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[ 273 ] Marketing Intelligence & Planning 15/6 [1997] 273–280 © MCB University Press [ISSN 0263-4503] Formulating a strategic marketing mix for quantity surveyors Low Sui Pheng School of Building and Estate Management National University of Singapore, Singapore Kok Hui Ming School of Building and Estate Management National University of Singapore, Singapore The quantity surveying pro- fession has a long history in the building industry. Although the profession has reached maturity, practising quantity surveyors seem to have failed in so far as strate- gic marketing and planning are concerned. Many quantity surveying firms do not have formal written marketing plans. They do not appear to believe that such plans are useful because of uncertain- ties in the construction mar- ket. In view of this lacuna, aims to highlight the impor- tance of strategic marketing and planning to quantity surveyors. Examines the seven Ps in the marketing mix concept for applications in the quantity surveying profes- sion. Quantity surveyors should keep these applica- tions in mind when marketing their professional services. Introduction Among other things, a quantity surveyor provides cost advice to clients and is entrusted to keep a building project to within an agreed budget. The quantity surveyor sees the project through the feasibility study stage to completion. The services offered by a quan- tity surveyor are preliminary cost advice, cost planning, preparation of tender docu- ments, advice on tender methods and contrac- tual arrangements, negotiations with con- tractors, valuation of the works in progress and settlement of final accounts. In today’s competitive marketplace, quan- tity surveyors must now realize that their services, regardless of how good these are, simply do not sell automatically. Quantity surveyors can no longer wait for clients to come by. With improvements in education, advancement in technology and increase in affluence of society, clients have become more discerning as well as demanding on the qual- ity and timeliness of the services they receive. Although aware of the need to improve the way their services ought to be promoted, many quantity surveyors still do not seem to pay enough attention to market- ing. The most common reason cited by quan- tity surveyors for not adopting marketing systematically is that they have been doing well and believe that they will continue to do well without the need for market planning. However, most business enterprises who have undertaken marketing had achieved reward- ing results. They realized that to be market- driven is to be client-driven (Crane, 1993). In essence, marketing is a management function. It is concerned with satisfying clients’ objectives while achieving organiza- tional goals. It begins with an understanding of the needs of clients, the development of services to meet these needs, pricing these services effectively, informing clients about the availability of these services, delivering them efficiently, and ensuring satisfaction during and after the exchange process. Mar- keting is defined by the Chartered Institute of Marketing as “the management function which organizes and directs all those busi- ness activities involved in assessing and converting customer purchasing power into effective demand for a specific product or service, and in moving the product or service to the final customer or user so as to achieve the profit target or other objectives set by the company”. Marketing should therefore be viewed as an essential ingredient in the building and maintenance of a rewarding and profitable professional quantity surveying practice. However, many quantity surveyors have misinterpreted what marketing is all about. Some see it as manipulative, wasteful, intrusive and unprofessional, while most will see it as plain advertising and selling. In recent years, marketing has slowly shed its old image and is increasingly accepted as one of the most important functions in meeting the objectives of a profit-seeking business. Traditionally, production and sales are the two most important functions of any busi- ness. In the early days, most entrepreneurs believed that the quality of their products or services is the only factor that determines sales. However, this may no longer be true in today’s competitive marketplace. Production, sales and marketing should work hand-in- hand to yield the best results. Marketing should be seen as the bridge linking a busi- ness to its potential clients. It is the process responsible for identifying, anticipating and satisfying the client’s requirements prof- itably. In this way, the firm is able to match its products or services to the client’s needs instead of producing something and hoping that clients will like them. With this background in mind, the two objectives of this paper are to: 1 Examine the attributes needed for market- ing professional quantity surveying ser- vices. 2 Prepare quantity surveyors for the adop- tion and implementation of the marketing mix concept. The fieldwork part of this study aims to pri- marily examine how the marketing mix con- cept may be used for strategic planning by quantity surveyors. Twenty quantity survey- ing firms registered with the Singapore Insti- tute of Surveyors and Valuers were approached for this study. After interviewing three firms, a questionnaire was drafted, piloted tested and sent to other quantity

