BECM 4101: Project Financing and Construction Marketing

e-Business Development & e-Marketing

Prepared by: Md. Tareq Hossain Khondoker

Department of Building Engineering and Construction Management, KUET
E-mail: tareq2205@gmail.com

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 E-BUSINESS DEVELOPMENT
E-BUSINESS
e-business or online business or is any kind of business or commercial transaction that includes
sharing information across the internet.
Commerce constitutes the exchange of products and services between businesses, groups and
individuals and can be seen as one of the essential activities of any business. Electronic commerce
focuses on the use of ICT to enable the external activities and relationships of the business with
individuals, groups and other businesses, while e-business refers to business with help of the
internet.
THE INFLUENCE OF THE “IT” INDUSTRY
The great challenge for the construction industry this decade must be to find new ways to exploit
the opportunities offered by this rapidly evolving technology. But, just as construction clients
commission the industry to deliver its bricks and mortar solutions, so the IT industry is behind
every e-business development used by construction.
The IT industry itself is a major driver for change. It is always looking for new ways to make
money, and is therefore constantly coming up with new ideas and applications. The construction
industry must respond by firstly keeping up to date with what is happening in the online world,
and secondly, by ensuring it then exploits these new developments to the full. If you do not, your
rivals somewhere else in the construction industry will – you can be sure of it.
THE ONLINE ‘PROJECT ROOM’
An easy example is the project extranet, or ‘online project room’, which is now a well-used internet
application in construction. The aim of the project extranet is to provide an area on the Internet
through which all documents, project programmes, drawings, correspondence, communications
and even payments can pass on individual and multiple contracts. Entry to the extranet is restricted
to those involved, with some people having access to everything (e.g. the client and the project
manager) and others having access to only those parts which affect them (e.g. materials suppliers
and contractors). In particular, with only one ‘master set’ of drawings in circulation, held on the
project extranet central server, revisions can easily be made and checked by all involved.
THE ONLINE CONSTRUCTION PROJECT
How can the Internet and e-business so fundamentally change and improve how construction
works? It sounds great in theory, but what must the construction marketeer actually be doing in
practice on a day-to-day basis?
To illustrate this the author will look at the main elements of a construction project, and explain in
outline how e-business can be used to transform individual parts of the construction process and
individual relationships with those involved.

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To give the project some shape, let us think of it as a new £20m edge-of-town leisure centre that
will be owned and operated by BigTime plc, an expanding group wanting to gain a reputation for
progressive developments that appeal to high spenders.
The germ of an idea

Someone at BigTime has a germ of an idea, which triggers off the need for more information. This
includes research for use in their feasibility study into the viability of the project, for sourcing the
right advisers and for finding suppliers that could meet their requirements. What better resource
for the BigTime exec team to turn to than the Internet? BigTime will:

 Need to know where land is available, and will probably register with Web-based property
databanks as well as enquiring through normal agents.
 Find out how online property finding services can help its search, and register on selected
sites.
 Research the consumer demographics, trends and spending statistics for potential locations
by downloading data from websites such as the government’s www.statistics.gov.uk.

As you can see, for the construction marketeer, several opportunities are already opening up for
sponsoring or advertising on these Web-based sources of information.

The next step

Having completed the feasibility study and land option successfully, the next step for BigTime is
to translate the leisure centre concept into something more tangible prior to the planning
application. And this means finding a good architect. The BigTime team is not convinced the
architect from its last development has sufficient skill, so it is off to the Web again where it finds
GreatArch, an up-and-coming practice. GreatArch has just gone live with its new website covering
all its core architectural disciplines, including some award winning developments in the leisure
industry.
Architects often shy away from overt marketing, but it is just as important for professional service
providers as for everyone else. A well designed website, which loads quickly, has clear navigation
and plenty of good case studies, should be a priority for any architect nowadays. And if properly
coded and promoted by the web developer, the site should achieve a high search engine listing.
So, when BigTime types ‘architects for leisure centres’ into the search engine, up comes the
GreatArch site – hopefully on page one – and BigTime immediately sees the practice as a strong
contender for the project.

