DATE: 29 th May 2017 VENUE: MORENA HOTEL FACILITATOR DR. OMARI MBURA

INSTITUTION OF SURVEYORS OF TANZANIA (IST)WORKSHOP ON MARKETING TRAINING FOR LAND SURVEYORS AND OWNERS OF SURVEYING FIRMS DATE: 29th May 2017 VENUE: MORENA HOTEL FACILITATOR DR. OMARI MBURA UNIVERSITY OF DAR ES SALAAM

Contents 1. Developing market oriented surveyors 2. Segmenting, targeting and positioning surveyors markets 3. Marketing mix decisions for surveyors 4. Pricing, promotion and distribution strategy 5. Extended marketing mix

Marketing Function in Your organization/firm? Key questions to ask • Is your organization/firm market oriented? • Does it understand its customers? • Does it understands its target market? • How does it position itself in the market? • Does it provide value to its customers? • Does it communicate this value to customers? • Is the marketing function well recognised?

SESSION ONE DEVELOPING MARKET ORIENTED SURVEYORS

1.1 Introduction • Successfully marketing of land surveying business requires a sustained focus on the firm's professional expertise. Today being ethical is also key • Prospective clients want exemplary customer service • Emphasizing these two goals through varied marketing activities gives your land surveying firm a good platform for market growth.

1.1 Introduction • Emphasis on the market segment in which a firm has the most expertise is key. • By focusing on your company's excellence in its top-performing segment, and by showing how a firm provides better service than its competitors, your company will find itself well positioned to increase this segment's revenue.

1.1 Introduction • The making of better services will not necessarily guarantee business success or increased firm performance if not backed by effective marketing. • A need to refocusing on research on the marketing of construction professional services, especially in the surveying firms. • Marketing: one of the essential competences relevant to future surveyors

1.1 Introduction • Ling (2014) listed poor marketing as one of the threats to the Survey profession, since a lot of surveyors do not pay attention to the way their practices are being marketed. • The practice of surveying has expanded. • Novelty value adding services have been added to the portfolio of services available from professional surveyors and clients ought to know which firm is capable of what additional services through marketing. • ----------------

1.2 What is marketing? • Marketing is the management process that identifies, anticipates and satisfies customer requirements profitably • Marketing of professional service is the creation of client satisfying services at a profit to the firm. • The professionals in the construction industry are quantity surveyors, architects, civil and building contractors, estate surveyors, structural and services engineers etc. • Pryor (2001): the entire construction industry is based on ensuring that the owner receives what he requests.

1.2 What is marketing? • The professionals in the construction industry provide highly customized services. Societal Marketing Concept • Survey Management that forgets consequences of their organization in a community they are based leading to: • Conflicts with pressure groups, politicians, general public especially where there are issues of pollution, inaccessible services, or other forms of negative consequences such as no compensation etc. • Balance our need, customers and community

1.2 What is marketing? • If ignored, customers will boycott your services: Examples: surveying activities that are irresponsive to the need of the community and other stakeholders • Therefore: Societal marketing concept = marketing concept + Social responsibility

1.3 Market orientation? • The achievement of organizational goals through meeting and exceeding customer needs better than the competition. • Understanding of customers’ want requires research • It is a business-wide function – it is not something that operates alone from other business activities

1.3 Market orientation? An organisation will tend to perform well when it: • Understands the needs and wants of targeted customers and prospective customers • Delivers superior value by meeting those needs and wants through coordinated activities • Does this while working toward organizational goals • The philosophy of marketing is understood and owned by everyone in the organization

1.3 Market orientation? • Survey consumers are customers in receipt of an economic as well as a social good and therefore thinking customer first is critical. • Surveyors must concentrate on improving existing service delivery including meeting the deadlines and effective customer care. • There is competition to survey related products .

