product (a type of a building, a particular construction service) that combination constitutes the promotion mix for that product. The four possible ingredients of a promotion mix are advertising, personal selling, publicity and sales promotion. Also, in the construction domain we can mention as promotion mix components the direct communication and exhibitions participation. i. Advertising is a paid form of non personal communication about a construction organization and its products that is transmitted to target audience through a mass medium such as television, radio, newspapers, magazines, direct mail, mass transit vehicles, outdoor displays or catalogs. Construction organizations use advertising to promote specific products, services, ideas and issues. Because it is highly flexible, advertising offers the options of reaching an extremely large target audience or focusing on a small, precisely defined segment of the population. Advertising offers several benefits. It can be an extremely cost-efficient promotional method because it can reach a vast number of people at a low cost per person. Advertising also lets the user repeat the message a number of times. The visibility that an organization gains from advertising enhances the firms public
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image. Advertising also has several disadvantages. Even though the cost per person reached may be low, its absolute price can be extremely high, especially for commercials during popular television shows. These high costs can limit and, sometimes, prevent, the use of advertising in a promotion mix. Moreover, advertising rarely provides rapid feedback. Measuring its effects on sales is difficult and it ordinarily has less persuasive impact on costumer than personal selling. ii. Personal selling involves informing customers and persuading them to purchase products through communication in an exchange situation, to encompass the acceptance of ideas and issues. Personal selling has both advantages and limitation when compared with advertising. Advertising is general communication aimed at a relatively large target audience, whereas personal selling involves more specific communication aimed at one or several persons. Reaching one person through personal selling costs considerably more than it does through advertising, but personal selling efforts often have greater impact on construction customers. Personal selling also provides immediate feedback, which allows construction plants to adjust their message to improve communication. It helps them determine and respond to costumers needs for information. When a construction specialist and a customer meet face to face, they use several types of interpersonal communication. Obviously, the predominating communication form is the technical language. iii. Publicity refers to non personal communication in news story form about a construction organization or its products or both, that is transmitted through a mass medium at no charge. Examples of publicity include magazine, newspaper, radio and television news stories about new construction projects and new products or personnel changes in organization. Although both advertising and publicity are transmitted through mass communication, the sponsor does not pay the media costs for publicity and is not identified. iv. Sales promotion is an activity or material that acts as direct inducement, offering added value or incentive for the product, to subcontractors, sales-persons or consumers. Examples of sales promotion include bonuses and contents used to enhance the sales of a product. The term sales promotion should not be confused with promotion. Sales promotion is but a part of the more comprehensive area of promotion, encompassing efforts other than personal selling, advertising and publicity. Currently, construction organizations spend about one and a half times as much on sales promotion as they do on advertising. Sales promotion appears to be growing in use more than advertising. Construction plants
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frequently rely on sales promotion to improve the effectiveness of other promotion mix ingredients, especially advertising and personal selling. In the construction filed marketers design sales promotion to produce immediate, short-run sales increases. Generally, if a company employs advertising or personal selling, it either depends on them continuously or to them cyclically. However, a marketers use of sales promotion tends to be irregular. The direct communication involves direct marketing methods, involves the use of catalogs and technical booklets, also the use of bill boards and, most of all involves the use of cyber marketing. Exhibitions participation is a specific component of promotional mix in the construction field. Construction plants must focused on the characteristics exhibitions for this economic domain. Now that we have discussed the basic components of a construction organizations promotion mix, we need to consider how that mix is created. We must examine what factors and conditions affect the selection of the promotional methods that a specific organization uses in its promotion mix for a particular construction product. Construction organizations vary the composition of promotion mixes for many reasons. Although all ingredients can be included in a promotion mix, frequently a marketer selects fewer than four. In addition, many construction firms that market multiple product lines use several promotion mixes simultaneously. An organizations promotion mix is not an unchanging part of the marketing mix. Marketers can and do change the composition of their promotion mixes. The specific promotion-mix ingredients employed and the intensity at which they are used depend on a variety of factors, including the organizations promotional resources, objectives and policies; characteristics of the target market; characteristics of the product; cost and availability of promotional methods. The quality of a construction organizations promotional resources affects the number and relative intensity of promotional methods that can be included in a promotion mix. If a construction companys promotional budget is extremely limited, the firm is likely to rely on personal selling because it is easier to measure a persons contribution to sales than to measure the effects of advertising.

In construction field, a business must have a sizable promotional budget if it is to use regional or national advertising and sales promotion activities. Organizations with extensive promotional resources usually can include more ingredients in their promotion mixes. However,
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having more promotional money does not imply that they necessarily will use a greater number of promotional methods. A construction organizations promotional objectives and policies also influence the types of promotion used. If a companys objective is to create mass awareness of a new type of a building, its promotion mix is likely to lean heavily toward advertising, sales promotion, and possibly publicity. If a company hopes to educate consumers about the features of durable product, such as a house, its promotion mix may combine a moderate amount of advertising, possibly some sales promotion efforts designed to attract customers and a great deal of personal selling because this method is an excellent way to inform customers about these types of products. Generally, promotion mixes for construction products concentrate on personal selling. However, constructors do use some advertising to promote their products. Personal selling is used extensively for consumer durables such as buildings and other construction products. Publicity appears in promotion mixes for industrial goods and construction products. The costs of promotional methods are major factors to analyze when developing a promotion mix. Advertising and sales promotion efforts require large expenditures. If the efforts are effective in reaching extremely large number of people, the cost per individual reached may be quite small. Not all forms of advertising are expensive, however. Many small, local construction businesses advertise their products through local newspapers, magazines, radio and television stations, and outdoor and transit signs. Another consideration that marketers must explore when formulating a promotion mix is the availability of promotional techniques. 2.3.2 Corporate Branding in Construction Industry

