Commercial Real Estate Situation Analysis

You begin to develop your commercial real estate marketing strategy the same way you usually begin a marketing strategy (Exhibit 30.2), with a Situation Analysis that covers 1. Customers. Potential sellers and buyers 2. Competitors. Other organizations vying for the business 3. Organization. The capabilities of your organization what you are good at and not so good at 4. Environment. The key players and key trends in your marketplace what you think will happen next All these areas have been...

About the Author

Sexton is professor of business at Columbia University. Don received his PhD and MBA from the University of Chicago in the fields of economics and mathematics. He has been teaching for more than 40 years at Columbia in the areas of marketing, international business, and operations management, and is a recipient of the Business School 's Distinguished Teaching Award. He is Trump University's subject matter expert and faculty member in the areas of marketing and sales. Don has served as...

Actual Value Analysis

You can summarize the implications of your competitors ' capabilities on the benefits they can provide with what I call an Actual Value Analysis (see Exhibit 6.2). An Actual Value Analysis has six steps 2. Select a target member of the decision-making unit. 4. List the benefits associated with the product or service. 5. Estimate the relative importance of each benefit to your target customer. 6. For your company and for each competitor, evaluate the actual performance on each benefit. Exhibit...

Assembling the Advertising Strategy

You assemble an advertising strategy the same way you assemble an integrated communications strategy (see Chapter 18), by setting the advertising objectives and message content, then building it up by selecting different media and vehicles. First you would fill out the objectives row for your overall advertising strategy in Exhibit 19.8, paying attention to both the intermediate objectives and the action objectives, and how they must be coordinated. If you use the objective and task approach,...

Assembling the Distribution Strategy

You start with your target customer in your target market. How can you get your product or service to them You need to find out where they currently buy products or services similar to yours. You may want to distribute your product or service in those outlets, but you might also decide to use a different method entirely. Once you have decided on the general type of reseller to use, you need to refine your choice of reseller by considering your objectives. Your objectives will also help...

Assembling the Integrated Communications Strategy

Given your target market, your business objectives, and your desired message, you can now put together your overall communications strategy. At the Exhibit 18.5 Product or Service Space Soap Benefits 1 and 2 Exhibit 18.5 Product or Service Space Soap Benefits 1 and 2 Expected performance (ideal point). Actual performance. Source Arrow Guide Product Space Analysis, The Arrow Group, Ltd., New York, NY, 2008. Used here with permission. top of the worksheet shown in Exhibit 18.7 is the summary of...

Assembling the Pricing Strategy

As competitive conditions change, you may need to change your pricing strategy. For example, over time, customers typically become shrewder and competitors become more aggressive. The worksheet in Exhibit 25.5 allows you to display your estimates as to how you think perceived value, incremental cost per unit, and competitor actions might change over time. You also need to keep in mind your capacity over time, because that will limit your sales at lower price levels. By examining some of the key...

Assembling the Public Relations Strategy

The starting point for your public relations strategy is your message (Exhibit 23.2). What message do you want to convey to all your various constituencies Often that will be your brand position or will be related to your brand position. Then you must make sure that message is consistent across all your public relations approaches. Exhibit 23.2 shows a few of those TRUMP UNIVERSITY MARKETING 101 Exhibit 23.2 Public Relations Strategy Target Audience _Target Decision-Making Unit Member Target...

Assembling the Sales Promotion Strategy

Overall, you want to be sure that whatever promotions you use, they support the positioning of your product market strategy and the message of your communications. Sales promotion is especially helpful when you would like to stimulate purchases. For example, perhaps you operate a motel and want to increase occupancy during the off-season. You might use promotion methods to attract more customers. You need to look at your overall communications objectives and decide where your purchases might...

Assembling the Sales Strategy

The selling strategy begins with the sales objectives. (See the downloadable worksheet in Exhibit 22.5.) You must consider how those objectives will be attained and, consequently, what will be the necessary objectives for each of the sales representatives. Next, you make an allocation of selling time. These time allocations are based on the sales objectives, the selling time each sales representative has available, and their abilities and selling efficiency (time required to get a sale). The...

Building a Web Site

You first need to consider what you hope your Web site will accomplish. Usually, it is a good idea to start simply perhaps just providing information to your customers. Later you can add more capabilities. You can rough out the contents of your Web site by developing draft pages. For example, suppose you have a small business where you give presentations on selling techniques to sales representatives. The four sample pages in Exhibit 24.1 include a home page, a page with your credentials, then...

Business Objectives

Objectives of the product market strategy will typically include revenue, market share, profit, and cash flow. All of these objectives are achieved only if the target customers take action purchase for the first time, purchase again, or purchase more (Exhibit 18.2). You must state your communications objectives in terms of actions by the target customers. For example, if you want to increase your market share, then you must persuade customers to try your product or brand. If you want to...

C1

How to Use the Most Powerful Ideas in Marketing to Get More Customers and Keep Them Copyright 2010 by Trump University. All rights reserved. Published by John Wiley & Sons, Inc., Hoboken, New Jersey Published simultaneously in Canada No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United...