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Page 1: Formulating a strategic marketing mix for quantity surveyors

[ 273 ]

Marketing Intelligence &Planning15/6 [1997] 273–280

© MCB University Press [ISSN 0263-4503]

Formulating a strategic marketing mix for quantitysurveyors

Low Sui PhengSchool of Building and Estate Management National University of Singapore,SingaporeKok Hui MingSchool of Building and Estate Management National University of Singapore,Singapore

The quantity surveying pro-fession has a long history inthe building industry.Although the profession hasreached maturity, practisingquantity surveyors seem tohave failed in so far as strate-gic marketing and planningare concerned. Many quantitysurveying firms do not haveformal written marketingplans. They do not appear tobelieve that such plans areuseful because of uncertain-ties in the construction mar-ket. In view of this lacuna,aims to highlight the impor-tance of strategic marketingand planning to quantitysurveyors. Examines theseven Ps in the marketing mixconcept for applications inthe quantity surveying profes-sion. Quantity surveyorsshould keep these applica-tions in mind when marketingtheir professional services.

Introduction

Among other things, a quantity surveyorprovides cost advice to clients and isentrusted to keep a building project to withinan agreed budget. The quantity surveyor seesthe project through the feasibility study stageto completion. The services offered by a quan-tity surveyor are preliminary cost advice,cost planning, preparation of tender docu-ments, advice on tender methods and contrac-tual arrangements, negotiations with con-tractors, valuation of the works in progressand settlement of final accounts.

In today’s competitive marketplace, quan-tity surveyors must now realize that theirservices, regardless of how good these are,simply do not sell automatically. Quantitysurveyors can no longer wait for clients tocome by. With improvements in education,advancement in technology and increase inaffluence of society, clients have become morediscerning as well as demanding on the qual-ity and timeliness of the services theyreceive. Although aware of the need toimprove the way their services ought to bepromoted, many quantity surveyors still donot seem to pay enough attention to market-ing. The most common reason cited by quan-tity surveyors for not adopting marketingsystematically is that they have been doingwell and believe that they will continue to dowell without the need for market planning.However, most business enterprises who haveundertaken marketing had achieved reward-ing results. They realized that to be market-driven is to be client-driven (Crane, 1993).

In essence, marketing is a managementfunction. It is concerned with satisfyingclients’ objectives while achieving organiza-tional goals. It begins with an understandingof the needs of clients, the development ofservices to meet these needs, pricing theseservices effectively, informing clients aboutthe availability of these services, deliveringthem efficiently, and ensuring satisfactionduring and after the exchange process. Mar-keting is defined by the Chartered Institute ofMarketing as “the management functionwhich organizes and directs all those busi-ness activities involved in assessing andconverting customer purchasing power into

effective demand for a specific product orservice, and in moving the product or serviceto the final customer or user so as to achievethe profit target or other objectives set by thecompany”. Marketing should therefore beviewed as an essential ingredient in thebuilding and maintenance of a rewarding andprofitable professional quantity surveyingpractice. However, many quantity surveyorshave misinterpreted what marketing is allabout. Some see it as manipulative, wasteful,intrusive and unprofessional, while most willsee it as plain advertising and selling. Inrecent years, marketing has slowly shed itsold image and is increasingly accepted as oneof the most important functions in meetingthe objectives of a profit-seeking business.Traditionally, production and sales are thetwo most important functions of any busi-ness. In the early days, most entrepreneursbelieved that the quality of their products orservices is the only factor that determinessales. However, this may no longer be true intoday’s competitive marketplace. Production,sales and marketing should work hand-in-hand to yield the best results. Marketingshould be seen as the bridge linking a busi-ness to its potential clients. It is the processresponsible for identifying, anticipating andsatisfying the client’s requirements prof-itably. In this way, the firm is able to match itsproducts or services to the client’s needsinstead of producing something and hopingthat clients will like them.

With this background in mind, the twoobjectives of this paper are to:1 Examine the attributes needed for market-

ing professional quantity surveying ser-vices.