Factories rust away, packages become obsolete, products lose their relevance. But great brands live forever (Backer, Spielvogel, and Bates, 1991). Corporate branding is using a construction company's name and logo in a manner that signifies the company and its work. When successfully executed, this practice has significant advantages in the construction industry and the mere fact your company is working on a project can make that building or projects owner feel like he has the best possible team working for him. The more effective you are at equating your name / company with high quality work the more likely potential customers will seek you out and invite you to participate in further projects. Despite decades of people saying it's all about the lowest bidder the facts speak dramatically that construction companies with a well crafted and maintained brand can and do get more and better projects and dont have to compete based solely on a bid. Many project
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owners are willing to pay a premium when they think or know they are paying for the best possible work (or products). The really great thing about effective branding in the construction industry is that there are so many possible ways to create touch points to your target customers. These include your trucks, employees' uniforms, your building, signage at construction sites, invoices, news reports, community and trade association sponsorships the list is endless. Human beings consistently select the familiar rather than the unknown quantity and this is why aggressively promoting your well conceived brand can make such a huge difference in the construction industry (www.constructionmarketingteam.com, 7/02/2012). 2.3.3 Warranty of Real Estate

The last thing a home buyer wants to worry about after closing is what could possibly break or malfunction in her new home. Since that can cover a multitude of items and systems, for peace of mind, buyers would want to get a home protection plan. It's especially a good idea to give a home warranty to a first-time home buyer with no experience maintaining a home. 2.3.3.1 How Do They Work? If a home system or appliance breaks or stops working, the home owner calls the home warranty company. The home warranty company calls a provider with which it has a business arrangement. The specific provider calls the home owner to make an appointment. The provider fixes the problem. If an appliance is malfunctioning and cannot be repaired, depending on contract coverage, the home warranty company will pay to replace and install the appliance. The home owner pays a small trade service fee (www.ask.com, 24/02/2012). 2.3.4 Construction market segmentation

The segmentation of consumer markets according to www.ask.com/market segmentation (20/02/2012) occurs when companies try to place consumers into specific categories to determine who is most likely to purchase their products. Market segmentation allows companies to develop promotional campaigns that appeal to these specific segments as opposed to painting all consumers with a broad brush. Effective market segmentation can result in the most efficient use of precious advertising currencies.

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i.

Significance

Without market segmentation, companies are required to take a "one size fits all" approach known as mass marketing. As a result, they may be wasting valuable time and money spreading their message to those who have no need for or interest in their products and services. This approach also can make companies vulnerable to losing existing customers to competitors' marketing efforts that target the customers' specific needs. ii. Benefits In contrast with mass marketing, market segmentation allows companies to target consumers who have an actual interest in their products. For example, a Christian bookstore that chooses to advertise on a radio station with a religious format or during a religious television program can easily target listeners and viewers who are more likely to benefit from its products. iii. Types of Needs Market segmentation requires companies to assess the type of need their product satisfies, which helps determine the overall marketing direction. Possible needs include the fulfilment of social esteem or pleasure, such as the status that comes with the purchase of a luxury automobile. A need can also be functional in nature, such as a food product or one that facilitates household chores. iv. Function Companies use information gleaned from market segmentation research to develop marketing and promotional campaigns. For example, if the research indicates that a product appeals to the 18- to 35-year-old demographic, the company will develop advertising that appeals to a younger audience. If a product lends itself to high impulse purchasing, the company will attempt to persuade merchants to locate the product near the store's registers. 2.3.5 Marketing Strategies for Construction Companies

According to Sandra Henderson, Fotolia.Com (02/01/20120), whether in the remodeling business or new constructions, construction companies always run into plenty of competition for construction work. Marketing ensures that they have plenty of work, even when construction jobs are scarce. The use a variety of marketing efforts gets companies name out much more quickly to a larger audience. Sandra Henderson suggests the following steps; i. Prioritize Customers In the construction business, it takes only a few good customers to make up the substantial part of your income. Define who your best customers are and stage
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your advertising around them. Narrowing your prospects ensures that your marketing dollars do not go to waste. ii. Localize Marketing When you are on-site in a lived-in neighborhood, there are potential customers all around. Place a sign on the corner with your name and tag line. Distribute door hangers that tell a little more about your services. You can even ring doorbells while placing door hangers to present a more personal message. iii. Create a Website You need an online presence. Your website should have contact information and a digital resume. Feature your best work and let your potential customers know what your benefits are. Include customer testimonials and your own credentials. Include pricing and information on the costs of building and remodeling. iv. Become an Expert If you have worked in construction very long, you are sure to have a few tips and tricks in your pocket. Offer a newsletter with advice and information. A weekly or monthly email newsletter doesn't cost much and keeps you on your customers' minds. Write blogs and articles for placement online with your name and website listed in the "About the Author" section. You may need to hire a writer; to keep costs low, hire a local college student at a lower price than a professional. v. Reward Referrals Referrals are one of the best ways to gain customers. Offer your current customers a gift card or cash when they bring you business. When your business is strong and your customer service is excellent, the referrals will not be hard to come by. Print business cards to make referrals easy for your customers. Simply hand out extras and ask customers to give them out when referring your business to others. vi. Sell Your Specialty Your company provides a service in a way that others do not. You may work special hours that accommodate customers better. You may have a large crew and finish jobs in amazingly short periods. Or you may do specialty work that is not offered in your area. However you are unique; advertise that quality by talking about it or creating a tag line that can be placed on marketing materials such as door hangers and business cards.