Capabilities and Your Marketing Strategy

You need to evaluate your organization 's capabilities determine what your organization does well before you target markets and determine the positioning for your product or service. Selecting target markets depends, in part, on your relative strengths in satisfying the needs of customers in a given market. For example, if you are considering opening a haircutting salon in an area with many trendy young people, then your staff should include stylists who are up-to-date on the latest trends and...

Capability Evaluation DryCleaning Example

Capabilities of a dry cleaner might include modern equipment, equipment on premises, cleaning expertise, stain-removal expertise, tailor availability, order information system, skilled staff, courteous staff, number of staff, and accessible location. These would be entered in Exhibit 7.1. Exhibit 7.1 Capability Evaluation Chart Convenient hours and quick turnaround Source Arrow Guide Capability Analysis, The Arrow Group, Ltd., New York, NY, 2008. Used here with permission. A blank version of...

Communications

Ou can communicate with members of your target markets in a variety of ways advertising, brand identifiers, sales promotion, personal selling, and public relations. All the communications aimed at a member of your target market should be consistent and deliver the same message. If they are uncoordinated, the messages from different communications approaches will be less effective and might even cancel each other. That is why you need an integrated communications strategy, one that looks at all...

Communications Analysis Soap Example

To complete Exhibit 18.4, you must estimate not only your actual performance and those of your competitors on each benefit, but also what your target customers perceive to be your performance on each benefit. You need to talk to your customers or survey them to obtain this information. However, if you do not have much time and money for customer research, you can begin by making your own subjective estimates. But you should try to validate as much information as you can by contacting customers....

Competitive Advantage and Benefit Advantage Dry Cleaner Example

The benefit implications of the capabilities of DES Cleaners are shown in Exhibits 7.1 and 7.2, the Actual Value Analysis (discussed in Chapter 6). The benefits that DES Cleaners provide relatively well as compared with their Exhibit 7.2 Actual Value Analysis Dry Cleaners Exhibit 7.2 Actual Value Analysis Dry Cleaners Note Relative importance 1 Not important, 10 Very important Actual performance 1 Poor, 5 Excellent Source Arrow Guide Capability Analysis, The Arrow Group, Ltd., New York, NY,...

Competitors

You will likely know your competitors who specialize in the same types of properties and services as you do. You may not know other commercial practitioners who are moving from neighboring specialties into your specialties or residential real estate agents who are beginning to sell commercial real estate. You need to be alert regarding who is being mentioned as different deals take place so you are always up to date knowing who your competitors are. For each ofyour recognized competitors, you...

Components of Positioning

You need to answer four questions to determine your positioning for customers in a given market segment (Exhibit 11.1) 1. Who is your target member of the decision-making unit (DMU) 2. Who is your target competitor 3. What is your benefit advantage 4. What is your competitive advantage Exhibit 11.1 Positioning Description Exhibit 11.1 Positioning Description Product or Service Target Market Segment Target member of decision-making unit Source Arrow Guide Formulating the Product Market Strategy,...

Components of the Sales Strategy

The main components of a sales strategy are (Exhibit 22.1) Objectives These objectives derive from those for the marketing strategy. Usually they are expressed in unit or monetary sales. Some organizations also provide their sales managers with profit objectives. Effort allocation These are guidelines for where the sales representatives should spend their time on which products and services and on which customers. Sometimes these decisions are known as time and territory management. Selling...

Conclusions

The targeting and interaction possible with Internet marketing have created enormous opportunities for marketers to develop relationships with their customers. As with any relationship, Internet relationships must be managed and should not be abused. Although the monetary cost of an e-mail contact is low, the time costs for the recipients are often perceived to be high. Respect for the customer must guide your Internet contacts. For review questions for this chapter, log on to...

Conducting Marketing Research

Marketing research is the eyes and ears of marketing. Many marketing failures can be traced to not understanding customers, not understanding competitors, or not understanding trends in the competitive environment. Marketing research can be highly sophisticated and expensive. However, you can also learn a lot from much more modest techniques. Simply talking to your customers can provide a very high payoff in terms of knowledge about their needs, about what competitors might be doing, and about...

Continue to innovate both processes and products and services

Small businesses, in particular, have a tendency to stay with what they know they often have inertia. In tough economic times, you need to see beyond the current situation and find the long-run opportunities. Chapter 13 reviewed how a manager can evaluate strategies for growth by employing the Growth Matrix (Exhibit 32.1). The same matrix can be used to evaluate strategies for survival and beyond during tough times. Source Arrow Guide Growth Strategies, The Arrow Group, Ltd., New York, NY,...

Continued

Striking views of the Manhattan skyline and the Hudson River. Rooms have butler's pantries and stocked bars for easy entertaining. Furniture, carpets, and draperies are custom designed. Facilities include a private rooftop club, wine cellar and library, 24-hour room service, business center, conference rooms, swimming pool, and spa and fitness center. Trump SoHo New York is the only luxury hotel condominium in Manhattan's fashionable SoHo area. Source Press releases, Trump Organization,...