2 Prepare quantity surveyors for the adop-tion and implementation of the marketingmix concept.

The fieldwork part of this study aims to pri-marily examine how the marketing mix con-cept may be used for strategic planning byquantity surveyors. Twenty quantity survey-ing firms registered with the Singapore Insti-tute of Surveyors and Valuers wereapproached for this study. After interviewingthree firms, a questionnaire was drafted,piloted tested and sent to other quantity

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surveying firms. Twelve firms respondedpositively to the questionnaire survey. Afterthe survey results were analysed, five firms(chosen from among the 12 respondents) werealso interviewed. The findings of this survey,as well as interviews, are discussed below.

History of quantity surveying

No one can actually pinpoint when the prac-tice of quantity surveying began. When theGreat Wall of China was built, there wassomeone to calculate the amount of materialsand the manpower needed. Similarly, theEgyptians also appointed a person to act as aplanner and estimator, someone who prac-tised what the modern quantity surveyor isdoing now, when the pyramids are built.

During the seventeenth and eighteenthcenturies in Great Britain, the few prominentarchitect-builders (such as Sir ChristopherWren) acted as organizing contractors fortheir own designs, ordering materials andhiring local craftsmen. Measurers wereemployed to measure and value the workdone by the craftsmen. They also preparedthe final accounting statements for the archi-tects for payment purposes. By thenineteenth century, modern Bills of Quanti-ties (BQ) started when these measurers set uptheir own business to specialize in the prepa-ration of tender estimates. By the second halfof the nineteenth century, architects realizedthe importance of BQ as these can be used forthe settlement of variations, final accountsand progress payments. In order to saveresources and have standard BQ, they per-suaded building owners to engage the ser-vices of quantity surveyors for their prepara-tion, ready for issue to bidding contractors tosubmit competitive tenders. At around thesame time during the Victorian era, therewas a movement to unionize labour and toform trade guilds. The professional body, theQuantity Surveyors’ Institute, catering ser-vices to building owners was formed whenmeasurers took the opportunity to grouptogether. Another body, the Institute of Quan-tity Surveyors, was formed later. Both bodieshave now merged under the sameprofessional organization known as the RoyalInstitution of Chartered Surveyors.

There was no mention of marketing quan-tity surveying services in the past. However,it was gathered that there is no need for mar-keting. In the past, measurements could beundertaken by architects and engineers.Measurers were additional and were hiredonly when they are required. Hence, thedemand for measurers was not high and theirwork was never considered a profession. Inthe 1970s, the role of a quantity surveyor was

defined to ensure that the resources of theconstruction industry are utilized to the bestadvantage of society by providing inter aliathe financial management of projects and acost consultancy service to clients anddesigners during the whole constructionprocess. The distinctive competence of thequantity surveyor is a skill in measurementand valuation in the field of construction inorder that such work can be described andthe cost and price can be forecast, analysed,planned, controlled and accounted for. Thisdefinition emphasized that the distinctivecompetence or skills of the quantity surveyorwere, in the wider context of the constructionindustry, associated with measurement andvaluation.

In recent years, quantity surveyors havefurther extended their services because of thechanging requirements of the industry. Theyare now also involved with manpower plan-ning, resource control and in assessing theeffects of time on construction projects.Quantity surveyors have also extended theirinfluence in the fields of contracting, civil andindustrial engineering, construction,mechanical and electrical engineering ser-vices as well as project management. Thereare occasions where a quantity surveyor isalso appointed as the project manager for abuilding project from inception to comple-tion, and to co-ordinate the work of the designteam, main contractor and sub-contractors.The duties of a quantity surveyor in differentstages of a construction project are summa-rized in Table I.

Attitudes towards strategicplanning

All the 12 respondent firms, except one, indi-cated that there is no written marketing planwithin their organizations. Interestingly, amedium-sized quantity surveying firm is inthe process of drawing up a marketing plan.This was, however, undertaken by the firmsolely to secure ISO 9000 certification for itsquality management system. The usefulnessof this marketing plan is still unknown.