1.3.1 Market Orientation and Surveyors? For Surveyors to be Customer Oriented they need; • Identify its customers and their needs • Develop products/services to meet the needs of the customers!-putting the survey consumer/the customer first. • Deliver the desired satisfaction with a higher quality and reasonable price than competitors • Match its capabilities with customer needs and wants! • Continuously monitor your customers (markets)! • Adopt ‘bottom-up’ and ‘demand driven’ approaches, and decline ‘top down’ and ‘supply driven’ systems of operation • Institutionalize customer oriented culture

For Discussion What are your survey customers need?

1.3.2. Activities done to Customers • Surveying plots for house and premise construction • Surveying farms • Road construction • Mining engagement • Routes for power transmission • Routes for communication networks • Any other? Primarily Positioning on ground

1.3.3 What do we mean by customer? • Current customers • Customers of competitors • Potential customers • Immediate customers such as others in the construction industry(intermediaries) • Final customers • Government entities • Companies • Individuals • Communities

Question for Discussion • What do above mentioned customers need

1.3.4 Surveyors- Customers Needs • Adequate survey supply • Timely, accurate and affordable charges • Prompt response on queries • Prompt services • Excellent customer care • Timely, quality and appropriate technical advice • Timely accurate and reliable information • After sale service?

1.4 Understanding Your Customers Understanding customers will enable Surveyors to; • Know customers needs/demand • Know customers characteristics and bahaviour • Understand customers’ ability and willingness to pay • Enable better planning of existing and new resources • Facilitate better communication • Improve service levels • Keep up-to-date customer records • More easily group the customers into an the appropriate category related to service level • Select the most appropriate service option

SESSION TWO SEGMENTING, TARGETING AND POSITIONING SURVEYORS MARKETS S-T-P

2.1 Market Segmentation • Market segmentation is one of the steps that goes into defining and targeting specific markets. • It is the process of dividing a market into a distinct group of buyers that require different products or marketing mixes. • Opportunities in marketing increase when segmented groups of clients and customers with varying needs and wants are recognized. • The process starts with segmentation then targeting and positioning marketing

2.1 Market Segmentation • Divide a market into separate groups • Tailor a marketing strategy for each group based on ”demand differential”

2.2 Why Define a Market Segment? • Easier to understand customer needs • Focus “whole solution” to a narrower set of customer needs • Easier to become a leader in a smaller market (Big fish in small pond) • More effective use of marketing efforts • Generally more profitable

2.3 Broad Categories • Primarily Land surveying market segments include the real estate, mortgage and construction sectors etc. • Broadly could be segmented into two: • Consumer market • Organizational markets

2.3.1 Bases for segmenting consumer markets

2.4 Market Segments • Government institutions • Private institutions • Non-Governmental Organizations • Private enterprises • Households • Religious institutions • Commercial users.

2.5 Target Marketing • Target marketing is an act of evaluating, selecting and concentrating on those market segments that company can serve most efficiently and effectively • Target marketing strategies: • Undifferentiated marketing, • Differentiated marketing • Concentrated marketing

2.5 Target Marketing Undifferentiated Marketing (Mass Marketing) • Organization has one marketing mix for the entire market. • This strategy rests on the assumption of user homogeneity and/or an implicit acceptance that there is no prior ability to segment a market and so must appeal to all of it. • Organizations follow this strategy on the precept that what’s good for the market is good for them. • Such a strategy is rarely successful because markets are not homogeneous

2.5 Target Marketing Differentiated Marketing • This is the policy of attacking the market by tailoring separate product and marketing programmes for each segment. • This strategy implies an ability to segment a market and to cater for the varying needs of the different segments. • Organizations will tend to concentrate their efforts on selected segments which they will seek to dominate. • They will have several marketing mixes.

2.5 Target Marketing Concentrated Marketing (Niche) • Activities are concentrated on a particular market with a view to achieving a stronger position within that market, e.g. through further investment and/or aggressive marketing. • Organizations will have one marketing mix. • This is often the best strategy for the smaller organizations.