Sourcing suppliers

GreatArch is appointed and its design team swings into action. Plans need preparing, materials
chosen, planning approval secured and potential tenderers shortlisted. For the construction
marketeer, this is a crucial time. GreatArch has been receiving regular e-newscasts from several
suppliers of technically advanced materials that would be just right for a job like this. The e
newscasts were very low cost for the companies to produce, and much more acceptable than old
fashioned newsletters. They now prove their worth as the GreatArch team is already familiar with
what these companies offer, and for some materials, it does not bother to hunt out further suppliers.

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GreatArch particularly likes two companies who have drawn attention to their online knowledge
banks, which are full of standard specification details and CAD drawings which can be inserted
straight into the design – saving GreatArch a lot of effort and cost. These suppliers really are using
the Internet well, thinking about the specifier’s problems and trying to position themselves as
‘partners’. They are certainly positioning themselves well with GreatArch.

GreatArch has to find suitable contractors too. The team uses the construction industry directories
to see what contractors are doing – in some cases quite literally. They notice that some contractors
have installed webcam to provide live pictures of what is happening on projects which can be
viewed via their company website – either on open access or in a password protected area. This is
an excellent marketing tool, and will also be of considerable help to GreatArch and BigTime. It
would mean they can see what is happening on the project without always having to travel to the
site, saving money and time, especially for busy executives. Webcam images can be automatically
archived, which means there is always a contemporary photographic record to fall back on to
reduce disputes.
A few other good uses of the Web, plus a check on the level of expertise offered in this type of
work, soon convinces GreatArch that the contractors and suppliers who have adopted an e-business
approach will give good value for money on the BigTime job and justify their recommendation.
Short lists are drawn up accordingly.

Tendering

Tendering for the project is all carried out online, with no paperwork exchanged. One contractor
falls by the wayside at this stage. It claimed to know all about the e-business approach, but its
capability is eventually found to be skin deep. It has a good website and good marketing, but is let
down by some of its operational people and inadequate internal (back office) electronic systems.
It has not spent enough time thinking the processes through, and has ended up with two cultures –
e-business and ‘the old way’. Perfectly understandable. Nobody said e-business adoption would
be easy. At least it was trying.

Training

When making decisions on plant, materials and equipment, an interesting factor emerges – use and
maintenance. BigTime is worried about its responsibilities for staff training in these areas and
knows that increasingly, training will be a health and safety issue. Inadequate training could lead
to legal action either from the public or from BigTime’s own staff which, in the leisure market,
has quite a high turnover rate. But training in specialist plant, materials and equipment is
expensive. Here, e-learning swings the balance. Several suppliers have designed special Web-
based training courses for installers and end-users of their products.

e-Training courses are quite different from normal courses where a tutor is present. The courses
are shorter but more numerous and are often accompanied by an automatically marked test which
can produce a certificate or qualification straight away. Contractors can use the courses to find out
how to fix the products and, once the centre is opened, BigTime’s staff can train and retrain on
their use and maintenance whenever they wish. Learning can be delivered in all Web-based
formats with sound, video, animation and interactivity all helping to make learning more effective.

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GreatArch sees this as a major contribution to safety and to the whole-life objectives of the scheme
and BigTime agrees. A computer training area is added to the construction site offices, for use by
all personnel, and a similar permanent facility is put into the leisure centre. From now on, any
supplier marketing e-learning as part of its support package for products has a clear advantage.

Handling public relations

As soon as site excavation gets underway, a problem arises which could be disruptive if not
handled well by the on-site team. Despite a painstaking environmental impact assessment and
widespread local consultation, the project finds itself the subject of pressure group action.
GreatArch and the contractor work together to run a project-specific website for use as a
communications channel to the public and, especially, to the media, for whom regular online press
packs are provided.
So often, poor external communication can undo much good technical work. However, on this
occasion, by giving people the facts about what is happening and what to expect, the initiative
stays with the project team. Expensive and time-consuming disruption is avoided and, just as
important, BigTime’s Board of Directors appreciates the effective contribution of technology in
avoiding bad publicity – this is good marketing for the next BigTime project, for architect and
contractor alike.