The main reason given for not having awritten marketing plan was because of thefast changing market environment. Therespondents claimed that before actions canbe taken, changes take place again. Drawingup a plan requires time and financial commit-ments. Hence, it will be wasteful if the plan isnot useful. The respondents also felt that awritten marketing plan is not practical. Onequantity surveying firm claimed that jobs aresecured through personal relationshipsrather than on corporate matters. This find-ing contradicts the general belief that a

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marketing plan can be used to delegate, con-trol and allocate resources within an organi-zation. In particular, larger firms would needto plan more than than their smaller counter-parts because of the complexities commonlyfaced by the former.

Nevertheless, in the absence of a writtenplan, all the respondents do, however, havetheir own informal marketing plans. Theseare usually prepared by the partners or direc-tors. With an informal and unwritten

marketing plan, these firms have actuallyonly complied with part of the requirementsfor strategic planning. Without a writtenformat, these respondents will find it difficultto keep track of deviations from their infor-mal marketing plans. However, they claimedthat regular meetings are held on either anad hoc or weekly basis to monitor progress.

The factors which affect the formulation ofa marketing plan for the larger quantity sur-veying firms are uncertainties in the target

Table IDuties of the professional quantity surveyor

Stage Duties of the quantity surveyor

Feasibility study Initial cost indications based on similar and recently completed buildingsCost implications of site conditions

Outline proposals Preparation of rough estimates based on client’s requirementsAssist client in setting cost limit or budget

Preliminary design Preliminary estimates and preparation of initial cost planGroup element cost targets establishedComparison with client’s cost limit or budget

Detailed design Detailed estimatePreparation of elemental cost plan and amplified cost planElemental cost targets establishedComparison with client’s budget and earlier estimatesCost checks to obtain best solution in each element as drawings are produced

Final design Preparation of tender documentsContinue cost checks and obtain quotations from specialistsPre-tender estimate

Tender period Attend to tenderers’ queriesIssue corrigendum

Tender evaluation Evaluate tenderPrepare reconciliation statement and compare tender sum with estimated costsAdvise on course of action to be takenPrepare cost analysis

Award of contract Prepare letter of acceptance after client has approved tenderCompile documents and prepare for contract documentation

Construction Prepare valuations for payments on account at the intervals stated in the contract and agree with contractor’s quantity surveyorPlot payments on account on “rate of spend” graph and report to architect on any significant divergenceAdvise architect, if requested, on expenditure of provisional sums, measure and value workcarried out by the main contractor against provisional sums (except where lump sum quotations have been accepted) and adjustPrepare estimates of likely cost of variations on receipt of copies of architect’s instructions Later measure and value, check and price daywork voucherAdvise architect, if requested, on expenditure of prime cost sums, check nominated sub-contractors’ and nominated suppliers’ final accounts and adjust contract sum accordinglyPrepare financial reports for architect and client at the same time as interim paymentsCheck main contractor’s claims for increase in costs of labour, materials, levies, contributionsand taxes, etc. if applicable. Alternatively, apply price adjustment indices to amounts includedin interim valuationsMeasure projects based on schedules of rates or on bills of approximate quantities as the workproceeds, either on site or from architect’s drawings, and value at contract ratesAdvise architect, if requested, on contractor’s claims (if any) for loss and expense payments If accepted, negotiate claims with contractor

Completion of Advise on extension of time and imposition of liquidated damagesproject and Finalize project accountsdefects liability Feed back on cost data and prepare cost analysis of completed projects. Contribute toperiod cost database for use in future projects

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market, clients’ needs and requirements aswell as the difficulties posed in identifyingpotential clients. The primary concern of thesmaller quantity surveying firms rests, how-ever, on the availability of resources withintheir organizations. Larger firms are obvi-ously more able, to some extent, to satisfytheir clients’ needs without worrying toomuch about the constraint of limitedresources. The quantity surveying firmsinterviewed have no future plans to improvetheir marketing plans. They felt that theirpresent approach is fine because clients stillcome to them.

