Application of relationship marketing to construction
Creators: name: Davis, Peter
Publisher: name: RMIT University
Year: 2024

description: Relationship Marketing is relatively unknown in construction, but is widely researched in non project disciplines and applied similarly. Relationship marketing as a sub-component of marketing provides valuable and reliable tools that a manager can use to enhance a service that is being provided to a range of clients. It provides a better solution to client interaction than traditional marketing due to its focus on mutual attainment of common goals. The purpose of relationship marketing is to attract new clients and ensure that existing clients are looked after in a collaborative engagement where objectives are identified and mutual goals set. Overall collective aims of venture participants are identified and achieved. <br><br>The aim of the research is to identify key relationship factors that should be considered when selecting a construction service. This is achieved through a number of steps that include: examining the principles of marketing and its association with RM; examining alliance principles and construction RM principles, supply chain and service selection issues and relationship development constructs; interviewing a number of construction actors to theorise issues that are important to construction, its connections and relationships. Other activities include interviewing a substantial body of construction actors that have experience of Alliance projects and are able to comment on the relationship development process and observe activities undertaken at a number of alliance development and alliance lessons learned (outcome) workshops. The research identifies methods that enable relationships to be developed and a model that gives buyers the ability to pre-qualify and select contractors that are committed to providing value is provided. <br><br>The main findings from the research show that RM has many attributes that should be applied to construction; indeed several aspects of RM are currently being applied in alliance projects. The particular form that RM takes in alliance projects is in the relationship development of the stakeholders. These stakeholders eventually become the virtual team who manage the project. In particular the development of trust, commitment and mutual goals in alliance projects form a close parallel with similar constructs in RM. Four themes were discovered to make a difference in relationship development in construction. They were the process of the relationship development workshop; the underlying attributes associated with the development process, in particular trust, trust building, commitment and communication; the outcome for the team; and organisational issues associated with individuals in the relationship development workshops. <br><br>The particular contribution that the research identifies is in the various models of relationship development that have been constructed throughout the research period. The first, an interim model, identifies a marketing continuum that forms a framework and provides an insight into the ways in which RM may reduce stress and reasons for conflict in a construction project team. At the same time the model shows how increased trust, commitment and satisfaction for the stakeholders, together with value adding potential in the supply chain, may be attained with the use and application of RM principles. The second interim model builds on the first model and applies an organisational focus to the original project based model described earlier. Ongoing relationships based on project success are identified. A third and final interim model identifies the association between process (project) and product success with transactional and relationship marketing. The model identifies how a RM approach provides a long term project success that may be translated to marketing success in a particular industry sector through ongoing relationships. Finally, building on the aforementioned interim models a construction relationship development model is proposed. It is suggested that these models develop and contribute to emerging theory on RM in a project environment and its application to construction. The models also contribute to relationship development theory applied to project driven and temporary organisations. These temporary organisations are particular to the construction industry and they stand to benefit greatly from this research.<br>