MARKETING CONSTRUCTION

SERVICES AND PRODUCTS

(Prof . DR. SRINIVAS Sir)

Submitted by :
P. A. SATISH KUMAR R.No. 18181NC014
M.ARCH - 2ND SEM

JAWAHARLAL NEHRU INSTITUTE OF ADVANCED STUDIES (JNIAS),

KIMTEE ENCLAVE, ROAD NO.12, BANJARA HILLS, HYDERABAD – 500034.
 ASSIGNMENT - 2

1. PRICING AND COMMUNICATION STRATEGIES

2. LEGAL ASPECTS OF MARKETING OF REAL ESTATE

3. BOT/BOOT MODELS – SALIENT FEATURES

4. IMPACT OF LIBERALIZATION AND GLOBALIZATION ON

PROJECT MARKETING
1.PRICING AND COMMUNICATION STRATEGIES
• Price: The amount of money expected, required, or given in payment
for something.

• Pricing Strategy: A business can use a variety of pricing strategies

when selling a product or service. The Price can be set to maximize
profitability for each unit sold or from the market overall. It can be
used to defend an existing market from new entrants, to increase
market share within a market or to enter a new market. Businesses
may benefit from lowering or raising prices, depending on the needs
and behaviors of customers and clients in the particular market.
Finding the right pricing strategy is an important element in running a
successful business.
 Pricing Strategy Objectives :
THE PRICING STRATEGY PYRAMID
• Long Run Profits
• Short Run Profits
• Increase Sales Volume
• Company Growth
• Match Competitors Price
• Create Interest & Excitement about
the Product
• Discourage Competitors From
cutting Price
• Social, Ethical & Ideological
Objectives
• Discourage New Entrants
• Survival
 Market Skimming Pricing • High Price low volume • Skim the Profit from the Market
• Suitable for the products that have short life cycle or Which will face competition at
some point in future. • Examples; Play Station, Digital Technology & DVD etc.
 Value Pricing • Based on consumer Perception. • Price charged according to the
Customers Perception. • Price set by the company as per the perceived value. •
Example; Status Products/ Exclusive Products.
 Loss Leader Pricing • Goods/services deliberately sold below cost to encourage sales
elsewhere • Typical in supermarkets, e.g. at Christmas, selling bottles of gin at £3 in
the hope that people will be attracted to the store and buy other things • Purchases of
other items more than covers ‘loss’ on item sold • e.g. ‘Free’ mobile phone when
taking on contract package
 Psychological Pricing • Used to play on consumer perceptions • Classic example -
£9.99 instead of £10.99! • Links with value pricing – high value goods priced
according to what consumers THINK should be the price
 Going Rate Pricing • In case of price leader, rivals have difficulty in competing on
price – too high and they lose market share, too low and the price leader would match
price and force smaller rival out of market • May follow pricing leads of rivals
especially where those rivals have a clear dominance of market share • Where
competition is limited, ‘going rate’ pricing may be applicable – banks, petrol,
supermarkets, electrical goods – find very similar prices in all outlets
 Tender Pricing • Many contracts awarded on a tender basis • Firm (or firms) submit
their price for carrying out the work • Purchaser then chooses which represents best
value • Mostly done in secret
 Price Discrimination Pricing • Charging a different price for the same good/service
in different markets • Requires each market to be impenetrable • Requires different
price elasticity of demand in each market • Prices for rail travel differ for the same
journey at different times of the day
 Penetration Pricing • Price set to ‘penetrate the market’ • ‘Low’ price to secure high
volumes • Typical in mass market products – chocolate bars, food stuffs, household
goods, etc. • Suitable for products with long anticipated life cycles • May be useful if
launching into a new market
 Cost Plus Pricing • Cost-plus pricing is a pricing strategy that is used to maximize the
rates of return of companies. • Cost-plus pricing is also known as mark-up pricing
where cost + mark-up = selling price. • In practice, most firms use either value-
based pricing or cost-plus pricing.
 Contribution Pricing • Contribution = Selling Price – Variable (direct costs) • Prices
set to ensure coverage of variable costs and a ‘contribution’ to the fixed costs • Similar
in principle to marginal cost pricing • Break-even analysis might be useful in such
circumstances