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2.3.6

Creating a Powerful Marketing Communication Strategy

According to Smallbiz Marketing Newsletter (2011), a powerful marketing communication strategy should serve to make your business stand out from the crowd. This article from the Smallbiz Marketing Newsletter discusses several strategies to develop a business owners own compelling core marketing communications piece. i. Marketing Communication Strategy #1: The Compelling Story

Every small business owner should be able to tell a compelling story about their passions and why they started their business. After all, how can you expect to create passion in your customers if you're not able to convey your own business passion? The Compelling Story is just that - an exciting and interesting story as to why you decided to create the business you did. This story must be personal and connect emotionally. A compelling story can create instant trust - and you won't stand a chance of selling your products or services to someone unless they trust you. So, how do you go about creating your own compelling story? Here is a list of important criteria to keep in mind.

Make it personal - Talk about the people you've touched Appeal to the emotions Create a story - make it fun to read Be passionate Incorporate your values Show your human side - talk about mistakes you've made and the lessons you've learned

Your particular story is the perfect way to open your marketing communications folder and should be featured as the first item seen on the inside right pocket. Your story should not be longer than a single page. ii. Marketing Communication Strategy #2: The Competitive Squash

The purpose of this one page document is to summarize why people should buy from you as opposed to your competition. You should summarize all the advantages of doing business with your company. Communicate your unique approach, the value customers get when they do business with you, and why

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your products and services are the best in your field. Don't be shy. This is your chance to show off. Don't make this one text heavy. Pick three or four things you wish to communicate and summarize them in a compelling way. iii. Marketing Communication Strategy #3: The Problem Solver

The purpose of this one page sheet is to show how you are able to solve the business problems of your customers. This is just another way of creating trust and interest. In order for this page to be effective, incorporate the following elements.

Briefly summarize the main problem or problems of your target market Describe how your prospect's problems are solved once they purchase your solution Describe the steps needed to solve the particular problem

This page should describe several specific customer types and demonstrate how their problems were alleviated with your products and services. iv. Marketing Summary Communication Strategy #4: Product/Service

Nothing difficult here - simply summarize the various products, services, and package options you offer and list the benefits of each. Notice I said to summarize the benefits, not the features. This is an important distinction. Too many companies spend enormous amounts of time covering various product features. Instead, concentrate on the benefits of the product and how they will solve specific problems and issues. v. Marketing Communication Strategy #5: The Devotion Page

This is the page that summarizes your customer testimonials. A testimonial is proof that you have a track record of delivering what you promise. Make sure each testimonial focuses on a result that was achieved to help the customer with a specific issue. Here are a few ideas for collecting customer testimonials; 1. While customers may love your product or service, some may feel they don't have the time to write a testimonial. For customers with an established relationship, write one up on their behalf and present it to them for their approval. Be honest and tell them you want to use the testimonial on your website and related marketing materials.
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2. After you have completed the job and surpassed the customer's expectation, ask them face-to-face for a quick testimonial. Have them just write a sentence or two on a piece of paper. It will literally take them a minute or two to write. They will rarely refuse if you have provided value to them. 3. Ask your customers to write the testimonial as if they were recommending your products and/or services to a friend. This will typically create more powerful and genuine copy. Your summary of customer testimonials should fit on a single sheet of paper. If you have enough, use both sides of the sheet. vi. Marketing Communication Strategy #6: The Informational Article