Contribution Format Frame Store Example

Assume that you own a small framing store. You have a store manager and a few part-time employees who do the actual framing. As shown in Exhibit 35.1, last year your sales were 200,000. Fixed Costs Remain approximately fixed over a given range of output. Variable Costs Increase as output increases. Variable Costs Increase as output increases. Exhibit 35.3 Contribution Income Statement Exhibit 35.3 Contribution Income Statement You share a small sales area in a mall. The actual framing is done...

Creating Your Most Va luable Asset

Your brand is probably the most important and most valuable asset of your organization. Each of the 10 most valuable brands in the world is estimated to be worth billions of U.S. dollars (Exhibit 12.1). Compare these brand value estimates with the market value of the companies owning the brands and it is easy to see how powerful brands are. For consumer market companies, well-managed brands typically represent about 50 to 80 percent of a company's total value for industrial markets companies,...

Cross Selling

You can obtain more contribution and profit from your customers by selling them more products and services. An airline can offer hotel and car rental services. Wal-Mart exploits their relationship with their customers to cover a wide diversity of products.14 Successful cross selling, as do all marketing actions, requires knowledge of customers. What other products might they be willing to purchase from you The customer of a restaurant may be willing to buy take-out meals from the restaurant but...

Current Customer Strategies

Strategies focused on current customers and current products are in the upper left cell of Exhibit 32.1. To maintain current customers, you need to think of them as individuals, and you need especially to understand how and why they behave. If you feel you do not know your customers as well as you would like, then you need to do some marketing research. (See Chapter 36 for suggestions on designing such a study.) Retaining Customers with Personalized Service The Attache Department was first...

Customers

In 2001, 68 percent of home buyers were married couples and in 2008 only 61 percent, while in 2001, 22 percent of home buyers were single compared to 30 percent in 2008. Married couples still represent nearly 70 percent of repeat home buyers, but singles and unmarried couples now represent almost half of first-time home buyers.4 Whether your target buyers are married couples, singles, or some other category affects how you approach them. For example, Exhibit 28.2 shows what members of different...

Dealing with the Press

Working with local media is especially helpful for small organizations. If you provide them with newsworthy items, they will appreciate it and you will benefit from the publicity. To utilize your local media, follow these suggestions Take an inventory of the newspapers, magazines, radio programs, and television programs in your area that might carry information about your product or service, or organization. Learn the deadlines for the print media and for the broadcast media. Find out how they...

Determine Incremental Cost per Unit

Incremental cost per unit is the floor on your price. You cannot price below your unit costs for any length of time and expect to stay in business. Surprisingly, managers in many organizations do not seem to know the incremental cost per unit of their product or service. If that cost is known, organizations do not seem to do an effective job of communicating it to their managers. I frequently conduct programs on measuring and managing marketing ROI, Exhibit 25.4 Forecast Likely Actions of...

Determining Identifier Message DryCleaning Example

Suppose DES Cleaners (see Chapters 4 and 6) wanted to build a strong brand. They have decided that one of their target markets is households with two wage earners and no one free during the day. The benefits that they provide relatively well include cleaning clothes, removing stains, quick turnaround, and convenient hours. Suppose that their superior performance levels on cleaning clothes, stain removal, and quick turnaround are already strongly associated with DES Cleaners (Exhibit 20.1). For...

Determining Positioning

Effective positioning is based on superior performance on a benefit of importance to the target customer and the capability to sustain that benefit performance over time. In the real estate example, you might describe the positioning of your agency as the small -home experts who know how to find the home for you. Small-home expertise and matching homes to needs are both benefit advantages of importance to your target market, and they are supported by competitive advantages. You can summarize...

Determining Your Focus for Growth

After you have decided on your overall growth path, you need to consider exactly how you will achieve that growth and how you will approach your target customers to provide that growth. You can grow in the product (or service) direction or in the customer (or market) direction. However, knowing the general direction you will move does not really give you the details you need for how you are going to go about it. You need to have a growth focus so that you can make decisions regarding marketing...

Developing Identifiers

Developing identifiers is both science and art. The science part is making sure that the attributes you want attached to the brand are associated with the identifier. The art part is graphic design making sure that the appearance of the identifier is clear, balanced, and appealing. Developing identifiers is both science and art. When Burger King revised their logo, they considered a number of possible logos that showed flames an association with their longstanding flame-broiled burger benefit....

Developing Yo u r Growth Plan

You want more growth for your organization. You have established your products and services with customers, but you feel that you can increase your revenues and profits. Marketing can help guide you to the most attractive growth path for your organization the growth path with superior profits and lower risk. Organizations without growth plans are often tempted by targets of opportunity ventures with short-term returns, but that may not lead anywhere or, worse, may create risk for the...

Direct and Indirect Fixed Costs and Shutdown Level

It can be very useful to classify your fixed costs into what are known as direct fixed costs and indirect fixed costs. Direct fixed costs are all the costs that are required for a business if the business disappears, then so do the direct fixed costs. Indirect fixed costs are all the other fixed costs. For example, suppose you do other things besides framing services. If you close down your framing operation, then you will no longer advertise ( 5,000), pay a salary to your frame store manager (...