 COMMUNICATION STRATEGIES
 Communication is the exchange of information between a sender and a receiver. It used to be that you
only had to worry about the way you communicated face-to-face or on paper. Technology has changed
this completely. It is important for people to take into account every aspect of how they are relaying
information. This is where communication strategies come into play. Communication strategies are the
blueprints for how this information will be exchanged.
 TYPES OF COMMUNICATION STRATEGIES
 Communication strategies can be verbal, nonverbal, or visual. Integrating all the strategies together will
allow you to see the most success. This allows a business to meet employee needs and increase
workplace knowledge.
 VERBAL COMMUNICATION STRATEGIES can be broken down into the two categories of written
and oral communication. Written strategies consist of avenues such as e-mail, text, and chat. Examples
that fall into the oral category are phone calls, video chats, and face-to-face conversation.
 NONVERBAL COMMUNICATION STRATEGIES consist of mostly visual cues, such as body
language, facial expressions, physical distance between communicators, or the tone of your voice. These
cues are typically not intended. However, it is important to realize the message you are sending.
Otherwise, you may be saying one thing, yet the receiver is hearing another.
 VISUAL COMMUNICATION STRATEGIES can be seen through signs, webpages, and illustrations.
These strategies are used in the workplace to draw attention and provide documentation. Human
resources is required to post certain visuals throughout the workplace to comply with safety laws.
 TYPES OF COMMUNICATION STRATEGIES
 Communication strategies can be verbal, nonverbal, or visual. Integrating all
the strategies together will allow you to see the most success. This allows a
business to meet employee needs and increase workplace knowledge.
 VERBAL COMMUNICATION STRATEGIES can be broken down into the
two categories of written and oral communication. Written strategies consist
of avenues such as e-mail, text, and chat. Examples that fall into the oral
category are phone calls, video chats, and face-to-face conversation.
 NONVERBAL COMMUNICATION STRATEGIES consist of mostly visual
cues, such as body language, facial expressions, physical distance between
communicators, or the tone of your voice. These cues are typically not
intended. However, it is important to realize the message you are sending.
Otherwise, you may be saying one thing, yet the receiver is hearing another.
 VISUAL COMMUNICATION STRATEGIES can be seen through signs,
webpages, and illustrations. These strategies are used in the workplace to
draw attention and provide documentation. Human resources is required to
post certain visuals throughout the workplace to comply with safety laws.
 2. LEGAL ASPECTS OF MARKETING OF
REAL ESTATE
REAL ESTATE
The term 'real estate' refers to land as well as building. The word ‘land’ includes-- the
air above and the ground below and any buildings or structures on it. It covers
residential houses, commercial offices, trading spaces such as theatres, hotels and
restaurants, retail outlets, industrial buildings, factories and also government buildings.
Thus the term real estate connotes immovable property which can be either land or
building or both.
The real estate transaction includes:-
a. Purchase,
b. Sale and
c. Development of land (both residential and non-residential buildings)
 Types of ownership interests in real estate (immovable property) include
 • Freehold: Provides the owner the right to use the real estate for any lawful purpose and sell
when and to whom the owner wishes.
 • Life estate: An interest in real estate which is granted to a life tenant until that person dies.
The interest terminates upon the death of the life tenant.
 • Estate for years: Similar to life estate but the term is a specified number of years.
 • Leasehold:The right to possess and use real estate pursuant to the terms of a use.
 • Reversion: The right to posses the free interest in real estate after the expiration of a life
estate, estate for years or leasehold.
 • Concurrent or co-tenancy: The ownership of an interest in real property by more than one
party. Rights of any single party may be limited in various ways depending on the jurisdiction
and type of concurrency.

