Factors determining the marketing strategies of construction firms: construction professionals' perspective

Main Article Content

Imoleayo Abraham Awodele
Adesoji Anthony Adegboyega
Onyinye Sofolahan
Abdullahi Adamu
Kenneth John Saidu

Abstract

Construction firms are not dedicated to the comprehensive adoption of marketing concepts and strategy, and thus do not enjoy the benefits of profit maximization, client satisfaction and loyalty and improved overall organizational performance. The purpose of this paper is, to assess the perception of construction professionals regarding the factors influencing the choice of marketing strategies adopted by their construction firms. A questionnaire survey approach was used in the study. The questionnaires were administered to construction professionals within the study area, Frequency, Percentile, Mean item score and Kruskal-Wallis test were used to analyses the data collected. The study found that employees' competence, technical knowledge of the firm, macroeconomic environment, and innovation are the major factors that influence the choice of marketing strategy. It was concluded that a firm's employee's knowledge and competencies and technological innovation plays a critical role in the adoption of suitable marketing strategies in the construction industry. In addition, there is agreement among construction professionals regarding the factors influencing the choice of marketing strategies adopted by their firms. This study adds to the body of knowledge existing on marketing and marketing strategies in construction organizations in Nigeria.

Article Details

Section
Articles
Author Biographies

Imoleayo Abraham Awodele, Federal University Of Technology Owerri

QUANTITY SURVEYING

Adesoji Anthony Adegboyega, Waziri Umaru Federal Polytechnic Brinin Kebbi

QUANTITY SURVEYING

Onyinye Sofolahan, Lagos State Polytechnic

QUANTITY SURVEYING

Abdullahi Adamu, Federal Polytechnic Nasarawa

QUANTITY SURVEYING

Kenneth John Saidu, Federal University of Technology Minna

QUANTITY SURVEYING

References

ADLER, P. (2001) Market, hierarchy, and trust: the knowledge economy and the future of capitalism. Organization Science, v. 12, p. 214–34.

AGHIMIEN, D. O.; OKE, A. E.; AIGBAVBOA, C. O. (2018) Barriers to the adoption of value management in developing countries. Engineering, Construction and Architectural Management, v. 25, n. 7, p. 818-834.

AGHIMIEN, D. O.; AGHIMIEN, E. I.; FADIYIMU, A. O.; ADEGBEMBO, T. F. (2018) Survival strategies of built environment organisations in a challenging economy. Engineering, Construction and Architectural Management, v. 25, n. 7, p. 861-876.

AKINTOYE, A. (200) Analysis of factors influencing project cost estimating practice. Construction Management and Economics, v. 18, n. 1, p. 77-89.

AKPAN, A. B. (2003) Marketing strategy concept and Application, 2nd ed., 2003.

AKROUSH, M. N. (2012) An empirical model of marketing strategy and shareholder value: A value-based marketing perspective. Competitiveness Review: An International Business Journal, v. 22, n. 1, p. 48-89.

AL-SOBIEI, O. S.; ARDITI, D.; POLAT, G. (2005) Managing owner’s risk of contractor default. Journal of Construction Engineering and Management, v. 131, n. 9, p. 973–978.

ALVESSON, M.; SPICER, A. (2012) A stupidity-based theory of organizations. Journal of Management Studies, v. 49, n. 7, p. 1194-1220, 2012. doi: 10.1111/j.1467-6486.2012.01072.x.

ALWASHI, J. D.; CHITUMU, D. Z.; BOBAI, I. A. (2017) An assessment on the use of marketing strategies in the Nigerian construction industry: A case study of North West and North Central Nigeria. Paper presented at the 27th Biennial conference of the Nigerian Institute of Quantity Surveyors. NAF Conference Centre and Suite, Kado, Abuja.

ANTARIKSA, Y. (2014) Factors Shaping the Choice of Strategy. Retrieved on August 5, 2018, from http://www.studymarketing.org/articles/Strategic_Management/Factors_Shaping_the_Choice_of_Strategy.html .