Here is where you can provide some free information to help your customer solve a problem. Write a 1-2 page article on a topic that is important to your customer base. Keep it short. If it is a long article, summarize it and then provide the web URL where they can view or download the entire document at no charge. By providing free information that is relevant and valuable, you will continue to build on the trust and interest you have established. So there you have it - all the main components of a strong marketing communications kit. (You can purchase a pocket folder with your logo and tag line printed on the front from your local print shop. Make sure to get the folders that have the slots on the inside left pocket so that you can insert your business card). Any time you have someone that has expressed interest in your products and services, mail or give them a copy of your folder. It's a powerful marketing communication strategy that will build trust, interest, and repeat business. 2.4 An article from a firm Elite Kingdom Investment Consulting Limited (EKIC) qualifies as the leader in the real estate business when one considers its clientele base and the quick mode of land delivery in four regions of Ghana, including the cities of Accra and Takoradi. EKICs operation in just about years has generated a clientele base of about 4000 middle income earners making a transition from tenancy to landlordship. The plots purchased on lease by clients are situated principally around Accra, Tema, Takoradi, Abri-South, and Ho. The elegant head office complex, situated at No. 24 Lagos Avenue Road East Lagon for lands and No. 79 Logos Avenue for construction and multimedia. The company employs a total of 111 staff and supervises 51 office staff and marketers, 60 field staff engaged in construction on outsourcing and subcontracting basis. Elite Kingdom manages
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5 branch offices located in Adenta, Spintex Road, Tema, East Legon, and Takoradi. The Ho, Koforidu and Sunyani offices will open between November 2011 and March 2012. This noble feat cannot be communicated without mentioning the co- founders Mr. Robert Kwao Djangmah and Mrs. Akosua Henrietta Djangmah, who operate as the Chief Executive Officer (CEO) and Managing Director (MD) respectively. They also double up as the Chancellor and Vice Chancellor of the Elite Kingdom Universities to open shortly. The CEO holds an MBA (Human Resource Management) and BSc In Agriculture from the University of Ghana; and other post graduate certificates in project Management and international Disaster management from GIMPA and University of Wisconsin, Madison, USA respectively. The MD holds an MA in Adult Education and BSc in Administration from the University of Ghana and Central University College respectively, and certificates in project Management and Monitoring and Evaluation. Earlier (1988- 2004), the CEO had worked for African, World Vision, US peace Crops and freedom from Hunger and operated in various capacities ranging from Acting Country Representative, Programmed Officer, Regional Manager, and small Enterprise Trainer, on Health, Education, and Microenterprise support programmers of these named organizations. The expertise drawn in these various fields and the penchant for creating new paradigms to solve problems has been the main driving force for the 51 trained and qualified staff; divinely inspired innovations and extensive team work forms the basis of the companys strength and backbone. Proudly, the company packages and markets various categories of plots including standard (100ft by 70ft), freestyle (100ft by 80ft) and executive plots (100ft by 100ft). The most attractive feature is the suitable and flexible terms of payment starting with just 200 Ghana Cedi and subsequently contributing as low as 100 Ghana Cadis every month for a period of about seven (7) years. The terms of payment are friendly to every pocket from the lower to the middle income bracket. With as low as Gh5 per day payable for seven years, one can own a litigation- free plot of land in gated community. The key attraction in the service delivery are the well defined roads, utilities such as electricity, water and a gravelled road, and security facilities; all in a gated community. Our housing delivery is sensitive to the environment. The use of digesters to manage solid and liquid waste is a precondition at any of our sites. EKIC is making a passionate entry into the housing sector and our target is a modest 1000 houses per year and 200 houses per housing epicentre in each
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region. This is our contribution to the current 1.8 million housing deficit to benefit the lower and middle income class. These people are unable to access houses with prices over and above US$ 200,000 (two hundred thousand US dollars). Elite Kingdom houses cost between GH 45,000 to GH 300,000 for two bedroom units and up to six bedroom units, the client has one to yen years to pay for the houses purchased Elite kingdom believes that the banking sector across the globe is at a credit crunch cross-road and must therefore put a high premium on their human capital in terms of training, and provision of provision of incentives including accommodation for staff. We believe that as a company we are giving hope to hopeless in the in the acquisition of the land and houses. On a passive note, we are relocating people to the periphery of major cities, and reducing industrial strikes. Subtly, we are giving families a predictable life in owning a valuable asset via monthly contributions least 100. Ghana Cadis paid through the various banks. This has directly improved that saving culture of 4,000 clients to our banks, including US and UK based clients cash remittances. Ghanaians in Diaspora are so excited about the deal weve given them as they have become conscious of the fact of putting up their own houses and enjoy their own homes. The current banking culture and work ethic is on a daily basis promoting the alienation of home grown Ghanaian companies which wholly owned by Ghanaian. Its now more convenient for such companies to go in the for microcredit loans at cut throat interest rates than to go for a loan facility from a traditional leading institution demanding a mountain of unavailable collateral. We as a corporate entity believe that there should be a paradigm shift in favour of home grown companies. Our clarion call to the banking sector is to redefine the collateral in teams of the African realities and help design products which will be very convenient for young and very promising companies to be able to stand on their feet. The future holds bright prospects for Elite Kingdom in areas of education to provide Senior High School (SHS) and Universities. The tourism and the hotel arena will provide hotels, hostels, motels and guest houses that are backed up transport facilities. Elite Kingdom therefore hopes to partner with all banking stakeholders who will think alike with us by offering tailor-made collateral facilities that will be beneficial to all in an African setting.