The strategy frequently adopted by most ofthe respondents is through communications,both through people and through the media.Some respondents in fact claimed that thisstrategy actually starts all the way from one’sschool days. The classmate whom you knowmay one day become the future managingdirector. Clients would prefer to work withsomebody whom they already know or on therecommendation of someone whom theyknow. The usual practice is to play golf or tohave lunch with potential clients. Becauseprofessional quantity surveyors are notallowed to advertise blatantly, consultancyfirms can only hand out company brochuresto clients during meetings and to put up sign-boards at their construction sites. From theinterviews conducted, it becomes apparentthat there is a trend which traces the market-ing strategy commonly adopted by quantitysurveying firms when marketing their profes-sional services. This trend is shown in Figure 1.

Attitudes towards the marketingmix

The marketing mix concept was explained tothose respondents who have not heard of itbefore. The extended marketing mix for ser-vices consists of seven Ps (Borden, 1965;McCarthy, 1960). These are the product, price,promotion, place, people, physical evidenceand process. Some smaller quantity survey-ing firms have never heard of the seven Psbefore and are obviously not clear of theirimportance to their respective organizations.However, from the field study, it became clearthat different firms have different levels ofemphasis on each of these elements in themarketing mix.

Table II shows the importance of each com-ponent of the marketing mix as indicated bythe 12 responding firms. It can be seen fromTable II that most respondents felt that prod-uct, price and people are the three mostimportant components of the marketing mix.Each of the seven marketing mix componentsis discussed below:1 Product. The objective of most quantity

surveying firms is to satisfy their clients’needs. Hence, the right types of serviceshave to be developed. Firms of differentsizes have the same view concerning fac-tors affecting the services offered to theirclients. These are:• Quality and quantity of services. In order

to provide quality services, quantitysurveyors must be accurate and reliablein their work, be able to solve the client’sproblem and not disregard their respon-sibilities as well as to provide continu-ous information updates for clients.Owing to the characteristics of theirservices, quantity surveyors use BQ andspecifications as tangible products toshow to their clients. Quantity surveyorsmay also need to be well versed in all theservices shown earlier in Table I in orderto offer more services. The larger firmsmay have a greater ability to providemore services than their smaller coun-terparts because the former may providerelevant training for their employees.However, in deciding on the services tooffer, the availability of resources withinthe organization will need to be consid-ered.

• Time frame for producing the service.Meeting deadlines is important becausea delay will cost the client money. Clientswill inevitably be worried when they getno responses from their quantity survey-ors, especially when the deadline for aproject is near. They will feel that theirquantity surveyors are not taking theirjobs seriously.

Figure 1Trend for formulating marketing strategies by quantity surveying firms

Awareness of opportunities

Provide services

Analysis of strengths, weaknesses,opportunities and threats

Promotion

Establish new relationships

Increase client’s confidence

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• Clients’ confidence. Quantity surveyorsmust have the integrity and profession-alism in handling all projects to gaintheir clients’ confidence. Clients mayalso use past track records as a guidewhen choosing the quantity surveyingfirm for their building projects.

2 Price. Price is the means of setting theexchange value between two parties. Theprofessional fees charged will vary fromfirm to firm. Although recommendedscales of fees are available, some quantitysurveying firms may not want to adopt anyof these scales. Hence, other basis like thelevel of competition, nature and size ofprojects and the types of services to beprovided are used to set professional fees.The fees to be charged can also, almostinvariably, be negotiated. The larger quan-tity surveying firms are usually able togive a discount because of their economiesof scale. However, from the survey, thelowest fees which one quantity surveyingfirm was willing to offer is 0.76 per cent.Some firms who are unable to offer lowerfees would try to attract clients by differen-tiating their services from their competi-tors. Some clients are willing to pay moreto engage a firm of good reputation. Hence,it is not fees alone that will attract clients.The image perceived by clients is also ofgreat importance.

3 Promotion. As noted earlier, what most ofthe quantity surveying firms have beendoing is only promotion. The extent ofpromotion also varies from firm to firm.Smaller firms may not want to spend toomuch on promotion due to their limited

budget. In addition, some of the quantitysurveying firms also take part in seminarsto make themselves known, provide eye-catching logos, build up the firm’s reputa-tion through consistent and efficient workand a proper compilation of the company’sprofile and previously completed projects.