Using application software

One of the areas where e-business can transform the construction process is in application
software. You do not have to continue to buy software in the conventional and costly way.
Software can be provided online by product and service suppliers, for example to help with the
design of a special part of the project, or it can be shared with a number of other users on a remote
server, as with market research or questionnaire systems. One use for the BigTime leisure complex,
and an outcome of the pressure group problem, is an online quarterly feedback questionnaire to
500 nearby residents to assess their real feelings about the project. These turn out to be reassuringly
positive. An application form with e-commerce payment facility is added offering discounted rates
for early subscribers to BigTime’s membership scheme. This is good public relations for BigTime,
and a number of residents sign up. Another example of commercially available application
software used by BigTime is a project extranet like the one described earlier in this chapter. It has
the added advantage of alerting key members of the team to project changes requiring their
decision by texting them on their mobile phones anywhere worldwide and giving them a set time
to respond. This highlights the Internet’s use in cross-platform integration, which can extend to
bring various communication devices together whether connected by landline or operating over
remote links such as satellite. With almost all the project’s data now Web based, the project
extranet and common e-business culture of the various organizations involved make it much easier
to manage the project reporting. By the time the centre is complete, the project extranet is credited
with saving six weeks on the construction time and over £600k in costs.

Legal checks

A factor not overlooked by BigTime’s legal eagles is the regulatory controls needed for Internet
activity, which is slightly different to standard legislation. Terms, disclaimers and privacy

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statements should be in place for all Internet uses, especially websites. This particularly applies to
suppliers and their products. With websites being visible worldwide, the construction marketer in
a product company should, among other things, check whether there are any countries in which
the products are not legal, for example due to their materials, packaging, or recommended use.
BigTime’s lawyers provide useful guidelines and confirm that Cyber Insurance, giving cover for
such eventualities as e-mail libel, is in place for the project.

Ongoing marketing and communications

Towards the end of the project, the main contractor draws up a directory of e-mail addresses for
every individual involved. This will be invaluable during the maintenance period. Contractors’
people move so often that tracking them down to answer a small but important defects question
can be difficult. An e-mail address can be the only static link to an individual once they leave the
project. As an aside, the product and plant hire suppliers are keen to get hold of this list too, as it
is an excellent database for their next e-newscasts and marketing campaigns.

E-MARKETING
E-MARKETING
e-Marketing (Electronic Marketing) are also known as Internet Marketing, Web Marketing, Digital
Marketing, or Online Marketing. E-marketing is the process of marketing a product or service
using the Internet. e-marketing not only includes marketing on the Internet, but also includes
marketing done via e-mail and wireless media. It uses a range of technologies to help connect
businesses to their customers.
FORMS OF ONLINE MARKETING
1. Content Marketing
If you’ve ever clicked through a company’s blog, you’ve seen content marketing at work. Content
marketing involves creating valuable written content for your audience that doesn’t sell to them
directly. The goal here isn’t to write “10 Reasons Why Pay Kickstart is the Best Company on the
Planet” — instead, consider articles like 5 Elements of a High-Ranking, Better-Converting Product
Page. The content provides value in and of itself, whether or not the reader chooses to work with
you or not.
2. Search Engine Optimization
SEO might be the first thing that comes to mind when someone says “online marketing.” The goal
of SEO is to get organic traffic to your website just by making sure your webpages rank highly for
specific keywords. By manipulating your web copy, altering how your website is organized,
making sure your website loads smoothly, and other traits, you can show up higher in search engine
results.