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2.5 Definition of terms It's easy to become confused about these terms: advertising, marketing, promotion, public relations and publicity, and sales. The terms are often used interchangeably. However, they refer to different -- but similar activities. Some basic definitions are provided below. A short example is also provided hopefully to help make the terms more clearly to the reader. Advertising Advertising is bringing a product (or service) to the attention of potential and current customers. Advertising is focused on one particular product or service. Thus, an advertising plan for one product might be very different than that for another product. Advertising is typically done with signs, brochures, commercials, direct mailings or e-mail messages, personal contact, etc. Promotion Promotion keeps the product in the minds of the customer and helps stimulate demand for the product. Promotion involves ongoing advertising and publicity (mention in the press). The ongoing activities of advertising, sales and public relations are often considered aspects of promotions. Marketing Marketing is the wide range of activities involved in making sure that you're continuing to meet the needs of your customers and getting value in return. Marketing is usually focused on one product or service. Thus, a marketing plan for one product might be very different than that for another product. Marketing activities include "inbound marketing," such as market research to find out, for example, what groups of potential customers exist, what their needs are, which of those needs you can meet, how you should meet them, etc. Inbound marketing also includes analyzing the competition, positioning your new product or service (finding your market niche), and pricing your products and services. "Outbound marketing" includes promoting a product through continued advertising, promotions, public relations and sales. Public relations Public relations include ongoing activities to ensure the overall company has a strong public image. Public relations activities include helping the public to understand the company and its products. Often, public relations are conducted through the media that is, newspapers, television, magazines, etc. As noted above, public relations are often considered as one of the primary activities included in promotions.

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Publicity Publicity is mention in the media. Organizations usually have little control over the message in the media, at least, not as they do in advertising. Regarding publicity, reporters and writers decide what will be said. Sales Sales involves most or many of the following activities, including cultivating prospective buyers (or leads) in a market segment; conveying the features, advantages and benefits of a product or service to the lead; and closing the sale (or coming to agreement on pricing and services). A sales plan for one product might be very different than that for another product. An Example of the Definitions The following example from the Reader's Digest, a quote found in "Promoting Issues and Ideas" by M. Booth and Associates, Inc. may help to make the above five concepts more clear. ...if the circus is coming to town and you paint a sign saying 'Circus coming to the Fairground Saturday', that's advertising. If you put the sign on the back of an elephant and walk it into town, that's promotion. If the elephant walks through the mayor's flower bed, that's publicity. And if you get the mayor to laugh about it, that's public relations. If the town's citizens go the circus, you show them the many entertainment booths, explain how much fun they'll have spending money at the booths, answer their questions and ultimately, they spend a lot at the circus, that's sales. Other terms that need to be defined include: Market According to Boone and Kurtz (Contemporary Marketing, 1998), a market is composed of people or institutions with sufficient purchasing power, authority, and willingness to buy. Promotional mix There are seven main aspects of a promotional mix. These are: i. Advertising - Any paid presentation and promotion of ideas, goods, or services by an identified sponsor. Examples: Print ads, radio, television, billboard, direct mail, brochures and catalogues, signs, in-store displays, posters, motion pictures, Web pages, banner ads, and emails. Personal Selling - A process of helping and persuading one or more prospects to purchase a good or service or to act on any idea through
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ii.

the use of an oral presentation. Examples: Sales presentations, sales meetings, sales training and incentive programs for intermediary salespeople, samples, and telemarketing. Can be face-to-face or via telephone. iii. Sales promotion - Media and non-media marketing communication are employed for a pre-determined, limited time to increase consumer demand, stimulate market demand or improve product availability. Examples: Coupons, sweepstakes, contests, product samples, rebates, tie-ins, self-liquidating premiums, trade shows, trade-ins, and exhibitions. Public relations - Paid intimate stimulation of supply for a product, service, or business unit by planting significant news about it or a favourable presentation of it in the media. Examples: Newspaper and magazine articles/reports, TVs and radio presentations, charitable contributions, speeches, issue advertising, and seminars. Corporate image - The Image of an organization is a crucial point in marketing. If the reputation of a company is bad, consumers are less willing to buy a product from this company as they would have been, if the company had a good image. Direct Marketing - is often listed as a the fifth part of the marketing mix Exhibitions - are try-outs. You make your product, and let potential buyers try the product, this way; you know directly what people see in your product. The downside, your competitor can see exactly what you are doing (en.wikipedia.org/wiki)

iv.

v.

vi.

vii.

Boone and Kurtz (Contemporary Marketing, 1998), explain that the promotional mix requires a carefully design blend of variables to satisfy the needs of a companys customers and achieve organisational objectives. Market strategies Market strategies consist of selecting a target market and developing a marketing mix (- overall offer to appeal to the target market) to satisfy that market needs (Burden, et al, 10) Market segmentation Marketing segmentation divides a market into subsets of prospective customers who behave in the same way, have similar wants, or have similar characteristics that relate to purchase behaviour (Burden, et al, 10).