 The main players in the real estate market include the following:
 1.The landlords / owners 2.The builders / developers / contractors
 3. Real estate agents 4.Tenants and 5. Investors
 Real Estate Business With the development of private property
ownership, real estate has become a major area of business. In
fact it has evolved into several distinct fields like – valuation
services, brokerage, development of property, property
management, real estate marketing, etc.
 The following factors influence the price and cost of
the real estate:
 The physical characteristics of the property
 The property rights
 The time horizon of holding the property
 Geographical area
 The development rate
 OVERVIEW OF REAL ESTATE LAWS OF INDIA
 Real estate laws are the rules and regulations that regulate every aspect
of a real estate property transaction. Intricate requirements are
involved in every real estate transaction be it acquisition, selling,
transfer, or foreclosure of a property. Real estate laws are in place to
safeguard the rights in the property owned or purchased or sold.
 Issues covered under Real Estate Laws –
 – Legal contracts and agreements;
 – Dispute resolutions related to real estate property distribution or
possession;
 – Buying, selling, acquisition, leasing, and disposition of different types
of real estate properties.
 –Taxation issues concerning real estate;
 – Preparing a plan and monitoring the construction of a real estate;
 – Drafting deeds and contracts for real estate transactions;
 – Overseeing legal issues involved in real estate foreclosures.
 The list of central laws governing real estate transactions
are:
 1. The Indian Contract Act, 1872
 2. The Transfer of Property Act, 1882
 3. The Indian Easements Act, 1882
 4. The Indian Stamp Act, 1899
 5. The Registration Act, 1908
 6. The Specific Relief Act ,1963
 7. Power of Attorney Act, 1882
 8. The Urban Land (Ceiling & regularization) Act, 1976 (repealed in
most states including Maharashtra)
 9. The Land Acquisition Act, 1894
 10. The Land Acquisition, Rehabilitation and Resettlement, Bill, 2011
 11. The Indian Evidence Act, 1872
 12. The Consumer Protection Act, 1986
 13. The Arbitration & Conciliation Act, 1996
 14. Income Tax Act, 1961
 15. The Wealth Tax Act, 1957
 16. The Co-operative Societies Act, 1912
 17. The Multi-State Co-operative Societies Act, 2002
 18. Service Tax provisions
 19. Foreign Exchange Management Act, 1999 / Foreign Direct
Investment Policy
 20. SEBI norms for Real Estate Mutual Funds
 21. Securitisation and Reconstruction of Financial Assets and
Enforcement of Security Interest Act, 2002
 22. Securitisation and Reconstruction of Financial Assets and
Enforcement of Security Interest (Central Registry) Rules, 2011
 23.The State Laws governing real estate transactions
 24. State Laws governing Rent Control
 25. Local body laws relating to property tax