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3. Social Media Marketing
Whether it is pictures on Instagram or posts on Facebook, social media marketing is all about using
popular social media platforms to market your business. Social media marketing is a great way to
draw in new customers through funny, thoughtful, or relatable content.
4. Email Marketing
Just like it says on the package, email marketing is using emails to promote your business —
anything from periodic newsletters to special discounts and offers. Unlike some social media
platforms, virtually everyone has an email address, so a good email marketing campaign can target
a wide audience and generate good leads for your business.
5. Affiliate Marketing
Affiliate marketing is an underutilized marketing technique which relies on affiliates — or people
outside of your business — to market for you. Affiliates post specific links to your business on
their website, blog, or social media account, and receive a commission for every person who makes
a purchase from your business through that link.
ADVANTAGES OF E-MARKETING
 Much better return on investment from than that of traditional marketing as it helps
increasing sales revenue.
 E-marketing means reduced marketing campaign cost as the marketing is done through the
internet
 Fast result of the campaign as it helps to target the right customers.
 Easy monitoring through the web tracking capabilities help make e-marketing highly
efficient
 Using e-marketing, viral content can be made, which helps in viral marketing.
 Companies can reach a wide customers for a small fraction of traditional advertising
budgets.
 Convenient to research and purchase of goods and services.
 24/7 marketing.
LIMITATIONS OF E-MARKETING
 Out right scams
 The consumer is unable to physically feel or try on the product
 Marketer will not be able to use the personal touch factor\human factor
 Low connection speed
 Complication
ONLINE CONSTRUCTION MARKETING IDEAS
1. Create a well-designed, informative site
For many potential customers, your site is their first impression of you. Ensure that you appeal to
visitors by creating a site that is both informative and visually pleasing.

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One of the most important things to consider when creating a website is responsive design. This
means creating your site in a way that allows it to adapt and work successfully on all devices.
Regardless of whether people look at your site from desktop computers, smartphones, or tablets,
they’ll be able to get the information they need and continue the process towards working with
you.
In addition to simply being convenient, this will also improve your site’s chances of ranking well
in Google.
Speaking of Google, you should also consider search engine optimization, or SEO, for your site.
Doing things like including relevant keywords in your title and header tags and creating
compelling, unique body copy (along with many other components) will increase your visibility
online.
2. Start an email newsletter
Many companies mistakenly think that email newsletters are becoming outdated, but the fact is
that they have one of the highest average ROIs of any marketing tactic. Collect emails on your
site, build a database of readers, and start regularly sending out a newsletter as a part of your
construction marketing strategy.
The topics you discuss can be almost anything —letting customers know what your company is
working on, sharing ideas for new projects, or showing before and after images of your latest fix.
Emails like these can be a good way to stay in touch with people interested in hiring construction
companies.
3. Reference your online materials in your physical locations
Are you working on re-facing the front of a building? Make sure that anyone who drives by knows
that your construction company is the one who is doing such an incredible job.
You should also be sure to include your website's URL and social media information on any
signage to ensure that your customers know that you're active online. This can also help to boost
your website traffic!
Use this construction marketing idea to connect your offline and online marketing strategies!
4. Start a Facebook business page
If your company isn’t already on Facebook, it’s time to create an account. With 1.79 billion daily
active users, odds are that your current and potential customers are already there. And if that’s not
enough to convince you, it’s completely free to create.
Creating a business page is an easy way to show off projects, make announcements, and engage
with your customers. As an added bonus, you can also choose to take advantage of the platform’s
highly-targeted paid advertising options. For more information on what to do with your page (and
profiles on other platforms), check out our resource on social media tips for construction
companies.