Distribution

You have a product, but unless you are able to sell it directly to your customers, you need to arrange distribution. Even if you have a service, such as a small inn or hotel, you may need to sell it through agents. Distribution consists of others who sell your product or service such as wholesalers or retailers or agents. Resellers give you access to customers. Without them you have to find the customers yourself, and that can be expensive and time-consuming. In this chapter you will learn how...

Distribution Strategy

Your distribution strategy is focused on the customers in your target market and consists of four components (Exhibit 26.2) Objectives Your expectations regarding margin and sales over time Type Size of reseller and their range of assortment Selective Distribution Donald J. Trump Signature Collection and Federated Department Stores For the launch of the Donald J. Trump Signature Collection of men's clothing, including suits, shirts, and neckwear, Federated was selected as the exclusive...

Effort Allocation

Given sales objectives, how should the sales force allocate their efforts among products or services and among customers The allocation of sales force time is summarized in the time allocation table (Exhibit 22.4), which has the same Personal Selling Exhibit 22.4 Selling Time Allocation (person-days) Source Arrow Guide Formulating Sales Strategies, The Arrow Group, Ltd., New York, NY, 2008. Used here with permission. Source Arrow Guide Formulating Sales Strategies, The Arrow Group, Ltd., New...

Evaluating Budget Soap Example

Suppose you were launching a soap and believed you could advertise its moisturizing abilities to your target market women 35 to 50 years old. You are considering a local radio spot. The radio station claims it will be heard by 8,000 women 35 to 50 years old. You believe that 12.5 percent of those who hear the ad (or 1,000 listeners) will become aware of your brand and 0.5 percent of those who hear the ad (or 40 listeners) will eventually make a purchase. Of those making a purchase, you estimate...

Evaluating Promotion Budget Health Club Example

For example, suppose you are running a small health club for people whom you provide personal trainers. A typical membership includes 20 workouts. To enroll more members, you are thinking of running an ad in the local newspaper offering a free workout with a trainer. Just as you did with the soap example in the advertising chapter (see Chapter 19), you estimate that of the people who see the ad, maybe 1 percent will follow up on the offer. Of those who have the free workout, you believe maybe...

Failure to Target Markets

Once I was teaching a course in which students worked in teams to develop marketing strategies for luxury products. One team had the assignment of VIP customers guests who are accustomed to preferential treatment at the finest resorts around the globe require extra care. According to one hospitality industry executive,, It's not the suites or the gifts that matter most to these customers, it is the personal attention and recognition. We retain their business because of exemplary service. For...

Farming

Residential real estate farming consists largely of cold calling and can be difficult work. You need to target part of your geographical area and cover homes in that area. If you call at homes in person, be prepared for a fair amount of rejection. Most people are not sitting in their living room waiting for an agent to arrive and ask them if and when they are going to sell their home. Telephone contacts are more efficient except rapport may be harder to establish during a telephone call than if...

Finding a Powerful Position

Suppose you assemble your marketing strategy and your forecasts fall short of your objectives. What can you do There are several ways to improve your positioning and strengthen your product market strategy (Exhibit 38.3). You should consider them in the following order Improve your marketing programs Make sure that your customers perceive the value you are giving them especially in terms of your performance of the benefits they most care about. For example, you may have an excellent product or...

Finding Ideas

To find one idea that will work usually requires starting with many, perhaps hundreds. Then you need to screen and modify the ideas until you are able to identify an idea that you believe will be successful, what is known as the idea generation funnel (see Exhibit 34.1). (For discussion of idea generation and sources of ideas, see Kuratko2 and Lamb, Hair, Jr., & McDaniel.3) Ideas for new products or services can come from many places, for example Employees, especially those close to...

Forecasts and Strategy

You compare your forecast with your objectives (Exhibit 37.1). If your forecasts equal or exceed your objectives, then the plan is acceptable. If they do not meet the objectives, then either the objectives need to be decreased or the marketing strategy and tactics need to be revised. Even if the forecasts do fulfill the objectives, you may be wise time permitting to develop one or more other marketing strategies to determine whether one of them might lead to even more favorable results. You not...

Guerrilla Marketing Strategy Bookstore

Suppose you run a small bookstore on the main street of your town. You have a long and abiding interest in books, and you enjoy sharing your passion with your customers. Your target market consists of people with similar views on reading and books. You try to focus your communications on the individual reader. Exhibit 27.1 Guerrilla Marketing Strategy Summary Exhibit 27.1 Guerrilla Marketing Strategy Summary What customers do we want (Our target market) People 30 and older interested in...

Higher return and higher security are two strong arguments to use with FSBOs

However, you should approach FSBOs very carefully. Some may be selling their homes themselves because they do not like real estate agents. To get their attention, you might tell them that you have buyers you have been unable to help and and ask to send those buyers to them. That will allow you to suggest that it would be helpful for you to look at their property so that you will know which buyers to send. (For more detailed suggestions on how to win over FSBOs, see Hamilton.8) If you are able...