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According to Boone et al (1998), the dividing of the total market into smaller, relatively homogeneous groups is called market segmentation. Both profitoriented and not-for-profit organisations practice market segmentation. Target market Target market is defined as group of consumers or organisations with whom a firm wants to create marketing exchanges (Burden, et al, 2000). According to Boone, et al (200), target market for a product is the specific segment of consumers most likely to purchase a particular product. Customer focus groups Customer focus groups are a group of people sampled from a larger population, interviewed in open session for market research (www.wordweb.info/contact. html). Communication Communication is the process of establishing shared meaning, exchange ideas, or passing information between a source and a receiver. The intended target for any basic communication is the receiver; this could be a consumer reading a magazine ad (Burden, et al, 375) Real estate Real estate refers to a property consisting (www.wordweb.info/contact. html). of houses and land

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CHAPTER 3: METHODOLOGY
This chapter discusses the research design, the population and sample. It also discusses the instruments used in the data collection, the procedure for data collection and the method for data analysis. 3.1 The Research Design The research design used is survey design. Research design is the specific data analysis techniques or methods that the researcher intends to use. The survey design involves the collection and analysis of data, and finding out the answers concerning the current status of the subject. This comprises observation of facts, collection and classification of data, interpretation of data, and formulation of theories. Since human behaviour is difficult and cannot be predicted, it makes the results of the research at times not to be applicable to the population. 3.2 Population The target population is real estate developers and construction firms in Sekondi-Takoradi Metropolis. This include 3.3 Sample And Sampling Technique The convenient sampling procedure will be used to select the population. Thus due to the small population size census sampling technique will be used (Stoker (1985) in A.S. Devos (1998); each of the target population will used. The same procedure will be used within each institution to select employers and employees, and also a simple random sampling will be used within each institution where applicable. 3.4 Instrument A questionnaire is the major instrument that will be used to collect the data. The use of the questionnaire is to get a standard form of answers or response. It will be of both closed and open ended questions. 3.5 Data Collection Procedure Questionnaires will be issued out to each sample unit of the target population. That is to get a fair representation of the finding.

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3.6 Data Analysis Appropriate frequencies and percentages will be used to analyze the data. SPSS (Statistical Package for the Social Sciences) software and Microsoft Excel will be used for all the analysis.

3.7 Research Question The leading questions I intend to pursue are: Do construction firms have a marketing department? Is the marketing department is effective, why? What are the current marketing strategies (mix) being used by a particular construction firm? Approximately how many customers has such construction firm served? What other marketing strategies (mix) should be implemented by such firms to maximise growth and sustainability? What are the critical factors affecting marketing success of construction companies in the housing sector?

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CHAPTER 4: DATA ANALYSIS AND INTERPRETATION OF THE FINDINGS

4.1 Introduction This Chapter consists of the data analysis and the interpretation of all the findings of the research. A total of 40 questionnaires were issued out to three real estate firms and two construction firms in the scope area of the study, and out of the 40 questionnaires 35 was received. With the 35 received, 25 were completely filled, 5 were filled incompletely and 5 were not filled at all. 4.2 Findings from the Firms Section A and B Table 1Profession Distribution of the respondents Profession Architect Quantity surveyor Project manager Valid Structural engineer Marketing director Other Total Frequency
5 10 5 4 2 4 30

Percent
16.7 33.3 16.7 13.3 6.7 13.3 100.0

Cumulative Percent
16.7 50.0 66.7 80.0 86.7 100.0

From Table 1, 16.7% of the respondents were architect, 33.3% were quantity surveyors, 16.7% were project managers, 13.3% were structural engineers, 6.7% were marketing directors and 13.3% were in other professions.

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Table 2 Position Distribution of the respondents Profession Director / principal partner Associate partner Senior staff Valid Trainee / internship Other Total 14 1 30 46.7 3.3 100.0 96.7 100.0 Frequency 5 2 8 Percent 16.7 6.7 26.7 Cumulative Percent 16.7 23.3 50.0

From Table 2, 16.7% of the respondents were director / principal partners, 6.7% were associate partners, 26.7% were senior staffs, 46.7 were trainees / internship and 3.3 were in other positions.

Table 3 Frequency distribution representing the question How long have you worked with the firm? (Duration) Duration less than a year 1-5 5 10 Valid 10 15 Other Total Frequency 11 4 8 5 2 30 Percent 36.7 13.3 26.7 16.7 6.7 100.0 Cumulative Percent 36.7 50.0 76.7 93.3 100.0

With respect to occupation duration, 36.7% workers had worked with their firm for less than a year, 13.3% had worked for 1 5 years, 26.7%, had worked for 10 15 years and 6.7% had worked for over 15 years.
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Table 4, Frequency distribution representing the question; Do you have a marketing department? Marketing Department Yes Valid No Total

Frequency 8 17 25

Percent 32.0 68.0 100.0

Cumulative Percent 32.0 100.0

32% of the respondents answered yes, they do have a marketing department, while 86% said they dont have a marketing department.

Table 5 Frequency distribution representing the question In your own view do you think the marketing department is efficient? Effective Yes Valid No Total Frequency 5 3 8 Percent 62.5 37.5 100.0 Cumulative Percent 62.5 100.0

With the respondents who said they have a marketing department 62.5% of them said their marketing department were effective in the delivering of their work, while 37.5% were of the view that their marketing department were not effective.

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Table 6, Frequency distribution representing the question; What are the current marketing strategies (mix) being used by your firm? Marketing Strategy Advertising Personal selling Publicity Valid Sales promotion other Total

Frequency 10 _ 6

Percent 50.0

Cumulative Percent 50.0

0.0 30.0

50.0 80.0

4 _ 20

20.0 0.0 100.0

100.0 100.0

From table 6, 50% of the respondents said their firms are into advertising, 30% are into publicity and 20% are into sales promotion, while there werent any representation for personal selling and other marketing strategies.