4 Place. Most of the larger respondentsclaimed that the location of the firm is notan important factor as clients do not fre-quently visit them. However, a few of thelarger quantity surveying firms arelocated in the central business district.Hence, they must be able to afford higherrentals to be located in more prestigiouslocations. As they are now located nearerto their clients, they will be able to save onthe costs and time of travelling. Some ofthe respondents felt that Singapore iseasily accessible and travelling is rela-tively easy. Hence, it does not really matterwhere their offices are located. They willrather pass on the savings to their employ-ees than pay higher rents.

5 People. All the respondents felt that peopleis one of the most important elements inthe marketing mix. As the services aredespatched through their quantity surveyors, they are in fact the firms’ most valuable assets. Hence, the criteria ofmost firms when selecting new employeesare qualifications, experience and workingattitude. A probation period is imposed onnew employees to try out their perfor-mance. In the case of quantity surveying,larger firms tend to have more opportuni-ties to hire more capable employees asmore people would tend to apply for a job

Table IIResponses of quantity surveying firms to the seven Ps

PhysicalProduct Price Place Promotion People evidence Process

Firm 1 * ***** * **** ***** ** **Firm 2 *** ** ** *** **** * *Firm 3 *** *** ** **** ** ** *Firm 4 ** *** * ** *** *** **Firm 5 **** ** *** ** **** * **Firm 6 *** **** ** * ***** ** ***Firm 7 *** *** * **** **** ** *Firm 8 ** ** ** *** ** ** ****Firm 9 *** **** ** * ** * **Firm 10 **** ** *** ** **** **** **Firm 11 *** ***** *** ** *** ** ***Firm 12 ***** ***** ** **** *** *** ***Key: ***** Very important

***** Important***** Slightly important***** Not very important***** Can be ignored

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with them. Training is still needed toupgrade their staff so that they will be ableto deal more efficiently with their clients.The senior staff or partners can choose atopic for presentation to employees on thestandard procedures for undertaking agiven task. Even the smaller firms areproviding training of this nature becauseit is inexpensive to mount. The frequencyof training is, however, dependent on thefirm’s policy towards staff training.

6 Physical evidence. This marketing mixelement is not determined by the firm’ssize. Some of the firms felt that this is notan important factor in the marketing mixbecause clients will usually place empha-sis on delivering the BQ on time ratherthan on the presentation of the BQ. Otherquantity surveying firms, however, feltthat it is important because this helps toreflect the professionalism in the servicesthey have to offer. Furthermore, BQ areused every month for progress paymentpurposes. Hence, their format must bepresented in the same sequence as theconstruction process. If clients are clear ofwhere cost figures are to be found, theywill be more confident with the resultsdelivered by the quantity surveyor. Thephysical office environment of the quan-tity surveying firm is also important. Witha more pleasant office environment, notonly the clients will have a good impres-sion of the firm, employees will also becomfortable and motivated to producebetter results.

7 Process. Some of the respondents felt thatthere is no need to have standard operat-ing procedures as every project has differ-ent requirements. The quantity surveyorwill usually use his experience to adviseclients. If a standard procedure is to befollowed, the quantity surveyor may feelvery restricted. Nevertheless, otherrespondents felt that procedures areimportant as these provide clients with atangible source of assurance of consis-tency in the services provided. Consis-tency will enhance the corporate image ofthe quantity surveying firm as perceivedby clients.

It can be seen from the field study that theemphasis placed on the seven elements of themarketing mix is different. Some quantitysurveying firms do not see the need to placeany emphasis at all on the seven elements ofthe marketing mix. This is a lacuna whichwill need to be filled for marketing success.The marketing mix concept is a useful modelfor devising appropriate marketing strategiesto ensure success.