ARSLAN, G.; KIVRAK, S.; TANKISI, M. (2009) Factors affecting marketing success for construction companies in the housing sector”, 5th International Conference on Construction in the 21st Century (CITC-V), Collaboration and Integration in Engineering, Management and Technology, May 20-22, Istanbul, Turkey.

AWE, E. M.; STEPHENSON, P.; GRIFFITH, A. (2009) An assessment of education and training needs of skilled operatives within the Nigerian construction industry. In: Dainty, A. (Eds), Proceedure. of 25th Annual ARCOM conference, 7-9 September, 2009, Nottingham, UK, Association of Researchers in Construction Management.

AYOPO, B. A. (2011) Effects of microfinancing on micro and small enterprises (MSEs) in Southwest Nigeria”, PhD thesis, department of banking and finance, College of Development Studies, Covenant University, Ota, Nigeria.

BAMBER, G. J.; LANSBURY, R. D.; WAILES, N. (2004) Introduction. In BAMBER, G. J.; LANSBURY, R. D.; WAILES, N. (eds.), International and Comparative Employment Relations: Globalisation and the Developed Market Economies, Sydney: Allen and Unwin.

BARON, P. D. (2010) Business and Its Environment, 6th ed., Pearson Education LTD., p. 33.

BENNETT, R. (2005) Marketing policies of companies in cyclical sector; an empirical study of Construction industry in the United Kingdom.

BHAT, A. (2019). Ordinal Scale: Definition, Level of Measurement and Examples. Retrieved on (5 June, 2019) from https://www.questionpro.com/blog/ordinal-scale/amp/

BLAXTER, L.; HUGES, C.; TIGHT, M. (2001) How to Research, 2nd ed., Open University Press, London.

DAVENPORT, T.; PRUSAK, L. (1998) Working knowledge. Cambridge, MA: Harvard Business School Press.

DULAIMI, M. F.; SHAN, H. G. (2002) The factors influencing bid mark-up decisions of large and medium-size contractors in Singapore. Construction Management and Economics, v. 20, n. 7, p. 601–610. http://dx.doi.org/10.1080/ 01446190210159890.

EZE, E. C.; SOFOLAHAN, O.; ONYEAGAM, O. P.; MUHAMMED, U. (2018) Construction professionals’ perception of the marketing strategies employed by construction firms in Abuja, Nigeria. Journal of Construction Project Management and Innovation (JCPMI), v. 8, n. 2, p. 1905-1925.

EGESA, K. A. (2011) Indigenous firms’ survival in Uganda: is there a role for increased technology use? The Bank of Uganda Journal, v. 4, n. 1, p. 81-108.

ENERSON, M.; ROGER, B. M.; KAREN, M. C. (2016) Factors that influence the marketing of professional services. Investment Management and Financial Innovations, v. 13, n. 3, p. 118-130.

FELLOWS, R. R.; LIU, A. (2008) Research Methods for Construction. 3rd ed., Wiley-Blackwell Science, London.

GHASEMI, A.; ZAHEDIASL, S. (2012) Normality Tests for Statistical Analysis: A Guide for Non-Statisticians, International Journal of Endocrinology and Metabolism, v. 10, n. 2, p. 486–489.

GICHUKI, L. M.; OGOLLAH, K. (2014) Factors influencing the choice of marketing strategies of commercial banks in Kenya. The Strategic Journal of Business & Change Management, v. 2, n. 24, p. 450-474.

GRANT, R. (1996) Toward a knowledge-based theory of the firm. Strategic Management Journal, v. 17, p. 109–22.

GYAMFI, K. A. (2015) Factors affecting the adoption of e-marketing among SMES; Case Study of Selected SMES in the Kumasi Metropolis, Ashanti Region. MSc. Thesis Kwame Nkrumah University of Science and Technology, Kumasi, Ghana.

HUANG, L.; ABU-SALIH, M.; MEGDADI, Y. (2013) Factors Influencing the Formulation of Effective Marketing Strategies of Chinese Businesses Operating in Jordan. International Journal of Business and Social Science, v. 4, n. 2, p. 156-169.

KANAGAL, N. B. (2013) Promotions as business transactions. Journal of Management and Marketing Research, p.1-13.