Section C In reference to Section C, the respondents were asked to evaluate the importance level of the main factors leading to marketing success. Table 1 shows the ranking of the factors according to their score and importance level as perceived by the respondents. Company experience, target customer audience, marketing department and marketing activities were considered as the most important factors to marketing success, respectively. According to the evaluation of the sub-factors of company experience, company image was considered as the most important success factor (Table 2). Some of the owners of the companies highlighted the importance of the experience in the housing sector and the quality of their products. Thus, company image seems to be a vital issue in the marketing success, especially with construction companies who basically not into marketing but their good works recommend them. Companys annual business volume was determined as the following important factor.

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Table 1: Main Factors to Marketing Success FACTORS Company experience Marketing department Marketing activities Target customer audience Management support Housing finance condition Total Score
60 55 50 45 40 35 285

Importance level/weight
0.211 0.193 0.175 0.158 0.140 0.123 1

Table 2: Factors of Company Experience FACTORS Company image Companys annual business volume Company age Total Importance level/weight
0.093 0.067 0.051 0.211

Score
55 40 30 125

The majority of the respondents considered customer satisfaction as the most important sub-factor of target customer audience as might be expected (Table 3). This result is in line with the findings of the study of Dikmen, Ozcenk and Birgonul. (2005). They determined that the companies focusing on housing projects for the private sector have more developed marketing perception and utilize marketing functions more effectively. Therefore, these companies can focus more on satisfying customer needs.

Table 3: Factors of Target Customer Audience FACTORS Customer satisfaction Type of customer Total Score
60 30 90

Importance level/weight
0.129 0.064 0.193

Here, marketing department was found as one of the main important factors to marketing success (Table 4). Having a marketing department was considered as the most important sub-factor even though the surveyed construction firms do not have marketing department, they agreed to that fact. Motivation and
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having qualified personnel in the marketing department is also critical for marketing success and this factor was also found as important as might be expected. The study of Dikmen and Birgonul (2003) also showed that motivated personnel can improve marketing capability. Age of the marketing department was determined as the least important factor.

Table 4: Factors of Marketing Department FACTORS Having a marketing department Qualified personnel in the marketing department Number of people in the marketing department Existence of an independent sales department Age of marketing department Total Score
50 45 30 30 20 175

Importance level/weight
0.050 0.045 0.030 0.030 0.020 0.175

According to the results, marketing activities play also an important role in marketing success. Using communication tools was considered as the most important factor (Table 5). Communication tools include e-mail, newspapers, journals, advertising boards, television, internet and brochures. Kotler (1999) defined advertising as any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor. Marketing research and planning were also considered as highly essential activities for success. Table 5: Factors of Marketing Activities FACTORS Communication tools / Advertising Marketing research Marketing planning Public relations Total Score
55 55 50 45 205

Importance level/weight
0.042 0.042 0.039 0.035 0.158

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Yisa et al. (1996) stated that the decision of the most appropriate marketing activities for a company depends on the managers judgement, skill, the market segment and audience. Management support was determined as less important than might be expected. Based on the analysis of the sub-factors of management support, the most important factor was found as the marketing perception of the company (Table 6). The majority of the respondents indicated that top management should have a well-developed marketing perception.

Table 6: Factors of Management Support FACTORS Marketing perception Training Organizational culture Total Score
45 45 45 135

Importance level/weight
0.047 0.047 0.047 0.140

The respondents were asked to evaluate the sub-factors of housing finance condition. Based on the responses, the most important factor was identified as financial capability (Table 7). According to Eryigit (2008), construction and its related sectors will be affected positively by the housing finance system. The majority of the respondents indicated that the financial capability systems can significantly affect their marketing success.

Table 7: Factors of Housing Finance Condition FACTORS Financial capability Credit availability Housing finance systems Housing loans Total Importance level/weight
0.040 0.032 0.028 0.024 0.123

Score
50 40 35 30 155

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4.3 Summary of findings of the study The research was conducted to find out factors affecting marketing success for real estate firms and construction companies in the housing sector with focus on communicational policy in the Sekondi Takoradi Metropolis. The study sought to find out if these firms are into marketing and if they are what factors and strategies they consider in their marketing processes. As anticipated by the researcher, real estate firms were into marketing than construction firms in the housing sector. The constructions firms didnt have marketing departments and they were of the perception that their good works will recommend them or sell them out to potential customers. A senior staff of one of the constructions firms had a brief interview with the researcher, which he disclosed that the laws do not allow construction firms and their workers to engage in marketing, especially structural engineers and architects. Based on the results in Section A and B, fewer of firms had marketing department, and more of those with the marketing have the department to be effective. Also results from Section A and B indicated that advertising, publicity and sales promotion respectively were highly being used by the firms. From Section C, company image, customer and communication tools / advertising satisfaction were determined as highly vital factors for successful marketing in real estate and construction business.

