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...

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 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...

Conclusions

Commercial real estate consists of many different types of property, each requiring its own expertise. The commercial real estate practitioner must be clear as to what types of property he or she will handle. In addition, he or she must decide what types of services to provide. These choices form the basis of their business strategy. Their marketing strategy needs to define their customer targets and their positioning. In turn, that marketing strategy orchestrates all the activities required to...

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,...

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 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...

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...

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

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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...

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...

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....

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...

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...

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 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...

Competitive Parity Pricing

With the competitive parity pricing approach, you simply match the prices ofyour competitors. The first problem is that you may ignite a price war, which no one will win except perhaps the customers. The second problem is that, if you price at the same level as a competitor, what are you suggesting to the customer Often, the customer will assume the two offerings are the same and there is no need to compare them. If you have a strong position for your product or service, you want your customers...

Advertising Objectives

Advertising Objectives

The objectives of an advertising strategy are what you would like the customer to do, think, or feel as a result of the advertising. Advertising objectives include both action objectives for your target customers, such as trying the product or repurchasing the product, and intermediate objectives, such as awareness or preference Exhibit 19.2 . Advertising objectives are not the same as the business objectives in your product market strategy such as market share or profitability, but they need...