Marketing mix for quantity surveyors

To achieve a successful marketing strategy,the firm has to provide not only a target mar-ket but also a marketing programme. Thisprogramme plans how each of the seven mar-keting mix variables (i.e. the seven Ps) can beused as a guide to arrive at the competitiveposition that the firm wants to occupy in thetarget market. The marketing mix used by aparticular firm will vary according to itsresources, market conditions and changingneeds of clients. The importance of someelements within the marketing mix will varyat any one point in time. Decisions cannot bemade on one element of the marketing mixwithout considering its impact on other ele-ments. Details of how each of these seven Pscan be adopted by professional quantity sur-veyors are discussed below:1 Product. The product is actually the ser-

vices to be provided by the quantity sur-veying firm. It varies from firm to firm.The firm is using its services as a vehicleto meet the needs of clients. In this case,the basic services offered by quantitysurveying firms are feasibility studies,financial management, cost valuationsand project management. It is also impor-tant to distinguish between what the ser-vice organization offers and what benefitsconsumers derive from these offers. Quan-tity surveying firms may offer a widerange of services but clients may only needadvice on project management. The qual-ity and quantity of the service are of funda-mental importance. They will affect thevolume of demand for that service and theposition of the firm compared to its com-petitors. In order to, for example, deliverquality service, the firm has to look intothe accuracy and reliability of cost figuresgiven by the quantity surveyor in feasibil-ity studies. The style of presenting thesefigures to clients is also of importance. Todeliver quantity, the firm has to look intothe volume, timing and flow of the servicesit provides.

2 Price. The price is the fees charged toclients by quantity surveying firms. Quan-tity surveying firms used to have precisescales of fees for their clients. Presently,fees are, however, frequently chargedbased on the nature and size of the project.In addition, the fees charged will be higherfor a more complex project compared withthe construction of a simple buildingstructure. There is still room for negotia-tion after the fees are quoted by the quan-tity surveying firm. Generally, the basis

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which firms used to charge fees will varyfrom firm to firm. With increasing compe-tition, quantity surveying firms are nowmore cautious in setting their fees. Theseshould be consistent with the firm’s objec-tives, for example, profit maximization andrepeat business from satisfied clients.

3 Place. Firms should also be concerned withhow accessible their services are to theirclients. Channels are designed by firms todeliver their services more effectively toclients. If the firm’s target segment is in thecentral business district, a head office isbest located in the same area. If the firm isdealing with a large project which will lastfor a substantial period of time, the firmmay want to set up a temporary office onsite.

4 Promotion. The purpose of promotion is tosell a firm’s services through informing,persuading and reminding the market.These are achieved through advertising,personal selling activities and other directforms of publicity and indirect forms ofcommunication such as public relations.For firms which choose to advertise, anadvertising programme will need to bedrawn up to meet professional require-ments and at the same time, portray thefirm’s desired corporate image. Personalselling frequently mixes pleasure andselling together. Top management mayinteract with existing and potential clientsat restaurants, country clubs, alumnigatherings, trade associations and otherplaces where they can, at the same time,enjoy themselves. This form of selling canbe time-consuming and costly. Hence, alimit on capping personal selling may berequired. Some of the public relationstools used may include brochures, newslet-ters, information sheets and sponsorshipof conferences and exhibitions. Whenusing these tools, quantity surveying firmsmust consider their functions and costs.

5 People. The service personnel are the peo-ple who provide the quantity surveyingfirm’s services to its clients. They are theprofessional quantity surveyors. They areimportant because they represent the firmand form the firm’s image through theirbehaviour and attitudes. If service person-nel are cold or rude, they can undermineall the marketing work done to attractcustomers. If they are friendly and warm,they can increase customers’ satisfactionand loyalty (Kotler, 1982). Clients’ percep-tions of the quality of services can also beinfluenced by other clients. There are afew ways in which firms may maintainand improve the quality of their personnelas well as their performance. These are:

• careful selection and training of servicepersonnel;

• activate an awareness towards market-ing within the organization;

• using practices to achieve consistentbehaviour from employees;

• ensuring consistent physical appear-ance;

• reducing the importance of personalcontacts;

• careful control through an internal ser-vice personnel audit.

6 Physical evidence. Physical evidence canhelp to create the environment and atmos-phere where the services are performedand to influence clients’ judgement of thefirm. They can include components likethe physical environment (for example,furnishings, colour, layout and noise), thefacilitating goods that enable the servicesto be performed (for example, specifica-tions and BQ) and other tangible clues (forexample, brochures). It is difficult to mea-sure, define and control the image that isperceived by the client as image can bevery subjective. Hence, there is a need tomanage physical evidence to ensure thatthe image conveyed conforms with theimage desired.