Apart from the above mentioned laws, each state has its own set of
laws, which govern planned development, rules for construction and
floor-area-ratio (FAR) or floor space-index (FSI) and formation of
societies but there are three laws that exist in every state namely, the
stamp duty, property tax and rent laws.
REAL ESTATE - DEEDS / AGREEMENTS
Several transactions affect immovable property in the form of lease, sale,
mortgage, partition, construction etc. The various types of
agreements/deeds related to immovable property are given hereunder.
 i. Purchase of Flat/house/apartment (commercial/residential)
 ii. Purchase of Land
 iii. Leave and Licence Agreement
 iv. Licence authorizing the licensee to use the part of land of the licensor as
way to the house of the licensee
 v. Development Agreement
 vi. Transfer Deed
 vii. Power of Attorney
 viii. Lease of building or office
 ix. Lease of agricultural land
 x. Lease of a furnished house for residential purposes
 xi. Deed of surrender of lease
 xii. Deed of renewal of lease
 xiii. Tripartite lease agreement between lessor, lessee and the guarantor
 xiv. Deed Of Sub-Lease
 xv. Deed For Modification Of The Terms Of The Lease xvi. Gift Deed of Property
 xvii. Partition Deed
 xviii. Settlement Deed
 xix. Construction Agreement
 xx. Rent Agreement
 xxi. Sale/ Purchase Agreement
 xxii. Agreement to Sell
 xxiii. Deed of Mortgage of Property
 xxiv. Relinquishment Deed
 xxv. Surrender Deed in Cooperative Housing Society
 xvi. Simple Mortgage Deed
 xxvii. Reconveyance Deed
 xxviii. Deed Of Mortgage By Conditional Sale
 xxix. Mortgage by deposit of Title deeds
 xxx. Deed Creating Charge On The Property
 The Real Estate (Regulation and Development) Act,
2016 is an Act of the Parliament of India which seeks to protect
home-buyers as well as help boost investments in the real estate
industry.
 The Act establishes Real Estate Regulatory Authority (RERA) in
each state for regulation of the real estate sector and also acts as
an adjudicating body for speedy dispute redressal. The Act came
into force on 1 May 2016 with 59 of 92 sections
notified. Remaining provisions came into force on 1 May 2017.
 The Central and state governments are liable to notify the Rules
under the Act within a statutory period of six months.
 The Real Estate Act makes it mandatory for all commercial and
residential real estate projects where the land is over 500 square
metres, or eight apartments, to register with the Real Estate
Regulatory Authority (RERA) for launching a project, in order to
provide greater transparency in project-marketing and execution. For
ongoing projects which have not received completion certificate on
the date of commencement of the Act, will have to seek registration
within 3 months. Application for registration must be either approved
or rejected within a period of 30 days from the date of application by
the RERA. On successful registration, the promoter of the project will
be provided with a registration number, a login id, and password for
the applicants to fill up essential details on the website of the RERA.
For failure to register, a penalty of up to 10 percent of the project cost
or three years' imprisonment may be imposed. Real estate agents who
facilitate selling or purchase of properties must take prior registration.
Such agents will be issued a single registration number for each State
or Union Territory, which must be quoted by the agent in every sale
facilitated by him.
 Protection of buyers
 The Act prohibits unaccounted money from being pumped into the
sector and as of now 70 per cent of the money has to be deposited in
bank accounts through cheques is now compulsory. A major benefit for
consumers included in the Act is that builders will have to quote prices
based on carpet area not super built-up area, while carpet area has
been clearly defined in the Act to include usable spaces like kitchen
and toilets.

 Real Estate Regulatory Authority and Appellate Tribunal

 It will help to establish state-level Real Estate Regulatory
Authorities (RERAs) to regulate transactions related to both
residential and commercial projects and ensure their timely
completion and handover. Appellate Tribunals will now be required to
adjudicate cases in 60 days as against the earlier provision of 90 days
and Regulatory Authorities to dispose of complaints in 60 days while
no time-frame was indicated in earlier Bill.
 3. BOT/BOOT MODELS – SALIENT FEATURES

BOT: BUILD OPERATE AND TRANSFER - finds extensive application in

infrastructure projects and in public–private partnership. In the BOT framework a third
party, for example the public administration, delegates to a private sector entity to design
and build infrastructure and to operate and maintain these facilities for a certain period.
During this period the private party has the responsibility to raise the finance for the
project and is entitled to retain all revenues generated by the project and is the owner of
the regarded facilities. The facility will be then transferred to the public administration at
the end of the concession agreement, without any remuneration of the private entity
involved. Some or even all of the following different parties could be involved in any BOT
project.
The most common examples are roads, bridges, water and sewer systems, airports, ports
and public buildings
 BOOT (build–own–operate–transfer)
 A BOOT structure differs from BOT in that the private entity owns the
works. During the concession period the private company owns and operates
the facility with the prime goal to recover the costs of investment and
maintenance while trying to achieve higher margin on project. The specific
characteristics of BOOT make it suitable for infrastructure projects like
highways, roads mass transit, railway transport and power generation and as
such they have political importance for the social welfare but are not
attractive for other types of private investments. BOOT & BOT are methods
which find very extensive application in countries which desire ownership
transfer and operations including. Some advantages of BOOT projects are:
 Encourage private investment
 Inject new foreign capital to the country
 Transfer of technology and know-how
 Completing project within time frame and planned budget
 Providing additional financial source for other priority projects
 Releasing the burden on public budget for infrastructure development
 4. IMPACT OF LIBERALISATION AND
GLOBALIZATION ON PROJECT MARKETING