KOGUT, B.; ZANDER, U (1992) Knowledge of the firm, combinative capabilities, and the replication of technology. Organization Science, v. 3, p. 383–397.

Kothari, C. R. (2004) Research Methodology; Methods and Techniques, 2nd ed., New Age International, New Delhi.

KOTLER, P.; KELLER, K. (2009) Marketing management. 13th edition, Pearson Education, Inc. upper saddle, New Jersey.

KREJCIE, R. V.; MORGAN, D. W. (1970) Determining sample size for research activities. Educational and Psychological Measurement, v. 30, p. 607-610.

KUNHUI, Y. (2009) Modeling completion intensity in construction market. PhD Thesis, submitted to the Department of Building and Real Estate, the Hong Kong Polytechnic University.

LANGFORD, D.; MALE, S. (2001) Strategic Management in Construction. JohnWiley & Sons.

LEE, C. S.; YANG, Y. S. (2001) Impact of export market expansion strategy on export performance. Marketing Review, v. 7, n. 4, p. 41-52.

MAGU, M. W. (2014) Factors influencing marketing strategies adopted by Nakumatt supermarket retail chain in Nairobi. MSc. Thesis, school of business, university of Nairobi, Kenya.

MAS-RUIZ, F. J.; NICOLAU-GONZÁLBEZ, J. L.; RUIZ-MORENO, F. (2002) Foreign expansion strategy and performance. International Marketing Review, v. 19, n. 4, p. 348-368.

MATIMBE, P. (2014) Assessment of Factors Affecting the Choice of Marketing channel For Broilers in Bindura District of Zimbabwe: A Tobit Application, 2014. Accessed on (April 10, 2018) from https://www.academia.edu/4305536/Assessmet_of_factors_affect_marketing_channel_choice_A_Tobit

MESHKSAR, S. (2012) Cost and Time Impacts of Reworks in Building a Reinforced Concrete Structure. MSc. Thesis. North Cyprus, Gazimagusa: Eastern Mediterranean University.

MOCHTAR, K. (2000) Market-based pricing in construction. Ph.D. Dissertation, Illinois Institute of Technology, Chicago, 2000.

MOCHTAR, K. (2001) Pricing strategy in the Indonesian construction industry. Research Report, Research Foundation-Indonesian Institute of Technology, Serpong.

MOCHTAR, K. (2004) Marketing expenditures in the Indonesian construction industry. Civil Engineering Dimension, v. 6, n. 2, p. 64–71.

MOCHTAR, K.; ARDITI, D. (2001) Pricing strategy in the US construction industry. Construction Management and Economics, v. 19, n. 4, p. 405–415

MOKHTARIANI, M.; SEBT, H.; DAVOUPOUR, H. (2017) Construction Marketing: Developing a Reference Framework. Hindawi: Advances in Civil Engineering, p. 1-14. dio:10.1155/2017/7548905

MOSER,C. A.; KALTON, G. (1999) Survey methods in social investigation, 2nd ed., Gower Publishing Company, Aldershot.

MUSA, H.; LI, S. C. H.; ABA, Z. A. A.; MOHAMAD, N. (2016) Factors influencing the adoption of mobile marketing in small medium enterprises (SMES) in Malaysia. The European Proceedings of Social & Behavioural Sciences, p. 457-463. DOI:10.15405/epsbs.2016.08.65

NARANJO, G.; PELLICER, E.; YEPES, V. (2011) Marketing in the construction industry: State of knowledge and current trends. Dyna (Medellin Columbia), v. 78, n. 170, p. 245-253.

NISA, Z.; ROSHANI, P.; THURAIRAJAH, N. (2006) Career Paths in Quantity Surveying. In. RAMEEZDEEN, R.; SENEVIRATNE, I. (Eds). Customising the QS to Face Challenges in Year 2020, Colombo: University Of Moratuwa.

NNADI, E. O. E.; OKEKE, F. N.; ALINTAH-ABEL, U. (2016) Marketing quantity surveying profession in south-eastern Nigeria. IOSR Journal of Mechanical and Civil Engineering (IOSR-JMCE), v 13. n. 3, p. 12-20.