How Do You Build a Team

Several factors affect the performance of a team (Exhibit 39.2). You begin to build a team by giving them a clear goal. For example, you might challenge a sales team to win a specific account. Goals should be both demanding and realistic. All team members should consider the goals important. Exhibit 39.2 Factors Affecting Team Performance Performance objectives provide specific direction for the team. Your sales team needs to identify all the tasks that must be completed to win the specific...

Info

Measuring and Managing Your Perceived Va lue Perceived value depends on your customer 's needs and wants, and how those customers evaluate your product or service relative to all your competitors. Perceived value is the maximum that a customer is willing to pay for a product or service. The price you can charge and the amount of units you can sell both depend on perceived value. For example, if you allow customers to perceive that the value you give them is just above your costs, then your...

Intermediate Objectives

Usually, people do not change their behavior immediately. To persuade them to change, you need time and patience. The model in Exhibit 19.4 is well known in marketing and is called the hierarchy of effects model. The idea is that customers travel through different stages before they take action. Intermediate communications objectives focus on those stages and typically include Awareness recognizing your brand name Knowledge having some knowledge of what your product or service does Exhibit 19.4...

Levels

The number of levels in the distribution channel will vary with the amount of contribution involved. Typically purchases producing large overall contributions, such as aircraft engines and large computer systems, will be sold through shorter distribution channels as it will be worthwhile to sell them directly. Products or services that are complicated and require technical assistance will often be sold by the producer or by large wholesalers who possess the necessary technical expertise....

Managing Your Marketing Programs

Y ou implement your marketing strategy with your marketing programs. The most common programs are design, advertising (including the Internet), identifiers (for example, name, logo), sales promotion, personal selling, public relations, pricing, and distribution. These programs are often referred to as the marketing mix. Each marketing program has its own strategy. For a marketing strategy to be successful, all marketing program strategies must be executed well and they must all support the...

Marketing 101

Trump University Real Estate 101, Second Edition Building Wealth with Real Estate Investments Trump University Commercial Real Estate 101 How Small Investors Can Get Started and Make it Big Trump University Marketing, Second Edition How to Use the Most Powerful Ideas in Marketing to Get More Customers Trump Entrepreneurship 101, Second Edition How to Turn Your Idea into a Money Machine Trump University Branding 101 How to Build the Most Valuable Asset of Any Business Trump University Wealth...

Marketing Plan

Your marketing plan (see the worksheet in Exhibit 38.1) consists of the four main components of your marketing strategy (target market, objectives, positioning, and programs), your forecasts for your main objectives, and a list of your key planning assumptions. You need to determine what objectives are important to you and what marketing programs you will be using, and tailor Exhibit 38.1 to your situation.

Media or Methods

Methods used by public relations are classified into the uncontrolled media and the controlled media. The news media is the most obvious example of uncontrolled media. Controlled media includes newsletters, trade shows, and public service advertising (see Exhibit 19.5). Uncontrolled media represent situations where you provide information, but whether the information will be used and, if so, in what form, when, and where are beyond your control. Such methods include news releases, press...

Method of Contact

You may conduct a survey in a variety of ways for example mail, Internet, telephone, in-person, and observation. Mail is the slowest method with respect to receiving a response and also likely has the highest nonresponse rate. Internet can provide rapid feedback and is especially useful for questions regarding choices. Telemarketing has lowered the response rates in telephone surveys, but telephone can still be used for targeted research. In-person surveys provide the interviewer the...

Objective and Task

With the objective and task method, you set a sales objective, then use the behavior funnel to determine how many customers are required at each stage to end up with your sales objective. The objective is the sales (or action) objective the tasks are the intermediate objectives (for example, 170 customers prefer our product or service). For example, according to the numbers in Exhibit 19.4, you will need to make 1,000 customers aware of your product or service in order for you to have 40...

Open House

Traditional methods still can lead to new clients. Look for potential clients who fit your target market. Try to make that all-important initial contact. Have sufficient supplies of your business cards. You can add appeal to an Open House by offering a seminar on a topic of value to prospective clients, such as How to Sell Your Home During Tough Economic Times. You can also organize caravans for other real estate agents so that they can visit your listings if they have the time and interest. In...

Paula Shugart President of the Miss Universe Organization observed that The relationship between Cover Girl and the

Source Press Release, Miss Universe Organization, March 21, 2005. increased usage (see Exhibit 19.2). When promotions are focused on action objectives, they often consist of an added inducement to stimulate the customer to purchase a product or service, or a reseller to stock it. For example, a clothing manufacturer may offer two-for-one deals to consumers and advertising support to retailers. H& R Block has offered customers the chance of receiving double their tax refund if they have the...

Planning Process

In many chapters, this book provides planning analyses that make your marketing planning easier. They cover important issues such as finding market segments, determining positioning, and developing communications messages. Typically, there are one or more planning analyses available for each step in the planning process. Exhibit 38.2 shows you where each Planning Analysis fits in the process of formulating a marketing strategy. Exhibit 38.2 Marketing Areas and Planning Analyses Exhibit 38.2...