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5. Add calls to action on all of your marketing material
Whether you are working on your site, newsletters, or social accounts, be sure to include calls to
action. Simply adding buttons like “contact us!” to your pages or ending your social posts with
links to a contact form, improves the chances that visitors will take steps to become a customer.
This will also keep them from clicking around on your site aimlessly, and allow them to easily
find the most important information on the page — your contact information.
6. Claim your business on review sites
Many potential customers go online to look for company reviews before trusting them with their
money, and that includes construction companies. Customers have free reign to post their opinions,
which can act as a vote of confidence to your potential customers.
You have little control over these reviews, but you should at least claim your business on popular
review sites like Yelp and Google. This construction marketing idea a great way to both monitor
what people are saying about your company and respond to reviews. By acknowledging both
compliments and complaints, you can show potential customers that you care about customer
satisfaction.
7. Offer your expertise as an interviewee
Reporters and writers for local publications are often looking for experts to talk about all kinds of
news-worthy topics. Offer yourself as an expert in your field by sending an email to editors and
writers in your area.
This may not seem related to online marketing, but consider how people today get their news.
Most videos and articles are posted online, which can be a great way to build links and drive traffic
to your site.
EMAIL MARKETING FOR CONSTRUCTION COMPANIES
Why is email marketing important for construction companies?
For construction companies, email marketing has several major benefits.
 First of all, email marketing allows you to send targeted, personalized content based on
your customers’ needs and interests.
 You can segment your customers based on their lead status, demographic information,
location, and other data. Then, you can send relevant offers and information based on those
needs and interests.
 Compared to traditional marketing methods, email marketing is also cost-effective, and it
allows you to make the most of your marketing budget.
E-Mail marketing tips for construction companies
Next, let’s take a look at some email marketing tips that can help your construction company make
the most of this channel.

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1. Compile an email list
Before you can start sending emails, you need to create an email list. This will consist of current
and potential customers who have signed up to receive updates from your company.
You can also encourage people to sign up to receive your emails on your website. If you choose
to attend in-person events, this is another great place to encourage attendees to sign up.
Once you have a list of subscribers, it’s time to start creating your emails.
2. Write interesting subject lines
Next, if you want people to actually read your emails, you need to include compelling subject lines
that encourage them to open your emails and read your content.
This is all a user can see in their inbox, and 33% of people open emails based solely on the subject
line.
This means that if you don’t want people to send your emails straight to the trash, you need to
create interesting subject lines that make them want to learn more about your business and the
products and services you provide.
3. Brand your emails
It’s also important that you brand your emails so that recipients know exactly where they came
from and who sent them.
Make sure that your emails are sent from a recognizable company email address. Sending emails
from “John.Doe@yourcompany.com” will allow people to quickly decipher who is sending them
emails. This brand recognition can increase the likelihood that someone will click on your emails
to learn more.
You can also include your company’s colors in the email and choose photos and graphics that
compliment your brand and the image your business wants to portray.
4. Make emails easy to scan
You should also make your emails easy to scan so that readers can pick out the most valuable
information at a glance.
Not everyone has time to sit down and read an entire email. This means that you need to make
your emails easy to scan so that people can easily pick up the information that you’re trying to
convey.
You can also break up the text with images and graphics that support your points and give readers
an inside look at your company. This can help them gain trust in your business and help them feel
more confident in their decision to choose you for their construction needs.

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5. Avoid spam triggers
You need to take steps to avoid spam triggers in order to keep your emails in recipients’ inboxes
instead of their spam folders.
Words like free, help, deal, win, trial, special offer, and order now can trigger spam filters.
While spam filters are getting more sophisticated and take into account more than an email’s
subject line, this is still a factor that can determine whether or not your emails end up in the spam
folder.
6. Automate your email process
You can also use an automation software to streamline your email marketing process.
Programs like MyEmailFX allow you schedule your email campaigns in advance. You can also
use built-in analytics programs to assess key metrics such as open and bounce rates.
Automating your email marketing process allows you to get the most out of your email marketing
efforts to reach more customers and increase awareness of your construction company.
7. Include clear CTAS
If you want people to take a certain action, sometimes you just need to tell them.
Do you want people to sign up to download your latest e-book? Include a link in your email and
let them know how they access the resource.
You also need to ensure that your CTA buttons stand out from the body copy. For example, you
can add buttons that include links to landing pages and tell visitors what actions you want them to
take when they arrive there.

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