Key Aspect for Digest In groups • Identify one Surveyor and segment its market. Be specific in identifying the market segments (e.g. domestic customers can be segmented into more specific groups). • Identify the target markets that you think have great potential to Surveyors and more efforts should be directed to them.

2.6 Positioning • After targeting the market, Surveyors should position the organization/firm in customers minds • This is done through marketing mix elements

SESSION THREE MARKETING MIX DECISIONS FOR SURVEYORS

3.1 Developing effective marketing strategies for the surveyors • Under the marketing mix companies should create a successful mix of the right product, sold at the right price, in the right place, and using the most suitable promotion when marketing their products or services. • They should also adopt the appropriate physical environment, right people and process in servicing their clients

3.1 Developing effective marketing strategies for the surveyors • These elements appear as core decision variables in any marketing plan. • In construction, place is determined by the project's location; the spread of the offices should be the primary marketing decisions for the professionals to attract clients. • Price, in this case the fee is obviously important, yet the significance of the fee is less important than the contribution the product makes to the overall project price

3.1 Developing effective marketing strategies for the surveyors • In addition, promotion is important in the sense that the professionals in the construction industry enhance the contract offered to the client through effective communication of the benefits of product • Quality people, good physical environment and effective process and positioning are also key to success (8 P’s) • Market research is key

3.1 Developing effective marketing strategies for the surveyors products/ services price place promotion physical evidence people process positioning

3.2.1 Product Components • A product is something offered for sale and satisfies human needs • It entails attributes and benefits offered to customers

3.2.1 Product Components/attributes • Core product—the reason why the customer wants to pay to receive the benefit (e.g., survey) • Actual product—the specific features, such as terms and conditions of the survey assignment; connection that characterize what the customer is buying….use of tangibles • Augmented product—how the customer receives the product e.g. how the survey is delivered…after sale service, guarantee etc

3.2.2 Product/service Strategy • Design a product/service that is either unique,high quality,low-priced or satisfies other customers’ needs! • Plan and develop the right product(s) or service(s) required by the customer at the right price! • Keep in mind the product features that are most important for the customers! • Consider all important attributes and benefits of the product – core product, branding, packaging and labeling, conditions and warranties, after sale service etc.

Reflecting on Your Product Strategy • What product attributes are most important for your customers? • Quality of survey? Price? Terms and conditions? Or something completely different? • What does your product do for the customers? • What do they buy? • Why, how, when and from where do they buy? • Are the buyers the ultimate users of the products?

SESSION FOUR PRICING, PROMOTION AND DISTRIBUTION STRATEGY

4.1 Pricing • What is price? • What the forms of prices charged by Surveyors? • How are the pricing decisions made?

4.1.1 Pricing Strategy • Revenue from customer’s enable the surveyor to maintain their infrastructure as well as covering their administration costs. • But if charges are not properly calculated the revenue collected may be insufficient to cover all of the running costs.

4.1.1 Pricing Strategy Think about these questions • What price do you charge for your products/services? • How does it compare to that of competitors? • Does this price give you a profit? • Do your customers afford the price? • Do you give discounts? Why? Why not? • What are the terms of payment? • Do you charge the same price for all the customer segments?

4.1.1 Pricing Strategy Consider • Costs (price = cost + margin) e.g. survey/sewerage tariffs should recover fixed and variable costs • Connection charges -assessment/documentation, materials, labour and supervision costs • Competition • Demand and customers’ willingness to pay • The quality or value of survey • Government control e.g. price control • Taxes (if any) • Volume of sales • Economic condition

4.2 Promotion Strategy Think about these questions • How do you make your services known to your customers? • How do you persuade / encourage customers to buy your services? • Which media do you use to communicate your services and what will it cost you? • How do you choose between the media?

4.2.1 How Do you Promote Your Business?

DATE: 29 th May 2017 VENUE: MORENA HOTEL FACILITATOR DR. OMARI MBURA