7 Process. Clients are not only interested inthe end results from the quantity survey-ing firm, they are also interested in theprocess of how services are delivered.Clients judge services by the efficiencyand effectiveness of the service process,including the policies and proceduresadopted, the degree of mechanization usedin the service provision, the amount ofdiscretion employees have, the client’sinvolvement with the process of serviceperformance, the flow of information andservice, the appointments and waitingsystem and the capacity levels available.

For a marketing programme to be successful,there is a need to have the right strategy andeffectively execute it. Quantity surveyingfirms have traditionally placed a lot ofemphasis on execution rather than on strate-gic planning as they felt that only action willmake things happen. These firms should nowrealize the importance of planning and to putmore efforts into planning. Nevertheless,there is still a need to strike a balancebetween planning and acting.

Conclusion

This paper presents the results of a study intohow quantity surveyors perceive the market-ing mix concept. It also recommends how theseven elements in the marketing mix may be

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Low Sui Pheng and Kok Hui MingFormulating a strategic marketing mix for quantitysurveyors

Marketing Intelligence &Planning15/6 [1997] 273–280

activated to help quantity surveying firmsmarket their professional services more effec-tively. The development of a marketing orien-tation should be the very first mission of aprofessional service organization seeking tobecome proficient at marketing. It is aboutbeing conscious of a client’s needs and caringfor these needs. It is about identifying cus-tomers and their needs as well as deliberatelydirecting the firm’s resources to satisfy them.A marketing-oriented quantity surveyingfirm can be identified through the helpfulnessof its quantity surveyors in solving its clients’problems.

For quantity surveying firms who have notalready practised this, the process of becom-ing a responsive marketing-oriented organi-zation can take a long time. It will also bedifficult to educate experienced professionalquantity surveyors to make fundamentalchanges to the way they deal with clientsbecause they may feel that their ways haveworked in the past and therefore do not see aneed for change. In addition, they may beafraid to make mistakes when they are unfa-miliar with a different approach. It may alsobe difficult to persuade the less experiencedquantity surveyors to contribute to market-ing efforts because they do not yet havestrong long-term commitments to their firms.They would prefer to focus their energiestowards developing their skills in quantitysurveying rather than on developing market-ing skills. Achieving a marketing orientationcalls for several measures to be taken. Thesemeasures are:1 Top management support. The firm is not

likely to develop a strong marketing orien-tation until top management believes in itand wants to create the climate for market-ing by talking about and encouraging it.Top management should then win supportfrom lower management to influence otherquantity surveyors within the organiza-tion towards marketing.

2 Effective organization design. A profes-sional quantity surveyor who is muchrespected and well versed with marketing

should head the company’s marketingfunction. A simple organization structureshould be retained to keep the functioneffective.

3 In-house marketing training. Seminars, tobe conducted by top management, shouldbe presented to all staff so that their under-standing of marketing can be enhanced.The topics covered should include marketidentification, market segmentation, mar-ket targeting and positioning, marketplanning and control, fees setting, sellingand marketing communication. The firmshould also provide an internal marketingnewsletter to update employees on theimplementation of marketing.

4 Improved personnel practices. The provi-sion of training to staff will only instil theright attributes in them but may be unableto develop the relevant marketing skills. Inorder to rectify such a situation, the firmcan try to hire more client-centred andmarketing-oriented employees. Some indi-viduals are naturally more service mindedand approachable than others and this canbe a criterion for employment.

Finally, rewards can be given to motivateemployees to be more marketing-oriented.Although there is a risk in that employeesmay only concentrate on getting theserewards, with no intention of being genuinelymarketing-oriented, this appears to be by farthe most effective method for quantity sur-veying firms.

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Crane, F.G. (1993), Professional Services Market-ing, The Howarth Press.

Kotler, P. (1982), Marketing for Non-Profit Organi-sations, Prentice-Hall, Inc., Englewood Cliffs,NJ.

McCarthy, J.E. (1960), Basic Marketing: A Manage-rial Approach, Richard D. Irwin Inc., Home-wood, IL.