 Liberalization is a very broad term that usually refers to fewer

government regulations and restrictions in the economy.
Liberalization refers to the relaxation of the previous government
restriction usually in area of social and economic policies. When
government liberalized trade, it means it has removed the tariff,
subsidies and other restriction on the flow of goods and services
between the countries.
The Path of liberalization
• Relief for foreign investors
• Devaluation of Indian rupees
• New industrial Policy
• New trade policy
• Removal of import Restrictions
• Liberalization of NRI remittances
• Freedom to import technology
• Encouraging foreign tie-ups
• MRTP relaxation
• Privatization of public sector ETC.
Advantages of liberalization
• Industrial licensing
• Increase the foreign investment.
• Increase the foreign exchange reserve.
• Increase in consumption and Control over price.
• Check on corruption.
• Reduction in dependence on external commercial borrowings
Disadvantages of Liberalization
• Increase in unemployment.
• Loss to domestic units.
• Increase dependence on foreign nations
• Unbalanced development
Globalization
 Globalization implies integration of the economy of the country
with the rest of the world economy and opening up of the
economy for foreign direct Investment by liberalizing the rules
and regulations and by creating favorable socio-economic and
political climate for global business.
 According to IMF: ’’The growing economic interdependence of
countries worldwide through increasing volume and variety of
cross border transaction in goods and services and of
international capital cash flows, and through the more rapid and
widespread diffusion of technology.”
Features of Globalization :
 Opening and planning to expand business throughout the world.
 Erasing the difference between domestic market and foreign market.
 Buying and selling goods and services from/to any countries in the world.
 Locating the production and other physical facilities on a consideration of the global
business dynamics ,irrespective of national consideration.
 Basing product development and production planning on the global market
consideration.
 Global sourcing of factor of production i.e. raw-material, components , machinery,
technology, finance etc. are obtained from the best source anywhere in the world.
 Global orientation of organizational structure and management culture
Foreign market entry strategies:
 Exporting, Licensing/Franchising, Contract manufacturing, Management contract,
Assembly operations, Fully owned manufacturing facilities, Joint venturing, Merger
and acquisition, Strategic alliance, Countertrade
 Benefits of Globalisation:
 Globalization have several benefits, these are: -
 Free flow of capital and increase in the total capital employed.
 Free flow of technology.
 Increase in industrialization.
 Spread of production facilities throughout the globe.
 Balanced development of world economies.
 Increase in production and consumption.
 Commodities at lower price with high quality.
 Increase in jobs and income.
 Higher Standard of living.  Balanced human development
 Negative effects of Globalization
 Loss of domestic industries
 Exploits Human resource
 Decline in income
 Unemployment
 Transfer of natural resources
 Lead to commercial and political colonism
 Widening gap between rich and poor
 Dominance of foreign institutions
 Economic liberalization has increased the responsibility and role
of the private sector. At the same time, it has reduced the control
of the government on economy affairs. It is expected that the
reforms would liberalize the Indian economy enough to create a
conducive environment for rapid economic development.
 Success of the economic reforms depends upon the commitment
of all concerned – people, political parties, bureaucracy, and
government – to the socio economic progress of the country.
 Impact of Changes in Economic Policy on the Business
or Effects of Liberalization and globalization:
 Increasing Competition
 More Demanding Customers
 Rapidly Changing Technological Environment
 Necessity for Change
 Need for Developing Human Resources
 Market Orientation (from selling to marketing concept)
 Loss of Budgetary Support to Public Sector
 Export a Matter of Survival
How does globalization affect marketing?
Globalization leads to increased competition. This competition can be related to
product and service cost and price, target market, technological adaptation, quick
response, quick production by companies etc. When a company produces with less
cost and sells cheaper, it is able to increase its market share.

How is globalization affecting international marketing activities?

Globalization—the process of increasing social, cultural, political, and economic
interdependence—has resulted in several changes in business environment. Global
market opportunities and threats are major effects of globalization.
 THANK YOU
Submitted by :
P. A. SATISH KUMAR R.No. 18181NC014
M.ARCH - 2ND SEM