Possibly the Most Important Chapter i n th is book

Positioning is the heart of your marketing strategy. Positioning is the reason your target customer should buy from you rather than from a target competitor. The stronger your positioning is, the more effective your marketing strategy will be. Determining your positioning and your target market are the two most important decisions you make when you put together a marketing strategy. Both decisions depend on how well you understand the needs of your customers, and how well you understand your...

Potential Entrants

Potential entrants include what are often referred to as followers, organizations that have been thinking about and working on a product or service similar to that of your organization but are just now coming into the market. Followers may help develop the market. Potential entrants may be imitators producing products and services nearly identical to what is already on the market. Imitators typically set off a price war when they enter a market as they have no differentiation from existing...

Potential Results and Objectives

Market potential is the maximum sales or profits that you think you might obtain from your target market (Exhibit 37.2). Your sales potential will usually be lower than the market potential because some customers may already be under contract or otherwise loyal to competitors. Exhibit 37.2 Forecasts and Objectives Exhibit 37.2 Forecasts and Objectives Source Arrow Guide Formulating the Sales Strategy, The Arrow Group, Ltd., New York, NY, 2008. Used here with permission. Source Arrow Guide...

Predicting Actions DryCleaning Example

In the dry- cleaning illustration, it looks like one of the more formidable competitors to DES Cleaners might be Carol 's because they already have a relatively high score on the very important benefit clean clothes. A possible scenario would be Carol 's improving their stain removal capabilities so they could compete directly against your strength. If they were to do so, then DES Cleaners might need to improve their performance on cleaning clothes (which probably they should be doing anyway)....

Price Less Cost per Unit

The difference between price and variable cost per unit is known as the variable margin per unit or the contribution per unit. During tough times, you want to be sure you know your contribution per unit for each customer and are managing it. The overall approach to managing contribution per unit is called value engineering. Generally, you want to consider adding benefits to your product or service if they raise your price more than they raise your costs or you want to consider removing benefits...

Primary Data

You may collect data with random or nonrandom sampling. When you use random sampling, typically the data you obtain can be analyzed with various statistical tests and can be extrapolated to all customers, resellers, suppliers, or competitors. If you do not use random sampling, then usually you cannot generalize from the data you collected. Data obtained without random sampling are used primarily to uncover ideas and hypotheses that you can later check with data from randomly selected samples. A...

Product Service Design

Good design, from a marketing perspective, means tailoring your product or service so that it successfully meets the needs of your target customers. A sales-oriented organization sells what they make a marketing-oriented organization makes what will sell. The difference between the two is design. In this chapter you will learn how to systematically evaluate your design compared with those of your competitors and how to determine the ways you can make the design of your product or service more...

Promotion Objectives

Sales promotion objectives often concern actions by the customer in the target market or by a reseller somewhere in the distribution chain between producer and end-user. Such action objectives may be trial, repurchase, or Orchestrating Marketing Communications Miss Universe Organization The Miss Universe Organization produces the Miss USA , Miss Universe , and Miss Teen USA pageants and is a partnership between Donald J. Trump and NBC Universal. In 2005, they signed a two-year contract naming...

Prospecting

Your first step in prospecting is to target a market (or, possibly, a few markets). Especially in commercial real estate, it is very difficult to be everything to everyone. Trying to cover numerous types of properties will cause you to try to be an expert in many areas and you may end up not being an expert in any one of them. For example, if you are dealing mainly with Class A or B high-rise office buildings, you probably would find it difficult to be an expert on garden apartment buildings....

Reorganizing the Income Statement Into Contribution Format

You can classify costs broadly into fixed costs and variable costs. Fixed costs do not change over a given range of output for your product or service (Exhibit 35.2). Typical fixed costs include salaries, rent, and depreciation. For a restaurant, for example, fixed costs would include wages, advertising on a local radio station, depreciation on the equipment and fixtures, and property taxes. Total variable costs change as output or volume changes. Although total variable costs are often assumed...

Resellers

Organizations may sell direct to end-users, which is fairly common in business-to-business marketing of products such as chemicals, computers, and telecommunications equipment. However, even in those industries, smaller customers may be served by distributors. Most consumer products and services are still sold through resellers even if some of the levels of distribution or some resellers are disappearing because of Internet marketing. In some product or service categories, there may be several...

Residential Real Estate Situation Analysis

A sound marketing plan starts with sound preparation (Exhibit 28.1). In real estate, that means doing a thorough Situation Analysis and getting to know your market very well. As discussed in Chapter 3, a Situation Analysis includes four major steps 1. Customers. Knowing who are the potential sellers in your geographical area and who are the potential buyers (keeping in mind that other buyers will come from out of the area). 2. Competitors. Identifying other real estate agents, their strengths...