ODE, M. O. (2007) Fundamental of marketing principles and applications. Poly communication, Kaduna.

ODEDIRAN, S. J.; BABALOLA, M. O.; ADEBIYI, H. A. (2013) Assessment of business development strategies in the nigerian construction industry. Journal of Business and Management, v. 2, n. 1, p. 34-45.

OGBU, C. P. (2015) Application of marketing strategies in Nigerian quantity surveying firms. Journal of Economics and Sustainable Development, v. 6, n. 16, p. 30-43.

OGBU, C. P. (2017) Marketing Strategies and Performance of Indigenous Construction Firms in Nigeria. Journal of Construction in Developing Countries, v. 22, n. 1, p. 1–19.

OJO, G. K. (2011) Effective marketing strategies and the Nigerian construction professionals. African Journal of Marketing Management, v. 3, n. 12, p. 303–311.

OLANIYI, J. O. (2014) Developing a framework for the marketing of quantity surveying services. MSc Thesis, ABU, Zaria, Nigeria.

OLANIYI, J. O.; SANNI, M.; GARBA, A. (2011) Marketing of professional services in Nigeria” (a case study of quantity surveying profession), Environ - Tech CES Kaduna Polytechnic Journal, v. 1, n. 2, p. 35-42.

OYEYIPO, O. O.; ODUSAMI, K. T.; OJELABI, R. A.; AFOLABI, A. O. (2016) Factors Affecting Contractors' Bidding Decisions for Construction Projects in Nigeria. Journal of Construction in Developing Countries, v. 21, n. 2, p. 21–35.

PALLANT, J. (2005) SPSS Survival Manual: A Step By Step Guide to Data Analysis Using SPSS for Windows (Version 12) 2nd Edition, Allen & Unwin, Crows Nest NSW 2065 Australia,

POLAT, G. (2010) Using ANP priorities with goal programming in optimally allocating marketing resources. Construction Innovation, v. 10, n. 3, p. 346–365.

POLAT, G.; DONMEZ, U. (2010) Marketing management functions of construction companies: evidence from Turkish contractors. Journal Civil Engineering Management, v. 16, n. 2, p. 267–277.

RAMASWAMY, V. S.; NAMAKUMARI, S. (2009) Marketing Management (4th ed.) Mumbai: Macmillan Publishers India Ltd.

RUST, R. T.; AMBLER, T.; CARPENTER, G. S.; KUMAR, V.; SRIVASTAVA, R. K. (2004) Measuring marketing productivity: current knowledge and future directions. Journal of Marketing, v. 68, p. 76-89.

RWELAMILA, P. D.; MACHETE, S. M. (1997) marketing development in civil engineering consultancy firms in South Africa”. In: STEPHENSON, P. (Eds.), 13th Annual ARCOM Conference, 15-17 September 1997, King's College, Cambridge Association of Researchers in Construction Management, v. 2, p. 607-22.

SUSHIL, S. ; VERMA, N. (2010) Questionnaire validation made easy. European Journal of Scientific Research, v. 46, n. 2, p. 172-178.

TAN, W. C. K. (2011) Practical research methods. Pearson Custom, Singapore.

THODE, H. J. (2002) Testing for normality. New York: Marcel Dekker.

WIKSTRÖM, S.; NORMANN, R. (1994) Knowledge and Value: A New Perspective on Corporate Transformation. London: Routledge.

YAN, S.; CHEW, D. A. S. (2010) An investigation of marketing strategy, business environment and performance of construction SMEs in China. African Journal of Business Management, v. 5, n. 6, p. 2396-2405. DOI: 10.5897/AJBM10.1153

YISA, S. B.; NDEKUGRI, I. E.; AMBROSE, B. (1996) A review of changes in the UK construction industry: Their implications for the marketing of construction services. European Journal of Marketing, v. 30, n. 3, p. 47-64.

YISA, S. B.; NDEKUGRI, I. E.; AMBROSE, B. (2004) Marketing Function in U.K. Construction Contracting and Professional Firms. Journal of Management in Engineering, v. 11, n. 4, p. 27-33.