Nature of project business

What is Project?
A complex transaction covering a package of products, services and
work, specifically designed to create capital assets that produce
benefits for a buyer over an extended period of time.

Project marketing lies close to B2B marketing.

 Projects Industrial goods and services
Small series production Mass production

Made to measure demand Standard demand

Discontinuous supplier/ customer relations Continuous relations

Rare transaction between supplier and customer Frequent

Very long duration transactions Short transactions

High financial commitment Low

Formal buying procedures Informal quotation requests

Types of projects
1. Subcontracting projects:

Civil work

seller Buyer
transport

installations
2. Partial Projects

Civil works (A)

Sewage system
(B)

Hospital buyer
equipment (C)

ICT (D)
3. Package deals
Regular subcontractors

Civil works (A)

p1
The buyer

Sewage system
(B) The seller p2
The buyer

Hospital The buyer

equipment (C) p3
4. Turnkey projects
• Subcontractors

A Marketing
Negotiation
Contract THE BUYER
B
TURNKEY
CONTRACT
OR
C
Works
THE PLANT

D
5. Turnkey plus projects
• Subcontractors

A Marketing
Negotiation
Contract THE BUYER
B
TURNKEY
CONTRACT
OR
C
Works
THE PLANT

D Turnkey plus
– training of Product
production ion
engineers
Characteristics of project business
1. Uniqueness: each project is specific in terms of:
Size
Type of customer
The type of organization undertaking project management
Financing
Nature of work carried out by subcontractors
Involvement of different parties
2. Complexity
The complexity in the offer
Number of participants
Influence of political actors
Influence of society

3. Discontinuity
4. Financial Commitment