Residential Real Estate Marketing Strategy

The main components of the marketing strategy for a real estate agency are the same components we discussed in Chapter 3, Building a Marketing Strategy (Exhibit 28.3) 1. Target Market. On which customers or clients do you plan to focus efforts 2. Business Objectives. What you need to get out of the business with respect to revenue, profits, and cash flow and when 3. Positioning. Why will your target customers or clients want to do business with you rather than with your competitors 4. Programs....

Role of Communications

Communicate the benefit advantage to target members of the decision-making unit in the target market so that they will act. Ralph Waldo Emerson said, Build a better mousetrap, and the world will beat a path to your door. The marketing version of that quotation is If you build a better mousetrap, then customers will buy it only if They know they have mice. They want to get rid of the mice. They believe a mousetrap is the best way to get rid of the mice. Advertising The Donald J. Trump Signature...

Sales Objectives

Objectives in the sales strategy are usually expressed as unit or monetary sales and are based on objectives stated in the marketing strategies for the products or services being sold. You should state these objectives quantitatively and break them out by product or service and by market. These objectives are the overall sales objectives for the sales manager, who then allocates these objectives among the sales representatives whom they direct. For example, the annual sales objectives for the...

Sales Objectives by Product and Market

Sales objectives should be made clear for specific products or services and for specific markets. Without that focus, sales representatives may spend their selling effort on the products they prefer and on the customers they prefer, rather than on those where the company would like selling effort. For example, Exhibit 22.3 shows a growth matrix (similar to what was discussed in Chapter 13). Sales objectives should be made clear for specific products or services and for specific markets. Suppose...

Sales Strategy The Strategy of the Sales Manager

The strategy for personal selling is known as the sales strategy. An effective sales strategy provides a plan for where and how members of a sales force will spend their time, especially their time interacting with customers. The sales strategy described here is the strategy that the manager of a team of sales representatives develops and uses. Note that there are similar sales strategies for national or regional sales managers, or for the sales representatives themselves. Each of those...

Segment Identification Real Estate Example

Suppose you are attempting to segment the market for a small real-estate company. Benefits sought by real-estate customers might include financing expertise, knowledge of area schools, accessibility of real-estate agent, and real-estate agent's ability to match homes with the customers' needs. These benefits would be obtained by talking with the customers. Possible segments would include singles, young couples, young families, mature families, and empty nesters. Keep in mind that your possible...

Segments and the Decision Making Unit

You can sometimes add another level of precision to the segmentation identification analysis. In a given segment, consider who might be involved in making the purchase decision. For example, in the real-estate example, with a young couple you would imagine that both the wife and the husband will have a significant role in the choice of a new home. However, in their choice of real estate agent, each may not want exactly the same benefits. Perhaps the wife is somewhat more concerned with...

Selecting Your Key Ta rget Market

After you have identified potential market segments, you face the crucial choice of selecting which of those segments will be the target of your marketing strategies. The target market choice is one of the most important decisions you make in developing your marketing strategy. If your target market decision is wrong, you may not be able to find any marketing strategy that will work. You should spend a lot of time, effort, and thought on selecting your target markets. If you do make a mistake...

Set Objectives for Overall Contribution

Typical financial objectives are unit sales and margin per unit (return on sales). Unit sales objectives are most likely achieved with low prices, and return on sales objectives are most likely achieved with high prices. In fact, if you use contribution as your objective, you are considering both the unit sales objective and the margin objective Contribution Unit sales x Variable margin per unit A demand curve shows the relationship between your price and the units that would be sold at that...

Strategies for New Customers

Strategies focused on new customers and current products and services are in the lower left cell of Exhibit 32.1. Difficult economic times are not the best of times to add new customers. In difficult economic times, some customers may not want to switch suppliers because they do not want to take the risk. On the other hand, some customers will be looking to switch suppliers because they hope to find a better deal a Moving to New Markets Trump Towers, Sisli, Istanbul Photo courtesy of The Trump...

Strategies for New Products or Services

The upper right cell in Exhibit 32.1 represents strategies for new products or services offered to your current customers. A tough economy may not seem like the time for innovation, but in fact, often tough times are the incubator for new ideas and new products and services. Brad Johnson, an editor of Advertising Age, examined several recessions in the United States and found numerous innovations in products and services, and even in how companies marketed.1 Increasing Sales with New Products...

Surveying Your Customers Art Association Example

Suppose you are the chairperson of the marketing committee of a small not-for-profit arts association and you would like to know more about your members. Your budget for your entire study is just a few hundred dollars. You decide to do a mail survey because it is relatively cheap and you already have a mailing list of your members. You take a random sample of200 members to whom you will send your questionnaire with a stamped, addressed return envelope. You develop the questionnaire by first...

Target Market

In what types of property will you specialize Office buildings Retailing Hospitality Apartments Industrial Hospitals Multi-use And where in what geographical areas You may choose to specialize within a specialty. For example, retailing includes neighborhood centers, community centers, small box, big box, residential conversions, regional malls, super-regional malls, life style centers, and outlet centers. Industrial includes light manufacturing and heavy manufacturing. Hospitality includes...

