Basics IV: Marketing battle in the construction industry: product marketing vs. technical marketing!
- Jörg Appl
- Dec 13, 2024
- 6 min read
In the construction industry, the differences between product marketing and technical marketing are often less clear than it seems – it is always about convincingly communicating the added value for the target group . But what strategies are needed to successfully address technical target groups in the construction industry? This article shows you how to determine the perceived value and set the optimal price for your target group.
This blog post – part of our series on technical marketing in the construction industry – offers valuable tips on how to improve your marketing strategy and target it specifically at tech-savvy audiences.
📚 Ready to test yourself? At the end, you'll find cool case studies that will help you reach the marketing pinnacle of the construction industry! 🚀
As a product manager, you are the central point of contact for product marketing. Originally known as a ‘brand man’ – a term coined by McElroy and Rogen as early as 1931 – it is your job to understand and meet the needs of your target group. You develop a strategy that brings your offer to market at the right time, in the right place, with the right price and marketing.
In the construction industry today, product managers are usually part of the marketing department and focus on sales and profits. Their main task is to analyse target group needs and respond with appropriate offers. They often also take responsibility for value proposition, customer acquisition and sometimes even proposal development. They often specialise in marketing, often with a marketing degree or even an MBA..
Technical marketing vs. product marketing in the construction industry – the real difference
Let's look at a few statements that often circulate on blogs about marketing and are often misleading:
Statement 1: ‘Technical marketing for the construction industry explains how a complex offering behaves.’
Statement 2: ‘Technical marketing includes white papers, technical training and presentations, while product marketing is responsible for the overall success of the offering.
Statement 3: ‘Technical marketing supports product marketing and is subordinate to it.’
These statements suggest that there is a clear distinction between product marketing and technical marketing. But is that really the case? No! It is always about communicating the added value of your product. The only difference is that in technical marketing, the target group is technically savvy.
The main task of marketing is to increase the perceived value. To do this, it is important to understand how your target group – in this case, target groups in the construction industry – evaluates the offer. Without technical knowledge, it becomes difficult to communicate the value convincingly and develop the right marketing strategies.
Why understanding the target group is crucial
Technical marketing or marketing in the construction industry only works if you understand the technical features of your offering. It's about developing a go-to-market strategy (a detailed marketing plan for how a company brings a product, software or service to market in order to attract targeted audiences and be successful It is designed to take into account the specific requirements, challenges and structures of the construction industry, which may differ significantly from other industries. It is not enough to provide a general, ‘marketing-friendly’ description.
Technical marketing or marketing should not only communicate the technical side of your product, but also ensure that the perceived value for your target group is right, see Figure 4. The right price is not only a question of margin, but also of perception. If your target group does not recognise the added value, success will not come.
Indications of excessive pricing
And what happens if the price is too high, i.e. the value conveyed in the marketing process does not match the value of the target group? The symptoms are clear:
Long sales cycles: Your target group needs more time to make a decision.
Price discussions: The decision is made purely on price, and the added value goes unnoticed.
No clear value proposition: Your target group has high expectations, but you are not communicating the added value clearly enough.
It's always about added value, even in the construction industry!
The difference between product marketing and technical product marketing is less significant than you might think – it's always about showing the target group the added value of your offering. In the construction industry, technical understanding is crucial to developing suitable marketing strategies for a technically savvy target group.
This is the only way to ensure that your offering is perceived as valuable and that your target group is willing to pay the price.
Marketingtastic, or
Questions that will take your marketing expertise in the construction industry to the next level!
Case study 1:
Ms Schneider, a marketing manager at a construction company, is tasked with developing a go-to-market strategy for a new technical product. She knows that in the construction industry, the technical understanding of the target group is crucial to communicate the perceived value of the product.
Question: What should Ms Schneider pay particular attention to in her marketing strategy in order to successfully address the target group in the construction industry?
A) Use a general description of the product that works well across all industries.
B) Highlight the product's technical features to appeal to the target audience.
C) Focus only on the price-performance ratio without going into technical details
.
D) Emphasise only the product's financial margin.
Answer: B) Highlight the product's technical features to appeal to the target group.
Explanation:
In the construction industry, many target groups are technically savvy and value technical details and features. A general product description or just the price-performance ratio are often not enough to convey the product's added value and spark the target group's interest.
Case study 2:
Mr Meier is responsible for product marketing at a construction equipment company. He has noticed that sales cycles are very long and that a lot of price discussions take place. He wonders what could be causing these delays and price negotiations.
Question: Which of the following causes could most likely lead to long sales cycles and intensive price discussions in the construction industry?
A) The product is marketed without a clear value proposition, which confuses the target group.
B) The target group is only addressed through visual advertising.
C) The product is too cheap for the industry and therefore uninteresting.
D) There is little competition in the industry, so price is not important.
Answer: A) The product is marketed without a clear value proposition, which unsettles the target group.
Explanation:
Long sales cycles and intensive price discussions may indicate that the target group does not recognise the added value of the product. A clear value proposition that highlights the advantages and technical features is often crucial in the construction industry to convince customers of a higher price and to speed up the sales process.
Case study 3:
Ms Berger, an experienced marketing manager, is planning the pricing strategy for a new technical offering in the construction industry. She wants to make sure that the price is perceived as appropriate and aligned with the target group's expectations.
Question: What action should Ms Berger take to ensure that the target group perceives the price as appropriate?
A) Offer only the lowest price without addressing the product features.
B) Set the price according to the product's perceived added value and make this clear in the communication.
C) Only mention the price and product in an advertising campaign without going into further detail.
D) Set the price without considering the target group's willingness to pay.
Answer: B) Set the price according to the product's perceived added value and make this clear in the communication.
Explanation:
In the construction industry, it is important that the price reflects the perceived added value. By communicating the price in such a way that the target group recognises the added value and advantages of the product, Ms Berger can increase customers' willingness to pay and reduce the need for price negotiations.
Further reading
McElroy N. H., Rogen R. F., “Marketing” (1931).Word-Memo
Walkingshaw N., Banfield R. Eriksson M. (2017): The evolving role of product management. Accessed on the 15.02.2023. < https://www.oreilly.com/radar/the-evolving-role-of-product-management/>
Great blog post! You’ve nailed the complexities of the marketing battle in the construction industry by clearly distinguishing between product marketing and technical marketing. The practical insights and examples make it both engaging and highly relevant. Well done!