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 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...

COIs

A center of influence is someone like a life insurance agent or accountant or beauty salon owner or dentist who regularly talks with people and can be expected to hear if someone is thinking of selling (or buying) a home.9 For example, florists or caterers are COIs because they are often involved with weddings the newly married couple may well need help in finding a home. If the COI might be willing to mention your name or provide one of your business cards, then you might expect a stream of...

Communications

Satisfied clients mean more business. According to the National Association of REALTORS , 26 percent of all sellers and 11 percent of all buyers use an agent that they had used before (Exhibit 29.1). Satisfied clients not only lead to repeat business they also lead to referrals. Close to 40 percent of sellers, more than half of first-time buyers, and over one-third of repeat buyers find their real estate agent through referrals from friends, neighbors, and relatives (Exhibit 29.1). Exhibit 29.1...

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...

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,...

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,...

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...

Determining Price Soap Example

Suppose you are selling a soap to 35- to 50-year-old women on the basis of its cleaning and moisturizing capabilities. You need to price it. First, you need to get some idea of the perceived value for your soap. Where you can start is examining the prices of products you think are similar to yours. You will find the prices of high-end soaps to be most relevant because the low-end soaps will likely be well below their perceived values. If you think your soap is superior to the other soaps on the...

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...

Focus of Marketing Research

The purpose of marketing research is to help you make better marketing decisions. (For an overview, see Malhotra and Birks.1) Marketing research can be focused on all the players and drivers that affect the marketing performance of the organization (see Exhibit 8.1.) These include end-users, resellers, competitors, suppliers, and trends. Much of marketing research focuses on customers their needs, their attitudes, and their behavior. End-user studies include Segmentation Characteristics that...

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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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...

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...

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....

Random and Nonrandom Sampling

There are many activities in marketing research that do not involve sampling, but to understand marketing research, it is necessary to understand sampling and the differences in data collected with random versus nonrandom sampling. In statistics, a population is a group of people such as a target market or objects such as a collection of competing products about which you want to know something. For example, perhaps you want to know the average annual income of the members of a target market or...

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...

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...

Selling is the process of facilitating a mutually beneficial transaction between buyer and seller

The selling process is a dialogue between the salesperson and the buyer that the salesperson manages so that the buyer sees the property in the best light and can make an informed decision with which he or she will be satisfied. To manage that process efficiently and effectively, you, the salesperson, must understand the needs of your buyer and must understand how the property does and does not meet those needs. Remember that later you will hope for referrals from this buyer, so in the long run...

Selling Strategy

The sales representative should have a plan for how the discussion will flow, what will be discussed, and what should happen as a result of the call. That is the purpose of a selling strategy. There are a variety of models used to develop a selling strategy. One of the most well-known is the AIDA model attention interest desire action. Attention Engage the potential customer so that they will want to talk. Often, this can be accomplished by identifying a problem...

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...

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...

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...

Increasing Your Customer Satisfaction

What is the one thing you need to have a business Is it a product A factory A service A license Inventory A location Employees The one thing you need to have a business is a customer. A customer is someone who thinks your product or service is worth paying for and who purchases it. Without customers, there is no revenue, no profits, and no cash flow, and therefore no business. Satisfying your customers should be at the heart of your marketing efforts although keep in mind you need to do so at a...

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...