Target Market Selection RealEstate Example

In the real-estate office example from Chapter 9, five segments were under consideration singles, young couples, young families, mature families, and empty nesters. TRUMP UNIVERSITY MARKETING 101 Exhibit 10.1 Evaluation of Real-Estate Segments Note Attractiveness 1 Not attractive, 5 Very attractive Relative ability 1 Weak, 5 Strong Source Arrow Guide Segment Selection Analysis, The Arrow Group, Ltd., New York, NY, 2008. Used here with permission. A blank version of this page can be downloaded...

Target Return on Investment Pricing

The target return on investment (ROI) pricing approach can make sense in situations that are not open market. The process starts by defining a specific return desired for the investment being made. Given that target ROI, financial calculations are made to determine the price that would need to be charged. The main problem with this method is that the volume needs to be known before the price is set. In an open-market situation, price influences demand, and you cannot estimate demand without...

Targeting

Targeting customers is always important, but precise targeting is crucial during difficult economic periods. In particular, you need to identify those customers who provide relatively high contributions for the efforts required and can be expected to grow even during the downturn.21 These customers may simply buy in large volume or they may be relatively price insensitive, or both. Their ability to pay is also important during a recession period. Fingerhut, the consumer mail order house,...

The two dimensions you would use to decide where to play poker are the same dimensions you should use in selecting

Attractiveness refers to how important winning this market is to your organization. Measures of market attractiveness include size of market, growth rate, cost of serving customers, price sensitivity (or insensitivity) of customers, and stability. For example, Verizon Wireless has found the youth market (18- to 24-year-olds) attractive, in part, because of their high involvement with cell phone ownership 77 percent penetration versus 56.3 percent for the rest of the U.S. population.1 Relative...

These assumptions are the foundation for your marketing plan

Trump Signature Collection Dress Shirts and Neckwear The Trump Organization licenses the Phillips-Van Heusen Corporation to manufacture and distribute dress shirts and neckwear with the Donald J. Trump label. In this brand alliance, The Trump Organization provides the brand positioning power boardroom dressing and the Phillips-Van Heusen Corporation provides the manufacturing and distribution know-how. The Donald J. Trump Signature Collection is following two...

Trade Oriented Promotions

Methods of trade- oriented promotions include contests and sweepstakes, dealer incentives, trade allowances, point of purchase displays, merchandising kits, cooperative advertising, training programs, selling aids, trade shows, and exhibits. Objectives of Trade-Oriented Promotions Generally, the objectives of trade-oriented promotions are to build support by your resellers. Specific objectives include Stimulate trade merchandising and sales support By providing trade allowances (discounts) or...

Types of Data

Data consists of either primary or secondary data. Primary data is what marketing managers or their colleagues collect. Secondary data is what someone else, such as an information service, collects. Secondary data is often purchased from a research firm and therefore is usually cheaper collecting the data yourself. The main disadvantage of secondary data is that it may not be exactly what you want. Also you may not know how it was collected, so you may not know how reliable it is. Primary data...

Types of Market Segments

Each quadrant in the segment selection chart poses a different strategic question. Opportunities in the upper left (often called Stars from the Boston Exhibit 10.2 Segment Selection Chart with Real-Estate Segments Note Attractiveness 1 Not attractive, 5 Very attractive Relative ability 1 Weak, 5 Strong Source Arrow Guide Segment Selection Analysis, The Arrow Group, Ltd., New York, NY, 2008. Used here with permission. A blank version of this page can be downloaded from www.trumpuniversity.com...

Understanding Your Overall Competitive Environment

One of the first lessons of marketing is know your market. That means know your customers, know your competitors, know your organization, and know the overall competitive environment. The competitive environment is complicated, so it is not necessarily easy to understand what is going on now, much less in the future. However, you can be systematic in examining your competitive environment, and that can help you determine what might happen in the future. Statements about the future are the key...

Web Site Effort

To evaluate your Web site, you can set up a counter to determine the number of visitors you can also obtain other measures of their visits to your site. You can even include a survey focusing on your customers ' attitudes and behaviors. However, the real measure of the impact of your site is how it helps you find and obtain long-term customers (Exhibit 24.2). You might include a code word or number and provide a discount or small premium to those who mention the code word or number when they...

You need to know the economic health of your areanow and in the future

The type of properties in which you specialize will determine in part the size of the geographic market with which you need to be familiar. For example, if you specialize in retail space, you should know that according to the International Council of Shopping Centers, neighborhood centers draw customers from up to 3 miles, community centers from up to 5 miles, regional malls from up to 15 miles, and super-regional malls from up to 25 miles.11 You also need to know the trends in your specialty....

You should treasure tough competitors they keep you tough

In this chapter you learn the four key questions you need to ask about your competitors and how to answer them. Building a Competitive Position Trump Super Premium Vodka In 2008, Trump Super Premium Vodka flavors were launched citron, orange, grape, and raspberry. J. Patrick Kenny, President and CEO of Drinks America, partner of The Trump Organization, described the new vodkas The five times distilled vodka is bursting with delicious, fresh flavor which delivers a smooth, clean finish. In its...