Basis V: Why your offer for the construction industry will never be 100% perfect – and why that's okay

Technical marketing and product development in the construction industry are always faced with a challenge: compromises. While product managers and marketing experts want to meet the requirements and needs of the target group, internal departments often bring their own constraints and goals into the development process. So why perfection is not the goal – and how you can still find a strategy that best meets the needs of your target group.

This blog post – part of our series on technical marketing in the construction industry – gives you the background and practical tips for tailoring your offering as closely as possible to your target group.

📚 Fancy testing your knowledge? At the end, there are cool case studies that will help you reach the marketing pinnacle of the construction industry! 🚀

The subtle difference between needs and requirements

In the literature on product development, two central terms are used to summarise the ‘voice of the target group’: needs and requirements (Ulrich & Eppinger, 2012; Peppers & Rogers, 2011; Griffin & Hauser, 1993).

• Needs are the fundamental wishes or goals of the target group – what they want to achieve with your offer. In the construction industry , for example, a need could be to design a load-bearing structure that can be integrated into various structures. These needs are often vague and are not always clearly stated by the target group itself. They depend on specific circumstances such as urgency or project requirements.

  
  

• Requirements, on the other hand, are the detailed specifications derived from these needs that you need to address with your offer. An example of a requirement for a load-bearing structure would be immediate load-bearing capacity, flexibility for openings or reduced maintenance costs. Requirements are measurable and much more specific than general needs (Ulrich & Eppinger, 2012).

  
  

The point here is that even if your offer meets all the requirements, this does not necessarily mean that it meets the needs of the target group, as these are not necessarily formulated.

Why your offering to the construction industry will never be perfect

In the construction industry, the question arises not only as to whether you have understood the needs and requirements of your target group with regard to an offer, but also how many other influences from your company shape the final offer.

The development procedure of an offer is always influenced by different departments. Production, sales, marketing and, last but not least, the legal and organisational requirements of a company or engineering firm all play a role.

These influencing factors are often far removed from the actual needs and requirements of the target group. While product management and marketing represent the ‘voice of the target group’, production and management, among others, bring operational constraints and internal company requirements into the development process. The result is a compromise – a compromise that never 100% meets the needs and requirements of the target group.

Figure 5 shows how various internal and external influences affect the offering and illustrates these dynamics.

Fig. 5: Representation of the various influences on a technical offer in the construction industry

An advanced offer of illusions

Another critical point occurs when companies continuously improve or develop their offering – but in doing so, lose sight of the original needs of the target group.

In the construction industry, this can lead to the creation of an ‘improved version’ of an offer that is driven by internal innovation or operational requirements, but is increasingly out of touch with the actual needs of the target group. The result is an offer of illusions that no longer meets the actual requirements of the target group.

This danger is particularly evident when non-target group-oriented departments incorporate their own goals – such as profit maximisation or ‘ideas’ – into the development process. In this way, the offering is further developed, but the actual needs of the target group remain unheeded. The result: an ever-widening discrepancy between the offering and the real needs of the construction industry and target groups.

The role of the product or marketing manager

To prevent an offering from becoming an ‘offering of illusions’, the product manager or marketing manager has a key role to play. Particularly in the construction industry, where requirements and needs are often technically complex, the marketing manager must constantly ensure that the offering meets the real needs and requirements of the target group – even if these may change over time.

The marketing manager acts as a link between the target group and the internal departments and is responsible for ensuring that the offer is not decoupled from the target groups. In doing so, he must ensure that the offer is constantly adapted to the actual needs of the target group, even if other departments bring in their own ideas and requirements.

Figure 6 illustrates how a misguided further development of the service offering can alienate the target group.

Fig. 6 An illusory offer if the development of the offer misses the actual needs of the target group.

Conclusion: A range of services for the construction industry remains a compromise

No offer in the construction industry will ever cover all the needs and requirements of the target group 100%. But that is not the goal either. The aim is to create an offer that stays as close as possible to the real needs and requirements of the target group, without being decoupled from internal, operational or organisational requirements. The product or marketing manager must act as the guardian of the target group's interests and prevent the range of products from becoming a range of illusions.

Marketing tasteless? Yes, but only if the balance is wrong.

Questions that will take your marketing expertise in the construction industry to the next level!

Question 1: Differentiating between needs and requirements

A marketing manager wants to develop a construction industry offering that takes into account both the needs and the requirements of the target group. Which of the following examples best describes a need and which a requirement?

a) The building must have a load-bearing capacity of at least 500 kg/m²

b) The target group wants the structural design to be flexible enough to be used for different building designs.

c) The supporting structure must be made of environmentally friendly materials.

d) The target group wants a supporting structure that saves costs and is easy to assemble.

Correct answer:

• Needs: b) and d)

• Requirements: a) and c)

  
  
  
  

Explanation:

Needs are general wishes or goals that are often not formulated precisely (e.g. flexibility or cost savings). Requirements, on the other hand, are precise, measurable specifications that are derived from the needs (e.g. load-bearing capacity of 500 kg/m² or environmentally friendly materials).

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Question 2: Understanding internal influences

Why can it happen that an offering no longer meets the actual needs of the target group?

a) Because product managers and marketing managers often misinterpret the needs of the target group.

b) Because internal departments such as production or sales bring their own goals and constraints into the development process.

c) Because the target group changes its needs over time without informing the company

d) Because the further development of an offering relies too heavily on innovation instead of target group orientation.

Correct answer: b) and d)

Explanation:

Internal departments influence the creation of an offering through operational constraints, which leads to a compromise (b).

Furthermore, there is a risk that further developments will be driven by internal priorities and no longer meet the real needs of the target group (d).

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Question 3: Strategic decisions in marketing

A marketing manager is planning a new campaign for a technical product. What strategy should he follow to prevent the offer from becoming an ‘offer of illusions’?

a) He regularly checks whether the needs of the target group have changed.

b) He primarily focuses on the internal objectives of the company management to increase efficiency.

c) He adapts the offer to the specific requirements of the target group and ignores general needs, as these are not measurable.

d) He reconciles the requirements of the target group with internal constraints, without losing sight of the needs of the target group.

Correct answer: a) and d

Explanation:

A marketing manager must take into account both the needs and the demands of the target group, while also remaining flexible in the face of change (a).

In addition, it is crucial to strike a balance between internal constraints and target group orientation in order to create a realistic offer (d).

Further reading

Ulrich K. T. and Eppinger S.D. (2012) Product Design and Development. Fifth edition. New York: McGraw Hill, International Edition.

Faste, R. (1987). Perceiving Needs. SAE Future Transportation Technology Conference and Exposition, Society of Automotive Engineers, Inc., Seattle, Washington, USA 419-423

D. Peppers and M. Rogers, “Managing Customer Relationships: A Strategic Framework,” 2nd Edition, John Wiley & Sons, Inc., Hoboken, 2011

A. Griffin and J. Hauser, “The Voice of the Customer,”Marketing Science, Vol. 12, No. 1, 1993, pp. 1-27.