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CHAPTER 5: SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATION OF THE STUDY

This is final section of the research work; it summaries the research work and gives appropriate recommendations to help marketing success of real estate and construction firms. 5.1 Conclusion of the study This study presented the survey carried out among Sekondi Takoradi Metropolis construction companies and real estate firms that operate in the housing sector. The critical factors leading marketing success for construction companies have been investigated through structured questionnaires administered to top-level managers, owners and employees of the companies. According to the results;

Advertising, publicity and sales promotion were considered as vital marketing strategies leading to marketing success. Contractions firms were not into marketing. Communication tools / advertising, company experience, target customer audience, marketing department and marketing activities were identified as the most important main success factors. Customer satisfaction was perceived to be the most important factor resulting in marketing success when considering the importance weights of the factors. Moreover, it was interesting to note that management support was determined as less important than might be expected.

5.2 Recommendations of the study Based on the findings of the research, the following suggestions or recommendations are made: Real estate and construction firms should engage more in marketing to maximise growth and sustainability. To achieve that they must have a marketing department and a marketing personnel or director whose work will be conduction marketing research and formulating marketing activities and policies. Also as indicated by the results, communication tools; advertising, publicity and sales promotion must be look at more critical and taken to be among the most serious factors that will lead to marketing success for real estate firms and construction companies.
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5.3 Limitations and future research directions The findings from the study should be interpreted with caution since the research was limited with only 5 firms. Future researches involving managers/owners of top construction and real estate firms can provide a comparison of the results of studies conducted in other parts of the country. In addition this study focuses on construction and real estate firms in Sekondi Takoradi Metropolis, may have possible industry and location biases. Before generalization can be drawn, further studies are needed to examine the association of other SMEs marketing strategy and business performance in the context of other industries and/or other geographical locations. Nevertheless, this study can be seen as a major step towards examining the association between marketing strategy and business performance of construction and real estate firms in Ghana, and thus adding knowledge to this important area of research.

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APPENDIX QUESTIONNAIRE FOR FIELD SURVEY SECTION A

I would be very grateful if you could provide answers to the questions below. All information given will remain confidential. Please tick [] where appropriate and / or fill in the space where applicable.

What is your profession? [ ] Architect [ ] Quantity surveyor [ ] Project manager [ ] Structural engineer [ ] Marketing director Other (please specify)............................. What is your position/status in your firm? [ ] Director / principal partner [ ] Associate partner [ ] Senior staff [ ] Trainee / internship Other (please specify)............................. How long have you worked with your firm? [ ] less than a year [ ]1-5 [ ] 5 - 10 [ ] 10 15 Other (please specify)............................. What is the current class of your firm? Please state if applicable.....................

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SECTION B 5 Do you have a marketing department? [ ] Yes [ ] No If yes, in your own view do you think the marketing department is effective, why? [ ] Yes [ ] No Why? .................................................................................................................. ................................................................................................................... 7 What are the current marketing strategies (mix) being used by your firm? [ ] Advertising [ ] Personal selling [ ] Publicity [ ] Sales promotion Other (Please specify)........................................................................... ............................................................................................................. 8 Approximately how many customers has your firm served in the last five (5) years? (Please specify).................................................................................... What other marketing strategies (mix) do you think should be implemented by your firm to maximise growth and sustainability? (Please specify)...................................................................................... ..............................................................................................................

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SECTION C This section of the questionnaire is to evaluate importance level of the main factors leading to marketing success. Table 1 shows the main factors to marketing success, while Table 2- 3 represents sub-factors. (Please indicate appropriately)

[1] Not important [2] Important [3] Very Important

Table 1: Main Factors to Marketing Success FACTORS Marketing department Target customer audience Company experience Marketing activities Housing finance condition Management support Importance level

Table 2: Factors of Company Experience FACTORS Company age Company image Companys annual business volume Importance level

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Table 3: Factors of Target Customer Audience FACTORS Customer satisfaction Type of customer Importance level

Table 4: Factors of Marketing Department FACTORS Having a marketing department Existence of an independent sales department Age of marketing department Number of people in the marketing department Qualified personnel in the marketing department Importance level

Table 5: Factors of Marketing Activities FACTORS Communication tools / Advertising Marketing planning Public relations Marketing research Importance level

Table 6: Factors of Management Support FACTORS Training Organizational culture Marketing perception Importance level

Table 7: Factors of Housing Finance Condition FACTORS Housing loans Financial capability Credit availability Housing finance systems
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Importance level

MAP OF SEKONDI-TAKORADI Source: www.google.com/map

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BIBLIOGRAPHY Boone, L. and Kurtz, D. (1998). Contemporary Marketing Wired, Dryden Press, pp 224. Patriche Iulian, Ph.D,(2005) , The role of the communicational policy in the marketing activity of construction organizations, Central Office of State for Special Issues.
Patriche, Iulian (2003).: Piaa construciilor n Romnia, Editura Uranus, Bucureti.

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Dikmen, I., and Birgonul, M.T. (2003). Strategic Perspective of Turkish Construction Companies. Journal of Management in Engineering, Vol. 19, No. 1, pp 33-40. Dikmen, I., Birgonul, M.T., and Ozcenk, I. (2005). Marketing orientation in construction firms: evidence from Turkish contractors. Building and Environment, Vol. 40, pp 257-265.

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